Pakistan US political relations are facing a new phase of uncertainty following the Democratic Party’s sweeping victory in the US congressional elections. While political leaders in Islamabad may face increased scrutiny over their close engagement with President Donald Trump, many ordinary Pakistani families are viewing the result as a possible opportunity for economic relief.
High fuel prices and a worsening cost-of-living crisis have put pressure on households across Pakistan. The country, which has a population of more than 240 million and relies heavily on imports, has been particularly affected by rising energy costs linked to the Iran conflict.
Some residents hope a change in Washington's political dynamics could influence US policy towards the conflict, potentially helping reduce oil prices and ease household expenses.
Islamabad’s Close Relationship With Trump Faces Questions
Over the past two years, Pakistan’s leadership has invested significantly in building ties with Trump and his administration. Army chief Asim Munir emerged as an important channel in the relationship, with Trump repeatedly referring to him as his “favourite field marshal”.
Their engagement became particularly visible during a June 2025 meeting in Washington, where discussions reportedly covered security, mining, energy and cryptocurrency.
Pakistan also supported several Trump-led diplomatic initiatives, joined his Board of Peace and nominated him for the Nobel Peace Prize. Islamabad credited Trump with helping end the May 2025 India-Pakistan conflict, although New Delhi rejected the claim that US mediation brought the fighting to an end.
Pakistan subsequently played an intermediary role between Washington and Tehran during the Iran war, relaying messages and hosting talks between the two sides. However, the resulting Islamabad Agreement soon faltered.
Economic Benefits Remain Limited
Despite increased diplomatic access, Pakistan's economic gains have remained limited. The US Export-Import Bank approved USD 1.25 billion in financing for the Reko Diq copper and gold project in December 2025.
However, Islamabad's larger request for a USD 10 billion facility from the US Treasury remained unanswered, leaving questions about the economic returns from its close engagement with Trump's administration.
Pakistan has also pursued agreements involving businesses and individuals linked to Trump and his family. These include discussions involving the USD1 stablecoin issued by Trump-linked World Liberty Financial, a memorandum concerning New York's Roosevelt Hotel and a limited drone order from Powerus, whose investors include Trump's sons.
With Democrats controlling both chambers of Congress, these arrangements could attract greater scrutiny through congressional oversight.
Pakistan Still Has Diplomatic Leverage
Analysts believe the Democratic victory does not automatically signal a breakdown in Washington-Islamabad relations. Counterterrorism cooperation and Pakistan's role in diplomacy involving Iran could remain areas of shared interest.
For Pakistan's leadership, the challenge will be maintaining its relationship with Washington amid changing political priorities. For ordinary families, however, the immediate concern remains the rising cost of fuel, food and everyday essentials.
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