Saudi Arabia and Iran both have significant place in Pakistan's foreign policy. How Pakistan can maintain friendly relations with both Saudi Arabia and Iran, especially after the mediation of China between the two countries?

Introduction

The Holy Quran says: "The believers are but brothers, so make settlement between your brothers" (Al-Hujurat 49:10). For Pakistan, this is not only a religious ideal but a practical need, because its two most important Muslim partners in the Gulf, Saudi Arabia and Iran, were bitter rivals for decades. Saudi Arabia is Pakistan's most generous financial supporter and home to millions of its workers, while Iran is its neighbour with a long shared border. Every turn in their rivalry put Pakistan in a difficult position. The Beijing agreement of 10 March 2023, under which the two restored diplomatic ties through Chinese mediation, has eased that pressure and given Pakistan a chance to build friendly relations with both at the same time.

Overview

Saudi-Iran rivalry deepened after the Iranian Revolution of 1979 and was fought through proxy conflicts in Iraq, Syria, Lebanon, Bahrain and Yemen. In January 2016, after Saudi Arabia executed the Shia cleric Sheikh Nimr al-Nimr and protesters stormed the Saudi embassy in Tehran, Riyadh cut diplomatic ties. Iraq and Oman hosted talks from 2021, and on 10 March 2023 Saudi Arabia, Iran and China issued a joint statement in Beijing announcing that the two would restore relations and reopen embassies within two months. Iran reopened its embassy in Riyadh in June 2023 and Saudi Arabia reopened its embassy in Tehran in August 2023. Pakistan, which had refused to send troops to Yemen in 2015 and had tried to mediate in 2019, welcomed the agreement.

Significance of Saudi Arabia and Iran for Pakistan

1. Saudi Arabia: custodian of the holy places.

Saudi Arabia hosts Makkah and Madinah, and more than 179,000 Pakistanis performed Hajj under Pakistan's quota in 2024, besides many more pilgrims for Umrah. This gives the relationship deep emotional and religious roots. (Reference: Ministry of Religious Affairs, Hajj Policy 2024; Saudi Ministry of Hajj and Umrah.)

2. Saudi Arabia: diaspora and remittances.

About two and a half million Pakistanis work in Saudi Arabia, and it is the largest source of Pakistan's workers' remittances, sending more than US$7 billion in fiscal year 2023-24. (Reference: State Bank of Pakistan, workers' remittances by country, FY2024; Bureau of Emigration and Overseas Employment.)

3. Saudi Arabia: financial lifeline.

Saudi Arabia has repeatedly rescued Pakistan's economy, for example with a US$3 billion deposit in the State Bank and a deferred-payment oil facility announced in October 2021, and later rollovers that supported Pakistan's IMF programmes. (Reference: Saudi Fund for Development, agreements with Pakistan, 2021; IMF Pakistan staff reports, 2023–2024.)

4. Saudi Arabia: defence partnership.

Pakistani troops have trained Saudi forces for decades; former army chief Raheel Sharif has led the Saudi-led Islamic Military Counter Terrorism Coalition since 2017; and the two countries signed a Strategic Mutual Defence Agreement in Riyadh on 17 September 2025. (Reference: Prime Minister's Office of Pakistan and Saudi Press Agency, joint statement, 17 September 2025.)

5. Iran: an immediate neighbour.

Pakistan and Iran share a border of about 900 km between Balochistan and Sistan-Baluchestan. Peace on this border is essential for Pakistan's security, especially when its eastern and Afghan borders are already tense. (Reference: Ministry of Foreign Affairs of Pakistan, Pakistan-Iran relations brief.)

6. Iran: an energy source.

Iran has the world's second-largest proven gas reserves. The Iran-Pakistan gas pipeline, agreed in 2009–2010 and completed on the Iranian side, could ease Pakistan's gas shortage, though US sanctions have stalled Pakistan's section. (Reference: BP/Energy Institute Statistical Review of World Energy; Inter State Gas Systems, IP pipeline project.)

7. Iran: trade and connectivity.

Iran links Pakistan by road and rail to Turkey, Central Asia and the Caucasus, and the two countries opened the Mand-Pishin border market and a power transmission line on 18 May 2023 to boost border trade. (Reference: Prime Minister's Office of Pakistan, press release, 18 May 2023.)

8. Iran: border security and militancy.

Militant groups operate on both sides of the border. Iran's missile strike in Panjgur on 16 January 2024 and Pakistan's retaliatory strikes on 18 January showed how quickly ties can deteriorate, and how both sides need cooperation against such groups. (Reference: ISPR statement, 18 January 2024; Ministry of Foreign Affairs of Pakistan press releases, January 2024.)

How Pakistan can maintain friendly relations with both

1. Strict neutrality in Saudi-Iran disputes.

Pakistan's parliament set the precedent in April 2015 with a unanimous resolution to stay neutral in Yemen. Pakistan should continue to avoid taking sides in any Saudi-Iran dispute or proxy war. (Reference: National Assembly and Senate of Pakistan, joint resolution on Yemen, 10 April 2015.)

2. Making use of the Beijing thaw.

With Riyadh and Tehran now talking directly, Pakistan no longer has to choose between them. It should hold regular high-level visits to both capitals and invite both to joint economic projects. (Reference: Joint Trilateral Statement by Saudi Arabia, Iran and China, Beijing, 10 March 2023.)

3. A bridge-builder, not a party.

Pakistan's earlier mediation effort, when Prime Minister Imran Khan visited Tehran and Riyadh in October 2019, can be revived in a quieter form, in coordination with China, Oman and Iraq, to help keep the détente alive. (Reference: Ministry of Foreign Affairs of Pakistan, press releases, 13–15 October 2019.)

4. Separate tracks for separate partners.

Pakistan's defence pact with Saudi Arabia should be presented clearly as not directed against Iran, and its border and energy cooperation with Iran as not directed against Saudi Arabia. Transparency removes suspicion on both sides. (Reference: Pakistan Foreign Office statements on the Strategic Mutual Defence Agreement, September 2025.)

5. Economic diplomacy with both.

Pakistan should attract Saudi investment in mining, agriculture and refining through the Special Investment Facilitation Council, while expanding barter and border trade with Iran within the limits of international sanctions. (Reference: SIFC, investment portfolio; Ministry of Commerce, Pakistan-Iran barter trade framework, 2023.)

6. Joint border management with Iran.

Hotlines, liaison officers and joint patrols can prevent another crisis like January 2024. The swift restoration of ambassadors and President Raisi's visit to Pakistan in April 2024 showed that both sides prefer cooperation. (Reference: Pakistan-Iran joint statement, 24 April 2024.)

7. Managing sectarian sensitivities at home.

Pakistan has both Sunni and Shia communities, and foreign rivalry has in the past fuelled sectarian violence. Implementing the National Action Plan against sectarian hate and regulating foreign funding of seminaries protects both domestic peace and foreign relations. (Reference: National Action Plan, 2014, and Revised National Action Plan, 2021; NACTA.)

8. Working through the OIC and SCO.

Saudi Arabia leads the OIC and hosts its headquarters, while Iran is a member of the SCO alongside Pakistan and China. Pakistan can use both forums to build common Muslim positions, such as on Palestine, that unite rather than divide. (Reference: OIC Charter, 2008; SCO Secretariat on Iran's full membership, July 2023.)

Challenges in balancing

Pakistan's balancing act still faces hurdles: US sanctions on Iran block banking channels and the gas pipeline; Saudi financial support creates expectations of political alignment; militant activity on the Iran border can spark crises; and wider conflicts, such as the Israel-Iran war of June 2025, can reopen regional divisions. Pakistan must therefore keep its policy flexible and its diplomacy active.

Conclusion

Allama Iqbal wrote in Zarb-e-Kalim: "Tehran ho gar alam-e-mashriq ka Geneva, shayad kura-e-arz ki taqdeer badal jaye" (If Tehran becomes the Geneva of the Eastern world, perhaps the fate of the globe may change). Iqbal's dream of a united Muslim East is closer when Riyadh and Tehran talk to each other. China's mediation has given Pakistan the space it long wanted. By staying neutral in their disputes, deepening economic ties with both, securing its border with Iran and preventing sectarianism at home, Pakistan can keep both brotherly countries close and become a bridge between them.