Adeel Siddiqui, an Executive Committee member of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has criticised the government’s latest austerity measures, describing them as an “economic curfew” while arguing that larger areas of public spending remain insufficiently addressed. In a statement issued on Saturday, Siddiqui questioned whether restrictions on government vehicles, official travel, business timings and other activities would generate meaningful reductions in fuel consumption or provide significant relief to the economy.
The comments followed the government’s decision to introduce several austerity measures amid rising fuel-related pressures. The measures approved by the prime minister include a 50% reduction in petrol allocations for government vehicles, a ban on purchasing new government vehicles and durable goods, restrictions on official foreign travel and limitations on business-class and club-class travel. The government has also restricted seminars and conferences financed from public funds, introduced a 5% reduction in non-essential government expenditure and imposed earlier closing times for markets and wedding halls.
Siddiqui argued that some of these measures were disconnected from the main sources of petroleum consumption in the economy. He noted that petrol was priced at Rs391 per litre and diesel at Rs425 per litre, while the government was collecting Rs105.65 per litre through different taxes and levies. In his view, the structure of fuel consumption meant that restrictions on market operating hours would have limited influence on overall petroleum demand because freight vehicles and supply chains continue to operate around the clock to transport goods across the country.
The FPCCI representative also questioned the expected fuel savings from restrictions on wedding halls. He said wedding halls primarily use diesel rather than petrol for their operations, meaning that earlier closures would not necessarily translate into reductions in petrol consumption. He similarly challenged restrictions on one-dish menus, arguing that food and catering activities themselves do not represent petroleum consumption and that the more significant fuel demand comes from freight transportation, agriculture and industrial production.
Siddiqui further argued that reducing government vehicle petrol consumption by 50% would have a relatively limited impact because government vehicles represent only a portion of total fuel consumption. He also described the 5% reduction in non-essential federal expenditure as largely symbolic, pointing to Rs1,071 billion in federal government spending that he said remained outside the reduction. His comments focused on redirecting austerity efforts towards areas where he believes larger savings could be achieved.
The FPCCI member also raised concerns about the financial burden associated with loss-making state-owned enterprises (SOEs). Citing reported figures, he referred to losses of approximately Rs60 billion at Pakistan Railways, Rs295 billion at the National Highway Authority, Rs113 billion at Qesco and Rs93 billion at Pesco, among other state entities. He argued that the scale of these reported losses warranted greater attention when the government was seeking ways to reduce expenditure and manage pressure on public finances.
Siddiqui said the government was providing approximately Rs2,078 billion in financial support to loss-making SOEs and proposed a 10% reduction in that amount. According to his calculation, such a reduction could generate savings of around Rs200 billion for the national exchequer. He called for an immediate 10% cut in financial support to loss-making state entities and argued that the resulting savings could provide greater room for measures aimed at supporting households and businesses.
The FPCCI representative also called for the removal or substantial reduction of the petroleum levy, which he described as a major component of the retail price of fuel. He additionally proposed a targeted fuel subsidy for commercial transporters, arguing that freight costs have a direct impact on the prices of essential goods. According to his position, reducing the cost burden on commercial transportation could help limit the effect of high fuel prices as they move through supply chains and ultimately reach consumers.
Siddiqui also urged the government to suspend daily fuel pricing, arguing that frequent changes make it difficult for businesses to plan transportation and logistics costs. He called for an emergency economic council involving representatives of the business community, transport sector and energy experts to develop measures aimed at reducing Pakistan’s dependence on imported fuel. His proposals represent the FPCCI member’s assessment of where government policy should focus as Pakistan deals with elevated fuel costs and pressure on businesses and consumers.
The comments add to ongoing debate over the effectiveness and scope of the government’s austerity programme. While the government has introduced restrictions intended to reduce fuel consumption and non-essential expenditure, Siddiqui has argued that larger fiscal savings would require attention to state-owned enterprise support, petroleum taxation and transportation costs. The discussion comes as businesses continue to assess the effect of fuel prices on production, freight, logistics and the broader cost of goods.
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