The global economy is undergoing one of its most significant transformations since the rise of globalization in the 1990s. For decades, businesses pursued efficiency above all else, shifting production to wherever costs were lowest. China emerged as the undisputed factory of the world, producing everything from smartphones and solar panels to automobiles and industrial machinery. However, recent geopolitical tensions, supply chain disruptions, and strategic rivalries have prompted governments and corporations to rethink this model. A new era of “friendshoring” and “nearshoring” has begun, and it is reshaping the future of global manufacturing.

The COVID-19 pandemic exposed the vulnerabilities of overreliance on a single manufacturing hub. Factory shutdowns in China disrupted global supply chains, leaving shelves empty and production lines idle across Europe and North America. Simultaneously, escalating trade tensions between the United States and China accelerated efforts by multinational corporations to diversify their manufacturing footprints. According to estimates by international consulting firms and investment analysts, hundreds of billions of dollars in manufacturing investments have been redirected toward alternative destinations over the past five years. Countries such as Vietnam, India, Indonesia, Malaysia, and Mexico have emerged as major beneficiaries of this trend.

The next decade may determine whether Pakistan becomes a participant in the new global manufacturing order or merely an observer of it.

The next decade may determine whether Pakistan........

© Daily Times