Pakistan Must Pay the Price for Promoting Terrorism, Says Report

by

Arpit Soni

Pakistan Must Pay the Price for Promoting Terrorism, Says Report

Washington, August 1: A recent report from the U.S. magazine ‘The National Interest’ suggests that the United States has repeatedly erred in believing it could “buy” Pakistan. In reality, Islamabad is not for sale but rather available for “rent.”

The report argues that Washington benefits by renting Pakistan at its convenience, while China is compelled to do so out of necessity.

The document highlights how the Iran-U.S. conflict has clarified this situation. Pakistan, which holds trust from both Tehran and Washington, facilitated a ceasefire that temporarily reopened the Strait of Hormuz. Traditional treaty allies like France, Germany, and the UK could not fulfill this role; only a “hedging power” could.

Furthermore, the report states that Pakistan’s balancing strategy extends beyond diplomatic mediation. It references a $4.6 billion agreement with Azerbaijan in June 2025, under which Islamabad will supply Baku with 40 JF-17 fighter jets.

According to ‘The National Interest,’ these aircraft are built on a Chinese airframe, equipped with a Russian engine, and sold by a U.S. ally to a country Washington is trying to manage. This deal represents a way for Pakistan to leverage its relationship with China in the Western market. Islamabad aims to maximize its strategic importance for both Washington and Beijing.

The report indicates that after facilitating talks during the Iran conflict, Islamabad reportedly requested a $10 billion exchange stabilization fund from Washington to bolster its foreign currency reserves. Pakistan has thus transformed its geopolitical relevance into economic assistance without severing ties with China.

It suggests that the U.S. has failed to grasp the strategic importance of Pakistan’s “hedging” policy. This has been labeled as Washington’s cheapest “strategic resource,” and it is recommended that the U.S. leverage its remaining influence to align Pakistan with American interests.

The report emphasizes that Pakistan’s reliance on international financial institutions like the IMF and World Bank remains an area where U.S. influence is still decisive. China cannot replace this due to its high-interest bilateral loans and its policy of not funding the Pakistani state directly.

Demanding Pakistan withdraw from the China-Pakistan Economic Corridor (CPEC) is deemed “futile,” as a country employing a balancing strategy will never agree to choose sides. Instead, Washington should assess Pakistan based on whether it reduces ties with China, rather than on whether it allows Beijing to monopolize those relationships.

The report concludes that if Washington is generous in granting prestige, practical in its conditions, and focused on military and economic cooperation, it could turn Pakistan’s hedging strategy to its advantage.

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