Schools across Pakistan are being forced to close for a fortnight from next week with government departments down to a four-day week, according to Prime Minister Shehbaz Sharif in a televised address to the nation.
Sharif says the rising oil prices as a result of the war could destabilise the economy and has ordered all university courses to be taught online and 50% of staff in offices to work from home.
Government departments are facing a 20% spending cut with bans on purchasing new air conditioners, vehicles and furniture until further notice. Fuel allowances for departments are also being slashed by 50% with other half of official vehices being taken off the road. Buses and ambulances are exempt from the restrictions.
Pakistan imports most of its energy and has already been forced to increase petrol and diesel prices to the highest on record.
Governments moved to act after fuel prices surged past $119 per barrel on Monday as uncertainties around the Strait of Hormuz squeezed global supplies.
Bangladesh also shut universities on Monday bringing forward the Islamic Eid holiday as it scrambled to conserve its electricity and fuel reserves.
In Pakistan's biggest city Karachi, Liaquat Mughal said the prime minister had taken timely action to "minimise the negative impact on our economy". Businesses warn that this has a bigger impact on households who are already struggling amid high inflation.
Shop worker Khizar Ali told Reuters "look, as soon as the school closures were announced, the entire market emptied out". This is a bookshop, uniform shops - all empty".
U.S. President Donald Trump who earlier said the oil price surge was a small price to pay for World safety and peace later threatened Iran with 'fire and fury' over closure of Strait of Hormuz causing fuel prices to drop as a result.
Pakistan's restrictions come as large public festivals and events still take place, drawing huge crowds.
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