Munich Security Conference highlights global security issues

The Munich Security Conference has long served as a crucible for revealing uncomfortable truths. In 2026, it convened an unprecedented number of global leaders—more than 70—to grapple with the transatlantic relationship’s fraying edges and how security debates are inextricably linked to competitiveness, energy, technology, and supply chains.

For Germany, traditional expectations about predictable alliances, stable markets, and reliable crisis management are now under stress. Market shocks travel faster than institutions can adapt: from soaring energy prices and shipping costs to sudden cyber disruptions. These shifts have triggered a European wake-up call, urging the continent toward greater self-sufficiency and strategic resilience.

Germany’s priorities reflect this recalibration: first, strengthening European defence and readiness so deterrence is credible, and crisis response swiftens. Second, national security hinges on protecting energy systems, ports, logistics, and digital infrastructure against disruption. Lastly, a geoeconomic mindset requires reducing dangerous dependencies and diversifying supply chains to guard against trade being weaponized.

Chancellor Friedrich Merz succinctly encapsulated this logic: “Our power today rests on three pillars: our security, our competitiveness, and (European) unity.”

These recalibrations impact decisions that directly affect Pakistan. When the global order shifts from rules-based cooperation toward leverage, middle powers like Germany and Pakistan are the first to feel the consequences—through higher risk premiums, more volatile commodity prices, and increased financing costs.

Pakistan’s importance to this recalibration cannot be overstated: both countries depend on robust rules, predictability, and partnerships for their prosperity. As global dynamics tilt away from predictable alliances, middle powers like Pakistan must invest political attention and economic engagement where cooperation is trusted under pressure.

Trade remains the clearest transmission channel here: the European Union (EU) is Pakistan’s most significant export destination. The relationship significantly benefits from GSP+ preferences, ensuring that 85% of Pakistani exports to the EU enter duty- and quota-free status, thereby supporting jobs and export earnings while linking market access to governance and sustainability commitments.

In a world where companies are redesigning supply chains for resilience, Europe’s “de-risking” lens can have dual implications. If Pakistan is viewed primarily through the risk prism, capital becomes more expensive and buyers diversify elsewhere. Conversely, if seen as reliable, this dynamic can work in Pakistan’s favor.

This opportunity hinges on practical steps aligned with Europe’s filters: predictable regulation, efficient customs and port processes, energy reliability for industry, credible compliance and traceability, and safeguards protecting legitimate trade. These reforms make the economy more competitive, reducing perceived risk and lowering capital costs.

As these domestic reforms take hold, Pakistan’s economic success becomes a virtuous cycle: it further bolsters its place in Europe’s evolving partnerships. For European companies, the question shifts from “where is it cheapest today?” to “where will it remain viable under disruption tomorrow?”

A more discerning approach in Europe creates room for constructive cooperation moving forward. Germany and Pakistan can build targeted partnerships with measurable outcomes on standards, quality infrastructure, energy efficiency, industrial upgrading, or trade facilitation that reduces time and cost at the border. On mobility, joint action against smuggling networks paired with credible reintegration support ensures legal channels remain sustainable while making irregular routes less attractive.

Germany’s Munich point is simple yet profound: in a world becoming harder, partnerships must be sturdier. Europe’s recalibration will reshape how it engages globally, especially where economics and security intersect. For Pakistan, this moment isn’t about choosing sides but securing its interests amidst an evolving landscape where competitiveness, resilience, and reliability have become the most valuable currency.