Pakistan After the Ceasefire: Gains, Vulnerabilities, and the Policy Agenda

Nasir Iqbal and Shahzada M. Naeem Nawaz
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Nasir Iqbal: Pakistan Institute of Development Economics, Islamabad
Shahzada M. Naeem Nawaz: Pakistan Institute of Development Economics, Islamabad

No 2026:59, PIDE Policy View Point from Pakistan Institute of Development Economics

Abstract: EXECUTIVE SUMMARY: Pakistan facilitated the US-Iran ceasefire of 8 April 2026 and was cited by President Trump personally. Islamabad continues to host negotiations. The 45-day conflict imposed an estimated $4-8 billion in direct economic losses on Pakistan, pushed 4-7 million additional people below the poverty line, and raised food insecurity by 5-12 million, all without Pakistan choosing sides or firing a shot. The ceasefire reduces the forward risk. It does not reverse the damage already absorbed. Five actions that require political authorization at the highest level.

Pages: 14 pages
Date: 2026
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