US-Iran war affected Pakistan’s growth as weekly oil bill rises to $800m: PM Shehbaz

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

Chairing a federal cabinet meeting in Islamabad, the prime minister said Pakistan was on a growth trajectory after achieving macro-level stability, but the US-Iran war had affected collective efforts in the past two years.

Prime Minister Shehbaz stated that crude oil prices were skyrocketing once again, “We have to decide new prices before this coming Friday. The current global market situation poses a big challenge. But thanks to collective foresight and joint efforts, we have made significant attempts to manage this situation more effectively.”

“I would like to congratulate Oil Minister Ali Pervez Malik and the entire team for their cooperation 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 global market prices reflect the scale of the challenge. “Before the war, our weekly oil bill was approximately $300 million, which has now increased to $800 million. We are continuing our efforts to save, and in recent days we have seen positive progress, with our consumption significantly reduced compared to last week.”

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

“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 confident that these major issues will also be resolved. Pakistan’s efforts for peace continue and there has been no reduction in them,” he added.

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He further mentioned that he had directed the committee working with the provinces to continue the consultations for one month to ensure that the grants being provided could be sustained.

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

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

Regarding Iran’s Foreign Minister Abbas Araqchi’s visit 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 where he assured me that all his meetings in Oman were conducted with sincerity and after consulting with their leadership, they will give a positive response soon.”

According to a statement from 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-sufficient in vaccine production. “A special committee will be set up under DRAP to ensure pricing and quality control,” it added.

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

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

In addition, the Cabinet gave approval to 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.

In addition, the Cabinet approved the FDE (Visiting Faculty) Regulations 2025, which allows teachers earning daily wages in grades 1 to 15 to be appointed as visiting faculty based on their qualifications, in line with a Supreme Court ruling.

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