Govt mulling revival of austerity measures, decision to be taken soon: Tarar

Information Minister Ataullah Tarar announced on Monday that the government is contemplating the reintroduction of austerity measures that were initially implemented during a fuel conservation campaign, as the Middle East faces escalating tensions. These austerity measures, which were announced on March 9 to counter the effects of the ongoing US-Iran conflict, included a 50% reduction in fuel allowances for official vehicles, salary cuts for lawmakers, and partial work-from-home policies in the public sector.

Tarar made these remarks during a press conference alongside Information Technology Minister Shaza Fatima Khawaja and Petroleum Minister Ali Pervaiz Malik, who discussed the government's recent fuel relief scheme, launched on Sunday due to soaring oil prices.

In response to a question about the government's directives, Tarar stated that Prime Minister Shehbaz Sharif had ordered consultations on the austerity measures, some of which, he noted, "are still in force, such as market timings." He added that the government was reviewing previous measures to determine which ones to reinstate in the current circumstances.

A decision on this matter is expected soon. The previous austerity measures were discontinued on June 19, except for market timings; however, in July, the government revealed its intention to revert to fuel conservation policies and austerity measures. This decision comes amidst heightened hostilities in the Middle East, which have disrupted major oil supply routes and contributed to a surge in fuel prices.

The Strait of Hormuz, a critical oil transport route affected by the US-Iran war, and the Bab al-Mandab, a vital passage for Saudi oil exports, are particularly vulnerable to threats from the Houthi rebels.

The relief scheme, which will provide a discount of Rs100 per litre on petrol and high-speed diesel (HSD) for motorcycles, rickshaws, and vehicles up to 800cc, was revealed by Tarar. The Prime Minister has directed Deputy Prime Minister and Foreign Minister Ishaq Dar to ensure that transport fares do not increase following the implementation of the scheme.

A steering committee comprising the chief secretaries of all four provinces, Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan, will manage the scheme, under which a war room and call center have been established for constant monitoring. The Petroleum Minister discussed ongoing efforts to ensure fuel availability, emphasizing the government's readiness to deal with such crises in the future.

The minister also mentioned steps being taken to alleviate the fuel burden, even though fuel is being procured at double the usual cost. The targeted relief is estimated to cost approximately Rs25 billion per month, with assurances from the federal government and the Ministry of Finance.