New Delhi, March 16: The ongoing conflict between Iran and Israel, coupled with the U.S. involvement, has severely impacted Pakistan’s economy. As tensions rise in the Middle East, Pakistan faces significant challenges regarding its agreements with Saudi Arabia, leading to a deteriorating economic situation in Islamabad. This crisis comes at a time when Pakistan is already grappling with economic weaknesses.
The war in Afghanistan, along with persistent battles against the Tehrik-i-Taliban Pakistan (TTP) and the Balochistan Liberation Army (BLA), has exacerbated these difficulties. Officials indicate that these conflicts are adversely affecting Pakistan not only on the military front but also economically. The situation has become so dire that Pakistan must take drastic measures to salvage its remaining economic stability.
In response, Islamabad has implemented several austerity measures and announced cuts across various sectors. The government has decided to keep up to 60% of official vehicles off the roads in central and provincial departments. Officials earning over 300,000 rupees are being asked to voluntarily forgo two days of salary, although this does not apply to those in health and education sectors.
Additionally, members of provincial and central assemblies have been instructed to reduce their salaries and allowances by 25% for two months. A significant step taken by the government is a 50% reduction in fuel provisions for official vehicles.
Cabinet ministers, state ministers, and special assistants to the Prime Minister will not receive their full salaries for two months. Non-essential expenditures in both central and state government departments will see a 20% cut. Officials are now prohibited from traveling in business class.
During foreign trips, all officials must travel economy class, and only essential international travel is permitted for ministers and members of parliament. There is a complete ban on purchasing new sustainable goods for government offices, with limited IT purchases allowed after scrutiny. All meetings in government departments will now be conducted virtually.
These measures aim to reduce both travel and accommodation costs. The existing ban on purchasing new government vehicles will remain in effect until June 2026. Except for those in the banking sector and essential services, all government offices will operate only four days a week.
Before organizing government seminars, training sessions, and conferences, prior approval will be required. The Pakistani government has also advised the private sector to adopt similar guidelines, although compliance is not mandatory.
Observers note that Pakistan is deeply in debt. If the Middle East crisis persists, the austerity measures taken may not provide the necessary relief. Experts warn that prolonged crises could not only harm Pakistan’s economy but could lead to its complete collapse. Typically, business activity sees a boost during Eid, but these disruptions have slowed retail activity, with consumers purchasing only essential items and refraining from spending as they once did.
Many citizens are questioning the need for a 20% increase in fuel prices announced on March 6. This decision, aimed at curbing hoarding, has backfired, adversely affecting the populace. The agricultural sector, which constitutes 23% of the economy, has also suffered. Rising fuel prices have made transportation via taxis and rickshaws prohibitively expensive, complicating mobility for many. This decision has significantly impacted food delivery riders as well.
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K.K./A.B.M
Arpit Soni has had a passion for journalism since the beginning. Now he has turned this hobby into his profession. Arpit, who is a resident of Udaipur, enjoys editing and writing news related to journalism. He has worked as a Senior Content Producer in several important roles at Bhaskar, Patrika, Pratahkal, Punjab Kesari, and Times. Arpit completed his schooling in Udaipur and Jaipur. He has been working in the media industry for more than 10 years, and his journey is still continuing. ✍️📚
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