Can Pakistan cash in on its diplomatic clout?

Pakistan's growing diplomatic and strategic clout is no longer in question. The more important question now is whether the country can turn that influence into something tangible at home. That may sound like an unusual way to judge foreign policy. But Pakistan has been here before. Its geography, military strength and relationships with major powers have repeatedly made it relevant during wars, crises and geopolitical realignments. What has remained elusive is the ability to convert that relevance into lasting economic gains.

The current situation offers another opportunity. Pakistan today has strong ties with Saudi Arabia and Türkiye under the Makkah pact while retaining an important relationship with Iran. At the same time, its ties with the US have seen a marked improvement. Islamabad is also involved in efforts to find a diplomatic way out of the Iran-US confrontation. The recent Tehran meeting involving Field Marshal Asim Munir, Saudi Defence Minister Prince Khalid bin Salman and Turkish intelligence chief Ibrahim Kalin underlined how much the regional equation has changed. Pakistan is no longer trying simply to navigate the traditional Saudi-Iran rivalry. It is working with countries across those old divides. The Makkah pact has added another dimension. What began as a collective defence arrangement between Pakistan, Saudi Arabia and Türkiye could potentially evolve into something wider. Pakistani officials have publicly indicated that there is no bar on other countries, including Iran, joining the arrangement provided there is political agreement.

There is little doubt that all this has enhanced Pakistan's diplomatic relevance. But relevance alone does not pay the bills. This is where Islamabad needs to look beyond the immediate diplomatic gains. Saudi Arabia and other Gulf countries have long been crucial sources of remittances and financial support for Pakistan. Whenever Islamabad has faced a balance-of-payments crisis, friendly countries have stepped in with deposits, deferred oil facilities and other assistance. That model has run its course. If Pakistan now enjoys greater political capital in Riyadh, Ankara and Washington, it should be asking how that can translate into investment, market access, technology, jobs and greater trade.

The objective cannot simply be another deposit at the State Bank or another bailout. There is an uncomfortable domestic reality that makes this question even more urgent. The latest World Bank assessment shows Pakistan's national poverty rate rising from 22% in 2018-19 to 29% in 2024-25. Around 70 million Pakistanis are estimated to be living in poverty. Across the border, India has moved in the opposite direction. World Bank data shows that poverty there has fallen significantly over the past decade. India has its own inequalities and enormous development challenges, but the direction of travel matters.

For Pakistan, that contrast should be sobering. For years, we have taken pride in the country's ability to punch above its weight internationally. There is some justification for that. Few countries with Pakistan's economic vulnerabilities could maintain relationships with Saudi Arabia, Iran, Türkiye, China, Russia and the US at the same time, particularly in such a polarised geopolitical environment. But there is also something fundamentally wrong when a country's external influence continues to outstrip its economic performance at home.

Foreign policy cannot be detached from that reality. Ultimately, its success cannot be measured only by access to powerful capitals, mediation efforts or Pakistan's seat at important regional tables. It must also create economic opportunities for the country it is meant to serve. Pakistan has diplomatic capital today. It should use it while the opportunity lasts. Because if poverty continues to rise, growth remains anaemic and millions of young Pakistanis struggle to find decent jobs, the distinction between foreign policy success and national success will become increasingly difficult to ignore.