KARACHI: Mian Zahid Hussain, President of the Pakistan Businessmen and Intellectuals Forum, has hailed the recent diplomatic discussions in Islamabad as a significant achievement for Pakistan's foreign policy, casting the nation as a pivotal "bridge for peace" amid escalating global economic challenges.
According to Pakistan Businessmen and Intellectuals Forum, the 2026 conflict between Iran and the United States, which led to a dramatic increase in oil prices exceeding $120 per barrel after the Strait of Hormuz was closed on March 4, has caused an unprecedented disruption in energy supply. The global oil market has been hit by a loss of 624 million barrels over 52 days, with the Gulf Cooperation Council experiencing a production drop of 12 million barrels per day. The Islamabad Talks, conducted on April 11-12, marked the first high-level engagement between the U.S. and Iran since 1979. While these negotiations did not conclude with a Memorandum of Understanding, they established a crucial two-week ceasefire, averting a regional crisis that could have severely impacted global trade.
Mian Zahid Hussain stated that Pakistan has adeptly maintained "limited alignment," preserving official neutrality while safeguarding its economic interests. The conflict has severely tested Pakistan's energy security, reducing LNG shipments significantly. Domestically, petrol prices in Pakistan surged to a historic Rs458.41 per litre, prompting the government to adopt measures like a four-day workweek and emergency fuel rationing. The business community commends the Prime Minister's "5-point initiative," stressing the importance of keeping global energy corridors, such as the Strait of Hormuz, open for trade.
Mian Zahid Hussain noted that ongoing engagement is crucial for economic recovery. The potential trade deficit for Pakistan could reach a record $41.8 billion if hostilities continue, with each $10 rise in oil prices adding $1.5-$2 billion to the import bill. Additionally, the IMF's GDP growth downgrade for the Middle East poses risks to Pakistani remittances and exports to GCC countries.
Mian Zahid Hussain highlighted that while the naval blockade continues to impact maritime insurance and shipping costs, the "Islamabad Spirit" presents hope. He called on the international community to support further talks, emphasizing the importance of unfreezing Iranian assets and conditional sanctions relief to restore global supply chains. A permanent resolution is necessary to stabilize the Pakistani rupee and shield citizens from anticipated hyper-inflation.
The post Mian Zahid Hussain Acknowledges Islamabad Talks as Crucial for Global Stability, Advocates for Permanent Ceasefire appeared first on Pakistan Business News.