Karachi Rises Again: How Middle East turmoil is repositioning Pakistan as Global Trade Hub

OpinionKarachi Rises Again: How Middle East turmoil is repositioning Pakistan as Global...

By Dr. Shazia Anwer Cheema

War is a sad reality that history has repeated many times. It is perhaps the single most common repetitive action in human history. History, more than recording who won or who lost a war, is inclined to document the changes that war brings—politically, economically, psychologically, and even philosophically.

The current war between the US–Israel alliance and Iran is nowhere near its logical conclusion, yet the eruption of new systems, ideas, and collective understandings has already begun to emerge. What will the world look like after this war? What will be the security architecture, economic model, and international diplomacy?

One sudden change I can personally observe in my own country is the emergence of opportunities—not one, not two, but many. It may sound insensitive in such a situation, but political reality is inherently unsentimental. A middle power like Pakistan is being presented with opportunities by these events, which, if tactfully utilised, could change the destiny of generations to come.

One such event is the closure of Hormuz. Pathways and waterways are not merely routes for traders and caravans; they are the arteries of the very heart of civilisations. A single blockade can choke the blood supply, and civilisations can collapse. That is why the 21st century, besides being the century of energy, is also the century of its supply. Those who control the supply routes control the central nervous system of the world. If this current conflict has not reinforced this ancient wisdom, then we have missed the real point.

Pakistan, despite having not one but two deep-sea ports, has never materially enjoyed their dividends. But now, suddenly a shift in global dynamics has undone the work of many who invested heavily over the past 30 years, to turn Karachi into a failed city and its port into a deserted facility. History has once again confirmed that the power of gunpowder is so overpowering that it can ruthlessly erase and rewrite realities at any moment.

How long the Middle East crisis continues, and who ultimately wins or loses, is not the central issue. The real point is that Pakistan’s geopolitical position cannot be denied or altered. This location presents both the most critical challenge and the greatest opportunity for the country. There is no need to present a formal SWOT analysis here; anyone with an understanding of geopolitics will recognize this veracity.

The potential closure of the Strait of Hormuz is not the only factor contributing to the surge in cargo traffic toward Pakistani ports. The broader regional instability suggests that relying on Gulf ports is no longer a safe option for global trade. Sensing this shift, Pakistan is quietly positioning itself as a serious regional trade and transshipment hub by combining policy incentives with operational reforms.

Substantial reductions in port dues and scanning charges, expansion of port capacity, and relaxed transshipment rules clearly signal an intent to attract global shipping traffic and reduce the cost of doing business. These are not cosmetic measures; they directly address long-standing bottlenecks that have limited Pakistan’s competitiveness in regional logistics. Additionally, improvements in customs facilitation, digitalization of port operations, and enhanced connectivity with inland trade routes could further strengthen this emerging position.

Islamabad is also demonstrating strategic agility by leveraging shifting geopolitical realities. The temporary easing of export rules for trade through Iran particularly toward Central Asia reflects a pragmatic approach to rerouting trade flows disrupted by Middle Eastern tensions. If sustained and institutionalized, these measures could transform Pakistan from a peripheral player into a key trade corridor linking South Asia, Central Asia, and beyond. Nevertheless, all of this will only be possible if the corrupt administrative system is kept away from strategic decision-making. It is evident that even the best policies in Pakistan can be reversed when they threaten entrenched interests and mafias operating within the system. A recent example is the green energy sector. The government initially encouraged solarization, but when the interests of Independent Power Producers (IPPs) were affected, many progressive decisions were rolled back.

Although Prime Minister Shehbaz Sharif intervened to salvage some of these initiatives, biofuel lobbies and IPPs have largely succeeded in creating uncertainty, discouraging consumers from investing in solar energy. As a result, many citizens are now hesitant to commit significant resources to private solarization, having seen policies shift within just two years. Meanwhile, the ongoing global energy crisis has reinforced the importance of renewable energy and reducing dependence on fossil fuels. This situation should serve as a wake-up call for the government to prioritize long-term national interests over pressure from vested groups and to actively promote liberal trade initiatives such as Pakistan has taken now.

While I am not an economist and therefore will not analyze these developments in technical economic terms, it is clear that the Middle East crisis has elevated Pakistan’s standing on the global stage. The country is increasingly viewed as a trusted interlocutor among major powers as evidenced by its role in facilitating Iran–US messaging, a reliable trade destination, and a stabilizing security partner.

Pakistan’s rise in this context is not unprecedented. Historically, it has played the role of a reliable partner for many nations. The United States relied on Pakistan 55 years ago to open diplomatic channels with China during the era of ping-pong diplomacy. Pakistan has also contributed at various times to easing tensions between regional rivals, including Saudi Arabia and Iran, as well as Saudi Arabia and Qatar.

However, Pakistan’s adversaries are unlikely to welcome this resurgence and will look for opportunities to counter it, particularly its emergence as a global trade hub. The country must remain vigilant and learn from its past, including the forces that destabilized Karachi and reduced it to a city plagued by violence and those who are trying to harm Gwadar Port future through injecting terrorism in Balochistan.

Losing this opportunity is not an option. At the same time, dealing naively or passively with hostile regional as well as international actors is no longer viable in the 21st century. A balanced approach combining strategic firmness with diplomatic engagement will be essential for sustaining Pakistan’s rise.

Dr. Shazia Anwer Cheema is an accomplished author and analyst who contributes regularly to both national and international media outlets. She holds an M.Phil in Cognitive Semiotics from Aarhus University, Denmark, and earned her Ph.D. in Semiotics and the Philosophy of Communication from Charles University, Prague.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the official policy or position of the DND Thought Center or Dispatch News Desk (DND). Any assumptions or interpretations presented in the analysis are likewise independent and should not be attributed to these institutions.

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