Pakistan’s economy suffers amid US-Iran war, says PM Shehbaz

Prime Minister Shehbaz Sharif has said that the ongoing US-Iran war has severely impacted Pakistan’s economy, with the oil import bill surging from USD 300 million to USD 800 million.

Islamabad: Prime Minister Shehbaz Sharif on Wednesday said that the US-Iran war has dealt a serious blow to Pakistan’s economic progress made over the past two years, as he asserted that his government will continue its efforts to help ease tensions between the two warring sides and restore peace in West Asia.

Speaking during a Cabinet meeting here, Shehbaz said Pakistan’s oil import bill had surged from USD 300 million before the conflict to USD 800 million, placing additional pressure on the economy. He also noted a reduction in petroleum consumption during the current week compared to the previous one.

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Shehbaz said a task force is monitoring the situation daily, according to an official statement.

He said collective efforts are needed to tackle the challenges.

Apprising the Cabinet about the progress made in the US-Iran talks and Pakistan’s efforts to ease tensions in the region, Shehbaz said Islamabad made sincere efforts to promote regional stability.

He highlighted that marathon talks between Iran and the US held in Islamabad on April 11 lasted for 21 hours and marked a significant diplomatic breakthrough.

Shehbaz said Pakistan made sincere and coordinated efforts for the success of the negotiations, with contributions from Field Marshal Asim Munir, Deputy Prime Minister/Foreign Minister Ishaq Dar, and other senior officials.

As a result of these efforts, he noted, the ceasefire between Iran and the United States was extended and continues to hold.

The prime minister informed the cabinet that Iranian Foreign Minister Abbas Araghchi visited Pakistan with his delegation and held multiple rounds of talks, including a two-hour session with him.

He said Araghchi assured that Iran would respond positively after consultations with its leadership.

“Before the Iranian foreign minister visited Russia, I spoke with him on the phone, in which he assured me that all his meetings in Oman were held with sincerity of intent, and after consultation with his leadership…he will give a positive response soon,” he said while talking about Araghchi’s whirlwind visits to Islamabad, Muscat and Moscow over the weekend.

He expressed hope that the conflict would end soon.

Pakistan plans to host a second round of talks between the United States and Iran.

The Iranian minister made two brief visits to Pakistan within 48 hours over the weekend, meeting with Field Marshal Munir and PM Shehbaz to discuss the regional situation.

Trump on Sunday reiterated that the US and Iranian officials can talk by phone for a peace solution to the conflict.

Last week, Trump extended the two-week ceasefire with Iran indefinitely to give Tehran more time to prepare a unified proposal to end the war.

The war began when the US and Israel jointly attacked Iran on February 28, killing Iranian Supreme Leader Ayatollah Ali Khamenei and several top commanders. The retaliation by the Islamic Republic extended the war to the entire Gulf region.