The ongoing war between the United States and Iran has significantly impacted Pakistan's economic progress achieved over the past two years, Prime Minister Shehbaz Sharif stated during a cabinet meeting. However, Islamabad remains committed to facilitating de-escalation and restoring peace in West Asia.
Economic Challenges
Sharif highlighted that Pakistan's oil import bill surged from $300 million before the conflict to $800 million, placing immense pressure on the economy. He also noted a reduction in petroleum consumption in the current week compared to the previous one. "Allah Almighty had placed our economy on a macro level, and we were growing in numbers, but as a result of this sudden war, our efforts made in the last two years have gone down. You and I have no say in this," Sharif remarked.
A task force is monitoring the situation daily, and collective efforts are needed to tackle these challenges, the prime minister added.
Diplomatic Mediation
Sharif emphasized Pakistan's sincere efforts to promote regional stability. He briefed the cabinet on progress in US-Iran talks and Pakistan's role in easing tensions. Marathon negotiations held in Islamabad on April 11 lasted 21 hours, marking a significant diplomatic breakthrough. The prime minister credited Field Marshal Asim Munir, Deputy Prime Minister and Foreign Minister Ishaq Dar, and other senior officials for their contributions.
As a result, the ceasefire between Iran and the United States has been extended and continues to hold. Sharif informed the cabinet that Iranian Foreign Minister Abbas Araghchi visited Pakistan with his delegation, holding multiple rounds of talks, including a two-hour meeting with the prime minister.
"Before the Iranian foreign minister visited Russia, I spoke with him on the phone. He assured me that all his meetings in Oman were conducted with sincerity and that, after consultations with his leadership, he will give a positive response soon," Sharif said, referencing Araghchi's visits to Islamabad, Muscat, and Moscow.
Future Plans
Pakistan is planning 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 Field Marshal Munir and Prime Minister Sharif to discuss the regional situation.
US President Donald Trump reiterated on Sunday that American and Iranian officials could hold phone talks to find a peaceful resolution. Last week, Trump extended the two-week ceasefire with Iran indefinitely to allow Tehran more time to prepare a unified proposal to end the war.
Background
The conflict began when the US and Israel jointly attacked Iran on February 28, killing Iranian Supreme Leader Ali Khamenei and several top commanders. Iran's retaliation expanded the war across the Gulf region.
