Pakistan on Monday extended its nationwide austerity drive and fuel conservation measures until June 13 as uncertainty surrounding the Middle East conflict continues to pressure global oil markets.

The Cabinet Division issued a formal notification after Shehbaz Sharif approved the extension on the recommendations of the implementation committee.

According to the notification, the government will continue a 50% reduction in fuel supply for official vehicles during the extended period.

In addition, authorities decided to keep 60% of official government vehicles off the roads under the ongoing austerity plan.

The federal government first introduced the emergency measures on March 9 after petrol and diesel prices rose sharply across the country.

At the time, Pakistan faced mounting pressure from disruptions in global oil supplies linked to tensions in the Middle East.

Fuel prices surged after Iran closed the Strait of Hormuz in response to joint attacks launched by the United States and Israel on February 28.

The conflict later ended on April 8 following a Pakistan-mediated ceasefire. However, diplomatic efforts to reach a permanent settlement remain stalled.

Four-day workweek and travel restrictions continue

During his March 9 televised address, Prime Minister Shehbaz said the wider region had become deeply affected by the Middle East conflict.

He stressed that Pakistan was also pursuing diplomatic efforts to help ease tensions and stabilise the situation.

The austerity measures apply to federal ministries, government departments, autonomous institutions, state-owned enterprises, the legislature, defence organisations and the judiciary.

Apart from fuel reductions, the government also introduced a four-day workweek for public offices. However, essential services and the banking sector remained exempt.

Authorities further instructed federal and provincial departments to reduce non-essential expenditure by 20% during the final quarter of the fiscal year.

Meanwhile, the government maintained restrictions on official foreign visits by ministers, parliamentarians and government officials except for mandatory trips.

The plan also requires up to 50% of government employees to work from home on alternate days, excluding workers involved in essential services.

Officials must continue travelling in economy class, while departments are encouraged to hold virtual meetings instead of physical gatherings to reduce costs.

Oil market uncertainty keeps pressure on Pakistan

Pakistan imports a significant portion of its oil and liquefied natural gas requirements, making the country highly vulnerable to supply disruptions and rising global energy prices.

Although the ceasefire between Iran and Israel remains in place, tensions continue over proposals concerning the future status of the Strait of Hormuz.

The waterway handles a major share of global oil shipments and remains one of the world’s most strategically important energy routes.

Energy analysts say prolonged uncertainty in the Gulf region could continue affecting fuel prices and inflation across oil-importing countries, including Pakistan.

The government hopes the austerity measures will reduce fuel consumption, limit public spending and ease pressure on foreign exchange reserves during the ongoing uncertainty.

Officials have not indicated whether the measures could continue beyond June 13 if tensions in the Middle East remain unresolved.