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Iran War Impact On Pakistan Economy: The impact of the ongoing fierce conflict between America, Israel and Iran is now deeply visible on Pakistan’s economy. As the war enters its third week, there is a severe fuel shortage in Pakistan. To deal with this crisis and reduce government expenses, Prime Minister Shehbaz Sharif has approved a comprehensive savings plan.

Salary cut ranging from 5 to 30 percent

According to the order issued by the office of Prime Minister Shahbaz, the salaries of employees of government companies and autonomous institutions will be cut by 5 to 30 percent. This decision was taken in a high-level review meeting, the main objective of which is to reduce the increasing burden on the government exchequer. The government claims that the savings from this cut will be used only to provide relief to the public.

60% government vehicles will be removed from the roads

The government has taken very strict steps to control fuel consumption:

• Fuel allocation for government vehicles has been reduced by 50 percent and will be monitored through third party audit.
• It has been decided to remove 60 percent of government vehicles from the roads for the next two months.
• To save fuel, a four-day working week has been implemented in the country.
• There has been a complete ban on the purchase of new vehicles and other government purchases.

The blame also fell on ministers and officials

Ministers and top officials have also been included in this savings campaign. The salaries of the Cabinet members, ministers, advisors and special assistants for the next two months will be used as savings for public welfare. Additionally, government representatives will not receive fees for attending board meetings and foreign travel by officials has also been completely banned.

Huge jump in fuel prices

This economic crisis in Pakistan has deepened because petroleum prices were increased by a record of Rs 55 per liter last Friday. Due to the war affecting the supply chain in the international market, the availability of fuel in Pakistan has reduced and the prices are becoming beyond the reach of the common man.