Now that both Pakistan and Iran have indicated they are taking steps towards de-escalation, it would be extremely worthwhile to build up on the peace process and carve up a lasting, effective line of action. Shattering years of goodwill and an increasing inclination towards building trade linkages, Iran’s decision to conduct airstrikes in Pakistani territory was condemned by one and all as a blatant violation of its sovereignty. Retaliatory strikes were carried out but with the pretence of a conciliatory statement issued by the Pakistan Foreign Office. On the heels of Pakistan expressing its commitment to maintaining peaceful relations with Iran and resolving any outstanding issues through dialogue, Iran’s Foreign Ministry spokesperson also emphasized the need for dialogue and called for a reduction in tensions between the two countries. To facilitate the de-escalation process, diplomatic engagements between Pakistan and Iran have been initiated. But sensing that high-level meetings won’t be able to defuse the tension, both states are carrying out confidence-building measures to promote peaceful coexistence. Beyond the current moment, the two countries would have to start addressing the menace of terrorism in its transnational, transboundary nature. By their decision to share intelligence and conduct joint patrols along the border, Pakistan and Iran, largely at the behest of international players, are trying to ensure such a distasteful episode does not occur again. But while the UN and China, among other neighbouring countries, have expressed their willingness to facilitate dialogue and assist in resolving the border dispute peacefully, it would do well for both Pakistan and Iran to remember that de-escalation truly lies in strengthened economic cooperation. By focusing on economic ties, they can build a foundation of mutual interests and promote a peaceful neighbourhood. At the end of the day, stability in the region is crucial for economic development, regional integration, and the well-being of the people living everywhere. *