US-Iran war hit Pakistan’s growth as weekly oil bill soars 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 reaching $800 million a week.

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

Prime Minister Shehbaz said crude oil prices were skyrocketing again: “We need to determine new prices by next Friday. The current global market situation presents a major challenge. However, through collective foresight and joint efforts, we have made significant efforts to manage this situation more effectively.”

“I would like to congratulate Oil Minister Ali Pervez Malik and the entire team for their collaborative efforts in implementing effective measures. Thus, unlike other countries, we have not faced 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 around $300 million, it has now climbed to $800 million. We continue our cost-saving efforts and in recent days we have seen positive progress, with consumption significantly reduced compared to last week.”

Speaking about the payments to the UAE, the Prime Minister said: “Our outstanding external debts (including around $3.5 billion in bilateral loans) have, thank God, been repaid. Our foreign exchange reserves are also stable at their current level and we have completed our debt repayment.”

“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 peace efforts continue and they have not diminished,” he added.

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He also mentioned that he had asked the committee working with the provinces to continue consultations for a month to ensure that the grants awarded could be maintained.

The prime minister also briefed 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 for almost 21 hours. It was a long marathon session. Pakistan has been making sincere and concerted efforts to bring peace to the region,” he said.

He also congratulated Chief of Army Staff and Chief of Defense Force Field Marshal Asim Munir, Deputy Prime Minister and Foreign Minister Ishaq Dar, and other key figures who played an important role in these efforts. “Thanks to these efforts, the ceasefire was extended and remains in force.”

Regarding Iranian Foreign Minister Abbas Araqchi’s visit with his team for the second round of talks, Prime Minister Shehbaz said, “Important meetings took place during his visit. Before his trip to Russia, I had a telephonic conversation with him during which he assured me that all his meetings in Oman were conducted with sincerity and after consulting their leaders, they would 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 said the cabinet approved the National Vaccine Production Policy, aimed at reducing dependence on vaccine imports, saving foreign exchange and making Pakistan self-sufficient in vaccine production. “A special committee within DRAP will be set up to ensure price and quality control,” the press release added.

The cabinet also approved the first-ever national agricultural biotechnology policy, which aims “to ensure national food security, boost agricultural productivity and advance 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 measures to establish partnerships with global seed companies,” the statement said.

Additionally, the cabinet approved the National Skills Development Policy, which aims to align the workforce with industry needs and modern requirements.

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

Besides, the cabinet approved the FDE (Guest Faculty) Regulations, 2025, allowing daily wage teachers in classes 1 to 15 to be hired as guest teachers based on their qualifications, as per a Supreme Court ruling.

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