Pakistan on Saturday withdrew emergency fuel conservation and austerity measures imposed during the US-Iran conflict, a day after slashing fuel prices by up to Rs74 per liter following a peace agreement between Washington and Tehran that eased pressure on global oil markets.
The measures were introduced after the conflict erupted in late February, disrupting energy supplies and shipping through the Strait of Hormuz, a critical artery for global oil trade, and driving up oil prices for import-dependent countries such as Pakistan.
In a notification, the Cabinet Division said Prime Minister Shehbaz Sharif had approved the immediate withdrawal of the restrictions.
“The Prime Minister has been pleased to approve the termination, with immediate effect, of all ‘Fuel Conservation and Additional Austerity Measures’ notified by the Cabinet Division from time to time since 9th March 2026, except for market timings specified vide Cabinet Division’s notifications of even number dated 3rd and 10th June, 2026, which shall remain applicable,” it said.
The move comes a day after the government announced steep reductions in fuel prices, saying it was passing on the full benefit of lower international oil prices to consumers after the signing of the Islamabad Memorandum of Understanding between the United States and Iran.
Pakistan had introduced a range of fuel-saving and austerity measures after oil prices surged during the conflict, seeking to limit energy consumption and ease pressure on public finances and foreign exchange reserves.
While terminating the emergency measures, the government said shops, markets and malls must close by 9 p.m., marriage halls and marquees by 10 p.m., and restaurants, cafes and food outlets by 11 p.m., though takeaway and home delivery services remain exempt.
Pharmacies, hospitals, medical laboratories, bakeries, tandoors, fuel stations, electric vehicle charging stations, gyms, sports facilities, IT companies and call centers are exempt from the closing-time restrictions.
The notification also said austerity measures that were in place before the outbreak of the Middle East conflict and had been notified separately by the Finance and Cabinet divisions would remain in force.
On Friday, Sharif said the government had used savings generated through austerity measures and development spending cuts to help cushion consumers from the impact of higher fuel costs during the conflict.
He said the federal government had utilized Rs129 billion ($464 million) through development budget savings and austerity measures to provide relief to households and businesses facing elevated energy prices.