Pakistan leverages China‑US rivalry to maximise strategic value

The study argues that Pakistan’s foreign‑policy playbook is built around a balancing act that goes far beyond simple diplomatic mediation. By participating in the Iran‑US standoff and facilitating negotiations that briefly reopened the Hormuz Strait, Islamabad proved it can act as a hedge against larger powers.

Furthermore, the report notes that after the Iran crisis, Pakistan allegedly asked the United States to set up a $10 billion foreign‑exchange stabilization fund. The move turned geopolitical relevance into economic aid while keeping Beijing at arm’s length. Analysts conclude that Pakistan’s strategy is to squeeze maximum strategic importance out of both the United States and China, positioning itself as an indispensable regional intermediary.