Pakistan PM Shehbaz Sharif says renewed tensions in West Asia could hit economy again

3 min readJul 17, 2026 11:47 AM IST

Pakistan PM Shehbaz Sharif warned that the escalating West Asia conflict could impact the economy as the US and Iran continue strikes. (File Photo)

Pakistan could be staring at another hit on its economy if the West Asia war escalates. Prime Minister Shehbaz Sharif said he is worried that the renewed conflict in West Asia could be a risk for Pakistan’s economy. The US said that they have successfully completed its latest major wave of strikes against Iran, marking the 6th consecutive night of US attacks.

Sharif chaired a meeting to review the impact of the recent tensions in the region and directed authorities to maintain full preparedness to tackle potential challenges. According to a statement by the PM Office, a report on austerity and cost-cutting measures was presented during the meeting.

It stated that the prime minister “directed that, given the prevailing uncertainty in the region, full preparedness must be maintained to tackle any potential challenges”.

Pakistan’s Prime Minister says economy may be affected

This is the second time that Pakistan’s Prime Minister has called for caution in managing resources since the war broke out in West Asia. He also thanked people for their support when the drive was launched in March. Sharif said the national economy is currently stable. The meeting stated that adequate reserves of petroleum products are available in accordance with national requirements, and their supply for the future has been ensured.

Shairf added that a comprehensive strategy would be formulated to ensure timely measures if needed. In a post on X, the Prime Minister’s office of Pakistan said 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.

In a post on X, the Prime Minister’s Office of Pakistan said that as a result of the subsidy provided by the government, the effects of the increase in fuel prices have been effectively controlled. He said, “Timely and effective government strategies ensured the optimal management of the country’s fuel supply situation. The government has provided protection to the common man, motorcyclists, rickshaw drivers, and transporters.  Just as the public extended its full support during the previous austerity drive, a culture of frugality must now be adopted at the national level.”

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

Sharif acknowledged the public’s “significant contribution” to the previous austerity drive and expressed his heartfelt gratitude for their support. The drive was launched in March following the conflict between the US and Iran, which began in late February.

What’s happening in West Asia?

Iran has refused any fresh round of talks as long as the US continued its attacks. Meanwhile, the US military said that its forces, including fighter jets, aerial drones and warships carried out precision strikes on dozens of Iranian military targets.

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Iran, too, launched missiles and drones targeting US military bases in neighbouring countries, including a recently expanded air base in Jordan, Tehran said. The Masoud Pezeshkian-led nation further claimed the Jordanian base had been used in a US strike on an Iranian children’s cancer hospital on Wednesday night.

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