Pakistan’s weekly oil bill reached $800m amid Middle East war: PM Shehbaz

Prime Minister Shehbaz Sharif has revealed that Pakistan’s weekly oil import bill has surged to approximately $800 million, highlighting the severe economic impact of the ongoing Middle East conflict on the country’s finances.

According to the prime minister, escalating tensions in the region—particularly disruptions linked to key energy routes—have significantly driven up global oil prices, placing additional strain on Pakistan’s already fragile external account. He warned that the situation poses a serious challenge to economic stability if the crisis persists.

Officials say the sharp rise in the oil bill is largely due to increased international prices and supply uncertainties, especially around the Strait of Hormuz, a critical route for global energy shipments. Pakistan, being heavily dependent on imported fuel, is particularly vulnerable to such external shocks.

The development comes at a time when the government is already grappling with inflationary pressures and efforts to stabilize foreign exchange reserves. Economists caution that sustained high energy costs could widen the trade deficit and put further pressure on the rupee.

Analysts add that the surge in import costs may also translate into higher domestic fuel prices and electricity tariffs, impacting both consumers and industrial activity. They stress the need for energy diversification and policy measures to mitigate the long-term impact.

Observers say the situation underscores how geopolitical conflicts can rapidly translate into economic challenges for import-dependent countries like Pakistan, reinforcing the urgency of both diplomatic stability and economic reforms.