US plans $100 million push to counter China in Pakistan
The Biden administration has announced a $100 million allocation to Pakistan for FY25. The funds aim to strengthen democracy, combat terrorism, and stabilize the country’s economy. A significant focus of the initiative is to reduce Pakistan’s reliance on China, reflecting broader U.S. strategic interests in the region. This allocation is part of a larger effort to counter China’s influence in South Asia and ensure stability in a geopolitically sensitive area. The initiative underscores the importance of Pakistan in U.S. foreign policy and regional security strategies.
The United States has proposed a budget of $101 million for Pakistan as part of a broader strategy to reduce Islamabad’s dependence on China. This proposal, detailed by U.S. Assistant Secretary of State Donald Lu during a congressional panel, underscores a shift in U.S. foreign policy aimed at curbing China’s growing influence in South Asia.
The allocated funds for Pakistan are intended to strengthen democratic institutions, combat terrorism, and stabilize the country’s economy. A crucial aspect of this initiative is to wean Pakistan off its “all-weather ally,” China, particularly in light of Pakistan’s mounting foreign debt, a significant portion of which is owed to Beijing. As of 2023, reports indicated that Pakistan owes one-third of its $125 billion foreign debt to China alone, a situation that has raised concerns about Islamabad’s economic sovereignty and over-reliance on Chinese financial support.
The U.S. budget document, as reported by Dawn, seeks a total of $1.01 billion in foreign assistance for the South and Central Asia region. This aid aims to counter the influence of the People’s Republic of China (PRC) and Russia, address disinformation from these countries, and prevent terrorist groups from posing threats to U.S. security. Lu emphasized that the U.S. is committed to preventing Pakistan’s “further overreliance” on Beijing, portraying China as a past benefactor in terms of investment, with the U.S. being the future partner for Pakistan.
This U.S. strategy comes at a critical juncture, as Beijing continues to expand its military and commercial presence across the Indo-Pacific region. The U.S. has faced challenges in matching China’s influence, particularly as China has become a major financier of infrastructure and development projects worldwide through initiatives like the Belt & Road Initiative (BRI). Pakistan has been a significant beneficiary of Chinese development finance, ranking as the third largest recipient globally. According to a 2023 study, Pakistan’s portfolio of Chinese development projects amounts to $70.3 billion.
The China-Pakistan Economic Corridor (CPEC), a cornerstone of the BRI, exemplifies China’s deep economic ties with Pakistan. CPEC includes numerous infrastructure projects aimed at improving Pakistan’s connectivity and economic prospects. However, several of these projects have encountered delays and obstacles, raising questions about the viability and sustainability of such massive investments. These challenges have fueled concerns about the potential debt trap for Pakistan, where reliance on Chinese financing could compromise its economic autonomy.
Historically, U.S.-Pakistan relations have been complex, shaped by fluctuating strategic interests and political dynamics. In 2018, then-President Donald Trump canceled $1.3 billion in aid to Pakistan, criticizing the country for not doing enough to counter terrorism originating from its territory. This decision marked a low point in bilateral relations, highlighting the challenges and frustrations in the partnership.
The current U.S. administration’s approach seeks to recalibrate this relationship by addressing not only security concerns but also economic and geopolitical issues. The emphasis on reducing Pakistan’s dependence on China reflects a broader U.S. strategy to contain China’s influence globally. This strategy includes enhancing partnerships with other countries in the region, promoting democratic governance, and supporting economic development in ways that offer alternatives to Chinese models of investment.
The U.S. push to compete with China’s influence in Pakistan and the broader South and Central Asia region is part of a larger geopolitical contest that has significant implications for global stability and security. As China continues to assert its power, particularly through economic means, the U.S. faces the challenge of offering compelling alternatives that align with the interests and aspirations of countries in the region.
In conclusion, the U.S. proposal to allocate $101 million to Pakistan is a strategic move to strengthen bilateral ties and counter China’s influence. This initiative reflects a nuanced understanding of Pakistan’s economic challenges and the broader geopolitical landscape. By supporting Pakistan’s democratic institutions, economic stability, and security, the U.S. aims to foster a more balanced and sustainable partnership that reduces the risks associated with over-reliance on a single external power. This approach underscores the evolving nature of U.S. foreign policy in a rapidly changing world order, where economic diplomacy and strategic alliances are increasingly at the forefront of international relations.