The shifting global order has created new challenges for developing countries, and Pakistan is no exception. For us, it is becoming an increasingly difficult balancing act between financial dependence and neighbourly responsibilities, between safeguarding defence and ensuring market access, and now between restraint and response, as we find ourselves sandwiched between aggression from both our eastern and western fronts. With the latest Gulf war, in which we are witnessing all gloves coming off, it has become even clearer that the so-called ‘rules-based’ international order is fading. Stronger countries are openly using both economic integration and sheer brute force as instruments of power, and the subtleties of foreign policy from earlier decades now seem a distant memory. In this maze, we also appear to have lost our own yardstick that separates prudence from fear, diplomacy from responsibility, and principles from price.

Many would say that while all this sounds compelling in discussion, the real question remains: what options do we actually have, and how should Pakistan conduct itself in these uniquely difficult circumstances? The answers are indeed difficult to find and even harder to implement, but some recommendations are worth considering.

To begin with, it would be wise to abandon the pretence of a fully functional international system, as well as the romantic notions of Muslim brotherhood or guardianship of a common Islamic ideology. Instead, Pakistan must embrace a form of value-based realism that operates in a pragmatic and transactional manner. This means being principled in upholding values such as sovereignty, human rights, and ESG standards, while also engaging with the world as it actually exists.

At home, Pakistan must focus on building economic and industrial strength — the two are closely intertwined. This requires tax reforms and rationalisation, renegotiation of trade agreements with an eye on future global trends and Pakistan’s own comparative strengths and weaknesses, and an understanding of an increasingly fluid trade environment amid a weakening WTO framework. Energy sector reforms must be fast-tracked. The country must also develop a clear roadmap for keeping pace with advances in artificial intelligence and ensuring its responsible use. Mining and exploration of critical minerals must be developed transparently, exports must be prioritised on a war footing, and defence spending and capabilities must be strengthened to meet evolving security challenges.

Pursuing such a strategy requires an innovative and proactive approach to foreign policy through revised coalitions and partnerships formed on new terms with both existing and emerging partners. These relationships must be issue-based and guided by shared interests and values. For example, Pakistan should revisit its financial arrangements with the Middle East, which have too often left the country short-changed for the benefit of a few individuals. Similarly, recent initiatives with Bangladesh and Nepal offer a promising opportunity to chart a fresh course of cooperation, trade, and regional friendship.

Pakistan’s balanced stance in the Russia–Ukraine conflict and its continued commitment to multilateral institutions such as the OIC and the United Nations also represent positive steps. The country should further position itself as a champion of plurilateral trade arrangements and help establish an ethical “buyers’ club” among like-minded democracies. Such platforms could coordinate the procurement of critical global resources while also shaping widely accepted norms around emerging technologies such as artificial intelligence.

What must be recognised is that developing countries need to work collectively to forge a credible “third path”. While larger economic powers may afford to act unilaterally, developing economies can only amplify their influence through coordinated action. This approach must emphasise honesty, consistency, and the reduction of vulnerability to external pressure by building resilient domestic economies and diversifying international partnerships.

Through such cooperation, developing countries could safeguard their industries and prevent their manufacturing bases from being overwhelmed or dismantled by dominant global producers. It is therefore time for Pakistan — with its abundant resources, talented and hardworking workforce, large population, and strong societal values — to stop seeking economic revival through handouts alone. Instead, it should stand on its own feet by forging complementary partnerships and emerging as a leader capable of guiding such a path forward.

Dr Kamal MonnooThe writer is an entrepreneur and economic analyst. Email: kamal.monnoo@gmail.com

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