This study examines Pakistan's changing role amid Riyadh and Tehran's geopolitical and geoeconomic competition. It debunks the claim that Saudi Arabia and Iran's rivalry has long caused sectarian strife and economic and security problems in Pakistan. Pakistan's leadership has determined to prevent sectarian and supremacy tussles between the two Middle Eastern powers and to reduce tension diplomatically. Saudi Arabia and Iran's competition has affected not only Middle Eastern governments but also Pakistan, which faces internal and external issues. Pakistan's connections with Iran and Saudi Arabia are geopolitical and geoeconomic necessities. This conundrum has led Pakistan to act as an arbitrator between Saudi Arabia and Iran in its foreign policy. This research examines Middle East political tensions from 2015 to 2021 to determine Pakistan's evolving role from neutral to mediatory. The study paper analyses how Pakistan, while protecting its national interests, helped reduce Tehran and Riyadh's animosity from 2016 onwards when tension escalated.