By Zulqernain
As Washington and Tehran move closer to a possible diplomatic breakthrough, Pakistan stands to gain far more than many of its regional peers.
For Islamabad, a US-Iran détente could translate into cheaper oil, access to Iranian gas, expanded trade, stronger regional connectivity and a more stable neighbourhood — benefits that could provide a much-needed boost to an economy struggling with high energy costs and sluggish growth.
The most immediate gain would likely come through energy markets.
Any reduction in tensions would lower the risk of disruption in the Strait of Hormuz, helping stabilize global oil prices and easing Pakistan’s hefty import bill.
But the bigger prize remains the long-stalled Iran-Pakistan gas pipeline.
For years, the project has remained trapped between Pakistan’s energy needs and US sanctions on Tehran.
A meaningful thaw in relations could revive hopes of importing Iranian gas, potentially easing chronic shortages and reducing reliance on costly fuel imports.
A peace deal could also unlock trade opportunities. Despite sharing a long border, Pakistan and Iran conduct far less trade than their potential allows.
Fewer restrictions and greater stability could boost commerce, particularly in border regions where economic activity has long been constrained by sanctions and security concerns.
The geopolitical implications may be equally significant.
A less isolated Iran would strengthen prospects for regional transport and energy corridors linking South Asia, Central Asia and the Middle East.
For Pakistan, which has long sought to position itself as a regional connectivity hub, such a shift could breathe new life into ambitions tied to CPEC and wider regional integration.
Diplomatically, Islamabad could also emerge with enhanced relevance.
Having maintained working ties with both Washington and Tehran, Pakistan would be well placed to benefit from a less polarized regional environment.
Yet expectations should remain realistic. A peace agreement alone will not transform Pakistan’s economy overnight, nor will it automatically revive stalled projects. Sanctions relief, investment decisions and political will remain critical variables.
Still, if the current diplomatic momentum produces a lasting breakthrough, Pakistan could finally begin reaping benefits from opportunities that have remained beyond reach for more than two decades.
For a country searching for economic breathing space, peace between the United States and Iran may prove to be one of the most consequential developments beyond its borders.
