Pakistan’s economic interests have now become vital national interests, as they are means to strengthening strategic alliances and partnerships. Economy expands the horizon of a state’s foreign policy choices, drives its military posture, economic development, technological advancement, international standing and most importantly, makes it a significant stakeholder in international politics. However, the current scenario, in which, Pakistan is grappling with numerous economic and security challenges, is deplorable for Pakistan’s foreign policy. For any state to become an agency in the international structure, it requires a strong economic back and military muscles to further its national interests and strengthen its image among world members.

Pakistan is currently undergoing a series of economic challenges such as balance and trade deficit, depleting foreign reserves, dependency on foreign aids and grants, as a result, its economy is falling apart; thus, reducing space for strategic alliances and partnerships. Strategic partners elsewhere in the world, look for a stable and viable partner to invest and a secure reliable partner to protect their vital national interests around the globe. The importance of strategic alliances and partnerships is best-known to Pakistan as they are gateway to a number of economic agreements, infrastructure development, resource management, access to new markets, enhanced diplomatic clout and its over-all prosperity.

Economic stability is a primary objective of many strategic alliances. Stable economies are better positioned for long-term strategic planning and development. Economic partnerships provide access to financial support, diversified markets, and investment opportunities all of which contribute to over-all stability. Pakistan has faced significant economic challenges, including high levels of debt, inflation, and unemployment. Through strategic alliances and partnerships, Pakistan can attract foreign investment, access new markets, and boost its trade, which are essential for economic development. For instance, the China-Pakistan Economic Corridor (CPEC), part of China’s Belt and Road Initiative (BRI) has been a crucial strategic partnership.

Strategic alliances allow Pakistan to manage its resources more effectively and gain access to technological advancements. Partnerships with technologically advanced countries like China, U.S., Japan, etc. enable Pakistan to improve its industries, agriculture, and overall productivity. Moreover, collaborations with countries like China and Turkey in defense technology have not only strengthened Pakistan’s military capabilities but also contributed to its technological base. Similarly, agricultural partnerships with countries like the United States and Japan have introduced advanced farming techniques and technologies that enhance agricultural productivity.

Accessing new markets is a critical aspect of Pakistan’s economic strategy. Strategic alliances with countries and regional blocs open up opportunities for Pakistani goods and services, helping to diversify its export base. For example, the Preferential Trade Agreement (PTA) with Indonesia and the Free Trade Agreement (FTA) with Malaysia have provided Pakistani exporters with preferential access to these markets, boosting trade and economic ties. Additionally, Pakistan’s efforts to strengthen ties with Gulf Cooperation Council (GCC) countries are driven by the desire to increase exports and attract investments from the oil-rich region in order to overcome trade imbalances and balance of payment problems.

The enhancement of bargaining power is another significant advantage of strategic economic alliances. By forming partnerships, countries and organizations can amplify their collective bargaining power on the global stage. This collective strength is essential for negotiating better trade deals, influencing global economic policies, and protecting shared interests. One of the examples is China, being a strategic partner to Pakistan, stands firm with Pakistan against their common rival, India on multiple issues (such as Kashmir) and platforms.

Moreover, geopolitical influence is intrinsically linked to economic interests. Strong economic ties often translate into greater geopolitical influence and cooperation. Countries with robust economic alliances can exert more significant influence on international policies, standards, and practices. For example, the economic integration of India with BRICS and the U.S. has enhanced its geopolitical clout, enabling it to play a crucial role in global diplomacy and security. Similarly, economic partnerships between major powers like the United States and China have significant geopolitical implications, influencing global trade dynamics and political relations. By leveraging economic interests, countries can bolster their strategic positions on the world stage.

Peace and stability are often byproducts of strong economic interdependence. When countries are economically connected and benefit from each other’s prosperity, they are less likely to engage in conflicts and more likely to collaborate on maintaining stability. Economic alliances create a framework for dialogue, cooperation, and conflict resolution. As for Pakistan and India, this factor is unlikely to exist as they both have no economic linkages and interdependence while as far as China and India are concerned, they both have conflicts as well as cooperation in their relationship.

Pakistan is well aware of the importance and significance of strategic alliances and the benefits that it takes along. Strategic partnerships are ways and means to achieve such goals that a enables partners to further benefit in areas a state would not, because of its personal lack of resources. Pakistan at present is in meagre economic condition and hence needs diversified economic partners and strengthen its strategic alliances to leveraging its economic and political interests in international political arena.