Shehbaz Sharif has warned that the ongoing conflict involving Iran has triggered “major” economic fallout for Pakistan, significantly undermining the country’s recent economic gains. Speaking during a federal cabinet meeting, the prime minister said the crisis has placed fresh pressure on an already fragile economy and disrupted progress made over the past two years.

Sharif highlighted a sharp surge in Pakistan’s oil import costs as one of the most immediate impacts of the conflict. According to him, the country’s weekly oil import bill has jumped from around $300 million before the war to nearly $800 million, reflecting the spike in global energy prices. This increase has strained foreign exchange reserves and added to inflationary pressures across the economy.

The prime minister noted that the government is closely monitoring the evolving situation through a dedicated task force, which is assessing daily developments and their economic implications. He also pointed to a recent dip in petroleum consumption, suggesting that higher prices and conservation measures may already be influencing domestic demand patterns.

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Beyond immediate economic concerns, Sharif emphasized Pakistan’s diplomatic efforts to help ease tensions in the region. He said Islamabad has played an active role in facilitating dialogue between the United States and Iran, including hosting extended negotiations earlier this month. These talks, which reportedly lasted over 20 hours, contributed to a temporary ceasefire that continues to hold.

The broader regional conflict has had ripple effects across multiple emerging economies, particularly those dependent on energy imports. Rising oil prices and disrupted trade routes have increased fiscal burdens, forcing governments like Pakistan’s to consider austerity measures and seek external financial support to maintain stability.

Sharif called for collective international efforts to address the crisis, stressing that sustained peace in West Asia is essential for economic recovery not only for Pakistan but for many vulnerable economies. As uncertainty persists, the country faces the dual challenge of managing immediate financial pressures while navigating a volatile geopolitical landscape.

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