Pakistan weighs austerity measures as US-Iran war drives up fuel prices
Pakistan may bring back austerity measures to reduce fuel consumption as renewed fighting in West Asia drives up global oil prices, information minister Ataullah Tarar said on Monday.
Pakistan PM Shehbaz Sharif has directed officials to examine which of the measures introduced earlier this year can be brought back, Tarar said at a press briefing attended by information technology minister Shaza Fatima Khawaja and petroleum minister Ali Pervaiz Malik.
"Austerity measures previously taken... are being reviewed to assess which of the previous measures need to be revived in the present situation," Tarar said.
Pakistan had introduced the measures on March 9 as oil prices surged during the US-Iran war.
The steps included halving fuel allowances for official vehicles, reducing lawmakers' salaries and allowing public sector employees to work from home for part of the week.
The measures were withdrawn in June after the US and Iran entered a peace process. But renewed hostilities have once again pushed up international oil prices, putting pressure on fuel-importing countries such as Pakistan.
Some restrictions, including shorter market hours, are already continuing, Tarar said.
The government is facing the renewed pressure as petrol prices have climbed to PKR 375.82 per litre and high-speed diesel to PKR 403.32 per litre.
To cushion the impact on smaller vehicle users, the government has announced a relief of Rs 100 per litre for motorcycles, rickshaws, Qingqi three-wheelers and vehicles with engine capacities of up to 800cc.
Tarar said Sharif had asked deputy PM and foreign minister Ishaq Dar to make sure transport fares did not rise after the relief scheme was introduced.
Pakistan PM Shehbaz Sharif has directed officials to examine which of the measures introduced earlier this year can be brought back, Tarar said at a press briefing attended by information technology minister Shaza Fatima Khawaja and petroleum minister Ali Pervaiz Malik.
"Austerity measures previously taken... are being reviewed to assess which of the previous measures need to be revived in the present situation," Tarar said.
Pakistan had introduced the measures on March 9 as oil prices surged during the US-Iran war.
The steps included halving fuel allowances for official vehicles, reducing lawmakers' salaries and allowing public sector employees to work from home for part of the week.
The measures were withdrawn in June after the US and Iran entered a peace process. But renewed hostilities have once again pushed up international oil prices, putting pressure on fuel-importing countries such as Pakistan.
Some restrictions, including shorter market hours, are already continuing, Tarar said.
The government is facing the renewed pressure as petrol prices have climbed to PKR 375.82 per litre and high-speed diesel to PKR 403.32 per litre.
To cushion the impact on smaller vehicle users, the government has announced a relief of Rs 100 per litre for motorcycles, rickshaws, Qingqi three-wheelers and vehicles with engine capacities of up to 800cc.
Tarar said Sharif had asked deputy PM and foreign minister Ishaq Dar to make sure transport fares did not rise after the relief scheme was introduced.
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