IN the past decade, the spheres of economics and national security have collided, reshaping the contours of government functions and priorities. The traditional definition of security, once confined to matters of warfare, has expanded to encompass previously overlooked economic challenges. As the world witnesses a convergence of non-traditional threats, the concept of security has undergone a transformative shift, navigating a landscape where economic considerations are as central to security discussions as traditional military matters.
The evolving dynamics, marked by economic interdependence and shared challenges, necessitate a comprehensive approach that integrates economic security into the core of national strategy. Pakistan presented its first classified National Security Policy (NSP), heralding it as a cornerstone for the country’s economic security. However, while the NSP provides a much-needed framework, critical shortcomings exist, particularly in providing a roadmap for ensuring economic resilience, including addressing Pakistan’s external debt liabilities, which have surged to $128 billion, according to the State Bank of Pakistan (SBP).
Pakistan’s economic landscape is significantly shaped by the burden of external debt from the International Monetary Fund (IMF). The stringent conditions attached to IMF programs, including structural reforms and austerity measures, pose challenges to developmental and social welfare initiatives. Even the business community, while extending their cautious welcome to the Staff-Level Agreement of IMF for the next tranche of $700 million, raised concerns. They believe that the road to economic resilience should be paved by generating more resources to boost trade and industry instead of asking the IMF for another bailout in April 2024.
This cyclical nature of the debt crisis perpetuates a vicious cycle and constantly hampers sustainable growth in different sectors. Strangled with servicing the mounting debt, the government finds itself in a perpetual struggle to free itself from the constraints that impede effective governance. As a result, the erosion of national sovereignty becomes evident as decision-making is being done under the pressure of fiscal imperatives instead of pursuing a comprehensive long-term vision. This web of unpaid bills and financial arrears further restricts the government’s fiscal space. The diversion of financial resources to address economic problems, especially mounting debt, leaves limited space for strategic investment in education, healthcare and infrastructure, which are listed as the basic imperatives of human security in the National Security Policy (NSP) of Pakistan.
As Pakistan confronts this economic junction, charting a course forward necessitates a multi-faceted approach. To bolster economic security, Pakistan needs a comprehensive strategy to meet the central objective of NSP. This involves not only addressing immediate economic challenges but also planning for long-term resilience. A formal policy document outlining this strategy will serve as a guiding beacon for government agencies and the public, signalling a commitment to economic stability as a national security imperative. Pakistan should attract individuals with expertise in supply chains, global finance, and critical sectors to government roles.
Japan’s proactive economic security measures offer a valuable lesson for Pakistan, particularly amidst its maritime dispute with China. Japan efficiently diversified its high-tech sector’s supply chain, minimizing dependence on Chinese sources and showcasing a commitment to balancing security and economic growth. Pakistan can learn from these strategies to enhance its economic resilience. Diversifying economic engagements not only mitigates external influence risks but also promotes innovation, technological exchange and a stronger economic landscape. The key takeaway is the risk of overreliance on a single economic source, emphasizing the importance of safeguarding autonomy.
The NSP rightly identifies Pakistan’s geostrategic location as a key element for bolstering economic security. Leveraging the ambitious China-Pakistan Economic Corridor (CPEC) provides a transformative opportunity. The strategic infrastructure project, connecting Gwadar Port to China’s north-western region, positions Pakistan as a pivotal hub for regional trade. This will also allow the country to diversify its economic partnerships, reducing dependence and fortifying its overall economic security in the face of global uncertainties.
Similarly, Pakistan must adopt a transparent and strategic approach in its engagements with international financial institutions, prominently exemplified by the ongoing negotiations with the IMF. Transparency in economic agreements not only fosters trust but also ensures that the terms and conditions of financial assistance are communicated to the public. By promoting a culture of openness and strategic foresight in economic dealings with international institutions, Pakistan can pave the way for informed decision-making that resonates with the principles of national sovereignty.
In conclusion, Pakistan stands at a crossroads where economic security emerges as the linchpin for exercising national sovereignty. Learning from global examples and formulating a robust strategy are imperative for navigating the challenges ahead. By embracing institutional reforms, fostering expertise, and fostering collaboration, Pakistan can position itself as a resilient and secure nation in an interconnected world. The time for comprehensive economic security measures is now, as they form the cornerstone of Pakistan’s journey towards enduring national security.
—The writer is a researcher at Centre for Aerospace and Security Studies, Lahore, Pakistan.
Email: [email protected]
views expressed are writer’s own.
