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Pakistan Tightens Austerity and Pushes Gulf De‑Escalation as Fuel Risks Grow

Diplomatic outreach seeks to ease price shocks.

Overview

  • Deputy Prime Minister Ishaq Dar spoke with Saudi Foreign Minister Prince Faisal bin Farhan to press for de‑escalation and promote the PakistanChina five‑point peace plan.
  • The prime minister’s high‑level meeting on Thursday asked provinces to share fuel subsidy costs and to pause low‑priority projects to redirect funds to public relief.
  • Officials said Iran approved transit for 20 Pakistan‑flagged ships through the Strait of Hormuz, and two vessels have already crossed after coordinated efforts by Islamabad.
  • The government is offering targeted weekly petroleum subsidies and enforcing cuts to official fuel use to keep farms, buses, and freight moving as global prices rise.
  • Finance Minister Muhammad Aurangzeb met the US chargé d’affaires and top business forums to seek investment, explain energy pricing steps, and safeguard macro stability.