A strategic headway

Pakistan and the US have taken a break from their transitional relationship phase. They are now cementing ties with a broader vision by focusing on defence and economy, alike. The fact that the Trump administration believes in 'flexible realism', as is evident from its National Security Strategy 2025, it has once again underscored the need for reaching out to Pakistan by encompassing minerals, cryptocurrency, IT and a liberal trade regime as hallmarks of cooperation. The US Congress' approval for sale of advanced technology and support for Pakistan's F-16 fighter jets, valued at $686 million, is a case in point. It hints at not only buckling up the defence parameters but also keeping an eye on strategic balance of power in the region.

Pakistan has been longing for this nod since 2021 to upgrade its aerial fleet. Strained relations and the revulsion that was going on in the region had delayed any headway. The package now includes Link-16 systems, cryptographic equipment, avionics updates, training and comprehensive logistical support. Also, on the economic front, the US Export-Import Bank has approved financing of $1.25 billion to support the mining of critical minerals at Reko Diq in Pakistan.

The enthusiasm was evident as US Chargé d'affaires Natalie Baker remarked that in the coming years, EXIM's project financing will bring up to $2 billion "in high-quality US mining equipment and services needed to build and operate the Reko Diq mine" aimed to start production by 2028. It will create an estimated 6,000 jobs in the US and 7,500 jobs in Balochistan. This strategic endowment has come on the heels of a $500 million deal signed in September with a Missouri-based firm focusing on Pakistan's rare earths and critical minerals.

This new equation is in need of an institutional approach and a solidified roadmap to get going. The allied-allies have seen enough of crests and troughs and, thus, this state-centrism should be free from person-specific or timeframe ailments. Pakistan's eagerness to have a broader counter-terrorism protocol with the US and to modernise its economic infrastructure needs an unbiased understanding by Washington.