PAKISTAN’S internal problems, such as political unrest, economic instability and external militancy, have been the world’s primary focus for decades.
Yet, in a stunning reversal of narrative, Islamabad has emerged as the unlikely but indispensable stage for one of the most consequential diplomatic engagements of the decade: direct talks between the United States and Iran. The roar of threats that once defined the Gulf´s recent standoff has been mulled in the peace and calm of the beautiful Islamabad, which has been secured for the most important talks in decades. This armistice alters Pakistan’s global standing, presenting a rare opportunity to leverage its established trust and unique geographic position to emerge as a leader in peace and mediation. The risks are exceedingly high and the benefits, if managed effectively, might alter nation’s fate.
The ongoing conversations, initiated following weeks of intense backchannel diplomacy orchestrated by Prime Minister Shehbaz Sharif and Field Marshal Syed Asim Munir, exemplify a masterclass in strategic statecraft. When tensions between the United States and Iran threatened to ignite a regional war with devastating consequences for global energy supplies, Pakistan stepped into the void. leveraging its long-standing ties with Tehran as a neighbour and its strategic dialogue with Washington as a security partner, Islamabad proposed a neutral venue. Crucially, both sides accepted. The resulting “Islamabad Accord”, a ten-point framework that secured a preliminary ceasefire and paved the way for delegation-level talks, has been praised by the United Nations and the European Union. Pakistan has gained tremendous political and economic influence and potential by becoming an important ally of two hostile states.
This achievement should strengthen Pakistan’s diplomatic clout and inspire policymakers to keep capitalizing on these alliances. Stable energy prices significantly facilitate Pakistan’s economic recovery in the Gulf and the ensuing goodwill may be leveraged to bolster Pakistan’s national security objectives, including border management and counterterrorism collaboration.
Nevertheless, the benefits go beyond only financial ones. The successful mediation of the most volatile dispute has greatly improved its global status and dismantled years of negative narratives. Anwar Ibrahim, the Prime Minister of Malaysia, praised Pakistan’s “tireless and courageous diplomacy” and Western observers called it one of Islamabad’s greatest diplomatic victories in recent memory. The Atlantic Council’s Michael Kugelman noted that Pakistan is now being seen not as a problem state but as a solution provider. The Pakistani diaspora is experiencing a surge of pride. Pakistanis living abroad are brazenly showing off their green passports on social media, a symbol of a country that has succeeded beyond anyone’s wildest dreams.
What makes Pakistan’s position truly extraordinary is that it enjoys the trust not only of the United States and Iran but also of China and Russia. Islamabad has carefully balanced its relationships with all major powers. Joining China’s new International Organization for Mediation and wholeheartedly supporting the China-Pakistan Economic Corridor, it supports Beijing’s objective of peacefully settling issues. Consequently, Pakistan has been advocating for the development of strategic collaboration between China and Russia through the Shanghai Cooperation Organization. Following its acquisition of support from the SCO group and Western nations, Pakistan has emerged as a reliable and autonomous ally in the pursuit of global peace. The diplomatic advantage of this unique position of trust is held by a small number of nations.
Pakistan’s strategic location, close to three continents, South Asia, Central Asia and the Middle East, makes it an ideal candidate for conflict resolution. To become a global peace hub, the nation must have a robust and widely recognized system of arbitration laws. Pakistan’s progress is reassuring. This is the time we must have the updated Arbitration Act, which should supersede the Act of 1940. The proposed Arbitration Act of 2024 aims to establish a more uniform and efficient framework for resolving international business disputes in Pakistan and it must align with the UNCITRAL Model Law. Once implemented, this state-of-the-art legal framework will put Pakistan on an equal footing with well-established centres such as Doha, Qatar.
This is not a distant dream but an imminent possibility. Moving forward requires a methodical, long-term plan. As a first step, Pakistan has to create a permanent “Islamabad Centre for Peace and Mediation,” a neutral space and secretariat for future negotiations, so that the future round of talks may be formalized. And secondly, any centre for conflict settlement needs a contemporary legal framework, which is why the government should make passing the new Arbitration Act of 2024 a top priority. Third, Pakistan should launch a proactive diplomatic offensive, engaging the United Nations, the European Union and the Shanghai Cooperation Organization to market its new legal and institutional capacity. Offering its good offices for other simmering disputes, from Central Asian water rights to trade disagreements in South Asia, will strengthen its reputation. Finally, the government should leverage the pride felt by overseas Pakistanis by establishing a global peace council of prominent expatriates to act as ambassadors for this new role, attracting foreign direct investment into the country’s legal, hospitality and conference sectors. The negotiations underway in Islamabad are not merely about an Iran-US deal. They are the first chapter in Pakistan’s rise as the world’s indispensable peace hub and the time to act is now.
—The writer is an international law expert and an internationally accredited arbitrator and mediator.
