Pakistan's Economic Relations with the United States: Dependency, Challenges, and Policy Constraints

Abstract

The economic connection between Pakistan and the United States is the focus of this research. It points out the reliance of Pakistan, main problems, and restrictions of policies. It also depicts how the economic consequences have been affected by aid conditionality, structural adjustment programs, and geopolitical factors such as Pakistan's proximity to China and strategic location. The research adopts a qualitative approach and is guided by the theories of dependency and political economy. The findings suggest that US aid has been a blessing in the growing economy but it has also been very unpredictable and linked to the US strategic interests thus limiting Pakistan's autonomy in policy making. The research has emphasized the need for economic diversification, strengthening of institutions, and strategic diplomacy as the ways to maximize US aid and investment, reduce dependency, and thus lay the foundation for sustainable economic growth in Pakistan.