Pakistan Seeks to Expand U.S. Relations, Army Chief Says

(Bloomberg) -- Pakistan is seeking to expand its relations with both the U.S. and China, the chief of the country's powerful army said, two days after Prime Minister Imran Khan accused the Biden administration of planning to oust his government by backing a no-confidence vote against him in Parliament.

“We have a history of long and excellent strategic relationship with the U.S., which remains our largest export market,” General Qamar Javed Bajwa said in a speech at a forum in Islamabad. “Pakistan enjoys a close strategic relationship with China demonstrated by our commitment towards Pakistan China Economic Corridor. We seek to broaden and expand our ties with both the countries without impacting our relationship with the other.”

Former cricket star Khan has been hyping up an issue of secret threats by the U.S. to topple his government by aiding the country's opposition groups, who have moved a no-confidence motion against him. State Department spokesman Ned Price has said there was “no truth” to the allegations. The army chief's comments are seen as significant because the military has ruled Pakistan for about half of the nation's existence, and enjoys an outsized role in its foreign and security policies.

Voting in the 342-seat National Assembly will be held on Sunday. Local media reported that Khan's opponents have garnered the support of about 200 lawmakers, 28 more than what's required to vote him out. The premier's allies and many dissidents in his party have said they plan to vote against him. If Khan loses, he will be Pakistan's first elected PM to be voted out in Parliament.

Mysterious Bill Gates Photo Highlights Imran Khan's Army Crisis

In an interview with ARY television on Friday, Khan said he is willing to call early elections if he survives the no-confidence vote, a suggestion put forward by the country's “establishment,” a term normally referring to the Pakistani army. Khan said he won't resign and stands behind his decision to visit to Moscow and meet Vladimir Putin just hours after the Russian leader ordered troops into Ukraine. Khan has also criticized the European Union for asking Pakistan to condemn the Russian attack.

“Sadly, the Russian invasion against Ukraine is very unfortunate,” Bajwa said. “Despite legitimate security concerns of Russia, its aggression against a smaller country cannot be condoned.”

Pakistan's military, once a top recipient of American arms, has also sought a more balanced foreign policy after becoming increasingly reliant on China for weapons. Khan clashed with top generals after publicly disagreeing with the army chief over a key promotion, undermining an important relationship that has helped him stay in power. At the same time, China has aided Pakistan economically with projects worth more than $60 billion under the Belt and Road Initiative.

Pakistan Default Risk Soars, Currency Sinks on Political Turmoil

The political turmoil is roiling Pakistani markets. The nation's default risk as measured by five-year credit-default swaps has climbed and the rupee is trading at a record low against the U.S. dollar. Economists say the tussle may hamper the government's efforts to negotiate the release of the International Monetary Fund's loan installment.

The no-confidence move is led by the opposition including former Prime Minister Nawaz Sharif, as well as Bilawal Bhutto Zardari and his father, former President Asif Ali Zardari -- both co-chairmen of the Pakistan People's Party.

The opposition has named Shehbaz Sharif, the brother of self-exiled Nawaz Sharif, to lead the next coalition government.

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