Editorial
The recent trade agreement between the United States and India, which cuts US tariffs on Indian goods to 18 percent from much higher levels, is more than a bilateral deal. It is a reminder of how economic diplomacy is shaping global power relationships. While Pakistan often frames its foreign policy primarily through a security lens, this moment underscores why economic partnerships are just as critical for the country’s long-term stability and growth.
From a security perspective, Pakistan’s engagement with major powers, particularly the United States, has traditionally focused on strategic cooperation, regional stability, and defence-related concerns. These ties remain important. However, security alone does not generate jobs, boost exports, or stabilise foreign exchange reserves. Economic opportunity does. India’s agreement with Washington shows how trade, investment, and market access can be leveraged alongside strategic interests to strengthen a country’s global standing.
Pakistan, too, has secured a relatively lower reciprocal tariff rate of 19 percent on its exports to the US, compared with earlier proposals. While this is a positive outcome, it also highlights the limits of a relationship that remains narrow in scope. Without deeper trade engagement, investment flows, and sector-specific cooperation, Pakistan risks being seen as a security partner rather than an economic one.
India’s willingness to make economic concessions—whether by lowering trade barriers or reshaping its energy imports—has translated into tangible benefits for its exporters and financial markets. Pakistani markets, by contrast, continue to struggle with limited foreign investment and weak export growth. This gap is not accidental; it reflects differences in economic strategy and diplomatic priorities.
For Pakistan, the lesson is clear. Strategic partnerships must evolve into comprehensive economic relationships. Trade, investment, technology transfer, and energy cooperation should be treated as core national interests, not secondary considerations. In today’s interconnected world, sustainable security is built on economic strength. Without meaningful economic partnerships, even the strongest strategic alliances will fall short of delivering prosperity.
