Pakistan cancels military parade as oil crisis triggers austerity across Asia

Wednesday 18 March 2026 - 15:45

By: Dakir Madiha

Pakistan cancels military parade as oil crisis triggers austerity across Asia

A severe energy crisis linked to the war in Iran is forcing governments across Asia to impose emergency austerity measures, as disruptions in the Strait of Hormuz choke vital oil and gas supplies to heavily import-dependent economies.

Pakistan announced it would cancel its annual Pakistan Day military parade scheduled for March 23, replacing it with limited flag-raising ceremonies. The move is part of broader cost-cutting measures introduced by Prime Minister Shehbaz Sharif, including a four-day government workweek, a two-week school closure and a directive to ground 60 percent of government vehicles. Officials told a Senate committee that the country holds only 11 days of crude oil reserves, along with 21 days of diesel and 27 days of gasoline.

Other Asian countries are adopting similar steps. In the Philippines, President Ferdinand Marcos Jr. ordered government offices to shift to a four-day workweek starting March 9, with longer daily hours. Local administrations across the country quickly implemented the directive. Thailand has mandated remote work for public employees not involved in essential services, suspended overseas travel and introduced energy-saving measures, including limits on air conditioning and reduced elevator use.

Bangladesh, which relies on imports for about 95 percent of its fuel, has introduced strict rationing. Authorities limited fuel purchases per vehicle and deployed the military to protect storage facilities after unrest at fuel stations. Reports indicated long queues stretching more than a kilometer in central Dhaka.

India has taken emergency steps to redirect liquefied petroleum gas supplies from industrial users to households. Refineries, including those operated by Reliance Industries, were ordered to halt the use of LPG as feedstock and increase output. In New Delhi, commercial LPG distribution has been sharply reduced from normal levels.

Countries with larger reserves have begun tapping strategic stockpiles. Japan released 80 million barrels from government and private reserves, equivalent to about 45 days of supply. South Korea pledged to release a record 22.46 million barrels as part of a coordinated emergency response led by the International Energy Agency. The United States committed 172 million barrels from its strategic petroleum reserve.

Despite these efforts, analysts warn that the coordinated release covers only a limited period of supply from the Gulf and may not offset prolonged disruptions. Experts say the current measures provide short-term relief but carry significant risks if the conflict continues and reserves are depleted without viable alternatives.