SDPI’s Twenty-sixth Sustainable Development Conference (SDC)

POLICY RECOMMENDATIONS

Plenary 1.1. 

Balancing Geostrategic and Economic Diplomacy

Implementing the following strategies will require concerted effort from all levels of government, especially the diplomatic corp and active engagement with stakeholders, including civil society and the private sector. The goal is to create an economic diplomacy framework that is responsive, stable, and capable of driving Pakistan towards sustainable development and prosperity.

The government, therefore, needs to:

1. Acknowledge and actively address macroeconomic challenges such as inflation, import pressures, and weak connectivity. This involves implementing strategic measures like planned development partnerships and privatisation.
2. Reduce the size of the government to make it more efficient and cost-effective. This involves eliminating redundant roles, merging overlapping departments, and focusing on core functions. Streamlining should aim to improve service delivery, reduce bureaucracy, and improve governance.
3. Implement measures to ensure greater political stability. This includes encouraging long-term policy planning rather than short-term political gains. Political stability is crucial for attracting investment, maintaining economic growth, and ensuring effective implementation of policies.
4. Shift from short-term, reactive policymaking to a long-term, strategic approach. This requires the government to engage in comprehensive planning, considering future challenges and opportunities. Long-term policies should be grounded in data and analysis, and be flexible enough to adapt to changing circumstances.
5. Establish clear boundaries between political and economic decisions. This separation is crucial for creating a stable and predictable economic environment, attractive to investors and beneficial for long-term economic planning.
6. Undertake comprehensive bureaucratic reforms to streamline government operations and make them more conducive to economic growth and efficient administration.
7. Invest in the education and training of individuals to become experts in specific policy areas. This specialisation is essential for informed decision-making and effective policy implementation.
8. Focus on enhancing regional connectivity as a cornerstone of Pakistan’s geopolitical and geoeconomic strategy. This would involve fostering development partnerships that are regionally focused and aim to improve transportation, trade links, and economic cooperation with neighbouring countries.
9. Foster a non-zero-sum approach in international relations, stressing collaboration over competition. Focus on aligning diplomatic efforts with Pakistan’s national interests independently.
10. Actively seek new international partners and investors. Explore and develop new sectors for trade and investment to broaden economic opportunities.
11. Diplomats should prioritise economic diplomacy, adapting to global economic shifts. This involves understanding and promoting Pakistan’s economic interests internationally.
12. With limited resources, Pakistan must intensify efforts to create more economic opportunities, focusing on areas with high potential for growth and innovation, such as services sector and knowledge economy.
13. Shift focus to commercial interests while understanding their increasing dominance in international relations. This involves reorienting policies and strategies to cater to contemporary commercial realities.
14. Develop non-traditional, innovative economic strategies in response to the changed geopolitical landscape post-US withdrawal from Afghanistan. This includes diversifying economic activities and creating unique economic value.
15. Encourage deeper understanding among foreign ministers of the private sector. Enhance coordination between the private sector and foreign ministries to align diplomatic efforts with market realities.
16. Incorporate advanced technology to modernise diplomatic processes and restructure embassies, making them more efficient and responsive to contemporary challenges.
17. Adopt a specialised approach towards global economic diplomacy, recognising its unique requirements and potential impact.