Prime Minister Shehbaz Sharif has accepted that Pakistan’s economy is facing a “major fallout” due to the two-month conflict between the United States (US) and Iran, as he cleared why Islamabad is so keen on ending the war in the Middle East. However, he said Pakistan was able to withstand impact with the support of Saudi Arabia, with which his country has a NATO-like defence pact.ย
Speaking at a federal cabinet meeting on Wednesday, the Pakistani prime minister said he prays that the conflict concludes, bringing an economic stability in the region. The everyday situation is also being monitored by a task force, Sharif said, adding that all around efforts are needed to tackle this challenge and bring an end to all hostilities.ย
“Allah Almighty had placed our economy on a macro level, and we were growing in numbers, but as a result of this sudden war, our efforts made in the last two years have gone down. You and I have no say in this,” Sharif said, as quoted by Arab News.ย
Pakistan’s increased import bills
The US-Iran conflict has resulted in soaring crude rates, which increased Pakistan’s import bills to USD 800 million from USD 300 million before the war started on February 28, Sharif said on Wednesday. Describing the situation as challenging for Pakistan’s economy, Sharif said his government has taken steps to avoid fuel shortages in the country.
โOur bilateral due loans of $3.5 billion have been paid,โ the Pakistani prime minister was quoted as saying by Arab News. โOur federal reserves are also on the same level … For this, we are very grateful to our respected brother, [Crown Prince] Mohammed bin Salman, and the King of Saudi Arabia.โ
Pakistan’s bid for a peace treatyย
Since the start of the war, Pakistan has been pushing for both sides to cease all hostilities. It has also engaged with leaders of both sides, particularly the Iranians, acting as a mediator. The first round of talks were also held in Islamabad and the second round of talks are also likely to be held there.
However, a US report has said that Washington shouldn’t trust the Pakistanis as mediators as its Army chief Field Marshal Asim Munir maybe shielding Iran’s interests. Similarly, an Iranian lawmaker has also said that Pakistan is not a “suitable intermediary” for the US-Iran talks.ย
ALSO READ – Imran Khan underwent medical procedure for eye ailment, sent back to Rawalpindi jail