Pakistan’s foreign policy has been defined by delicate balancing — between China and the United States, between military autonomy and civilian rule, between domestic pressures and international expectations. But today, there are unmistakable signs of a subtle, yet definitive, realignment. And the direction of that tilt is Washington.
During President Trump’s 2025 State of the Union address, he applauded Pakistan for capturing a high-profile ISIS operative — responsible for the deaths of 13 U.S. service members in Kabul. This was a signal that Pakistan’s counterterrorism efforts are again viewed as credible and aligned with American security interests.
That praise came amid a broader thaw. Most notably, Trump held an unprecedented meeting with Gen. Asim Munir, Pakistan’s powerful army chief. The two reportedly discussed cooperation ranging from joint counterterrorism initiatives to economic investment and infrastructure.
Trump’s hand was apparent in the recent India-Pakistan border escalation. Though New Delhi rejected third-party mediation, Trump personally intervened to de-escalate tensions. The swiftness and effectiveness of that move spoke volumes — not only about Pakistan’s renewed relevance, but about Washington’s willingness to reengage more directly in South Asia.
Pakistan is grappling with economic volatility, regional instability, and fraying alliances. China’s once-promising investments in the China-Pakistan Economic Corridor (CPEC) have stalled amid delays, underperformance, and rising dissatisfaction. The door is ajar for the U.S. to reassert influence — if it chooses to walk through it.
A major, underappreciated development underscores Pakistan’s shift: its recent removal from the Financial Action Task Force (FATF) grey list. After years of scrutiny over terrorist financing and money laundering, Pakistan enacted substantial reforms that led to the country’s delisting earlier this year — a significant development that has gone largely unnoticed in Western media.
Pakistan now faces a mandatory review — a final phase requiring endorsement from key FATF members. The U.S. should publicly support Pakistan’s compliance, not only as recognition of progress, but to reinforce behavior that aligns with both American and global security interests. Pakistan’s reforms have directly contributed to degrading transnational terror networks and curbing illicit financing — outcomes vital to regional stability and U.S. homeland security.
Such endorsement would also send a powerful message to global financial markets that Pakistan is again a viable investment environment. With inflation easing, the IMF extending a new standby facility, and consumer confidence showing early signs of recovery, Islamabad stands to benefit from capital inflows — especially if backed by American political support. That, in turn, would offer Washington a strategic opportunity: to counterbalance China’s economic influence with more equitable, market-based alternatives.
The most intriguing — if still speculative — possibility of a realignment is Pakistan’s participation in the Abraham Accords. A few years ago, this would have seemed unthinkable. Domestic politics, ideological rigidity, and public sentiment have long made normalization with Israel a red line for any Pakistani government.
But the ground is shifting. Saudi Arabia is reportedly nearing an agreement with Israel. Backchannel conversations between Israel and several Muslim-majority countries are accelerating. And the economic incentives being offered by the U.S. are more attractive than ever.
Normalizing ties with Israel could unlock access to advanced U.S. defense technology, open new trade frameworks, and deliver long-sought diplomatic capital. It would position Islamabad as a pragmatic actor — willing to evolve beyond ideological fault lines in pursuit of national prosperity and regional stature.
Critics will argue that normalization is politically suicidal for any Pakistani leader. But if Saudi Arabia or Indonesia moves first, the calculus changes. If the right economic guarantees are in place, public opinion may soften. And if the Accords are framed not as a betrayal of Palestine but as a new approach to strategic relevance, the idea may gain traction in unexpected quarters.
India looms large here. Washington has strong ties with New Delhi, largely to counter Beijing. But the U.S. must resist turning regional policy into a zero-sum game. Both countries can serve distinct U.S. interests — if managed carefully.
The signs of a realignment are all there: counterterrorism alignment, FATF compliance, revived diplomatic engagement, and even talk of normalization.
Time will tell whether Pakistan walks this new path. But if the United States steps forward, it may find in Pakistan a more reliable, more responsive partner than once thought possible.
Rosen is chairman of the American Jewish Congress.
