Pakistan is considering reviving austerity measures to curb fuel consumption amid a fresh escalation of hostilities in West Asia, Information Minister Ataullah Tarar said on Monday (September 14, 2026).

The government had announced a raft of measures on March 9 to reduce the impact of rising petroleum prices at the peak of the war between the U.S. and Iran. These included a 50% cut in fuel allowances for official vehicles, salary cuts for lawmakers, and a partial work-from-home policy for public sector employees.

The measures were withdrawn in June after the two sides began a peace process.

However, a brief lull in hostilities failed to hold, with renewed attacks pushing up global oil prices and raising concerns over their impact on several countries, including Pakistan.

Addressing a press briefing alongside Information Technology Minister Shaza Fatima Khawaja and Petroleum Minister Ali Pervaiz Malik, Mr. Tarar said Prime Minister Shehbaz Sharif had directed consultations on reviving the austerity measures.

“Austerity measures previously taken… are being reviewed to assess which of the previous measures need to be revived in the present situation,” he said.

Some measures, including reduced market timings, remain in place, Mr. Tarar said.

The indication of a possible revival of austerity measures came as petrol prices rose to PKR 375.82 per litre and high-speed diesel (HSD) to PKR 403.32 per litre.

The government has already announced a Rs 100 per litre relief for users of motorcycles, rickshaws, Qingqi three-wheelers and vehicles with engines up to 800cc.

Mr. Tarar said the Prime Minister had directed Deputy Prime Minister and Foreign Minister Ishaq Dar to ensure that transport fares did not increase following the launch of the relief scheme.

Islamabad

Pakistan on Wednesday (September 2, 2026) said that it was “hopeful” for peace in West Asia despite recent escalation between the US and Iran, underlining the need for “dialogue and diplomacy” for stability in the region.

The remark made by Foreign Office spokesperson Tahir Andrabi comes days after Prime Minister Shehbaz Sharif met Iranian President Masoud Pezeshkian on the sidelines of the Shanghai Cooperation Organisation (SCO) summit on Monday (August 31, 2026) and discussed the evolving regional situation.

West Asia conflict LIVE updates – September 2, 2026

“The prime minister had reiterated Pakistan’s commitment to peace through restraint, dialogue and diplomacy, while stressing that the Islamabad MoU offered the most viable pathway to lasting peace and stability in the region,” Mr. Andrabi said.

“Despite recent escalations, we remain hopeful, and we will continue to strive for dialogue and diplomacy,” Andrabi said at a weekly press briefing.

Pakistan Foreign Minister Ishaq Dar also met Iranian Foreign Minister Abbas Araghchi on the sidelines of the summit on Monday (August 31, 2026) and underscored the need for dialogue and diplomacy to promote peace and stability in the region.

In June, the U.S. and Iran signed an MoU, aimed at bringing peace in West Asia. Pakistan also signed the document as a “guarantor”.

The negotiations collapsed in early July with renewed military strikes amid mutual accusations of agreement violations and deadlocked demands over the Strait of Hormuz – the Gulf chokepoint through which about a fifth of the world’s energy supplies passed in peacetime.

Mr. Andrabi said Army chief Field Marshal Asim Munir had also visited Tehran last week to facilitate an end to the U.S.-Iran conflict.

The visit “underscored Islamabad’s sincere and constructive role in bridging differences between Washington and Tehran,” he said.

Talking about the inaugural meeting of the Strategic, Political and Defence Committee established under the Makkah Joint Defence Agreement, on August 31, he said the three sides reaffirmed their resolve to work together for regional peace, stability and de-escalation, including through restraint and peaceful resolution of crises.

Pakistan, Saudi Arabia and Turkiye signed the trilateral defence agreement, known as ‘Makkah Joint Defence Agreement’, on August 7. Under the agreement, an attack against one of the countries will be treated as an attack against all of them, amid increasing security concerns in the wake of escalating tensions in West Asia.

Mr. Andrabi said that the three countries agreed to further institutionalise cooperation under the agreement, strengthening solidarity, collective deterrence and defence, and cooperative security for “just, inclusive and lasting peace”.

A Secretariat headed by a secretary-general will be established in Saudi Arabia, initially led by a secretary-general from Pakistan for three years, Andrabi said.