Islamabad Backs Diplomacy on Iran as US Intensifies Economic Campaign

ISLAMABAD: Pakistan has adopted a cautious position on Washington’s intensified economic campaign against Iran, saying its bilateral trade with Tehran remains governed by international law and existing agreements while Islamabad continues diplomatic efforts aimed at easing the wider US-Iran standoff.

Pakistan Defends Existing Trade Framework With Iran

Foreign Office spokesperson Tahir Andrabi, speaking at the weekly media briefing on Thursday, said Pakistan was conducting trade with neighbouring Iran in accordance with its international obligations.

“About trade with Iran, Pakistan is following international law and our bilateral trade agreements with Iran,” Andrabi said. “As such, our trade remains in consonance with our obligations.”

The remarks came after the United States launched “Operation Economic Outcast,” a new campaign designed to increase economic pressure on Iran and those facilitating its international commercial and financial links.

The US Department of the Treasury⁠ said the campaign expands potential secondary-sanctions exposure related to five sectors of the Iranian economy digital assets, technology, gold, aviation and shipping. The US also announced action against nearly 60 Iran-linked entities, individuals and vessels.

Washington has warned foreign governments, companies and financial institutions of consequences if identified Iran-related activities continue. Treasury Secretary Scott Bessent said countries would be given timelines to address activities identified by Washington, while entities involved in certain transactions could face restrictions involving the US financial system.

Islamabad Signals Preference for Negotiated Resolution

Pakistan, however, stopped short of directly challenging Washington’s measures. Instead, Islamabad anchored its position in international law while signalling that economic disagreements should ultimately be addressed as part of a negotiated settlement between Washington and Tehran.

Andrabi said Pakistan hoped economic matters would eventually form part of a broader resolution of the US-Iran dispute, adding that Islamabad remained engaged in its mediation efforts.

Pakistan has emerged as one of the regional actors attempting to keep diplomatic channels open between the two sides. Earlier this week, Chief of Defence Forces and Army Chief Field Marshal Syed Asim Munir visited Tehran as Islamabad stepped up efforts to reduce tensions and revive negotiations.

Reuters reported that Pakistani and Iranian officials described significant progress during the Tehran engagement, with discussions focusing on de-escalation and the Strait of Hormuz.

Pakistan Pushes for Strait of Hormuz De-escalation

The Foreign Office also expressed optimism over diplomatic activity surrounding the strategic waterway.

Andrabi said renewed efforts regarding the Strait of Hormuz had taken place during Field Marshal Munir’s Iran visit and that Pakistan remained hopeful momentum could be generated towards reopening it.

Iran, meanwhile, has been discussing arrangements surrounding navigation with regional mediators. Iranian security official Mohsen Rezaei said Tehran was preparing conditions for reopening the Strait of Hormuz, while discussions with Oman have included a possible shipping corridor.

The waterway remains critical to international energy markets and regional commerce, making its reopening one of the most consequential elements of efforts to ease the current confrontation.

Pakistan Rejects Reports of US-Directed Iran Visit

Islamabad also rejected reports portraying Munir’s Tehran visit as having been undertaken at Washington’s request or on behalf of the US president.

Andrabi described such reports as “misleading” and “not factually correct,” maintaining that the trip took place within Pakistan’s own mediation initiative. Pakistan has publicly positioned its diplomatic engagement as an effort to reduce regional tensions rather than representing either Washington or Tehran.

The latest developments highlight the diplomatic balance confronting Islamabad: maintaining relations with the United States while preserving longstanding economic, geographic and diplomatic ties with neighbouring Iran.

Afghanistan Dialogue Tied to Verifiable Action

Separately, the Foreign Office said Pakistan remained open to state-level dialogue with Afghanistan but made clear that any new bilateral mechanism would have to produce tangible and verifiable results on Islamabad’s security concerns.

The statement followed a proposal by Afghan Interior Minister Sirajuddin Haqqani for dedicated mechanisms between Kabul and Islamabad to improve coordination on contentious bilateral issues.

Andrabi said Pakistan had taken note of the proposal but stressed that the sustainability of such a mechanism would depend on action rather than assurances.

Islamabad wants Afghan authorities to ensure that their territory is not used for cross-border militant activity and says institutional coordination must produce measurable results.

The Foreign Office said Pakistan remained prepared for institutional engagement covering security and border management, provided that cooperation resulted in effective and verifiable measures.

The position suggests Islamabad is leaving the diplomatic channel with Kabul open while making progress on security concerns a central condition for any sustained improvement in bilateral relations.