Trump's "art of transaction" diplomacy has just achieved global victory - no shot

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Something extraordinary happened Friday, but you probably didn’t see it in the headlines.

In Washington, the International Monetary Fund (IMF) quietly approved Pakistan's $2.3 billion bailout plan. On the surface, this is just another financial transaction. But on the surface, this vote tied together three of the world's most pressing foreign policy theatres: India-Pakistan, Ukraine-Russia and the United States-China.

Pakistan retreats from the brink of war within the White House’s efforts to pull India

And common thread?

President Trump returns to the diplomacy of "the art of transaction".

The $2.3 billion IMF package includes $1.3 billion under the Extended Fund Facility (EFF) under the $1 billion equity and Resilience and Sustainability Facility (RSF). But many experts were even surprised that even this vote happened, let alone the past.

Just last year, Pakistan's IMF's bailout aspect was determined by the assistance of the NATO region during the Ukrainian war. The Biden administration relies heavily on Pakistan to support the transfer of weapons, using routes like Nur Khan Airbase to deliver ammunition to Europe.

Indian soldiers standing in Kashmir Muslim man walking by indian-controlled Kashmir on Friday, May 9, 2025. (AP Photo/Mukhtar Khan) (AP)

This time, the vote looked shaky. The Trump administration has made it clear that it wants to end the war in Ukraine, all of which are bleeding without clear gains. Meanwhile, India lobbies the International Monetary Fund and the Financial Action Working Group (FATF) on the grounds of terrorist financing issues to prevent funding to Pakistan.

Then voted.

India abstained. The same is true for China and Russia. "Yes" votes come from the United States and the United Kingdom.

If you’re wondering why the United States under Trump’s second term would cash out loans to countries linked to terror in the war, here’s the answer: because the deal is much bigger than Pakistan.

Let's unravel what may happen.

Strategic franchise from India?

India's abstention has confused many people. It opposes the strong stance of IMF loans, believing it violates the basic principles of counter-terrorism financing. To make India slide mark something else is working.

Trump's first foreign focus is to reprocess the US global trade deal, and India is high on the list. The president has long called India the "tariff king" and is in talks to reduce agricultural and industrial tariffs. In fact, Vice President JD Vance has been sent to New Delhi instead of the low-level envoy.

Vance's trip to New Delhi is key. (AP Photo/Julia DeMary Nickinson)

There are signs that the deal is over. But India blamed the Pakistani group in a terrorist attack in Kashmir. India-The U.S. trade deal is stuck in a holding pattern.

Now, India’s IMF abstention doesn’t seem like inaction, but more like a trade-off: a quiet concession in exchange for a wider trade deal with the United States

Pakistan's clock ticking

Pakistan ran without a single person. It reportedly had only four days left for ammunition and faced an almost complete economic collapse. Although some NATO members have sent emergency aid, the United States itself has been working to reduce NATO entanglement and gradually withdraw from military support in Ukraine.

But it's getting even more interesting here.

The United States has long held an internal debate on Pakistan. During the Cold War and the War on Terror, some intelligence agencies viewed Pakistan as a necessary companion, even if it meant funding terrorist groups such as the jihadists. In recent years, others have moved to India to China's natural counterweight.

This division in the American security community is important because it means that the struggle against Pakistan is both internal and external.

However, the Trump administration pushed for the vote.

Why?

One possible condition: a ceasefire in the India-Pakistan conflict.

But there may be another condition - a fingerprint with Chinese.

Why did China sit down?

If there is a country that can profit from Pakistan's financial growth, it is China.

Pakistan expresses its deep gratitude through belt and road infrastructure transactions. More importantly, most of its military imports come from Chinese manufacturers. Any fresh IMF cash could end up buying Chinese weapons.

So, why is China reluctant to vote on Pakistan’s loans?

Simple: Because Trump may ban it.

Sources close to the matter show that strict terms are placed on loans, believing that IMF funds cannot be spent on China or Russian weapons systems, but only on the United States. This alone can eliminate China's motivation to support parcels.

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In addition, China's abstentions began to become meaningful in the Indian-Pakistan conflict.

One vote. Three wins.

By pushing this IMF program forward under strict conditions, the Trump administration seems to have made extraordinary moves:

Vote all.

No headlines. No press conference. No successful statement.

But that's usually how the power works.

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Critics may laugh at Trump's idea of ​​having the ability to engage in high-level diplomacy. But for those who track buildings with global influence, it's not noise. This is a signal.

This reminds us that when American power works with strategic clarity, there is no need to announce itself loudly.

It just needs to move the board. quietly. Totally. Effectively.

And, if you watch this closely, you see it.

Click here for more information about Tanvi Ratna

Tanvi Ratna is a policy analyst and engineer with ten years of equity experience in the intersection of geopolitics, economics and technology. She has worked on Coindesk and Capitol Hill in others, thus shaping policies across sectors from manufacturing to AI. Follow her Judicial Craft x and Alternative.