Pakistan

EconomyEditor's PickWorld

Vicious Cycle of Economic Slowdown in South Asia

Sri Lanka and Pakistan are dealing with serious economic crises. Apart from serious domestic issues like shortage of essential commodities, and power cuts, both countries have meagre foreign exchange reserves. The excessive dependence on China is the main reason for the increasing debt trap. Both countries also had to seek International Monetary Fund (IMF) assistance despite domestic opposition against the conditionalities imposed by the IMF. It is important for South Asian countries to work towards more robust economic linkages within the region and to shed dependence upon external assistance. 

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PoliticsWorld

Pakistan’s China-USA Policy: De-hyphenation or Zero Sum?

In order to put its economy back on the rails, Pakistan needs to maintain good relations not just with China, but also put its bilateral ties with the US back on the rails. Given the deterioration in Washington-Beijing ties, it remains to be seen if Islamabad can manage the same. While Pakistan, like many other countries, has said that it does not want to be pushed into making any choices, it remains to be seen whether this will be possible in the changing geopolitical landscape.

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PoliticsWorld

Blinken-Zardari Meet: A Tightrope for Pakistan with USA and China

During the May 18 meeting, both Blinken and Bilawal Bhutto Zardari focused on strengthening not just US-Pakistan security ties but also economic linkages. The US could nudge IMF towards imposing less stringent conditionalities on Pakistan in order to prevent political instability. The US remains an important destination for Pakistani exports and this is one of the reasons why the business community in Pakistan, along with the Pakistan army as well as the political class, was not particularly comfortable with former PM Imran Khan’s rhetoric against the West, in general, and the US, in particular. There is a growing realization in Pakistan that while ties with Beijing may be important, it can not afford to allow relations with the US to deteriorate any further.

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Editor's PickWorld

Political Turmoil and Strained Ties with the West: A Double Whammy for Pakistan’s Economy

Apart from Pakistan’s army and opposition political outfits, the business lobbies in Pakistan have been flagging the point that strained ties with the US and the EU will have an adverse impact on Pakistan’s economy. While the Pakistan Army Chief, Gen. Qamar Javed Bajwa, had alluded to the importance of Pakistan’s ties with the US in his address on April 2, 2022, Pakistan’s business has expressed its apprehensions with regard to the current political situation and the potential souring of ties with the West, in general, and the US, in particular. The current economic crisis in Sri Lanka also underscores the pitfalls of being excessively dependent upon China and the need for an astute foreign policy.

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