Pakistan Prime Minister Shehbaz Sharif has formally acknowledged that the ongoing conflict between Iran and the United States in the Middle East has dealt a severe blow to Pakistan's economic growth. Speaking during a cabinet meeting in Islamabad, the Prime Minister stated that Pakistan, which has been grappling with financial instability for a long time, has not remained untouched by the regional tensions. He emphasized that his government remains committed to reducing friction between the two warring sides and restoring peace in West Asia. The Prime Minister noted that the tension in the Middle East over the past two years has Importantly hindered Pakistan's economic development.
Escalating Economic Pressure and Oil Costs
During the cabinet session, PM Shehbaz highlighted the specific financial impact, noting that Pakistan's oil import expenditure surged from $300 million to $800 million due to the conflict. This significant increase has placed additional strain on the national economy, while he also pointed out a decrease in petroleum consumption this week compared to the previous week. According to the Prime Minister, a dedicated task force is monitoring the situation daily. He stressed that collective efforts are essential to navigate these challenges and that the government is closely watching the evolving situation to mitigate further damage.
Diplomatic Mediation and the 21-Hour Dialogue
Providing details on Pakistan's role in regional stability and the progress in US-Iran talks, Shehbaz Sharif revealed that Islamabad hosted a marathon 21-hour negotiation session between Iran and the United States on April 11. This session was described as a diplomatic success. The Prime Minister credited the coordinated efforts of Field Marshal Asim Munir, Deputy Prime Minister and Foreign Minister Ishaq Dar, and other senior officials for the progress. He noted that these persistent and sincere efforts led to the extension of the ceasefire between Iran and the US, which remains in effect today.
Iranian Foreign Minister's Visit and Future Talks
The Prime Minister informed the cabinet that Iranian Foreign Minister Abbas Araghchi visited Pakistan with his cabinet members for multiple rounds of discussions, including a dedicated two-hour session. Araghchi assured that Iran would provide a positive response after consulting its leadership. PM Shehbaz also mentioned a phone conversation with Araghchi prior to the latter's visit to Russia, where the Iranian minister confirmed that meetings in Oman were conducted with sincerity. Pakistan is now planning to host a second round of talks between the US and Iran. The Iranian minister made two short visits to Pakistan within a 48-hour window to discuss the regional situation with Field Marshal Munir and PM Shehbaz.
Meanwhile, US President Donald Trump reiterated on Sunday that officials from the US and Iran could engage in telephone conversations to find a peaceful resolution to the conflict, while last week, Trump extended a two-week ceasefire with Iran indefinitely, further signaling a potential shift toward regional stability. Prime Minister Shehbaz Sharif expressed hope that the conflict would end soon, allowing for the restoration of peace and economic stability in the region.