From Crypto to Crude Oil: Is Pakistan Poised to Spread Terror in India Again Using US Funds? A Return to a 40-Year-Old Pattern
By Abhijat Shekhar Azad, Navbharat Times | August 11, 2025
Washington D.C.: A worrying pattern rooted in history seems to be repeating itself in South Asia. For over four decades, a complex and controversial relationship between Pakistan and the United States has involved heavy US funding funneled into Pakistan, only for some of those resources to ultimately support militant groups targeting India. Recent developments have raised fresh suspicions that this decades-old cycle may be reemerging—this time with new financial instruments like cryptocurrency and ventures involving crude oil.
The Historical Context: A 40-Year Cycle
Since the 1980s, the United States has invested billions of dollars into Pakistan, primarily to support efforts in Afghanistan. However, these funds were often reportedly diverted by Pakistan’s Inter-Services Intelligence (ISI) to nurture extremist groups such as Al-Qaeda, the Taliban, and others, many of which have perpetuated terror activities in India. The 2000s bore witness to similar dynamics when under US President George W. Bush’s administration, Pakistan was designated as a "Major non-NATO ally." Despite receiving aid, Pakistan is alleged to have continued providing sanctuary, weapons, and training to Taliban militants who targeted American forces in Afghanistan, revealing a persistent betrayal of US trust.
This pattern persists today with Pakistan again fostering militant threats against India, while simultaneously being courted by the United States as a critical ally in the region.
Crypto Ventures and Geopolitical Links
Adding a new dimension to this saga, reports have revealed that Pakistan has invested in a cryptocurrency company tied closely to Donald Trump’s family circle. Steve Witkoff, a known golf partner of former President Trump and appointed by him as a Middle East envoy, has a son, Zachary Witkoff, whose crypto firm reportedly attracted Pakistani investment. Intriguingly, Trump’s own sons and son-in-law are shareholders in the same company.
This investment unfolded during a tense period between India and Pakistan in May 2025, coinciding with Zachary Witkoff’s visit to Islamabad, where he met Pakistani Prime Minister Shehbaz Sharif. Observers speculate this signals a strategic attempt, potentially involving Trump’s influence, to transform Islamabad into a ‘cryptocurrency capital’—a new financial front that could support Pakistan’s broader geopolitical ambitions.
The Crude Oil Ambition and Strategic Concerns
Beyond crypto, Donald Trump is reportedly interested in securing crude oil from Pakistan’s Balochistan region to export to India. However, this venture faces significant skepticism. Experts question the true extent of recoverable oil in Balochistan, citing reports that the reserves may be too scant to justify the enormous costs of setting up extraction and refining infrastructure. Additionally, Pakistan’s financial incapability to fund such costly projects raises doubts about the feasibility of this vision.
Complicating matters, China already has a substantial economic footprint in Balochistan, leveraging significant investments there. Given the Sino-Pak nexus, it is unclear whether Pakistan would readily accommodate increased American economic involvement or how this alignment might impact regional strategic balances.
Renewed Military and Intelligence Ties: Risks for India
Further heightening concerns is the revived closeness between the US Central Command (CENTCOM) and Pakistan’s military leadership. CENTCOM chief Michael Kurilla recently received Pakistan’s highest honor, and Pakistan Army Chief General Asim Munir was invited to attend Kurilla’s retirement ceremony. Given CENTCOM’s intelligence focus on extremism in the Middle East, this deepening engagement poses risks—there is apprehension that Pakistan could leverage extremist proxies once again to foment instability in India.
At the same time, General Asim Munir has been issuing aggressive nuclear threats toward India, calling the prospect of a nuclear confrontation "a jackal’s howl," exacerbating already tense bilateral relations.
The Indian Perspective: Heightened Vigilance Urged
Indian security analysts warn that US military and financial aid to Pakistan has historically carried the peril of being redirected to terror networks targeting India. Given the resurfacing of this 40-year-old pattern—now involving modern elements like cryptocurrency and contested energy resources—India is urged to exercise extraordinary caution and bolster its vigilance.
The enduring double game played by Pakistan, simultaneously drawing support from the US while nurturing proxies that destabilize the region, continues to challenge South Asian peace. With new financial technologies and geopolitical maneuvers at play, the stakes have only grown higher, demanding careful strategic responses.
About the Author:
Abhijat Shekhar Azad is an international affairs journalist at Navbharat Times with over 16 years of experience specializing in geopolitics and defense issues. He has covered elections worldwide, reported extensively on defense procurement, and regularly engages with diplomats and military experts. Educated in English Journalism at the University of West Bengal, he hosts the weekly defense-focused video interview series ‘Border-Defense’.
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