The real game-changer

As the US announces a diplomatic boycott of the 2022 Winter Olympics in China, Prime Minister Pakistan Imran khan is expected to visit China this month to proceed further on all-weather bilateral ties.

PM Imran Khan will also attend the opening ceremony of the Winter Olympics 2022. Last year, Pakistan declined to participate in the US-led democracy meeting held virtually on Dec 9-10, hosted by US President Joe Biden. Though Pakistan claims to have a neutral and open relationship with the two economic powers, its preference and inclination are obvious, but can Pakistan bear its consequences?

Pakistan is the only nuclear power in the Islamic world. Its geopolitical location also demands the same. Pakistan’s east and southeast border spanning approximately 3,323 kilometers with India is a burning nuclear flashpoint. It is not only critical for the country but alarming for the world as well. A Hindutva-focused and intolerant government across the border makes the situation catastrophic. India is in friction with almost all its neighbours, explaining its ambition to dominate the region and alter its balance.

India’s irrational approach towards the region is not the only challenge Pakistan faces. The country’s western border with Afghanistan builds pressure, seemingly negligible but extremely critical. After the US’s abrupt evacuation from Afghanistan, the people of Afghanistan were left with no help, paving the way for a human disaster beyond comprehension. Pakistan was left with no option but to help the Afghans. Again with an economy like Pakistan, it was an uphill task, but we had no option to shy away from it. Moreover, as the stress between Iran and Israel mounts, Pakistan’s western border is becoming stressful, making the situation trickier.

With such a tangled geopolitical situation, Pakistan’s economy is in a strong stranglehold of international financial institutions such as the IMF and the World Bank. As Pakistan’s economy is exposed to frequent inflation waves, the middle class struggles to survive and make ends meet. The tax system rests on indirect taxes, making the situation grimmer. Pakistan remains on the FATF grey list till April 22 this year – even after addressing 30 out of 34 points from two concurrent action plans. Pressing Pakistan’s economy is the only amiable way to alter, manipulate, and influence the country’s plan and commitment to prosper and progress. It is also critical to limit the country’s significant geopolitical role.

The world is rapidly evolving, with new geopolitical groups emerging and gaining global attention. Trade routes being the hot commodity in these times, CPEC holds the potential to change the fate of the whole region. It can unveil a new horizon of prosperity, stability, and growth. At the same time, it is important to consider whether economically shackled can Pakistan deliver what is expected to maximise and actualise its geopolitical location.

The situation is grim, but not impossible. Pakistan and countries with common goals can alter it. Pakistan seeks help but not in the shape of a loan; it needs a sustainable solution with investment and export opportunities. We have a lot to offer in the region. From skilled labour to the attractive cost of production, the economy has potential beyond comprehension. By making a mutually rewarding alliance with counties such as China, Pakistan can attract investment and business essential for its economic stability.

Pakistan is ideal for Chinese industries seeking a destination beyond borders with an attractive cost of production, skilled, young, and energetic labour. On the other hand, Pakistan needs to make the related process and procedures simple, easy, and transparent. More emphasis should be made on developing infrastructure.

Pakistan is a frontline state, standing firm to prevent the region’s interest. At the same time, is it fair to leave Pakistan at the mercy of international financial institutions and countries with conflicting interests? Economic stability is essential for a country with such significance. It can be achieved by adopting a more diverse and multidimensional approach to the Pak-China friendship. Pakistan’s economy has potential; it needs opportunities, which is not much to ask from time-tested friends.

The writer is a freelance contributor.