NAME: KHADIJA MAZHAR

ENROLMENT: 01-111211-047

CLASS: BBA 6E

SUBJECT: PAKISTAN AND GEOPOLITICAL STUDIES

ASSIGNMENT: 01

SUBMITTED TO: MA’AM NAZISH IQBAL

DATE: 23RD OCTOBER 2023

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 Analysis of Article

Navigating The Path Towards Geoeconomics: An Analysis of Opportunities and

Challenges for Pakistan

The article, “Navigating The Path Towards Geoeconomics: An Analysis of Opportunities and
Challenges for Pakistan” by Amjad Mahmood Bhatti and Nataliya Shahrukh discusses the global
shift from traditional Geopolitics to a more economically driven approach, known as
Geoeconomics. It begins by giving a context, i.e., the subsequent surge of multilateralism that
emerged after the breakup of USSR in the 1990’s- emphasizing on the need for collective action
and cooperation among nations to address global challenges such as climate change, terrorism,
and economic instability.

The emergence of multilateralism led to the establishment of various frameworks that promoted
economic interdependence among nations. Economic interdependence became more critical than
geopolitical rivalries, with countries gravitating towards economic collaboration and searching
for mutually advantageous solutions. For instance, China's remarkable economic growth is
quoted as a major incentive for countries worldwide to embrace geoeconomics rather than solely
focusing on geopolitics as a strategy.

Firstly, the article introduces the distinction between geopolitics and geoeconomics, where
geopolitics revolves around political power and influence associated with land, resources,
climate, and general geography, while geoeconomics places a greater emphasis on achieving
national interests through economic relations and alliances among nations. Additionally, the
article highlights the significance of this economic cooperation through initiatives like China's
Belt and Road Initiative (BRI) and the US-led Build Back Better World (B3W) initiative.

Secondly, this article talks about how countries are shifting their focus from traditional politics
based on power and territory (geopolitics) to a more economic approach (geoeconomics) to
protect their security interests. This change has been happening since the end of the Cold War

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when countries realized the need for global cooperation, i.e., multilateralism. Pakistan,
particularly, is making this shift because its economy has been struggling at greater levels.

Furthermore, the article discusses that the United States, China, Russia, the European Union, and
India are some of the major players in this new way of doing things. The United States and
China, for instance, are using their economic power in numerous ways, as US puts economic
pressure on other countries through organizations like the IMF and World Bank, as well as
controlling the dollar and international markets. China, on the other hand, uses economic tactics
like stopping trade with other countries to achieve its goals.

Nonetheless, the article raises a question about the capacity of Pakistan to practically make the
shift to geoeconomics in a world where traditional politics still has a strong influence. Pakistan
has been investing a lot in military power, and that has taken up a lot from its economy, leaving
little for other industries. Poor governance and political instability have also affected Pakistan's
economic growth while its neighbors have been flourishing. The article emphasizes that Pakistan
needs to make smart decisions and create a practical plan while considering its economic
interests, local issues, and foreign influences. By analyzing potential strategies, partnerships, and
economic alliances, Pakistan can use its strengths to achieve its national goals.

The article further discusses how Pakistan's geography has both advantages and disadvantages.
Its location holds high significance because it's right in the middle of several regions, like South
Asia, Southwest Asia, and Central Asia. This means it can be a sort of bridge between these areas
and help connect them. For example, Pakistan can help China by providing a land route for trade
with Western Asia and a way to get energy resources from places like Iran. Pakistan's ports, like
Karachi and Gwadar, are also great for trade and access to the Indian Ocean, which is a very
busy trade route. This is valuable not only to China but also to landlocked countries like
Afghanistan and the Central Asian countries. Likewise, Pakistan's link to the Strait of Hormuz
and the Persian Gulf is important because those areas have lots of oil and natural gas.

On the other hand, the disadvantages include how the United States reflects it support towards
India to counter China, and this has affected Pakistan's economic benefits. Also, events like the

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9/11, political instability, and inconsistent economic policies have damaged Pakistan's economy.
Hence, it is necessary to acknowledge challenges like the US-India partnership, issues in
Kashmir and Afghanistan, and security concerns in Pakistan make things complicated.

Therefore, while focusing on geoeconomics is a good idea for Pakistan, it's not without
challenges, especially with the growing rivalry between the US and China. Basically, Pakistan
needs to create stability, build strategic partnerships, and improve relationships with other
nations. A former foreign secretary of Pakistan, Aizaz Chaudhry, suggested that Pakistan should
focus on becoming more competitive, reducing bureaucracy, and making it easier for businesses
to operate in the country.

We know that Geopolitics is about security and often uses military power, while geoeconomics
focuses on economic well-being and uses economic power. So, for Pakistan to shift towards
geoeconomics successfully, it may need to shift its focus on security and politics towards
economic opportunities. Additionally, Aizaz Chaudhry suggested that instead of being overly
cautious about its difficult neighborhood, Pakistan could benefit a lot from its location, which
connects different regions with many people and hence a lot of money. To do this, Pakistan
should try to get along peacefully with its neighbors, and keep a positive international image to
attract investment, tourism, and trade, etc.

Also, the article discusses different options available to Pakistan, such as aligning with the
eastern bloc, continuing with the China Pakistan Economic Corridor (CPEC), joining the US-led
Build Back Better World Partnership (B3W), or engaging with both blocs as they have potential
benefits in terms of infrastructure development, transportation improvements, and cultural
exchanges. There is light shed on CPEC in the article regarding the several benefits it brings for
Pakistan. For example, it has boosted Pakistan's overall economic growth, reduced poverty and
unemployment through improved regional connectivity and local infrastructure and addressed
the energy crisis with power generation projects. Likewise, the full operation of Gwadar Port is
expected to attract more foreign investment.

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However, the progress of CPEC has faced challenges due to international politics, the COVID-19
pandemic, and delays in loan processing. Despite these challenges, CPEC is seen a key part of
China's Belt and Road Initiative (BRI) that aims to connect many countries across Asia, Africa,
and Europe through trade and business routes. This makes Pakistan a significant player in the
region. Conversely, Pakistan's focus on CPEC has also brought economic challenges. Financial
institutions like the IMF have imposed strict conditions on Pakistan, leading to issues like rising
inflation, currency devaluation, and the elimination of tax exemptions. This has harmed the
purchasing power of the people in Pakistan.

Cooperation could bring economic benefits if Pakistan joins B3W without giving up on or
slowing down the China-Pakistan Economic Corridor (CPEC) projects. But it's unlikely to be
able to benefit from both sides in the ongoing US-China economic rivalry without conditions.
Hence, Pakistan should follow a balanced foreign policy. Both BRI and B3W should be
considered opportunities as BRI primarily focuses on infrastructure and transportation, while
B3W emphasizes climate, health, technology, and gender equity.

In conclusion, Pakistan requires a holistic development approach that includes improvement in

governance, political stability, and economic policies, etc. While it is moving towards
geoeconomics, it should also consider geopolitics as the two mutually support each other. To
boost its economic strength, Pakistan should consider participation in various international
economic initiatives, thoroughly choose its strategies, and reform its domestic policies to ensure
persistent economic advancement.

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