Pakistan finds itself in a precarious diplomatic position after Prime Minister Shehbaz Sharif hosted high-level US-Iran negotiations in Islamabad on April 11 — the most significant direct talks between Washington and Tehran since the 1979 Iranian Revolution — while simultaneously deploying Pakistan Air Force aircraft to Saudi Arabia's King Abdulaziz Air Base under a Strategic Mutual Defence Agreement (SMDA) signed with Riyadh in September 2025. The SMDA commits both countries to treating an act of aggression against one as an act against the other, a particularly sensitive obligation given Iran's prior strikes on Saudi territory before a ceasefire took effect. With that ceasefire set to expire on April 22 and a US naval blockade of Iranian ports now in place, analysts warn that Pakistan's dual role as mediator and Saudi defence partner could become untenable if hostilities resume.
Mosaic News
Pakistan navigates US-Iran mediation while honouring Saudi defence pact[Updated]
Saudi Arabia has transferred $2 billion to Pakistan's State Bank as of April 15, part of a broader financial package in which Riyadh also pledged an additional $3 billion in fresh deposits and extended its existing $5 billion facility for a longer fixed term, ending the previous annual rollover arrangement. The injections come as Pakistan faces urgent pressure on its foreign reserves, which stood at $16.4 billion as of late March, with a $3.5 billion UAE loan repayment due this month after Islamabad failed to secure a rollover agreement with Abu Dhabi. Prime Minister Sharif, who met Saudi Crown Prince Mohammed bin Salman in Jeddah before travelling to Medina, has now departed for Doha, where he is scheduled to hold bilateral talks with Qatari Emir Sheikh Tamim bin Hamad Al Thani.