Govt begins consultations on austerity measures amid Iran-US tensions

ISLAMABAD: The federal government has begun consultations on a range of austerity measures in response to the ongoing tensions between Iran and the United States, with officials considering steps aimed at reducing energy consumption and easing pressure on national resources, according to government sources.

Sources said on Wednesday that the proposed measures could be implemented if regional tensions escalate further, prompting the government to reintroduce several administrative restrictions previously used during periods of economic and energy stress.

Among the proposals under consideration is a three-day weekend for government offices, while authorities are also reviewing a plan to allow 50% of government employees to work from home.

The government is additionally considering limiting the number of official vehicles in use and reducing petrol and diesel consumption across government departments as part of broader cost-cutting efforts.

Sources said restrictions on the operating hours of markets and commercial centres are also being discussed to help conserve energy.

Final decisions on the proposed measures are expected within the next few days, although no formal announcement has yet been made.

According to sources, the federal government will also consult provincial administrations before implementing any major austerity measures to ensure a coordinated approach across the country.

The discussions come amid concerns that a further deterioration in the Iran-US standoff could have economic implications for Pakistan, particularly in the energy sector. However, officials have not yet indicated whether the proposed measures will be adopted or under what circumstances they would be enforced.