US Plans Billions in Investment for Pakistan, Signaling Potential Shift in Bilateral Relations
With an eye on bolstering economic ties, the Trump administration has supported significant investments in Pakistan’s key industries, aiming to reshape bilateral relations and counterbalance China’s regional influence
[Islamabad] The US plans to invest billions in Pakistan across sectors including minerals, real estate, energy, technology, and AI. Speaking to the media in Islamabad on Wednesday, US business magnate Gentry Beach said that the planned investments were thanks to President Donald Trump, “who believes in economic diplomacy.”
We need Pakistan as a crucial partner in this region; you are our front face here, and that is very important
“America values Pakistan, together we can build great strength,” Beach said, noting that initial investments would focus on minerals and real estate. “We need Pakistan as a crucial partner in this region; you are our front face here, and that is very important.”
He criticized the Biden administration for its handling of the US withdrawal from Afghanistan and urged Islamabad to “move beyond” the approach of the previous administration.
A close business ally and supporter of President Trump’s, Beach arrived in Islamabad on Tuesday for a two-day visit along with a delegation of top American investors. This visit marks the first high-level American delegation to Pakistan since the new US government took office and is expected to open new avenues for investment. Experts say the investment will enhance bilateral relations between the two countries, which have recently been tense.
Speaking to The Media Line, New York-based international relations researcher Azeem Khalid described Beach’s visit as a “pragmatic effort to rebuild relations through investment and business opportunities.”
“While this visit does not signify a dramatic shift in the bilateral relationship, it represents a meaningful effort to reengage and explore areas of mutual interest,” he said.
During the press conference, Beach highlighted Pakistan’s global investment potential and emphasized the strong alignment between the Trump administration and Pakistan’s leaders regarding economic growth.
“America values its relationship with Pakistan, and I believe we can build great strength together,” Beach said. “Pakistan is crucial to the region and an important partner for the United States.”
He commended the intelligence and dedication of Pakistan’s people, calling the country “incredible” and underscoring its investor-friendly environment, particularly for US investors under the Trump administration.
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Beach and his team met with Pakistani Prime Minister Shehbaz Sharif. In a press release, Sharif thanked the delegation and reaffirmed the government’s commitment to creating a favorable environment for foreign investment.
According to the press release, he highlighted “Pakistan’s strategic location, young skilled workforce, and growing consumer market as key attractions for global investment.”
The high-level meeting was also attended by Deputy Prime Minister and Foreign Minister Ishaq Dar, along with other federal ministers. According to state broadcaster Radio Pakistan, several agreements were signed between the two nations.
Radio Pakistan described the visit as an opportunity to “strengthen economic and bilateral relations between the two nations.”
The relationship between the United States and Pakistan during the Biden administration was characterized by significant strain and a cooling of ties. Several factors contributed to this downturn, chief among them being the US withdrawal from Afghanistan in August 2021.
The chaotic exit from Afghanistan and the swift Taliban takeover created distrust between Washington and Islamabad. The US felt that Pakistan did not take sufficient steps to curb Taliban influence or ensure long-term regional stability, while Pakistan believed its sacrifices and counterterrorism efforts were overlooked.
As a result, US-Pakistan engagements have been largely restricted to counterterrorism as of late rather than being used for expanding cooperation in trade, investment, or security.
Unlike in previous administrations, President Joe Biden’s foreign policy shifted away from Pakistan, with a strategic focus on countering China’s growing influence. This shift has led to stronger US ties with India—Pakistan’s long-time rival—deepening Pakistan’s sense of being sidelined.
Pakistan currently relies on China for economic, technical, and military support. Jazib Mumtaz, an economist at the Karachi-based Policy Research & Advisory Council, said that US investment could help Pakistan diversify its economic partnerships beyond China.
“Closer US-Pakistan ties could have significant regional implications, particularly in South Asia,” Mumtaz said. “Strengthened economic and diplomatic engagement might influence the situation in Afghanistan and counterbalance China’s growing influence in the region.”
Pakistan will have to carefully manage its relationships with both the US and China to avoid geopolitical fallout
He said that the US and Pakistan could eventually develop a meaningful strategic partnership that could benefit both countries. But doing so could come at a cost. “Pakistan will have to carefully manage its relationships with both the US and China to avoid geopolitical fallout,” Mumtaz said.
Noureen Akhtar, an Islamabad-based national policy consultant and editor at Stratheia, a global digital think tank on policy disclosure, noted that the investment plan may be part of a broader US plan to limit China’s influence. “Pakistan must proceed carefully,” Akhtar told The Media Line, paying careful attention to whether the US is interested in a long-term strategic partnership.
High-level diplomatic engagement between Pakistan and the US has been minimal in recent years, with Biden notably not making direct contact with any Pakistani prime minister during his tenure.
This lack of communication has fueled perceptions of neglect, and at times, outright alienation. Allegations of US interference in Pakistan’s domestic politics, particularly surrounding the removal of former Prime Minister Imran Khan, further complicated relations, even though no concrete evidence supports these claims.
The transition from Imran Khan to Shehbaz Sharif’s government has seen some efforts to revive economic discussions with Washington. But these engagements have remained limited, as strategic interests continue to drive US policy in the region.
While there is potential for cooperation, particularly in economic and security domains, the overall relationship between the countries remains tense, marked by distrust and geopolitical divergences.
Analysts consider the timing of the investment delegation’s visit, shortly after President Trump’s inauguration, as highly significant. Foreign policy under President Trump is expected to focus on economic growth rather than military involvement, presenting an opportunity for Pakistan to strengthen ties with American investors across various sectors.
“The US is expected to prioritize state-level relations over involvement in Pakistan’s internal politics,” Khalid said, noting that President Trump had previously expressed support for former Prime Minister Khan.
Khalid highlighted Pakistan’s plans to use Starlink, a satellite internet service owned by Trump nominee Elon Musk. That plan demonstrates Pakistan’s openness to US investment and collaboration with American tech firms and points to the country’s commitment to upgrading its digital infrastructure, he said.
Akhtar described the US delegation’s visit as one of “strategic importance.”
If Trump is serious about rebuilding trust, investment, and trade could play a crucial role, offering Pakistan much-needed support in energy, infrastructure, and technology
“Beach’s endorsement of Pakistan as an ‘incredible’ investment destination signals potential economic reengagement,” she said. “If Trump is serious about rebuilding trust, investment, and trade could play a crucial role, offering Pakistan much-needed support in energy, infrastructure, and technology.”
