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Pakistan’s Foreign Policy in 2025
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Pakistan’s Foreign Policy in 2025: Focus on Economy and Regional Stability

Anum Malik
Last updated: August 7, 2025 8:34 pm
Anum Malik
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Pakistan’s foreign policy today is navigating a complex period. The country faces many challenges but also sees new opportunities. As the world changes rapidly, Pakistan is adapting and responding to these shifts. In 2025, its foreign policy is mainly focused on economic diplomacy, maintaining neutrality in global rivalries, and promoting peace and stability in South Asia.

Contents
Key Features of Pakistan’s Current Foreign PolicyEconomic Diplomacy FirstBalanced Ties with Big PowersPeace and Stability in the RegionPakistan’s Foreign Policy Goals in 2025Challenges in the Current Foreign PolicyThe Role of Pakistan’s Diaspora and DiplomatsImplications for South Asian PoliticsConclusionThe author, anum malik is affiliated with the State News Agency and contributes her research to the think tank, CDS.*The views and opinions expressed herein, and any references, are those of the author and do not necessarily reflect the editorial policy of the Centre for Development and Stability (CDS).

Foreign policy refers to how a country manages its relationships with other nations. It includes ties with neighbors, trade agreements, peace efforts, and cooperation with global powers like China and the United States. In the past, Pakistan’s foreign policy was largely centered on security and defense, especially due to its long-standing conflict with India and its close partnership with the U.S. during the Cold War and the War on Terror.

Now, Pakistan is shifting its approach. The current government is placing more emphasis on economic stability, regional cooperation, and independent decision-making, rather than simply aligning with global superpowers.

Key Features of Pakistan’s Current Foreign Policy

Pakistan’s Current Foreign Policy

Economic Diplomacy First

Pakistan is facing serious economic problems, including high inflation, external debt, and low foreign investment. To fix these problems, the country is using foreign policy to build economic partnerships. The aim is to attract foreign investment, create jobs, and improve trade.

Prime Minister Shehbaz Sharif and Foreign Minister Ishaq Dar are holding regular meetings with leaders from the Gulf countries, China, Central Asia, and even Russia. Pakistan has also signed trade deals with Saudi Arabia, UAE, China, and Turkmenistan. The focus is on energy, infrastructure, and transport.

One example is the recent $25 billion investment deal with Saudi Arabia, including energy and mining projects. Similarly, Pakistan is working on expanding the China-Pakistan Economic Corridor (CPEC), which is a big part of China’s Belt and Road Initiative.

Balanced Ties with Big Powers

Pakistan is trying to keep a balance between powerful countries like China, the United States, Russia, and the European Union. It has deep economic and defense ties with China but also wants to keep relations with the U.S. steady.

Pakistan is no longer taking sides in great power rivalries. For example, during the Ukraine war, Pakistan stayed neutral. This shows a shift from the past, where Pakistan was usually aligned with the West. Now, the foreign office says Pakistan’s goal is geo-economics, not geopolitics.

Pakistan is also improving ties with Russia, especially in energy. Russian oil deliveries to Pakistan began earlier this year. At the same time, Pakistan is working with Western countries on climate change, education, and democratic reforms.

Peace and Stability in the Region

Pakistan knows that peace in South Asia is important for its own progress. That’s why the government is working for peaceful relations with neighbors like Afghanistan, India, Iran, and Central Asia.

In Afghanistan, Pakistan has faced challenges with the Taliban government. Border tensions and terror attacks have made the relationship difficult. However, Pakistan continues to talk with Afghan leaders and supports peace and security in the region.

With India, relations are still frozen due to the Kashmir issue and rising Hindu nationalism under Prime Minister Narendra Modi. Pakistan has made it clear that talks can happen if India takes steps to improve conditions in Indian-administered Kashmir. Pakistan has also raised the Kashmir issue at the United Nations and Organization of Islamic Cooperation (OIC).

With Iran, Pakistan is balancing its ties carefully. The two countries recently agreed to joint border security patrols and are discussing energy cooperation.

Pakistan’s Foreign Policy Goals in 2025

Pakistan’s Foreign Policy Goals in 2025

Here are the main goals of Pakistan’s foreign policy today:

  • Improve trade and economic partnerships
  • Stay neutral in global conflicts
  • Protect national security
  • Promote peace in South Asia
  • Support the rights of Kashmiris
  • Strengthen ties with Muslim countries
  • Help with climate change solutions and education reforms

Challenges in the Current Foreign Policy

Pakistan’s foreign policy is working in the right direction, but there are many challenges included as:

  • Economic Instability: Without internal reforms, foreign investors may hesitate to invest in Pakistan.
  • Border Security: Tensions on the western border with Afghanistan and terrorism inside Pakistan are big concerns.
  • India Relations: With Modi’s current policies, it is hard to expect peace talks between Pakistan and India soon.
  • Global Power Shifts: The growing competition between China and the U.S. could pressure Pakistan to take sides.
  • Regional Conflicts: The situation in Gaza and the Middle East could affect Pakistan’s ties with Western allies if public opinion becomes very critical.

The Role of Pakistan’s Diaspora and Diplomats

Pakistan’s foreign ministry is also engaging with its overseas communities. Millions of Pakistanis live in the Gulf, Europe, and North America. Their remittances help Pakistan’s economy. The government is encouraging the diaspora to invest in Pakistan’s development projects.

Pakistani diplomats are now trained to promote economic opportunities, not just political ties. They are focusing on building Pakistan’s image as a safe place for business and tourism.

Implications for South Asian Politics

Implications for South Asian Politics

Pakistan’s foreign policy shift will impact the whole South Asian region.

First, the focus on economic diplomacy might push other South Asian countries like Bangladesh, Sri Lanka, and Nepal to build similar policies. Countries may form new economic alliances that do not depend on India or China alone.

Second, if Pakistan and India remain on bad terms, South Asia may continue to stay divided. Peace and progress in the region depend on how these two nuclear-armed neighbors manage their differences. Without dialogue, people in both countries will continue to suffer from poverty and underdevelopment.

Third, Pakistan’s improved ties with Iran and Central Asia can open new trade routes and energy pipelines. This can reduce dependence on traditional sea routes and offer landlocked countries like Uzbekistan and Turkmenistan access to ports like Gwadar.

Fourth, Pakistan’s support for Palestine and Kashmir keeps the human rights agenda alive in South Asia. It may also inspire new people’s movements in the region for freedom, justice, and democracy.

Finally, as Pakistan remains non-aligned in global politics, it may become a bridge between East and West, a neutral player who can mediate in global crises. This can raise Pakistan’s importance in international diplomacy.

Conclusion

Pakistan’s foreign policy in 2025 shows a smart shift from old ways. By focusing on economic development, regional peace, and global balance, Pakistan is trying to build a stronger future. However, real success depends on internal reforms, smart leadership, and stable regional conditions.

The choices Pakistan makes now will not only shape its own future but also influence the direction of South Asia. In a world full of conflict and change, Pakistan has a chance to become a voice of reason, peace, and progress, if it stays on this balanced path.

The author, anum malik is affiliated with the State News Agency and contributes her research to the think tank, CDS.
*The views and opinions expressed herein, and any references, are those of the author and do not necessarily reflect the editorial policy of the Centre for Development and Stability (CDS).
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