Is US backstabbing India for Pakistan to diminish Chinese influence?

New Delhi: In a significant move aimed at diminishing Pakistan's reliance on China, the United States has proposed a budget allocation of $1.01 billion for fiscal year 2025. This initiative, outlined by US Assistant Secretary of State Donald Lu during a congressional hearing on Tuesday, aims to bolster democracy, counter terrorism, stabilize the economy, and reduce Islamabad's dependency on Beijing.

The explicit mention of China comes amidst Pakistan's escalating foreign debt crisis, where a substantial portion of its $125 billion debt is owed to China alone, as reported in 2023. According to Lu, the budget seeks to compete with China and counter Russian and Chinese disinformation while safeguarding US security from terrorist threats in the South and Central Asia region.

Pakistan ranks as the 3rd recipient of Chinese development finance globally

Lu emphasized the US stance on preventing Islamabad's "further overreliance" on Beijing, asserting, "China is the past in terms of investment; we are the future." Highlighting the competitive dynamics in the region, Lu underscored China's expansive military and economic presence in the Indo-Pacific, posing challenges for US interests. A 2023 study revealed that Pakistan ranks as the third-largest recipient of Chinese development finance globally, with a substantial portfolio amounting to $70.3 billion, largely driven by initiatives like the China Pakistan Economic Corridor (CPEC) under the Belt and Road Initiative.

Former US President Trump's decision to cancel $1.3 billion in aid to Pakistan

However, concerns persist over the progress of several billion-dollar projects under CPEC, which have faced delays and uncertainties. This development follows former US President Donald Trump's 2018 decision to cancel $1.3 billion in aid to Pakistan, citing inadequate efforts to curb terrorism originating from its territory, which strained bilateral relations. The proposed budget signals a renewed American strategy to recalibrate Pakistan's international alignments while reinforcing its own strategic foothold in the region amid China's expanding influence.