Pakistan faces $800m hit as US-Iran tensions lift oil bills
Pakistan faces $800m hit as US-Iran tensions lift oil bills
Pakistan warns of an $800m oil import bill amid US-Iran war, as oil surges to $120 and diplomacy continues on West Asia peace efforts.
Islamabad — Pakistan's prime minister, Shehbaz Sharif, warns that the US-Iran war is pushing the country’s oil import bill toward a frightening milestone: about $800 million, a figure he says is hobbling economic progress. He stressed that Islamabad will keep mediating to restore peace in West Asia and pointed to recent diplomatic breakthroughs and planned talks as steps in the right direction.
With oil prices jumping to about $120 a barrel—the highest since mid-2022—the drag on import costs is clear. Pakistan, a net energy importer, faces tighter balance of payments and rising inflation as fuel and energy bills eat into public finances and household budgets. The spike in global energy costs compounds existing challenges, including fiscal strain and stalled growth, according to economists monitoring the region.
Sharif's remarks underscore how geopolitical tensions in West Asia ripple through energy markets far from the battlefield. By maintaining a role in diplomacy, Islamabad signals it hopes to secure smoother energy flows and stable prices, even as the international community grapples with stalled nuclear negotiations and continued blockades on Iranian exports. The prime minister highlighted diplomatic breakthroughs on the diplomatic track and outlined future talks as part of Pakistan's strategy to cushion the impact on its economy.
Analysts say the widening price gap between crude benchmarks and domestic fuel prices could slow reforms and complicate budget plans. Still, officials say the government is committed to resilience, with efforts to diversify energy sources, improve efficiency, and shield vulnerable households as the energy shock persists.
