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Home Analysis

Diplomacy That Delivers: Pakistan’s Strategic Outreach Under Ishaq Dar

Dr Rana Khalid Mehmood

July 30, 2025
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Diplomacy That Delivers: Pakistan’s Strategic Outreach Under Ishaq Dar
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In the span of just a few weeks this July, Pakistan has demonstrated that effective diplomacy lies not in rewriting foreign policy doctrines, but in executing existing priorities with clarity and purpose. Under the leadership of Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar, Islamabad is leveraging its longstanding foreign policy goals—regional connectivity, trade expansion, and multilateral cooperation—to deliver tangible outcomes. From renewed trade momentum in Southeast Asia to transit agreements with Central Asia, and from strategic reaffirmations with China to the restoration of aviation ties with Europe, Pakistan is showing that diplomacy, when aligned with economic strategy and backed by institutional reform, can be a powerful tool of national resurgence.

When the current government, led by Prime Minister Shehbaz Sharif, took office in 2022 and again after elections in 2024, it inherited a foreign policy apparatus marred by inertia, missed opportunities, and a credibility deficit on multiple fronts. Key partners had grown distant, trade remained underutilised, and Pakistan was largely absent from critical regional initiatives. Three years later, the country’s diplomatic calendar tells a different story: one of renewed relevance and purposeful engagement.

Strategic Diplomacy with Economic Focus

At the heart of this transformation is a deliberate pivot towards economic diplomacy. This July alone, Pakistan’s high-level engagements in Malaysia, Afghanistan, Uzbekistan, and China point to a clear pattern: Islamabad is leveraging diplomacy not merely for political signalling, but to advance tangible economic outcomes — trade deals, infrastructure corridors, market access, and regional connectivity.

Nowhere is this more evident than in Pakistan’s outreach to Malaysia and the broader ASEAN region. The 11 July meeting between Deputy Prime Minister and Foreign Minister Ishaq Dar and Malaysian Prime Minister Anwar Ibrahim wasn’t just a ceremonial gesture. It served to re-anchor Pakistan’s relevance in Southeast Asia, a region that is increasingly shaping the global economic architecture.

The growth in Pakistan-Malaysia trade — up 25 per cent to USD 1.76 billion — is a promising sign. But more strategically important is Malaysia’s backing for Pakistan’s deeper engagement with ASEAN, a bloc of over 670 million consumers. For years, Pakistan has remained a peripheral player in this vital region. Now, with upgraded trade agreements, enhanced halal exports, and a planned Malaysian trade office in Karachi, Islamabad is positioning itself as a competitive player in regional supply chains — especially in sectors like agriculture, halal meat, and textiles.

These diplomatic efforts constitute the groundwork for regional integration, the kind that could help Pakistan diversify its exports and reduce reliance on traditional, stagnant trade partnerships.

Connectivity as a Foreign Policy Pillar

The trilateral agreement signed in Kabul on 17 July for the Uzbekistan–Afghanistan–Pakistan (UAP) Railway Project is another example of Pakistan turning geography into strategy. For decades, Pakistan has touted its location as a “bridge” between Central Asia and the Arabian Sea. But until now, little concrete progress had been made in transforming that rhetoric into reality.

The UAP project, by promising shorter, more cost-efficient trade routes, could rewire the economic map of the region. For landlocked Central Asian nations, it offers a corridor to the sea. For Pakistan, it cements its role as a regional transit hub, turning cross-border logistics into a source of both revenue and influence.

That Islamabad, Kabul, and Tashkent could agree on a framework in today’s volatile political climate is a diplomatic achievement in itself. But the real victory lies in aligning this infrastructure vision with broader regional peace-building goals. By tying Afghanistan into economic interdependence with its neighbours, Pakistan is backing a strategy of development-led stability — an approach that has long eluded regional efforts.

Anchoring in China, Without Overdependence

In Tianjin on 16 July, Pakistan reaffirmed its most critical strategic partnership: its alliance with China. The bilateral between Ishaq Dar and Foreign Minister Wang Yi on the sidelines of the SCO summit was a reaffirmation of the China–Pakistan Economic Corridor (CPEC) and the wider Belt and Road Initiative (BRI) framework.

But what makes this meeting notable is not just the ritualistic nod to “all-weather friendship,” but the shared recognition that CPEC must evolve. With Phase II focusing on industrialisation, energy cooperation, and socio-economic uplift, both sides appear committed to transitioning from infrastructure-heavy projects to value-added development.

This shift matters. For years, critics warned that Pakistan was becoming overly reliant on Chinese loans and projects. But recent signals—from prioritising Special Economic Zones (SEZs) to exploring technology and green energy cooperation—suggest a more balanced and diversified partnership. One that still values strategic depth but is increasingly oriented towards economic sustainability and regional integration.

PIA: A Silent Victory

While high-profile summits dominate headlines, some of Pakistan’s most meaningful diplomatic wins are happening in the regulatory and institutional domains. The lifting of the UK’s ban on Pakistan International Airlines (PIA) is one such example.

PIA flights to Europe and the UK were suspended in 2020 after a damning statement by Pakistan’s then aviation minister, who claimed in parliament that a large number of Pakistani pilots held “dubious” or fake licenses. The European Union Aviation Safety Agency (EASA) and the UK’s Civil Aviation Authority swiftly banned PIA from operating in their airspaces, citing serious concerns over safety and regulatory oversight.

For the first time in years, Pakistan is not reacting to crises but shaping opportunities. By engaging with ASEAN, Central Asia, and China while also repairing relations with Europe, Islamabad is building a multipolar web of partnerships.

Restoring these routes required more than just diplomatic lobbying; it demanded deep, technical compliance with international aviation standards. The turning point came during Prime Minister Shehbaz Sharif’s previous tenure (2022–23), when the government introduced three key legislative reforms to align Pakistan’s aviation sector with the standards of the International Civil Aviation Organisation (ICAO). These included laws strengthening the independence and capacity of the Civil Aviation Authority and enhancing transparency in pilot licensing protocols.

These reforms paid off. In November 2024, PIA regained access to European airspace. And now, in July 2025, the United Kingdom has officially lifted its ban, marking a full reversal of what had become a symbol of institutional decay and global mistrust.

This development, while technical in nature, has far-reaching implications. It restores confidence in Pakistan’s regulatory institutions, reopens vital air routes for trade and diaspora connectivity, and signals to international partners that Pakistan is capable of meeting and sustaining global standards when reforms are pursued seriously. It is a clear example of how competent diplomacy, when supported by governance reforms, can repair reputational damage and translate into strategic wins.

A Broader Reset in Global Perception

Together, these developments reflect more than just isolated diplomatic wins. They mark a systematic foreign policy reset, rooted in economic pragmatism, regional connectivity, and institutional reform. Unlike past cycles of hyper-nationalism or reactive diplomacy, the current trajectory is deliberate and strategic, driven by long-term national interest rather than short-term optics.

For the first time in years, Pakistan is not reacting to crises but shaping opportunities. By engaging with ASEAN, Central Asia, and China while also repairing relations with Europe, Islamabad is building a multipolar web of partnerships, a necessary move in a world where no single alliance guarantees economic resilience or diplomatic influence.

There is still a long way to go. Implementation will be key, and geopolitical volatility remains a constant threat. But for now, the arc of Pakistan’s foreign policy is bending toward relevance, rationality, and results. And in the current global order, that’s no small achievement.

 

 

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