ISLAMABAD (Digital Post) A new chapter has begun in Pak-Iran relations. Thanks to Pakistan’s effective diplomacy, the US and Iran have agreed to a 14-point memorandum of understanding. The ceasefire, the negotiations, and the agreement to address unresolved issues mark a historic achievement that has boosted Pakistan’s standing worldwide. By helping end the 110-day conflict between the US and Iran, Pakistan has contributed to global peace. Once considered isolated due to terrorism, economic challenges, and Indian propaganda, Pakistan’s diplomatic efforts are now being recognized internationally. After the memorandum was signed, world leaders, including UN Secretary General Antonio Guterres, praised Pakistan’s significant role. The phrase ‘Thank you, Pakistan’ is being heard around the world. These words were first spoken in the Iranian parliament to stop the war, and now US President Donald Trump, who calls himself a \u2018peacemaker\u2019, has also thanked Pakistan for its efforts in the Middle East. Previously, cities like Doha, Geneva, or other European capitals hosted major negotiations. For the first time in 50 years, delegations from Iran and the US came to Islamabad, putting the city in global headlines. This is why the agreement is known as the \u2018Islamabad Memorandum\u2019. On February 28, US and Israeli attacks on Iran triggered a war in the Middle East, causing thousands of deaths and disrupting global energy markets. There was a real risk that Saudi Arabia and other Gulf countries might retaliate, possibly leading to a wider conflict. As a mediator, Pakistan achieved several successes: securing a ceasefire, arranging talks in Islamabad, bringing Arab countries and Iran closer, and showing its influence on multiple fronts. Pakistan worked on two main goals at once: first, to secure an immediate ceasefire between the US and Iran, and second, to prevent any conflict between Iran and the Gulf countries.
\nPrime Minister Shahbaz Sharif and Field Marshal Asim Munir were deeply involved throughout the mediation process. There were many moments when it looked like the mission might fail, but despite quiet diplomatic efforts, many challenges, and fears of deadlock, Islamabad managed to keep the US and Iran talking.
\nThe US and Iran signed the \u2018Islamabad Memorandum\u2019. US President Donald Trump signed this digital memorandum in Paris while Masoud Pezhakian sat in Tehran. Prime Minister Shahbaz Sharif also signed and ratified this document in Islamabad as a mediator. After which, the two countries will now sit down together on the unresolved issues and try to reach a final agreement within 60 days. Pakistan is being given the title of \u2018sincere\u2019 and \u2018impartial mediator\u2019 in the international media due to Pakistan\u2019s extraordinary diplomatic success. The reason for this is that this war caused an energy crisis around the world and severely affected trade markets. But Pakistan was the only country that seemed to be motivated to stop the war, instead of personal interests. According to the agreement, if the global sanctions imposed on Iran are relaxed, Pakistan will also benefit directly.
\nAccording to the report, the volume of legal trade between Pakistan and Iran is about $ 2.3 billion, while the estimated illegal trade is much higher.
\nAn important meeting was held in Islamabad on June 18 between Pakistan\u2019s Minister for Investment Qaiser Ahmed Sheikh and Iranian Ambassador Reza Amiri Moqadam, in which both leaders reiterated their commitment to increase bilateral trade to $ 10 billion annually on an emergency basis. The history of Pak-Iran relations can be gauged from the fact that Iran was the first country to recognize the existence of Pakistan. The two countries share a border of about 900 kilometers, which starts from the common border point of Afghanistan, Iran, and Pakistan (Kuh Malik Siyah) in the north and goes to the Arabian Sea (Gulf of Oman) in the south. Pakistan spends a large part of its foreign exchange on importing petroleum products, including oil. To meet this need, Pakistan imports about 80 to 85 percent of its crude oil and petroleum products from Saudi Arabia, Qatar, and other Gulf countries; however, Iran can prove to be a cheap and closest alternative to meet Pakistan’s energy needs. Iran is one of the largest oil and gas producers in the world. Due to global sanctions, it trades with other countries through unconventional methods instead of direct trade. Iranian petrol and diesel are still smuggled into different parts of Pakistan, which are sold very cheaply. The commencement of free trade between the two countries can prevent smuggling and also save on expensive shipping costs.
\nA very important project already exists between the two countries in the form of the \u2018Pak-Iran Gas Pipeline\u2019. This project was started in 2009 during the PPP government. Iran had already completed its part of the pipeline, but due to US and international sanctions, the pipeline could not be built within Pakistan’s borders, and the project was stalled. If this pipeline is completed after the US sanctions are lifted, Pakistan will be able to get cheap natural gas from Iran instead of expensive LNG from Qatar, which will make it possible to overcome the gas crisis. Pakistan and Iran have established 6 joint border markets to provide employment to people living on both sides of the border and to prevent smuggling, which has now been decided to be expanded by both sides. Iranian goods are also available at many places in Pakistan’s Balochistan province and Karachi city, which are of good quality and are also cheap.
\nAfter the lifting of sanctions on Iran and the restoration of banking channels, direct trade routes could open up for Pakistani and Iranian traders, which could earn the government billions of rupees in tax and customs duty revenue. There are also many opportunities for partnership in the railway sector between Pakistan and Iran, which could prove to be a game-changer at the local and global levels. One of these projects is the Quetta-Taftan Line (ML-4). This track runs from Pakistan\u2019s Taftan border to the Iranian city of Zahedan.<\/p>\n
In the past, a regular passenger train ran on this track, which was extremely popular, especially among Pakistani pilgrims and border traders going to Iran and Iraq, but due to security risks and the deteriorating condition of the track, this service was stopped in 2008.<\/p>\n
Recently, Pakistan and Iran have decided to revive this railway route after 18 years. If this route becomes fully operational, it could provide a trade corridor and boost land trade between Pakistan, Iran, Turkey, and Central Asian countries. A historic cargo train project was launched between Pakistan, Iran, and Turkey in August 2009, which was named the Islamabad Tehran Istanbul (ITI) train. This train covers a long distance of about 6,500 kilometers from Islamabad to Istanbul in 11 to 15 days. The same distance is completed by sea in about 21 to 25 days. About 1,900 kilometers of this track is in Pakistan, 2,600 kilometers in Iran, and 2,000 kilometers in Turkey. From Islamabad, the train enters Iran via Quetta and Taftan and reaches Istanbul via Tehran. The ITI train made its first successful journey in 2009, but after that, due to some technical and security reasons, this project also fell into disrepair. An attempt was made to revive the service in December 2021, and the train successfully reached Ankara via Iran, carrying commercial goods from Pakistan. In recent years, the world has seen a new face of Islamabad, thanks to which Pakistan has become the focus and center of attention of the world. Before assessing what opportunities Pakistan has to reap economic benefits after the successful mediation in the Iran-US talks, it is important to look back. Pakistan\u2019s foreign policy has long been plagued by challenges that have severely affected its international reputation. Due to the effects of the Afghan war, border and economic issues, Pakistan has faced many problems and accusations at the global level. This included the involvement of Indian propaganda to a large extent. Despite all India\u2019s efforts and propaganda, Pakistan-US relations are currently at the highest level in history. Every speech of President Donald Trump is incomplete without praising Prime Minister Shahbaz Sharif and Field Marshal Asim Munir. Before Donald Trump became President for the second time, Pakistan-US relations had been very cold and volatile during the Joe Biden administration. In August 2021, when the US military was preparing to withdraw from Afghanistan, a suicide bombing took place at the Abbey Gate of Kabul Airport, killing 13 US soldiers and 170 Afghan civilians on the spot. After taking the oath of office for the second time in January 2025, when President Trump was busy preparing to address Congress. Pakistani security agencies arrested the most wanted terrorist and the mastermind of the \u2018Abbeygate scandal\u2019, an Afghan national named Sharifullah, from the Pak-Afghan border area and handed him over to the US authorities after completing the legal requirements. The following month, when President Trump gave his first address to the US Congress, in the same speech, he praised and specially thanked Pakistan for helping in the arrest of the mastermind of the Abbeygate incident. These were rare and complimentary words spoken publicly by an American president for Pakistan after a long time, and this is where Pakistan\u2019s journey to a new identity at the international level began. As soon as President Trump came to power, under the slogan of \u2018Make America Great Again\u2019, he imposed heavy taxes on the products of various countries, including China, which controls more than 90% of the world\u2019s rare earth mining. At a time when the United States urgently needed countries where these minerals were available. Pakistan took advantage of this opportunity to offer investment to the world and opened the doors to its trillions of dollars of mineral treasures. In September 2025, a historic and major agreement worth $500 million ($500 million was signed between Pakistan and the United States in the mineral sector. Pakistan\u2019s biggest achievement is that instead of becoming part of the trade war between the two superpowers, it presented itself as a neutral alternative and also kept its long-time friend China in confidence on this issue. Further progress is also expected between the two countries, especially in the areas of minerals (critical minerals), cryptocurrency, and counter-terrorism, for which the term \u20183Cs\u2019 has been used. After this progress, Pakistan is also being seen as the best strategic partner of the United States after proving its mettle in the field of diplomacy and counter-terrorism. Overall, if the final agreement between Iran and the United States is reached, a new era seems certain to begin between Islamabad and Tehran. This may include land links between the two countries, as well as trade, culture, and public relations projects. Iranian President Masoud Peshkeshian has also accepted Prime Minister Shahbaz Sharif’s invitation to visit Pakistan and expressed his determination to come to Islamabad to thank the state of Pakistan and its people for Pakistan’s role in ending the war.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD (Digital Post) A new chapter has begun in Pak-Iran relations. Thanks to Pakistan’s effective diplomacy, the US and Iran have agreed to a 14-point memorandum of understanding. The ceasefire, the negotiations, and the agreement to address unresolved issues mark a historic achievement that has boosted Pakistan’s standing worldwide. By helping end the 110-day conflict […]<\/p>\n","protected":false},"author":4,"featured_media":56130,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"categories":[41,37],"tags":[],"class_list":["post-56154","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-islamabad","category-national"],"_links":{"self":[{"href":"https:\/\/dailydigitalposts.com\/index.php?rest_route=\/wp\/v2\/posts\/56154","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dailydigitalposts.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dailydigitalposts.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dailydigitalposts.com\/index.php?rest_route=\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/dailydigitalposts.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=56154"}],"version-history":[{"count":1,"href":"https:\/\/dailydigitalposts.com\/index.php?rest_route=\/wp\/v2\/posts\/56154\/revisions"}],"predecessor-version":[{"id":56155,"href":"https:\/\/dailydigitalposts.com\/index.php?rest_route=\/wp\/v2\/posts\/56154\/revisions\/56155"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dailydigitalposts.com\/index.php?rest_route=\/wp\/v2\/media\/56130"}],"wp:attachment":[{"href":"https:\/\/dailydigitalposts.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=56154"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dailydigitalposts.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=56154"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dailydigitalposts.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=56154"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}