By Junaid Qaiser
For much of the past decade, Pakistan was often discussed in global forums through the prism of crisis—economic strain, political instability, and persistent security challenges. Expectations were low, even among partners, and critics routinely portrayed the country as a declining regional actor. That narrative, however, has begun to change. Under the Special Investment Facilitation Council (SIFC), a more coherent and investor-friendly framework has emerged, helping stabilise the economy and unlock growth opportunities.
In 2025, Pakistan is increasingly being viewed not as a state struggling to cope, but as one capable of shaping outcomes. The brief but intense standoff with India earlier this year proved to be a turning point. At a moment when Pakistan was widely assumed to be weakened by internal pressures, its armed forces demonstrated preparedness, coordination, and restraint. The performance of the Pakistan Air Force, in particular, challenged long-held assumptions and reinforced Pakistan’s deterrence credibility. Equally important was Islamabad’s ability to manage escalation, signalling strength without losing strategic control. As The Carolina Political Review notes, the conflict strengthened Pakistan’s international position and contributed to a renewed sense of confidence in Washington. The Trump administration’s National Security Strategy, which explicitly recognises Pakistan as a key US ally and a vital bridge between South Asia, the Gulf, and Central Asia, underscores this recalibration.
This shift did not go unnoticed in Washington. The crisis helped restore momentum in Pakistan–US relations and encouraged a reassessment of Pakistan’s strategic value. The Trump administration’s National Security Strategy, which identifies Pakistan as a key partner linking South Asia, the Gulf, and Central Asia, reflects this renewed thinking. President Donald Trump’s public praise for Chief of Army Staff Field Marshal Asim Munir further underlined this change in tone.
Wider regional dynamics have also worked in Pakistan’s favour. As the United States encourages allies to take greater responsibility for their own security, and as instability in the Middle East exposes the limits of external guarantees, regional actors have begun looking for partners with proven operational capability and political resilience. Pakistan’s demonstrated ability to deploy high-end military capacity without internal destabilisation has reshaped perceptions, culminating in deeper defence cooperation with Saudi Arabia and a growing view of Pakistan as a potential contributor to regional stability rather than a source of risk.
Strategic relevance, however, cannot endure without economic strength. Here too, cautious progress is visible. Through the Special Investment Facilitation Council, Pakistan has moved toward a more coordinated, investor-focused approach. Major investments in telecommunications, manufacturing, and minerals, along with the privatisation of Pakistan International Airlines, signal renewed confidence in the economy. These developments matter not just for balance sheets, but for job creation, industrial growth, and long-term stability.
None of this suggests Pakistan’s challenges have disappeared. Militancy along the western border remains a concern, relations with India are tense, and economic recovery is still fragile. Yet what stands out is a growing recognition within Pakistan’s leadership that geopolitics cannot substitute for economic discipline. A country perpetually in crisis cannot be a reliable regional actor.
The most encouraging sign is the growing consensus within Islamabad and Rawalpindi that geopolitical relevance cannot be sustained without a strong economic foundation. This recognition marks a break from past cycles of strategic overreach divorced from economic reality.
After years of strategic drift, Pakistan now finds itself in a rare moment where key partners see tangible value in engagement. Whether this opportunity translates into lasting influence will depend on sustained reform, coherent statecraft, and restraint. For now, Pakistan’s strategic comeback is real. The task ahead is to ensure it becomes durable rather than fleeting.
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