Former Indian envoy to the UAE Sunjay Sudhir gave a blunt assessment of Pakistan’s role in recent Iran–US tensions, telling ANI that Islamabad never acted as a mediator and was “a messenger at best.” He argued there is a growing “trust deficit” around Pakistan and that its economic strains are eroding its diplomatic space. “Mediation means that both parties are sitting with you—that never happened. So the thing is that the bluff has been called off by Iran,” Sudhir said.
Reports say Iran refused to meet any US-led delegation on Pakistani soil, with the Wall Street Journal quoting Tehran as calling US demands “unacceptable,” effectively sidelining Pakistan’s diplomatic efforts. Sudhir linked this setback to Pakistan’s fiscal vulnerabilities and its dependence on external support.
Recent reporting indicates Pakistan will return about USD 3.5 billion to the UAE before month-end. Those funds originally came in 2019 through the Abu Dhabi Fund for Development to stabilise Pakistan’s balance of payments. Pakistan is currently on an IMF programme that requires roughly USD 12.5 billion in rollovers from partners such as China, Saudi Arabia and the UAE. With central bank reserves around USD 16.3 billion, repaying roughly USD 3 billion could trim reserves by nearly 18 percent, weakening the external buffer and import cover.
Economic analysts warn that this repayment, unless offset by fresh inflows, could add pressure on Pakistan’s currency and complicate its IMF programme. The combination of diplomatic rebuffs from Tehran and financial pressure from creditors suggests a narrowing room for Pakistan to manoeuvre in West Asian geopolitics. Source: ANI (syndicated feed).
