ISLAMABAD: Pakistan’s diplomatic efforts towards acting as a facilitator between the USA and Iran have gained global significance in light of the current tensions between the two countries.
According to economist Atif Mian, Pakistan relied on secret diplomacy when there was significant uncertainty in the region. This caused lower tension. It helped improve the risk-taking attitude around the world and led to stock market gains.
Capital markets were already expecting conflicts between India and Pakistan. here were stock market gains on major indices such as S&P 500.
As stated by Atif Mian, a small shift in geopolitical events can impact greatly global capital markets’ valuations. He estimates that a de-escalation in risk perception could have boosted the value of global equities by trillions of dollars.
He stated that Pakistan’s diplomatic involvement in the crucial period when the tensions were peaking was indicative of its facilitative role, as Islamabad allegedly facilitated or hosted dialogues between the relevant parties to reduce tensions and promote dialogue.
According to analysts, this marks a new phase in Pakistan’s foreign policy approach. It is expected that due to constant involvement, Pakistan would rise above its former standing in diplomatic matters in international politics.
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Nonetheless, there is a word of caution regarding the effect of this particular strategy as it would be important to have consistent engagement with the nations involved and remain neutral as a result of competing regional interests.
According to Mian Atif, the importance of Pakistan’s Role in Ceasefire does not limit itself to the geopolitical level but impacts even the mood of the world economy. He says that the market is quick to respond to stability, and diplomatic success may increase its confidence worldwide.
However, he argues that constant diplomacy can help Pakistan gain more ground on the world stage by utilizing it to pursue peace and cooperation.Diplomacy when done effectively helps to develop trust within international relations and promote cooperation.
The role may not necessarily go beyond geopolitical concerns in the future.
