Prime Minister Shehbaz Sharif said Pakistan is acting as a mediator between the U.S. and Iran to facilitate cease-fire talks.

The diplomatic effort comes as Pakistan faces severe economic pressure from rising oil import costs linked to the conflict between the two powers. By positioning itself as a neutral conduit, Islamabad aims to stabilize regional volatility that threatens its domestic financial stability.

During a cabinet meeting in Islamabad on April 6, Sharif addressed the impact of the geopolitical tension. "The war between the United States and Iran is dealing a serious blow to our economy," Sharif said [1]. He specifically highlighted how the conflict has inflated the nation's oil import bills [1].

The mediation efforts expanded throughout early April, including a regional mediation summit in Doha, Qatar [2]. Reports indicate that the diplomatic push resulted in a cease-fire between the U.S. and Iran lasting two weeks [3].

International reactions to Pakistan's role have been divided. Iran’s Foreign Minister Seyed Abbas Araghchi said he was grateful for the trust placed in Pakistan by both sides [4]. Similarly, some reporting described Pakistan as a crucial conduit between Washington and Tehran [5].

However, not all regional actors viewed the mediation as legitimate. Israel rejected Pakistan’s role as a mediator, saying the country is not a credible player in the process [6]. Despite this, sources indicated that both the U.S. and Iran trusted Pakistan to facilitate the short-term truce [3].

Sharif has framed the mediation as a necessity for Pakistan's survival, linking regional peace directly to the reduction of economic burdens on the Pakistani people [1].

"The war between the United States and Iran is dealing a serious blow to our economy,"

Pakistan's attempt to mediate between the U.S. and Iran reflects a strategic shift to leverage its diplomatic ties to mitigate domestic economic crises. While a two-week cease-fire suggests a tactical success, the lack of consensus among other regional powers like Israel indicates that Pakistan's role as a neutral arbiter remains contested on the global stage.