US Claims the Future Role of Investment in Pakistan, Replacing China

A senior US official, Assistant Secretary of State Donald Lu, stated that China’s past investments in Pakistan are dwindling, and the United States is poised to become the primary investor. This shift aims to promote democracy, combat extremism, support economic reforms, and reduce Pakistan's dependence on China.

Days of China investing in Pakistan are now a thing of the past, according to a senior administration official. Speaking to lawmakers, Assistant Secretary of State for South and Central Asia, Donald Lu, emphasized that the United States represents the future of investment in Pakistan.

Lu addressed queries from Congress members concerned about Chinese investments across South and Central Asia. He argued that China’s strategy focuses on establishing military bases and securing resource extraction contracts via high-interest loans and low-paid Chinese labor. This model, he warned, is unsustainable and detrimental to local economies.

Highlighting a shift, Lu noted the US's ongoing efforts to balance relations with both Pakistan and India. The president’s budget request seeks to allocate USD 101 million to strengthen democracy, counter terrorism, and support economic stability in Pakistan, aiming to reduce its dependency on China.