Pakistan to close schools and cut spending after oil price surge linked to US-Israel conflict with Iran
Mar 10th 2026
Facing record fuel price rises tied to the US-Israel conflict with Iran, Pakistan will close schools for two weeks, shift universities online, cut official fuel and pay, and scale back public services to ease economic pressure.
- Prime Minister Shehbaz Sharif announced two-week closures of schools and a shift to online classes for colleges and universities affecting about 40 million students.
- Government offices will move to four-day weeks with half of public employees working from home, while banks are exempt.
- Fuel allocations for official vehicles will be cut by half for two months, excluding ambulances and public buses.
- Cabinet ministers and advisers will forgo salaries and allowances and lawmakers have been asked to take voluntary 25% pay cuts.
- The government suspended new official vehicle purchases until June 2026 and banned iftar dinner parties during Ramadan.
- Pakistan raised petrol and diesel prices by 55 rupees per liter in the largest single increase on record amid global supply disruptions tied to the US-Israel conflict with Iran.
- Officials said the measures aim to curb fuel consumption and reduce spending as rising global oil costs and heavy fuel imports push up inflation and strain public finances.