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Between Two Giants Pakistan’s Economic Alignment in a Fragmenting World

34 0
19.04.2026

Pakistan currently maintains a position of relative neutrality between the two principal global powers, the United States and China.

However, as geopolitical tensions intensify and the international order grows more unstable, such a balancing posture is becoming increasingly difficult to sustain. This neutrality would face its sternest test if, and when, the two powers were to come into direct confrontation with one another. At the same time, Pakistan’s rising debt and economic fragility demand a decisive shift towards stability. With the United States and China engaging in economic decoupling and trade conflict, Pakistan faces mounting pressure in staying neutral.

Pakistan’s relationship with the United States dates back to the Cold War, when it served as a regional ally in exchange for military and economic support. This partnership deepened during the Afghan-Soviet conflict, where Pakistan acted as a conduit for American strategy. However, relations deteriorated following Pakistan’s nuclear ambitions, revealing a recurring pattern: American engagement tends to fluctuate based on strategic necessity.

In contrast, Pakistan’s relationship with China developed gradually, grounded in pragmatic cooperation in trade and defence. Over time, China has emerged as a critical partner, particularly through initiatives such as the China-Pakistan Economic Corridor (CPEC). At present, Pakistan maintains functional ties with both nations, making the question of alignment increasingly complex.

Alignment with China offers Pakistan significant infrastructural and industrial advantages. Through projects like CPEC, Pakistan has seen the development of ports such as Gwadar, improvements in energy supply, and modernization of transport networks. These initiatives have injected capital into the economy and created new business opportunities.........

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