To cut fuel usage, the government is contemplating limiting the number of working days each week in federal offices.
According to sources, the government intends to save $2.7 billion every year by using this method.
Pakistan’s total oil imports have surpassed $17 billion in the first 10 months of current fiscal year (July-April), representing a staggering 96 percent increase over the same time previous fiscal year.
Experts believe the increase isn’t due only to higher oil prices on the international market, since the country’s imports of petroleum products and crude have climbed by 24% and 1.36 percent, respectively.
According to the paper, the State Bank has developed three scenarios in which the government may save between $1.5 and $2.7 billion in foreign money each year.
In terms of commuting, these figures show that each extra working days’ worth of petroleum products would cost $642 million. Freight and transportation are not included here. With one fewer working day each week, it is predicted that our import bill will be lowered by $2.1 billion.
“All saving numbers are taken for a net reduction in oil import but subsidy on petroleum products could also come down by Rs. 3.5 billion per day,” the report said.
The average savings on petroleum products in the first scenario, with four working days and three holidays and shops operating on weekends, is anticipated to be $122 million per month or $1.5 billion per year. It should be emphasized that 90% of oil usage is anticipated for working days, with the remaining 10% for monthly holidays.
The savings on oil usage in the second scenario, based on four working days, two holidays, and one day of lockdown, with retail closed for one day, is anticipated to be $175 million per month or $2.1 billion per year.
The savings on the oil import cost may be roughly $230 million, or around $2.7 billion, in the third scenario, based on four working days, one holiday, and two days of lockdown with shops shuttered for two days.
Similarly, the Power Division has encouraged the government to confine commercial activity to daylight hours, cut the number of working days per week, and initiate a national energy conservation push across all energy consumption sectors, resulting in nearly 5,000 megawatts of electricity savings.
To read our blog on “Prior to policy-level talks with IMF, Miftah Ismail rules out the reduction of fuel and energy subsidies,” click here.
