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Sindh rolls out austerity measures as rising fuel prices bite

By Our Correspondent
March 11, 2026
Sindh Chief Minister, Syed Murad Ali Shah, presides over a cabinet meeting at CM House in Karachi on March 10, 2026. — PPI
Sindh Chief Minister, Syed Murad Ali Shah, presides over a cabinet meeting at CM House in Karachi on March 10, 2026. — PPI

The Sindh cabinet meeting, presided over by Chief Minister Syed Murad Ali Shah, on Tuesday approved a comprehensive austerity and fuel conservation plan, along with a series of governance, economic, social protection and education reforms, aimed at addressing the prevailing energy situation and strengthening public service delivery across the province.

After the meeting at the CM House, Information Minister Sharjeel Inam Memon held a press briefing to inform media persons about the cabinet’s decisions. He said the cabinet considered a 23-point agenda, approving measures related to fiscal discipline, fuel conservation, education reforms, women’s rights, agriculture, health care and institutional strengthening.

The cabinet approved the launch of a comprehensive austerity and fuel conservation drive aimed at reducing public expenditure and ensuring efficient use of energy resources in view of the prevailing economic pressures and uncertainty in global fuel markets.

Shah directed the chief secretary to implement a series of spending cuts, operational adjustments and fuel conservation steps across government departments and public institutions.

The government has reduced fuel allocations for official vehicles by 50 per cent for two months, a step expected to save around Rs960.55 million. Operational vehicles such as ambulances, buses and emergency services are exempted from the restriction.

Sixty per cent of the official vehicles in government departments will remain grounded for the next two months, while the departments have been directed to promote carpooling among officers to reduce fuel consumption.

Provincial ministers, advisers and special assistants have voluntarily decided to waive their salaries and allowances for three months: April, May and June. A 25 percent voluntary cut in the salaries of provincial legislators has been suggested during the same period, for which the provincial assembly speaker would be informed of the cabinet’s decision.

Senior government officials in BS-20 and above who are earning over Rs300,000 a month have also been encouraged to voluntarily forgo two days’ salary, except those serving in the health and education sectors.

The cabinet also approved a 20 percent reduction in non-essential government expenditure for the final quarter of the current fiscal year, excluding electricity bills and medicine procurement. The measure is expected to generate savings of over Rs12 billion.

A complete ban on the purchase of new vehicles and government durables will remain in force until June. The procurement of IT equipment will only be allowed after scrutiny by the relevant authorities.

The government has also imposed a ban on official foreign visits, except in unavoidable cases. Ministers, parliamentarians and government officials undertaking official travel will be required to travel in economy class.

Official dinners and large ceremonial events have also been banned, except for receptions for visiting foreign delegations. Government departments have been directed to conduct meetings through virtual or online platforms to minimise travel and lodging expenses.

To reduce fuel consumption caused by commuting, the government has approved work-from-home arrangements for up to 50 per cent of the staff on alternate days, except for essential services.

Both public and private sector offices will also observe a four-day working week, with adjustments in working hours where necessary. However, these measures will not apply to the banking sector, industry and agriculture, which will continue normal operations.

As part of the fuel conservation plan, spring holidays will be observed in schools from March 16 to March 31, while colleges and universities will shift to 100 per cent online classes during this period.

The government has also introduced additional public measures to reduce fuel consumption: speed limits on roads have been lowered, with motorways set at 90-100 km/h and highways at 65-80 km/h.

The number of guests allowed at wedding functions and public gatherings has also been restricted to 200, with the one-dish rule to be strictly enforced.

The provincial government has also strengthened monitoring mechanisms to prevent fuel hoarding and illegal storage of petroleum products. The energy department is coordinating with the Oil & Gas Regulatory Authority and the Ministry of Energy (Petroleum Division) to ensure a stable fuel supply and regulatory compliance across Sindh.

Deputy commissioners across districts have been directed to conduct regular inspections, maintain strict vigilance against illegal storage of petroleum products and take action against hoarders.

Shah said the austerity drive is aimed at ensuring fiscal discipline, conserving fuel resources and maintaining economic stability during the current regional and global energy uncertainties.

The cabinet also approved the landmark Student Attendance Monitoring & Redress System Policy, a technology-based initiative designed to address student absenteeism and rising dropout rates.

The policy introduces a mobile app and digital dashboard to track enrolment and daily attendance across schools managed by the education & literacy department, the Sindh Education Foundation and education management organisations.

The system will also identify risk factors affecting attendance and introduce interventions such as counselling and peer support. The programme is expected to be implemented in all schools across Sindh within a year.

Following consultations with business owners, the cabinet approved the Sindh Development & Maintenance of Infrastructure Cess (Second Amendment) Act, 2026, along with a revised Settlement Agreement (March 2026).

The amendments aim to streamline the collection and utilisation of the cess, which funds the development and maintenance of the industrial and transport infrastructure across the province.

To stabilise wheat supply and prices, the cabinet approved the expansion of the wheat release policy to include private traders, in addition to flour mills and chakkis.

The cabinet also approved the allotment of four acres of state land in Deh Khanto, Taluka Ibrahim Hyderi, District Malir, for the establishment of a nursing school attached to the Hasan Suleman Memorial Hospital.

The cabinet also approved $7.6 million for the hospital following an expansion of its covered area from 250,000 to 325,000 square feet and a rise in construction costs. The 312-bed tertiary-care hospital, located on the National Highway, will provide specialised healthcare services to the residents of Karachi and the surrounding districts.

The cabinet also approved the Sindh Women Agricultural Workers Rules, 2026, developed with technical assistance from the International Labour Organisation. The rules formally recognise women’s contributions in farming, livestock and fisheries, ensuring equal wages, maternity benefits, and protection against harassment and discrimination.

The cabinet also approved the Benazir Women Agricultural Worker Card for worker registration and the establishment of a BWSP Endowment Fund, with an initial allocation of Rs500 million to support female agricultural workers.

Shah directed the district administrations to ensure strict enforcement of the austerity measures, maintain vigilance against fuel hoarding, and implement the cabinet’s decisions effectively to maintain economic stability and improve service delivery across the province.