Pakistan's business community hopes for an early end to the Iran war to resume trade and energy cooperation.

According to a New York Times report, the ongoing escalation of conflict in Iran has put immense pressure on Pakistan’s business community. With the collapse of the ceasefire agreement, large quantities of goods bound for Iran, including mangoes and textiles, have been stranded at the border, with some fruits already spoiled. Business leaders noted that peace would not only bring down energy prices but also give Pakistan the chance to fully tap the trade potential along its roughly 900-kilometer border with Iran. Pakistan’s economy has remained under pressure due to factors including strained relations with India and Afghanistan, and the business community had originally hoped to ease its woes by deepening trade ties with Iran. However, long-standing U.S. sanctions on Iran have severely restricted bilateral bank settlements, energy cooperation, and trade, forcing much of the commerce to rely on barter, third-country transit, or smuggling channels. Pakistan’s business and industrial circles believe that if sanctions on Iran are relaxed in the future, bilateral trade volume is expected to expand significantly. Pakistan can export rice, textiles, pharmaceuticals, and medical equipment to Iran, while Iran can supply Pakistan with cheaper oil and gas, and create opportunities for Pakistani companies to participate in Iran’s post-war reconstruction. Currently, several entrepreneurs said they will remain on the sidelines until the situation becomes clearer.