There is growing evidence that the global order is undergoing a gradual yet meaningful transformation. The post-Cold War phase of unquestioned American dominance appears to be giving way to a more dispersed, multipolar arrangement in which emerging powers — particularly China — are playing an increasingly assertive role.
The US-China trade confrontation, especially from 2020 onwards, sought to restrain China’s economic rise through tariffs, export controls and broader economic pressure. Instead, it highlighted the limits of coercive economic measures in an interconnected world. China responded by strengthening domestic production, diversifying supply chains and expanding trade beyond traditional Western markets. At the same time, the growing reliance on sanctions and financial restrictions has encouraged many states to pursue greater strategic and economic autonomy.
These shifts are also visible in global institutions and financial arrangements. Groupings such as BRICS and SCO have gained relevance as platforms for economic cooperation, regional connectivity and political coordination outside Western-led frameworks. Several countries have begun trading in local currencies, and although the dollar remains dominant, its previously unchallenged position is increasingly being questioned. Energy realignments and regional trade blocs are further reshaping international relations.
In this environment, countries with stable and cooperative relations with their neighbours are often the most advantaged. Geography still matters, and regional peace remains a key driver of economic growth. For Pakistan, improving relations with neighbouring states — particularly India, Afghanistan and Iran — should be viewed not merely through a security lens but as an economic and strategic necessity. Enhanced regional connectivity, cross-border trade and sustained diplomatic engagement could help ease Pakistan’s economic vulnerabilities.
A multipolar world offers Pakistan opportunities to diversify partnerships and reduce overdependence on any single bloc, but it also demands careful navigation. A pragmatic foreign policy, supported by stronger regional ties, export diversification, improved industrial capacity and governance reforms, is essential.
The world order may still be in a state of flux, but countries that adapt early — especially by stabilising their immediate neighbourhood — are more likely to secure long-term economic and strategic gains.
Zeeshan Soomro
Larkana
