Backstabbing US, Shielding Iran: How Pakistan Capitalises On Washington-Tehran Friction To Save Its Collapsing Economy

For a nation surviving on bailouts from the IMF and its neighbours, every penny secured through truce or treachery is a lifeline to live another day. As the United States and Iran continue to trade volatile threats, pushing their fragile ceasefire to the brink of collapse, Pakistan has aggressively positioned itself as the central diplomatic bridge between Washington and Tehran.

Pakistan’s Interior Minister, Mohsin Naqvi, recently concluded his second high-profile visit to the Iranian capital within a single week, carrying what Pakistani officials described as a "crucial message" aimed at breaking the deadlock. Behind this flurry of diplomatic activity, however, lies a growing international scepticism.

However, there are indications that rather than acting as a neutral arbiter, Islamabad is leveraging the pretext of mediation to secure its own economic survival and advance covert military understandings with Iran.

The sudden urgency in Pakistan’s shuttle diplomacy comes under the shadow of a strict ultimatum issued by US President Donald Trump, who recently warned that while negotiations are in their final stages, the US will resume military strikes against Iran if a comprehensive deal is not reached within a “limited timeframe.”

In response, Iranian President Masoud Pezeshkian and Iranian military commanders have warned of a conflict expanding well beyond the Middle East, while simultaneously leaving the door open for diplomacy.

Yet, as Pakistan relays messages regarding Iran’s nuclear capabilities, sanctions relief and regional proxy groups, it is obvious for many that Islamabad’s motives are not an exercise in peacekeeping, but calculated geopolitical gamble.

Who is involved in the mediation conflict?

The primary actors in this diplomatic drama are the United States, Iran and Pakistan, alongside critical regional observers including Israel and the Gulf states.

Representing Islamabad on the ground is Interior Minister Naqvi, whose rapid-fire meetings with Iranian President Pezeshkian and General Ahmad Vahidi have fuelled rumours that Pakistan’s Chief of Defence Forces, Field Marshal Asim Munir, may today make a high-level military visit to Tehran.

On the other side of the equation are Washington’s closest regional allies, who have openly expressed deep distrust regarding Pakistan's sudden role as a peacemaker.

In a freewheeling chat with The Free Press Journal, Yaniv Revach, Israel’s Consul General in Mumbai and a former captain in the Israel Defence Forces publicly questioned Pakistan’s credentials, pointing to Islamabad's history with state-sponsored militancy.

The scepticism extends into the Middle Eastern press, with outlets like Israel's C14 News actively reporting that regional intelligence agencies are growing "fed up" with what they term as Pakistan's mediation machinations.

True motivations behind Islamabad's diplomacy

Pakistan is facing a severe economic crisis, burdened by external debts exceeding $100 billion. Historically, Islamabad has relied on financial bailouts from Western institutions and Gulf monarchies like Saudi Arabia and the United Arab Emirates. However, under the pretext of mediating between Washington and Tehran, Pakistan has allegedly entered into a transactional, under-the-table understanding with Iran, resulting in a quiet quid pro quo.

As detailed by Dror Balazada of C14 News Israel, if Islamabad can successfully use its diplomatic access to Washington to secure a favourable deal for Tehran, the Iranians will utilise the resulting influx of revenue to help Pakistan service its crippling external debt.

Furthermore, intelligence leaks allege that Islamabad has actively assisted the Iranian military in concealing sensitive assets and military equipment to shield them from potential US and Israeli airstrikes.

Why is Pakistan facing backlash over its mediation role?

The international community's backlash against Pakistan stems from the glaring contradiction between its public posture as a regional peacemaker and its private economic and security calculations. For Washington and its allies, a credible mediator must be entirely transparent and neutral. Pakistan, however, is heavily incentivised to drag out the negotiation process. As long as it remains the indispensable intermediary, it retains diplomatic leverage with the Trump administration while simultaneously keeping its financially lucrative and defensive arrangements with Iran intact.

Furthermore, Israel views Pakistan's involvement as a severe security risk rather than a diplomatic solution. Speaking to The Free Press Journal, Israeli diplomat Revach stated bluntly, "Horrible. I don’t think they can deliver. How can a country that promotes terrorism mediate? We can't trust such a country."

How is Pakistan manipulating the negotiation process?

By keeping the United States engaged in a cycle of endless deliberation, Pakistan successfully shields Iran from immediate military consequences while positioning itself to reap massive financial rewards from Tehran if sanctions are lifted.

Ultimately, by transforming a volatile nuclear and regional security crisis into a mechanism for its own debt relief, Pakistan is executing a high-stakes foreign policy strategy that prioritises its own economic survival above a stable and verifiable peace in the Middle East.

Published on: Thursday, May 21, 2026, 12:30 PM IST