KARACHI: Pak-US relations are gaining momentum, moving toward stronger political, economic, and strategic cooperation across trade, investment, industry, and energy. Analysts note that military diplomacy is further reinforcing these ties.
Talking to Business Recorder, they said being a close ally of the US will but the Pakistani government and its policymakers in a better position to seek more credit facilities from the International Monetary Fund, World Bank and Asian Development Bank .
Moreover, the government is also in a better position to launch various bonds in international money markets. Additionally, Pakistan’s financial loan could be further diversified and transformed as well.
They said geopolitically, after the proposed peace proposal of Gaza, Pakistan can utilize the markets of the Middle East for remittances, new jobs and exports.
Talking to Business Recorder, economic strategist and regional expert Dr Mehmoodul Hassan Khan said: “We expect numerous economic and trade benefits from the Trump administration because higher tariffs on Indian items has already widened our window of opportunity which should be streamlined and systemized for better bargaining.“
Prospects are really high to further ink new MOUs and agreements on energy (oil and gas), green technologies, lithium batteries, solar panels, transports, financial cooperation and women empowerment, community development, as well as digitalization and modernization, he said.
Analysts said increasing political and diplomatic ties with the US has opened new window of opportunities in terms of qualitative industrialization, energy (oil & gas cooperation), green technologies, disaster management, cultural cooperation, educational, military cooperation and brighter prospects of further reduction in tariffs.
The US has a vast consumer market which seems to be suited for Pakistan’s textiles, agriculture, organic foods and oil, surgical instruments, sport items and home decoration accessories, exports of which can be increased.
Trump vs other US presidents
Experts have also said it is crystal clear that US President Donald Trump has become one of the most acclaimed facilitators for Pakistan’s government, promoting meaningful and beneficial ties while creating trade, investment and industrial cooperation.
This is in stark comparison to the era of former presidents Joe Biden and Barack Obama, when ties with Pakistan intentionally remained low profile, with weak inflows of Foreign Direct Investments (FDIs), investments, joint ventures and private cooperation. Military cooperation also took a backseat, creating a spirit of noncooperation and dis-satisfaction between two countries.
Even in the times of senior and junior Bush, relations remained stressful and derailed because of unrealistic demands.
Meanwhile Trump’s administration, because of many complex socio-economic, geopolitical and geostrategic ground realities, has became closer to the government and armed forces of Pakistan.
Impact on relations with China
Dr Khan warned of the importance of the China-Pakistan Economic Corridor (CPEC) Phase 2.0, and said Pakistan must tell Chinese policy makers that increasing economic cooperation with the US should not be considered as anti-China or anti-CPEC.
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“Our relationships with China being an iron-clad brother is irreversible and holds a permanent position, hence Chinese policy makers should not be worried about our increasing bilateral ties with the US.”
“Pakistan’s trans-regional connectivity with Central Asia, Middle East and African continent has been immensely increased because of the CPEC and the Belt and Road Initiative (BRI). Thus clear signaling and posturing should be conveyed to the US administration about our strategic commitments about CPEC, Pak-Sino relations and Pakistan’s role in South Asia.”
He also explained that the USA’s trade and tariffs war against China, Indian geopolitical and geo-strategic goals, a deteriorating law and order situation in Afghanistan, and worsening ties with Iran have all encouraged US policy makers to restart a new chapter of ties with Pakistan.
