Government Considers Reinstating Austerity Measures Amid Rising Fuel Prices

The Pakistani government is weighing the revival of austerity measures initially implemented during a previous fuel conservation initiative, as tensions escalate in the Middle East and fuel prices soar. Information Minister Ataullah Tarar announced this potential shift during a press briefing on Monday, highlighting the urgent need for fiscal restraint.

These austerity measures, originally introduced on March 9 in response to the ongoing US-Iran conflict, included significant cuts to fuel allowances for government vehicles and salary reductions for lawmakers. Tarar noted that some of these measures remain in effect, particularly concerning market hours, and he emphasized that consultations are underway to determine which strategies should be reinstated given the current circumstances.

As part of the government's response to the rising oil prices, which currently see petrol priced at Rs375.82 per litre and high-speed diesel at Rs403.32 per litre, a new fuel relief scheme was launched to support users of motorcycles, rickshaws, and smaller vehicles. Under this initiative, eligible users will receive a subsidy of Rs100 per litre. Tarar mentioned that measures are being taken to ensure transport fares do not increase as a result of this scheme, which is set to cost the government approximately Rs25 billion each month.

Source: www.dawn.com