Pakistan signed the agreement as a mediator.

The conflict has since continued with sporadic strikes and a US naval blockade of Iranian ports, while Iran has maintained control over traffic through the strategic waterway.

In his meeting with Pezeshkian, PM Shehbaz expressed “deep concern over the prolonged conflict and emphasised the need for restraint, de-escalation, and sustained diplomatic engagement to achieve lasting peace and stability in the region”, a statement by the Prime Minister’s Office (PMO) said.

“He also underscored the importance of implementing the Islamabad Memorandum of Understanding and reaffirmed Pakistan’s readiness to continue playing sincere and constructive role in support of regional peace and stability,” the statement added.

The two leaders discussed the evolving regional situation, with Pezeshkian appreciating Pakistan’s “principled diplomacy and concerted efforts for regional peace and security”, according to the statement.

“Underlining the importance of maintaining regular consultations and close coordination to address the prevailing challenges and seize the opportunities, the two sides agreed to work for regional peace, security, and prosperity,” it said.

Regarding bilateral ties, the two leaders reaffirmed the close and longstanding ties between Pakistan and Iran and underscored the need to further strengthen bilateral cooperation across all areas of mutual interest, it added.

“The Iranian President also underscored the enduring strength of Pakistan-Iran relations, rooted in shared history, culture, and faith, and reaffirmed Tehran’s strong desire to further deepen multifaceted cooperation,” it said.

The meeting took place on the sidelines of the 81st session of the United Nations General Assembly (UNGA) in New York.

Deputy Prime Minister and Foreign Minister Ishaq Dar, Defence Minister Khawaja Asif, and Special Assistant to the Prime Minister Tariq Fatemi were also present at the meeting, as well as Iranian Foreign Minister Abbas Araghchi.

PM Shehbaz and Pezeshkian had previously held a meeting in Kyrgyzstan, on the sidelines of the Shanghai Cooperation Organisation (SCO) Council of Heads of State meeting in August, during which they reaffirmed the close and longstanding ties between both countries.

At the same time, PM Shehbaz had also stressed the importance of restraint and sustained diplomatic engagement to achieve lasting peace and stability in the region amid the US-Iran conflict.

Thursday’s meeting with the Iranian president comes as Islamabad continues efforts to bring the United States and Iran back to the negotiating table regarding the war in the Middle East.

Pezeshkian on Wednesday struck a defiant tone speaking at the UN for the first time since Washington and Israel launched an all-out war on his country, vowing Tehran would never “bend at the knee”. He made no reference to the talks to resolve the stalled war in his steely speech.

However, the Iranian side earlier this week indicated its willingness to return to dialogue with the US to de-escalate tensions. The flexibility on the issue was indicated by the Iranian side in a meeting between Pezeshkian and Interior Minister Mohsin Naqvi during the latter’s visit to Tehran.

Pakistan, meanwhile, has remained engaged in efforts to keep the diplomatic channel open. Chief of Defence Forces and Chief of the Army Staff Field Marshal Asim Munir has used his contacts with the US administration, while Pakistani officials have made repeated visits to Tehran.

Diplomatic sources say Qatar is handling the immediate shuttle diplomacy between the US and Iran in New York, while Pakistan is working through a parallel channel with Tehran as regional efforts intensify to keep the latest diplomatic contacts from collapsing.

The distinction has emerged from reporting by US and international media on the renewed US-Iran contacts around the United Nations General Assembly, with Qatar and Pakistan both involved in efforts to keep communication open between Washington and Tehran.

PM Shehbaz is expected to address the UNGA on Friday.

The government on Thursday reduced the price of petrol by Rs0.84 per litre and that of high-speed diesel (HSD) by Rs2.63 per litre.

Following the revision, petrol will retail at Rs389.28 per litre while HSD will cost Rs412.12 per litre. The government continues to levy Rs114 per litre in taxes and duties on petrol and Rs100 per litre on diesel.

According to the Petroleum Division’s notification, the new prices will be applicable for Sept 25 (Friday).

The price of HSD has come down from a peak of Rs520.35 recorded on April 3. Its price had started rising from Rs281 per litre after the US-Iran war broke out on February 28.

The petrol price had peaked at Rs458.41 on April 3 after beginning its upward trajectory from Rs266 in the first week of March.

Meanwhile, the government has reintroduced a raft of austerity measures in response to rising fuel prices amid the ongoing Middle East conflict. Under these measures, markets are required to close by 9pm and fuel allocations for official vehicles has been cut by 50 per cent for three months.

On September 13, Prime Minister Shehbaz Sharif also announced a “relief scheme” for users of motorcycles, autos and vehicles of up to 800cc to “alleviate the burden” of rising global oil prices.

Previously, on July 17, Petroleum Minister Ali Pervaiz Malik announced that fuel prices would now be fixed on a daily basis due to fluctuations in international market prices following renewed hostilities between Iran and the US.

Prior to this, the government had been announcing weekly revisions to fuel prices since early March, alongside measures for the conservation of fuel amid possible oil supply disruptions due to the ongoing conflict in the Middle East. The federal government in April also announced targeted relief measures to provide subsidised fuel.

The petroleum minister stated that the cabinet and the prime minister had decided to give the Oil and Gas Regulatory Authority (Ogra) the responsibility of deciding fuel prices on a daily basis based on international market trends.

Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, and changes in its price affect the middle and lower-middle classes.

Similarly, changes in diesel prices also impact the public at large, as it is mainly used in the heavy transport sector, power plants and large generators.

Petrol and high-speed diesel (HSD) are the major revenue earners, with monthly sales of about 700,000 to 800,000 tonnes, compared to just 10,000 tonnes of monthly demand for kerosene.