Pakistan to Close Schools, Cut Spending Amid Iran War

Pakistan’s government, led by Shehbaz Sharif, has announced measures to cut fuel use and reduce spending amid economic strain from the US-Israel war with Iran. Schools will close for two weeks, government offices will scale back operations, public employees will work from home, and fuel allocations for official vehicles will be halved. Fuel prices have also risen sharply, adding pressure on households and businesses.

Shehbaz Sharif, the Prime Minister of Pakistan, announced a series of stringent measures on Monday aimed at curbing fuel consumption and reducing government spending, as the country faces economic strain caused by the ongoing US-Israel war with Iran, which has disrupted global energy supplies and driven up international fuel prices. The government says these steps are necessary to stabilize the economy and minimize the financial burden on citizens while responding to external shocks affecting energy costs.
Under the new plan, schools across Pakistan will close for two weeks starting next Monday, a move that will impact roughly 40 million students in a country of about 250 million people. Colleges and universities will transition to online classes for the same period, in an effort to reduce commuting and energy use. In addition, the government announced a ban on iftar dinner parties during the holy month of Ramadan, aiming to cut down on non-essential energy consumption during the evenings.
Government offices, with the exception of banks, are expected to scale back operations to four days a week, and half of all public employees will work from home. Fuel allocations for official vehicles will be cut in half for two months, with critical exceptions granted for ambulances and public buses that serve essential functions.
Sharif also announced personal and institutional cost-cutting measures. Cabinet ministers and advisers will forgo their salaries and allowances, while members of federal and provincial legislatures are expected to take voluntary pay cuts of 25 percent. The purchase of new official vehicles has been suspended until June 2026, further reducing government expenditure.
The announcement comes as Pakistan has raised petrol and diesel prices by 55 rupees per liter ($0.20, €0.18), marking the largest single increase in the country’s history. Because Pakistan imports the majority of its energy, inflation is highly sensitive to global fuel price fluctuations, which have been exacerbated by the conflict in the Middle East.
El-Sayed Mohamed, a truck driver transporting goods across Pakistan, said the fuel price hikes are already affecting daily life. “Prices are high because vendors use trucks to transport vegetables from wholesalers, which increases the costs,” he explained. “The cost of transporting vegetables has risen to between 3,000 and 4,000 Egyptian pounds compared to the previous 2,500 pounds.” Market vendors and consumers alike are feeling the pressure, with higher transportation costs contributing to the rising prices of basic food items.
In a televised address to the nation, Sharif emphasized the necessity of the measures, stating, “To stabilize the economy, we have taken difficult decisions.” He acknowledged that the government has limited control over global energy prices but assured citizens that efforts are being made to minimize the economic burden.
These measures form part of a broader strategy by the Pakistani government to manage the country’s economic challenges amid international instability and rising energy costs. By reducing public expenditure, limiting fuel consumption, and shifting key services online, the government hopes to mitigate the impact of global energy market volatility and safeguard the country’s economic stability.