Pakistan’s Oil Deal With US Hints At Strategic Shift, Poses Challenge To China’s Hold Over Gwadar
Pakistan’s recently concluded oil agreement with the United States signals a major shift in its geopolitical stance, suggesting a move away from its long-standing China-focused strategy in regional alliances. The development is widely seen as a message to Beijing that its exclusive access to vital areas like Gwadar is no longer guaranteed.
According to diplomatic sources, Islamabad is using this deal to create a competitive environment between two global powers—China and the US. Through this, Pakistan is attempting to secure greater financial and defence commitments from Beijing under the China-Pakistan Economic Corridor (CPEC), while also pushing Washington to enhance its economic assistance, infrastructure investments, and political involvement in the region.
“Pakistan is carefully navigating a strategic balancing act, making use of its geographical importance to negotiate better deals from both China and the US. The government intends to utilise Chinese capabilities in infrastructure development, while depending on the US for diplomatic backing in global platforms like the IMF and FATF,” the sources said.
The recent announcement by US President Donald Trump about the discovery of significant oil reserves in Pakistan reflects America’s long-term strategic goals in the region. Analysts believe this is part of a broader effort to secure American access to Balochistan—a province rich in natural resources and geopolitically significant, sharing a border with Iran and located close to the key Gwadar port.
Under the oil agreement, the US is legally allowed to deploy American engineers, contractors, and security forces in Pakistan’s sensitive zones, particularly in Balochistan. The province’s difficult terrain provides strategic vantage points to observe movements along the CPEC route, thereby giving the US critical surveillance capabilities over China’s operations.
The United States is planning to set up forward-operating bases for business and intelligence in Balochistan, enabling a multi-dimensional presence that includes energy exploration, mineral development, and military logistics. Observers point out that this approach is similar to America’s strategy in Iraq in 2003, where commercial and defence interests were merged to ensure long-term influence.
Pakistan’s fragile economic situation has played a crucial role in making Islamabad more open to these kinds of arrangements. The country’s ongoing financial troubles have exposed vulnerabilities that both the US and China are aiming to capitalise on—using a mix of financial aid, infrastructure offers, and political backing to increase their footprint in Pakistan.
This agreement is expected to significantly alter the power balance in the region. China, which has made large-scale investments in CPEC and sees Gwadar as central to its Belt and Road Initiative, is now facing a potential rival in the form of a growing US presence. Experts suggest that Pakistan’s move is aimed at preventing either superpower from having unchecked control over its key strategic corridors.
Pakistan’s recent partnership with the United States, therefore, appears to be a carefully crafted geopolitical strategy. By maintaining a balance between Chinese and American interests, Islamabad hopes to boost its strategic influence, gain critical economic assistance, and position itself as a key player in the shifting regional landscape of South Asia.
