A proposal to implement a nationwide smart lockdown was rejected after provincial governments expressed their opposition during a high-level meeting chaired by President Asif Ali Zardari in Islamabad on Tuesday. The discussion centered on the possibility of enforcing smart lockdowns across the country, but the provinces resisted adopting this measure at the national level.
Meanwhile, the government deliberated on austerity measures as it faced the challenge of protecting livelihoods while managing the economic impact of soaring oil prices caused by the ongoing Middle East crisis. Participants reaffirmed their commitment to intensify austerity efforts and fully implement initiatives aimed at conserving energy and fuel.
In a significant development, the federal government called on provinces to contribute to the Rs254 billion relief package, emphasizing the necessity of a unified response to the current challenges. To further evaluate the smart lockdown proposals, a sub-committee consisting of provincial finance ministers was established during the meeting. This committee is scheduled to convene today to review and reassess the recommendations.
The forum agreed that coordinated collaboration between the federal and provincial governments is crucial for navigating the situation, with a focus on maintaining economic stability and effective resource management.
Notably, the conflict, which began on February 28 with US and Israeli strikes on Iran, has escalated across the Middle East. Yemen’s Iran-aligned Houthis launched their first attacks on Israel on Saturday since the conflict’s onset, raising concerns about the security of shipping lanes near the Arabian Peninsula and the Red Sea.
Iran’s effective closure of the Strait of Hormuz, a critical passage that handles about one-fifth of the world’s oil supply along with numerous liquefied natural gas tankers, has driven Brent crude futures up by 59% in March—their highest monthly increase ever. Similarly, West Texas Intermediate (WTI) crude has surged 58% this month, marking its largest gain since May 2020.
