Pakistan’s Foreign Policy

Opportunities & Challenges

(6 January 2018)
 FOREIGN POLICY OBJECTIVES
Promotion of Pakistan as a dynamic, progressive,
moderate, and democratic Islamic country
Pursing mutually beneficial relations with other countries,
especially major powers and immediate neighbours
Safeguarding national security and geo-strategic vital
interests, including sovereignty & territorial Integrity,
resolution of the Jammu & Kashmir dispute
Strengthen Pakistan’s economic potential investment
through enhanced trade and investment opportunities
 FOREIGN POLICY OBJECTIVES

Safeguarding interests of Pakistani Diaspora abroad

Ensuring optimal utilization of national resources for

regional and international cooperation
Promoting Scientific & Technological Cooperation

Human Resource Development

 HOW TO ACHIEVE THESE OBJECTIVES
 Cordial relations with all countries

 Pro-active/result oriented diplomatic outreach

 Balancing national security and imperatives of regional

peace and prosperity
 Positive engagement with regional and international
organizations
 Regular monitoring of changing geopolitical environment
and recommendations to leadership for necessary
adjustments
 GLOBAL/REGIONAL ENVIRONMENT
United States
America first – retraction from global engagement (TPP, Climate
Change)
Alignment with EAP (Maritime Security); South China Sea dispute
Indo-US strategic partnership (commercial/strategic)
Uncertain decision-making (Personality vs. Institution)
NATO – from assertion of authority as a unified block to fissures
(burden sharing)
Increase in extremist sentiment; White supremacy/minorities
Recent hostile statements towards Pakistan: Trump’s tweet on 1st
January 2018; US South Asia Policy; US National Security Strategy
2017
GLOBAL/REGIONAL ENVIRONMENT
China Rising as an economic and military global power –
Perceived as a challenger to US dominance

US policy of ‘Rebalance to Asia-Pacific’ aimed towards

China; US encouragement of India as counterweight

South-China Sea, as a theatre of future contest

Growing significance of China post-US disengagement from

global issues

• Belt and Road Initiative (BRI)

• Engagement with ASEAN after TPP
• Economic convergence with the EU
 GLOBAL/REGIONAL ENVIRONMENT

India: Seeking big power status;

US envisaged role “net-security provider” in Asia-Pacific region (Indo-

Pacific region)

Modi promoting Hindu fundamentalism in India; impact on Muslims/

minorities

Efforts to destabilize Pakistan (State-sponsored terrorism in Pakistan)

Belligerence on LoC: Demographic, other permanent changes in IoK

Instability through Afghanistan

Not responding to our offers of dialogue

 GLOBAL/REGIONAL ENVIRONMENT
Afghanistan

India-US nexus; using Afghan institutions for a double squeeze on

Pakistan and to counter China: Pakistan held responsible for failures of
the international campaign in Afghanistan

Situation in Afghanistan complex: internal divide; ungoverned spaces;

increase in drug production by 87 %; War and narco-economy

Conflicting / competing interests

Rise of Daesh/ISIS & splinter terrorist groups

Terrorist attacks in Pakistan from “safe havens” in Afghanistan

GLOBAL/REGIONAL ENVIRONMENT

Middle East – Post Arab-Muslim-US Summit

Persistent turmoil

GCC countries and Qatar

Tension between Iran & Gulf States – Clear US tilt

Pakistan – Challenges; Limitations to ‘balance’

relationship

Sectarian divide – Exploitation (Syria, Iraq, Lebanon in

turmoil)
 GLOBAL/REGIONAL ENVIRONMENT
Resurgent Russia

Asserting its role in Syria, Afghanistan, Iran & other

regional issues

Building contacts with Taliban

US-Russia relations – tug of war or prospects of peace?

(Despite Trump’s early gestures, Russia seen as enemy)

China-Russia Alliance – plans of cooperation between BRI

and EEU
 OPPORTUNITIES

 Increasing regional and global connectivity offers immense

opportunities for Pakistan – a country with more than 200 million
population with efficient human resource base – CPEC, TAPI,
CASA 100
 Pakistan’s membership of Regional Organizations: SAARC, ECO,
SCO, Central Asia Regional Economic Cooperation (CAREC),
APEC, ASEM, Asia Cooperation Dialogue (ACD), D-8, ASEAN
Regional Forum (ARF) & Sectoral Dialogue Partner of ASEAN
 Gains in CT operations leading to increase in domestic stability and
macroeconomic uplift
 CURRENT FOCUS
Furthering strategic partnership with China

Continued efforts for enhanced engagement with Afghanistan

Constructive participation in all processes for promoting peace

and stability in Afghanistan (QCG, HoA, Moscow format)

Return of Afghan refugees with dignity and honour; addressing

“safe havens” in Afghanistan

Focus on border management with Afghanistan to prevent illegal

cross border movements

Strengthening of exchanges with Iran in the field of trade,

commerce and border management (Gwadar, Chahbahar
developing as sister ports)
 CURRENT FOCUS
Seek continued engagement with US: Built on convergence, narrow
down differences

Continued cooperation with US for shared objectives to defeat

terrorism and promote regional stability

Enhance relations with important regional countries including

Russia, Turkey and Central Asian countries

Strengthen engagement with EU (A major trading partner; GSP

Plus)

Maintain our principled position for a comprehensive dialogue with

India without any preconditions and for addressing all issues
 CPEC
Pakistan is China’s leading partner in the BRI

BRI has 6 corridors, out of which only CPEC is a bilateral

project

CPEC is an opportunity for Pakistan to enhance connectivity

and leapfrog on the path to development

CPEC has four pillars: energy cooperation, transport

infrastructure, industrial cooperation, and the Gwadar Port

Joint Cooperation Committee (JCC) reviews its

implementation and coordination. Seventh JCC held in
November 2017
 ONGOING CPEC PROJECTS

KKH Phase II Upgrade Underway

Peshawar-Karachi Motorway Underway

Gwadar Port Operational

New Gwadar Airport Being designed

Sahiwal 1,320 MW power plant Operational

Port Qasim coal power plant, Unit I Operational

Gwadar Free Zone Phase One Inauguration in January 2018

Gwadar Eastbay Expressway Groundbreaking held

 UPCOMING CPEC PROJECTS
Industrial Cooperation
SEZs are key to the industrial cooperation cluster under CPEC.
9 sites have been identified by the two sides.
Feasibility studies on these 9 sites are being discussed bilaterally.
Long-Term Plan
Signed at 7th JCC meeting in November 2017. Lays down contours of
CPEC development until 2030.
Identifies additional key cooperation areas: education, agriculture and
people-to-people contacts, financial cooperation, tourism and poverty
alleviation.
 OPPORTUNITIES

 Pakistan’s geostrategic location at the confluence of South Asia,

Central and West Asia

 Economic center of gravity shifting to Asia (market of 3 bn;

abundant natural resources; human capital development)

 Proximity to Central Asia – Potential for energy security and

infrastructure connectivity

 CPEC – a pathway to industrial development in Pakistan

 OPPORTUNITIES

Trade
 Our export limitation emanates from scarcity of export surplus
 Increasing diversity of our export basket (presently too much reliance
on textiles)
 Enhancing price competitiveness of our products (opportunities offer
energy crisis is overcome)
 Addressing Tariff and Non-Tariff Barriers
 Increasing awareness and capacity of exporters to comply with the
requisite technical and sanitary standards
 Efforts to address travel advisories
 Process to negotiate mutually beneficial FTAs with many countries
(like Turkey, Iran, ) underway
 OPPORTUNITIES
 Pakistan’s accession to the International Convention for
Transit Trade (TIR) – Opportunity for increasing trade
and transit in the neighbouring countries
 Pakistan – A natural economic hub, energy corridor and
transit trade facilitator (ECO, CAREC, CASA-100, TAPI)
 Pakistan’s Assets - Unexploited natural resources, 110
million exuberant youth population, potential of its IT
sector, fisheries, under-utilised dairy sector, Halal brand,
and influential and affluent millions of Pakistani
expatriates abroad.
 Pakistan’s growing macroeconomic indicators – Positive
outlook by financial credit ratings, sustained growth
prediction by the WB/IFIs
 PAKISTAN’S KEY CHALLENGES

 Complex neighbourhood

 Belligerent India

 Volatile Afghanistan

 Competing interests of global powers in the region

 Islamic World in Turmoil

 Internal Stability

 Population growth / Youth bulge

 MOFA IBA COOPERATION!

Developing case studies for FSA; Specifically advise on

methodology of developing case studies.

Development of Result based Management System for

the Foreign Office keeping in mind our requirements

Innovation

How to promote Brand Pakistan

Thank you!