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Nepal trusts India much less than China

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Like Pakistan, Sri Lanka, and Bangladesh, Nepal is also, in recent years, tilted towards China, especially for economic, rather than military or even strategic reasons although all of them have made any collative effort on any regional or international issues.

Nepal, the landlocked country, which is surrounded on three sides by India and China on one side over the Himalayas, depends on neighbors for its prosperity and also diversifying the sources of key supplies was very important for the successful conduct of its policies. Nepal is trying to find a way to ensure manageable risk in terms of resources it gets from other countries.

Extra pressure from New Delhi forced Nepal to move towards China.

Constantly tormented by the necessity of pursuing a neutral policy to effectively balancing between its immediate but antagonistic neighbors China and India, Nepal has been striving to figure out how it is related at multiple levels to both countries.

China and as well as Indian exerts tremendous influence on Nepal to toe their lines however, Katmandu is keen to be a partner of Beijing. While China is a UN veto power and world economic power, India is an emerging economy with its own limitations.

However, Hinduism playing a mediating factor, India has extensive political and economic influence over Nepal and thus far it provides much of Nepal’s supplies. In 2015, India withheld supplies, especially fuel, to the country after the devastating earthquake by blocking traffic because of a political dispute. Here Beijing stepped in and supplied fuel along the mountainous routes and became a trusted partner.

Rise of leftism

A Left parties’ alliance formed a new government in Nepal after a landslide victory, seen as a triumph of China over India regarding influence in Kathmandu, with pro-Chinese nationalist leader K.P. Sharma Oli expected to be prime minister. The alliance has an ideological affinity with communist China. Its top leaders, Oli and Pushpa Kamal Dahal, both ex-prime ministers, also have a personal rapport with top Chinese and party officials.

Leaders of the coalition in Katmandu said the new government will launch five or six megaprojects aimed at spurring development and job growth, including revisiting the Chinese company-funded Budhi Gandaki dam project, which was cancelled on the eve of the election.

After the elections, Oli visited a border point with Tibet where a trans-Himalayan railway project is under review, further indicating future collaboration with China. Oli pledged to bring in Chinese investment for key infrastructure projects, and to return a US$2.5 billion hydropower project to China’s Gezhouba Group, after the current government scrapped the deal citing contract “irregularities”.

While Chinese communist ideology seems to be close to Nepalese political and intellectual classes, India under BJP government tries to  use Hindu religion to exert  more influence the on the Nepalese mindset than China.

Nepal’s newly elected Left Alliance is not doing Beijing’s bidding, but seeks to balance relations between China and India to promote economic growth and political stability. The sweeping victory of the Communist CPN-UML and Maoist Party alliance in Nepal’s election this month has raised alarm bells. The primary concern in the international press seems to be that a communist government will allow China a greater role in a region India sees as its backyard.

Earlier, the centrist Nepali Congress-led incumbent government played a role in slowing Beijing’s economic advances in Nepal. Not one project has yet been pursued under the “Belt and Road Initiative”, eight months since a framework agreement. Breaking with the tradition of visiting India first upon taking office, Dahal chose China as his first port of call in August 2008. Oli signed a slew of deals, including on transport and transit, when he arrived in Beijing as Nepal’s leader in March 2016. These treaties not only ended Nepal’s sole dependency on India for trade but also diversified the Nepalese market for petroleum imports, crucial for a landlocked nation that has faced three economic blockades by India.

Once considered close to New Delhi, Oli became vocal against India when it pressured Nepal over its constitution in September 2015, then imposed a five-month blockade, and tried to bar Oli from becoming prime minister. But, he is not against seeking Indian investment for development. No government in Nepal can ignore one neighbour at the cost of another. Nor can it afford sole dependency on either.

With China surpassing India on the list of Nepal’s largest donors and investors, India’s unease has deepened. The problem is India still sees Nepal as its “backyard”; it welcomes Chinese investment but expresses deep suspicions when it comes to its neighborhood.

There is speculation, mostly from Indian sources, that China has been pulling the levers behind the scenes to help the two major left parties come together. Western media have repeated the claim, with the alliance depicted as a pro-China force and Chinese activities held responsible for India’s diminishing influence in Nepal.

If India’s traditional dominance in Nepal has waned, it is more because of India’s reckless diplomacy and it new hate politics. After India imposed an effective blockade against Nepal in 2015-16 for refusing to write a constitution on its terms, Nepal was cut off from fuel and essential supplies for more than five months. Nepal has since looked north for development and diplomatic balance and China readily obliged its red neighbor.

India may not accept developments in Nepal as the aspirations of a landlocked, sovereign neighbour to diversify its trade, transport and transit dependencies.  India’s clout would not count greatly if it continues to try to reverse the logical trend but on the contrary would only help steer China’s speedy footprints in Nepal.

But India must honour its earlier infrastructure commitments to Nepal, while admitting that China is a reality, not a choice, for Kathmandu.

Logic

It is geographic logic that geared Nepal towards the south but economic and geopolitical logic means it now also engages China. There is now a consensus across the political spectrum on the need to end Nepal’s exclusive southern orientation and develop better trade and transport links with China.

Study of China and its language are becoming popular in Nepal. The students of Nepal are also taught about contemporary China, including the government’s claim that it is the home of the “four great new inventions”, including shared bicycles and high-speed railways. The number of Chinese tourists travelling to Nepal is also swelling, rising 20 per cent in 2016 to 104,000, according to figures from the Nepal Tourism Board. The sharp rise has coincided with an increase in the number of Chinese businesses in Kathmandu, including hotels and restaurants in the so-called Chinatown in the city’s Thamel district.

Since opening in 2015, Nepal has organised dozens of events promoting Chinese culture. In fact, the Classrooms have sparked controversy in some countries because of their links to the Chinese government, and the perception that they support Beijing’s political objectives and fail to tackle sensitive topics. There are more than 1,000 such classrooms in primary and secondary schools around the world.

While China’s cultural clout in Nepal lags far behind that of India – with which Nepal shares a 1,700km open border – opportunities for Beijing to shift that balance were given a huge boost when Nepal’s Communist alliance, which is seen as friendlier to China, secured a landslide election victory.

Totalitarian China has restrictions placed on religions, especially Islam and controls over the internet and blocks many websites which might carry content that is religious and not exactly critical of the ruling Communist Party – including Google and Facebook – but also religious contents.

Political economy

The left win in Nepal was good news for China, given Nepal’s strategic location as a buffer with India and proximity to Tibet, an autonomous region of China with lingering tensions over its sovereignty.

Nepal’s communists have been adherents of the market economy since the establishment of democracy in 1990 and many leaders have close relationships with India. Most domestic forces have sought help from India and China to gain political leverage and both countries have attempted to influence political processes. Their involvement is as effective as local dynamics allow. No country wields absolute power over politics in Nepal.

China is Nepal’s largest foreign investor, and in the past financial year alone has invested 8.36 billion Nepalese rupees (US$81.89 million) in the country, an increase of almost 35 per cent from the year before, according to Nepal’s Department of Industry.

More than US$80 million of investment are helping Beijing to win hearts and minds in its tiny, but perfectly placed neighbour Nepal. Much to the annoyance of New Delhi, Beijing has poured huge sums of money into infrastructure projects in Nepal – a landlocked nation with China to its north and India to its south – under its trade and infrastructure development plan known as the “Belt and Road Initiative”.

The impact of Chinese investment in Nepal is visible in its roads and motorways, hydroelectric projects and railways, as well as the rebuilding projects launched after the devastating earthquake of 2015 that left more than 9,000 people dead. At the entrance to a project, partly funded by Beijing, to restore a tower in front of the old royal palace in Durbar Square, are the flags of both Nepal and China.

China has been making strenuous efforts to increase trade with Nepal. At present, China-Nepal relations are developing at the fastest pace we’ve seen,” said Yu Hong, Chinese ambassador to Nepal. Nepal’s closeness to China, expected to deepen under its New Leftist government, is just a sovereign nation’s wish to secure its interests and India should accept it as such.

In fact, the regional superpower China helps Nepal overcome it’s over dependence on India by providing those resources that come from India to the former kingdom of Himalayas. Nepal ended its long dependency on India for internet access recently by opening a fibre optic link to China. Nepal’s information minister Mohan Bahadur Basnet inaugurated the link across the Himalayas at a ceremony in the capital, Kathmandu. Previously, all internet connections in the landlocked country came via three access points in its only other neighbour, India through the cities of Bhairahawa, Biratnagar and Birgunj in southern Nepal.

The new internet line provided by China Telecom Global extends from Kathmandu to the border point Rasuwagadhi into the Tibet region. It comes after a coalition of two communist parties that are considered pro-China won Nepal’s election last month. The Nepal line is connected via Hong Kong bandwidth, which is not restricted by the infamous “Great Firewall”. The link was scheduled to be up and running by the middle of last year but it was delayed due to the difficulties of working at high altitudes above 4,000 metres.

Work on a communications link to China was finished in December 2014, but it was completely destroyed in a devastating earthquake in April 2015. A land transport route through the Tatopani border point to China is still closed.

Chinese influence can be seen across Nepal, Beijing still has some way to go, especially in the area of people-to-people relations, which are still not sufficient. Cultural relations and the people-to-people relations are the vehicle for strengthening bilateral relations

This visible presence is a concern for India, which regards China as a strategic competitor and views the influx of Chinese money with a geopolitical edge. There are also perennial concerns over China’s soft power regarding sovereignty

Helplessness

Any country would like to have full and complete sovereignty and freedom to decide its course without any pressure or force from any other big nation. Nepal feels for that ambiguity and inability. .

Nepal is pursuing a long history of trade and cultural connection with China that was broken after the British incursion. What the India/West axis sees as Nepal being breaking away from its fold, but Nepal sees as a much-needed rebalancing.

Nepalis strongly desire to break free from the shackles of political and economic domination from both Indi and China. They have seen Asian countries transform themselves in a matter of decades and are eager for similar change. They have seen the rise of China and how the Chinese have lifted millions out of poverty. They have seen in their own country how almost 70 years of Western development aid has done little in comparison.

There is a great disillusionment against what is widely perceived as the proclivity of the Indians and Westerners to get mired in domestic politics and social engineering Nepal is not a “security instrument” to contain China, nor a battleground in the new great game. It is easy to see why the Chinese model, with its strictly economic terms of engagement, is preferable to many, even with concerns about “debt entrapment” among countries dealing with China.

Anyone in China’s neighborhood is going to be aware of the gravity of China’s pull and the amount of influence it could potentially wield. But many in Nepal appear unconcerned, focusing instead on China’s massive economic development and the spillover benefits it could have for their country. 10 years down the road, Nepal’s economy will have largely benefited because of the Chinese economy.

Obviously Nepal will benefit from the growing Chinese economy and the Chinese protection would ward off any threats from India.

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South Asia

What to do with Pakistani militant Hafez Saeed? Pakistan and China grope for ambiguity

Dr. James M. Dorsey

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Recent remarks by several senior Pakistani officials suggest that Pakistan and China are groping with how to deal with globally designated Pakistani militant Hafez Saeed as the South Asian nation gears up for elections expected in July and risks being next month put on an international terrorism finance and money laundering watchlist.

The Pakistani-Chinese dilemma stems from a China-backed Pakistani refusal to fully implement designations of Hafez Saeed by the United Nations Security Council and the US Treasury.

The United States has put a $10 million bounty on the head of Mr. Saeed, who is believed to lead the outlawed militant group, Lashkar-e-Taiba (LeT) as well as Jamaat-ud-Dawa, an alleged LeT front, and is suspected of being the mastermind of the 2008 Mumbai attacks in which 166 people were killed.

Pakistan has repeatedly put Mr. Saaed under house arrest, only to release him on court orders that asserted that there was insufficient evidence against him. The government has half-heartedly sought to seize Jamaat-ud-Dawa assets and prevent it from collecting donations through its charity arm, Falah-i-Insaniat Foundation.

Pakistan’s election commission has so far refused to register a political party established by Jamaat-ud-Dawa in advance of the elections. The refusal would not prevent party members from running as independents.

To reduce focus on Mr. Saaed, a senior aide to Pakistani Prime Minister Shahid Khaqan Abbasi said that Chinese President Xi Jinping had asked Mr. Abbasi during a meeting on the side lines of last month’s Boao Forum to explore relocating Mr. Saaed to a Middle Eastern country.

“At a 35-minute meeting, at least 10 minutes of the discussion dealt with Saeed. The Chinese President was keen on pressing the Prime Minister to find an early solution to keep Saeed away from the limelight,” The Hindu quoted the aide as saying.

In separate remarks, Major General Asif Ghafoor, a spokesman for Pakistan’s intelligence service, Inter Services Intelligence, told Indian Express that “anything (Mr. Saeed) does, other than violence, is good. There is a process in Pakistan for anyone to participate in politics. The Election Commission of Pakistan (ECP) has its rules and laws. If he (Mr. Saeed) fulfils all those requirements that is for the ECP to decide.”

The divergent proposals to either remove Mr. Saeed from the limelight or mainstream him by integrating him into the political process are unlikely to satisfy either the United Nations or the United States.

They are also unlikely to prevent the Financial Action Task Force (FATF), a global financial watchdog that monitors the funding of political violence and money laundering, from next month putting Pakistan on its watchlist.

The FATF action could negatively affect the Pakistan economy. Pakistan risks downgrading by multilateral lenders such as the International Monetary Fund (IMF), World Bank, and the Asian Development Bank (ADB) as well as by international credit rating agencies Moody’s, Standard & Poor’s and Fitch.

Mr. Xi’s suggestion to Mr. Abbasi reflects Chinese ambivalence towards those Pakistani militants that both Islamabad and Beijing see as useful tools to keep India off balance. China protected Mr. Saeed from UN designation prior to the Mumbai attacks and has since prevented another Pakistani militant, Masood Azhar, from being designated by the Security Council.

At the same time, China refrained in February from shielding Pakistan from censorship by FATF.

A Chinese foreign ministry spokesperson nonetheless argued at the time that “in recent years, Pakistan has made important progress in actively strengthening financial regulations to combat terror financing… China highly recognises that and hopes all relevant parties of the international community could arrive at an objective and fair conclusion on that.”

Implementing Mr. Xi’s proposal to remove Mr. Saeed from the limelight is easier said than done. Its hard to see what Middle Eastern nation would risk international criticism by granting Mr. Saeed asylum without tacit approval by the United States and/or the United Nations. By the same token, its unlikely that either would agree to the scheme.

Similarly, neither the UN nor the United States are likely to be persuaded by a belief within the Pakistani military that the best way of blunting militancy that has over the decades been woven into the fabric of significant segments of the armed forces, intelligence and society is by mainstreaming militants and integrating them into the political process.

Ousted Pakistani prime minister Nawaz Sharif kicked up a storm when he earlier this month appeared to confirm the pervasiveness of militancy by suggesting that the perpetrators of the Mumbai attacks had been supported by Pakistan.

“Militant organisations are active. Call them non-state actors, should we allow them to cross the border and kill 150 people in Mumbai? Explain it to me. Why can’t we complete the trial? It’s unacceptable. This is exactly what we are struggling for. President Putin has said it. President Xi has said it. We could have already been at seven per cent growth (in GDP), but we are not,” Mr. Sharif said.

The remarks by the Pakistani officials suggest that both Pakistan and China are attempting to square circles.

Pakistan needs to be seen as cracking down on militancy while considering the domestic influence of ultra-conservative religious groups as well as seemingly misguided beliefs that support for anti-Indian militants serves its purpose.

For its part, China’s justification of its hardhanded crackdown in the north-western province of Xinjiang as a bid to counter jihadism and nationalism among, Uighurs, a Turkic people, is weakened by its reluctance to be equally firm in countering militants in Pakistan.

The problem for both countries is that 1 + 1 = 2, whichever way one looks at it.

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How the US withdrawal from the Iran nuclear deal affects India

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Authors: Tridivesh Singh Maini & Sandeep Sachdeva*

While India was guarded in it’s response to the withdrawal of US from the Iran Nuclear Deal, it surely realizes the implications of the US withdrawal. Iran is India’s third largest source of crude oil (after Iraq and Saudi Arabia) . Between April 2017 and January 2018, New Delhi imported well over 18 million tonnes of crude oil.

New Delhi has also invested in the development of the Chabahar Port Project, which will provide India, access to Afghanistan and Central Asia. This project is extremely important for India, since it will help in bypassing Pakistan, which has continuously kept India out of the Afghanistan Pakistan Transit Trade Agreement (APTTA). During Indian Prime Minister, Narendra Modi’s Iran visit in May 2016, India had signed an agreement, committing 500 Million USD for the development of Chabahar. During Modi’s visit,  a trilateral transport and transit partnership was also signed between India, Afghanistan and Iran.

In February 2018, during Iranian President Rouhani’s visit  to India, a lease agreement was signed between India and Iran. The lease agreement gave operational control of Phase 1 of Chabahar Port (Shahid Beheshti port) to India. The Modi, Hassan Rouhani Joint statement mentioned the need for making Chabahar part of INSTC project and PM Modi further emphasised that “We will support the construction of the Chabahar-Zahedan rail link, so that Chabahar gateway’s potential could be fully utilised.”

Here it would be pertinent to point out, that to enhance connectivity with Afghanistan, India has also set up an India Afghan Air Corridor, two flights are currently operational; one connecting Mumbai with Kabul, and another which connects Delhi with Kabul.

Indian hopes

For the time being, New Delhi has rested its hopes on the fact, that European countries are trying to keep the deal intact, and US will also not impose sanctions on allies, including India, for engaging with Iran. Defence Secretary James Mattis in a Congressional hearing held by the Senate Armed Services Committee, had categorically stated,  that the US should be careful with regard to imposing sanctions against allies, under Countering America’s Adversaries Through Sanctions Act (CAATSA).

Mattis said, that allies like India should be provided a national security waiver, against imposition of sanctions for the purchase of S-400 air defence missile system from Russia.

A number of US Congressmen and Senators too have echoed Mattis’ views saying that India is valuable ally and should be exempted from sanctions

What India needs to be cautious about

While India does have time to react to the sanctions re-imposed, and the fact that European countries are keen to keep the deal alive are important. Recent statements by the US National Security Advisor, John Bolton saying that Europe will not be immune from sanctions, and would ultimately fall in line needs to be closely watched.

Said Bolton in an interview with ABC’sThis Week:“Europeans are going to face the effective US sanctions — already are, really — because much of what they would like to sell to Iran involves US technology, for which the licenses will not be available.”

Bolton also stated, that these countries will ultimately realise that it is in their interest to go along with the US.

Earlier US Ambassador to Germany, Richard Grenell advised Germany to re-consider business ties with Iran:‘German companies doing business in Iran should wind down operations immediately”.

New Delhi needs to strike a balancing act between Iran and US, but it also needs to have a clear plan of action to deal with US sanctions against Iran. In the past few years, India has successfully managed to balance relations between Iran and US, and Iran and Israel. Given the recent sanctions and the hawkish approach of the Trump Administration, it may be tough.

China factor

In the meanwhile, New Delhi would be well advised to follow closely China’s reaction to the withdrawal of US from JCPOA. Iranian foreign minister Mohammad Javad Zarif visited three important countries Russia, China and Europe to save the JCPOA. Chinese Foreign Minister Wang Yi said “it was hard-earned  deal, and China will take an objective, fair and responsible attitude, keep communication and cooperation with all parties concerned, and continue to work to maintain the deal”.

The China factor doesn’t end here for India. Off late, ties between India and China have witnessed an improvement, during PM Modi’s recent China visit, it was decided. that both countries will undertake a joint project in Afghanistan. In recent months, there seem to be some indicators of lowering of tensions between New Delhi and Islamabad as well.  Could, Beijing get New Delhi and Islamabad to discuss the issue of  transit trade to Afghanistan?  An opinion piece, ‘Pakistan’s military reaches out to India’, published in RUSI (Royal United Services Institute) discusses the willingness of Pakistan to discuss this issue, but India had turned down the offer in October 2017. Maybe New Delhi, could explore this option, and Beijing could support such an effort.

Conclusion

In conclusion, New Delhi will need to handle the current situation with great dexterity, while US is an important strategic partner, India has also got an opportunity to send an unequivocal message to Washington, that its own interests are paramount, and it will not blindly follow any one camp. In spite of all the challenges and upheavals likely to result from Trump’s decision, this also provides a golden opportunity for re-shaping the narrative within South Asia.

*Sandeep Sachdeva, Independent Foreign Policy Analyst

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Ex-Pakistani Prime Minister puts Pakistani military and China on the spot

Dr. James M. Dorsey

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Ousted Pakistani prime minister Nawaz Sharif kicked up a storm when he earlier this month seemingly admitted that Pakistan had supported militants who attacked multiple targets in Mumbai in 2008, killing 166 people.

Mr. Sharif’s admission, which he has since tried to walk back, put a finger on Pakistan’s controversial policy of selective support of militant groups at a sensitive time. Pakistan is gearing up for elections that would secure its third consecutive handover of civilian political power.

Mr. Sharif’s remarks, moreover, stirred up a hornet’s nest because Pakistan is likely to next month be put on a watch list by the Financial Action Task Force (FATF), a global financial watchdog that monitors the funding of political violence and money laundering worldwide.

The remarks also put China in a difficult position. China has been pressuring Pakistan to crack down on militants, particularly in the troubled province of Balochistan, the crown jewel in its Belt and Road-related $50 billion plus infrastructure investment in the China Pakistan Economic Corridor (CPEC).

Yet, at the same time, China has at Pakistan’s behest prevented the United Nations Security Council from declaring Masood Azhar, believed to have been responsible for an attack in 2016 on India’s Pathankot Air Force Station, as a globally designated terrorist.

The militants, dressed in Indian military uniforms fought a 14-hour battle against Indian security forces that only ended when the last attacker was killed. Mr. Azhar was briefly detained after the attack and has since gone underground.

Mr. Sharif’s made his remarks as China was building up its military infrastructure in Pakistan. The build-up is occurring against the backdrop of Pakistan risking being involuntarily sucked into potential attempts to destabilize Iran if Saudi Arabia/and or the United States were to use Balochistan as a staging ground.

In line with a standard practice in Pakistan that has repeatedly seen groups that are outlawed resurrecting themselves under new names, Lashkar-e-Taibe (LeT), the banned group believed to be responsible for the Mumbai attacks, and Jamaat-ud-Dawa, widely believed to be an LeT front, are  rebranding under a new name and as a political party, Milli Muslim League, that would compete in the forthcoming election.

The League is headed by Hafez Saaed, a former LeT leader, who was last year released from house arrest despite having been declared a designated global terrorist by the Security Council and the US Treasury, which put a $10 billion bounty on his head. China vetoed Mr. Saeed’s designation by the UN prior to the Mumbai attacks.

Activists, even though the party was last month designated by the US Treasury, are likely to run as independents in the election if the government maintains its rejection of the party’s registration.

So are operatives of Ahl-e-Sunnat-Wal-Jamaat, a front for Sipah-e-Sahaba Pakistan, a banned, virulently anti-Shiite group that long enjoyed support from Saudi Arabia and operates multiple militant madrassas or religious seminaries in Balochistan that have witnessed an injection of funds from the kingdom in the last two years.

“Militant organisations are active. Call them non-state actors, should we allow them to cross the border and kill 150 people in Mumbai? Explain it to me. Why can’t we complete the trial? It’s absolutely unacceptable. This is exactly what we are struggling for. President Putin has said it. President Xi has said it. We could have already been at seven per cent growth (in GDP), but we are not,” Mr. Sharif said, referring to stalled Mumbai attacks-related trials in a Rawalpindi anti-terrorism court.

Taking Mr. Sharif’s comments a step further, prominent journalist and author Ahmed Rashid asserted that “the deep state of Pakistan is supporting the banned outfits as it has done in the past. This game should be stopped, and the government should show its commitment and sincerity in disarming these groups and not to allow them to enter into politics.”

Former Pakistani strongman General Pervez Musharraf, in an apparent manifestation of links between the circles close to the military and hardliners, said prior to the designation by the US announced that he was discussing an alliance with Mr. Saeed’s league.

Speaking on Pakistani television, Mr. Musharraf pronounced himself “the greatest supporter of LeT… Because I have always been in favour of action in Kashmir and I have always been in favour of pressuring the Indian army in Kashmir,” Mr. Musharraf said.

Pakistan’s military and intelligence service are believed to favour integration of militants into the political process as a way of reducing violence and militancy in a country in which religious ultra-conservatism and intolerance has been woven into the fabric of branches of the state and significant segments of society.

Critics charge that integration is likely to fail in Pakistan. “Incorporating radical Islamist movements into formal political systems may have some benefits in theory… But the structural limitations in some Muslim countries with prominent radical groups make it unlikely that these groups will adopt such reforms, at least not anytime soon… While Islamabad wants to combat jihadist insurgents in Pakistan, it also wants to maintain influence over groups that are engaged in India and Afghanistan,” said Kamran Bokhari, a well-known scholar of violent extremism.

Citing the example of a militant Egyptian group that formed a political party to participate in elections, Mr. Bokhari argued that “though such groups remain opposed to democracy in theory, they are willing to participate in electoral politics to enhance their influence over the state. Extremist groups thus become incorporated into existing institutions and try to push radical changes from within the system.”

Chinese ambiguity about Pakistani policy goes beyond shielding Mr. Azhar from being designated. A Chinese-Pakistani draft plan last year identified as risks to CPEC “Pakistani politics, such as competing parties, religion, tribes, terrorists, and Western intervention” as well as security. “The security situation is the worst in recent years,” the plan said.

Security has since improved substantially in significant parts of Pakistan. The question, however, is whether integration of militants into the political process would stabilize Pakistani politics in the absence of a concerted effort to counter mounting ultra-conservative religious fervour in the country. It may be too early to judge, but so far the answer has to be no.

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