PM Sharif flags US-Iran war caused oil hike, economic pressures in Cabinet meeting

Prime Minister Shehbaz Sharif told the federal cabinet that Pakistan has played a key diplomatic role in facilitating dialogue between Iran and the United States, while warning that the ongoing tensions have significantly impacted global oil prices and the country’s economy.

Addressing the cabinet, the prime minister revealed that negotiations between Iran and the U.S. began in Islamabad on April 11, including a marathon 21-hour session between the two sides. He credited Deputy Prime Minister Ishaq Dar and Chief of Army Staff Asim Munir for their efforts in supporting the peace process, which he said contributed to the continuation of a ceasefire.

Sharif described Iran as a “brotherly neighboring country” and noted that Iranian Foreign Minister Abbas Araqchi visited Pakistan for detailed discussions, while also engaging with other countries including Oman and Russia. According to the prime minister, Iran has indicated it will respond to ongoing negotiations after consultations with its leadership.

He warned that the conflict has already had economic consequences, particularly through rising global oil prices. Pakistan’s weekly oil import bill, he said, surged from around $300 million before the escalation to approximately $800 million, creating additional pressure on economic stabilization efforts.

The prime minister said a task force is monitoring the situation daily, while the government is working with provinces on measures such as subsidies in public transport to cushion the impact. He also praised Petroleum Minister Ali Pervaiz Malik for his role in managing the situation.

Sharif added that Pakistan has repaid $3.5 billion in external loans and thanked Saudi leadership for its continued support in navigating economic challenges. He emphasized the need for unity and sustained effort, stating that Pakistan’s diplomatic initiatives for regional peace will continue.

The cabinet also reviewed progress on the privatisation of Pakistan International Airlines (PIA) during the meeting.