Prime Minister Shehbaz Sharif has stated that the ongoing conflict in the Middle East has significantly impacted Pakistan economic efforts, disrupting the country’s progress achieved over the past two years. He made these remarks while addressing a federal cabinet meeting.
The prime minister said Pakistan had been actively contributing to regional peace and stability. He highlighted diplomatic engagements, including extended discussions between Iran and the United States, which lasted for several hours and contributed to a temporary ceasefire situation.
He further noted that Iranian Foreign Minister Abbas Araghchi also visited Oman and Russia as part of diplomatic consultations. According to the prime minister, Iran had indicated that it would respond after detailed internal consultations with its leadership.
PM Shehbaz emphasized that the war has created a challenging global environment, especially in energy markets. Rising tensions have led to a sharp increase in global oil prices, directly affecting Pakistan economic efforts and macroeconomic stability.
He revealed that Pakistan’s weekly oil bill, which stood at around $300 million before the conflict, has now surged to $800 million. This sharp rise reflects the pressure created by global energy market volatility.
The prime minister explained that this increase in fuel costs has placed additional strain on Pakistan’s economic management and fiscal planning. He said that stabilizing the economy has become more difficult due to external shocks.
Despite these challenges, PM Shehbaz noted that Pakistan had successfully repaid $3.5 billion in external loans. He also expressed gratitude to Saudi leadership for its continued support in helping Pakistan manage its economic difficulties.
He concluded that consultations with provincial governments are ongoing to maintain subsidies in transport and other sectors, ensuring relief for citizens while continuing efforts to stabilize Pakistan economic efforts under difficult global conditions.
