Bankrupt Pakistan forced to take ‘desperate measures’ as Iran War drains its already fragile economy: Details inside

Non-essential expenditures across both federal and provincial government departments are to be cut by 20%.

Pakistan, Iran War, Iran, Strait of Hormuz, MT Karachi, Karachi Port, United States, Israel, Oman, Middle East, TTP, BLA — The situation for Pakistan has become so dire that it is compelled to take measures to salvage its already fragile economy. (File)

New Delhi: Iran has granted permission for a Pakistani commercial oil tanker to pass through its territorial waters within the Strait of Hormuz. Farooq Nizami, a spokesperson for the Pakistan National Shipping Corporation (PNSC), stated that the vessel ‘MT Karachi’—carrying approximately 109,990 tons of crude oil—is scheduled to arrive at Karachi Port on Wednesday, March 18, 2026.

Pakistani Vessel Crosses Strait of Hormuz

According to a report by the news agency PTI, Nizami noted that amidst disruptions to commercial maritime traffic caused by the ongoing conflict in the region, the vessel successfully traversed the Strait of Hormuz after receiving clearance from Iranian authorities. Nizami confirmed that the oil tanker crossed the Strait on March 15. Since the commencement of attacks on Iran by the United States and Israel, hundreds of vessels have been stranded within the narrow maritime passage situated between Iran and Oman.

Middle East Conflict Exacerbates Pakistan’s Woes

The tensions in the Middle East have begun to have a direct impact on Pakistan’s economy. Following a sharp surge in fuel prices, the government has announced the implementation of a strict austerity package for a period of two months. The crisis in the Middle East has emerged at a time when Pakistan is already in a precarious economic position. The conflict in Afghanistan, coupled with persistent clashes involving the Tehrik-i-Taliban Pakistan (TTP) and the Balochistan Liberation Army (BLA), has further compounded the country’s difficulties.

Pakistani Government Announces Cuts on Multiple Fronts

The situation for Pakistan has become so dire that it is compelled to take measures to salvage its already fragile economy. Islamabad has now initiated several steps to protect its economic stability, announcing various budgetary cuts across multiple sectors. A decision has been taken to reduce the number of official vehicles utilized by federal and provincial government departments—effectively keeping up to 60 percent of these vehicles off the roads. Grade-20 officers in government offices earning more than Rs 300,000 have been requested to voluntarily forgo two days’ worth of their salary. However, this measure does not apply to personnel within the health and education sectors.

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Salary Cuts for Parliamentarians and Legislators in Pakistan

The government has also directed members of both provincial and federal legislatures to accept a 25% reduction in their salaries and allowances for a period of two months. In another significant move, the Government of Pakistan has reduced the petroleum quota allocated for official vehicles by 50%. Cabinet Ministers, Ministers of State, Special Assistants to the Prime Minister, and Advisors will not draw their full salaries for a period of two months. Non-essential expenditures across both federal and provincial government departments are to be cut by 20%. Furthermore, officials will no longer be permitted to travel in Business Class.

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