US-Iran War Hurts Pakistan's Economy, Oil Import Bill Surges to $800 Million

The war between United States and Iran has dealt a serious blow to Pakistan's economic progress made over the past two years, but Islamabad will continue its efforts to help ease tensions between the two warring sides and restore peace in West Asia, Pakistan Prime Minister Shehbaz Sharif said. Speaking during a cabinet meeting, Sharif said that Pakistan's oil import bill had surged from $300 million before the conflict to $800 million placing additional pressure on the economy. He also noted a reduction in petroleum consumption during 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 said. “If a week ago our bill was $300 million, today it has reached $800 million,” he added. Further, Shehbaz claimed that a task force is monitoring the situation daily and said that collective efforts are needed to tackle the challenges. Meanwhile, Shehbaz said that Islamabad made sincere efforts to promote regional stability and briefed the Cabinet about the progress made in the US-Iran talks and Pakistan's efforts to ease tensions in the region. He highlighted that marathon talks between Iran and the US held in Islamabad on April 11 lasted for 21 hours and marked a significant diplomatic breakthrough. Shehbaz said Pakistan made sincere and coordinated efforts for the success of the negotiations, with contributions from Field Marshal Asim Munir, Deputy Prime Minister/Foreign Minister Ishaq Dar, and other senior officials. As a result of these efforts, he said, the ceasefire between Iran and the United States has been extended and continues to hold. The prime minister informed the cabinet that Iranian Foreign Minister Abbas Araghchi visited Pakistan with his delegation and held multiple rounds of talks, including a two-hour meeting with him. “Before the Iranian foreign minister visited Russia, I spoke with him on the phone. He assured me that all his meetings in Oman were held with sincerity of intent and, after consultations with his leadership, he will give a positive response soon,” he said, referring to Araghchi’s whirlwind visits to Islamabad, Muscat and Moscow over the weekend. 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 Shehbaz Sharif to discuss the regional situation. US President Donald Trump on Sunday reiterated that American and Iranian officials could hold phone talks to find a peaceful resolution to the conflict. Last week, Trump extended the two-week ceasefire with Iran indefinitely to give Tehran more time to prepare a unified proposal to end the war. 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 then expanded the war across the Gulf region.