GEOPOLITICS AND ECONOMICS: THE DYNAMICS OF PAK-US RELATIONS (2001 TO 2020)

Abstract

This study explores the intricate interplay of geopolitics and economics in shaping Pak-US relations from 2001 to 2020, a period marked by critical global and regional developments. Following the events of 9/11, Pakistan emerged as a key ally in the US-led War on Terror, positioning itself at the intersection of strategic military interests and economic engagements. The research examines the dynamics of this partnership, focusing on how security-driven cooperation influenced economic policies, aid inflows, trade patterns, and Pakistan’s broader economic landscape. Using a qualitative methodology, the study draws on primary and secondary sources, including government records, policy papers, and scholarly analyses, to understand the bilateral relationship. The findings indicate that while US financial assistance during this period significantly supported Pakistan’s economy, it also fostered a pattern of aid dependency, exacerbating structural economic challenges. Trade relations remained asymmetric, with limited diversification and barriers to market access for Pakistani exports. Additionally, conditionalities attached to US aid often curtailed Pakistan’s economic sovereignty, impacting domestic governance and policy frameworks. The study also considers the shifting geopolitical context during the era, including the rise of China and Pakistan's strategic pivot towards regional partners, which began to reshape the traditional parameters of Pak-US economic ties. The research underscores the need for Pakistan to transition from a dependency-driven relationship to one rooted in equitable trade and investment. By doing so, Pakistan can better align its economic goals with its geopolitical realities, ensuring a more sustainable and balanced partnership with the United States.