What does Pakistan stand to gain from helping broker the US-Iran deal?
Summary
Pakistan has played a key role in helping the United States and Iran start talks toward a peace agreement. Pakistani leaders and military officials have worked closely with US and Iranian officials to facilitate negotiations. While diplomacy has improved, Pakistan’s economic benefits from the deal remain uncertain.Key Facts
- US Vice President JD Vance praised Pakistani military chief Asim Munir for his leadership in helping start US-Iran talks.
- Iranian President Masoud Pezeshkian visited Pakistan to thank them for their role in bringing the two countries together.
- Pakistan has hosted talks and managed risks related to opening trade routes to Iran amid Gulf region tensions.
- The US and Iran reached a peace framework on June 18, followed by ongoing 60-day negotiations.
- Pakistan’s economy grew by 3.7% last year, supported by increased remittances and a smaller fiscal deficit.
- Economic experts warn Pakistan’s gains may be limited mainly to lower energy import costs if trade routes reopen.
- Pakistan is still working with the International Monetary Fund (IMF) on a $7 billion loan program approved in 2024.
- Past cooperation with the US has brought debt relief but no lasting fixes to Pakistan’s economic problems like low exports and a small tax base.
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