World
US Warns Pakistan Over "Debt Traps" as Islamabad Clings to Bailouts and Foreign Dependence

US Chargé d’Affaires Natalie Baker has indirectly flagged Pakistan’s worsening economic vulnerability, warning that Islamabad must avoid falling into any country’s “debt trap” a remark widely interpreted as a critique of Pakistan’s heavy reliance on external financing, particularly from China. Speaking informally to journalists at Aiwan-e-Sadr on Sunday, where she attended the ceremony conferring Nishan-e-Pakistan on Jordan’s King Abdullah II, Baker repeatedly stressed that Pakistan’s sovereignty is at stake if the country fails to reform its chronically mismanaged economy.
US Subtlely Questions Pakistan’s China Tilt
When asked about Pakistan’s deepening ties with China, Baker said Pakistan was “a free and sovereign country” capable of choosing its partners but immediately warned that Islamabad must “carefully protect its economic sovereignty and interests.”
Her reference to “any project that leads a country into a debt trap” was a clear caution to Pakistan, whose mounting external liabilities and dependence on Chinese loans have generated global concern. Washington, she added, was “fully aware” of the sensitivity of Pakistan-China relations a diplomatic way of signalling that the US views Pakistan’s economic direction with alarm.
IMF Compliance Framed as Pakistan’s Only Way Forward
Baker emphasised that Pakistan’s economic stability hinges on full compliance with the IMF’s reform agenda, something successive governments have resisted due to political costs. She noted that the World Bank was also extending “effective support,” underscoring how heavily Pakistan’s survival now depends on foreign institutions.
Asked whether the IMF and World Bank were too strict, Baker rejected the notion, saying the reforms demanded were necessary for a “better and sustainable economy.” Her message reflected Washington’s view that Pakistan’s financial collapse is not caused by lenders’ requirements but by Islamabad’s inability to reform its own broken system.
Pakistan’s Dependence on Washington Acknowledged, Not Denied
While Baker insisted Pakistan’s relationship with the United States “continues to progress,” her repeated references to sovereignty and structural reforms underscored a reality Pakistan seldom admits: its economic independence has eroded, and its foreign policy is increasingly shaped by financial desperation.
Her assurance that the US was helping Pakistan “with a big heart” highlighted how Islamabad remains reliant on goodwill rather than economic strength.
A Trump Visit “Someday” — If Pakistan Becomes Worth the Time
Responding to a question about a possible visit by President Trump, Baker said he would visit Pakistan “once he found time from his international commitments.” The vague answer reinforced Pakistan’s declining priority in Washington’s global agenda.
This image is taken from The Diplomats



