Pakistan's economic development undergoes multiple challenges due to weak economic planning, misplaced priorities, and poor economic performance. Despite having a longstanding engagement with the major economies and international financial institutions, Pakistan has not been able to derive full benefits due to ineffective planning and policies. Domestically, this economic predicament is attributed to inadequate governance structures and poor economic policies while externally, it is the result of overemphasis on geopolitical objectives in foreign policy pursuits. As the economic capacity of a state plays a central role in determining its global influence and ensuring its security and survival. This paper draws policy lessons for prioritizing the economic agenda in Pakistan's foreign policy based on the country's economic relations with major actors including the US, China, and the EU. It provides recommendations for optimizing economic dividends with respect to trade, investment, and business-friendly relations with other countries.