Pakistan says wants ‘strongest relations’ with US despite iron-clad partnership with China

Secretary of State Marco Rubio and Pakistani Deputy Prime Minister and Foreign Minister Ishaq Dar (left) pose during a photo opportunity at the State Department in Washington on July 25, 2025. (AP/File)
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Updated 27 July 2025
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Pakistan says wants ‘strongest relations’ with US despite iron-clad partnership with China

  • Pakistan Deputy PM Dar says his Friday meeting with US secretary of state was “very cordial” 
  • Pakistan maintains a tricky balance in its relations with the US and its traditional rival, China

ISLAMABAD: Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar said on Sunday Islamabad wished for “strongest relations” with the United States (US) despite enjoying an iron-clad partnership with Washington’s rival, Beijing.

Pakistan maintains a tricky balance in its relations with China and the US. While aligned with the US for military cooperation and counter-terrorism efforts, Islamabad has strengthened economic ties with Beijing through initiatives like the multi-billion-dollar China-Pakistan Economic Corridor (CPEC). 

Relations between Washington and Beijing have been strained over the past several years as both world powers compete for global influence in several domains. The US and China have disagreements over several issues such as trade, Taiwan, the South China Sea and China’s Belt and Road Initiative.

“Our government and we have emphasized and will continue to emphasize that our relations and iron-clad brother partnership with China, our relations [with the US] should not be looked at through that lens,” Dar, speaking to the Pakistani community in New York, said during a televised address. 

“We want strongest relations with the United States of America as well.”

Dar pointed out that Islamabad, under the previous government of Prime Minister Shehbaz Sharif from 2022-2023, had made it clear to Washington that this was its official policy. However, the Pakistani foreign minister said the Joe Biden administration did not engage with Islamabad. 

“I’m glad that they [Trump administration] have actively engaged themselves with us,” Dar said. 

Dar met US Secretary of State Marco Rubio in Washington on Friday in a face-to-face meeting, during which the American official recognized Pakistan’s “constructive role” for peace in the region and worldwide. 

The Pakistani deputy prime minister pointed out that this was the first time in nine years that the foreign ministers of the US and Pakistan had met each other.

“I would say the meeting was very cordial, we touched all the regional and global issues. We touched our bilateral issues,” he said.

Dar is currently on an eight-day visit to the US till July 28, where he kept a busy schedule in New York and chaired several high-profile United Nations Security Council meetings under Pakistan’s rotating presidency this month.


Pakistan opens real-time digital payment system to exchange companies as reserves edge up

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Pakistan opens real-time digital payment system to exchange companies as reserves edge up

  • Raast enables low-cost transfers between banks, microfinance firms and electronic money wallets
  • Pakistan’s overall foreign reserves stand at $21.25 billion as central bank holdings rise $16 million

KARACHI: Pakistan’s central bank on Thursday allowed exchange companies to route home remittances through its instant payment system, Raast, saying the move aims to promote digital transactions and improve the efficiency of inflows, as the country’s foreign exchange reserves rose modestly in the latest week.

The State Bank of Pakistan (SBP) said in a statement that the country's total liquid foreign reserves stood at $21.25 billion as of Jan. 9, while the central bank’s own reserves rose $16 million to $16.07 billion.

The statement said the decision to extend Raast to exchange companies forms part of the central bank’s broader push to strengthen digital payments infrastructure and support a shift toward a cashless economy.

“Building an innovative and inclusive digital financial services ecosystem is one of the key objectives of State Bank of Pakistan under its Strategic Plan 2023-2028,” the SBP said.

“In furtherance of this vision, SBP has now allowed Exchange Companies (ECs) to utilize ‘Raast,’ a state-of-the-art payment system launched by SBP in 2021, to facilitate remitters and beneficiaries of home remittances,” it added.

Raast, a real-time digital payment system, allows instant and low-cost transfers between banks, microfinance institutions and electronic money wallets.

“Through this enablement, the beneficiaries receiving remittances through ECs can receive their funds in their accounts and wallets ... in a safe and efficient manner,” the statement said.

Pakistan relies heavily on workers’ remittances from abroad and has been seeking to channel more inflows through formal banking systems by strengthening digital and regulated payment networks, as authorities try to curb informal mechanisms such as hawala and hundi, underground value transfer systems that move money outside the banking sector.