Pakistan: Navigating an Uncertain Global Order

The world is undergoing a profound shift toward protectionism and unpredictability. Global institutions are weakening, long-standing norms are eroding, and power dynamics are replacing cooperative frameworks. In this volatile environment, Pakistan must stay alert and prepare for the challenges ahead.

This transformation is already in motion. US President Donald Trump’s imposition of tariffs signaled a move away from multilateralism. The shift toward unilateralism and economic nationalism has been ushered in. The rules-based global order, which once promoted free trade and transparency, is on the decline.

For decades, the US championed institutions like the WTO, enabling developing countries, including Pakistan, to engage in global trade under shared rules. Now, the rise of "reciprocal tariffs" and deal-making based on narrow self-interest marks a rejection of that system. In such an environment, even close allies are vulnerable.

This shift is especially alarming for countries like Pakistan. Larger powers may use economic tools or coercion to advance their agendas, sidelining smaller economies. A coordinated international backlash to protectionist policies is likely. While Pakistan may avoid retaliation, others might not, raising the specter of a global trade war.

Trade wars have historically led to severe economic disruptions. Pakistan, with low foreign exchange reserves and heavy reliance on institutions like the IMF, lacks the resilience to absorb such shocks. Unlike wealthier nations, it cannot offer major stimulus measures or safety nets.

Thus, Pakistani policymakers must proactively engage with global powers, diversify trade relationships, and strengthen internal governance. Strategic partnerships with like-minded nations and regional initiatives like CPEC are essential, but overreliance on any one partner is risky. A multi-vector foreign policy is key.

Domestically, political stability and unity are crucial. A fragmented leadership weakens Pakistan’s ability to respond to global shifts. The world order we knew is unlikely to return soon. Only countries that are agile, united, and forward-looking will succeed.

Pakistan must not be passive. With vigilance, decisive leadership, and strategic focus, it can navigate this turbulent global landscape and secure a stable future.