Dhruva Jaishankar, Executive Director of Observer Research Foundation America, has highlighted a significant challenge in India-US relations centred around America's renewed engagement with Pakistan’s military leadership.

He raised this point during a hearing organized by the House Foreign Affairs South and Central Asia Subcommittee, themed "The US-India Strategic Partnership: Securing a Free and Open Indo-Pacific." Jaishankar underscored that Pakistan’s military involvement remains a sensitive issue for India given its history of using non-state terrorist groups against the country.

Jaishankar pointed out that India believes third-party mediation efforts, often led by the United States, have historically enabled Pakistan’s aggressive posturing rather than resolving core disputes.

He explained that the US pursues a policy of ‘de-hyphenation’, engaging Pakistan and India separately while minimising direct involvement in their bilateral conflicts. Despite this, Jaishankar suggested there is substantial potential for India-US collaboration if issues surrounding Pakistan and trade can be effectively managed.

These remarks come against a backdrop of intensified US economic engagement with Pakistan, particularly in the resource-rich province of Balochistan. Recently, the US Export-Import Bank approved USD 1.25 billion in financing for the Reko Diq mining project, which aims to extract critical minerals.

The US Embassy in Islamabad has termed this a ‘game-changer’ for both local communities and US businesses, citing job creation estimates of 6,000 in the US and 7,500 in Balochistan from the project.

Natalie A Baker, Charge d'Affaires ad interim at the US Embassy in Islamabad, emphasised that this commercial deal aligns with the Trump administration’s diplomatic approach, which focuses heavily on economic partnerships.

She highlighted that the financing would bring high-quality US mining equipment and services to Pakistan, spotlighting it as a model for similar future ventures.

The US move to deepen economic ties is part of a broader outreach aimed at Pakistan, following earlier initiatives such as a trade partnership focused on Pakistan’s oil reserves announced by Donald Trump in July.

Trump indicated that the partnership could potentially result in Pakistan selling oil to India one day, despite diplomatic tensions. However, this announcement came shortly after the US imposed tariffs and penalties on India, complicating the regional dynamics.

Earlier in 2025, after the May conflict marked by the Pahalgam terror attack that killed 26 people, Trump hosted Pakistan Army Chief Asim Munir at the White House. Trump praised Munir for preventing escalation into a full-scale war, stating that the visit was to thank Munir for his role in ending hostilities. Munir’s visits to the US, including a subsequent trip in August, involved statements critical of India, including threats related to infrastructure projects and reaffirmation of Pakistan’s claim over Kashmir.

India has consistently rejected such rhetoric, regarding Kashmir as an integral part of its territory and dismissing Pakistan’s claims as baseless. The Ministry of External Affairs spokesperson Randhir Jaiswal firmly refuted the notion that Kashmir is anything but an Indian union territory, asserting that Pakistan’s engagement relates only to the parts it illegally occupies.

Pakistan’s appreciation for the US role is reflected in its nomination of then President Trump for the Nobel Peace Prize, a gesture thanking him for what Pakistan perceives as instrumental diplomatic intervention during the May conflict. Pakistan Prime Minister Shehbaz Sharif also praised Trump as a ‘man of peace’ during his UN General Assembly speech and reiterated the nomination.

However, India clarifies that the cessation of hostilities was achieved not primarily due to US diplomacy but following direct military-to-military communication between the Director Generals of Military Operations of the two countries.

This distinction highlights India’s preference for direct bilateral mechanisms over third-party mediation in managing Pakistan-related conflicts.

Overall, the evolving US engagement with Pakistan—especially its military leadership—and the growing economic partnerships underline persistent complexities in India-US relations.

Balancing strategic ties with India while expanding commercial and diplomatic interactions with Pakistan remains a delicate exercise for Washington that will require nuanced handling to sustain and deepen the Indo-US partnership.

Based On ANI Report