Pakistan Helps Broker Iran Peace Deal in Swiss Talks

Pakistan's prime minister and army chief took part in weekend talks in Switzerland that produced a peace agreement between Iran and the U.S., ending months of negotiations that involved several world leaders. The meetings took place at the Buergenstock Resort near Stansstad, Switzerland.

A photograph released by Reuters showed the U.S. vice president greeting Pakistan's army chief before the final sessions.

Both sides and other governments credited Pakistan with helping prevent a prolonged closure of the Strait of Hormuz that could have cut global oil supplies. Officials said the breakthrough lifted Pakistan's standing and could open doors to new investment.

Pakistan's economy has long faced cycles of rapid growth followed by sharp downturns. The government is aiming for 4.0 percent growth and 8.2 percent inflation in the fiscal year that begins in July, compared with 3.7 percent growth and 6.7 percent average inflation in the year now ending.

Analysts noted that past alignment with Washington after 2001 brought debt relief and renewed IMF support, yet structural problems remained. They said the current situation differs because Pakistan is viewed as a peacemaker rather than a frontline participant in conflict.

A former finance minister said the prestige gained from the talks would not reduce high external repayments or weak exports that keep the country reliant on IMF programs. He added that lasting improvement would require domestic reforms.

“Our house is in such disorder that foreigners can't really help us unless we help ourselves.”