Pak–US economic relations: Evolution and sectoral impacts on Pakistan’s economy

Abstract

The research looks into the changing economic relations between Pakistan and the United States (US), which has been influenced by the geopolitical scenario, security measures, and aid. It points out the role of the economy in bilateral relations, notwithstanding the political ties, where the areas of trade, foreign aid, foreign direct investment, and the role of international financial institutions are highlighted. The study indicates that the US economic presence has brought about short-term growth, department development, and skill enhancement, especially when the countries were going through their strategic phases together. On the other hand, it has also pointed out some restrictions like inconsistency in support, unbalanced trade, and no significant change in the industry over the long haul. The conclusion arrived at is that a new kind of economic cooperation based on trade, development, and proportional sharing of benefits is indispensable for long-term engagement that is mutually beneficial.