Pakistan Weighs Economic Fallout Of Iran-US Tensions, Rules Out Fuel Price Hike

(MENAFN- Tribal News Network) Islamabad: An important consultative meeting was held at the President House on Monday to address the possible economic impacts of rising tensions between Iran and the United States and to provide relief to vulnerable segments of society. The meeting reviewed the country's economic, energy, and security challenges.

The meeting was chaired by President Asif Ali Zardari and attended by Prime Minister Shehbaz Sharif, federal ministers, chief ministers of all four provinces, the Prime Minister of Azad Kashmir, the National Security Advisor, and other senior officials.

Participants were directed to take all possible measures to provide maximum relief to the public amid inflationary pressures. Despite strain on oil and gas supplies, the participants emphasized ensuring the availability of fuel in the country, while proposals to increase petroleum prices were rejected.

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According to sources, there was also agreement on significantly reducing government expenditures under an austerity policy. A proposal to impose a nationwide smart lockdown on weekends to reduce fuel consumption was discussed.

However, some participants expressed concerns that it could negatively impact industrial and production activities as well as exports. Based on provincial feedback, it was later decided not to implement this proposal.

The meeting was informed that despite rising oil prices, fuel consumption in the country has increased by 25%.

In light of this situation, the Ministry of Information was directed to launch a comprehensive awareness campaign to promote careful use of energy among the public.

The President also stressed encouraging the use of public transport and shared mobility. The meeting also reviewed in detail the possible impacts of the regional situation on Pakistan's economy and food security.

Briefings were given by the governments of all four provinces, Gilgit-Baltistan, and Azad Jammu and Kashmir regarding measures taken to control price pressures and ensure the availability of essential food items, highlighting the need for a coordinated national response.

The meeting was assured that despite the global crisis, timely decisions have prevented any disruption in fuel supply, and sufficient reserves are currently available to meet the country's needs, with further arrangements underway for the future.

Deputy Prime Minister and Foreign Minister Ishaq Dar briefed the meeting on the government's diplomatic engagements, including recent contacts with the leadership of Türkiye, Saudi Arabia, Egypt, and other countries involved in the conflict.

The meeting was also told that the Prime Minister has repeatedly rejected proposals to increase petroleum prices, and that resources saved through austerity measures are being used to provide relief to the public.

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