Pakistan is enacting sweeping austerity measures to combat a looming energy crunch exacerbated by surging oil prices and the closure of the Strait of Hormuz.
Schools nationwide will close for two weeks, with universities moving to online classes. Office workers are instructed to work from home to conserve fuel.
Government fuel allowances will be halved, and Cabinet members will forgo salaries for two months. Parliamentarians face a 25% pay cut, with overall government spending reduced by 20%.
These actions follow disruptions to global oil shipments and sharp price increases after the Strait of Hormuz, which handles one-fifth of global crude, was impacted by recent geopolitical events.
Long queues have formed at petrol stations across Pakistan due to panic buying and concerns over rising costs. Analysts warn the fuel price hike will fuel inflation and disproportionately affect lower-income households and key sectors like agriculture and construction.
The crisis is also impacting Pakistan's export industries, particularly its textile sector. One fashion brand reports a significant drop in online sales from Gulf countries and disrupted travel due to airport closures.
Economists deem the government's measures essential to avert a full-blown energy emergency, describing the situation as a "major shock" to Pakistan's economy.