Pakistan’s foreign policy shift under the new government

Pakistan’s foreign policy is entering a more practical and economically focused phase under the coalition government led by Prime Minister Shehbaz Sharif. While traditional security concerns remain central, Islamabad is placing greater emphasis on trade, investment, energy cooperation, regional connectivity and diplomatic stability.

The policy adjustment comes at a time of serious domestic economic pressure and a rapidly changing international environment. Pakistan needs foreign exchange, stronger export markets, debt relief, energy partnerships and renewed investor confidence. These priorities are influencing its relations with China, Saudi Arabia, the United Arab Emirates, the United States, Afghanistan and neighboring countries.

This does not represent a complete break from the past. Pakistan continues to support strategic ties with Beijing, maintain a security-focused approach toward India and seek a stable relationship with Washington. The main change is the stronger connection between foreign policy and economic recovery.

From security diplomacy to economic diplomacy

For decades, Pakistan’s international relations were largely viewed through the lenses of national security, terrorism, Afghanistan and rivalry with India. Those issues remain important, but the new government is giving more visibility to what officials describe as economic diplomacy.

Economic diplomacy means using embassies, bilateral visits and international partnerships to attract investment, expand exports and support national development. Pakistan is seeking cooperation in agriculture, mining, information technology, renewable energy, infrastructure and manufacturing.

This approach is linked to the country’s need to stabilize its balance of payments and reduce dependence on emergency financial assistance. A successful foreign policy is increasingly being measured by its ability to produce trade opportunities, investment commitments, tourism links and employment.

The strategy also supports Pakistan’s efforts to improve its image overseas. Political uncertainty, security concerns and economic volatility have affected investor confidence. Regular diplomatic engagement and clear policy messaging are therefore being used to present Pakistan as a market with long-term potential.

China remains the strategic foundation

China continues to hold a special position in Pakistan’s foreign policy. The relationship includes defense cooperation, infrastructure development, energy projects and diplomatic coordination. The China-Pakistan Economic Corridor remains the most visible part of this partnership.

The new government has shown interest in moving CPEC into a more productive phase. Earlier projects focused heavily on power generation and transport infrastructure. The next stage is expected to emphasize industrial zones, agriculture, technology, minerals and export-oriented production.

Security is a major concern for Chinese nationals and companies working in Pakistan. Attacks involving Chinese citizens have placed pressure on Islamabad to strengthen protection measures and reassure Beijing. Progress in this area will affect the pace of future Chinese investment.

Pakistan also wants to avoid presenting its relationship with China as directed against any other country. Islamabad’s position is that cooperation with Beijing is based on national development, regional connectivity and long-term strategic interests.

Rebuilding ties with Gulf partners

Relations with Saudi Arabia, the United Arab Emirates and Qatar are becoming increasingly important because of their financial, energy and investment roles. Gulf states have historically supported Pakistan through deposits, deferred oil payments, aid and employment opportunities for Pakistani workers.

The new government is seeking to move beyond short-term financial support toward direct investment and joint ventures. Proposed cooperation includes mining, agriculture, renewable power, logistics, aviation, technology and special economic zones.

Saudi Arabia has shown interest in investment opportunities in Pakistan, including mineral resources and agriculture. The UAE remains a key partner in trade, remittances, ports and aviation. Qatar also remains relevant through energy cooperation and investment channels.

Pakistan must, however, convert announcements into transparent and commercially viable projects. Investors need clear regulations, reliable taxation policies, security guarantees and protection from abrupt administrative changes. Diplomatic goodwill can open doors, but implementation will determine the final results.

Relationship	Main priority	Key opportunity	Major concern
China	CPEC and strategic cooperation	Industry, technology and infrastructure	Security of Chinese personnel
Saudi Arabia	Investment and energy partnership	Mining, agriculture and financial support	Slow project execution
United Arab Emirates	Trade and investment	Logistics, ports, technology and remittances	Regulatory uncertainty
United States	Trade, climate and security dialogue	IT exports, education and market access	Strategic differences
Afghanistan	Border management and security	Transit trade and regional connectivity	Militancy and refugee pressure
India	Crisis management and regional stability	Limited trade potential	Kashmir and cross-border tensions

A careful reset with the United States

Pakistan’s relationship with the United States is also being handled with greater pragmatism. The two countries no longer share the same level of strategic alignment seen during earlier periods, yet their partnership remains significant.

Washington is important for Pakistan’s exports, especially textiles, information technology and agricultural products. The United States also influences international financial institutions and remains a major destination for the Pakistani diaspora. Cooperation in health, education, climate change and counterterrorism continues to provide areas for engagement.

Islamabad is likely to avoid framing the relationship as a military alliance. Instead, it is seeking a broader and more balanced partnership based on trade, investment, higher education, climate resilience and regional stability.

The relationship may still face difficulties. Pakistan and the United States have different views on Afghanistan, security priorities, human rights and relations with China. A realistic diplomatic approach will focus on shared interests while managing disagreements through regular dialogue.

Afghanistan and regional security

Afghanistan remains one of the most difficult foreign policy challenges for Pakistan. The Taliban government in Kabul is an important neighbor, but relations have been strained by attacks linked to the Tehreek-e-Taliban Pakistan and disputes over border management.

Pakistan wants Afghan authorities to prevent militant groups from using Afghan territory against Pakistan. Kabul has rejected or challenged some of Islamabad’s allegations, creating a cycle of diplomatic tension. Border closures and restrictions can disrupt trade, transit routes and the movement of people.

At the same time, Pakistan cannot ignore Afghanistan’s importance as a gateway to Central Asia. Improved road, rail and trade connections could support regional commerce and provide Pakistan with access to new markets. A stable Afghanistan would also reduce refugee pressure and security risks.

The government’s challenge is to combine firm security measures with continued diplomatic communication. Border controls, intelligence cooperation, refugee policy and trade arrangements will remain central parts of Pakistan-Afghanistan relations.

India, Iran and the wider neighborhood

Relations with India remain shaped by the Kashmir dispute, cross-border security concerns and limited political trust. The new government is expected to avoid unnecessary escalation while maintaining Pakistan’s stated position on Kashmir.

Trade and diplomatic contacts with India remain restricted, but regional economic realities create pressure for practical engagement. Any improvement would require progress on security issues and a political environment suitable for dialogue. For now, crisis management is more realistic than a major bilateral breakthrough.

Pakistan’s relationship with Iran has also gained importance. The two countries share a long border, cultural links and common concerns about smuggling and militancy. Energy cooperation and border markets offer economic possibilities, although international sanctions and security incidents complicate progress.

Pakistan is also looking toward Central Asia. Transit trade, electricity imports, regional rail links and access to Central Asian markets are part of its broader connectivity agenda. The country’s geography gives it potential value as a trade route, but infrastructure, security and political stability must improve for that potential to become commercial reality.

The pressures shaping the policy

Several forces will determine whether the foreign policy shift succeeds. The first is economic credibility. Foreign governments and investors will closely monitor Pakistan’s reforms, taxation system, energy sector and ability to honor commercial agreements.

The second is internal political stability. Changes in government, institutional disputes and protests can weaken diplomatic messaging. International partners generally prefer predictable policies and clearly authorized decisions.

The third is security. Terrorist attacks, attacks on foreign nationals and instability along the western border can discourage investment and damage regional cooperation. Stronger law enforcement and intelligence coordination are essential to the economic diplomacy agenda.

The fourth is balance. Pakistan wants to deepen ties with China and Gulf states while keeping functional relations with the United States and other international partners. It also seeks connectivity with Central Asia without becoming trapped in rival geopolitical blocs.

Priorities for Pakistan’s diplomatic strategy

• Turn investment announcements into transparent projects with clear timelines and public accountability.
• Improve security for foreign workers, diplomats, investors and infrastructure sites.
• Expand exports in information technology, agriculture, textiles, minerals and engineering goods.
• Maintain regular dialogue with Afghanistan while combining border security with trade facilitation.
• Use multilateral forums to strengthen cooperation on climate change, debt, food security and regional connectivity.

Pakistan’s foreign policy under the new government is therefore best understood as a recalibration rather than a dramatic realignment. Strategic partnerships remain in place, but economic survival and development now occupy a more prominent position in diplomatic decision-making.

The coming years will show whether this approach can deliver measurable gains. Investment, export growth, improved regional trade and stable relations would strengthen Pakistan’s international position. If promises remain limited to diplomatic visits and memorandums, public confidence will be harder to maintain.

Follow Bahria Sports for continuing coverage of Pakistan’s current affairs, foreign relations, regional developments, economy and international news.