Want to Know Who Sir Syed Kazim Ali Is? Read Now

Impact of U.S.-Iran Tensions and Saudi-Iran Rivalry on Pakistan-Iran Relations

Huma Akram

Huma Akram, Sir Syed Kazim Ali's student, is Howtests' writer, inspiring youth.

View Author

12 July 2025

|

440

This editorial examines the influence of escalating U.S.-Iran tensions and the Saudi-Iran rivalry on Pakistan’s diplomatic and economic relations with Iran. It highlights the strategic balancing act Pakistan must perform between its Gulf allies and its neighboring partner Iran in a complex regional context.

Impact of U.S.-Iran Tensions and Saudi-Iran Rivalry on Pakistan-Iran Relations

Pakistan’s relationship with Iran is a complex interplay of geography, religion, economy, and regional geopolitics. While the two neighbors share a border and cultural linkages, their bilateral ties are shaped significantly by broader strategic dynamics. Notably, the tense relationship between Iran and the United States, and the historic rivalry between Iran and Saudi Arabia, have both acted as powerful undercurrents influencing Pakistan’s foreign policy. This editorial evaluates how these two regional fault lines have affected Pakistan’s diplomatic posture toward Iran, the balancing acts involved, and the implications for stability in the region.

Follow Cssprepforum WhatsApp Channel: Pakistan’s Largest CSS, PMS Prep Community updated

Led by Sir Syed Kazim Ali, Cssprepforum helps 70,000+ aspirants monthly with top-tier CSS/PMS content. Follow our WhatsApp Channel for solved past papers, expert articles, and free study resources shared by qualifiers and high scorers.

Follow Channel

Historical Background of Pakistan-Iran Relations

Pakistan and Iran have historically enjoyed cordial relations since Pakistan’s inception in 1947. Iran was the first country to recognize Pakistan after independence, and both were members of U.S.-led pacts like CENTO during the Cold War. However, relations began to diverge after the 1979 Islamic Revolution in Iran, which introduced ideological differences between a Sunni-majority Pakistan and a Shia-theocratic Iran. Despite these shifts, both nations have managed to sustain a level of cooperation, particularly in border security and trade. Nonetheless, their relationship has remained vulnerable to external influences, especially from major powers and regional rivals.

The Strategic Importance of Geopolitical Alignments

In the post-9/11 world, regional alignments have grown increasingly polarized. Iran’s contentious nuclear program, its influence in Syria, Lebanon, and Iraq, and its confrontational stance toward the United States have drawn sanctions and international isolation. Meanwhile, Saudi Arabia, a close ally of both the United States and Pakistan, perceives Iran’s regional influence as a strategic threat. Pakistan, therefore, finds itself in a precarious position, having to balance between its ideological, economic, and strategic ties with Saudi Arabia and the geographic, security-based, and economic imperatives that demand stable ties with Iran.

Impact of U.S.-Iran Tensions on Pakistan-Iran Relations

Limitation of Economic Cooperation

One of the most direct consequences of U.S.-Iran tensions has been the restriction on economic collaboration between Iran and countries like Pakistan. The proposed Iran-Pakistan gas pipeline, envisioned to alleviate Pakistan’s energy crisis, has remained incomplete primarily due to U.S. sanctions. While Iran completed its portion of the pipeline, Pakistan has delayed progress out of fear of international penalties. As a result, potential economic synergy between the two neighbors has been stifled, pushing Pakistan to seek energy alternatives elsewhere despite the geographical feasibility of Iranian imports.

Security Pressures and Border Management

Escalating U.S.-Iran hostility has also complicated the security dynamics along the Pakistan-Iran border. When U.S.-Iran tensions flare, Iran tends to increase its vigilance on cross-border movements, particularly in Balochistan, where anti-Iran insurgents operate. Pakistan, facing pressure from both Iran and the United States to control militant sanctuaries, is forced to increase military deployment in the region. These situations generate mistrust and complicate intelligence-sharing between the two states. Additionally, any regional escalation involving Iran often raises concerns in Islamabad over spillover effects into Pakistani territory.

Impact of Saudi-Iran Rivalry on Pakistan-Iran Relations

Sectarian and Diplomatic Pressures

The rivalry between Saudi Arabia and Iran is deeply ideological, rooted in Sunni-Shia sectarianism, and has wide-reaching effects across the Muslim world. In Pakistan, which hosts sizable Shia and Sunni populations, this sectarian tension translates into both societal friction and policy dilemmas. Saudi Arabia’s influence in Pakistan’s religious institutions and financial support to Sunni seminaries often raises concerns in Tehran. Moreover, Pakistan’s frequent diplomatic affirmations of support for Saudi-led initiatives, such as the Islamic Military Alliance, are perceived by Iran as indirect opposition. As a result, Pakistan’s moves in the Gulf often echo louder in Tehran than they may intend.

Economic Dependence on Gulf States

Pakistan’s economic dependence on Gulf states, particularly Saudi Arabia and the United Arab Emirates, further complicates its ability to pursue a more autonomous Iran policy. Millions of Pakistani workers in the Gulf remit billions of dollars annually, and Saudi Arabia provides direct financial support in the form of aid and oil credit. Consequently, any divergence from the Saudi geopolitical line, especially in matters concerning Iran, could threaten these economic lifelines. This reality constrains Pakistan’s ability to fully engage Iran on trade, energy, or regional security without appearing disloyal to its Gulf patrons.

Reluctance in Mediation and Strategic Hedging

Despite repeated offers to mediate between Iran and Saudi Arabia, Pakistan has largely maintained a position of strategic hedging. While Prime Minister Imran Khan’s government attempted shuttle diplomacy between Riyadh and Tehran in 2019, these efforts lacked lasting impact. Pakistan’s cautious approach suggests a desire to avoid entanglement rather than to solve the dispute. This reluctance is perceived by Iran as diplomatic ambiguity, further limiting Tehran’s trust in Islamabad’s regional intentions. Pakistan’s military and intelligence cooperation with Saudi Arabia, including the posting of retired generals in Riyadh, reinforces the perception of partiality.

Opportunities amidst Constraints

Geo-economic Shifts and Regional Connectivity

Notwithstanding the challenges, new economic realities offer limited opportunities for re-engagement with Iran. As China expands its Belt and Road Initiative (BRI), including the China-Pakistan Economic Corridor (CPEC), Iran has expressed interest in regional connectivity. Pakistan can benefit from integrating Iranian infrastructure into broader connectivity frameworks, provided it navigates U.S. sensitivities carefully. Moreover, with increasing calls for regional cooperation in Central and South Asia, Pakistan could strengthen ties with Iran in trade, transit, and energy without violating core strategic alignments. These openings, however, require meticulous diplomacy and domestic political consensus.

Join 3-Day Free Orientation for CSS/PMS English Essay & Precis Course

Learn to Qualify for CSS 2026/27 & PMS with Sir Syed Kazim Ali’s free 3-day online orientation. Learn essay & precis writing. Limited seats available; register via WhatsApp by June 29!

Join Now

Pakistan’s Iran policy reflects a tightrope walk between pragmatism and pressure. While geography and shared interests demand cooperation, ideological divides and external allegiances create friction. Islamabad’s cautious approach preserves strategic autonomy but often at the cost of deeper engagement with Tehran. A consistent, principle-based foreign policy is essential to avoid the perception of opportunism. While the country cannot afford to antagonize either Iran or its Gulf allies, a more nuanced and predictable stance could enhance regional trust and stability. Long-term peace in the region may hinge on Pakistan's ability to maintain credible neutrality.

Pakistan’s relations with Iran are inevitably shaped by the broader regional geopolitical climate, particularly the longstanding U.S.-Iran tensions and the Saudi-Iran rivalry. These external pressures limit the scope of bilateral cooperation, particularly in the areas of energy, security, and diplomacy. While Pakistan has made efforts to remain neutral, economic dependencies and ideological alliances often tilt its position, leading to cautious and sometimes ambiguous policies. Moving forward, Pakistan must navigate these complex dynamics through strategic balance, consistent engagement, and regional vision. A stable and cooperative relationship with Iran is not only in Pakistan’s national interest but also essential for broader regional peace.

CSS Solved Past Papers from 2010 to Date by Miss Iqra Ali

Explore CSS solved past papers (2010 to Date) by Miss Iqra Ali, featuring detailed answers, examiner-focused content, and updated solutions. Perfect for aspirants preparing for CSS with accuracy and confidence.

Explore Now

How we have reviewed this article!

At HowTests, every submitted article undergoes a careful editorial review to ensure it aligns with our content standards, relevance, and quality guidelines. Our team evaluates the article for accuracy, originality, clarity, and usefulness to competitive exam aspirants. We strongly emphasise human-written, well-researched content, but we may accept AI-assisted submissions if they provide valuable, verifiable, and educational information.
Sources
Article History
Update History
History
12 July 2025

Written By

Huma Akram

B.Ed

Student | Author

Edited & Proofread by

Sir Syed Kazim Ali

English Teacher

Reviewed by

Sir Syed Kazim Ali

English Teacher

The following are the references used in the editorial “Impact of U.S.-Iran Tensions and Saudi-Iran Rivalry on Pakistan-Iran Relations”. 

History
Content Updated On

1st Update: July 12, 2025 | 2nd Update: July 12, 2025 | 3rd Update: July 12, 2025

Was this Article helpful?

(300 found it helpful)

Share This Article

Comments