Every generation in its time inherits a different economic question. The 19th century is defined by industrialisation; the 20th is marked by production, trade and globalisation.

The 21st century brought us a new paradigm: not how nations create wealth, but how they preserve, multiply and protect their wealth in times of geopolitical rivalry, technological disruption and climate risk. Economic statecraft focuses on the disciplined coordination of public institutions, national capital and strategic policy to create, protect and maximise national wealth across generations.

It differs from economic management because it prepares nations for tomorrow's opportunities and risks, while economic management primarily addresses today's problems. Under economic statecraft, fiscal policy, financial markets, industrial strategy, technology and national security are not considered separate disciplines but interconnected instruments of national power.

Nations do not prosper because they have abundant natural resources, nor do they disappear because they run out of wealth; all depends upon the quality of institutions that govern their economic management. From a historical perspective, modern public finance was pioneered by the Dutch Republic; credible fiscal institutions and deep capital markets laid the foundations of Britain's Industrial Revolution; through sophisticated financial markets, the US transformed private enterprise into global economic leadership.

In recent times, countries with different histories and resource endowments - Singapore, South Korea, Norway and the UAE - have achieved extraordinary success through disciplined institutions, efficient capital allocation and long-term policy continuity. Sustainable prosperity is eventually an institutional accomplishment.

The parameters of the global economy are being reshaped once again. Trade, technology and investment between the US and China are redefining strategic competition.

This is reshaping supply chains worldwide, which are increasingly organised around resilience as much as efficiency. Artificial intelligence is another important factor transforming productivity; digital finance is constantly reshaping financial systems; and investment decisions and sovereign borrowing are heavily influenced by climate considerations.

Sovereign investment has also become an instrument of foreign policy, with states increasingly positioning sovereign wealth funds, development finance institutions and export credit agencies to secure technology, energy security, critical minerals and strategic partnerships. Economic strength today rests on two important factors: growth and institutional capability.

Pakistan has the advantage of a strategic geopolitical location. It sits at the crossroads of South Asia, Central Asia, the Middle East and China; Pakistan has strategic geography, entrepreneurial talent, abundant resources, and a youthful population.

These changes present both a challenge and an opportunity for us; however, they will create opportunity only if institutions can convert national potential into lasting economic strength. Modern economic statecraft rests on seven mutually reinforcing pillars: the first is the nation's sovereign finance.

The national balance sheet must include national assets and liabilities, not just annual budgets and public debt. Norway transformed petroleum revenues and wealth into one of the world's largest sovereign wealth funds, while Singapore utilised strategic financial management to set a global benchmark.