Pakistan s terrorism support is landing it in isolations Its debt trap may make it a vassal state

 

The Pak Government is faced with financial instability. Prime Minister Imran Khan has found that his country's debt burden has risen to Rs. 28 trillion. One of the causes of this debt commitment is jihad which is a tool of the Pak state policy. This deters non-Chinese investors from entering Pakistan. The amounts the Pak government has been spending on promoting terrorism has ruined its economy.

On September 6 last, the United States called on Pakistan to ensure that its territory is not used to launch terrorist attacks on other countries. The American Government added that action needs to be taken against terrorist groups, including al-Qaeda, Islamic State, Lashkar E-Taiba, Jaish-e-Mohammad, Hizb-ul-Mujahideen, the Haqqani Network, Tehrik-e-Taliban Pakistan, D. Company and their affiliates.

Pakistan has been the political bed fellow of the United States for the last 71 years. Yet, that country has been compelled to cancel $300 million aid to Pakistan because of the latter's inaction against terrorist groups. With the suspension of these amounts, the amount of the Coalition Support Fund, withheld by America, this year, stands at $800 million. These financial cuts are causing difficulty to Imran Khan. He has reduced many of his own perks as also of other VVIPs and VIPs.

To assuage the situation, the Prime Minister has reconstituted the economic advisory panel. He has, also, secured the services of foreign economists to work in this panel. Earlier the Pak economic advisory panel used to headed by the Finance Minister but, in view of the cure financial difficulty, the new panel will be under the P Minister. The immediate challenge for the Government to arrange finances to fill the gap that is arising due to higher outflows than estimated inflows. Pakistan's current account deficit stands at $18 billion. Its foreign currency reserve are about $10 billion. This amount is enough to cover only two months of imports.

The International Monetary Fund is showing concern about Pakistan's debt problem. The country is finding it difficult to secure a bailout. If Pakistan fails to secure the desired

 

bailout, it has no way out but to approach China for more economic aid. But the Chinese aid has created a danger psychology as many countries are apprehending that these nations are becoming a prey to the Chinese debt trap. The party of Pakistan's new PM has vowed more transparency amidst fears about the country's and repay Chinese loans related to the multi-billion-dollar Pakistan Economic Corridor.

Last month, Malaysia's Prime Minister M Mohammad said that his country will shelve three c backed projects, including a $20 billion railway Maldives opposition leader Mohamed Nasheed cau that China's actions in the Indian Ocean archipelago ar to land grab and colonialism, with 80% of its debt held hi Beijing. Sri Lanka has paid a heavy price for being highly indebted to China. Last year, the Sri Lankan Government had to grant a 99-year lease on a strategic port to China because of the Sri Lankan inability to repay loans for the project. Chinese projects in developing countries help China to unload its industrial overcapacity and in securing raw materials.

Concerns have developed about the sustainability of the Chinese debt in eight countries which are receiving Silk Road funds. These are Pakistan, Djibouti, Maldives, Mongolia, Laos, Montenegro, Tajikistan and Kyrgyzstan China's loans are being quoted in dollar terms, but, in reality, China is lending tractors and engineering services and seeks return in hard currency.

Pakistan's terrorism support programme has kept it out of bounds for others. This leaves it with only China. If Pakistan continues to allocate funds for terrorism promotion, it will face greater isolation and may have to become a Chinese vassal state.

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Courtesy:- Jagannath Dhar  " and Koshur Samachar September ,2018