Pakistan mulls revival of austerity measures amid West Asia hostilities
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September 15, 2026 e-Paper
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September 15, 2026 e-Paper
Updated – September 15, 2026 05:29 am IST – Islamabad
Auto rickshaw rides past closed shops at the electronics market, during a shutter-down strike against the petroleum levy and high fuel prices in Karachi, Pakistan. File
| Photo Credit: Reuters
Pakistan is considering reviving austerity measures to curb fuel consumption amid a fresh escalation of hostilities in West Asia, Information Minister Ataullah Tarar said on Monday (September 14, 2026).
The government had announced a raft of measures on March 9 to reduce the impact of rising petroleum prices at the peak of the war between the U.S. and Iran. These included a 50% cut in fuel allowances for official vehicles, salary cuts for lawmakers, and a partial work-from-home policy for public sector employees.
The measures were withdrawn in June after the two sides began a peace process.
However, a brief lull in hostilities failed to hold, with renewed attacks pushing up global oil prices and raising concerns over their impact on several countries, including Pakistan.
Addressing a press briefing alongside Information Technology Minister Shaza Fatima Khawaja and Petroleum Minister Ali Pervaiz Malik, Mr. Tarar said Prime Minister Shehbaz Sharif had directed consultations on reviving the austerity measures.
"Austerity measures previously taken… are being reviewed to assess which of the previous measures need to be revived in the present situation," he said.
Some measures, including reduced market timings, remain in place, Mr. Tarar said.
The indication of a possible revival of austerity measures came as petrol prices rose to PKR 375.82 per litre and high-speed diesel (HSD) to PKR 403.32 per litre.
The government has already announced a Rs 100 per litre relief for users of motorcycles, rickshaws, Qingqi three-wheelers and vehicles with engines up to 800cc.
Mr. Tarar said the Prime Minister had directed Deputy Prime Minister and Foreign Minister Ishaq Dar to ensure that transport fares did not increase following the launch of the relief scheme.
Published – September 15, 2026 05:28 am IST
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