ISLAMABAD: Prime Minister Shehbaz Sharif on Thursday warned that the renewed escalation in the Middle East could have adverse implications for Pakistan’s economy, stressing the need for vigilance and preparedness across all relevant institutions.
Chairing a high-level meeting to assess the potential economic impact of the regional crisis, the prime minister said Pakistan’s economy remains stable but emphasised the importance of developing a comprehensive strategy to respond swiftly to any emerging challenges, PM House’s media wing said in a statement.
The meeting came as hostilities between the United States and Iran intensified following the collapse of last month’s ceasefire. For the first time since the Islamabad Memorandum of Understanding (MoU) paused fighting in June, the United States carried out two major waves of air strikes on Wednesday, targeting several sites near Iran’s southern coastline.
اسلام آباد: 16 جولائی 2026.
وزیرِ اعظم محمد شہباز شریف کی زیرِ صدارت خطے میں کشیدگی کے ملکی معیشت پر اثرات کا جائزہ اجلاس منعقد ہوا جس میں سادگی و کفایت شعاری کے اقدامات پر رپورٹ پیش کی گئی. وزیرِ اعظم نے اجلاس میں ہدایت کی کہ خطے کی صورتحال میں غیر یقینی برقرار ہے، ہر ممکنہ… pic.twitter.com/GTdp6LMW0X
— Prime Minister’s Office (@PakPMO) July 16, 2026
Iran responded by launching missiles and drones at US military installations in neighbouring countries, including a large-scale strike on a recently expanded American air base in Jordan.
The renewed conflict has once again disrupted shipping through the Strait of Hormuz—the world’s most critical maritime route for oil and gas exports—driving up global energy prices and raising concerns over international trade and energy security.
The Islamabad MoU was signed on June 18 by US President Donald Trump, Iranian President Masoud Pezeshkian, and Prime Minister Shehbaz Sharif, following Pakistan’s brokering of a ceasefire between Washington and Tehran.
PM directs authorities to remain prepared to address economic challenges
During the meeting, Prime Minister Shehbaz directed the relevant authorities to remain fully prepared to address any economic challenges arising from the evolving regional situation. He also commended the public for supporting the government’s austerity measures and fuel conservation campaign.
He noted that through a timely and effective government strategy, the fuel supply situation in the country has been managed in the best possible manner.
He said that the government has extended protection to the common man, motorcyclists, rickshaw drivers, and transporters, and that subsidies provided by the state had helped contain the impact of any increase in fuel prices.
The prime minister directed that, in coordination with provincial governments, strict action be taken against elements responsible for creating an artificial shortage of petroleum products in the market.
Also Read: Pakistan Urges Restraint amid US-Iran Tensions, Reaffirms Commitment to Regional Peace
The Prime Minister further said that as a result of the subsidy provided by the government, the effects of the increase in fuel prices have been effectively controlled.
PM Sharif added that there is a concern that the national economy may be affected in the future due to the negative impacts of escalating tensions in the region.
Pakistan Urges Restraint amid US-Iran Tensions
Earlier, Pakistan renewed its call for all parties to exercise maximum restraint and avoid any actions that could further undermine peace and stability amid renewed tensions between the United States and Iran.
Speaking at the weekly media briefing in Islamabad on Thursday, Foreign Office Spokesperson Tahir Andrabi said the Islamabad Memorandum of Understanding (MoU) remains an enduring framework for promoting peace, mutual respect, and shared prosperity.
Expressing deep concern over the renewed tensions between Iran and the United States, the FO spokesperson noted that Pakistan was closely monitoring the evolving regional situation and believes that negotiations remain the best way to address disputes.
“We express the hope for an early normalisation of the situation in the Strait of Hormuz and underscore the importance of ensuring the continued safety, security and freedom of maritime navigation,” he added.
