Pakistan Imposes Nationwide Work-From-Home And School Closures As Strait Of Hormuz Blockade Triggers Energy Crisis

Pakistan closes schools and shifts to remote work as the Strait of Hormuz blockade drives fuel prices to record highs. Read about the 2026 austerity plan.

By: AXL Media

Published: Mar 12, 2026, 6:04 AM EDT

Source: The information in this article was sourced from CNA

Sweeping Measures to Curb Fuel Consumption

In a drastic move to preserve dwindling energy reserves, Pakistan has announced a series of nationwide austerity protocols. For the next two weeks, schools across the country will remain closed, and universities have been directed to transition all curriculum to online platforms. Additionally, the government has mandated that office workers across various sectors perform their duties from home. These interventions aim to significantly reduce the daily demand for fuel as the country grapples with the fallout of the U.S.-Iran war and the subsequent disruption of global supply chains.

Fiscal Sacrifices and Government Pay Cuts

The austerity drive extends deep into the administrative branch of the government. Fuel allowances for all state-owned vehicles are to be halved over the next two months. In a show of solidarity, Cabinet members, special assistants, and advisers have pledged to forgo their salaries entirely for sixty days. Furthermore, Parliamentarians will see a 25% reduction in their pay, contributing to a broader 20% cut in overall government expenditure. These measures are designed to alleviate the pressure on a national budget already strained by record-high energy import costs.

The Impact of the Strait of Hormuz Blockade

The primary catalyst for this domestic crisis is the Iranian blockade of the Strait of Hormuz, a strategic waterway responsible for approximately one-fifth of the world’s crude oil shipments. The blockade was initiated following U.S.-Israeli strikes on February 28, 2026. As a critical point for global oil flows, the closure has caused a "major shock" to Pakistan's economy, which is heavily reliant on imported oil and liquefied natural gas (LNG). With the primary shipping route obstructed, the government faces the prospect of sourcing fuel through alternative, far more expensive routes.