Pakistan can transform from being a route to becoming a reason for trade and development
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resident Donald Trump’s administration, touting its role in brokering Pak-India ceasefire, has signaled a renewed appetite for trade diplomacy in South Asia. For Pakistan, this could be more than a pause in hostilities. It could be a pivot in history.
This is not just a diplomatic detour. It is a rare convergence of policy momentum, geopolitical reprieve and economic necessity; a window through which Pakistan can reimagine its role on the world stage. If seized wisely, this moment could move Pakistan from the margins of global trade to its connective core.
Policy scholars speak of three forces needed to spark transformation: a visible problem, political will and bold, actionable ideas. Today, Pakistan stands precisely at that intersection. The problem is clear: an overreliance on a narrow band of exports, rising economic volatility and missed opportunities in global value chains. The will is emerging: evident in the de-escalation of tensions and Washington’s revived economic curiosity. The ideas are already on the table: digitisation, industrial modernisation and regional trade corridors that could redefine commerce in Asia.
Supply chains are realigning. “China-plus-one” strategies, post-Covid diversification, and disruptions in Red Sea shipping have fractured the old maps of global trade. Pakistan’s geography - nestled between South Asia, the Gulf and Central Asia - now reads like an answer to a question the world is urgently asking: where is the next reliable trade hub?
With the deep-sea port of Gwadar, underutilised CPEC rail corridors and untapped links into regional energy and technology markets, Pakistan can move from being a route to becoming a reason. But this shift demands infrastructure upgrades, regulatory reform and diplomatic resolve.
The trade data offers both encouragement and a call to action. In 2024, US-Pakistan bilateral trade reached $7.3 billion, with Pakistan enjoying a rare $3 billion surplus. The United States is Pakistan’s single largest export destination, absorbing nearly 20 percent of all Pakistani goods. Yet Pakistan’s share in total US imports remains under 0.5 percent, a stark reminder of how much ground remains to be gained.
Pakistan’s economic engine continues to lean heavily on textiles, which account for more than 60 percent of exports to the US. But this engine is running on outdated mechanics. As global retailers shift toward ESG-compliant sourcing, Pakistan must embrace sustainable practices, not as a moral add-on, but as a market imperative. The US imported over $90 billion in apparel in 2024. Even a modest increase in Pakistan’s share could mean thousands of jobs and a renewed manufacturing base, if labour protections and environmental benchmarks are visibly met.
Beyond garments, there are quiet revolutions already under way. Pakistan’s IT and freelance services generated $3 billion in exports last year. With a robust digital policy, enhanced data security laws and access to US digital markets, valued at over $2 trillion, this figure could double by 2028. A bilateral digital services framework with the US could unlock high-value employment and attract global venture capital, especially in fin-tech, e-learning and cloud services.
The pharmaceutical and surgical goods sector (particularly in Sialkot and Lahore) is another under-leveraged asset. Pakistan produces FDA-grade surgical instruments but lacks the scale and visibility to compete with global suppliers. The US healthcare market, projected to top $6.5 trillion by 2028, offers enormous upside for even incremental Pakistani entry, if regulatory harmonisation and export readiness are fast-tracked.
Agriculture, often reduced to food security in policy debates, must now be viewed through a trade lens. Pakistan’s agri-tech potential can enable export of climate-resilient produce to Gulf states and beyond. The integration of Pakistani farms into global agri-value chains could increase incomes, stabilise rural economies and reduce the country’s trade imbalance.
For Pakistan, this is not merely about seizing new markets. It is about recasting national strength. Trade, long subordinated to strategic and security narratives, must now emerge as the core pillar of Pakistan’s global identity. In an era when economies speak louder than armaments, prosperity is the new power.
The ceasefire may not have made history, but what follows can. If Pakistan moves decisively, aligns its industrial vision with trade diplomacy and courts strategic markets with intent, it can rewrite its economic destiny. This is a moment to pivot, not just from conflict, but towards coherence.
A nation often seen as geopolitically fragile can become geo-economically formidable. The world has cracked open a window. The task now is not just to walk through it, but to build a future on the other side.
The writer is a political economist, professor at Brevard College, UN Civil Society Representative and former political appointee in Missouri. She is a contributing columnist on economic development, specialising in representation and stakeholder engagement in trade and policy across the Global South