Govt mulling revival of austerity measures, decision to be taken soon: Tarar

Govt mulling revival of austerity measures, decision to be taken shortly: Tarar.

Key points

• News Desk Published September 14, 2026 Updated September 14, 2026 09: 46pm.
• While high-speed diesel (HSD) costs Rs403.32 per litre, at present, the rate of petrol stands at Rs375.82 per litre.
• The cabinet's Economic Coordination Committee (ECC) convened at the Finance Division on Monday for a session chaired by Finance Minister Muhammad Aurangzeb.
• Tarar created the remarks while addressing a press briefing alongside Information Technology Minister Shaza Fatima Khawaja and Petroleum Minister Ali Pervaiz Malik on the government's fuel relief scheme.
• Out of the received messages, 42, 933 applicants have been successfully registered for the PM Special Relief Scheme, the statement remarked.

News Desk Published September 14, 2026 Updated September 14, 2026 09: 46pm. Join our Whatsapp Channel. Add Dawn as a trusted source.

Information Minister Attaullah Tarar remarked on Monday that the administration was considering reviving austerity measures introduced during a previous fuel conservation drive against the backdrop of renewed hostilities in the Middle East.

Meanwhile, the austerity measures were confirmed on March 9 to mitigate the impact of the ongoing US-Iran war. These included a 50 per cent cut in fuel allowances for official vehicles, salary cuts for lawmakers, and a partial work-from-home policy in the public sector.

Tarar created the remarks while addressing a press briefing alongside Information Technology Minister Shaza Fatima Khawaja and Petroleum Minister Ali Pervaiz Malik on the government's fuel relief scheme. It was rolled out on Sunday against the backdrop of rising oil costs.

In response to a question, the information minister remarked Prime Minister Shehbaz Sharif had directed consultations on the austerity measures, some of which, he observed, "are still in force, such as market timings".

Tarar continued that "austerity measures previously taken were being reviewed to assess which of the previous measures need to be revived in the present situation". He continued that a decision will be taken shortly.

Notably, the administration concluded the measures on June 19, except for market timings. Nevertheless, in July, it emerged that it was considering shifting back to fuel conservation and austerity measures.

In practice, the move comes against the backdrop of renewed hostilities in the Middle East. It have disrupted major oil supply routes and led to a rise in fuel costs.

Along with the crisis in the Strait of Hormuz stemming from the US-Iran war, trade through Bab al-Mandab – which has become a vital route for Saudi oil exports in recent months – is additionally facing a growing threat from Houthi rebels.

While high-speed diesel (HSD) costs Rs403.32 per litre, at present, the rate of petrol stands at Rs375.82 per litre. Relief scheme to cost around Rs25bn monthly.

Speaking regarding the relief scheme, under which users of motorcycles, rickshaws, Qingqis and vehicles up to 800cc will receive relief of Rs100 per litre, Tarar stated the premier had directed Deputy Prime Minister and Foreign Minister Ishaq Dar to ensure that transport fares did not rise after the launch of the scheme.

Tarar additionally stated the steering committee for the scheme would include the chief secretaries of all four provinces, Azad Jammu and Kashmir (AJK) and Gilgit-Baltistan.

In his address, Tarar remarked a war room and a call centre had been established under the scheme and that "constant monitoring is going on".

For context, the petroleum minister, addressing the press briefing, remarked efforts were underway to ensure fuel availability.

"Today, I met with private oil refineries and discussed with them for one hour how to ensure that in September or October and even if any issues emerge in the Bab al-Mandab, how we can ensure fuel availability and distribute the burden evenly, " he remarked.

He remarked the government's takeaway from the present situation should be that "it should be prepared to deal with such a crisis in the future".

On the reduction in the petroleum levy, the minister referred to the relief scheme and remarked the administration was taking steps to ease the fuel burden "despite buying fuel at twice the cost".

Malik remarked the premier was personally supervising work on "strategic petroleum reserves, bonded schemes".

He further remarked the targeted relief was estimated to cost roughly Rs25 billion a month, adding that "the federal government and the Ministry of Finance have given assurances". Free of charge registration message.

Separately, PM Shehbaz chaired a session to review the progress on the relief scheme and directed that the message for the registration be produced free of charge, the Prime Minister's Office (PMO) noted.

For context, the premier was briefed that more than 600, 000 messages have been received from Islamabad since the launch of the scheme.

In practice, the prime minister remarked the public should be provided with every feasible guidance in registration and other necessary steps. He additionally ordered the launch of a comprehensive media awareness campaign regarding the scheme. Finance minister approves fuel relief scheme.

Meanwhile, the cabinet's Economic Coordination Committee (ECC) convened at the Finance Division on Monday for a session chaired by Finance Minister Muhammad Aurangzeb. This person approved PM Shehbaz's fuel relief package.

According to a press release issued by the Finance Division, the ECC reviewed the Petroleum Division's summary on the fuel relief scheme. While cars up to 800cc will receive Rs1, 000 for 10 days, based on 30 litres per month at Rs100 per litre, under the scheme, two- and three-wheelers will receive relief of Rs500 per week, equivalent to five litres at Rs100 per litre.

For context, the plan will be restricted to non-commercial users, with relief limited to one vehicle per owner.

Meanwhile, the Ministry of IT and Telecom will deploy and manage the Fuel Pass System (FPS) for the digital management and transparent delivery of the scheme's benefits.

"The targeted and digitally managed mechanism is aimed at ensuring that the benefit reaches eligible consumers efficiently while strengthening transparency and accountability in implementation, " the statement read, adding that the ECC approved a Rs75 billion technical supplementary grant to implement the scheme.

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and throughout the world.

Taken together, the developments around govt mulling revival of austerity measures, decision to be taken soon: Tarar point to a situation that is still moving, and the coming days should bring more clarity.