Prime Minister Shehbaz Sharif said the U.S.-Iran war is dealing a serious blow to the economic progress of Pakistan.
This development is critical because Pakistan is struggling to maintain fragile economic gains while facing volatile global energy markets. A sharp rise in import costs could destabilize the national budget and trigger further inflation for citizens.
During a cabinet meeting in Islamabad, Sharif said that the conflict has caused a major economic setback for the country [1]. He specifically highlighted the impact on energy procurement, noting that the geopolitical tension has led to a sharp rise in oil import costs [1], [2].
According to the prime minister, Pakistan's oil import bill stood at $300 million before the U.S.-Iran conflict began [1]. The current escalation is now undermining the efforts the government made to stabilize the economy.
Sharif used the meeting to inform his cabinet and the public about the extent of the fallout [1], [2]. The administration is now tasked with navigating the economic consequences of a war occurring outside its borders, a challenge that threatens to erase recent financial milestones.
While the government has not yet detailed a specific mitigation plan, the prime minister's remarks indicate that the conflict is no longer just a diplomatic concern but a direct threat to the domestic economy [1].
“The US-Iran war is dealing a serious blow to Pakistan’s economic progress.”
The situation underscores Pakistan's vulnerability to external shocks, particularly in the energy sector. Because the country relies heavily on imported oil, any conflict involving major producers or transit hubs in the Middle East directly inflates the cost of living and exhausts foreign exchange reserves, making long-term economic stability dependent on regional peace.
