Showing posts with label Foreign Policy. Show all posts
Showing posts with label Foreign Policy. Show all posts

Sunday, February 21, 2021

Imran Khan Government's Midterm Review: Economy and Foreign Policy

Imran Khan's government has completed about half of its 5-year term it won in 2018. What are its accomplishments? Where has it failed in terms of economy and foreign policy. 

Economy:

Imran Khan inherited a serious balance of payments crisis cased by flat exports and record high imports in 2013-2018 period under Pakistan Muslim League (Nawaz) government. while the PTI government was still dealing with it, the country and the world were hit by COVID19 pandemic that devastated the global economy. 

Pakistan's Trade July2020-Jan2021. Source: Arif Habib


The 2019 International Monetary Fund's bailout required the PTI government to significantly devalue the Pakistani rupee to make exports competitive, and to raise interest rates to slow down imports. These actions triggered inflation, particularly food inflation, as energy and fertilizer prices rose. 

Export Growth in South Asia. Source: Wall Street Journal

The global COVID19 pandemic hit Pakistan and the world while the PTI government was still trying to stabilize the economy. The global economy slowed down as a result of lockdowns imposed around the world to slow the spread of the novel coronavirus. It impacted South Asian economies but Pakistan was thankfully spared the worst of it. 
Pakistan Vehicle Sales 1H FY20-21. Source: Arif Habib



Now Pakistani economy is finally stabilizing and a strong recovery is underway. The recovery is led particularly by the construction and manufacturing sector as evident from double digit increases in cement consumption and large scale manufacturing growth. 

Cement Sales in Pakistan. Source: Bloomberg


Foreign Policy:

One of Pakistan's key foreign policy successes is the US-Taliban Peace Deal. But now there is uncertainty surrounding it with the inauguration of President Joseph Biden. Biden's election and the growing rivalry between US and rising China have changed the calculus in South Asia and the Middle East regions, impacting Pakistan. Former President Trump's erratic behavior has also contributed to it. 

Based on Biden's record as Obama's vice president, it is expected that the new US president will continue to support a stable Pakistan. A suggestion that has been made by former State Department officials Shumaila Chaudhry and Vali Nasr is for the US to take advantage of Pakistan's free trade deal with China by setting up value-added re-export units in the country. 

Please watch this discussion with Faraz Darvesh as host and Dr. Owais Saleem, Sabahat Ashraf and Riaz Haq as panelists:

https://youtu.be/Cse9j72H1cU



Related Links:













How "Illiterate" Are Pakistan's "Illiterate" Cell Phone Users?



Wednesday, January 4, 2012

US Signals Major Policy Shift in Afghanistan

"United States cannot kill, jail or occupy all of its adversaries."
Bill Clinton 2003

After years of unsuccessfully trying to kill or jail all of the Taliban and occupy Afghanistan at great cost to the US taxpayers, and after failing to persuade Pakistan to attack and kill all of the Taliban, President Obama is finally seeing what Bill Clinton saw more than eight years ago: The Obama administration is hinting at doing less killing and more talking. The balance of power in the White House is clearly shifting from the hawks at the CIA and the Pentagon to the diplomats at the State Department in Washington. Here are some of the signs of this long-delayed policy shift:

1. The US is welcoming the opening of the Taliban embassy in Qatar to begin formal negotiations to end the Afghan conflict. After resisting it first, Afghan President Hamid Karzai has also given it a lukewarm reception, according to NY Times.

2. The names of the Taliban leaders, including that of Mullah Omar, have been removed from the FBI's Most Wanted terrorists list. A UN panel removed 10 Taliban along with 35 Al-Qaeda members and affiliates from its sanctions terror list.

3. Vice President Biden has said publicly that the Taliban is not "our enemy". He added that the U.S. is supportive of a reconciliation process between the Afghan government and the Taliban even if it's questionable whether a reconciliation is possible.



4. The US drone strikes have seen longest pause since the November border incident that resulted in the tragic killings of 24 Pakistani soldiers by the US military, and the US-Pakistan relations plunging to a new low. The US supply routes to Afghanistan through Pakistan are still closed, raising doubts about the future of continued NATO presence in the region.

5. The State Department is talking about restoring full cooperation with Pakistan as early as possible in 2012. “We desire a closer, more productive relationship with Pakistan both militarily and as well as politically. And we’re constantly working to build that closer cooperation,” the State Department spokesperson said recently.

Pakistanis have consistently pressed the US for a long time to end its Afghan policy of "fight and talk", and to focus more on talking and less on fighting. Instead of seriously listening to the Pakistani advice, the Obama administration, supported by the western media, has been accusing Pakistan of playing a double game, and urging it to declare war with all of the Taliban.

It's not clear what the final trigger was for the change of heart in Washington. Could it be the highly symbolic killing of Osama Bin Laden in May, 2011 that quenched the thirst for revenge for 911 attacks? Or the rapid deterioration of relations with Islamabad, a key ally in the US war in Afghanistan? Or a belated recognition of the futility of war after spending hundreds of billions of dollars with no end in sight? Is it the continuing economic slump in the United States forcing deep budget cuts at the Pentagon? It could be any or all of these reasons for the policy shift in US history's longest war.

An earlier shift in US policy toward reconciliation would have saved thousands of American lives and tens of thousands of lives of innocent victims in both Afghanistan and Pakistan; but the shift is still welcome. It's better late than never.

Related Links:

Haq's Musings

US Military Undermining US-Pakistan Relations

US Cost of Afghan War at $50 million per Dead Taliban

Is US-Pakistan Military Confrontation Inevitable?

Seeing Bin Laden's Death in Wider Perspective

Who Are the Haqqanis?

Military Mutiny in Pakistan?

Can US Aid Remake Pakistan?

Jihadis Growing in Tenth Year of Afghan War

Saturday, November 14, 2009

Obama's Retreat in Mid East and South Asia

"America is not - and never will be - at war with Islam," declared Barak Hussein Obama in a June, 2009 speech in Cairo that was billed as his administration's attempt to mend fences with the Muslim world. The speech was received enthusiastically by many Muslims, and it raised hopes of fundamental changes in US policies in the Middle East and South Asia.

Just a few months later, however, considerable doubts are growing in the Muslim world about President Obama's resolve to effectively and evenhandedly address the long-standing territorial disputes confronting the peoples of the Middle East and South Asia. The hopes for course correction in US policy on Kashmir and Palestine are fading fast with the Obama administration's dramatic retreat on both fronts.

After repeatedly emphasizing that Kashmir issue between India and Pakistan is inextricably linked to Afghanistan crisis, President Barack Obama backtracked on the need for resolving Kashmir when the issue was dropped from special envoy Richard Holbrooke's mandate under pressure from Indian lobby in Washington. According to Washington Post, India managed to "prune the portfolio of the Obama administration's top envoy to Pakistan and Afghanistan, Richard C. Holbrooke -- basically eliminating the contested region of Kashmir from his job description".

In run-up to the last US presidential elections, it was widely known that Obama believes the situation in Afghanistan is inextricably linked to the Kashmir dispute between India and Pakistan. “The most important thing we’re going to have to do with respect to Afghanistan, is actually deal with Pakistan,” candidate Obama said in an interview on October 30, 2008 with MSNBC. “And we’ve got work with the newly elected government there in a coherent way that says, terrorism is now a threat to you. Extremism is a threat to you. We should probably try to facilitate a better understanding between Pakistan and India and try to resolve the Kashmir crisis so that they can stay focused not on India, but on the situation with those militants.”

Obama reiterated his emphasis on Kashmir in a December 7, 2008 interview on NBC's Meet The Press. He said, "...as I've said before, we can't continue to look at Afghanistan in isolation. We have to see it as a part of a regional problem that includes Pakistan, includes India, includes Kashmir, includes Iran. And part of the kind of foreign policy I want to shape is one in which we have tough, direct diplomacy combined with more effective military operations, focused on what is the number one threat against U.S. interests and U.S. lives. And that's al-Qaeda and, and, and their various affiliates, and we are going to go after them fiercely in the years to come."

The story of betrayal is not much different in the Middle East where the Obama administration first insisted on total freeze on Israeli settlements only to retreat after tremendous pressure from the powerful Israel lobby in Washington. In fact, Hillary Clinton not only gave in to the Israel lobby, but described as "unprecedented" Bibi Netanyahu's hollow assurance to "restrain" settlement growth. The immediate effect of this about-face in US policy has been the decision by President Mahmoud Abbas of Palestinian Authority to not seek re-election, a clear signal that the Mr. Abbas, considered a "reliable partner" for peace, feels betrayed by the Americans. This betrayal will only serve the strengthen the extremists on both sides of the Israel-Palestine divide.

Unfortunately, the domestic politics in Washington have trumped good, well-thought policies and plans by the well-meaning Obama team in both of the extremely dangerous regions of the world.

It is well known that the India caucus, consisting of pro-India members who receive campaign contributions from the Indian lobby, is one of the largest and most active in the US Congress. To ensure their loyalty, the Indian lobby is using both carrots and sticks. Following the Israel lobby's hardball methods, USINPAC helps raise funds for those who support pro-India policies, and threatens to unseat legislators such as Indiana Rep. Dan Burton who are sometimes critical of India. Since its inception, USINPAC has launched campaigns to neutralize Rep. Burton and others who do not do the bidding of the Indian lobby in US Congress. In 2005, USINPAC organized support in Congress to successfully prevent Rep. Burton from becoming the top Republican on the Foreign Relations Committee. In 2003, USINPAC organized a similar campaign to successfully prevent Rep. Burton from becoming the Chairman of the Foreign Relations Subcommittee that had jurisdiction over India.

Pakistani Ambassador Hussain Haqqani recently told a US publication that the Indo-U.S. relationship is robust and multifaceted. He mentioned that 26 members of the Obama administration are Indian-Americans. Some of them, such as Sonal Shah, have had known ties with the extremist Hindu Sangh Parivar. An Indian-American Rajiv Shah has been named by Obama as the head of US Agency for International Development (US AID). When confirmed, Mr. Shah will be deeply involved in handling aid to Pakistan under Kerry-Lugar bill.

Taha Gaya of Pakistan's nascent Washington lobby PAL-C explained to the BBC recently that on some issues the Indian and Pakistani lobbies had sometimes cooperated. But the Mumbai attacks last year changed all that.

"When Mumbai happened," Gaya told the BBC, "we saw a resurgence of participation from the older generation of Indian-Americans - those who had grown up in India" - who, he claimed, reverted to what he described as "the old more negative dynamic".

There is inevitable conflict between the two lobbies. The recent Kerry-Lugar aid bill for Pakistan is a good example of this conflict. Pro-India groups lobbied hard for all sorts of conditions to be included in the bill.

Sanjay Puri of USINPAC, the India Lobby, was part of this campaign. This was not about supporting India's interests, he claims, and neither was it motivated by hostility towards Pakistan.

It's clear that Indian-Americans have taken a page from the successful Jewish-American playbook. Not only are they active in the executive branch and on Capitol Hill, they are also being increasingly seen in the powerful financial services sector, high profile US media, major US universities, Washington think-tanks and other places which shape US public opinion and policies. And they are exercising rising influence on South Asia policy in the same way that the Jewish-Americans have on the US position in the Middle East conflict. The rising Indian influence in Washington and close multi-faceted collaboration between India and US are seen as a big threat by Pakistanis.

Indian lobby is collaborating with the American corporate interests and the pro-Israel Jewish-American lobby to gain power in the United States, and influence policies and legislation in Washington. On US policies toward Pakistan, the Indian lobby has already proved its power twice recently: the passage of US-India nukes deal and Kerry-Lugar aid strings. And the Indian lobby's strength is only growing.

Given the growing strength of both Indian and Israeli lobbies in Washington, the lack of progress on Palestine and Kashmir is going to significantly hurt all three nations in the India-Israel-US axis. The Americans will not be able to play the role of an honest broker in either region, unless the Israelis and Indians themselves recognize the consequences of their misguided and self-destructive policies in the Middle East and South Asia. At the same time, the growing Mid-East like US pre-occupation with the major unresolved and festering issues in two regions of the world is going to hurt America's interests abroad, with China seizing the initiative in a rapidly changing world.

Related Links:

Haqqani on US-India Ties

Holbrook "AfPak" Mission

India Lobby's Success in Holbrook Mandate

Obama Ignores Sonal Shah's VHP Ties

Obama on Kashmir

India Washington Lobby Emulates AIPAC

China's Checkbook Diplomacy

Pakistanis See US as Biggest Threat

US-India Nuclear Deal

India-Israel-US Axis