Pakistan Urges Financial Institutions to Engage in Iran's Reconstruction

Pakistan’s Ambassador to Indonesia, Zahid Hafeez Chaudhri, has stated that various financial institutions must play a role in the reconstruction of Iran if peace with the United States is successfully achieved. The statement was made by Ambassador Chaudhri in response to a question from ANTARA regarding a planned $300 billion investment fund for Iran, which was previously disclosed by the Qatari Foreign Minister. “International institutions, including financial institutions and development finance institutions, must also step forward and take an active role in the reconstruction and rebuilding of areas destroyed by Israel during the war,” he said at the Pakistani Embassy in Jakarta on Friday. According to Chaudhri, the current main priority is ensuring that peace is truly realised. He said the negotiation process is still ongoing, showing positive developments and moving towards a resolution. Once peace is achieved, he continued, discussions regarding the reconstruction and rebuilding phase of Iran can begin. “After peace is successfully realised, or even concurrently, discussions on the reconstruction and rebuilding of Palestine need to be carried out immediately. All countries must play their role,” he stated. The proposed funding mechanism is related to Article 6 of the Islamabad Memorandum of Understanding between the United States and Iran, which aims to end regional hostilities. Under these provisions, the United States commits, alongside regional partners, to establishing an agreed final programme worth at least $300 billion for the reconstruction and economic development of Iran. The memorandum states that the implementation mechanism for the plan will be finalised as part of the final agreement within 60 days, while the United States will provide all necessary approvals, exemptions, and licences for related financial transactions. Among the memorandum’s provisions is the lifting of the US naval blockade on Iran and the reopening of the strategic Strait of Hormuz for global energy supplies.