Establishment of Bittersweet Relations
Pakistan and Iran share strong historical, religious, cultural, and linguistic bonds. The relationship witnessed ups and downs, but despite all that the two countries tried to maintain a smooth path. Soon after Pakistan’s independence, Iran was the first country to recognize its independence from the British raj. The diplomatic ties started with the visit of the then PM Liaqat Ali khan in 1948. The relationship took a good flight with the visit of the Shah of Iran in 1950. Both the countries enjoyed cordial relations until 1996 but then due to divergence of interest in Afghanistan both moved apart. Pakistan was pro-Taliban whereas Iran supported the anti-Taliban alliance (i.e. Northern Alliance). Pakistan’s post 9/11 policy had further increased the void. Islamabad’s pro-Saudi and West policy added salt to the recipe. Being partner of United States of America in WoT, and under a great American and Saudi Arabia’s influence, Pakistan and Iranian relations suffered a lot. The General Zia’s regime with a strong pro-Saudis attitude also negatively impacted the two. However, the land connection between the two gave an opportunity to revive the relationship.
Adding Economic dimension
Being immediate neighbors, Muslim states and once good partners tried to fill-up the gap through non-economic means. However, in the age of development, both the states have to analyse the level of their relations through the lens of economic means as well. As, both the states have huge potential. Both Pakistan and Iran look towards the untapped the economic opportunities in order to have a strong regional bond. In addition, history also witnessed that both the states have extended their support to each other in worst times as well.
With the help of China and smooth development of CPEC, United States’ influence in the region could be countered. Convergence of interest in this very case is of utmost importance. The impetus behind the closer relations between the two should be prospered in developed state system.
Pakistan as a growing state needs to meet the energy deficiency, and for that Iran could be a good option, being a neighbor rich in natural resources especially oil and gas is vital for an energy deficient state. On the other hand, Pakistan, a country of 209 million people with a per capita income of $1,480, is a developing economy with a GDP of $312.57 billion and an estimated real growth rate of 3.3% (2019). Pakistan has to strengthen its trade relations with Iran and vice versa for a prosper future. To that end, both states have to utilize economic means as well, an element of soft power, to further deepen the economic dependency for development and growth.
|Trade||Amount US Dollars|
|Pakistan Exports To Iran||Rice, Meat, Paper and Paper Board, Chemicals, Textiles, Fruit & Vegetables||22.86 million|
|Pakistan Imports From Iran||Iron Ore, Hide & Skins, and Chemical Products||369.23 million|
|Total Trade Volume||392.08 million|
Table 1: Pakistan – Iran Trade Volume
Other spheres of cooperation
The people to people contact between the Pakistani and Iranian community is unique. Religion, Sufism, and Persian language all have a deep imprint. The state relations currently are in transformative phase. Positive state attitude tip-offs that both Iran and Pakistan desires to work together for a brighter future. In the recent history, and under the current government of PTI, the relations took a new height. Exchange of high profile visits including Iranian Foreign Minister Dr. Javad Zarif (August 2018, October 2018, May 2019) and Pakistan’s Foreign Minister (Dec 2018), and Prime Minister Imran Khan(21-22 April 2019) all are a start of new beginning. Moreover, helped enhance mutual understanding on political, economic and security sectors. Strong communication links between the two also facilitated policy formation for a consistent and mutually beneficial diplomatic, political, and trade ties. Pakistan and Iran signed Declaration for Cooperation in Healthcare Sector; opening of new crossing points, initiation of the process for release of a number of Pakistani prisoners; and call for peaceful solution of Jammu &Kashmir dispute.P akistan’sbacking on Joint Comprehensive Plan of Action (JCPOA) and commitment towards Tehran in the face of U.S.’s unilateral sanctions has been a great source of strength and applauded by Iran too.
Iran’s Standing in the Middle East
Iran has a long history and is an important regional player, one of well-known Middle Eastern power bloc. Iran survived and is surviving despite of all the International sanctions. Power politics is not only western dream but is admired by the eastern countries too. Iran has a good regional connection and time and again has played its role in a very smart manner. Its affiliates are everywhere, from Palestine to Iraq and Syria, Afghanistan, & Pakistan.
Since, Iran played a major role in Middle East, a strong Iran is always seen as a challenge not only to the Middle Eastern power machines but also world’s superpower U.S. A fragile Iran favours of all those. To this end, even America played its card well and hence tried to put it under pressure.
Iran vs USA
To this lead, even killing of Quds Force commander Qasem Solemani in January is also a move to further weaken Iran. U.S. instead of acting wisely, start frivolous acts, for instance trade war with China, assassination of Solemani, zero response on Kashmir and Palestine, just to keep itself up.
U.S. was well aware of that in wake of Solemani’s murder, Iranians would fight back. Though Iran would not indulge in any straight conflict but proxies. Hence, U.S. tried to influence regional states even Pakistan to be part of its dirty games. Pakistan as already trapped in Afghanistan, and lost so much in terms of human life and economics, doesn’t want to support the Big Might this time. Hence, Islamabad refused to be part of a problem that would be a havoc for the regional peace and stability. One reason behind U.S.’s all these efforts is also to disturb China Pakistan Economic Corridor (CPEC). CPEC a game changer for the region which is also perceived by the world community is a problem for U.S. China’s rise and economic influence in the region is wearisome for U.S.
U.S. wanted to have a permanent presence in Balochistan near Iran, not only to keep an eye on Tehran but also Beijing and Gwadar. The impetus was to destabilize the CPEC progress through its presence there. As, if the conflict erupts and U.S. start operating for Balochistan, there would be no moment and no development and hence will indirectly hinder CPEC.
Pakistan’s stance on the emerging conflict
Pakistan’s establishment and political parties were well aware of this odd game and hence were on the same page; therefore sent a straight message to Washington that it will not be part of any ferocious act. Foreign Minister Shah Mehmood Qureshi conveyed the message that, “Pakistan’s soil will not be used against any other state, and nor will Pakistan become a part of this regional conflict and doesn’t endorse any unilateral action”.
Pakistan’s strong position on that fortunately hoarded the region from another Afghanistan to happen. Pakistan is trying to correct its already complex relations with Iran.
Power shift in Iran
Iran just had the first round of its parliamentary elections in last week, the second round is yet to happen in May most probably, but the results have clearly indicated the patterns and the ones sliding into the power corridors are been identified. However, a number of factors are responsible for these “obvious results” as some citizens are calling them to be.
Giving a brief account of the ideologies into play, Iran had a coalition for reformists and another of principlists. There was the right wing, the left wing and the centrists i.e. the ones with a moderate approach. In 2016, the 120 seats were won by the reformists while 113 were taken up by the principlists or conservatives. The remaining ones were distributed between the independents largely and others. However, the emerging picture of results in 2020 is very different from what it was four years back.
The parliamentary elections 2020 for Iran had made it easy for the conservatives or the hardliners to get to power. In Islamic Republic’s Majlis of 290 seats, 219 are already won by them. Primarily, because of the fact that only a small number of participants are allowed to run for the office or contest the elections. Prior to elections the contestants are supposed to go through a scrutiny by the Guardian Council. It is a body that includes six jurists and six clerics who are appointed by the supreme leader, Ayatollah Ali Khamenei. This time, the GC had disqualified more than fifty percent of the total 14,000 applicants who had applied to run for the office. Most of these disqualified names were those of the reformists or the moderates.
So far, the canvas seems clyster the brush is in hand of conservatives with the lead of 219 seats in the majlis. The lowest voter turnout since 1979 was also alarming however, even though it favoured conservatives, it will have an impact until the next parliamentary elections. Whatever excuse or loopholes one may identify, the point to notice is now that the conservatives appear to be at the driving seat, how can the outcome for the internal as well as external Iranian affairs can easily be contemplated.
Another factor to understand here is that Iran experienced lowest voter turnout since the Iranian revolution of 1979. Less than half of the total voters is said to have voted in the recent elections. It is said that some people didn’t participate because of the economic situation. The most important reason for those people is the sanctions by the USA and so they have became hopeless as of anything can be changed. However, the good news is that if the new representatives would do anything against the illegal sanctions, the domestic situation can be changed in favor of the government. It has been said that people have shown dissatisfaction over the clerical rule particularly after the Ukrainian plane massacre. If conservative proceed with narrower scope to function there is likely a chance that they can face fallout of the mass protests leading to the worsening of the situation for Iran.
In bag for Ruhani
The new parliament will not be an ally for Ruhani. Because conservatives are not so fond of him and reformists. They cannot forget his politics and political rhetoric about their opinions and principles. Also, it seems they will put more pressure on him in order to get more privileges. So, Ruhani should be prepared for new critics and hard domestic situation.
In all, the foreign policy of Ruhani toward the west will be more weakened because the new parliament is not expected to be on the same page as him. Although, Ruhani has shown a flexible political opinion which made him able to work with all parties of Iran, the new era of Iran’s domestic affairs are not so clear. So it’s a little soon to predict the future!
Who could be the next supreme leader?
The struggle for power is already into play admist US sanctions. Iran’s Supreme Leader, Sayyid Ali Hosseini Khamenei’s failing health and increasing age has led to the speculations of who could take his place. His resign or death can altogether reshape Iranian politics. The most likely names in this regard are Mahmoud Hashemi Shahroudi, Sadeq Larijani and Ebrahim Raisi.
The imminent question rises that next president off course would be from conservatives, how they will orientate state cogs when it comes to dealing with Washington? Will they behave in same manner or worse? Or there is any minute chance that they will behave in an opposite manner and try to men the ties with international community and Oval? While it this point in time, the parliamentary elections cannot directly have an impact on the foreign policy but after the presidential elections, where the same conservative parliament can elect their president things can get a little shaky. The conservatives apparently are not so fond of the direct negotiations and can lead to re-imposition of sanctions as well. At this moment when the global economy is on a gamble in post corona outbreak, Iran being affected by this terrible news too, needs to secure their economic interests. There is likely a chance that conservative would act in a liberal and a quite understanding manner when it comes to dealing with Washington.
Pak-Iran and the West
As both the states have new political elites, it is time to counter the western influence in the region, both states have to entrust working closely with each other in different sectors. Following are some points highlighting the Pakistan – Iran convergence of interest:
- Pakistan – Iran cooperation and collaboration in Afghanistan
- Combating terrorism, extremism, & separatism
- Countering Epidemic Disease
- Iran – Pakistan Gas Pipeline
- Trade: Iran – Pakistan Economic Corridor
- Promotion of Tourism
- Gwadar – Chabhar Junction
- Marine Investment
- Defence/Military Relations
- Energy Sector
- Counter border Corruption
- Controlling illegal goods and human trafficking
- Vocational/Professional trainings
- Joint working groups on regional strategic stability
To conclude, Pakistan doesn’t want to be part of any game that could have a negative impact on Pakistan. Pakistan, a sectarian sensitive state could have severe internal civil consequences. Being part of U.S. against Iran could have triggered an upsurge in sectarian tensions of the region especially Pakistan and Afghanistan. So, it opted to be neutral. Pakistan, has to work on its foreign policy viz-a-viz Middle Eastern states. Both Pakistan and Iran as to realize the importance of their positions and relations in the region and also have to reap their full economic potential. It’s time to come to workable agreements and negotiations in order to show need for cooperation and collaboration.
The G20, the Global South and India
The G20 summit in India turned out to be not ordinary event. The summit of representatives of the largest economies and military-political potentials showed global trends in the struggle for leadership and development. The G20 meeting demonstrated India’s diplomatic triumph, which proved a rather profound understanding of world processes and trends. The most important consequence of the summit was the adoption of a new global economic and infrastructure project to export goods from India through the Middle East to Europe. In addition, the countries of the Global South have shown that they are not ready to oppose Russia openly and do not want to politicize the Ukrainian crisis.
The Group of Twenty originated at the turn of the XXI. During the deep economic and financial crisis in Asia, the developed countries of the West sought to formalize a new coordination structure. The idea was to create a forum to exchange views and global coordination of financial and economic issues. Then, the finance ministers of the Group of Eight solicited an initiative to expand the range of countries to discuss financial policy issues, inviting such large and actively growing states as China and India.
By the beginning of the XXI, there was an objective viewpoint in Western capitals that it was impossible to solve world problems without involving India and China in the problems of global governance. The idea of globalization was becoming dominant among intellectuals and development leaders during this period. After the collapse of bipolarity and the disintegration of the USSR, the world lost unnecessary dividing lines, ideological enmity and confrontation between the two blocs. Globalization was becoming a natural and necessary aspect of development. The idea originated in the UK and the USA and has become prevalent in the capitals of developed countries. Thus, the Group of Twenty was created.
Nonetheless, after the founding conference in Berlin in December 1999, the G20 was almost forgotten. Before the new financial crisis in 2008, there were no summits: the main format was the annual meetings of finance ministers and heads of central banks. The fact that the situation in the global economy was critical is indicated by the fact that the G20 summits met not once a year but as emergency meetings. The first, named “anti—crisis”, was held in November 2008 in Washington, the next in April 2009 in London, and, in Pittsburgh in September of the same year.
The severity of the economic crisis has passed over time, and the G20 has upgraded to the political level. The Forum, which unites countries from different parts of the world, is much more representative and balanced than the G7 and allows world leaders to meet without organizing an official visit to discuss current affairs. The Group of Twenty, major advanced and emerging economies collectively represent about 80-90% of the world’s gross national product, 70-80% of world trade, and two-thirds of the world’s population. The Group includes 19 major national economies, as well as The European Union as a joint participant.
The G20 Summit in New Delhi on September 9-10 was an outstanding event in the life of this organization. Three aspects can be stressed out. First, the G20 has expanded at the expense of the African Union. Secondly, the summit reached an agreement on creating a transport corridor that will be completed by India and its partners and is considered by New Delhi and the West as an alternative to the Chinese One Belt, One Road project. If this transport project is successfully implemented, it can change the balance of power in the global economy and significantly strengthen India’s position in the international system. Thirdly, the topic concerning the Ukrainian-Russian conflict was essentially secondary for the first time since February 2022 at a representative interstate forum. The countries of the Global South refused to politicize this conflict and take sides.
All three developments have become possible thanks to the successful work of Indian diplomacy. Apparently, it is safe to talk about India as a growing and established contender for the status of a great power. The last day of the summit was marked by a visit of its participants to the Raj Ghat memorial, created at the cremation site of the national hero of India – Mahatma Gandhi.
From the perspective of world politics, the most important idea was the creation of a new transport corridor, which was supported by all the largest economies in the world. It was decided to develop an action plan within a few months and start implementation. Its goal is to launch a large–scale project for the construction of railways and ports intended to transport goods from India to the Middle East and Europe. The memorandum of understanding, based on which the project is being created, is signed by Joseph Biden, Narendra Modi, and the Crown Prince of Saudi Arabia, Mohammed bin Salman al Saud.
China’s excessive and active growth worries the most developed countries of the world, especially the United States and Great Britain. Some concern is also present in a number of Asian capitals, including Japan, India, South Korea, and partly Vietnam. Growth generates China’s ambitions, and intentions to spread its power and influence have a particular impact on the actions of other major players. Having a complicated history of relations with China, several countries are looking for formats and systems of cooperation to deter possible aggressive attempts to expand their influence and growth. Many intellectuals are convinced that the confrontation between the United States and China will become the main and determining factor of the XXI. The idea of a new transport corridor, which has become a demonstration of the success of the diplomacy of India and its partners in the West, has a specific potential for diversifying transport supplies and hedging the risks of Chinese growth.
Therefore, the G-20 summit was a success for India and demonstrated a sufficiently deep understanding of world processes, stability, and professionalism of its diplomacy. New Delhi’s ideas and projects have been supported by many players, including the conflicting West and East. India has become a conductor and mentor of the interests of the Global South. The expansion of the G20 at the summit in India at the expense of the African Union has become a symbol of this. In addition, despite the high level of conflict in current international relations and pressure, India managed to protect the economic summit from excessive politicization and collective condemnation.
The G20 New Delhi declaration: Is “One future” possible?
The G20 New Delhi Declaration, themed “One earth, one family, one future,” stands as a remarkable diplomatic achievement for India, even in the face of intricate geopolitical dynamics challenging the notion of “one future.” It demonstrates how India’s diplomatic masterstrokes, whether the breakthrough on Ukraine or the inclusion of the African Union as a permanent G20 member, transformed the seemingly impossible into reality. Specifically, the joint statement on the war in Ukraine by the West and the Russia-China bloc was unimaginable. The absence of Russian President Putin and Chinese President Xi Jinping raised questions and concerns, but India’s Foreign Minister Jaisnakar addressed it as “not unusual.” Against all odds, India’s diplomacy successfully built bridges between the divided powers. How did the G20 New Delhi Declaration work this magic?
The language used in the 37-page G20 New Delhi Declaration is a testament to the power of wordsmithing, persuading everyone involved. While Western nations were eager to address the conflict in Ukraine, India deftly navigated this sensitive terrain. The declaration tactfully states, “Today’s era must not be one of war” in reference to the Ukrainian conflict, avoiding explicit condemnation of Russia. Notably, Prime Minister Modi engaged in a telephone conversation with President Putin just before the summit, demonstrating Russia’s willingness to engage in discussions regarding the Ukrainian conflict without falling into the blame game. In contrast, the Bali Declaration from the previous year used more robust language, explicitly condemning the “aggression by the Russian Federation against Ukraine” and demanding a complete and unconditional withdrawal. Foreign Minister Jaisakar aptly remarked, “Bali was Bali, New Delhi is New Delhi,” signifying the evolving dynamics of diplomacy.
Prime Minister Modi specifically emphasized India’s desire to become the voice of the Global South. Another notable achievement was India’s successful push for the African Union’s inclusion as a permanent G20 member. This strategic move reflects India’s commitment to representing the Global South, considering the African Union’s growing significance, representing 55 states and a quarter of the world’s population by 2050.
The recommendations enshrined in the New Delhi Declaration hold the promise of fostering “One future” if diligently implemented. Initiatives such as the Green Development Pact, Climate and Sustainable Finance, Financial Institution Reforms, and Gender Equality are vital objectives that benefit both developed and developing nations. The declaration made significant strides toward addressing climate and sustainable finance concerns by advocating for a robust replenishment of the Green Climate Fund. It underscored the imperative of securing $5.8 to $5.9 trillion by 2030 to support developing countries in fulfilling their Nationally Determined Contributions.
Nevertheless, the question lingers: Can the G20 New Delhi Declaration genuinely usher in “One earth, one family, one future”? In the context of the Russia-Ukraine conflict, the G20 witnessed a convergence of positions between Western nations and Russia-China, aligning with India’s aspirations. However, Western nations may face domestic scrutiny for their approach toward the war in Ukraine at the G20 meeting. While India may have achieved diplomatic success with the G20 Delhi Declaration, the core issue between Western nations and Russia remains the war in Ukraine. In my opinion, India has no interest in becoming a mediator between Russia and the Western nations to find a solution to the war in Ukraine. Without resolving this conflict, India will not be able to bridge the gap between Western nations and Russia in a true sense.
Even though PM Modi has been trying to become the voice of the Global South, China is far ahead of India in Africa. The truth is that “funds are power” in the Global South. If India and other Western nations fail to provide funds in the Global South, then India’s dream of becoming the voice of the Global South will remain unreal. In the BRICS meeting, President Xi Jinping emphasized industrialization in the Global South, which implies more infrastructure projects. Now it will depend on how far Western countries are willing to go in the context of the Global South.
The absence of China’s President Xi Jinping at the G20 summit in New Delhi raised eyebrows. Recent developments, such as the joint commitment by President Xi and Prime Minister Modi to resolve border issues during the BRICS meeting in Johannesburg and China’s release of a controversial map laying claim to Arunachal Pradesh and Aksai Chin just before the G20 summit, have added complexity to India’s diplomatic agenda. Post-G20, the China Institute of Contemporary International Relations, under the Ministry of State Security, accused India of ‘sabotaging’ the G20 for its own interests. This underscores China’s unease with India’s deepening ties with Western powers. The “No Limit Partnership” between China and Russia is a concern for India, prompting a closer alignment with the West. While the G20 confirmed the centrality of the US-India partnership to the US Indo-Pacific strategy, it is evident that New Delhi may have to face difficult national security issues with Beijing. As India approaches elections, Prime Minister Modi’s firm stance on China is expected to persist.
Achieving Sustainable Development Goals and addressing climate change concerns are paramount priorities, as agreed upon by all member countries. The real challenge lies in translating these goals into tangible actions on the ground. As witnessed with the Paris Agreement on climate change and the challenges related to it, the G20’s aspirations must not remain mere objectives.
Clearly, Western nations aspire to strengthen their ties with India. At the same time, India plays an important role for the Global South and the Russia-China bloc. The diplomatic success of the G20 New Delhi Declaration has bolstered India’s position in this increasingly polarized geopolitical landscape. The key challenge for New Delhi will be to navigate its relations with China while bridging the divides in the world’s power dynamics.
Of Game of Priorities
Following India’s moon mission, the Chandryan-3 safely landed over the moon, triggering questions and debate among scientists, political pundits, and laymen of Pakistan, as Pakistan has never been on a moon mission. However, whenever one of the twin nations or even a younger nation makes any achievement or progress in any field whether economic, social, political, or diplomatic, it raises questions for the other country, such as Pakistan and India. Besides, the humongous discrepancy between the global north and the global south also poses questions about why one is progressive and the other is not. The success of developed, developing, and least developed countries is always pregnant with some distinct decisions, so is their fruit. Simply put, only the priorities of a nation can make it or destroy it. Developed and developing countries engineer different priorities that result in different outcomes.
Each country designs its priorities accordingly. It’s the reason Pakistan lags behind in the global race because the world’s developed or most developing countries prioritize the economic and social well-being of their people, whereas Pakistan’s top priority is her security, which consumes most of its budget, leaving other sectors on the verge of destruction, despite the fact that Pakistan is replete with a myriad of natural and human resources. Resultantly, Pakistan undergoes the same fate of backwardness even in the 21st century.
Despite consuming most of Pakistan’s budget, the security challenges remain alarming in some border areas of the country. However, the internal security challenges have been tackled almost successfully. The security agencies failed to terminate the insecurity in the country completely even after two decades of war with Tehreek-e-Taliban Pakistan (TTP). As per the research, armed group attacks in Pakistan increased by 79% during the first half of the current year. Basically, the terror-related incidents peaked in 2013. The average was 4 attacks per day, and as a result, nearly 2700 fatalities had taken place. Similarly, the terror-related incidents didn’t stop but ebbed over time. Pakistan’s priority, even regarding tackling terrorists or insurgents, is ineffective. Crushing militants is impractical since Afghanistan is an all-weather safe haven for them. Whenever the Pakistani military attacks them, the top brass of the TTP relocate to Afghanistan. So it is totally difficult to end terror-related attacks and insurgencies within Pakistan, if Islamabad does not find a constructive approach to deal with them. There are two ways to exterminate them. Firstly, there must be a truce under the umbrella of Pakistan’s constitution. Secondly, if the previous doesn’t work, Pakistan must get a clear stance from Kabul to curb their safe havens for TTP top brass and then take actions accordingly. Apart from this, it is equally difficult because the Afghan Taliban and the Pakistani Taliban belong to the same ethnic group.
Previously, the ceasefire between the banned outfit and Pakistani officials could not bear reasonable fruit; instead, spared her time to amass weapons and organize order within the outfit, which in consequence, can be far more dangerous than it used to be. So, it is better to keep everything in mind before making any policy regarding this. Comparatively, no developed country places as much emphasis on security. If anyone pays attention to security, it comes with economic benefits, as demonstrated by the United States. The secure environment also provides economic opportunities. Also, only working on other sectors but security can bear no fruit because in an uncertain situation, no business can grow.
Apart from this, in every budget statement, economic development is prioritized, but the allocation of the budget and the practical approach differ. Key indicators of economic development are deemed Gross Domestic Production (GDP), a low poverty rate, low inflation, human development, etc. However, Pakistan’s performance in each is noncompetitive with even regional countries. Our birth partner, India, occupies the 5th largest economy in the world, whereas Pakistan occupies the 46th largest economy as of 2023. The poverty rate is 37% in FY 2023, as per the World Bank, which is higher than regional competitors; the inflation rate has crossed 30%; and human development is equal to none.
Where the global players’ key focus is economic growth, creating multiple job opportunities, balancing demand and supply, increasing purchasing parity, decreasing or even exterminating current account deficits, and terminating dependence on essential imported goods, Pakistan compellingly, through flawed policies, relies on imports even for essential consumable items, which creates a current account deficit. Mainly, Pakistan’s problem lies in the current account deficit. Low exports burden Pakistan’s current account, which accelerates the prices of consumable items and results in cost-push inflation. Besides, expensive imported raw materials and a higher interest rate increase the production cost of domestic products, which discourages local producers and further burdens Pakistan’s current account by importing those goods. On the contrary, developed or most developing countries encourage local production of essential items instead of relying on costly imports.
Also, the black economy of Pakistan adds to the problem because it is unaccountable and doesn’t come into the tax net, thus reducing revenue. The black economy includes a wide range of illegal activities such as corruption, money laundering, tax evasion, and underground and concealed economic activities from the eyes of the government. The black economy of Pakistan is estimated to be worth billions of dollars, and it’s increasing rapidly. As per surveys by many organizations, the black economy is going to be worth trillions of dollars. If these economic activities come under the tax net, strengthening Pakistan’s revenue and proper expenditure, Pakistan will be among its top global competitors.
Additionally, Pakistan’s salt mines and coal resources are the second- and third-largest globally. Pakistan ranks fifth in terms of the country’s greatest gold resources. Pakistan’s copper is one of its most abundant natural resources, and the country ranks seventh in the world in terms of its amount. Despite being rich in terms of natural resources, their improper use renders Pakistan a poor country. Negligence towards the proper utility of natural resources is one of the major contributors to existing economic woes. If natural resources are prioritized and contracts are provided to local companies instead of international ones, more than half of Pakistan’s problems will be resolved. As local companies will hire local engineers and workers that will provide employment, hence increasing purchasing power and impacting poverty.
Apart from this, the most prioritized issue among developed nations is the social well-being of their denizens. For this, their key focus remains on education, an effective health care system, life expectancy, nutrition, empowerment of vulnerable groups, quality of employment, quantity of free time, availability of clean water, cost of living, and gender parity.
But, the education system in Pakistan is in the worst condition. It is mainly based on theory, an outdated syllabus, incompetent teachers, and an unfriendly learning environment where students are not encouraged, leaving a few institutes. Our literacy rate stuck between 60% and 65%, not even crossing 70%. But when it comes to learning ability, the rate even decreases. However, global competitors have garnered even more than a 90% literacy rate. Not to mention others, even India and Bangladesh have surpassed Pakistan in adult literacy rates. Apart from that, Pakistan has established universities, but scarcely have they managed any slots even among the 500 best universities in the world. Consequently, Pakistan’s graduates remain unable to compete globally. In contrast, India’s MIT and IIT are fully competing in the global race. Since technology is the future, India has culminated at a higher level, but Pakistan is too far away. As they have occupied key positions as CEOs in top tech companies such as Google, Microsoft, IBM, and many more.
Besides, the health care system in Pakistan is also not up to par. As per the world population view, Pakistan is ranked even after India, Bangladesh, Iran, and Ecuador. This is a matter of concern for Pakistan. Since it’s one of the fundamental rights of denizens of a country, this sector too must be focused and invested in. However, the world’s countries invest hefty amounts of their resources in their health care and health research because a healthy individual contributes constructively to the well-being of society and brings about positive change.
Apart from this, Pakistan is also behind the eight ball in life expectancy, nutrition, empowerment of vulnerable groups, quality of employment, quantity of free time, availability of clean water, cost of living, and gender parity. Apart from being fundamental rights of the people of a country, these are the indicators that show the development of a country.
To encapsulate, the priorities of a nation play a crucial role in shaping its future. If any country prioritizes anything other than the basic rights, social well-being, and economic growth of the country, the kismet of that country remains in the doldrums. So, Pakistan too should reset its priorities and put into action their words so that Pakistan can be a global player and equally confer each basic right and facility on its citizens.
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