Islamabad played a key role in arranging the peace deal between Saudi Arabia and Iran, Pakistan's Foreign Ministry said over the weekend.
"It is obvious that this [Saudi-Iran] agreement is a result of the mediation efforts of China and the constructive talks that place as a result of which the two sides were able to resolve their differences," Pakistan Foreign Office spokeswoman Mumtaz Zahra Baloch told reporters in Islamabad.
"We welcome this development. Pakistan - like several other countries and friends of both Iran and Saudi Arabia - played its part in facilitating the dialogue," she added.
Regional rivals Saudi Arabia and Iran renewed their ties after seven years of bitter relations, including a stand-off over the Saudi-led military campaign in Yemen. Although Riyadh is supporting the country's internationally recognized government, Tehran is aiding Yemen's Houthi rebels.
As part of the deal, Iran has halted shipments of arms and ammunition to the Houthis.
"After the talks, the Islamic Republic of Iran and the Kingdom of Saudi Arabia have agreed to resume diplomatic relations and reopen embassies and missions within two months," the two countries said in a joint statement.
The kingdom severed diplomatic relations with Iran after violent protesters attacked the Saudi embassy and its consulate in Tehran and Mashhad in 2016. Petrol bombs were also hurled at Saudi diplomatic missions while the embassy was set alight. This came after Saudi authorities executed a prominent Shiite cleric Nimr al-Nimr.
Since then relations between the two regional powerhouses remained frosty before Beijing brought them together to negotiate a deal.