Technically Iran has no border with India, therefore you can't be considered neighbors. However, if I was to use your definition of neighborhood states then Pakistan, Iran and Turkey also fits this description. After all the only thing separating Pakistan and Turkey is the landmass of Iran.
Thus, its very unwise to have a bad relationship with your neighbors
Pakistan doesn't need to choose no sides and our relationship between other states depends on national interests. We want to have good relations with Turkey because in the Muslim world its an economic giant and we have similar national interests when it comes to Central Asia. We also would like to develop a healthy relationship with Iran because of CPEC and a new block would be created in order to fight against America's hegemony in the region, plus you are a Muslim nation. What made you think Pakistan is in a mess? Currently terrorism has decreased by more than 70% each year since 2013. CPEC has created thousands of jobs and we have $56 billion of investment from China which is expected to increase by $150 billion by 2022. Furthermore, the Russians are warming up to Pakistan and they have invested $5 billion into Pakistan. The last time such an incident occurred was in the 1970s when Pakistan Steel Mill was assembled by the Soviets when Bhutto was in power. Afghanistan is again coming under the influence of Pakistan and this time we have the Russians and Chinese backing us against the Americans. In essence, Pakistan is becoming stronger and our missile technology is improving. Like I said to you before, if you scratch our back then we shall reciprocate the same favor. You have a relationship with India who is our mortal enemy, yet we never complain. Therefore, we expect the same courtesy. I am Persian by descent, but I don't give a flying hoot about Arabs vs Persians or Sunni vs Shia. Ummah concept doesn't exists unfortunately, although I wish it did so Muslim's wouldn't kill their fellow Muslim brothers.
