Lessons from Global Successes and a Roadmap for Pakistan’s Future

Part 5/5 of Pakistan’s Potential Role in the New Global Tech and Manufacturing Shift

Mar 16, 2025

Despite the challenges, Pakistan is not devoid of hope or options. To leverage its strengths and mitigate its risks in this generational shift, a multi-pronged strategy is needed:

Stabilize the Ship:

Political stability remains a cornerstone for progress. The 2024 general elections were marred by allegations of rigging and political unrest, leading to a coalition government under Prime Minister Shehbaz Sharif. Political stability and policy continuity are paramount. Pakistan must break the cycle of constant upheaval. This could involve reforms to strengthen democratic institutions, foster consensus across party lines on key economic policies, and empower technocratic governance for economic management. A stable government that lasts its full term and pursues consistent pro-investment policies will immediately boost confidence. All stakeholders (civilian leadership, military, judiciary) need to commit to a period of economic focus free from political melodrama.1

Continues below…

In this five-part series, we delve deep into Pakistan’s tech capabilities, strategic positioning, and how it could redefine itself amidst global change. We'll explore international examples, internal challenges, and strategic recommendations, offering insights and perspectives from around the world.

Series Overview:

Part 1: Shifting Sands—Understanding the New Global Economic Landscape
Part 2: Pakistan’s IT Sector—A Rising Digital Hub?
Part 3: How China’s Industrial Shift Could Transform Pakistan
Part 4: Stability at Stake—Addressing Pakistan’s Internal Challenges
Part 5: Lessons from Global Successes and a Roadmap for Pakistan’s Future

Create an Investor-Friendly Ecosystem

Pakistan should dramatically improve its business climate to attract foreign and local investment. This means cutting red tape, ensuring contracts and property rights are upheld (rule of law), and tackling corruption. The military's expanding role in Pakistan's economy has also raised concerns about the equitable distribution of resources and potential conflicts of interest. Initiatives like the Special Investment Facilitation Council and “One-Stop Shop” for investors need to be empowered to actually solve problems on the ground.

Vietnam’s government, for instance, proactively worked with companies to smooth out bureaucratic hurdles. Pakistan should do the same – assign dedicated facilitation teams for major investors, offer reliable utilities in industrial zones, and streamline customs and tax procedures. Incentives are already in place (tax breaks, etc.), but implementation and ease of operations will set Pakistan apart. If a company finds it can start a factory in Karachi or Lahore just as easily as in Dhaka or Ho Chi Minh City, it will be more inclined to choose Pakistan given our large market and workforce.2

Invest in People – Pakistan’s Ultimate Resource

The long-term game is won by countries that invest in human capital. Pakistan’s youth are smart and hardworking, but too many lack quality education or marketable skills. A national effort is needed to improve education at all levels – from basic literacy to advanced technical training. This includes public-private partnerships to expand vocational training centers, IT bootcamps, and science/engineering programs. Initiatives like the “Skill Pakistan” program could train large numbers in coding, digital marketing, electronics assembly, and English communication, feeding both the IT sector and higher-end manufacturing. A skilled workforce will not only attract investors (who need technicians, not just laborers) but also ensure that Pakistanis can climb the value chain and launch homegrown ventures.3

Leverage Strategic Partnerships (but Balance Them)

Pakistan should continue engaging China for industrial investment – it’s a comparative advantage to have a neighbor willing to deploy capital. But it must also diversify its economic partners to avoid over-reliance.

Middle Eastern investors (e.g. in tech startups, textiles), Western companies looking for “China-plus-one” manufacturing options, and multinational tech firms seeking talent. Joining regional trade agreements or blocs could help; for example, exploring links to Southeast Asian markets or reaping benefits under GSP (Generalized System of Preferences) for exports.

Diaspora diplomacy is another underused tool – Pakistan’s expatriates in Silicon Valley, the Middle East, and Europe can be ambassadors for investment if given incentives to connect back home. By widening the circle of partnerships, Pakistan reduces vulnerability and integrates more broadly into the multipolar economy.

Security and Inclusive Growth Measures

Economic plans will only succeed if Pakistan is safe and stable. This requires a dual approach: continue vigorous counterterrorism and intelligence efforts to neutralize militant threats, and simultaneously address the root causes of extremism by improving governance in border regions, creating jobs, and integrating marginalized communities.

The presence of advanced weapons with militants means security forces need better equipment and training – Pakistan should cooperate with allies for counter-insurgency support. On the socioeconomic front, policies must ensure that the benefits of growth (when they come) are widely shared. Disaffected populations are more prone to unrest. Investing in neglected provinces (Balochistan, KP, ~~Urban~~ Sindh) with infrastructure and industry can help bring everyone into the fold of progress. An inclusive growth model, where the average citizen sees tangible improvements, will undercut the appeal of militant narratives and solidify national stability.4

Conclusion: A Vision for Pakistan’s Role

Pakistan stands at a critical crossroads. The generational shift underway globally—accelerated by geopolitical realignments like the return of the Trump administration in the U.S., tensions between Western powers and China, and the rise of multipolar economic alliances—offers Pakistan unique opportunities. The U.S.'s renewed focus on reshoring manufacturing and counterbalancing China's influence, for instance, opens a window for Pakistan to position itself as a viable manufacturing and technology hub, bridging the East and the West.

To leverage this moment, Pakistan must strike a careful balance in its foreign policy—maintaining its robust strategic partnership with China, particularly through ongoing projects like CPEC, while simultaneously engaging proactively with Western and Middle Eastern partners to diversify economic ties and minimize dependency risks. Recent diplomatic breakthroughs, including Pakistan’s role in capturing high-profile terrorists and handing them over to the U.S., underscore how security cooperation can also strengthen bilateral trust and economic collaboration.

Domestically, reforms in governance, transparency, and political stability remain paramount. Strengthening democratic institutions, improving investor confidence, and developing human capital will create a stable internal environment—vital for attracting investment and partnerships. The global realignment, characterized by competition but also interdependence, provides Pakistan a timely opportunity to redefine itself not merely as a recipient of investment but as a pivotal, strategic player in the global economy.

Imagine a Pakistan where software engineers power a thriving IT export sector, factories across Punjab and KP become essential components of global supply chains, and strategic ports like Gwadar serve as bustling gateways linking diverse markets. This vision is achievable, provided leadership seizes the moment, commits to lasting reforms, and navigates global geopolitics astutely.

The world is watching closely. Pakistan's actions today will determine whether it emerges as a success story—capitalizing on geopolitical shifts—or a cautionary tale of missed opportunities. Let’s hope the nation chooses the path of progress, diplomacy, and innovation, securing its rightful place in the emerging multipolar global order.