The US has sought a $101 million budget to assist Pakistan in stabilizing its economy, strengthening democracy, and importantly, reducing its reliance on China. While Pakistan has welcomed the move, it has firmly rejected any suggestion of compromising its relationship with Beijing to enhance ties with Washington. Foreign Office spokeswoman Mumtaz Zahra Baloch stated that Pakistan does not subscribe to zero-sum relationships. “For us, relations with the United States and relations with China are both important. We do not believe in situations where relationship with one country can be sacrificed on the altar of relations with another,” she added. Baloch further described China as Pakistan’s unwavering and dependable strategic partner, highlighting Islamabad’s commitment to further solidifying this bond. Concurrently, Pakistan cherishes its robust ties with the United States and advocates for constructive engagement. “We would like to develop this relationship on the basis of sovereign equality, mutual respect and non-interference in each other’s domestic affairs,” Baloch said.
The US Assistant Secretary for South and Central Asia, Donald Lu, on July 23, requested the $101 million aid package for Pakistan. In his statement before a subcommittee of the US House Committee on Foreign Affairs, Lu emphasized that the aid’s purpose is to stabilize Pakistan’s economy while supporting democratic values and human rights. As per the budget request document, the aid also aims to “compete with the People’s Republic of China (PRC), counter Russian and Chinese disinformation, and prevent terrorist groups from threatening US security”. Lu also stated that through the financial assistance, the US aims to prevent Islamabad’s “further overreliance” on Beijing. “China is the past in terms of investment; we are the future,” Lu said, adding that Washington desires to strike a balance in terms of China’s “strong and growing influence” in Pakistan.
China has emerged as a significant player in supporting Pakistan’s economic recovery. It has become a major source of economic aid for Pakistan, funding various development projects, including infrastructure and energy initiatives. Pakistan has received substantial loans from China, particularly through initiatives like the China-Pakistan Economic Corridor (CPEC). These loans assist in addressing balance-of-payments issues and supporting economic development, but they also increase Pakistan’s debt dependency on China. The country has also emerged as one of Pakistan’s biggest trading partners.
