Govt announces austerity measures to brace for economic impact of Middle East war

2026-03-09 - 16:24

Prime Minister Shehbaz Sharif is currently addressing the nation. At the outset of his address, the premier said the entire region had been gripped by war. He said that Pakistan was making efforts to solve the situation through diplomacy. He said Pakistan was also facing terrorism on its Western borders. He said that the country’s armed forces were dealing with the situation under the leadership of Chief of Defence Forces Asim Munir. He also condemned the US-Israeli attacks on Iran that resulted in the assassination of Supreme Leader Ayotollah Ali Khamenei. He also condemned Iran’s retaliatory attacks on friendly Gulf countries and said that Pakistan stood shoulder to shoulder with them. PM Shehbaz said that due to the situation, the global price of oil had jumped to more than $100 per barrel. “If things keep progressing in this manner, then the situation will get out of hand,” he said. He said that Pakistan depended on oil and gas coming from the Gulf. “Keeping this reality in mind, the government took difficult decisions for the country’s economy,” he said. He said that it needed to be acknowledged that the global price of oil was not in Pakistan’s hands. “When conflict arises or war erupts in the region, the effects are felt on energy prices,” he said. At the same time, he assured the nation that the government was making efforts to ensure the economy remained strong. He said that the decision to raise the price of petroleum products was a “difficult” one, where his head was at war with his heart. He said that it was advised that prices be raised more than what was notified. “We tried to take the middle road so that the burden on you is less,” he said. Highlighting the economic pressures faced by the country, he said that Pakistan was close to default some time back. However, the government, setting aside political differences, gave preference to the people. “And you supported us and demonstrated patience,” he said. He said that inflation had fallen, the rupee was stable and electricity prices had also fallen. He assured the nation that the government would try its best to burden the people as little as possible. He said that in the coming days, oil prices would again increase. “But I will try that the burden does not fall on you. For this, efforts are ongoing day and night,” he said. He said that a meeting was convened on Monday, where austerity measures were discussed. Giving details, he said that for the next two months, the fuel allowance of official vehicles would be cut by 50 per cent. However, ambulances were not included in this. He said that for the next two months, 60pc of all government vehicles were being stopped. More to follow