US President Donald Trump welcomed Pakistani Prime Minister Shehbaz Sharif to the Oval Office, marking the first visit by a Pakistani premier to the White House since Imran Khan in 2019. The 80-minute closed-door talks also included Pakistan’s Army Chief Field Marshal Asim Munir and US Secretary of State Marco Rubio.
The meeting highlighted a significant shift in Washington’s approach to Islamabad. Once criticized by Trump as a “terrorist safe haven,” Pakistan is now being described by the US president as led by “great leaders,” reflecting a broader recalibration of US strategy in South Asia.
Resetting Relations
- Trade Agreement (July 2025): US-Pakistan trade deal cut tariffs on Pakistani exports from 29% to 19%.
- Investment in Resources: A US company pledged $500 million to develop Pakistan’s oil reserves and critical minerals.
- Diplomatic Narrative: Pakistan credited Trump with brokering the May 2025 Operation Sindoor ceasefire with India, though New Delhi denies US involvement.
- Nobel Nomination: Islamabad nominated Trump for the 2026 Nobel Peace Prize, citing his “decisive intervention.”
Economic and Political Outlook
The trade concessions and resource partnership have given Pakistan a rare economic boost. The Pakistan Stock Exchange (KSE-100) jumped nearly 1,000 points after the July announcement, and the Lahore Chamber of Commerce called the agreement a “game-changer.”
Politically, the visit represents the biggest US tilt toward Pakistan since the early 1970s, at a time when US-India relations are strained over tariffs and India’s continued Russian oil imports. Trump has imposed 50% tariffs on Indian goods, the highest globally.
For Washington, the engagement reflects a push to secure critical minerals and energy cooperation while reducing Islamabad’s reliance on China.
Reactions
- Pakistan’s Position: Sharif called the talks “constructive,” stressing a partnership based on trade and stability.
- Domestic Praise: Business groups highlighted export opportunities and market optimism.
- Criticism at Home: Retired Army officer Adil Raja labeled Trump’s praise “empty” and accused the Sharif government of aligning too closely with US foreign policy.
- Symbolism: Reports noted Sharif and Munir were kept waiting nearly an hour, though the delegation downplayed the delay.
India’s Position – What to Watch Out For
India has firmly rejected Trump’s claims of mediating the May 2025 ceasefire, with External Affairs Minister S. Jaishankar reiterating there was “no third-party role.” New Delhi continues to emphasize direct bilateral dialogue as the only path to resolving disputes with Pakistan.
At the same time, US-India relations face pressure over trade and energy policies. Trump’s 50% tariffs on Indian imports, combined with India’s purchase of discounted Russian oil, remain flashpoints in Washington.
What India should watch out for:
- Economic Shifts: US-Pakistan trade concessions could give Islamabad new leverage in textiles, minerals, and energy exports.
- Strategic Realignment: Washington’s renewed focus on Pakistan for critical minerals may gradually reduce India’s role as a preferred partner in US supply chain diversification.
- Diplomatic Narrative: Pakistan’s public framing of Trump as a “peacemaker” may test India’s efforts to block third-party involvement in regional disputes.
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