Islamabad

Pakistan Prime Minister Shehbaz Sharif on Wednesday said the ongoing conflict between the United States and Iran has significantly impacted Pakistan’s economic recovery over the past two years. He added that Islamabad will continue diplomatic efforts to help reduce tensions and promote stability in West Asia.

Addressing a Cabinet meeting, Sharif noted that the country’s oil import bill has risen sharply—from around USD 300 million before the conflict to nearly USD 800 million—putting additional strain on the economy. He also pointed out a decline in petroleum consumption in the current week compared to the previous one.

He informed that a dedicated task force is closely monitoring developments on a daily basis, stressing the need for coordinated efforts to deal with the evolving challenges.

Sharing updates on diplomatic engagements, Sharif said Pakistan has played an active role in facilitating dialogue between the two sides. He highlighted that extended negotiations between the US and Iran held in Islamabad on April 11 lasted nearly 21 hours and marked a key breakthrough.

According to the Prime Minister, Pakistan’s efforts involved close coordination among senior leadership, including Asim Munir and Deputy Prime Minister and Foreign Minister Ishaq Dar. These initiatives, he said, contributed to the extension of the ceasefire between the two countries, which continues to remain in place.

Sharif also briefed the Cabinet on the recent visit of Iran’s Foreign Minister Abbas Araghchi to Pakistan, where multiple rounds of discussions were held, including a two-hour meeting with the Prime Minister. He said Araghchi conveyed that Iran would respond constructively after consulting its leadership.

The Prime Minister further mentioned that he had spoken to Araghchi over the phone before the latter’s visit to Russia, during which the Iranian minister expressed optimism about ongoing diplomatic efforts following meetings in Oman.

Sharif expressed hope that the conflict would be resolved soon and indicated that Pakistan is preparing to host another round of talks between the United States and Iran.

Meanwhile, Araghchi made two brief visits to Pakistan over the weekend, holding discussions with both the Prime Minister and military leadership regarding regional developments.

US President Donald Trump recently reiterated that Washington remains open to dialogue with Tehran to reach a peaceful resolution. He also extended an existing ceasefire arrangement to allow more time for negotiations.

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The conflict, which began on February 28 following joint strikes by the US and Israel on Iran, escalated rapidly, affecting the broader Gulf region. Pakistan has since been actively engaged in diplomatic efforts aimed at de-escalation.