In an increasingly interconnected and complex world, four forces have emerged as the central determinants of economic and strategic outcomes: geopolitics, energy transition, artificial intelligence (AI), and climate change.
Pakistan’s improved economic performance in the current fiscal year can partly be attributed to its geopolitical positioning following the Indo-Pak conflict in May last year. Islamabad’s posture before and after the conflict — rooted in the principles of sovereignty and a careful rebalancing of ties between the United States and China — helped stabilise a fragile economic recovery that had begun the previous year.
Geopolitics remains the foundational economic force of our era because it governs how nations interact, trade, and compete. It shapes capital flows, alliances, and access to markets and critical technologies.
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