Prime Minister Shehbaz Sharif stated Wednesday that the ongoing conflict in the Middle East has severely reversed the economic gains Pakistan has achieved over the past two years, creating an extraordinary crisis in international markets.
Addressing a federal cabinet meeting in Islamabad, the premier attributed the setback to a sharp rise in global oil prices triggered by the hostilities. He noted that Brent crude has climbed to $114.64 per barrel, placing immense strain on Pakistan’s fragile economic recovery.
Soaring Oil Import Costs
The conflict, which began on February 28 when the United States and Israel launched strikes against Iran, has disrupted energy markets across the region. PM Shehbaz revealed that Pakistan’s weekly oil import bill has ballooned from $300 million before the conflict to $800 million currently.
“Rising global prices are affecting ongoing efforts to stabilise the economy,” the premier said, underscoring the challenge facing his administration.
Government Response and Subsidies
To mitigate the impact, a task force has been established to monitor the situation daily. The prime minister added that consultations with provincial governments are underway to continue subsidies in public transport and other essential sectors.
“Collective efforts are needed to tackle these challenges. We must work day and night to overcome the situation,” he urged.
PM Shehbaz also noted that Pakistan has successfully repaid $3.5 billion in external debt, expressing gratitude for Saudi Arabia’s support in managing the country’s economic difficulties.
Pakistan’s Role in Regional Peace
The prime minister highlighted Islamabad’s diplomatic efforts to promote stability. He confirmed that talks between Iran and the United States began in Islamabad on April 11, lasting 21 hours, with a ceasefire currently holding.
“Iran’s Foreign Minister Abbas Araghchi arrived in Pakistan with his team for the second phase of the negotiations. Important meetings were held,” PM Shehbaz said.
He added that he spoke with the Iranian foreign minister before his visit to Russia, during which Araghchi assured him that all meetings in Oman were conducted with sincerity and that a positive response would be forthcoming after consultations with Iranian leadership.
The premier expressed hope that the conflict would end soon, lasting peace in the region. He also commended Interior Minister Mohsin Naqvi for his role in supporting the peace process.
