Govt extends austerity drive till June 13 over Iran-US deadlock

The federal government has extended its ongoing austerity campaign until June 13  under additional fuel conservation and cost-cutting measures, 24NewsHD TV reported on Monday. 

According to an official notification issued by the Cabinet Division, the extension was approved following recommendations of the committee overseeing fuel conservation and austerity measures, which were endorsed by the Prime Minister.

Under the revised directives, fuel supply for official government vehicles will continue to be reduced by 50 percent.

It further stated that 60 percent of government vehicles in Islamabad will remain non-operational as part of the ongoing austerity policy.

The measures are aimed at reducing fuel consumption and ensuring strict financial discipline in public sector operations, the notification added.

PM Shehbaz first introduced the austerity plan on March 9 in a televised address, days after the government hiked the prices of petrol and diesel by 20%.

Fuel prices recorded a sharp increase in the country following oil supply disruption from the closing of the Strait of Hormuz, a key route for oil and gas shipping.

Iran closed the strait in response to joint attacks by the US and Israel, which began on February 28 and ended on April 8 following a Pakistan-mediated ceasefire.

Despite the extension in the ceasefire, the two sides remain at odds over proposals for a permanent end to the war, particularly over their respective blockades of Hormuz.

In the March 9 televised address, PM Shehbaz announced the austerity plan applicable across federal government institutions, including ministries, departments, autonomous bodies, state-owned enterprises, the legislature, defence organisations, and the judiciary.

Reporter: Awais Kiyani