Pakistan's Finance Minister Muhammad Aurangzeb said on Monday that the announcement of a peace deal between the United States and Iran is a significant development for the global economy and is expected to improve Pakistan's economic outlook.

Addressing virtually a ceremony held at the Pakistan Stock Exchange, the minister said the confidence reposed by the United States and Iran in Pakistan's leadership reflects the country's constructive diplomatic role.

Referring to the signing of the deal between the two countries later this week, Aurangzeb said the development carried encouraging implications for Pakistan's economy and for broader regional stability.

"Over the last three months, Pakistan had effectively navigated the first-order economic impact of the conflict and expressed confidence that the agreement would help mitigate concerns regarding secondary and tertiary economic effects that had earlier been anticipated," he said.

While noting that disruptions to energy infrastructure would require time to normalize fully, the Pakistani minister said the announcement nevertheless created a more positive outlook for economic activity and presented encouraging upside potential for the next fiscal year.