Pakistan cites reasons for failure of geo-economic policy — Dawn
Pakistan’s geo-economic policy, set out in the first National Security Policy of 2022, failed to achieve its goals because of political instability, protectionism and strained relations with neighbouring countries. This assessment was made by a strategic analyst in international security in a column for Dawn.
The document, presented by Prime Minister Imran Khan in January 2022, was intended to become the basis for a citizen-oriented geo-economic policy and economic security. However, after the removal of the PTI party government, the policy lost institutional support, according to the author. Subsequent coalition administrations focused on political survival and urgent fiscal problems rather than long-term economic integration.
Tariffs and exports
The author believes that the geo-economic model requires liberalised trade, open borders and competitive exports. At the same time, Pakistan maintains a protectionist regime, he said: the average tariff on intermediate goods is 8%, which is twice the level of India and Bangladesh. According to the column, this limits the participation of Pakistani industry in global supply chains.
At the time the National Security Policy was adopted, Pakistan’s total exports reached a record $39.52 billion. In subsequent years, political instability and rising energy tariffs led to a decline in exports, the author notes.
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Tensions at the borders
The analyst named the conflict-ridden regional environment as another constraint. The 2021 agreement between India and Pakistan on strict observance of the ceasefire along the Line of Control was initially seen as an opportunity for gradual normalisation. The author writes that the lack of structured dialogue with New Delhi, India’s decision regarding the 1960 Indus Waters Treaty and four days of armed clashes in May 2025 eliminated these prospects.
Expectations that the Taliban regime in Afghanistan would help secure transit corridors to Central Asia also did not materialise, the author writes. He links this to clashes on the Pakistan-Afghanistan border, trade restrictions and a security crisis. In his assessment, trade with Afghanistan, Afghan transit through Pakistan and exports to third countries through Pakistani territory have declined. Economic ties with Iran, despite stable diplomatic relations, are also constrained by US sanctions, the analyst notes.
Among the proposed steps, the author named cross-party consensus on economic diplomacy, reducing tariff barriers, diversifying exports beyond the textile sector, and developing border economic zones and transit terminals. He also believes that Islamabad should use its partnership with Beijing for the next stage of the China-Pakistan Economic Corridor.
