he World Economic Forum 2025, held in Davos, Switzerland, convened under the theme, Collaboration for the Intelligent Age, just ended with a strong emphasis on the importance of global cooperation in harnessing advanced technologies, particularly artificial intelligence, to address complex global challenges.

Leaders from all over the world participated in the forum and underscored the necessity of establishing effective global regulations and fostering international collaboration to manage AI’s societal impacts responsibly. From Pakistan, Federal Finance Minister Muhammad Aurangzeb participated in the forum and highlighted his government’s efforts for financial stability, sustainable growth and development and socio-economic progress.

The World Economic Forum, founded in 1971 by Klaus Schwab, has become a pivotal platform for global economic discourse, bringing together political leaders, business magnates and intellectuals to discuss pressing global issues. The forum serves as a conduit for shaping international economic policies, fostering partnerships and influencing development trajectories of both emerging and developed economies. Pakistan’s engagement with the WEF has been multifaceted, reflecting its aspirations for economic growth, foreign investment and global integration. The historical significance of the WEF for Pakistan lies in its ability to offer a stage for economic diplomacy, present the country’s economic vision and secure international partnerships essential for sustaining development amid domestic and geopolitical challenges.

Historically, Pakistan has participated in the WEF to attract foreign investment, enhance trade relations and project an image of economic stability. Successive governments have leveraged the annual Davos summit to engage with global investors, international financial institutions and policymakers. Pakistan has sought to utilise this platform to counter negative perceptions stemming from security concerns, political instability and macroeconomic volatility. The WEF provides Pakistan with an avenue to showcase its economic potential and highlight reforms undertaken to improve its business climate, such as efforts to ease regulations, promote digitalisation and improve infrastructure through initiatives like the China-Pakistan Economic Corridor. Over the years, WEF reports and indices, such as the Global Competitiveness Index, have played a crucial role in guiding Pakistan’s policy adjustments to align with international economic standards. With the advent of globalisation, Pakistan’s focus has shifted towards integrating itself into global supply chains, enhancing foreign direct investment (FDI) and advocating for trade liberalisation. The 2000s saw increased engagement as Pakistan attempted to rebrand itself as a destination for investment, particularly in the technology and energy sectors. The attendance at Davos often signaled to international markets the governments’ commitment to economic reforms and policy continuity.

In 2024, the then caretaker prime minister Anwar-ul-Haq Kakar emphasised Pakistan’s commitment to economic resilience and investment facilitation. His discussions with global financial leaders focused on securing partnerships in energy, agriculture and technology. This year, Finance Minister Muhammad Aurangzeb outlined the country’s strategic efforts to stabilise and grow its economy amid global and domestic challenges. He emphasised Pakistan’s commitment to economic reforms, structural adjustments and policy measures aimed at fostering a more resilient financial system. He underscored Pakistan’s engagement with international financial institutions to ensure macroeconomic stability and sustainable growth. In his effort to attract foreign direct investment, he reassured investors that Pakistan was making concerted efforts to address fiscal imbalances, improve tax collection mechanisms and streamline regulatory frameworks to enhance economic efficiency.

Historically, Pakistan has been unable to utilise the forum to secure breakthroughs such as solid and meaningful commitments from global corporate leaders to invest in Pakistan. Given our economic vulnerabilities, exacerbated by inflation, energy prices, lack of supportive infrastructure, fiscal deficits and climate change impacts, we have been unable to attract meaningful investments that could lead to long-term economic stability. Our engagements at WEF could have been more productive had we have prepared deliberative strategies reflecting our broad attempts to shift the narrative from crisis management to proactive economic planning.

Pakistan’s engagement with the WEF has been multifaceted, reflecting its aspirations for economic growth, foreign investment and global integration. The historical significance of the WEF for Pakistan lies in its ability to offer a stage for economic diplomacy, present the country’s economic vision and secure international partnerships essential for sustaining development amid domestic and geopolitical challenges.

A crucial dimension of Pakistan’s relationship with the WEF is its reliance on the forum’s insights and research to shape domestic economic policies. The Global Risks Report and other WEF publications serve as barometers for assessing Pakistan’s economic performance in a comparative global framework. Our policymakers need to better utilize these findings to calibrate economic strategies, such as prioritising climate resilience projects, addressing governance deficits and enhancing competitiveness. Furthermore, Pakistan also needs to utilise WEF to deepen regional cooperation, particularly with South Asian and Middle Eastern economies by fostering economic linkages beyond traditional bilateral trade agreements.

The WEF is an excellent opportunity to harness diplomatic maneuvering. In recent years, Pakistan has been unable to use the forum to engage with international donors, multilateral financial institutions and corporate leaders who influence global economic trends. In light of Pakistan’s engagement with the International Monetary Fund and the World Bank, the WEF serves as an auxiliary platform to negotiate financial assistance and development loans. There is a clear need for persistent effort to use the forum to highlight our broader economic restructuring goals, aimed at reducing dependency on foreign aid and transitioning towards self-sustained economic growth.

Pakistan’s engagement with the WEF intersects with its geopolitical positioning as well. The country’s strategic location, as a bridge between South Asia, Central Asia and the Middle East, should have been a recurring theme in its Davos diplomacy. Given the fact that the discussions at the forum often reflect Pakistan’s evolving relationships with global powers such as the United States, China and Gulf nations, Pakistan should have advanced its foreign policy agenda by emphasising its geo-economic position conducive to global connectivity and regional trade integration

Another critical dimension of Pakistan’s engagement with the WEF is its emphasis on climate change and sustainability. The country’s vulnerability to climate-induced disasters, such as floods and heatwaves, has brought climate financing and adaptation strategies to the forefront of its Davos agenda. The 2022 floods, which inflicted economic losses exceeding $30 billion, underscored the urgency of global support for Pakistan’s climate resilience initiatives. At the 2024 WEF, Pakistani officials advocated for increased investment in green energy, water conservation projects and climate-smart agriculture to mitigate the adverse effects of environmental degradation on economic stability. According to reports, 2025 is going to be a drought year. We are affected by a manmade crisis of global warming in the making of which we did not play a role. We need to highlight global environment justice efforts to seek greater attention to our national challenges such as food insecurity. This year, the finance minister did not address this issue at the forum.

Pakistan’s evolving digital economy has found prominence at the WEF, with growing recognition of its potential in fintech, e-commerce and IT services. The rise of Pakistani startups and the expansion of digital payment systems reflect a broader trend towards economic diversification. Pakistani representatives at Davos have increasingly emphasised the role of innovation and technology in fostering economic growth, seeking collaborations with global tech firms and venture capitalists to bolster the country’s digital ecosystem.

While Pakistan’s engagement with the WEF provides significant opportunities, challenges remain in translating discussions into tangible economic gains. The country’s complex regulatory environment, inconsistent policy implementation and governance constraints often hinder the realisation of investment commitments made at the forum. Additionally, geopolitical tensions, particularly those related to regional security and cross-border trade, pose further complications. The effectiveness of Pakistan’s participation in the WEF ultimately hinges on its ability to implement structural reforms, enhance institutional capacity and maintain policy consistency.

The writer is a professor of government at Houston Community College, USA. His book The Rise of the Semi-Core: China, India, and Pakistan in the World-System was published recently. He can be approached at suklashari@gmail.com