New Delhi, April 5 (ANI): Former Indian Ambassador to the UAE Sunjay Sudhir gave a blunt assessment of Pakistan’s role in the Iran–US situation, saying Islamabad was never a mediator but “a messenger at best.” Speaking to ANI, he pointed to a growing “trust deficit” and financial strain that are isolating Pakistan diplomatically.
“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, arguing that Pakistan’s claims of mediating the dispute were exaggerated. Reports indicate Iran refused to meet any US-led delegation on Pakistani soil, with the Wall Street Journal saying Tehran called US demands “unacceptable,” effectively sidelining Islamabad’s diplomatic efforts.
Sudhir linked the diplomatic setback to Pakistan’s economic vulnerabilities. He noted his experience in the UAE and said while the UAE had been considerate on debt repayment, there is a limit: sovereign loans must eventually be repaid. Recent reports say Pakistan will return USD 3.5 billion to the UAE before month-end, a move described by a Pakistani official to Dawn as upholding “national dignity” despite likely harm to foreign exchange reserves.
The funds were part of external support extended in 2019 through the Abu Dhabi Fund for Development to stabilise Pakistan’s balance of payments. Pakistan is currently under an IMF programme that requires roughly USD 12.5 billion in rollovers from partners including China, Saudi Arabia, and the UAE to maintain reserves and meet external financing needs. Dawn reports Pakistan’s central bank reserves are about USD 16.3 billion; repaying around USD 3 billion could cut reserves by nearly 18 percent, weakening the external buffer and import cover.
Economic analysts warn the repayment could increase pressure on Pakistan’s currency and complicate its IMF programme if not offset by fresh inflows; no immediate replacement financing has been indicated. The combination of diplomatic rejection by Iran and financial pressure from the UAE suggests a shrinking space for Pakistan to manoeuvre in West Asian geopolitics. (ANI)
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