With global economies teetering on the brink of hyper-inflation and collapse following the Iran-US conflict, Mian Zahid Hussain, President of the Pakistan Businessmen and Intellectuals Forum, has vehemently urged for a permanent ceasefire to secure international stability and prevent further economic devastation. He highlighted Pakistan”s pivotal role as a “bridge for peace” amid the crisis.
According to a statement today, the 2026 Iran-US confrontation, which led to oil prices exceeding $120 per barrel after the Strait of Hormuz closure on 4th March, precipitated an unprecedented energy supply disruption. This crisis, resulting in a global oil market deficit of 624 million barrels over 52 days and a 12 million barrels per day production slump in the Gulf Cooperation Council (GCC), had propelled the world towards a 1970s-esque period of stagflation. Mr Hussain underscored the Islamabad discussions, held on 11th-12th April at the Serena Hotel, as the first direct, high-level interaction between Washington and Tehran since 1979. Although the 21-hour negotiations did not culminate in a final Memorandum of Understanding, they successfully secured a crucial two-week cessation of hostilities, thereby averting a wider regional conflict that would have crippled international commerce.
Pakistan, according to Mr Hussain, adopted a nuanced “limited alignment” stance, upholding official neutrality while safeguarding its national economic priorities. The conflict severely strained Pakistan”s energy security, with liquefied natural gas (LNG) deliveries plummeting from twelve in January to merely two in March. Domestically, the repercussions were profound; petrol prices surged to an unprecedented Rs458.41 per litre in early April, prompting the government to institute a four-day workweek and emergency fuel rationing. The business sector has lauded the Prime Minister’s “5-point initiative,” which stresses the imperative for vital global energy arteries, such as the Strait of Hormuz – responsible for 20% of the world”s oil transit – to remain unimpeded by military obstructions.
Sustained diplomatic engagement, Mr Hussain asserted, represents the sole feasible route to economic recuperation. For Pakistan, the potential losses are substantial. Should hostilities persist, the trade deficit is forecast to reach a staggering $41.8 billion. Each $10 surge in crude oil prices is anticipated to inflate the national import bill by an additional $1.5-$2 billion. Moreover, with the International Monetary Fund (IMF) revising down Middle East GDP growth to 1.1%, Pakistan faces a prospective decrease in remittances and a $2 billion reduction in exports to Gulf Cooperation Council nations.
Despite the ongoing strain on maritime insurance and shipping expenses due to the naval blockade enacted on 13th April, Mr Hussain underscored the “Islamabad Spirit” as a beacon of optimism. He implored the global community to champion a second round of negotiations, highlighting that the successful release of Iranian funds and conditional easing of sanctions are paramount to re-establishing the international supply chain. A lasting resolution remains the only means to stabilise the Pakistani rupee and shield ordinary citizens from the hyper-inflation predicted by financial analysts.