Can Pakistan’s diplomatic triumph help the economy?

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For months, Pakistan’s economy has been gripped by a storm, this time not of its own making. The conflict in the Middle East sent oil and gas prices soaring, disrupted supply chains through the Strait of Hormuz, and pushed inflation into double digits. Islamabad’s survival strategy during this regional conflict has been to play the role of honest broker, helping to mediate a ceasefire. That diplomatic achievement is historic.

Regional peace creates economic potential, but potential must be converted into tangible gains through sound policy and execution. The question now is how Pakistan translates its diplomatic moment into durable gains by deepening engagement with economies in the region.

The economic cost of conflict has been felt by every household, yet Pakistan’s macroeconomic fundamentals have held, with the IMF program remaining on track. De-escalation works through multiple channels: lowering shipping and insurance costs, restoring supply chain predictability, and improving investor sentiment. For Pakistan, an oil and gas importer with deep Gulf linkages, these channels matter significantly.

Pakistan has demonstrated it can deliver regional peace, but the peace dividend is not automatic. The next 90 days will determine whether this diplomatic achievement becomes an economic turning point or a missed opportunity Dr. Vaqar Ahmed

Pakistan has demonstrated it can deliver regional peace, but the peace dividend is not automatic. The next 90 days will determine whether this diplomatic achievement becomes........

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