Dhruva Jaishankar, Executive Director of Observer Research Foundation America, warned that renewed US engagement with Pakistan’s military leadership poses a significant challenge to India-US relations. Speaking at a House Foreign Affairs Subcommittee hearing on the US-India strategic partnership and Indo-Pacific security, Jaishankar said Pakistan’s long record of using non-state terrorist proxies against India and repeated reliance on third-party mediation have often encouraged its provocations. He noted that the United States has pursued a policy of de-hyphenation—engaging both India and Pakistan while trying to avoid entanglement in their disputes—but cautioned that closer Washington-Islamabad ties could complicate cooperation with New Delhi unless outstanding issues on trade and Pakistan are managed carefully.
The comments came as the US announced a major commercial investment in Pakistan’s mineral sector. The Export-Import Bank of the United States approved $1.25 billion in financing for the Reko Diq critical minerals project in Balochistan. Natalie A. Baker, Charge d’Affaires ad interim at the US Embassy in Islamabad, highlighted the deal as an example of the Trump administration’s emphasis on linking commercial agreements to diplomacy, saying the financing would support up to $2 billion in US mining equipment and services and create thousands of jobs—an estimated 6,000 in the United States and 7,500 in Balochistan.
The US Embassy called the Reko Diq commitment a potential game-changer for both US exporters and local Pakistani communities, saying it would drive economic growth in Balochistan and bring employment and prosperity to both countries.
The Reko Diq move follows broader outreach and trade initiatives between Washington and Islamabad. In July, former President Donald Trump announced a separate plan to help develop Pakistan’s oil reserves and suggested the two countries might one day trade energy, while also imposing tariffs and penalties on India around the same time.
High-level interactions have also included meetings between US leaders and Pakistan’s military. After the May conflict sparked by the Pahalgam terror attack and India’s subsequent Operation Sindoor, Trump hosted Pakistan Army Chief General Asim Munir at the White House, praising his role in preventing escalation. Munir later spoke to a Pakistani-American audience in Tampa, where local media reported he vowed to retaliate against Indian infrastructure and reiterated that Kashmir remained central to Pakistan’s interests. India strongly rejected Munir’s remarks; Ministry of External Affairs spokesperson Randhir Jaiswal dismissed them and reaffirmed India’s position that Kashmir is an integral part of the country.
Pakistan nominated the US President for the Nobel Peace Prize, praising what it described as decisive diplomatic intervention during the May clashes. Prime Minister Shehbaz Sharif also lauded Trump at the United Nations General Assembly. India, however, noted that a cessation of hostilities followed direct contact between the Pakistani and Indian military operations chiefs.
Observers say these developments—combining diplomatic outreach, major commercial deals, and military-to-military engagement—could complicate the trajectory of India-US ties if Washington does not carefully balance its relationships with both New Delhi and Islamabad.
