Pakistan has played the role of peace broker in the US-Iran war that lasted for over more than a month in the first quarter of 2026. Pakistan’s role has received worldwide appreciation for deescalating tensions between the two adversaries, which reached a dangerous point after President Trump’s “end to civilization” threats. Pakistan hosted the US and Iranian delegations, led by the US Vice President, J. D. Vance and Iran’s chief negotiator Mohammad Bagher Ghalibaf on 10 to 11 April 2026 in Islamabad. It was the first time after the 1979 Iranian revolution that both Washington and Tehran held direct negotiations. Pakistan’s good relations with the US and Iran both paved the way for Pakistan’s diplomatic role since the very beginning of the US-Iran war in February 2026.
By positioning itself as mediator in such a crucial and critical tough situation, Pakistan sought to project an image of a responsible and capable regional actor. This role will have long-term diplomatic dividends, including improved relations with major powers, greater influence in multilateral forums, and potential and economic benefits for Pakistan. However, a closer look at Pakistan’s role reveals a convergence of economic, strategic and security imperatives that compelled Pakistan to position itself as a mediator. This article evaluates the key drivers behind Pakistan’s mediation efforts, focusing on three central concerns: the safety of its overseas workforce to preserve remittance flows, the avoidance of multi-front security pressures and the safeguarding of its energy security that is heavily dependent upon the Gulf region.
Pakistan’s expatriate workforce and importance of Gulf remittances
According to the Bureau of Emigration & Overseas Employment, over 14.38 million Pakistanis have migrated abroad since 1970. Among them, Saudi Arabia is home to approximately 7.39 million Pakistani expatriates, followed by the United Arab Emirates (UAE) with 4.39 million. The Gulf region, especially Qatar, Oman, Kuwait, and Bahrain, has historically been the primary destination for Pakistani labor migrants. Pakistan has around a 6 million strong workforce that is working in the Middle East. Remittances sent home by these Pakistanis constituted 54 percent of the total country’s remittances in 2025 alone. These inflows help stabilize Pakistan’s balance of payments, stabilizes the rupee and contributes to macroeconomic stability. Remittance inflows play a critical role in Pakistan’s socio-economic uplift, where the recipients enjoy access to better health, education and housing facilities. The foreign remittances account for nearly 10 percent of household income in many rural areas across Pakistan. Subsequently any disruption arising from the continued US-Iran conflict would significantly undermine this flow - either through job losses or shaky economic conditions in the host countries of Gulf region. Such a decline would have serious repercussions for Pakistan’s already fragile economy, in which remittances serve as a vital lifeline.
Simultaneously, the continued instability could result in the return of the expatriate workforce from the Gulf region. Unemployment is a serious problem in Pakistan where 44.9 percent of those looking for jobs are aged 15-24.Additionally, On top of that, part of Pakistan’s population constitutes the sixth largest workforce globally with a labor force of 71.8 million - and the majority of this force is unemployed. In such a scenario, the return of the workforce from the Gulf countries could increase the ratio of unemployment to unprecedented levels, further aggravating Islamabad’s economic woes.
Pakistan's three front security challenge
A second major factor shaping Pakistan’s role was the complex geostrategic environment surrounding Islamabad. Pakistan continues to face persistent security challenges along its eastern border with India, characterized by periodic escalations and an enduring state of mistrust. The May 2025 standoff brought the two neighbors into dangerous escalation, raising concerns about a potential nuclear confrontation. US President Trump facilitated a ceasefire between the two, which still holds, however, it is extremely fragile. Simultaneously, Islamabad is in “open war” with Afghanistan on its western border over the issue of the Afghan Taliban providing sanctuary to the Tehrik-i-Taliban Pakistan (TTP) – an outlawed militant group responsible for the majority of terrorist attacks in Pakistan.In such a scenario, Islamabad is keen wants to maintain a ‘peaceful status quo’ along its border with Iran to avoid a three front crisis.
A continued US-Iran war could have destabilized Iran internally, potentially leading to refugee flows, cross-border insurgency, or even unintended military incidents along the Pakistan-Iran border. Therefore, prospects of a ‘three-fronts’ challenge, India in the East, Afghanistan in the West and destabilized Iran in the Southwest could stretch Pakistan’s security and economic resources beyond capacity.
Pakistan’s energy security imperatives
Energy security constitutes the third critical dimension of Pakistan’s interests in mediating the conflict between Washington and Tehran. As a net energy importer that depends on the Gulf for approximately 80 percent of its crude oil and almost all of its liquefied natural gas (LNG), Pakistan’s economic stability is highly vulnerable to any regional upheaval. LNG accounts for more than 21 percent of Pakistan’s power generation. According to energy analytics firm Kpler, Qatar and the UAE together account for 99 percent of Pakistan’s LNG imports.
As a consequence of the US-Iran conflict, the Strait of Hormuz has remained closed for almost 8 weeks, resulting in disruption of shipping and supply routes and leading to skyrocketing fuel prices. As a result, in Pakistan, domestic inflation, already high due to structural weaknesses, has surged further. Rising petroleum prices have cascading affects across the economy, increasing transportation costs for ordinary commuters, raising electricity generation expenses and constraining industrial output. For Pakistan, which is already coping with energy shortages, circular debts in the power sector, and tight fiscal space, such shocks can pose serious challenges. Escalating energy costs strain public finances, can drive inflationary trends, dampen productivity and hence increase public frustration leading to social discontent and state-society trust deficit. Through initiating and pursuing the peace dialogues between Washington and Tehran, Pakistan has effectively protected its energy lifeline.
Taken together, these factors illustrate that Pakistan’s mediation efforts were deeply rooted in pragmatic considerations rather than purely normative commitments. Along with preservation of regional and global peace, the safety of its expatriate population, the preservation of remittance inflows, the avoidance of multi-front security pressures, and the protection of energy supplies all converged to create a compelling incentive for Islamabad to play a constructive diplomatic role.
