PM Shehbaz warns renewed US-Iran conflict could hit economy again

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Prime Minister Shehbaz Sharif chairs a meeting to review austerity measures in the evolving economic situation in Islamabad on July 16, 2026. —Prime Minister Office
Prime Minister Shehbaz Sharif chairs a meeting to review austerity measures in the evolving economic situation in Islamabad on July 16, 2026. —Prime Minister Office

ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday warned that the adverse impact of fresh tensions in the Middle East, triggered by the recent US-Iran attacks, could hit the country’s economy again.

The prime minister made these remarks while presiding over a meeting to review the impact of regional tensions on Pakistan’s economy and reports on austerity and cost-saving measures.

According to the PM Office, the prime minister observed that uncertainty in the region persists and directed all relevant authorities to remain fully prepared to address any potential challenges.

He appreciated the public for their wholehearted support during the previous national austerity and conservation campaign, expressing his sincere gratitude.

The prime minister further stated that Pakistan’s economy was currently stable.

He directed that a comprehensive contingency plan be prepared to enable timely action.

The premier also commended the nation’s active participation in the government’s fuel and energy conservation campaign.

PM Shehbaz noted that the government’s timely and effective strategy had ensured efficient management of the country’s fuel supply situation.

He emphasised that the government had protected the interests of ordinary citizens, motorcycle riders, rickshaw drivers and transport operators.

The prime minister further said that the government’s subsidies had effectively mitigated the impact of fuel price increases on the public.

He directed that, in coordination with provincial governments, strict action be taken against those involved in creating artificial shortages of petroleum products.

Prime Minister Shehbaz Sharif chairs a meeting to review austerity measures in the evolving economic situation in Islamabad on July 16, 2026. —Prime Minister Office
Prime Minister Shehbaz Sharif chairs a meeting to review austerity measures in the evolving economic situation in Islamabad on July 16, 2026. —Prime Minister Office

However, Shehbaz warned that “escalating regional tensions could adversely affect Pakistan’s economy in the future” and stressed the importance of preparedness.

The meeting was informed that sufficient petroleum reserves were available to meet the country’s requirements and that arrangements had been made to ensure uninterrupted supplies in the future.

The meeting was attended by Federal Ministers Ahsan Iqbal, Muhammad Aurangzeb, Ali Pervaiz Malik, and Awais Khan Leghari, Minister of State Bilal Azhar Kayani, Special Assistant to the Prime Minister Tariq Bajwa, Governor of the State Bank Jameel Ahmad, and other senior government officials.

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