A-2: Going against the grain: Implementation Pakistan’s Geo-economic Pivot Amidst Geopolitical Chaos
- Pakistan should update and reissue the National Security Policy (NSP) to reaffirm commitment to the geoeconomic vision, integrating new realities like global protectionism and shifting regional dynamics. Political ownership of the revised NSP would convert it from a legacy policy into a living national strategy.
- Create an empowered coordination hub, under the Deputy Prime Minister or revived National Security Division, to serve as Pakistan’s “economic diplomacy czar.” A central office would eliminate duplication between the Ministries of Commerce/Finance and Foreign Affairs, ensure synergy across federal and provincial institutions, and make Pakistan’s international economic outreach more targeted and measurable.
- Formally launch an Economic Outreach Initiative (EOI) led by the Prime Minister to align exports, FDI, and labour exports under one umbrella, with an apex body uniting all relevant ministries and provincial nominees. The EOI can consolidate fragmented economic engagements into a single national narrative, enabling Pakistan to pitch itself globally as a partner in trade, investment, and development rather than as an aid-dependent economy.
- Clarify the division of labour between the Special Investment Facilitation Council (SIFC), the Board of Investment (BOI), and provincial counterparts, in sync with their mandates on export-oriented FDI and investor retention. A coordinated investment ecosystem is vital to attract and sustain high-quality FDI. Clear institutional roles, predictable policies, and data integration will build investor confidence and reduce bureaucratic friction.
- Revise the Strategic Trade Policy Framework (STPF) with updated sector priorities, demand mapping, and new performance metrics for diplomats and Trade and Investment Officers (TIOs). Linking trade policy with emerging global markets and hiring specialised commercial diplomats will help Pakistan shift from low-value exports to high-return sectors, closing the competitiveness gap.
- Adopt country-specific labour export plans backed by skills development, accreditation agreements, and digital one-window systems for overseas employment. Labour exports are Pakistan’s most reliable source of non-debt foreign inflows. Structured, skilled migration can transform remittances into a deliberate economic growth instrument rather than a by-product of necessity.
- Deepen economic and transport links with China, Central Asia, and other South Asian countries. While regional politics constrain east-west integration, Pakistan can still expand north-south and westward linkages through CPEC, TAPI, CASA-1000, and new digital corridors, strengthening its hub status despite India’s non-cooperation.
- Use cultural diplomacy, international events, academic exchanges, and regional business forums to reshape Pakistan’s global image. Perception directly affects investment and tourism. Soft power initiatives can recast Pakistan as an open, creative, and secure destination for global business and people-to-people exchange, complementing its economic diplomacy efforts.
