- By: Zahra Shafiq Awan
With greater engagement with the United States and concurrent efforts to strengthen regional connections, especially with Iran, Pakistan’s foreign policy is entering a new and constructive phase in 2025. Pakistan’s approach to striking a balance between regional stability and economic opportunities is evident in its dual-track diplomacy.
Relations with Washington are improving after a downturn following the U.S. pullout from Afghanistan. Pakistan’s aim to reestablish itself as a strategic partner is demonstrated by Army Chief General Asim Munir’s visit to the United States, which included a meeting with former President Trump. A key component of this change is economic relationships. Through its Special Investment Facilitation Council (SIFC), Pakistan is attempting to lower tariffs, some of which are as high as 29%, while providing U.S. companies with access to the mining, energy, and digital industries. In 2024, bilateral commerce reached $12.5 billion. Attracting $5 billion in foreign direct investment is the aim.
Pakistan is strengthening its relations with Iran at the same time. In the context of growing tensions between the United States and Iran, Islamabad is interested in playing a diplomatic role, as evidenced by Iranian President Masoud Pezeshkian’s visit. Iran is an essential neighbor that Pakistan cannot overlook due to its shared borders and energy connections. In the meantime, the United States is interested in forming long-term alliances in Pakistan’s mining and oil industries. Although Trump’s proposal to send Pakistani oil to India is bold, it shows Washington’s renewed interest.
Pakistan is taking capitalize of its strategic location, economic potential, and topography. However, this delicate balancing act is complicated by issues like debt, political unrest, and the competition between the United States and China. Pakistan’s foreign policy is essentially multi-vector. Its efforts to reach out to Tehran and Washington demonstrate a move toward regional importance and economic pragmatism. Pakistan’s capacity to preserve internal policy coherence and diplomatic balance in a rapidly shifting global environment will be fundamental to its success.