The diplomatic relationship between Pakistan and the United States was established on August 15, 1947, a day after Pakistan came into being. The United States (US) is considered as one of the first two nations that recognize Pakistan as an independent and sovereign state. Since its independence, Pakistan considers its relationship with the US as an important element of its foreign policy. Thus, Pak-US relationship is as old as Pakistan and there has been general consistency in this bilateral relationship with vicissitudes at times. This piece of paper aims to debate the economic and trade relationship between Pakistan and the US with prospects and challenges.

In the bilateral economic and trade relationship, the US has significantly as-sisted Pakistan in the construction and development of several mega irrigational and energy projects such as Mangla, Tarbela and Gomal Zam dams. Besides, the US con-tributed greatly towards the Green Revolution in Pakistan during the 1960s. The proc-ess of economic collaboration and cooperation between both states continued smoothly during the Cold War era, since Pakistan was a significant military partner of the US in the field of power politics against Communism. Nevertheless, the post-Soviet era has brought many setbacks in the economic and strategic relationships of Pakistan and US. Nevertheless, despite these vicissitudes, both states managed their bilateral relations to the acceptability of either side.

Focusing on contemporary economic and trade relations, Pakistan and the US have seen notable growth in bilateral trade. According to the Federation of Pakistan Chambers........

© Pakistan Observer