Pakistan’s Economy in Freefall: Iran War Wipes Out 2 Years of Hard-Won Gains, PM Sharif Warns
Pakistan is taking a massive hit from the ongoing US-Iran conflict, with Prime Minister Shehbaz Sharif saying it has erased two years of economic progress. As the war drags on, everyday costs are skyrocketing, and the country is scrambling to keep its head above water.
Sharif shared these concerns in a recent cabinet meeting, pointing to a jump in Pakistan’s oil import bill from $300 million before the fighting started to $800 million now. Petroleum use has even dipped this week as people cut back. He stressed that his team is on it, with a task force tracking developments daily and pushing for collective action to ease the strain.
But Sharif isn’t just talking problems he’s highlighting Pakistan’s role in brokering peace. The country hosted initial US-Iran talks in Islamabad starting April 11, which ran for 21 straight hours. A ceasefire is holding for now, and more dialogue is in the works. Iran’s Foreign Minister Abbas Araghchi even made quick trips to Pakistan over the weekend, meeting Sharif for two hours and Army Chief Field Marshal Munir. Araghchi promised a positive response after checking with his leaders, following stops in Muscat and Moscow.
Sharif told the cabinet he spoke with Araghchi by phone before the Russia visit, getting assurances of good-faith efforts. Pakistan is now gearing up to host a second round of talks between the US and Iran.
The conflict kicked off on February 28 when the US and Israel struck Iran, killing Supreme Leader Ayatollah Ali Khamenei and top commanders. Iran’s response spread the fighting across the Gulf. On Sunday, former US President Trump still influential said phone talks could lead to peace and extended the ceasefire indefinitely last week to give Iran time for a solid proposal.
It’s a tough spot for Pakistan, stuck in the middle of regional chaos, but Sharif’s government is working overtime to mediate and protect its economy.
