CSS Pakistan Affairs | Economic Significance of the Geostrategic Location of Pakistan
The following question of CSS Current Affairs is solved by Khirman Batool under the supervision of Howfiv’s Pakistan Affairs and Current Affairs Coaches. She learnt how to attempt 20 marks question and essay writing from Sir Syed Kazim Ali, Pakistan’s best CSS and PMS English essay and precis teacher with the highest success rate of his students. This solved past paper question is attempted on the pattern taught by Sir to his students, scoring the highest marks in compulsory and optional subjects for years, and uploaded to help aspirants understand how to crack a topic or question, how to write relevantly, what coherence is, and how to include and connect ideas, opinions, and suggestions to score the maximum.
Outline
1- Introduction
2- Understanding the term geostrategic location
3- What are the economic prospects of Pakistan’s geostrategic location?
- ✔Generating revenue from transit trade corridors
- Case in point: Applying tax on transit routes
- ✔Increasing export of the country
- Case in point: Foreigners encountering Pakistani products
- ✔ Developing Free trade zones with neighbour countries
- Case in point: Pakistan and India having the potential to develop a free trade zone
- ✔Signing Energy projects with neighbour countries
- Case in point: Pipelines project
- ✔Energy projects under CPEC
- Case in point: CPEC energy projects boosting the economy
- ✔ Boosting the agricultural industry
- Case in point: Variety in Agricultural basket
- ✔Generating output from Fishery Market
- Case in point: Expecting revenue generation of the Fishery industry by the end of 2024 is 17.19million US dollars
5- Conclusion
Answer to the Question
Introduction
Pakistan’s geostrategic location is of virtue due to its borders with Afghanistan, Iran, China, India, and the Arabian Sea, leading to economic prospects for the country. It can generate revenues by providing transit trade corridors to the international community and developing free trade zones among neighbouring countries. Moreover, the country has signed many energy agreements with neighbouring countries, like CPEC, TAPI, and the Pakistan-Iran gas pipeline, due to its geostrategy. CPEC is a game changer for the country as the agreement is a monumental infrastructure project, aiming to connect Gwadar Port to China’s western region through a network of roads, railways and pipelines. Pakistan is a bridge between the West and Asian countries, specifically through the Wakhan corridor; central Asian Republics CARs use Gwadar port for the transportation of their resources. Besides, Pakistan’s geostrategy leads the country’s economy towards an agricultural base as the country has the most fertile land and a variety of weather. Additionally, the southern border has the potential to develop the fishery industry, resulting in a fish & seafood market, which also generates revenue for the country. So, the scenario makes Pakistan’s strategic position strong in economic prospects.
Understanding the term Geostrategic Location
Geo means earth and geostrategic means the strategy or tactics one makes with respect to its location on earth. So, the geostrategic location of a country means the strategy is influenced by the geographic direction of the country in its foreign policy. Indeed, geostrategic location of a country is of virtue when it learns to exploit its geography to the best of its strategic interests. The country’s geography offers an adventitious position for its military, economy, and politics to control trade, security, and communication, contributing to the nation’s broader objectives in the region and worldwide.
Overview of Pakistan’s Geopolitical Crossroads
The country is in advent position due to its geography. Pakistan has its southern border with the Arabian Sea, the only deep warm waters joining the major economies by giving transit routes to them. Further, as per Rim Land Theory, the Eurasian countries at the coastal borders are the most important geopolitical regions of the world. Next, Pakistan’s western border is with Iran, a country rich in natural resources, paving the path for access to the Middle East. Afterwards, on the northern side, it has a border that extends to the People’s Republic of China, the only country stepping forward after 9/11 for major economic projects in Pakistan. Moreover, it gives the path to reach ASEAN states. Pakistan has its largest border with Afghanistan, where the Wakhan corridor offers Pakistan the path to Central Asian Republicans (CARs). So, Pakistan is the linchpin country by virtue of its geography. Lastly, at the eastern border, Pakistan is linked with India, a route to reach South Asia
The Economic Prospects of Pakistan’s Geostrategic Location
Pakistan’s geostrategic location has many prospects and economic prospects, the leading criteria towards economic development of a country.
- Generating revenue through transit trade corridors
Pakistan can generate revenue through transit trade corridors, which is an economic prospect due to its geostrategic location. This would be achieved through applying tax on using the country’s land. The country has signed many agreements with neighbouring countries, like CPEC and the Afghanistan-Pakistan Transit Trade Agreement (APTTA). APTTA is an agreement, which was signed between Pakistan and Afghanistan, focused on accessing the nearest transit trade route by Afghanistan to access the Persian Gulf and the West for expansion of the trade. Moreover, CPEC has boosted trade opportunities for Pakistan by developing Gwadar Port. It has also built a road network across Pakistan to ensure more opportunities for trade from all over the country. All these factors enhance the geostrategic importance of Pakistan, which can be cashed by implying tax and generating revenue for the country. The country would generate revenue from neighbouring countries as the hub of international trade. And completion of CPEC would boost the more such opportunities.
- Increasing export of the country
The transit routes are the source for enhancing the exports of the country as people from different countries visit the country and take its items to their countries. As a result, Pakistan’s products will reach other countries. In consequence, Pakistan’s strategic importance is increased for generating revenues and increasing exports by providing transit routes through Gwadar port as it is the international trade hub of Pakistan. Likewise, under CPEC, tourism would be enhanced, and this would also increase export opportunities. And unlike other energy-rich countries, Pakistan has the world’s best agriculture basket for export.
- Developing Free trade zones with neighbour countries
Pakistan is a country that shares its borders with India, China, Iran, and Afghanistan. To promote economic prospects for the country, it can develop free trade zones with neighbouring countries. For instance, if conflicts were settled between Pakistan and India, both countries would have the potential to develop free trade zones, leading towards economic boost for both countries as Pakistan would earn foreign currency. Thus, free trade zones have the capacity to boost the country’s economy due to their strategic location.
- Signing energy projects with neighbouring countries
Additionally, Pakistan is at virtue where it has an access to energy resources. The Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline, the Pakistan-Iran gas pipeline, Access to Oman undersea energy resources and energy projects under CPEC are the energy routes that Pakistan has gained due to its geographic location.
TAPI was a project, which has been funded by Asian Development Bank (ADB). It is believed that it would also strengthen the integration of the market and enhance energy trading of Turkmenistan, Afghanistan, Pakistan, and India as it would bring Central Asian and South Asian economies on one page. Similarly, the Iran-Pakistan pipeline is also believed to boost the economies of both countries. And, the energy projects of CPEC, like Quaid-e-Azam Solar Park in Bahawalpur, having a capacity of 1000MW Quaid, would meet the energy requisites of the country. All the projects would boost the industrial growth of Pakistani industries, decreasing imports from the country. Further, by signing the Muscat agreement between the Sultanate of Oman and Pakistan, both countries have resolved their conflicts with each other. This has given Pakistan access to the Persian Gulf. And the access would prosper Pakistani economy as they are Muslim ideologies rich in natural resources, providing low rate natural resources. Thus, an increase in energy production will improve the country’s industrial sector, leading to a boost in the economy.
- Boosting agricultural industry
Pakistan has productive land, which is rich in minerals, having an edge of four seasons. In fact, the country has 70 per cent of its exports are directly or indirectly derived from agriculture. It has a total area of Agricultural land is 30.5 million hectares, which is about 47 per cent of the national land is agricultural land, 38 per cent higher than the average global agricultural land. It has an Irrigation system that the British have gifted the country due to its geostrategy. As the Indus River Basin is the largest river that has been rooted deeply all over Pakistan, it is the base of the irrigation system. The cherry on the top is its four seasons that bring variety to the agriculture basket. There are two types of crops in the country, monsoon and winter crops. Additionally, monsoon crops are rice, maize, millet, sugarcane, ragi, pulses, soybean, and groundnut, and the winter crops include wheat, barley, gram, peas, mustard, and oil-seeds such as sesame and linseed. The variety it produces provides a wide range of export of agricultural opportunities for the country.
- Generating Outputs from the Fishery Industry
Pakistan’s southern border with the Arabian Sea results in the development of the Fishery industry, which is another economic significance due to the geostrategy of the country. The three main recreational fisheries in Pakistan are billfish and tuna fishing in the Exclusive Economic Zone of Karachi, pelagic sport fishing in coastal waters, and hand-line fishing in inter-tidal and shallow waters. Moreover, the country can generate revenue through the industry. Besides, revenue in the Fish & Seafood Market is projected to reach 17.19 million US dollars in 2024 and is expected to show an annual growth rate of 1.88%, resulting in an 18.87 million US dollars projected market volume by 2029. Therefore, the overall revenue generated by the Fishery Industry is due to Pakistan’s strategic location, which shares its border with the marine waters of the Arabian Sea.
Conclusion
In conclusion, Pakistan’s geography marks its beneficiary in many domains, outweighing the economic prospects for the country. The country has gained many projects due to its geography, for sharing its borders with energy-rich countries, deep warm waters, and economic powers. For instance, CEPC, the TAPI pipeline, the Transit route for international trade, and the Muscat agreement are all of great economic significance for the country due to their geostrategic location. Also, its agricultural land generates revenue under green economic developments, and the maritime border with the Arabian Sea results in revenue generation, leading towards economic prospects. All the projects would bring economic prosperity to the country. Due to the reason Grey and Sloan have stated, “Geography is the mother of all strategy.”
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