Hassan Ahmad
It will not be an overstatement that bilateral Pak-US ties are getting strengthened and improved a lot as compared to the past era, when analysts used to sum up the complexity with the term ‘transactional’. At the moment, Pakistan and the US are enjoying a constructive phase of bilateral relations revolving around steady engagement and trust-based open communication channels.
The relationship is increasingly defined by opportunities aligned with Washington’s evolving priorities. Cooperation is becoming more pragmatic, being built upon interests like geo-economics, secure supply chains, global peace and technology-driven competitiveness. Pakistan has strived hard to overcome the economic challenges amid multi-dimensional internal and external troubles. With the arrival of the Trump administration in the White House, fresh opportunities for economic cooperation have opened for Islamabad. Pakistan is seeking US support for economic stabilisation, investment-led growth, and technology modernisation.
Pakistan’s top priorities, like economic stabilisation, investment-led growth, technology modernisation, energy security and sustained counterterrorism, intersect directly with the US objectives. A key recent signal came in mid-January 2026, when Pakistan signed an MoU with SC Financial Technologies LLC, described as an affiliated entity of World Liberty Financial, exploring integration of a dollar-pegged stable coin (USD1) into Pakistan’s payments architecture for faster, cheaper cross-border transactions alongside planned digital currency infrastructure.
Pakistan has framed this around scale drivers, including over $38 bn in annual remittances, a fast-growing digital economy and industry estimates of roughly 40 Mn crypto users with trading volumes that could reach $300 bn annually, supported by accelerated regulatory engagement through new virtual asset institutions. Security convergence remains structural following the post-2021 Afghanistan environment, where militant activity surged along the Pak-Afghan border.
Momentum of Pakistan’s counterterror operations remained high, with 2025 indicators cited in official briefings, including 5397 terrorist incidents nationwide, 75,175 intelligence-based operations, and 2597 militants killed. The lead role of Pakistan in the war against terrorism has become a major factor in reshaping the ties with the USA. Revitalised partnership is revolving around shared security threats, enhanced dialogue and capacity building.
The previous year in August, both partners reaffirmed their commitment to combat the menace during the Pak-USA counter terrorism dialogue. Comprehensive dialogue focused specifically on security threats posed by banned terrorist outfits like ISKP, BLA and the TTP. The arrest of an ISIL/ ISKP facilitator of the Abbey Gate bombing played a key role in proving the lead role of Pakistan in counter-terror operations in the region. US CENTCOM leadership lauded Pakistan as a ‘Phenomenal Partner’ in counterterror efforts. Pakistan, in principle, is ready to cooperate for peace, stability and prosperity. The US is viewed as a strategic ally, while China remains an important economic partner, and Pakistan is maintaining a fine balance by avoiding bloc politics.
The India factor continues to shape regional risk in a nuclearised South Asia, making crisis stability and de-escalation mechanisms strategically relevant. Geoeconomics offers the most durable anchor: Pakistan’s mineral potential is widely valued at $6-8 tn including copper, lithium and rare earths 83 American firms reportedly operate in Pakistan generating over $3 bn annually, yet US FDI remains under utilised (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, projected to generate about $74 billion over 37 years with potential US Ex-Im financing discussions around $1 billion. Steady progress on the path of cooperation is the only way forward for both Pakistan and the USA to tackle the common challenges on the global chessboard.
The writer is a student.
