Pakistan-US trade and economic relations

Article Type

Article

Description

Pakistan’s economic and trade relations with the US have historically shaped its industrial and institutional foundations, beginning with Liaquat Ali Khan’s 1950 visit that aligned Pakistan with the US-led bloc. Substantial aid between the 1950s–70s built institutions like IBA and PIDE, while Pakistan played a pivotal role in Cold War geopolitics. However, after 1971, ties weakened as Pakistan leaned toward China, culminating in the CPEC initiative, which brought $40 billion in Chinese investments but left unsustainable debt and overcapacity. Reliance on IMF loans grew, with most drawn after 2008. Looking ahead, the author stresses that Pakistan’s energy future—especially untapped oil and gas reserves in the Indus Basin—requires Western expertise and technology rather than Chinese loans. The US, with its oil majors and historical exploration successes in Pakistan, is positioned as a critical partner. The piece frames renewed US-Pakistan cooperation as a commercial, not ideological, opportunity to stabilize Pakistan’s economy and energy security.

Publication Source

BUSINESS RECORDER

Publication Date

8-6-2025

Pages

7

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