Array of Countries Implement Salary Cuts and Work-From-Home Measures Following Iran-Israel Conflict
The Iran-United States and Israel conflict has begun impacting the economies of several countries, prompting them to tighten fiscal belts to avoid economic crisis.
Compiled by detikcom on Thursday (12 March 2026), policies implemented by affected nations—predominantly from Asia—range from reduced office hours to fuel efficiency measures.
Pakistan Closes Schools for Two Weeks
Prime Minister Shehbaz Sharif announced a series of austerity measures on Monday (9 March). Beginning the following week, all schools across Pakistan will close for two weeks, affecting approximately 40 million students. Higher education institutions and universities will switch to online classes during the same period.
Government offices, except banks, will operate only four days per week, with half of civil servants working from home. The fuel allowance for official vehicles will be cut by half for two months, with exceptions only for ambulances and public buses. Procurement of new government vehicles has been suspended until June 2026.
At the ministerial level, cabinet ministers and government advisers have agreed to forgo their salaries and allowances. Federal and provincial legislators are expected to voluntarily cut their salaries by 25%. The government has also banned the organisation of iftar dinner banquets during Ramadan.
Pakistan has increased petrol and diesel prices by 55 rupees (approximately £0.25) per litre, the largest increase in the country’s history. Because nearly all of its energy needs depend on imports, inflation in Pakistan is highly vulnerable to fluctuations in global fuel prices.
“To stabilise our economy, we have taken difficult decisions,” Sharif said in his televised speech.
Thailand Implements Work-From-Home for Civil Servants
In Thailand, Prime Minister Anutin Charnvirakul ordered civil servants to work from home beginning Tuesday (10 March), except for those required to serve the public directly.
Other mandatory measures include maintaining air conditioning at 26-27 degrees Celsius, wearing short-sleeved shirts instead of formal attire, switching off lights and electrical equipment when not in use, and avoiding lift usage in favour of stairs.
Official travel abroad has also been suspended. The government has also urged the public to carpool to reduce fuel consumption.
Should the situation deteriorate further, the government plans to implement stricter measures, such as dimming shopping mall, cinema, and commercial building signage, and closing petrol stations at 10pm.
Thailand currently has energy reserves sufficient for approximately 95 days. Some 68% of its energy needs are supplied by natural gas, and the country is seeking additional liquefied natural gas supplies from the United States, Australia, and South Africa.
Bangladesh Closes Universities to Conserve Electricity
Bangladesh has shut all public and private universities as part of emergency energy conservation measures, accelerating the Eid al-Fitr holiday.
The government determined that university campuses consume substantial electricity for dormitories, classrooms, laboratories, and air conditioning. The closure is also expected to reduce traffic congestion, which has been wasting fuel. Government and private schools in Bangladesh have already been closed since the beginning of Ramadan, leaving nearly all educational institutions in the country on holiday.
Schools following foreign curricula and private tutoring centres have also been asked to suspend operations temporarily.
Bangladesh relies on imports for 95% of its energy needs. The government has already implemented daily fuel purchase restrictions since Friday (6 March) following panic buying and hoarding. The severe gas crisis has forced four of five state-owned fertiliser plants to cease operations, with available gas supplies redirected to power plants to prevent widespread blackouts.
Bangladesh has been forced to purchase liquefied natural gas from the spot market at significantly higher prices to cover the supply shortfall.
Vietnam Eliminates Fuel Import Tariffs
In Vietnam, the Ministry of Commerce has urged businesses to encourage employees to work from home to conserve fuel consumption. The government has also called on the public not to hoard or speculate on fuel.
Vietnam is among the countries most severely affected by supply disruptions resulting from the Iran conflict, given its heavy dependence on energy imports from the Middle East. Since late last month, petrol prices in Vietnam have risen 32%, diesel 56%, and kerosene has surged 80%. Long queues of vehicles were observed at various petrol stations in Hanoi on Tuesday (10 March).
In emergency response, Vietnam decided on Monday (9 March) to eliminate fuel import tariffs, effective until the end of April. Prime Minister Pham Minh Chinh has also directly contacted leaders of Kuwait, Qatar, and the United Arab Emirates to secure fuel and crude oil supplies for his country.