The PAK-U.S. alliance in the fight against terrorism: a cost-benefit analysis

Abstract : The cost-benefit equation of the Pakistan-U.S. alliance in the fight against terrorism reflects a direct correlation between the fluctuating patterns of U.S. assistance and their direct and indirect implications for Pakistan. While the United States strives to achieve a better return on its investment through military-oriented support, Pakistan seeks to adopt an approach that suits both the United States and its own domestic and regional interests. This research traces the trend of Pakistan-U.S. relations, highlights the impact of fluctuating U.S. aid in shaping perceptions, and provides a game theoretical analysis on the issue. Besides highlighting measures to achieve cost effectiveness through micro-alliances, decentralization, accountability, and transparency in fund management, the study supports the development of entrepreneurial culture and micro-alliances in Pakistan. More importantly, it provides an in-depth analysis of the military and population-centric approaches and their associated costs and benefits for the two countries. The research concludes by suggesting a more population-centric U.S. approach towards Pakistan to achieve a better return on investment and to lay the foundation for a long-term strategic alliance. It suggests future research on the prospects and methodology of achieving a long-term partnership between the two nations.