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Sindh Announces Austerity Measures to Cut Fuel Use Amid Global Oil Crisis

10 March, 2026 18:04

In line with the federal government’s savings plan, the Sindh government on Tuesday unveiled a set of austerity measures aimed at reducing fuel consumption and limiting public spending as global oil prices surge due to the ongoing regional conflict involving the United States, Israel, and Iran.

The provincial steps come a day after Prime Minister Shehbaz Sharif announced a nationwide austerity initiative, introducing spending restrictions and energy-saving measures to tackle the fuel crisis triggered by the escalating tensions in the Middle East.

Pakistan, like many other countries, is facing supply challenges after disruptions in the Strait of Hormuz — a key global oil transit route — slowed the movement of fuel shipments across international markets.

The crisis intensified after Iran retaliated against US military bases in the region following joint strikes by Washington and Tel Aviv. The escalation has created logistical difficulties for major oil-producing countries attempting to deliver supplies to global buyers.

Amid the supply disruptions, Pakistan recently increased petrol and diesel prices by nearly 20 percent, prompting both federal and provincial governments to introduce energy-saving and austerity measures to control fuel usage and stabilise the economy.

Key austerity measures

Following a cabinet meeting chaired by Sindh Chief Minister Murad Ali Shah, Senior Minister Sharjeel Inam Memon outlined several steps during a press conference.

The provincial cabinet approved a 50 percent reduction in fuel consumption for government vehicles for the next two months. Additionally, 60 percent of official vehicles across provincial departments will remain off the roads during the same period.

Memon said provincial ministers had voluntarily decided to surrender their salaries and allowances for three months, adding that they would not draw pay for April, May, and June as part of the austerity campaign.

He also announced that security provided on a discretionary basis would be withdrawn, while ministers had returned police security vehicles assigned to them.

Educational institutions across Sindh will remain closed from March 16 to March 31, although examinations will continue according to the previously announced schedule.

Government offices will observe work-from-home arrangements on Fridays during this period, though the day will not be treated as an official holiday.

The cabinet also approved a ban on purchasing new vehicles and furniture for government departments. In addition, refreshments in government offices will remain prohibited for two months as part of efforts to reduce expenses.

Memon urged officials to minimise unnecessary protocol and adopt a culture of simplicity, stressing that the provincial government stood firmly with the state and its institutions during challenging circumstances.

He said the issue of salaries for Members of the Provincial Assembly (MPAs) would be decided by the Sindh Assembly.

Under the new policy, all official travel by government officials will be carried out in economy class instead of business class.

The government has also prohibited official ceremonies in hotels, directing that all state functions be held only in government buildings.

Security arrangements for individuals without essential needs are also being withdrawn, while unnecessary police mobile vehicles assigned to certain individuals will be recalled.

Officials have also been instructed to bring their own food and drinking water to offices during the austerity period.

Memon said the government and state institutions remained united during the difficult period and stood alongside the federation. He emphasised that although the administration was encouraging austerity, it did not want to hinder economic activity.

The minister clarified that shop closing timings during Eid would remain unchanged.

He further announced a ban on official iftar and dinner gatherings, adding that no provincial minister would attend such events during the austerity period.

According to the minister, the aircraft used by the Sindh chief minister will also remain grounded and will not be utilised during the austerity drive.

Commenting on the recent increase in fuel prices, Memon said the federal government had raised petroleum prices due to unavoidable circumstances rather than choice, adding that savings generated through austerity measures would ultimately be directed toward public welfare.

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