Cover Story 
 

Cover Story

Asian Century

Pakistan can be a key player in Asia by adopting strategic policies and fostering regional cooperation.

By Dr. Urs Lustenberger & Dr. Ying Zhang | May 2025


SwissCham Asia (www.swisscham.asia) has often commented on the development of many Asian countries. As a commercial chamber, our mission is to facilitate and enhance bilateral relations between Asia and Switzerland by promoting trade, investment, and collaboration across various sectors. SwissCham Asia aims to support businesses and stakeholders through expert insights, strategic partnerships, and innovative solutions. One of our hallmark publications is the Asia Brief (https://www.swisscham.asia/asiabrief) with Singularity Academy (www.singularityacademy.ch), crafted to give Swiss-Asian business stakeholders a comprehensive understanding of Asia’s rapidly changing economic and business landscapes. This region presents a dynamic blend of challenges and opportunities crucial for Swiss businesses and their global counterparts.

Asia, home to more than half of the world’s population, has undergone a profound transformation in recent decades. Once seen as a region plagued by economic underdevelopment, political instability, and social challenges, Asia has emerged as a global powerhouse. Its rapid economic growth, technological advancements, and geopolitical influence have reshaped the global landscape. For countries in South Asia, these changes present both opportunities and challenges. This article explores the transformation of Asia and its international impact, focusing on how Pakistan can navigate this evolving landscape.

Economic Transformation
Asia’s economic rise is one of the most remarkable stories of modern history. Countries like China, India, South Korea, and Japan have emerged as global economic leaders. Imagine a war-torn Japan after World War II and a completely devastated Korea after the Korean War. Who would have thought they could emerge as the early harbingers of this remarkable economic turnaround? The transformation of the entire continent, however, was dependent on the most populous economies of Asia, China, and India coming to the fore. But let us not forget the rest of the Asian Economies. They all have seen sustained growth throughout the decades since World War II. Industrialisation, globalised trade, and digital innovation were the big buzzwords accompanying this transformation. Let us hope the latest regression into a tariff-riddled new world economic order will not stop this transformation altogether.

China, the world’s second-largest economy, has played a pivotal role in Asia’s economic resurgence. Through its Belt and Road Initiative (BRI), China has expanded its economic footprint across continents, investing in infrastructure projects that connect Asia with Africa and Europe. For South Asian countries like Pakistan, the China-Pakistan Economic Corridor (CPEC) serves as a testament to this path of transformation, promising economic development and regional connectivity. India, with its burgeoning tech industry and strong consumer market, has become a hub for global innovation. Its economic policies have attracted foreign investment, and its skilled workforce has established it as a software and digital services leader. Similarly, Japan and South Korea have remained global leaders in technology and manufacturing, exporting automobiles, electronics, and robotics to the world.

Technological Advancements
Asia has become an early adapter of the most recent technological advancements brought to the markets. Its generally youthful population has been receptive to new gadgetry. The digital revolution has accelerated Asia’s growth, making it a centre for innovation. China leads in artificial intelligence, e-commerce, and green energy technologies, with companies like Alibaba, Huawei, Tencent, and BYD dominating global markets. With firms such as Infosys and Tata Consultancy Services, India’s IT sector has positioned the country as an outsourcing and technology development hub. Early developments in Japan and then South Korea have paved the way for early adaptors from China and India.

Asia has made significant strides in space exploration. China’s space program has achieved milestones such as the Chang’e lunar missions, while India’s Chandrayaan and Mangalyaan projects have demonstrated the country’s growing expertise in space technology. South Korea and Japan continue to lead in robotics and semiconductor production, key areas in the global digital economy.

For Pakistan, these technological advancements present an opportunity to learn from regional successes. Investment in science and technology and policies that encourage startups and innovation could help Pakistan integrate into the global digital economy.


Geopolitical Shifts
Asia’s rise has also altered global power dynamics. China’s increasing influence has challenged Western dominance, particularly in trade and international institutions. The United States’ “Pivot to Asia” strategy reflects its recognition of Asia’s growing geopolitical importance, leading to tensions between major powers, particularly between China and the U.S.
India has also positioned itself as a key player in global geopolitics. Meanwhile, Russia’s increasing engagement with Asian economies, particularly China and India, highlights the region’s central role in global affairs.

For Pakistan, the rise of Asia offers avenues for economic growth, technological progress, and geopolitical engagement.

It is too early to say how the introduction of the rose-garden tariffs will influence the global trade order. For a long time, it was apparent that the US was unhappy with the status quo. Their abandonment of a functioning judicial body at the WTO was an early signal. The introduction of the tariffs was just the latest expression of this unhappiness. What will be next is hard to predict. Options range from a gradual reduction of the tariffs to the deployment of military might.

Pakistan, situated at the intersection of South Asia, Central Asia, and the Middle East, must navigate these geopolitical shifts carefully. Strengthening diplomatic ties with regional powers while maintaining strategic partnerships with global actors is essential for ensuring national security and economic prosperity. Like many other players on the world stage, the best option seems to be a wait-and-see strategy.

Cultural Influence and Soft Power
Asia’s cultural influence has expanded globally through cinema, music, fashion, and literature. South Korea’s K-pop and film industry, China’s growing film market, and India’s film industry have captivated global audiences. Asian cuisine, traditions, and philosophies continue to shape global lifestyles, demonstrating the region’s soft power.
For Pakistan, enhancing its cultural presence through media, tourism, and diplomacy can help project a positive global image. For example, showcasing Pakistan’s rich history, literature, and heritage can foster deeper global engagement and economic benefits through tourism and creative industries.

Challenges and the Way Forward
Despite its success, Asia faces challenges such as income inequality, environmental degradation, and political tensions. Climate change poses a significant threat, with many Asian countries vulnerable to rising sea levels and natural disasters. The COVID-19 pandemic exposed weaknesses in healthcare systems and supply chains, underscoring the need for resilience in public policy.
For Pakistan, embracing sustainable development, investing in education, and strengthening governance structures are crucial for benefiting from Asia’s transformation. Leveraging regional partnerships, particularly in trade and infrastructure development, will ensure long-term growth.

Asia’s transformation has reshaped the global order, presenting both opportunities awnd challenges for countries worldwide. For Pakistan, the rise of Asia offers avenues for economic growth, technological progress, and geopolitical engagement. By adopting strategic policies and fostering regional cooperation, Pakistan can be a key player in the Asian century. The future of Asia is one of innovation, resilience, and collaboration, and Pakistan must actively participate in shaping this dynamic new world order. Aggressive retaliation against the recently introduced rosegarden tariffs does not seem the right answer. Instead, it would seem preferable to strengthen local and regional trade systems to seek shelter from unwanted tariffs.

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