On August 14, 2025, US Secretary of State Marco Rubio extended his congratulations to the people of Pakistan in celebration of their Independence Day on August 14. He emphasized Washington’s eagerness to explore new areas of economic cooperation with Pakistan, including “key minerals and hydrocarbons,” in order to promote a vibrant commercial partnership.
This statement comes after the recent signing of an oil agreement between the US and Pakistan. The agreement is expected to reduce tariffs and boost investments, highlighting the warming bilateral relations between the two countries.
Pakistan’s Minister of Commerce, Jam Kamal, announced that Islamabad will provide opportunities for American companies to invest in mining projects, particularly focusing on the Balochistan province in the southwest. These projects would be conducted through joint ventures with local companies, offering favorable leasing terms and conditions.
Balochistan province is known for its significant mineral projects, including the Reko Diq mine operated by Barrick Gold, considered one of the world’s largest gold and copper mines.
Rubio stated in his remarks, “The United States greatly appreciates Pakistan’s participation in counterterrorism and trade.”
Reuters noted that this statement underscored the importance of counterterrorism cooperation in US-Pakistan relations, with Washington viewing counterterrorism as a core area of engagement with Islamabad.
A new round of counterterrorism dialogue between the US and Pakistan was held in Islamabad on Tuesday. The US has designated the Balochistan Liberation Army as a “foreign terrorist organization.”
The joint statement from the US-Pakistan counterterrorism dialogue was described by Michael Kugelman, a contributor to Foreign Policy magazine and South Asia analyst, as one of the most positive and enthusiastic in years in terms of counterterrorism cooperation between the two countries.
During President Trump’s second term, US-Pakistan relations have gradually improved from previous lows. In recent months, interactions between the two nations have increased, leading to progress in economic, trade, and security areas. The deepening of US-Pakistan relations has further contained China’s influence in the region.
In the Indo-Pakistani crisis from April to May of this year, hostilities briefly erupted between India and Pakistan. President Trump claimed credit for brokering a ceasefire during the crisis, with Pakistan openly expressing gratitude while India reiterated that issues between New Delhi and Islamabad should be resolved directly without external intervention. This situation clearly indicates a warming trend in US-Pakistan relations.
Tanvi Madan, an expert on South Asia at the Brookings Institution, highlighted Pakistan’s precise focus on US priorities such as counterterrorism cooperation and mineral resources in its interactions with the Trump administration.
This strategic approach of addressing key concerns helps to create more space for cooperation in bilateral relations. Madan further cited an instance in March, where Pakistan handed over an ISIS-K operative involved in the 2021 Kabul bombing to the US, leading to praise from Trump in his State of the Union address and strengthening Islamabad’s position in bilateral relations.
It is widely believed that Pakistan was initially a crucial node in China’s Belt and Road Initiative. China’s investments in the China-Pakistan Economic Corridor cover major sectors such as ports, electricity, roads, and mining ventures across Pakistan. The development of ports like Gwadar could potentially provide Beijing with a naval base just 250 miles from Oman, posing a challenge to US military deployments in the region.
However, the US is actively engaging in energy and mining cooperation with Pakistan and bolstering security and counterterrorism dialogues. These efforts are not only driven by economic interests but are also strategic moves to counter the expansion of China’s influence.
In a report, Husain Haqqani and other senior researchers at the Hudson Institute highlighted that since the beginning of President Trump’s second term, a more pragmatic diplomatic approach has been adopted, emphasizing cooperation even in situations of differing values, offering potential for improving US-Pakistan relations.
They suggested that the US should provide sustainable debt relief to assist Pakistan in enhancing financial transparency and accessing international institution loans, reducing Islamabad’s reliance on Chinese investments. Additionally, supporting pro-American groups within Pakistan, promoting Western values and culture, and expanding cooperation in critical sectors like minerals, supply chain relocation, and technology would help resist China’s influence in Pakistan.