US-Iran war hit Pakistan’s growth as weekly oil bill rose to $800 million: PM Shehbaz

Prime Minister Shehbaz Sharif said on Wednesday that the war in the Middle East had impacted Pakistan’s growth, with the oil bill rising to $800 million a week.

Chairing a meeting of the federal cabinet in Islamabad, the prime minister said Pakistan was heading towards a growth trajectory after achieving stability at the macro level, but the US-Iran war had impacted the collective efforts of the last two years.

Stating that crude oil prices are soaring once again, Prime Minister Shehbaz said: “We have to determine new prices next Friday. The current global market situation presents a huge challenge. However, thanks to collective foresight and joint efforts, we have made significant attempts to manage this situation more effectively.”

“I would like to congratulate Petroleum Minister Ali Pervez Malik and the entire team for their collaborative efforts in implementing effective measures. As a result, unlike other countries, we did not face long queues or the need for rationing. Overall, the situation has been satisfactory,” he said.

The prime minister further explained that world market prices reflect the magnitude of the challenge. “Before the war, our weekly oil bill was approximately $300 million, but has now increased to $800 million. We continue to strive to save and in recent days we have seen positive progress, with consumption significantly reduced compared to last week.”

Speaking about payments to the UAE, the prime minister said: “Our outstanding external debts (including approximately $3.5 billion in bilateral loans), thank God, have been settled. Our foreign exchange reserves are also stable at their current level, and we have made our debt payments.”

“We are extremely grateful to King Salman bin Abdulaziz and Crown Prince Mohammed bin Salman for playing a key role in this matter. I am sure that these important issues will also be resolved. Pakistan’s efforts for peace continue and there has been no reduction in them,” he added.

Read more: Pakistan remains central to Iran-US diplomacy.

He also mentioned that he had ordered the committee working with the provinces to continue consultations for a month to ensure that the subsidies being provided could be maintained.

The prime minister also updated the cabinet on Pakistan’s diplomatic engagement, which led to talks between Washington and Tehran in Islamabad. “The talks between Iran and the United States that took place on the night of April 11 lasted for almost 21 hours. It was a long and marathon session. Pakistan made sincere and concerted efforts to bring peace to the region,” he said.

He also praised Chief of Army Staff and Chief of Defense Forces Field Marshal Asim Munir, Deputy Prime Minister and Foreign Minister Ishaq Dar and other key figures who played an important role in these efforts. “As a result of these efforts, the ceasefire was extended and remains in effect.”

Regarding the visit of Iranian Foreign Minister Abbas Araqchi with his team for the second round of talks, Prime Minister Shehbaz said: “Important meetings were held during his visit. Before his trip to Russia, I had a telephone conversation with him in which he assured me that all his meetings in Oman were held sincerely and after consulting with its leadership, they will soon give a positive response.”

According to a statement issued by the Prime Minister’s Office (PMO), several important policies were approved during the meeting.

The statement noted that the cabinet approved the national vaccine production policy, which aims to reduce dependence on vaccine imports, save foreign exchange and make Pakistan self-reliant in vaccine production. “A special committee will be created under the DRAP to ensure price and quality control,” he added.

The cabinet also approved the first National Agricultural Biotechnology Policy, which aimed to “ensure national food security, boost agricultural productivity and promote research and development in the sector,” according to the statement.

The National Seed Policy 2025 was also approved, which aimed to increase agricultural production by 15 to 20 percent and empower farmers. “The policy includes measures to partner with global seed companies,” he said.

Additionally, the cabinet approved the National Skill Development Policy, which focuses on aligning the workforce with industry needs and modern requirements.

“It also includes provisions for international training and certification for Pakistanis traveling abroad for work. Cooperation between the federal government, provinces and the private sector will be essential to implement this policy,” the statement continued.

Additionally, the cabinet approved the FDE (Visiting Faculty) Regulations 2025, which allows teachers working on daily wages in grades 1 to 15 to be hired as visiting teachers based on their qualifications, in accordance with a Supreme Court decision.

“The meeting also reviewed the NEPRA Annual Report 2025 and the State of the Industry Report 2025,” he added.