Changing Their Economic Strategies
Changing Their Economic Strategies: Geoeconomics means using economic tools to achieve political goals. Experts first used the term during the Cold War. Back then, countries used economic pressure to gain an advantage over rivals. Later, some thought trade and markets would become more important than military power. But conflicts never fully disappear, so this has not happened completely.
Global Conflicts
Conflicts continue worldwide. Last year, 49 countries faced armed conflict. Conflict-related deaths reached record highs. This shows that geoeconomics works with geopolitics. Countries influence others using tariffs, sanctions, export bans, subsidies, foreign aid, and other economic tools. Nations active in global trade, finance, or technology have more power to use geoeconomics effectively.
China shows how geoeconomics works. It used economic strength to increase political influence. Now it also focuses on military power. Singapore, though small, became a trade hub by using its location wisely.
Geoeconomics Strategy
Pakistan introduced geoeconomics in its 2022 security policy. The policy defines security broadly: defense, economic stability, and human security. Geoeconomics can help Pakistan use its location and regional connections. Pakistan sits at the crossroads of South, West, and Central Asia. This gives access to energy, large populations, and young workers. To benefit, Pakistan must promote regional peace and strengthen its own economy.
Pakistan can work with China through CPEC and connect with Central Asia and Eurasia. The country must secure internal stability to protect investments. The government’s recent handling of security challenges shows it understands this need.
Saudi Investments
Pakistan should also cooperate with the United States in oil, gas, and mineral development. Today, Pakistan cannot pick one global power. It must compete and cooperate at the same time. Saudi Arabia’s Vision 2030 offers investment opportunities, supported by the Pak-Saudi Strategic Agreement. Pakistan can also expand trade with Iran, especially through border markets, after improved Iran-Saudi relations.
Obstacles remain. India seeks regional dominance, blocking east-west connectivity and regional cooperation. Afghanistan’s Taliban works with India, causing trouble. Pakistan’s firm approach shows these countries what they lose by ignoring cooperative geoeconomics.
Trade Reform
Finally, Pakistan must improve trade and investment rules. It should make business easier, conduct feasibility studies, and strengthen legal frameworks for deals. The country must show it is ready to use its geography and economic opportunities to grow.
Published in Dawn, 2nd November 2025
