Pakistan’s Economic and Trade Potential in Regional and Global Power Shifts: A Way Forward

Abstract

Pakistan’s strategic location and shift towards economic diplomacy and regional integration allow it to harness its geopolitical potential. The main aim of this exploratory study is to highlight the trade and economic opportunities and potential of Pakistan with its neighboring regional and global partners for long-term fiscal relations and positive economic gains to support its economy and relations. Despite challenges with neighbors Iran, Afghanistan, and India, economic interdependence can revitalize the ancient Silk Route, boosting regional trade. Game-Changing Initiatives like China Pakistan Economic Corridor (CPEC) and Shanghai Cooperation Organization (SCO) membership offer opportunities for Pakistan’s geo-economic growth; the MENACASA region (Middle East, North Africa, Central Asia, and South Asia) is the bedrock of global power competition. Despite the unfavorable political and trade circumstances, the trade potential with India is estimated at $37 billion among the neighboring countries. The current formal bilateral trade with Islamic neighbor Iran has a volume of $2.3 billion with an ambitious target of $5 billion as a five-year trade cooperation plan from 2023 to 2028. As a way forward, the study suggested ways to increase of cooperation of the regional countries by promoting the culture and history. In this regard, free trade agreements(FTAs) can be realized to begin economic and trading integration in the region.