Pakistan talking to Iran, Saudi Arabia other nations in region

Pakistan is engaging in diplomatic outreach with Iran, Saudi Arabia, and other regional actors to mitigate the economic and security risks arising from escalating tensions in the Gulf. Recent military consultations between Islamabad and Riyadh, following Iranian drone and missile strikes on Saudi territory, underscore Pakistan's efforts to balance its strategic partnerships while avoiding entanglement in broader regional conflicts. The Pakistani government has emphasized de-escalation, with Deputy Prime Minister and Foreign Minister Ishaq Dar urging restraint during discussions with Saudi and Chinese counterparts, reflecting concerns over the spillover effects of the crisis on global markets and regional stability.

The Strategic Mutual Defence Agreement (SMDA) between Pakistan and Saudi Arabia, formalized in September 2025, has become a focal point of these discussions, though its scope remains undisclosed. While Pakistan has signaled solidarity with Riyadh in addressing security threats, it has simultaneously called for prudence, referring to Iran as a "brotherly country" to signal its desire to maintain open channels with Tehran. This dual approach aims to preserve economic and defense ties with Saudi Arabia while avoiding actions that could destabilize Pakistan's border regions or disrupt trade with Iran.

The crisis has already impacted Pakistan's economy, with fuel prices rising by Rs55 per liter and austerity measures introduced to manage fiscal pressures. Additionally, regional instability has accelerated the return of Afghan refugees, straining public resources and complicating economic planning. As the conflict evolves, Pakistan's ability to navigate these competing priorities will influence its economic resilience and regional trade dynamics.