PM Shehbaz Sharif signals further fuel price hikes, announces government spending cuts

Prime Minister Shehbaz Sharif, addressing the nation on the current regional situation, warned that petrol prices are expected to rise further in the coming days.

He expressed Pakistan’s deep sorrow over the killing of Iran’s Supreme Leader Ali Khamenei and his family, and strongly condemned Israeli attacks on Iran.

The prime minister also condemned attacks on Saudi Arabia, Kuwait, Qatar, Bahrain, and other countries.

He said that attacks on Gulf nations pose serious threats to regional peace and reaffirmed that Pakistan stands shoulder to shoulder with these countries, considering their security part of its own.

He noted that global crude oil prices have surged from $60 to over $100 per barrel, highlighting Pakistan’s dependence on oil and gas imports from the Gulf.

Observing the current global situation, he said the government has made difficult decisions, as Pakistan has no control over international oil and gas prices. The measures were taken to mitigate the energy crisis.

PM Sharif added that the government is making every effort to stabilise the economy despite challenging conditions.

He explained that the petrol price increase was a difficult but necessary decision, balancing economic realities with concern for the impact on poorer citizens.

He announced that for the next two months, fuel allocations for government department vehicles will be reduced by 50 per cent, with ambulances exempted.

Additionally, 60 per cent of government vehicles will remain grounded. Cabinet ministers, advisers, and assistants will voluntarily forego two months’ salaries and allowances, and members of parliament will face a 25 per cent salary reduction.

All departmental expenditures, apart from salaries, will be cut by 20 per cent, and procurement of office supplies has been completely suspended.