Pak-US
Pak-US
Pak-US
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As the United States and Pakistan approach 75 years of bilateral engagement, the relationship be-
tween the two countries is at a critical crossroads. While viewing the US-Pakistan relationship ex-
clusively through the security lens seems to be untenable, the road ahead, in the broader context of
the Afghanistan withdrawal and g reat power competition, remains murky. Nevertheless, t here ex-
ists a willingness on both sides to avoid the lows of the 1990s even if the highs of the 1980s or
2000s are not possible. It is, therefore, important to understand the interplay of the current state of
diverging and converging interests of both countries that may inform the contours of a “right-
sized” relationship.
This policy brief is a culmination of input received from sectoral and policy experts from both
countries on the key areas of concern. It attempts to outline a rethinking of US-Pakistan relations
against the background of changing priorities in the region and globally for both the United States
and Pakistan.
The foundations for cooperation between the United States and Pakistan were drawn out during a
unipolar world, with the United States as the major global power. However, as the world moves away
from this unipolarity, the new era is marked by global strategic competition between the United
States and China,1 accompanied by Russia.2 Pakistan is generally perceived as a part of the China
camp, while the United States has posited India as its main partner in the Indo-Pacific and South
Asia to c ounter China. Moreover, there is frustration within the United States regarding Pakistan’s
hedging strategy in Afghanistan, while on the other hand, there is fear within Pakistani strategic
1
“Enhancing Strategic Stability in Southern Asia,” United States Institute of Peace, May 2022, www.usip.o rg
/sites/default/files/2022-05/enhancing-strategic-s tability-i n-southern-asia-final-report.p df.
2
“Great Power Competition,” Wilson Center, www.wilsoncenter.org/issue/great-power-competition.
3
Anthony Blinken, “The Administration’s Approach to the P eople’s Republic of China,” US Department of State,
August 19, 2022, www.state.gov/the-administrations-approach-to-the-peoples-republic-of-china/.
4
Syed Mohammad Ali, “The U.S.-China Strategic Rivalry and Its Implications for Pakistan,” Stimson Center,
December 2, 2020, www.stimson.org/2020/the-u-s-china-strategic-rivalry-and-its-implications-for-pakistan/.
5
Talqeen Zubairi, “Enhancing Ties with Pakistan Top Priority, Says US Envoy Donald Blome,” Dawn.com,
June 14, 2022, www.dawn.com/news/1694784.
US-Pak
Relaonship
Human
Cultural Ties
Security
Pakistan and the United States have a long-standing relationship of cooperation on security and
counterterrorism issues. There is sufficient indication that this traditional cooperation will continue
in one form or another, as both countries remain wary of the resurgence of terrorist organizations in
Afghanistan after the Taliban takeover and the risks these groups pose to national as well as re-
gional security.6 However, with US priorities shifting to the Indo-Pacific to counter Chinese influ-
ence in the region, a solely militaristic approach would not only lack sufficient resource mobilization
but would also be unable to yield significant long-term gains. Therefore, a more human-centric ap-
proach to border management and security needs to be adopted by all parties, aimed at strengthen-
ing the border communities on both sides of the Afghan-Pakistan border and building their ability
6
“Fourteenth Report of the Secretary-General on the Threat Posed by ISIL (Da’Esh) to International Peace and
Security and the Range of United Nations Efforts in Support of Member States in Countering the Threat,” United
Nations Security Council, January 28, 2022.
Given the security concerns in Afghanistan, Pakistan can use its influence over Kabul to curtail ter-
rorist groups operating from Afghanistan. Positioning itself as one of the conduits for US-Taliban
negotiations against terrorist groups, Pakistan can rebuild a close security relation with the United
States, overcoming the mistrust and acrimony developed over recent years. Moreover, this is also an
area of convergence and cooperation within the g reat power competition framework; China has also
adopted an unequivocal approach to countering the threat of terrorism in the region, especially in
the wake of attacks on Chinese assets and workers in Pakistan as well as Uyghurs fighting in
Afghanistan.
Recommendations:
• Pakistan and the United States should revive the Pakistan-US Working Group on Law Enforce-
ment and Counter-Terrorism to ensure knowledge and intelligence sharing on critical security
threats and issues.
• Multilateral initiatives and organizations, including the UN and EU, should be engaged to con-
tinue dialogue and cooperation on peace in Afghanistan and the region, with continuation of
initiatives such as the Doha Agreement.
• Countering violent extremism also remains a key area where US-Pakistan collaboration can be
strengthened through a set of concrete and practical steps. T hese can include countering hate
speech on social media platforms, scaling up existing awareness campaigns, and providing
socioeconomic opportunities to the country’s youth.
Cooperation between the two countries on improving border management has traditionally been
viewed through the military lens, with border fencing and enhancing the capacity of border secu-
rity forces the key priorities. T here has, however, been a lack of clearly defined mandates in this
regard, with more than 30 agencies in Pakistan exercising overlapping mandates to manage dif
ferent aspects of border security. It is also import ant to acknowledge that a comprehensive border
management system cannot be realized without looking at border management from a h uman se-
curity and development lens for the bordering communities. Consistent disruption due to security
concerns, militancy, operations, and so on has impacted local systems of economic opportunities
and livelihoods. This, in turn, poses multiple risks for both Pakistan and the United States,
such as movement of terrorists, money laundering, terrorism financing, illegal smuggling, and
drug trafficking.
Recommendations:
• Cooperation between the United States and Pakistan should be focused on enhancing livelihoods and
economic opportunities for the bordering communities by increasing the ease of cross-border mobil-
ity and facilitating local trade between bordering communities on both sides through common border
markets.
• The United States should conduct a thorough need analysis of the border management and se-
curity requirements for Pakistan and assist in developing an integrated border management
framework while simult aneously building the capacity of law enforcement agencies.
• There should be a concerted effort by the United States and Pakistan to jointly improve socioeco-
nomic development in the Merged Areas and Balochistan, connecting them with national trans-
portation networks to facilitate trade and also provide alternative livelihoods for the downstream
markets.
During the last 20 years, Pakistan has remained among the countries most affected by climate
change, even though its contribution to global emissions has remained minimal. Recent floods alone
are estimated to have caused losses worth more than an estimated US$30 billion, with more than
1,400 dead and 33 million people affected.7 While climate change poses a threat to peace and stabil-
ity within all of Pakistan, it especially leaves the conflict areas more vulnerable to exploitation by
extremist groups and greater resentment against the state and global powers. Moreover, in the
broader context, Pakistan can serve as a test case for global resolve to help communities worst af-
fected by climate change and support alternative economic and livelihood opportunities. Climate
change, therefore, marks one of the most important areas of convergence between the United States
and Pakistan; u nder the recently launched Partnership for Global Infrastructure and Investment
(PGII), building climate-resilient infrastructure to tackle climate change is one of the four priority
areas, with the United States and G7 pledging US$600 billion u nder PGII by 2027.8
Recommendations:
• The United States and Pakistan must make the US-Pakistan Climate and Environment Work-
ing Group more proactive, so it acts as the medium to coordinate on tangible interventions in
this realm.
• The United States should invest in building climate resilience and awareness within local
communities in Pakistan, especially in conflict-prone areas, with climate-resilient reconstruc-
tion, infrastructure development, food security, and displacement management as the key ar-
eas of investment.
7
Asif Shahzad, “U.N. Chief Calls for ‘Massive’ Help as Pakistan Puts Flood Losses at $30 Billion,” Reuters,
September 9, 2022, www.reuters.com/world/asia-pacific/un-chief-guterres-arrives-pakistan-support-flood
-response-2022-09-09/.
8
“Fact Sheet: President Biden and G7 Leaders Formally Launch the Partnership for Global Infrastructure and
Investment,” White House, June 27, 2022, www.whitehouse.gov/briefing-room/s tatements-releases/2 022/0 6/2 6
/fact-sheet-president-biden-and-g7-leaders-formally-launch-the-partnership-for-global-infrastructure-and
-investment/.
ECONOMIC COOPERATION
The US-Pakistan relationship has largely been seen through a security lens, with l ittle consideration
toward creating sustainable economic ties, which have remained subservient to the military/
strategic relationship. While the United States remains the largest importer of Pakistan’s products
(US$4.14 billion in 2020)9 and the second largest source of foreign direct investment (FDI) (US$249.6
million in 2021–22),10 the volume of these economic exchanges remains minuscule in the broader
context.
Chinese economic diplomacy u nder the B
elt and Road Initiative has forced the West to rethink
its basis for economic relationships, especially with developing countries. PGII is a product of this
realization, with the United States alone pledging to mobilize US$200 billion for investment in
global infrastructure focused on clean energy, health systems, gender equality, and information and
communication technology. As PGII or a similar initiative takes shape, Pakistan would be well ad-
vised to take an early-mover advantage to identify key areas of convergence with the PGII and mo-
bilize both government-to-government as well as business-to-business exchanges for the same.
Moreover, Pakistan would like to see this as complementing the existing initiatives and investments
by other countries, such as China, rather than competing for the same space.
Pakistan is the 55th largest supplier of goods imports to the United States and the 57th largest export
market; the United States has free trade agreements with more than 20 countries, but none with
9
“Pakistan Product Exports by Country in US$ Thousand 2020,” WITS Data, accessed February 24, 2023, https://wits
.worldbank.org/CountryProfile/en/Country/PAK/Year/LTST/TradeFlow/Export/Partner/by-country/Product/T
otal.
10
“Country Wise Net FDI ($ Million),” Invest Pakistan, accessed February 24, 2023, https://invest.gov.pk/statistics.
Recommendations:
• The United States should support Pakistan’s shift toward geo-economics and explore comple-
mentarities, which are in sync with the mutually defined interests for greater interregional con-
nectivity and trade as it w
ill give the United States access to the markets of this region.
• The United States and Pakistan should work together to help improve Pakistan’s receptiveness
and adoption of new technologies, especially in the agriculture sector, such as the adoption of
GMOs, through a more robust regulatory and intellectual property rights regime.
• The United States and Pakistan should build partnerships in knowledge creation through by
establishing links between US business schools and their Pakistani counterparts in order to
build local capacity and international expertise.
11
“Pakistan: U.S.-Pakistan Trade Facts,” United States Trade Representative, October 2020, https://ustr.g ov
/countries-regions/south-central-asia/pakistan.
Pakistan’s information technology (IT) sector remains one of the most obvious areas of new conver-
gence between the United States and Pakistan in particular, and the West in general. Currently,
Pakistan’s IT sector exports approximately $1.1 billion annually to the United States,12 but t here re-
mains huge potential for both countries to employ the youth bulge in Pakistan to develop the requi-
site human capital and skills to forge a mutually beneficial relationship. Moreover, US companies
can also reap dividends by building and improving IT infrastructure, thereby tapping into a poten-
tial market of 220 million users as well as strengthening the US position in the region within the
technology race; this would also help Pakistan avoid overdependence for technology infrastructure
on any particular country. The PGII, with its private sector–led investment strategy, has laid out
digital connectivity as one of the key priority areas and is, therefore, also one of the potential con-
vergences between the two countries.13
Recommendations:
• The United States visa regime for Pakistani businesses in general, and IT in particular,
proves to be prohibitive in expanding market access and more peer-to-peer exchanges within
the tech sector. Both Pakistan and the United States can use their missions to build greater
networks, increase diaspora e ngagement, generate positive PR, and, subsequently, advocate
for a more efficient visa regime.
• The United States can fund programs that build capacity for freelancing and creating a favor-
able start-up ecosystem, which can encourage others, especially Saudi Arabia and the rest of
the Middle East and North Africa, to undertake similar investments and co-sell with Pakistan
to the American and European markets.
12
“Export of Goods and Services June 2022,” State Bank of Pakistan, June 5, 2022, www.sbp.org.pk/p ublications
/export/2022/Jun/5.pdf, p. 296.
13
Conor M. Savoy, “Future Considerations for the Partnership on Global Infrastructure and Investment,” Center
for Strategic and International Studies, June 29, 2022, www.csis.org/analysis/future-considerations-partnership
-global-infrastructure-and-investment.
ENERGY
Pakistan’s energy sector remains largely reliant on fossil fuels; 64 percent of installed capacity relies on
nonrenewable sources for electricity generation.14 Pakistan has huge potential for renewable and green
energy as the demand for energy is ever-increasing and imperative for sustained economic growth.
Similarly, 80 percent of Pakistan’s energy consumption is in the transportation sector,15 with a huge
demand for public transportation in cities. T
hese demands have, to a large extent, been fulfilled through
China’s support, but t here remains potential for the United States to fill the gap, especially in clean and
renewable energy. Energy security remains one of the key priority areas under the PGII as well,16 sug-
gesting that Pakistan can benefit from US expertise and a renewed interest in developing clean energy,
with a focus on new and emerging technologies as well as better demand management systems.
Recommendations:
• US companies can invest in development of a green public transport system in Pakistan’s urban
centers, while at the same time helping the Pakistani government introduce and encourage both
grid-based and off-g rid solutions for large-scale adoption of affordable clean-energy solutions.
• Pakistan can benefit from US companies’ expertise in smart grid technology, which can allow
for greater efficiency and better demand management.
14
Zofeen T. Ebrahim, “Pakistan F aces an Unexpected Dilemma: Too Much Electricity,” Reuters, February 24,
2021, www.reuters.com/article/us-pakistan-energy-climate-change-featur-idUSKBN2AO27C.
15
Ammar H. Khan, “Fixing the Oil Conundrum,” Profit, August 18, 2022, https://profit.p akistantoday.com.pk
/2022/08/01/fixing-the-oil-conundrum/.
16
“Fact Sheet: President Biden and G7 Leaders Formally Launch the Partnership for Global Infrastructure and
Investment,” White House, June 27, 2022, www.whitehouse.gov/briefing-room/statements-releases/2 022/06/26
/fact-sheet-president-biden-and-g7-leaders-formally-launch-the-partnership-for-global-infrastructure-and
-investment/.
Despite 75 years of alliance between the United States and Pakistan, the relationship is marred by
major societal distrust; the tone adopted toward each other by both policymakers and the general
population remains accusatory. According to a survey by the Pew Research Center in 2012, only
10 percent of United States respondents felt the United States could trust Pakistan, while only
11 percent of Pakistanis had a favorable opinion of the United States.17
The missing link, it seems, in the US-Pakistan relationship is people-to-people exchanges.
While the United States has the largest Fulbright program in the world in Pakistan, it has not led to
major nonelite interactions. US pop culture enjoys significant popularity within Pakistan, which can
be a starting point for building such exchanges; the Western values of democracy, h uman rights, and
liberty still hold g reat sway and appeal as compared to the alternative autocratic models. The US
Bureau of Economic Analysis shows that its arts and cultural economic activities accounted for
4.2 percent of GDP, or US$876.7 billion in 2020—more than agriculture, transportation, and ware-
housing.18 These figures are largely export-based, which means that Pakistan, as a country of
220 million p eople, is a major potential market for the United States. On the other hand, Pakistan’s
creative economy is experiencing growing recognition both inside and outside the country. For in-
stance, in 2022 alone, young Pakistanis have made records on the global stage in the areas of music
and film, with Arooj Aftab’s Grammy award, Coke Studio’s latest season, Saim Sadiq’s Joyland at
the Cannes Film Festival, Shazia Sikander’s Fukuoka prize, Riz Ahmed’s win at the Oscars, and
MCU’s Ms. Marvel.
17
Richard Wike, “Few Americans Trust Pakistan,” Pew Reserach Center, October 23, 2013, https://www.pewresearch
.org/fact-tank/2013/10/23/few-americans-trust-pakistan/.
18
“Arts and Cultural Production Satellite Account, U.S. and States, 2020,” US Bureau of Economic Analysis (BEA),
March 15, 2022, www.bea.gov/news/2022/arts-and-cultural-production-satellite-account-us-and-states-2020.
Recommendations:
• Pakistan needs to invest in greater people-to-people exchanges through facilitation of visa re-
gimes, university tours, exchange programs, tech conferences, and cultural heritage tourism
for relevant US populations.
• The United States should scale up existing education programs and increase efforts to encour-
age STEM education with Pakistan, thereby bridging the gap between academia and industry in
the two countries.
• The United States should facilitate people-to-people exchanges with Pakistan across all sectors,
with the aim of increased nonelite interactions and better cultural understanding between the two
countries.
CONCLUSION
The United States and Pakistan have significant divergences with regard to their strategic interests,
especially with regard to China and India. Nevertheless, there are sufficient convergences, including
countering the threat of terrorism, diversifying exports/imports, building diverse and peaceful
societies both at home and abroad, as well as contributing to a more resilient and sustainable world.
Moreover, the potential of g reat power cooperation enables countries like Pakistan to navigate camp
politics and act as a bridge where cooperation is mutually desirable. For this to work, however, both
the United States and Pakistan need to shift away from the security lens through which the
US-Pakistan relationship has been exclusively viewed during the last 75 years. Only a relationship
built on sustainable economic ties, enhancement of h uman security, and strong cultural understand-
ing of one another could be the logical way forward, even if the scale is smaller as compared to
US-Pakistan transactions in the past.