The government is continuing its cost-cutting measures for another month.

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Less fuel, less travel, and pay cuts still happening

BY Mahnoor | 12-05-2026

ISLAMABAD:
Prime Minister Shehbaz Sharif has prolonged the country’s cost-cutting and fuel-saving plans until June 13. This is because the government is still dealing with economic problems caused by the Middle East conflict and increasing worldwide oil prices.

The Cabinet Division announced that the extension was approved based on suggestions from the fuel conservation and austerity measures monitoring committee. These measures were initially implemented on March 9 after US-Israeli attacks on Iran caused problems in global oil supply.

The current plan continues, cutting fuel for official cars by half, and keeping 60% of government vehicles parked. Emergency vehicles like ambulances and buses are not affected.

The government continued to prevent ministers and officials from traveling abroad, except for important trips that benefited the country. Previous rules, like the four-day work week for government offices (Monday to Thursday), remained in place.

The cost-cutting plan also lowers lawmakers’ pay by 25%. Workers in state-run companies and agencies will see pay cuts from 5 to 30%. Government offices must also cut unnecessary spending by 20%.

To cut costs, the government is letting up to half of its employees work from home on different days, except for those in critical jobs. Officials are also told to fly economy and use online meetings instead of in-person ones.

The prime minister has asked the Intelligence Bureau to check if the rules are being followed. Also, help like fuel discounts for motorcycle riders, farmers, and transporters will continue to ease the pain of rising fuel costs.

The President calls for something to be done

President Asif Ali Zardari told Prime Minister Shehbaz Sharif to do everything possible to lessen the effects of high prices on people.

According to the president’s office, the President met with a delegation at the President’s House. The delegation included Deputy Prime Minister and Foreign Minister Ishaq Dar, National Assembly Speaker Ayaz Sadiq, Interior Minister Mohsin Naqvi, Law Minister Azam Nazeer Tarar, and other officials.

The president instructed officials to explore ways to lower inflation, make sure essential items are available, and help ordinary people.

The president stated that even with the tough location, regional issues, Middle East conflicts, and supply problems, providing the most help to citizens should be the priority.

The statement mentioned that the meeting covered the country’s general state, issues concerning Afghanistan, and the shifting regional dynamics.

Those at the meeting also honored the people who died in last year’s May conflict with India, praised the skills of the military, and promised to always defend the country.

The orders were issued after the government increased petrol and diesel prices by 15 rupees on Friday. This was due to changing global oil prices caused by the Strait of Hormuz closing. It’s the second time fuel prices have gone up in May.

Rising oil prices are causing economic worry in Pakistan. Transportation costs are up, businesses expect higher expenses, and people fear more inflation in an already struggling economy.