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Updated Aug 1, 2026 · 19:35
World News Updated Aug 1, 2026

US Must Recognize Pakistan's Strategic Hedging Value, Report Says

A report in The National Interest argues the US has consistently erred by believing it can buy Pakistan's loyalty, when Islamabad's strategy is to rent itself out to maximize value from both Washington and Beijing. It cites Pakistan's mediation in the US-Iran conflict and a $4.6 billion fighter jet deal with Azerbaijan as examples of this hedging approach. The report recommends the US leverage its influence over international financial institutions rather than demanding Pakistan abandon CPEC, which is a non-starter. It concludes that Washington should focus on making terrorism too costly for Pakistan by threatening the economic opportunities Islamabad values.

Pakistan should bear greater costs for allowing terrorism to persist: Report

Washington, Aug 1

The United States has consistently made the mistake of believing it could buy Pakistan, but in reality Islamabad is not for sale but available for rent, a report has stated.

It argued that the advantage for Washington, however, is that it rents Pakistan by choice, whereas China does so out of necessity.

"The US-Iran conflict illustrated this dynamic. Trusted by both Tehran and Washington, Islamabad helped broker the ceasefire that briefly reopened the Strait of Hormuz. Traditional treaty allies such as France, Germany and the United Kingdom could not have played that role. A hedging power could," a report in American magazine 'The National Interest' highlighted.

Highlighting that Pakistan's balancing strategy extends beyond diplomatic mediation, the report cited a June 2025 agreement with Azerbaijan worth up to $4.6 billion, under which Islamabad is set to supply 40 JF-17 fighter jets to Baku.

"The aircraft is built on a Chinese airframe, powered by a Russian engine and sold by an American ally to a country Washington is actively courting. The transaction monetises Pakistan's relationship with China within a Western-facing market. Pakistan's strategy is to maximise its strategic value to both Washington and Beijing," The National Interest mentioned.

"More recently, after helping broker talks during the Iran conflict, Islamabad reportedly asked Washington to establish a $10 billion exchange-stabilisation facility to strengthen its foreign-exchange reserves. Pakistan was again converting geopolitical relevance into economic support without abandoning its relationship with China," it added.

The report argued that the US has failed to recognise the strategic value of Pakistan's hedging policy, describing it as the cheapest "strategic asset" Washington can afford. It recommended that the US use its remaining leverage to tilt Pakistan to advance American interests.

"Pakistan's longstanding reliance on international financial institutions such as the IMF and World Bank is one area where American influence remains decisive. Beijing, with its higher-interest bilateral loans and reluctance to finance the Pakistani state itself, cannot readily substitute for that role," it mentioned.

According to the report, demanding that Pakistan withdraw from the China-Pakistan Economic Corridor (CPEC) is a "non-starter", as a country pursuing a hedging strategy is unlikely to accept demands that force it to choose sides. Instead, it said Washington should assess Pakistan not by whether it scales back ties with China, but by whether it prevents Beijing from gaining a monopoly over those ties.

"If Washington is generous with prestige, pragmatic on conditionality, and focused on military and economic cooperation, it can turn Pakistan's hedging strategy into an American advantage," it added.

Stressing that Pakistan should bear greater costs for allowing terrorism to persist, the report said, "Terrorism should become too costly - not because America threatens punishment, but because it would destroy opportunities Pakistan itself values. The goal is to create so much to lose that terrorism spoils it all."

— IANS

Reader Comments

Ananya R

The report makes a valid point about Pakistan's hedging strategy, but let's not forget their real source of income - terrorism. Whether it's targeting India or destabilizing Afghanistan, Pakistan has built its entire economy on this toxic industry. The US keeps trying to 'rent' them, but they always end up funding the very elements that create chaos. India has lost countless innocent lives due to cross-border terrorism, and the world just watches. It's time for the international community to stop treating Pakistan with kid gloves.

Sarah B

As an American, I'm frustrated that our government has been so naive about Pakistan for so long. Every time we think we have a deal, they take our money and then turn around and cozy up to China. The report is right - we need to use our leverage with the IMF and other international institutions to demand real change. Pakistan needs to understand that terrorism has consequences, not just payouts.

Varun X

The headline says it all - Pakistan should bear greater costs for allowing terrorism. But let me ask - how many more decades will it take for the US to actually act on this? They've been saying this since the 90s. Meanwhile, Pakistan keeps getting $10 billion here, $4 billion there. The JF-17 deal with Azerbaijan is pure irony - an American ally selling Chinese-Russian technology to another American ally! This 'rental' strategy is actually working brilliantly for Islamabad, while the rest of us deal with the consequences of their state-sponsored terrorism.

Priya S

Interesting analysis, but missing a crucial point - what about the victims of Pakistani terrorism? Indian soldiers, innocent civilians in Jammu & Kashmir, those who died in 26/11 Mumbai... The report talks about making terrorism 'too costly' for Pakistan, but where's the accountability? Washington keeps dancing around this issue because they need Pakistan for their Afghanistan and Iran games. India has raised this at every international forum, yet Pakistan continues to act as the world's most successful

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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