People on motorbikes ride past a portrait of Pakistani Prime Minister Shehbaz Sharif, set up in protest against rising fuel prices amid the U.S.-Iran conflict, ahead of the nationwide rollout of a government scheme offering a PKR 100-per-litre subsidy to eligible motorcycles, rickshaws and vehicles up to 800cc, in Karachi, Pakistan, on September 16, 2026.
| Photo Credit: Reuters
Pakistan on Thursday (September 17, 2026) announced a raft of austerity measures to curb fuel consumption as escalating conflicts in West Asia led to an increase in global oil prices, threatening nationwide gas and power supplies.
The measures, approved by the Pakistan cabinet, will remain in effect for three months as the government seeks to contain fuel consumption and expenditure.
The development comes after the government on Tuesday (September 15, 2026) raised the price of petrol by PKR 4.10 per litre and high-speed diesel (HSD) by PKR 6.41 per litre, taking them to PKR 384.34 and PKR 415.83 per litre, respectively.
Also Read | Pakistan mulls revival of austerity measures amid West Asia hostilities
Oil prices have risen amid continuing tensions in West Asia and concerns over supplies following attacks on energy infrastructure in Saudi Arabia, including the temporary closure of its East-West oil pipeline after an aerial attack.
Under the measures announced on Thursday (September 17, 2026), fuel allocations for government vehicles will be cut by 50%, although vehicles used by the armed forces, law enforcement agencies and essential services will be exempted.
Markets will be required to close by 9 p.m., while marriage halls can operate until 10 p.m. and restaurants until 11 p.m. Drug stores and medical laboratories will be exempted from the restrictions.
The government also announced a 5% reduction in non-employee-related expenditure and banned official foreign visits as well as domestic travel for meetings, asking officials to switch to virtual meetings instead.
Official dinners have also been prohibited, except those hosted for foreign visitors and delegations, while the purchase of new government vehicles has been banned.
Published – September 17, 2026 09:11 pm IST
