America still commands extraordinary financial and military power, while China has built deep influence through factories and supply chains. From Karachi Port, the two architectures of power can appear inside the same trade transaction. From I. I. Chundrigar Road, Power Looks Different Karachi Port sits about a kilometre from my office on I. I. Chundrigar Road. The distance is short enough for Pakistan's main financial district and its great maritime gateway to feel like parts of the same machine. Ships bring physical goods into the city; nearby banks move the money that pays for them. I find that proximity useful when I think about China and the United States. Foreign-policy debate usually directs my attention towards aircraft carriers, sanctions and military alliances. From Karachi, another form of power keeps intruding into the argument because so many physical products moving through Pakistan's economy now connect, somewhere in their supply chain, to Chinese industrial...
Pakistan keeps becoming strategically important, but its institutions struggle to convert geopolitical value into permanent economic strength. The Makkah defence agreement reflects Pakistan’s rising geopolitical value, while continuing IMF obligations expose a harder challenge: converting strategic importance into lasting economic and institutional power. A few days ago, I placed two documents beside each other on my screen in Karachi. One concerned the Makkah Joint Defence Agreement linking Pakistan with Saudi Arabia and Türkiye. The other came from the IMF and showed Pakistan still carrying billions of SDRs in outstanding Fund credit. Pakistan's Conversion Gap appeared in the space between them. The documents measure different things. I would never use IMF borrowing to deny Pakistan's military capability, nor does a defence agreement tell me whether an economy can finance itself. Their coexistence raises a harder question: why has Pakistan repeatedly acquired extraordinary...