Navigating the fallout of a global trade war

As the United States and China wage an all-out trade war — with escalating tariffs, strategic retaliations, and an economic standoff that reverberates globally — the impact on Pakistan is both profound and potentially existential. For a nation burdened by a fragile economy, geopolitical dilemmas, and longstanding structural inefficiencies, these global shifts introduce challenges that are far more than mere collateral damage; they portend a future where Pakistan’s economic relevance may be at serious risk. Pakistan’s economy has long struggled with inherent weaknesses: fragile fiscal management, a persistently volatile currency, and underdeveloped industrial sectors. In an era when global supply chains are increasingly disrupted by tariff escalations, Pakistan’s position is particularly precarious.