It should be noted that the word 'Pakistan' is not actually used in Iqbal's presidential address. Nonetheless, whatever implications and effects it had are better seen as part of a longer trend in the anti-colonial movement in British India.

Breaking down the speech, a major concept operating in it is communalism, the idea that a religious community is also a political one, and that membership in it precludes membership in any other political community, such as a national one:

Islam, regarded as an ethical ideal plus a certain kind of polity – by which expression I mean a social structure regulated by a legal system and animated by a specific ethical ideal – has been the chief formative factor in the life-history of the Muslims of India... What I mean to say is that Muslim society, with its remarkable homogeneity and inner unity, has grown to be what it is, under the pressure of the laws and institutions associated with the culture of Islam. (line 1a)

and

To address this session of the All-India Muslim League you have selected a man who is not despaired of Islam as a living force for freeing the outlook of man from its geographical limitations, who believes that religion is a power of the utmost importance in the life of individuals as well as States, and finally who believes that Islam is itself Destiny and will not suffer a destiny. (line 1f, emphasis in original)

Communalism has to be seen through both a religious and a political lens. A major factor in Islamic communalism was pan-Islamism, which in the late 19^th century positioned Muslims everywhere as a single community united under the civil and religious authority of the ruler of the Ottoman Empire. Important for its growth in British India was the presence of Jamal al-Din al-Afghani, a leading pan-Islamic thinker, from 1879 to 1882. In 1882, he wrote Refutation of the Materialists, a text directed against the pro-British tilt in the reformist programs of Sayyid Ahmad Khan, a chief figure in the Aligarh Movement, with a key point being that Islam should be the source of political identity for Muslims.

Other important events that led up to Iqbal's speech were the Aligarh Movement, a reformist program led by Sayyid Khan and centered around the Mohammedan Anglo-Oriental College (now Aligarh Muslim University), which helped create an educated Indian Muslim class disconnected from the schools of Islamic jurisprudence in madrasas, and which would actively influence the formation of the All-India Muslim League (to which the speech was addressed); the emergence of an Urdu vernacular press, which circulated these ideas, especially among non-elite Muslims; the partition of Bengal into Hindu and Muslim parts in 1905 (reunited in 1911); the Khilafat Movement from 1919 to 1924, a pan-Islamic movement that brought the ulama (Islamic religious scholars) into the realm of politics; the Moplah Revolt of 1921, which targeted landlords, who were mostly Hindu and which thus triggered a response from organisations like the Hindu Mahasabha and the Arya Samaj; an undercurrent of fear that the Indian National Congress would supress Muslims, especially politically; and the British introduction of religious electorates, which were concretely established by the India Councils Act of 1909 (this is not a chronological or exhuastive list).

The importance of politics really cannot be underplayed, because in many ways, the two-nation theory, in both the speech and in the 1930s in general, was more of a political bargaining chip. Iqbal's idea of a Muslim territory is decidedly ambiguous in how independent it was to be. Contrast:

I would like to see the Punjab, North-West Frontier Province, Sind and Baluchistan amalgamated into a single State. Self-government within the British Empire, or without the British Empire, the formation of a consolidated North-West Indian Muslim State appears to me to be the final destiny of the Muslims, at least of North-West India. (line 3b, emphasis in original)

and

A redistribution of British India, calculated to secure a permanent solution of the communal problem, is the main demand of the Muslims of India. (line 8a)

with

The unity of an Indian nation, therefore, must be sought not in the negation, but in the mutual harmony and cooperation, of the many. (line 2c)

and

Thus, possessing full opportunity of development within the body politic of India, the North-West Indian Muslims will prove the best defenders of India against a foreign invasion, be that invasion one of ideas or of bayonets. (line 3c)

In total,Iqbal's speech has to be seen as an articulaton of older, existing trends. This best explains how Pakistan would become a reality in only 17 more years.

Sources:

Sir Muhammad Iqbal’s 1930 Presidential Address

India's Struggle for Independence, Bipan Chandra et al. (2001, Penguin)

Modern India, Sumit Sarkar (1989, Palgrave Macmillan)

The Struggle for Pakistan, Ayesha Jalal (2014, Belknap Press)

Ironies of History, Hamza Alavi (1997, Comparative Studies of South Asia, Africa and the Middle East, volume 17)