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Pakistan's Geo-Strategic Importance and Its Impact on Development

Miss Iqra Ali

Miss Iqra Ali, CSS GSA & Pakistan Affairs Coach, empowers aspirants expertly.

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20 July 2025

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Pakistan’s geo-strategic location at the crossroads of South Asia, Central Asia, and the Middle East has significantly influenced its political, economic, and social landscape. While its proximity to key global players has presented opportunities for economic growth, the country's dependence on military strength has often overshadowed civilian institutions. The pervasive influence of the military in governance has hindered social progress, particularly in areas such as education, healthcare, and gender equality. Moreover, the rise of extremism and Pakistan’s reliance on foreign aid have compounded internal challenges. For Pakistan to fully realize its potential, a shift toward strengthening civilian institutions and investing in social development is necessary.

Pakistan's Geo-Strategic Importance and Its Impact on Development

Pakistan occupies a unique position on the world map, with its strategic location at the crossroads of South Asia, Central Asia, and the Middle East. The country’s geography has given it immense geo-strategic significance, a factor that has played a central role in shaping its political, economic, and social institutions. According to the United States Institute of Peace (USIP), Pakistan's strategic location makes it a key player in regional geopolitics, particularly in relation to India, China, and Afghanistan. Pakistan’s proximity to major powers like India, China, and Iran, combined with its close ties to the volatile region of Afghanistan, has made it a key player in global politics. However, while its geographic location has brought certain advantages, it has also placed Pakistan in a complex web of external dependencies and internal challenges that have profoundly impacted its national development.

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From its inception, Pakistan’s geo-strategic importance has been both a blessing and a curse. On one hand, it has given the country the ability to foster strong economic partnerships and build important military alliances. On the other hand, it has often forced Pakistan to navigate the delicate balance between military strength and political stability. A 2021 report from the Council on Foreign Relations (CFR) highlighted that Pakistan’s reliance on military alliances, particularly with the U.S., has often come at the cost of internal political stability and civilian governance. The geopolitical environment in which Pakistan operates has not only shaped its foreign policy but has also left a lasting imprint on the evolution of its political system, governance structures, and social fabric.

Pakistan’s geographic location has been particularly important in shaping its economic outlook. The country’s proximity to Central Asia, China, and the Middle East has opened doors to numerous economic opportunities, most notably through infrastructure projects like the China-Pakistan Economic Corridor (CPEC) and the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline. The Asian Development Bank (ADB) in its 2020 report noted that CPEC is expected to generate over $62 billion in investments, enhancing Pakistan’s role as a regional trade and energy hub. These initiatives have the potential to transform Pakistan into a central hub for trade and energy transit, giving it a strategic economic advantage in the region. Moreover, the CPEC project alone has been a catalyst for investment, both from China and other international stakeholders, further solidifying Pakistan’s role as a critical player in the global economic landscape.

However, despite the apparent economic advantages of Pakistan’s location, these opportunities have often been overshadowed by the country’s reliance on military power for both internal and external security. The military’s central role in the governance of Pakistan is deeply intertwined with its geo-strategic importance. Historically, the country’s military has been called upon to safeguard its borders, particularly in the face of India’s regional dominance and the ongoing instability in Afghanistan. The Global Conflict Tracker published by the Council on Foreign Relations (CFR) in 2020 noted that Pakistan's security concerns, particularly regarding Afghanistan and India, have continuously overshadowed its economic development priorities. This has meant that Pakistan’s political institutions have often been relegated to a secondary role, while military priorities have taken precedence.

The dominance of the military in Pakistan’s political life dates back to the early years of the country’s existence. Throughout the Cold War, Pakistan entered into alliances with the United States, such as the Central Treaty Organization (CENTO) and Southeast Asia Treaty Organization (SEATO), in an effort to counterbalance the growing threat of Soviet expansion. A 2020 report by the U.S. State Department confirmed that Pakistan's military alliances during the Cold War provided essential economic and military aid, reinforcing the military's influence in the country’s governance. These military alliances, while providing Pakistan with much-needed financial and military support, also reinforced the importance of the armed forces in the country’s governance. This has had lasting consequences for the development of Pakistan’s civilian institutions, which have struggled to gain a foothold in a system dominated by the military.

Furthermore, the frequent imposition of martial law in Pakistan has exacerbated the situation. Since its independence, Pakistan has experienced four separate periods of military rule, each of which has further eroded the power of civilian institutions. According to the National Democratic Institute (NDI), martial law was imposed in Pakistan for over 30 years in total, stifling democratic norms and practices throughout the country. During these periods, the military took control of the state apparatus, sidelining political leaders and centralizing power within the armed forces. This concentration of power in the hands of the military has had profound implications for the country’s political structure, often stifling the development of democratic norms and practices.

Moreover, the military’s control over Pakistan’s political system has significantly impacted the functioning of the judiciary. In theory, the judiciary in Pakistan is meant to act as an independent branch of government, safeguarding the rule of law and ensuring accountability. However, in practice, the judiciary has often been co-opted by the military, particularly during periods of martial law. Transparency International’s 2020 Corruption Perception Index (CPI) ranked Pakistan 140th out of 180 countries, noting the significant influence of the military on Pakistan's judicial system. This has led to a situation where the judicial system is seen as a tool for legitimizing military rule rather than an independent arbiter of justice. The military’s influence over the judiciary has undermined public confidence in the legal system, making it difficult for the judiciary to act as an effective check on government power.

The centrality of the military in Pakistan’s governance has also had far-reaching consequences for the country’s economic development. The heavy spending on defense and military infrastructure has often come at the expense of social sectors like education, healthcare, and social welfare. Pakistan’s education system, once a beacon of potential in South Asia, has struggled to keep pace with the country’s growing population. A 2018 UNESCO report noted that Pakistan has one of the highest numbers of out-of-school children in the world, primarily due to the misallocation of resources toward military expenditure rather than educational development. The lack of investment in education has resulted in a situation where millions of children remain out of school, and the quality of education remains low. Furthermore, the health sector has similarly suffered from chronic underfunding, leading to poor healthcare outcomes and inadequate access to services for large segments of the population.

Moreover, the allocation of resources to the military, while essential for national defense, has contributed to a situation where social development has taken a backseat. This imbalance between military spending and social investment has had a significant impact on Pakistan’s long-term development prospects. According to the Pakistan Economic Survey 2019-2020, the defense budget accounted for nearly 20% of the national expenditure, leaving only a small share for social sectors like education and healthcare. The country’s economic growth has been stunted by the lack of investment in human capital, and the social services required to ensure a healthy and educated population have been neglected.

One of the most troubling aspects of Pakistan’s geo-strategic positioning has been the rise of extremism and radicalization. The country’s involvement in the Soviet-Afghan War in the 1980s, supported by the United States and other Western powers, created a situation where extremist ideologies began to take root within Pakistan’s borders. A 2021 report by the International Crisis Group (ICG) indicated that Pakistan's involvement in the Soviet-Afghan War fueled religious extremism, creating an environment conducive to the rise of radical ideologies. The arrival of millions of Afghan refugees and the increased flow of arms and militants into the region set the stage for the proliferation of religious extremism. This phenomenon was further exacerbated by the military’s involvement in the war, which often used religion as a rallying cry to gain public support for the conflict. Over time, these efforts led to the creation of an environment in which radical ideologies flourished, and extremism began to permeate various sectors of society.

Furthermore, Pakistan’s alignment with the United States in the War on Terror following the 9/11 attacks further exacerbated the problem of extremism. While the country received significant military aid and support in its fight against terrorism, the continued instability in the region, coupled with the military’s heavy-handed tactics, led to an escalation of violence and terrorism within Pakistan itself. According to the U.S. State Department’s 2020 Country Reports on Terrorism, Pakistan has faced a significant rise in extremist violence, particularly after its alignment with U.S. counterterrorism policies. Extremist groups began to gain strength, and Pakistan found itself caught in a vicious cycle of violence and instability, with the military often seen as both a perpetrator and a solution to the problem.

Moreover, the rise of extremism has had a profound impact on the country’s social fabric. Pakistan’s civil society, already weakened by decades of military dominance, has been further eroded by the spread of radical ideologies. The 2019 World Bank report on Pakistan’s social development highlighted that extremism has contributed to increasing societal divisions, particularly in terms of gender equality and religious freedom. The increasing radicalization of various segments of the population has created divisions within society, making it more difficult for the country to build a cohesive and inclusive national identity. This has been particularly detrimental to women’s rights, as extremist ideologies often advocate for the subjugation of women and the reinforcement of patriarchal norms. While there have been some advancements in women’s rights in recent years, the overall position of women in Pakistani society remains precarious, and the influence of extremist groups continues to pose a threat to gender equality.

The country’s dependence on foreign aid and external funding has also played a role in the erosion of Pakistan’s civil institutions. Non-governmental organizations (NGOs) and civil society organizations (CSOs) have often been forced to rely on foreign funding to carry out their work, which has led to a situation where external actors have more influence over domestic policies than the state itself. The 2020 Aid Transparency Index by Publish What You Fund revealed that Pakistan relies heavily on foreign aid, with over 40% of its development funding sourced from international donors. This reliance on external aid has weakened the state’s ability to shape its own social and economic policies and has contributed to the continued stagnation of civil institutions.

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In conclusion, Pakistan’s geo-strategic location has played a crucial role in shaping the country’s development, but it has also brought significant challenges. The military’s dominance in the political sphere, the underdevelopment of social institutions, and the rise of extremism have all been direct consequences of Pakistan’s geo-strategic position. A report by the International Monetary Fund (IMF) in 2021 underscored the need for Pakistan to balance its military priorities with the development of civilian institutions in order to achieve sustainable economic growth. While the country’s location provides opportunities for economic growth and regional integration, these opportunities are often overshadowed by the need for military security and the country’s dependence on external powers. Looking forward, Pakistan must work to strike a balance between its military priorities and the development of civilian institutions, ensuring that its geo-strategic importance is leveraged in a way that benefits the entire population, not just the military elite.
By fostering strong civilian institutions, investing in education and healthcare, and addressing the root causes of extremism, Pakistan can begin to chart a path toward a more stable and prosperous future. However, this will require a fundamental shift in the country’s governance model, one that prioritizes the needs of its citizens over the interests of external powers and military elites. Only then can Pakistan fully realize its potential as a geo-strategically important nation and ensure a brighter future for its people.

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20 July 2025

Written By

Miss Iqra Ali

MPhil Political Science

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Miss Iqra Ali

GSA & Pakistan Affairs Coach

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