Pakistan's growing contradiction in its Israel policy has come under fresh scrutiny, with a new report revealing that Islamabad's formal non-recognition of Israel coexists with deepening engagement inside American defence, financial, and diplomatic networks whose key personnel carry significant Israeli connections. The findings, published in Eurasia Review, document how the absence of bilateral diplomatic ties does not prevent Pakistani institutions from entering international corporate and political structures with Israeli intersections.

The Powerus MoU and Its Israeli Connections

On 16 September 2026, US defence technology company Powerus announced a Memorandum of Understanding with the Pakistan Army covering unmanned and autonomous systems. The company also disclosed that it had received an initial, undisclosed order for unmanned aerial systems and expressed interest in longer-term joint ventures and technology cooperation. Pakistan's military confirmed that procurement discussions were underway, though it did not publicly acknowledge the MoU itself, according to the report.

Crucially, Powerus carries direct Israeli lineage at its founding level. The company's co-founder and Chief Vision Officer, Ziv Marom, is identified as an Israel Defence Forces (IDF) veteran and founder of Kaizen Aerospace, the autonomous-aircraft business now integrated into the Powerus group. Co-founder Michael Sinensky and founding-team executive Amy Bove are listed among the leadership of Israel Friends, while Brett Velicovich, the Powerus President who led the company's engagement with Pakistan, appears among Israel Friends' 'Key Community Leaders', the report noted.

Pakistan's Stated Position on Israel

Pakistan officially maintains that it does not recognise Israel and has consistently backed an independent Palestinian state based on pre-1967 borders, with East Jerusalem as its capital. In 2025, Pakistan's Foreign Office went further, stating that the country does not engage with Israel even in multilateral forums. That declaration now sits in visible tension with the Powerus episode.

As the Eurasia Review report observed: 'Pakistan's formal non-recognition of Israel now exists alongside engagement with American defence firms, financial ventures and diplomatic networks whose personnel and commercial relationships also intersect significantly with Israel.'

A Pattern of Pro-Engagement Episodes

The report noted that individuals seen as favouring engagement with Tel Aviv have periodically surfaced within official and semi-official Pakistani circles. Analysts stress that such episodes may not amount to a formal policy shift but they expose the widening gap between Islamabad's declared diplomatic stance and the controversies triggered when pro-engagement figures gain access to state delegations or senior officials.

This is not the first time Pakistan's opaque engagement architecture has drawn international attention. Islamabad's expanding outreach to American political, business, and security circles has evolved into what the report describes as a 'wider and increasingly intricate network', with many of those connections also intersecting — directly or indirectly — with Israeli-linked individuals and organisations.

Why This Matters Beyond Diplomacy

For Pakistan, the reputational stakes are high domestically. Public opinion remains strongly pro-Palestinian, and any perceived normalisation with Israel — even through commercial proxies — carries political risk for the civilian government and the military alike. The Powerus MoU surfaces at a moment when Pakistan-US defence ties are being recalibrated, adding a further layer of complexity to how Islamabad manages its competing interests. How Pakistan responds to the scrutiny generated by the Eurasia Review report is likely to shape expectations around whether any formal policy evolution is being quietly contemplated.