Conflict of interest is a very genuine question.
Having dual nationality, means your loyalties and interests are legally and arguably divided.
It is not possible for you to remain loyal to Pakistan when your nationality with another country is demanding something different.
For example a Pakistani who has a dual nationality with America and he is a member of the Parliament in Pakistan, he can not vote/voice against America on issues such as drone attacks, stoppage on NATO supplies through Pakistan or on Pakistan's interests against America's war in Afghanistan.
If he votes or voices against Pakistan's interest and in favour of America, he will have a strong argument to say that he did that because he is a US citizen as well.
If such a person turns out to be a traitor, Americans will defend him because he is an American citizen.
We have recently seen in Shakeel Afreedi's case where though Dr. Afreedi is not a US citizen and even not a member of the Pakistani parliament, they are out of the way asking for his release. In case he is a dual national with America, the Americans will have a stronger argument to get him released.
This will open a door for all those expatriate Pakistanies who are living abroad and are involved into anti-Pakistan actives such as mirzaies, Bloch expatriates and refugee politicians to fulfil their anti-Pakistan agenda.
Simple example is if at a stage India allows a Pakistani to have Indian nationality and that person is elected as a member of Parliament in Pakistan and by virtue of that he becomes Prime Minister, Foreign Minister, or holder of any office of public importance, would you allow him to do that. The reason is he is bound not to act against the interests of India.
Definitely, he will he is PM and not a peon.
MQM's interest is they want to open a door for Altaf Hussain and for all those who can differ with any polices which can go in the interest of Pakistan.
There will always remain a threat that such people will create their own lobbies and alliances to work against the interests of the country. This poses a threat to the sovereignty and security of Pakistan.
Zardari allies is another example - all these parties know they are not working in the general interest of Pakistan yet they are in power because of their number in the Parliament.