Pakistan orders sweeping austerity measures as Iran war triggers oil crisis

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Pakistan has implemented sweeping austerity measures in response to disruptions in oil and gas supply caused by the United States-Israel war on Iran and escalating conflict in the Middle East. Announced on March 10, 2026, by Prime Minister Shehbaz Sharif, the measures include a four-day workweek for government employees, a two-week closure of schools, and a shift to online classes for universities. Government officials will forgo salaries and allowances, and legislators will face salary cuts. The government is also restricting foreign travel, limiting social gatherings, and reducing fuel allowances. These steps aim to conserve energy and mitigate the economic impact of disruptions to maritime traffic in the Strait of Hormuz.
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