In a statement, the prime minister said preparations were underway for the agreement to be signed electronically rather than through a traditional ceremony, describing the emerging accord as a historic opportunity that could pave the way for lasting regional peace.
PM Shehbaz noted that while the agreement may be concluded soon, technical-level negotiations would continue next week to address implementation details and broader diplomatic issues.
The development comes amid growing indications from Tehran and Washington that a framework for peace is close to being finalised. Iranian Foreign Minister Abbas Araghchi said a comprehensive understanding between the two countries had "never been closer" and suggested that the proposed arrangement could extend beyond bilateral concerns to include wider regional issues.
According to reports, the draft framework includes provisions related to the reopening of the strategically vital Strait of Hormuz, the easing of certain US restrictions on Iran, and future negotiations concerning Iran s nuclear programme. However, Araghchi stressed that discussions on nuclear matters would only begin after initial commitments under the agreement had been implemented.
US officials have acknowledged aspects of the proposed framework but have maintained that any economic relief for Iran would remain conditional on Tehran fulfilling its obligations. This suggests that key differences between the two sides have yet to be fully resolved.
One of the major sticking points reportedly concerns the agreement s regional scope. While Washington is said to favour limiting the deal to core US-Iran issues, Tehran has pushed for the inclusion of matters relating to Lebanon, including efforts to end hostilities involving Israel and Hezbollah.
The diplomatic efforts are unfolding against a backdrop of continued regional instability. Lebanese state media has reported fresh Israeli airstrikes in southern Lebanon, with evacuation orders affecting approximately 20 locations. The developments have raised concerns that renewed military escalation could jeopardise ongoing peace efforts.
The conflict, which intensified following US and Israeli strikes on Iran on February 28, triggered retaliatory attacks by Tehran against Israel and US-aligned interests in the Gulf region. Tensions also disrupted activity in the Strait of Hormuz, one of the world s most important energy transit routes.
Although a ceasefire was reached in April, intermittent exchanges of fire have continued, including fresh strikes this week that have underscored the fragility of the truce.
US President Donald Trump said he had cancelled planned military action against Iran because negotiators were close to securing what he described as a "wonderful deal." He also rejected reports published by Iranian media regarding a purported 14-point agreement, insisting that those reports did not accurately reflect the terms under discussion.
Iranian officials have acknowledged that discussions are still ongoing and that internal approval processes remain incomplete. Araghchi said the matter was still under consideration by Iran s national security leadership and that no final decision had yet been taken.
He added that if the agreement receives formal approval, it is expected to be signed electronically, marking an unconventional but symbolic conclusion to months of high-stakes diplomacy.
