Pakistan Trades Education For Fuel: Shehbaz Sharif Orders Schools Shut Down, 4-Day Work Week To Curb Fuel Consumption

Islamabad: Pakistani Prime Minister Shehbaz Sharif has introduced a drastic suite of measures to curb national fuel consumption, announcing the closure of all schools and other educational institutions across the country for a fortnight. The Pakistani government's decision has forced students into an unwanted, sudden holiday, as the country continues to reel from the economic hits and energy crisis, amidst escalating conflict in the Middle East. The Shehbaz Sharif government's move is to immediately reduce the massive volume of petrol and diesel used daily by school transport networks and private commuting.

Further, Shehbaz Sharif declared that the government offices will transition to a 4-day working week, hoping to lower the electricity and fuel overheads associated with running the administrative machinery. The Pakistani government's decision comes at a time when global oil prices have breached the $100 per barrel mark, leaving import-dependent nations like Pakistan facing a severe foreign exchange crunch and supply shortages.

As per analysts, the disruption of the shipping lanes in the Strait of Hormuz following the eruption of the Iran conflict, Islamabad is badly facing the brunt of the war. The Pakistani government has admitted that with energy prices surging by nearly 40 percent in some sectors, the country could face massive blackouts and a total transport standstill. 

The closure of schools for 14 days is expected to provide some immediate relief to the fuel supply chain, however, the decision has led to concerns among parents and educators regarding the long-term impact on the academic calendar.  Though the government has remained firm, insisting that the priority must be the survival of the national economy. As offices shift to a 4-day schedule, the private sector is also being encouraged to adopt similar work-from-home strategies to assist in the effort to manage the most drastic energy challenge in the country's recent history.

Shehbaz Sharif, while addressing the nation, stated, "To stabilise the economy we have taken difficult decisions," as his government kept mulling options to reduce the energy crisis burden amidst uncontrollable global fuel prices. As per the announcement by the Pakistani government, schools will close for two weeks starting next week, and universities will switch to online classes to minimize travel.

Pakistan Raises Fuel Prices By 55/ Litre

Reports suggested that the government departments will face a 50% cut in fuel allowances for two months. Additionally, 60% of official vehicles, excluding buses and ambulances, will be taken off the road. To further reduce expenditure, only 50% of staff will work in offices, except in essential services. The government offices will operate 4 days a week, and departmental spending will be cut by 20%.

The government has also imposed restrictions on non-essential purchases and travel. The ban includes buying vehicles, air conditioners, and furniture, and most foreign travel by ministers and officials has been restricted.

Notably, Pakistan recently raised petrol and diesel prices by 55 Pakistani rupees per litre, the largest increase on record, due to surging global oil markets. The central bank noted that rising global energy prices have increased uncertainty around the inflation outlook, keeping the policy rate unchanged at 10.5%.