Pakistan’s National Security Policy identifies geoeconomics as a key foreign policy pillar. Pakistan, as a developing nation, relies on the international system for a variety of strategic requirements. To ensure its national security, Pakistan must take a proactive approach to geoeconomics for promoting foreign investments to generate employment possibilities. To do so effectively, Pakistan must grasp the evolving geoeconomic tendencies in its region.
Pakistan has a geoeconomic interest in fostering deeper economic integration with its neighbours, particularly through trade. Regional trade liberalisation is likely to expand market access to attract foreign enterprises, boost employment prospects, and take advantage of advanced technologies.
Additionally, agreements with global corporations might result in the transfer of technology. By encouraging technology transfers and cross-border investments, Pakistan may harness its natural resources, geoeconomic assets, and technology to bolster national security. Pakistan must also employ geoeconomic instruments to encourage foreign investment and financial ties with other nations. International financial links offer greater economic stability by providing access to other markets and currency exchanges.
Pakistan may collaborate with local and international businesses to develop sustainable energy solutions, improve access to water resources, and enhance its infrastructure.
The China-Pakistan Economic Corridor (CPEC) serves as the linchpin and anchor of Pakistan’s geoeconomic ambition. The nearly 2700 km -long CPEC consists of highways, railroads, infrastructure, energy projects, special economic zones, and oil delivery lines.
CPEC is one of the key nodes of the BRI, connecting China’s western province – Xinjiang Region – to the Gwadar Port and beyond; entering from Khunjrab pass and running through parts of Punjab, Sindh, Balochistan, Khyber Pakhtunkhwa, and Gilgit Baltistan; with its final foot in the Arabian Sea via Gwadar Port in Balochistan As a connecting route, CPEC considerably reduces the prices, distance, and time associated with China-bound and China-bound trade.
The corridor might connect East and West. Pakistan grants China rapid access to the Eurasian region, the Middle East, and Africa, so transforming the loop into an integrated market of more than a billion people.
Integration of Pakistani enterprises into the Chinese supply chain and migration of sunset sectors from the mainland will significantly cater to Pakistan’s economy. Pakistan may utilise CPEC as a conduit for east-west and north-south regional connectivity with primary purpose of strengthening its external competitiveness and boosting exports.
In addition to bolstering Pakistan’s economy and supporting China’s aim for the development of its western area, it is proposed that the corridor will provide economic integration to the region to promote stability. CPEC will benefit not only China and Pakistan, but also Iran, Afghanistan, India, the Central Asian region, and the surrounding region. This will result in a well-connected, integrated region of shared destiny, harmony, and growth.
Gwadar, the proverbial jewel of CPEC, is situated at the crossroads of three key trade routes in Asia, including the oil-rich Middle East, Central Asia endowed with natural resources, and South Asia. Gwadar is the entrance to energy from the Persian Gulf and Strait of Hormuz in the east. In 2018, the Energy Information Administration of the United States projected that roughly one-fifth of the world’s daily oil supply went through the Strait of Hormuz.
Approximately 18million barrels of crude oil and gas were reported to transit across the Strait everyday. Gwadar has the potential to become the energy hub of the region due to its proximity to the region’s energy supply. On land, the port can connect Central Asian countries without access to deep water to the CPEC. In addition, it connects China’s interior, granting its western regions quicker and safer access to foreign trade.
Gwadar provides China with improved access to South Asia. Pakistan’s location at the junction of SouthAsia, WestAsia, CentralAsia, and WesternChina makes its geography crucial. Pakistan intends to link Middle Eastern and central Asian energy supplies to China and India’s expanding energy demands. The China-Pakistan Economic Corridor (CPEC) is Pakistan’s greatest geoeconomic opportunity, which should be seized and utilized effectively.
The writer is a PhD in political science.
