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Transit-Based Economy: A Game Changer for Pakistan

9 0
06.04.2025

Geographic factors of a particular region play a significant role in defining its strategic importance in the global arena, influencing both foreign and domestic policies. Many states and regions have gained prominence due to their location on the world map, altering their fates in terms of economy and national standing on the global stage. Panama, for instance, is known for its trade-facilitating region, which boosts international trade volume, economy, and global cooperation. According to the World Bank Report, Panama’s GDP has grown from 1 billion dollars to 66 billion dollars from 1960 to 2020. In this century, the idea of a transit-based economy has successfully been leveraged by many states, transforming their GDPs. Singapore, Hong Kong, the United Arab Emirates (UAE), and The Netherlands are classic examples of transit economies.

In line with this, Pakistan is among the lowest GDP states in South Asia. It has been grappling with the issue of economic deficit since its inception due to multifaceted reasons. However, there are many pathways to scale up the financial volume of the state, addressing the current account and fiscal deficit of the nation. Amazingly, one such way includes a transit-centric economy backed by the geographical position of the state. Shedding light on the geography of Pakistan, it is located at the crossroads of Asia. Furthermore, it is at the heart of the Central Asian states and also lies in close proximity to energy-rich regions like Iran and the Middle East.

Moreover, it also possesses maritime significance in terms of the Arabian Sea, located to the south of Pakistan, facilitating maritime trade with the Middle East, Africa, and the European continent. Additionally, the favorable topography, vast mountainous terrains including the Karakoram and Himalayan ranges, and the presence of strategic passes like Khunjerab and Bolan connect the nation with the Central Asian region, China, and Afghanistan, increasing the strategic importance of the state. Furthermore, it is blessed with an........

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