As the architect of peace between Washington and Tehran, can Pakistan finally transform its diplomatic success into an economic miracle?

Pakistan's role in mediating the peace agreement in the Iran-Iraq War has earned it rare international diplomatic recognition. While Islamabad is being praised for its contribution to easing a crisis that threatened to destabilize the global economy, many observers are now questioning the concrete economic benefits the country might reap.

Pakistani Prime Minister Shehbaz Sharif and Army Chief of Staff Field Marshal Asim Munir recently participated in talks between Iranian and American officials in Switzerland. These negotiations were the culmination of several months of diplomatic efforts led by Islamabad on one of the most sensitive geopolitical issues of the moment.

According to several analysts, this involvement has strengthened Pakistan's international credibility. The country could now benefit from increased confidence from foreign investors and its international partners. Pakistani officials believe that an image associated with stability and peace could encourage investment in infrastructure, new technologies, and other strategic sectors.

Some experts also mention the possibility of closer economic ties with the United States, the Gulf states, Turkey, and China. A potential lifting of sanctions against Iran could also pave the way for increased trade between Islamabad and Tehran, particularly across their shared border in the Balochistan region.

However, many economists caution against excessive expectations. They argue that diplomatic gains alone will not be enough to resolve the structural problems that have long hampered Pakistan's development. The country continues to face major challenges such as a limited tax base, high levels of social inequality, weak export competitiveness, and a recurring reliance on aid from the International Monetary Fund.

This situation reminds some observers of the period following the attacks of September 11, 2001. At that time, closer ties with Washington allowed Pakistan to obtain debt relief, international financial support, and significant American aid. However, the reforms necessary for a lasting transformation of the economy were not implemented.

For many analysts, the difference today is that Pakistan is perceived as a mediator rather than a party involved in a conflict. This position gives it greater diplomatic leverage with several regional and international powers. But even the most optimistic experts acknowledge that the real key to economic success lies in internal reforms rather than diplomatic rewards.

As former Finance Minister Miftah Ismail summarized, the international prestige acquired by Islamabad will not, on its own, be enough to resolve the country's economic difficulties. Without a profound transformation of its economic model, Pakistan risks continuing to depend on external financial support despite its diplomatic successes.