ISLAMABAD (Kashmir English): The federal government is again considering reimposing austerity measures including work-from-home policy in response to the rising oil prices in international market, local media said citing sources.
It said fears of a worsening economic situation triggered by escalating Iran-US tensions lead to the decision.
According to sources, a formal notification will be issued after consultations and final approval.
“The government has begun reviewing a new round of austerity measures as concerns mount over the economic impact of increasing geopolitical tensions in the Middle East.”
The authorities fear that the escalation between Iran and the United States could push global oil prices higher, placing additional pressure on Pakistan’s economy and public finances.
The sources said that Prime Minister Shehbaz Sharif is consulting with relevant stakeholders on further reducing government expenditures.
The proposed measures are aimed at limiting unnecessary spending while helping the country manage the financial impact of higher energy costs.
Sources expected that the new austerity measures will come into effect either this week or next week, depending on the completion of consultations and the approval process.
Fresh instructions are likely to be issued to federal ministries, divisions and government institutions once the package is approved.
The ministry said that relevant ministries were currently finalising the implementation mechanism for the proposed measures before a formal notification is released.
Work-from-home policy
As part of efforts to reduce energy consumption, the government is seriously considering to introduce a work-from-home policy for select government offices.
The proposal is intended to lower electricity usage and fuel consumption while reducing operational expenses.
Sources further said that the government is also reviewing proposals to impose stricter restrictions on the use of official vehicles.
