Sarah Ameer
The US-Pak relationship, which had been described as “turbulent” and “inconsistent” in the past, is currently entering a more constructive phase. Contrary to the earlier engagements limited mainly to the security sector, both countries are now actively pursuing multi-domain cooperation ranging from trade and investment, critical minerals and mining to information technology and artificial intelligence.
The shift in Pak-US relationship stems from a transition in Washington’s “America First” doctrine, with the incumbent Trump administration now actively prioritising geoeconomics, secured supply chains, technology-driven competitiveness and partnerships that reduce long-term security burdens without large military footprints. The recalibration of US regional policy opens doors of opportunity for Pakistan. Pakistan’s need for economic stabilisation, investment-led growth, technology modernisation, energy security and sustained counterterrorism align closely with US policy.
A recent development in this regard was noticed in mid-January when Pakistan signed a Memorandum of Understanding (MoU) with SC Financial Technologies LLC, an affiliated entity of World Liberty Financial. The one-year, non-binding MoU aims to explore avenues for transactions in US dollar-pegged stablecoins to enable faster and cheaper cross-border transactions. According to the Finance Ministry of Pakistan, Pakistan is emerging as one of the most compelling frontier markets for digital payments and financial innovation, driven by over $38 billion in annual remittance inflows and a rapidly growing digital economy.
An estimated 40 million crypto users and an industry-estimated annual trading volume of up to $300 billion place the country among those having the largest digital asset user bases globally. While the move reflects Pakistan’s openness to futuristic technologies for economic growth, it also reflects the growing confidence of US-based investment companies in Pakistan’s evolving economic landscape.
Shared security concerns also form a structural pillar of the US-Pak relationship. The withdrawal of US forces from Afghanistan offered militant groups a greater operational space, bringing a surge in terrorist activities in Pakistan. Official briefings for 2025 cite 5,397 terrorist incidents nationwide, over 75,000 intelligence-based operations, and 2,597 militants killed. Washington recognises that militancy not only affects states but also threatens regional and global interests, thereby reinforcing shared interest in counter terrorism.
Geoeconomics offers the most reliable anchor for the US-Pak relationship. Pakistan has significant coal, copper, gold, lithium and rare earth reserves worth between $6 to $8 trillion. The untapped mineral potential in Pakistan offers great investment opportunities for the US.
A US investment deal worth $500M was signed in September 2025 between Pakistan and the United States Strategic Metals and Mota-Engil. Overall, 83 American firms are reported to be currently operating in Pakistan, generating over $3 billion annually. However, despite that the US Foreign Direct Investment (FDI) remains underutilised, below $300 million per year, creating space for a revamped Bilateral Investment Treaty and deeper engagement through SIFC facilitation and high-value projects like Reko Diq. If the current opportunity-driven partnership between Islamabad and Washington is sustained, it will not only enhance Pakistan’s economic growth but also position it as an influential partner in the region.
The writer is a freelance columnist.
