Pakistan Prime Minister Shehbaz Sharif on Wednesday said the ongoing conflict between the United States and Iran has significantly affected Pakistan’s economic progress over the past two years. Addressing a Cabinet meeting in Islamabad, Sharif highlighted the rising financial strain caused by increased energy costs, reported PTI.
He stated that Pakistan’s oil import bill has surged sharply – from around USD 300 million before the conflict to nearly USD 800 million – putting additional pressure on the country’s economy.
Rising fuel costs and reduced consumption signal economic stress
Sharif noted that the spike in global oil prices has had a direct impact on domestic consumption patterns. He informed the Cabinet that petroleum usage has declined in recent days compared to the previous week, indicating a broader economic slowdown, reported PTI.
A dedicated task force has been set up to monitor developments related to the conflict and assess its impact on Pakistan’s economy on a daily basis, according to the government.
Islamabad steps up diplomatic efforts to ease tensions
Emphasising Pakistan’s diplomatic role, Sharif said the government is actively working to reduce tensions between the United States and Iran. He underlined the importance of coordinated international efforts to restore peace and stability in the region, reported PTI.
The Prime Minister said Pakistan has made consistent and sincere attempts to facilitate dialogue and prevent further escalation in West Asia.
Talks in Islamabad seen as key diplomatic breakthrough
Sharif informed the Cabinet that high-level talks between US and Iranian representatives were held in Islamabad on April 11, lasting for nearly 21 hours. He described the discussions as a significant diplomatic development, reported PTI.
He credited senior officials, including Asim Munir and Ishaq Dar, for contributing to the negotiations. According to Sharif, these efforts helped extend the ceasefire between the two sides.
Engagement with Abbas Araghchi signals ongoing dialogue
The Prime Minister also briefed the Cabinet on recent engagements with Iranian Foreign Minister Abbas Araghchi, who visited Pakistan and held multiple rounds of discussions with senior leadership, reported PTI.
Sharif said Araghchi indicated that Iran would respond positively following consultations with its leadership. He added that communication between the two sides remains ongoing, including discussions held before the Iranian minister’s subsequent visits to other regional capitals, reported PTI.
Plans for further negotiations amid fragile ceasefire
Pakistan is now preparing to host another round of talks between the United States and Iran, as diplomatic efforts continue to build on the existing ceasefire arrangement.
Meanwhile, Donald Trump has signalled openness to continued dialogue, suggesting that communication channels between the two sides remain active.
Conflict continues to impact regional stability
The conflict, which began earlier this year, has had wide-ranging implications for regional security and global energy markets. Sharif expressed hope that ongoing diplomatic initiatives would lead to a resolution in the near future.
He reiterated that Pakistan will continue to play a constructive role in promoting peace, while also addressing the economic challenges arising from the prolonged tensions, reported PTI.
(With inputs from PTI)
US-Iran war dealt serious blow to Pakistan`s economic gains: PM Shehbaz Sharif
