NAVIGATING PAKISTAN'S FOREIGN POLICY TOWARD G7: TRADE DYNAMICS, ECONOMIC CHALLENGES, AND STRATEGIC OPPORTUNITIES

Abstract

Foreign policy is crucial in influencing a country's economic and trade dynamics. This study examines Pakistan's foreign policy strategies toward G7 countries and analyzes their implications for Pakistan's business and economic landscape. The G7, comprising the world's most advanced economies, significantly influences global financial trends, trade policies, and investment opportunities. For Pakistan, engaging effectively with these nations is critical for securing trade partnerships, attracting foreign direct investment (FDI), and addressing economic challenges such as fiscal deficits, trade imbalances, and debt management. This research explores how diplomatic efforts, bilateral agreements, and multilateral collaborations have affected Pakistan's access to G7 markets, technology transfers, and economic aid. It also evaluates the impact of sanctions, trade restrictions, and geopolitical shifts on Pakistan's economic growth. Furthermore, the study investigates the potential of diversifying export portfolios and enhancing regional cooperation to mitigate dependency on G7 nations. Findings suggest that Pakistan's strategic alignment with G7 policies in areas such as sustainable development, climate change, and digital transformation could unlock substantial economic benefits. However, challenges such as political instability, inconsistent policy frameworks, and global economic disruptions need to be addressed to maximize these opportunities. The study concludes with policy recommendations for fostering resilient economic ties with G7 nations, emphasizing the need for proactive diplomacy, economic reforms, and targeted trade initiatives to bolster Pakistan's business and economic prospects.