By Uzma Ehtasham
Pakistan and Indonesia have taken significant strides to elevate their long-standing preferential trade agreement into a full-fledged economic partnership by 2027, signaling a deliberate effort to deepen ties that have historically rested on shared faith, culture, and historical connection. The announcement comes amid growing recognition in Islamabad and Jakarta that conventional trade frameworks, while useful, have often limited the potential of bilateral economic engagement. Prime Minister Mohammad Shehbaz Sharif underscored Pakistan’s commitment to this goal during a meeting with a five-member Indonesian delegation led by Investment Minister Rosan Roeslani, framing the dialogue as part of a broader ambition to move beyond simple tariff arrangements into collaborative industrial and technological ventures.
The talks explored avenues including investment promotion, technology transfer, and cooperation in priority sectors such as healthcare, halal food, palm oil, textiles, and pharmaceuticals. For both countries, this is not merely a diplomatic gesture; it is a strategic pivot aimed at fostering industrial cooperation, boosting exports, creating employment, and embedding sustainable economic growth into their partnership. The engagement with Indonesia is emblematic of a wider recalibration in Pakistan’s foreign and economic strategy. Prime Minister Shehbaz Sharif has stressed the importance of converting decades-old fraternal ties with Kuwait into substantive economic engagement. Speaking at the launch of a digital banking licence for the Raqmi Islamic Bank, he positioned financial innovation as a bridge between political goodwill and market access.
He suggested that structured partnerships could grant Kuwait entrée into Pakistan’s emerging sectors while simultaneously advancing domestic priorities in energy, infrastructure, agriculture, information technology, and real estate. Similarly, meetings with Cambodia’s trade minister and agreements between Pakistani and Saudi Arabian defence companies indicate a multi-vector approach that seeks to combine regional influence, technological collaboration, and industrial growth. Collectively, these initiatives reflect a conscious effort to project Pakistan not only as a strategic partner but also as a capable and innovative economic actor in a crowded regional landscape. Underlying this diplomacy is a rare coherence in domestic leadership. The alignment of Prime Minister Shehbaz Sharif, Deputy Prime Minister and Foreign Minister Muhammad Ishaq Dar, and Field Marshal Syed Asim Munir conveys a unified vision in navigating the twin challenges of domestic stability and global opportunity.
For years, Pakistan’s credibility has been undermined by a disconnect between political leadership and institutional actors, where discord often diluted policy signals and complicated investor confidence. Today, the state presents a more consolidated front, able to translate rhetoric into measurable economic and strategic outcomes—a prerequisite for sustaining meaningful partnerships abroad. Yet, the success of these external ambitions hinges on internal robustness. Agreements and memoranda of understanding will hold little value if investors and foreign partners remain sceptical about the continuity of policy, regulatory predictability, and institutional transparency. Tackling corruption, streamlining bureaucracy, simplifying tax systems, and accelerating judicial processes are not optional; they are central to converting diplomatic commitments into tangible economic outcomes.
Equally essential is cultivating a national consensus that prioritizes enduring prosperity over short-term political gains. Foreign actors naturally gravitate toward states where institutions function in synchrony rather than in competition, and Pakistan’s economic credibility rests on demonstrating exactly that alignment. The broader regional context both complicates and enhances these ambitions. Shifting trade blocs, evolving energy dynamics, instability in the Middle East, and rising tensions among major powers underscore the importance of nimble, principled diplomacy. Pakistan’s engagement in the China-Pakistan Economic Corridor, coupled with new industrial zones and agricultural projects, constitutes the backbone of a regional economic vision. If leveraged alongside partnerships with Southeast Asia and Muslim-majority nations, Pakistan has the potential to become a hub for trade, technology, and defence cooperation in South and Southeast Asia.
Ultimately, Pakistan’s engagement with Indonesia, Kuwait, Saudi Arabia, and other regional partners exemplifies a deliberate and strategic attempt to expand economic horizons while consolidating domestic governance. The path forward requires more than announcements or diplomatic theatre; it demands sustained effort, rigorous policy implementation, and a clear alignment of political and institutional objectives. If these conditions are met, Pakistan could not only transform its external economic relationships but also establish a pattern of governance and strategic planning that underpins long-term national prosperity. In an era of heightened regional competition and global economic volatility, the stakes are high, but so too is the potential reward: a Pakistan that is economically robust, strategically influential, and institutionally coherent, guided by a commitment to stability, integrity, and national interest.
(The writer is a public health professional, journalist, and possesses expertise in health communication, having keen interest in national and international affairs, can be reached at uzma@metro-morning.com)
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