Pakistan's role as Iran-US mediator fuels economic optimism

Pakistan's recent role in facilitating high-stakes diplomatic talks between Iran and the United States has elevated its international standing, though analysts question whether this newfound diplomatic capital can address the country's deep-seated economic challenges. Prime Minister Shehbaz Sharif and military chief Asim Munir participated in the negotiations, held last weekend in Buergenstock, Switzerland, which aimed to ease a conflict that had threatened global energy supplies and regional stability.

The breakthrough has drawn praise from multiple world leaders, including U.S. Vice President JD Vance, who thanked Islamabad for its efforts. Officials and analysts describe Pakistan's ability to engage with competing powers-including Washington, Tehran, Gulf states, Turkey, and China-as positioning the country as a potential bridge and stabilizing force. This "peace pivot" has raised hopes that diplomatic goodwill could translate into tangible economic benefits.

Supporters argue that improved international perception could attract foreign investment, expand trade opportunities, and foster financial cooperation. Specific possibilities mentioned by analysts include expanded trade...