The geopolitical rivalry between the United States and China is intensifying. For Pakistan, this intensification is reducing the scope for neutrality. Consequence 2: Both powers are likely to increasingly seek loyalty and exclusivity. Decision Time: As the competition becomes more acute, Pakistan will face growing pressure to align with one of the two major powers. To avoid being caught between conflicting interests, Pakistan would have to make a definitive choice.

The decision matrix comprises four dimensions: economic interdependence, security implications, domestic politics, and public opinion. Pakistan must carefully weigh the economic benefits against potential risks. Investors and businesses prefer predictability, and a lack of clear direction leads to reduced investment and slower economic growth. Economic history clearly demonstrates that countries attempting to balance economic relations between rival blocs without committing to one side have encountered trade-offs and penalties from........

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