Level: Notice
Location: Pakistan
Category: Infrastructure outage, Civil unrest, Conflict
Abide by all government directives linked to energy conservation over the coming weeks amid the Middle East conflict (see related alerts). The federal government reviewed ongoing austerity measures on 10 June and extended the operating hours of commercial establishments. Essential services will remain exempted from any restrictions. The federal government has directed provincial governments to enforce these guidelines.
Advice
- Follow all directives issued by the authorities. Monitor official government channels or reach out to your nearest International SOS Assistance Centre for verified updates on energy conservation and related advisories.
- Reconfirm scheduled business appointments and those at government offices due to reduced work week/timings.
- Avoid all protests and strike-related gatherings as a precaution.
- Monitor our Pakistan alerts for updates.
More detail
Impact
Under revised orders, standalone grocery stores and Kiryana stores can operate until 22.00 (all times local), while markets, shopping centres and retail stores can continue to operate until 21.00. Cafes and restaurants are permitted to trade until 23.00. Delivery and takeaway services are exempt from restrictions.
Since early March, other austerity measures, including a four-day work week for all government workers, remain in place. Such measures are expected to continue until 30 June. These restrictions were temporarily suspended during Eid al-Adha.
Outlook
Pakistan’s heavy reliance on the Gulf countries for its oil and gas imports makes it vulnerable to disruption to energy flows via the Strait of Hormuz. The absence of domestic oil reserves also exacerbates the existing challenge. In addition, the restrictions imposed by the International Monetary Fund to stabilise its finances limit the government’s ability to absorb shocks.
These factors are highly likely to prompt protests in the coming weeks, particularly triggered by any further hike in fuel, electricity and/or gas prices. Overall inflation and perceived discontent are likely to act as driving factors for opposition parties to hold gatherings and demonstrations.
Separately, the prevailing El Nino weather phenomenon will compound the effects of the Middle East conflict. These are likely to manifest in the form of prolonged gas/electricity outages or price hikes and prompt social unrest (protests, road blockades or strikes).