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Pakistan·Iran·United States·Middle East·Trade & Economy·Energy·Diplomacy

Pakistan extends austerity measures as US-Iran ceasefire talks collapse

Tuesday, 12 May 2026, 06:22 · 1 min read

Pakistani Prime Minister Shehbaz Sharif has extended a nationwide austerity drive until June 13, 2026, after US President Donald Trump rejected Iran's latest ceasefire proposal, describing it as "totally unacceptable." The measures — originally announced in March following joint US-Israeli strikes on Iran — include a 50% cut in fuel allowances for official vehicles, grounding of 60% of government transport, and a ban on non-essential foreign travel by ministers. Pakistan, which is heavily reliant on West Asian oil imports, has seen supply chains severely disrupted since the conflict began, prompting Islamabad to also revive a long-stalled domestic oil refining policy worth an estimated $6 billion in delayed investment.

Sources
DawnGovt dusts off oil refining policy as Hormuz disruptions bite ↗︎DawnPM extends conservation, austerity steps till June 13 ↗︎The HinduPakistan extends countrywide austerity drive after U.S., Iran fail to strike deal ↗︎
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