In principle, Pakistan agreed to be part of the Islamic Military Alliance against Terrorism (IMAT) as it granted permission to its former army chief General (retd) Raheel Sharif to head the grouping.
However, the extent of Pakistan's participation in the alliance has yet to be decided.
Saudi leadership used a recent Arab-US summit in Riyadh to target Iran, which has forced Pakistan authorities to tread a careful path.
Last week, Prime Minister's Adviser on Foreign Affairs Sartaj Aziz conceded before the Senate that Riyadh conference had widened the sectarian divide in the Muslim world.
Pakistan was stuck between the "devil and the deep blue sea" meaning that neither it could say completely "No" to Saudi Arabia nor could afford antagonising neighbouring Iran, an official was quoted as saying by The Express Tribune.
"So, we are trying to find a middle ground. We want to ensure a balance in our ties with Saudi Arabia and Iran," the official explained.
The thinking behind this move is to use the leverage provided by parliament to set certain limits as far as Pakistan's participation in the activities of Saudi-led military alliance is concerned.
The government has already made it clear that member countries are free to decide the activities they would want to become part of it in the alliance.
This, according to officials, has provided a room to the government to set clear guidelines.
Given the tricky situation facing Pakistan, the government has drawn certain "red lines" that seek to ensure that it does not become part of any initiative aimed at any other Muslim country.
In 2015, the government took the Saudi request seeking Pakistani troops for its campaign in Yemen to parliament.
The National Assembly and Senate passed a unanimous resolution urging the government to stay away from the conflict involving other Muslim countries while at the same time reiterating full support to Saudi Arabia's territorial integrity and sovereignty.
The move, however, caused an unusual strain in Pakistan's ties with Saudi Arabia and other Arab countries.
The adviser assured that the government would seek rectification of Parliament before taking a final decision on the Saudi-led military alliance.
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