Pakistan’s biggest sporting event is set to begin without fans on Thursday, as a global increase in energy costs sparked by the Iran war pushed the government to impose sweeping austerity measures.
The 11th edition of cricket’s Pakistan Super League (PSL) will have no spectators in the stands until the crisis in the Middle East subsides.
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Officials say fuel linked to transport and other logistics is saved in this way.
The “difficult” decision was taken in line with national austerity measures that also include the closure of schools for two weeks, the Pakistan Cricket Board said.
The country of over 250 million people depends heavily on fossil fuels for its energy needs, and even minor increases in fuel prices can drive the inflation up and increase electricity prices – all highly sensitive political issues.
The country spent about 11% of its GDP on fossil fuel imports in the fiscal year 2024.
A growing shift towards solar energy and the massive expansion of rooftop solar systems has however cushioned the worst effects of the rising energy prices so far.
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Afia Malik, a senior researcher at the at Pakistan Institute of Development Economics (PIDE), said the austerity measures will help provide marginal subsidy support to low-income groups but the ultimate impact of the war will be on food inflation, which is expected to increase substantially.