Abstract
Purpose: This paper aims to explore the current chaotic condition of the Middle East that was fueled by the traditional competition between Saudi Arabia and Iran. s state and society in every field of life.
 Principal Findings: The paper argues that the Saudi-Iran’s sectarian proxy warfare in the Middle East is a means to counter each other’s regional influence that has adverse implications for the internal security of Pakistan that can destroy its economy as well.
 Methodology: This research is based on a qualitative approach and deductive method. The paper answers four main queries: To what extent the Iran–Saudi Rivalry a result of sectarian aspirations? How are both countries using proxy warfare methods in the region to realize their interests vis a vis each other? What is the role of external powers like the United States or Russia in proxy warfare? How does the competition between Iran and Saudi Arabia impact Pakistan?
 Applications: The study concludes that the outcome of the predicament in the Middle East has produced policy challenges for Pakistan vis-à- vis its relations with Saudi Arabia and Iran. The growing threats of sectarianism, violent extremism, domestic Polarization, and danger to the economic development of Pakistan make it an important player in this competition.
 Novelty: The traditional Conflict between Saudi and Iran affects the entire region of the Middle East. Sectarianism is one of the serious concerns of all Muslim countries today. It truly has both internal and external sources in other neighbouring Muslim states. Thus, this research provides an understanding to comprehend Pakistan’s internal and as well as external problems.
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