Pakistan Caught in Diplomatic Gridlock and Economic Turmoil Amid Iran War

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A week ago, Pakistan was in the global spotlight as it positioned itself as the lead mediator in the US-Iran war. Not only did Pakistan have working relations with both the US and Iran, but it also had a lot at stake in seeing the war resolved and secure passage for its oil tankers through the Strait of Hormuz. However, the move seems to have backfired, with Iran declining to meet any US delegation on Pakistani soil, according to a report in The Wall Street Journal.

Moreover, by jumping in as a mediator while having a defence pact with Saudi Arabia, which has been pounded by Iran, it seemingly upset both sides – Iran as well as its Gulf allies. It has reportedly displeased Saudi Arabia. The UAE, with which ties have lately come under strain, has rubbed it in by asking a cash-strapped Pakistan to immediately pay back a $3.5 billion (Rs 2.9 lakh crore) loan.

In the end, amid such a high-stakes conflict, Pakistan’s ploy of trying to please all sides seems to have ended up pleasing no one. “It seems like Pakistan has massively overplayed their hand,” tweeted geopolitical analyst Daniel Bordman.

INDIA’S MEASURED APPROACH

It contrasts the approach taken by India. Since the war started on February 28, India has maintained a measured approach, diversified its crude oil sources, while focusing on securing its energy interests. In fact, Pakistan’s emerging as a mediator in US-Iran talks was framed as a setback for India. Then, External Affairs Minister S Jaishankar, briefing an all-party meeting, asserted that India cannot act as a “dalal nation” in geopolitics.

PAKISTAN’S MEDIATION BID HITS DEAD END

 

So far, Pakistan has mostly acted as a messenger between the US and Iran. On March 25, Pakistan conveyed to Iran a 15-point ceasefire proposal from the US. It included abandoning its nuclear program and reopening the Strait of Hormuz. Iran, however, publicly responded with a five-point counteroffer.

 

Throughout, Iran has rejected any suggestions that it was engaging in mediation efforts by Pakistan. “Pakistan’s diplomatic forums are their own. We didn’t participate,” Iran said in a statement last week.

Crucially, Pakistan has so far not been able to bring Iran and the US to the negotiating table. For the past couple of weeks, a possible meeting between Iranian officials, including the Parliament Speaker, and US Vice President JD Vance in Islamabad was floated.

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