Pakistan’s economy has had quite a grim first quarter this year. The country has witnessed a tremendous increase in political turmoil 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 comprehend Pakistan’s current economic trade between the eastern and the western blocks to grasp a better understanding of Pakistan’s Geo-Economic standing.
In the March 2021 Islamabad Security Dialogue, Pakistan announced a paradigm shift from Geo-Politics to Geo-Economics, where the foundation of foreign relations would be derived from the economic fortune emanated from the strategic alliances rather than political interests. The recent political dynamics of Pakistan have put the country into an enigma, going against the goal of foreign and domestic policies based on geoeconomics, expunging our relationship with six of our top ten trade partners.
The historical love-hate relationship between the United States of America and Pakistan, whether we like it or not, has proved fruitful to the Pakistani economy, with the United States being our principal trade partner. Out of the top ten export partners of Pakistan, six are western nations, all are part of NATO, while four are Pakistan’s eastern trading partners, namely – China, Bangladesh, Afghanistan, and United Arab Emirates (UAE).