Pakistan’s economy had a rather bleak first quarter this year. The country has seen a dramatic increase in political unrest alongside an ongoing international crisis. With the ongoing blame game surrounding the international geopolitical framework between Pakistan and the United States, it is important for us to understand the current economic trade of Pakistan between the eastern and western blocs in order to better understand the geoeconomic position of Pakistan.
At the Islamabad Security Dialogue in March 2021, Pakistan announced a paradigm shift from geopolitics to geoeconomics, where the foundation of foreign relations would derive from economic fortune emanating from strategic alliances rather than political interests. Pakistan’s recent political dynamics have placed the country in a conundrum, defeating the purpose of geoeconomics-based foreign and domestic policies, obliterating our relationship with six of our top ten trading partners.
Like it or not, the historic love-hate relationship between the United States of America and Pakistan has proven fruitful for the Pakistani economy, with the United States being our biggest trading partner. Out of Pakistan’s top ten export partners, six are Western countries, all of them are part of NATO, while four are Pakistan’s Eastern trading partners, namely China, Bangladesh, Afghanistan and UAE. United Arab Emirates (UAE).