PM to address nation shortly on overall situation amid Mideast crisis

Prime Minister Shehbaz Sharif on Monday announced a four-day work week and work-from-home policy as part of wide-ranging austerity measures in light of the fuel crunch caused by the prevailing Middle East crisis following attacks by the United States and Israel on Iran.

Addressing the nation, the prime minister announced a number of measures as part of an overall austerity plan to manage the current situation.

He said a meeting was held today in which both federal and provincial governments participated and several important decisions were made.

The prime minister said that for the next two months, fuel allocated to government vehicles would be reduced by 50%, except for ambulances. Further, 60% of vehicles used by government departments would be taken off the roads.

The prime minister said that members of the cabinet, including ministers, advisers and special assistants, would not draw salaries for two months while the salaries of members of parliament would be reduced by 25%.

“Expenditures of all government departments, apart from salaries, will be reduced by 20%,” he further said.

PM Shehbaz said that senior government officials in Grade 20 and above, earning more than Rs300,000 per month, would have two days’ salary deducted, which would be used to provide relief to the public.

He said the government has also imposed a complete ban on the purchase of vehicles, furniture, air conditioners and other equipment by government departments as part of cost-cutting measures.

In addition, the prime minister announced a complete ban on foreign visits by federal and provincial ministers, advisers, special assistants and other government officials, except for trips deemed “essential for national interest”. He added that the restriction would also apply to provincial governors.

The premier said the government would prioritise teleconferencing and online meetings to reduce official expenditures.

“Official dinners and Iftar parties funded by the government have also been banned,” he said, adding that seminars and conferences would now be held at government facilities instead of hotels to further curb spending.

To conserve fuel and energy, PM Shehbaz said the government would implement work-from-home arrangements across the public and private sectors for 50% of employees, except for essential services.

The prime minister further said that offices would operate only four days a week, with an additional weekly holiday introduced to save fuel. This policy would not apply to banks.

He added that the industry and agriculture sectors would not be subject to work-from-home arrangements or the additional weekly holiday.

The prime minister also announced that all schools would be given two weeks of holidays from the end of the current week, while all higher education institutions would immediately shift to online classes.

The premier warned profiteers, petrol hoarders and vested interest groups not to exploit the current situation, saying strict legal action would be taken against anyone found involved.

He said those attempting to take advantage of the crisis would face the full force of the law, adding that instructions in this regard had already been issued to all provincial governments.

The prime minister said the world was facing new challenges, new alliances were emerging and the global balance of power was shifting.

“At such a critical moment, Pakistan needed unity, strength and national solidarity more than ever before,” he added.

Addressing the Mideast crisis, he said, “Unfortunately, the entire region is facing the threat of war, and the issue of peace is a matter of concern for all of us. Pakistan is making every effort to resolve the situation through diplomatic means.”

At the same time, the prime minister said Pakistan continued to face the threat of terrorism along its western borders. saying that the armed forces were carrying out operations to ensure the safety and security of the people in response to “attacks by terrorists and their facilitators in Afghanistan”.

He said the government had to increase oil prices in recent days, which he acknowledged was “undoubtedly a very difficult decision”. “I was advised to raise petrol prices much more than what was eventually announced, but I chose a middle path,” he added.

The prime minister said that Pakistan was once close to default, but “we set politics aside and made difficult decisions, in which the public strongly supported us. As a result, inflation has decreased, electricity prices have been reduced and the economy has now stabilised. All of this is the result of the prayers and hard work of the entire nation.”

He assured the nation that the government would place the least possible burden on the public in the present situation caused by the Mideast conflict.

Earlier, the prime minister chaired a high-level meeting to review the impact of the evolving regional situation on the economy and discuss measures aimed at energy conservation and fiscal austerity.

According to a statement issued by the Prime Minister’s Office (PMO), participants were briefed on a comprehensive strategy for energy conservation across the country, while discussions focused on austerity, reducing government expenditure and measures to strengthen the national economy in light of the prevailing regional situation.

“The meeting also reviewed steps to ensure economic stability and reduce energy consumption through coordinated efforts between the federal and provincial governments,” the statement said.

PM Shehbaz said in the meeting that the civil and military leadership decided that there would not be any further increase in the prices of petroleum products, according to the participants of the meeting. The fresh decision to keep the prices unchanged is contrary to an earlier decision in which the premier had approved to adjust the prices on a weekly basis and pass on the full impact to the consumers.

Last Friday, the government increased the petrol and diesel prices by Rs55 per liter or 20%, signaling his government’s willingness to preempt any crisis. However, the increase in petrol prices was Rs23 per liter more than the need and the government went on to earn more revenues rather than sticking to the principle of just recovering the international oil prices from the domestic consumers.

A day earlier, PM Shehbaz reviewed multiple proposals and recommendations for implementing austerity and prudent spending. He underscored the importance of timely implementation of measures to protect the national economy.

“The government is closely monitoring the situation and will take all necessary decisions to ensure economic stability,” he had said, pledging that all possible steps would be taken to protect public interests during this challenging period.

He had emphasised prudent management of national resources and assured that once the situation improves, the government would provide greater relief to the public. The statement clarified that austerity measures would not affect industrial or agricultural sectors, ensuring production, exports, and food security remain intact.

“Everyone should bear the burden of savings and austerity fairly. The privileged segments of society and elite classes should set an example in making the necessary adjustments,” the premier had said.

The government sharply increased diesel and petrol prices by Rs55 per litre, or 20% on Friday — marking the first in a series of similar surges expected in the coming days due to the ongoing conflict.

The increase in petrol prices was more than the surge in international markets, as the government chose to collect more money than required from motorcyclists and car owners to subsidise the use of diesel, mostly by the public transport and agriculture sectors.

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The sharp increase has intensified the cost of living, with residents reporting higher transport fares and rising prices of daily-use items.

People also reported disputes at petrol pumps, where attendants were refusing to dispense fuel worth less than one litre. According to residents, many customers asked for petrol worth Rs150 or Rs200, but pump staff declined, saying the nozzle rate is fixed and fuel is either dispensed in smaller or larger quantities, leading to frequent arguments.

The rise in petrol prices also pushed up the cost of fruits, vegetables and other daily necessities. Shopkeepers said the transport cost of bringing fruits, vegetables and goods had previously been around Rs1,000 per trip but had now increased to between Rs2,500 and Rs3,000.

Drivers providing pick-and-drop services for schoolchildren have also raised their fares, with residents saying the entire burden has shifted to the public.

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Additional reporting by Shahbaz Rana