Whether who won and who lost in the recent air war between
India & Pakistan is a geo strategy subject. What matters to me is how Pak boosted
her clout in the area of geoeconomics by carefully navigating from war to the
business world. Here are snippets from my take:
1. USA policy changes are explicit as regards to
their near-negative approach towards Pakistan when U.S. President Donald Trump announced
on May 13, 2025, that representatives from Pakistan are coming to the United
States to talk over trade & tariff. Pakistan faces a potential 29% tariff
on its exports to the United States due to a USD 3 billion trade surplus with USA.
This may be mollified to the lower figure. Moreover, it is also announced that South Asia’s crypto
hub would be located in Pakistan.
2. Russia signs an agreement valued at USD 2.8
Billion to re-build the Soviet Era steel mill located close to Karachi Port
that was discarded in the 1990s due to tensed political situation prevailing at
that time.
3. Afghanistan formally joins China Pakistan
Economic Corridor (CPEC) as an extended party and vouches for banning all anti-Pakistan
terrorist activities that emanate from its soil. She further made a special mention of Tehreek-i-Taliban
Pakistan (TTP) which remains as a thorn in the flesh of Pakistan for
quite sometimes.
4. Foreign Direct Investment (FDI) is being sourced
from Azerbaijan at USD 4.6 Billion, Qatar at USD 3 Billion and UAE at USD 1 Billion.
5. In addition World Bank which has a significant lending and investment portfolio in Pakistan, with a total commitment of USD 17 billion across 106 projects would extend it to USD 40 Billion. China, in the meantime defers repayment of existing loans estimated to be USD 3.7 Billion.
6. Overall trade is being boosted. Iran is eying an
amount close to USD 10 Billion, Turkey on the other hand harking for above USD
5 Billion. Turkey in
turn seeks joint ventures for producing drones, electric vehicles and field
armaments.
7. Buying Pakistan military hardware opens up with a bang as Azerbaijan booked USD 4.6 Billion worth of JF-17 jets manufactured by Pakistan under licence from Chengdu Aircraft Industry Group (CAIG) of China.
In sum, the last air war gave a big publicity boast like of which was not seen after the end of World War II when the globe was awakened to the plethora of investments flowing into Japan & Europe. The crux of the matter is Indo-Pak air has morphed into as a moment of denouement where Pakistan emerging victorious not only in terms of military might but squarely in the field of geoeconomics!
Cheers!
Muthu Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business Strategist
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