Pakistan’s Geo-economic Imperative By Muhammad Riaz Shad
Pakistan’s foreign policy has significantly been shaped by the complex interplay of external geo-political factors including the great power contestation and regional security dynamics.Only recently, Pakistan has expressed its intent for a shift to geo-economics through National Security Policy (NSP) 2022. The Geo-economics is a widely used term that carries varying meanings for different actors depending on the context, objectives and economic tools ascribed to it. Geo-economics as a foreign policy approach emerged in the Western world in post-cold war era and ultimately became a Machiavellian concept. In this sense, it is perceived as the pursuit of power politics through economic means.This conception suggests that geo-economics is just an extension of geo-politics.However, in a liberal context, geoeconomics signifies the use of economic instruments and geographic location to benefit from international economic cooperation.
In Pakistan, the debate on geo-economics takes into account both realist and liberal approaches. The NSP adopts a cooperative framework for geoeconomics. This involves prioritisation of economic agenda in Pakistan’s external relations with an increased focus on intra-regional and inter-regional trade and economic connectivity. By implication, it is assumed that Pakistan’s foreign policy based on a geo-economic orientation can help the country adopt a neutral posture towards major powers. Notwithstanding the realist and liberal connotations of geo-economics, Pakistan’s shift towards geo-economics is need of the time.
Success of any policy depends on its effective implementation. Unfortunately, Pakistan has not yet undertaken a clear direction towards a foreign policy that prioritizes geo-economics. Having a volatile neighbourhood, Pakistan has always been concerned with its territorial integrity and national security. Ever since independence, it has confronted a number of issues including territorial claims from Afghanistan and dispute of Jammu and Kashmir with India. Particularly, the conflict with India has majorly shaped Pakistan’s foreign policy dispensation. It has consistently sought to ally itself with the foreign powers to counter Indian hegemonic ambitions in South Asia.
In this context, the US is the most important major power in Pakistan’s strategic calculus. Pakistan has experienced the longest engagement with the US, characterized by both cooperation and estrangement. Both states were allies during the cold war and adopted common anti-Soviet policiesaimed at the containment of communism.Recently, Pakistan has played key role in the US-led war against terrorism in Afghanistan. Though Pakistan received economic and military assistance,its collaboration with the US had a socio-economic and political cost.Still, the US discarded the previous levels of cooperation once its geopolitical purpose was fulfilled.
The past few years have witnessed another development causing further divergence between the US and Pakistan. The US is troubled with the Chinese rise,particularly in the Asia-Pacific region.This affects Pakistan as well. Pakistan-China relations have deepened over the years as the CPEC promises to enhance regional connectivity and bring economic boost in Pakistan.Chinese programmes for the development of global infrastructure pose challenges for the US regionaland global influence. In this context, the US is concerned about the CPEC and Pakistan-China closer ties. This necessitates that Pakistan should adopt a balanced approach to deal with the two competing powers. And, a geo-economic orientation may prove a pragmatic way forward in this regard.
These examples indicate that Pakistan’s leveraging of strategic location for geopolitical objectives has yielded more challenges than benefits.In current scenario, the regional landscape following the US exit from Afghanistan does not carry much geo-political relevance of Pakistan.Further, India’s rise and its growing economic influence in Middle East and Asia-Pacific undermine Pakistan’s position in regional alignments and geo-strategic games. Meanwhile, Pakistan’s internal dynamics show negative trends. Prolonged political instability has caused disruptions in the continuity of economic policies and achievement of sustained economic growth. CPEC is a big development in the economic realm of Pakistan, but it needs a conducive political and security environment to produce economic dividends.
With these external and internal challenges, Pakistan can barely articulate its geo-political goals. As the countries throughout the world focus on economic growth and become part of regional and global economic groupings, Pakistan cannot afford to be a bystander. The country should not remain stuck in the old-fashioned geo-political games.
Therefore, a paradigm shift towards geo-economics is in its best interest. The geo-economic paradigm can potentially steer Pakistan’s course towards economic security as well as balanced relations with the major powers. For this, Pakistan has to prioritize production, investment, industrial growth and international trade. In short, Pakistan needs an action sooner rather than later towards robust economic growth and competitive economic interdependence characterized by a geo-economic approach. This article is based on the HEC-funded research project under National Research Program for Universities (NRPU).
—The writer is Professor at Department of International Relations, National University of Modern Languages (NUML), Islamabad.
Source: https://pakobserver.net/pakistans-geo-economic-imperative/