Evolving Pakistan-Iran Alliance
Changing World & Geopolitical Chess
Written By: Habiba Malik
Introduction
Relations between Iran and Pakistan have been functional, and at times warm, but ultimately not particularly strong. While Iran-Pakistan people-to-people exchanges remain a strength of the relationship, both sides have also carried grievances against each other.
In the book Iran and Pakistan: Security, Diplomacy, and American Influence, author Alex Vatanka argues that Iran’s Shia theocratic regime has often felt ideologically distant from Sunni-majority Pakistan. Iranian leadership has also, at times, viewed the relationship through a sectarian lens. However, the salience of this sectarian rift is much less acute because Pakistan has a sizable Shia minority.
Iran has also held a negative perception of Pakistan due to Islamabad’s strong relations with geopolitical forces opposed to Tehran, particularly the United States and Gulf powers such as the United Arab Emirates and Saudi Arabia.
For Pakistan, Iran has often been seen as a difficult and not very useful neighbor due to its pariah status in the West. Iran has also maintained a closer relationship with Pakistan’s archrival India. Pakistani leaders have long suspected Iran of supporting and providing safe haven to anti-Pakistan ethno-nationalist groups.
Despite these strains, the two countries have kept the diplomatic door open. Their reaction to cross-border incidents is often characterized by tactical appeasement, balancing security needs with the desire to maintain diplomatic relations.
For instance, in situations where one party may launch an attack inside the other country, both sides may issue provocative statements to express displeasure. At the same time, they usually seek ways to cool down the situation and prevent escalation.
Recent geopolitical and regional developments have brought the two countries closer, as both nations have been embroiled in conflicts with their respective regional foes.
Tehran’s shuttle diplomacy during the Pakistan-India war is a testament to evolving relations. Iranian Foreign Minister Abbas Araghchi arrived in Islamabad in May 2025 for a one-day visit aimed at de-escalating tensions between India and Pakistan.
Although his trip was originally scheduled for India to co-chair the 20th India-Iran Joint Commission Meeting, Foreign Minister Araghchi made a stop in Islamabad first. This gesture was widely interpreted as a sign of the enduring diplomatic depth between Pakistan and Iran.
Furthermore, Pakistan’s diplomatic role in the Iran-Israel conflict further enhanced its standing. As Israel intensified its strikes on Iran’s nuclear facilities in June 2025, Pakistan condemned the attacks as violations of international law, aligning itself with Tehran.
This stance, coupled with Field Marshal Munir’s visit to Iran alongside Prime Minister Shehbaz Sharif in May 2025, strengthened Pakistan-Iran ties.
Pakistan’s Strategic Position as a Bridge Between Iran and the United States
Pakistan’s ability to simultaneously maintain constructive ties with Iran and the United States places it in a strategically important position. It allows Islamabad to bridge divides and serve as a credible mediator.
As tensions escalated following U.S. airstrikes on Iranian nuclear facilities, both Tehran and Washington expected Islamabad to side with their respective positions. This placed the Pakistani government in a politically sensitive and diplomatically delicate position.
On one hand, Pakistan was in the process of strengthening its strategic ties with the United States. On the other hand, it did not wish to abandon the principle of supporting the self-determination and security of a neighbouring Muslim country.
An attack that could destabilize Iran also carried the risk of triggering severe negative repercussions within Pakistan. Therefore, Islamabad’s backing of Iran remained measured and calculated, aimed at playing a mediatory role between Washington and Tehran.
Most recently, U.S. Secretary of State Marco Rubio held a call with Prime Minister Shehbaz Sharif, during which both agreed to work together to achieve durable peace between Iran and Israel.
Meanwhile, Iran’s military chief, Maj. Gen. Abdolrahim Mousavi, called Pakistan’s Army Chief, Field Marshal Asim Munir, to thank Pakistan for taking a courageous stance and supporting Iran during its 12-day war with Israel.
Iranian President’s Visit to Pakistan and Expanding Cooperation
During President Masoud Pezeshkian’s maiden visit, Pakistan and Iran signed agreements pledging to raise bilateral trade from $3 billion to $10 billion. Both sides also committed to working more closely to eliminate the menace of terrorism in favour of peace and prosperity in the region.
Tehran is also interested in joining China’s Belt and Road Initiative through Pakistan. This route could then extend through Iran to Europe, creating wider geo-economic opportunities.
The two countries exchanged 12 agreements and MoUs to promote bilateral cooperation in diverse fields.
These agreements and MoUs included cooperation in:
- Plant protection and plant quarantine
- Joint use of the Mirjaveh-Taftan border gate
- Science, technology, and innovation
- Information and communications technology
- Exchange programmes
- Export cooperation in meteorology, climatology, and related hazards
- Maritime safety and firefighting
- Judicial assistance in criminal matters
- Supplemental MoU related to the 2013 air services agreement
- Recognition of product certification, inspection, and testing
- Tourism cooperation for 2025-27
- Joint ministerial statement on the intent to finalize a Free Trade Agreement
The high-level discussion marked a renewed commitment from both sides to deepen economic relations, accelerate trade, remove border bottlenecks, and build trust-based partnerships across priority sectors.
In addition, Pakistan expressed support for Iran, saying that Tehran has the right to maintain nuclear reactors for civilian purposes under the UN Charter. Pakistan’s support came against the backdrop of international opposition faced by Iran regarding its nuclear programme.
Prospects for Rebooting the Pakistan-Iran Alliance
There are considerable prospects for Tehran and Islamabad to reboot their alliance.
Iran’s motive for improving relations falls under a broader strategy of decoupling from the West through two key foreign policy approaches: “Look to the East” and the “Neighbourhood Policy.”
The first approach calls for stronger ties with China and Russia, while the second prioritizes Iran’s neighbouring countries as its main economic and political partners.
Being a neighbouring country, China’s ally, and an easy route to China, Pakistan is crucial for Iran to materialize its foreign policy goals.
In his remarks, President Pezeshkian stated that advancing the neighbourhood policy is among the priorities of Iran’s foreign policy, as Pakistan is not only Iran’s neighbour but also a brotherly country.
Iran, CPEC, and the Gwadar-Chabahar Link
Iran wants to join CPEC because it could help Tehran take advantage of the proximity between the Gwadar and Chabahar seaports.
The strategic Iran-Pakistan-China triangle can extend the Silk Road to Europe through CPEC. This would provide more geo-economic strength to the Belt and Road Initiative and encourage China’s regional connectivity ambitions.
The idea was also expressed by Iran and Pakistan through their emphasis on increasing the use of existing trade corridors and border facilities.
Both sides highlighted the need to maximize the potential of neighbourhood trade, similar to how ASEAN countries have benefited enormously by promoting intra-regional trade.
Economic Diplomacy and the Iran-Pakistan Gas Pipeline
Economic diplomacy is a cornerstone of Pakistan’s foreign policy.
Cooperation in the energy sector can be very helpful for Pakistan’s industrial and economic development because Iran is well-endowed with oil and natural gas reserves.
Another major plan for establishing bilateral economic relations is the Iran-Pakistan gas pipeline, also known as the “Peace Pipeline.”
This project carries immense potential for addressing Pakistan’s energy shortages, but external pressure and sanctions have repeatedly delayed progress.
A Geopolitical Opportunity for Pakistan and a Challenge for India
Enhanced Pakistan-Iran relations would be a geopolitical blow for India and a golden opportunity for Pakistan.
New Delhi has invested heavily in Iran’s Chabahar port, aimed at strengthening trade and connectivity links to Afghanistan and Central Asia. These regions are important for India’s trade, security, and influence.
Improved Iran-Pakistan relations could reduce India’s influence in Iran, Afghanistan, and Central Asia by strengthening cooperation among ECO member states.
India also broke with the rest of the SCO group, led by Russia and China, by distancing itself from the bloc’s stance condemning Israel’s military strikes on Iran. This move jeopardized India’s political leverage.
Such diplomatic isolation can enhance support for Pakistan on the Kashmir issue.
Border Security and Counterterrorism Cooperation
Combating terrorist groups active in Balochistan and Sistan-Baluchestan remains an important area of cooperation between Pakistan and Iran.
These regions straddle the shared border and have long been vulnerable to cross-border militancy, smuggling, and separatist violence.
By July 2025, joint Pakistan-Iran operations, including joint border patrolling and intelligence cooperation, reportedly reduced cross-border militant activity by 40%. Iran provided intelligence and logistical support to suppress the Balochistan insurgency.
Such cooperation is necessary to keep the porous Iran-Pakistan border safe and secure.
Afghanistan as a Shared Diplomatic Ground
Afghanistan is another important diplomatic ground between Pakistan and Iran.
Both countries want Afghanistan to be stable because instability in Afghanistan threatens to spill over into their own territories.
In recent years, Pakistan and Iran have participated in many regional and multilateral meetings to support peace and reconstruction in Afghanistan.
These efforts have included engagement through the Shanghai Cooperation Organisation and other regional organizations related to security and economic integration in Central and South Asia.
Border Markets and Local Economic Development
Improved flow of goods between Pakistan and Iran through border markets can create employment and development in less-developed areas.
These markets operate along the Pakistan-Iran border and are generally intended to create legitimate trade channels and boost economic activity in otherwise ignored regions.
The establishment of a Pak-Iran Common Border Market is being considered as a collaborative effort between the two states.
Such initiatives can help reduce smuggling, strengthen legal trade, and improve livelihoods in border communities.
Religious Diplomacy and Muslim Unity
Religious diplomacy has emerged as a key factor in managing crises in Pakistan-Iran relations. It can help ensure Muslim unity and reduce sectarian tensions between Sunnis and Shias.
The Iranian Ambassador to Pakistan, Reza Amiri Moghadam, invited a Pakistani federal minister to participate in an International Quran Conference in Iran.
This invitation emphasized the need for a joint action plan to promote interfaith harmony and religious understanding.
Obstacles in Strengthening Pakistan-Iran Relations
Despite growing opportunities, several obstacles continue to hinder the development of a strong Pakistan-Iran bond.
One major issue is informal trade, including illegal trade and smuggling. Informal trade between Iran and Pakistan is likely to increase more than the formal trade targets shared by both countries.
According to CSCR, unofficial sources suggest that informal trade between both countries amounted to an estimated $4 billion last year.
Structured channels such as the Joint Economic Commission, regular business-to-business exchanges, and sector-focused delegations can help boost trade ties by addressing barriers and improving border infrastructure.
Balochistan Insurgency and Regional Instability
The Balochistan insurgency, while weakened, remains a vulnerability. Separatist groups such as the Baloch Liberation Army exploit regional instability.
Pakistan’s military operations, supported by Iran, reportedly reduced attacks by 40%. However, the risk of recurring attacks continues to exist.
Furthermore, the alleged presence of RAW and Mossad in Afghanistan, and even in Iran, creates another common front that requires continued diplomatic and security efforts.
Pakistan’s Relations with Saudi Arabia and the Gulf
The question of Pakistan’s close relations with Saudi Arabia still lingers and causes tension between Islamabad and Tehran.
Saudi Arabia is a close ally and a major source of financial assistance for Pakistan. Riyadh has also committed huge investments amounting to $20 billion in CPEC-related projects, including the establishment of a petrochemical complex in Gwadar.
Therefore, it is imperative for Islamabad to remain a neutral player while preserving friendly relations with both Iran and Saudi Arabia.
U.S. Sanctions and Limits on Trade
Sanctions on Iran, particularly those led by the United States due to Iran’s nuclear activity, have made it very difficult for any country to engage in serious business with Tehran.
A deadline of October 18 is approaching when the resolution governing sanctions against Iran expires. At that point, all UN sanctions on Iran will be lifted unless the “snapback” mechanism is triggered at least 30 days before.
If triggered, the snapback mechanism would automatically reimpose sanctions targeting sectors such as hydrocarbons, banking, and defence.
U.S. sanctions on Iran remain a significant obstacle to deepening trade relations.
Trade relations between Pakistan and Iran are still guided by the Preferential Trade Agreement, which came into effect in 2006. There have been discussions to replace the PTA with a Free Trade Agreement, which would boost economic relations between both countries.
However, due to several reasons, nothing has materialized yet.
To deal with these limitations, there have been proposals for a barter system and the opening of respective bank branches in major cities.
Pakistan-Iran Relations: Historical Affinity and Contemporary Challenges
Pakistan’s relationship with Iran reflects a blend of historical affinity and contemporary challenges.
Shared concerns over border security, counterterrorism, and economic development provide a foundation for cooperation.
However, sectarian dynamics and geopolitical rivalries continue to pose significant obstacles.
Pakistan’s strategy of maintaining equidistance between Iran, Saudi Arabia, and the United States has enabled it to navigate complex regional geopolitics. It also underscores Pakistan’s role as a mediator in conflicts.
Economic initiatives such as the stalled Iran-Pakistan gas pipeline and potential collaborations within the CPEC framework highlight untapped opportunities.
However, external pressures and sanctions have hindered progress.
Ultimately, the future of Pakistan-Iran relations will depend on their ability to manage mutual interests amid shifting regional and global power dynamics.