For centuries, the Indian Ocean and South Asia have played a significant role in the struggle for leadership between the great powers. The 21st century is no exception. The region is becoming the focus of strategic competition between leading regional and non-regional actors again. It requires a response from India, especially in building relations not only with China, the United States, or Japan but also with its closest neighbors. Under the prevailing circumstances, one of the most promising areas of New Delhi’s foreign policy is the India — Bangladesh — Sri Lanka strategic triangle, which has significant political, defense, and economic potential, and, most importantly, can provide a stronger basis for multilateral cooperation in the region.
Increase of geostrategic competition in the Indian Ocean and South Asia
For centuries, the Indian Ocean and South Asia have faced strong external influence and competition from non-regional actors. Due to its unique geographic location, this region has crucial strategic importance both in terms of trade and defense. The reality is that no country in the world can become a superpower unless it provides dominance over the dual area of the Indian and the Pacific Oceans. For example, China has been trying for decades to gain a presence in the Indian Ocean in an attempt to reduce its dependence on the Strait of Malacca, including due to the implementation of infrastructure projects in Myanmar, Pakistan, Sri Lanka, the Maldives, etc. In response to the growing influence of the PRC, the United States has replaced its Pacific and African Commands to the Indo-Pacific and supports the ambitions of Japan, Australia, and European states to increase their influence in the region.
In turn, India had accurately predicted this tendency. Moreover, back in 2004, New Delhi’s maritime doctrine stated that “All the major powers of this century will seek a toehold in the Indian Ocean Region”.
However, central to India’s foreign policy vision is the growing influence of Beijing in New Delhi’s traditional «zone of influence». Over the past decade, China has become one of the major trade and investment partners for the countries of South Asia and the Indian Ocean: Chinese companies are actively implementing infrastructure projects aimed at building highways, railways, and ports, and almost all countries in the region have joined the Belt and Road initiative (exceptionally Bhutan and India itself). Despite the economic nature of China’s cooperation with the countries of the region, Beijing’s geostrategic benefits from the rapprochement with New Delhi’s closest neighbors attract the attention of India’s expert, academic communities, and, probably, authorities.
At the same time, in the face of turbulence in the Sino-Indian relations, as well as their tension in Eastern Ladakh, it was widely analyzed the trend of Indian rapprochement with the United States, Japan, and Australia, which allowed New Delhi to increase its credibility, both among its closest neighbors and in the wider Indo-Pacific. However, India continues to adhere to its foreign policy course, taking a more concrete, but still restrained position on the issue of cooperation with Western actors. At the same time, India uses its increased role in the region to build a strategic triangle with Bangladesh and Sri Lanka — two intraregional states with high importance in the region’s geopolitics and solid experience of interaction with middle and great powers. If Sri Lanka is an important trading hub of the Indian Ocean and is also suitable for hosting navy vessels, then Bangladesh is a «gateway» for India to Southeast Asia, which will be increasingly opened as relations between Dhaka and New Delhi strengthen, as well as the development of the north-eastern states of India.
The emerging triangle between India, Bangladesh, and Sri Lanka
Anyway, due to the economic, political, and military rise, China has been able to create a geostrategic space for itself in South Asia and the Indian Ocean. In recent years, China has become one of the leading trading partners and a foreign direct investment (FDI) source for most of the countries of the region, which was undoubtedly beneficial for Beijing. So, in 2017, Sri Lanka joined the «Belt and Road Initiative», opening the doors for China’s companies to implement major infrastructure projects on its territory. In the same year, the parties reached an agreement on the construction of a port and airport on southern Sri-Lanka’s coast in Hambantota as part of China’s loans. The project cost was US$361 million. However, with the increase in the number of Chinese infrastructure projects, as well as the number of loans from the PRC, Sri Lanka faced the inability to independently compensate its debt. As a result, China has leased for 99 years the port of Hambantota on the terms of a debt swap, and the total debt of Colombo to Beijing in 2020 was amounted to about US$5 billion. Thus, China’s economic influence allowed it to gain more strategic space in India’s traditional region of influence as well as to gain a solid foothold in Sri Lanka.
The current environment caused the retaliatory measures from India, which has intensified the Sri Lankan vector of its foreign policy. Of course, compared to investments from China, Indian financing of projects in Sri Lanka is more modest, but, at the same time, targeted and focused on the sustainable development of Sri Lanka’s territories. New Delhi has already provided about US$1.3 billion for the development of the railway network between the southern and northern regions of Sri Lanka, over US$45.27 million — for the modernization of Kankesanturai Port and Palaly Airport, as well as cooperates with Tokyo on the development of the East Container Terminal (ECT) in the capital port of Sri Lanka. Moreover, in 2018, during a meeting of the Standing Parliamentary Committee on Foreign Relations of India, the Secretary of the Ministry of Foreign Affairs, former Indian Ambassador to China Vijay Gokhale and experienced diplomat stated, and I quote: «So, our efforts are to assist them [ed. the states of the region — A.G.] in building infrastructure projects which will hopefully also be able to reduce the dependency on China in terms of infrastructure requirement».
Against the backdrop of high debt liability and the economic impact of the COVID-19 pandemic, Sri Lanka received support from India, Bangladesh, and China. Earlier in the year, India offered Sri Lanka to supplement its foreign exchange reserves by US$1 billion, while Bangladesh, whose per capita income is twice as low as Sri Lanka’s, also didn’t stand aside and reached an agreement to provide the Sri Lankan side with US$200 million.
In such a case, it would be important to highlight at least three details. First, the currency swap agreement between Bangladesh and Sri Lanka marked the first time that a country in the region other than India has provided significant financial support to another country in South Asia. Second, the joint actions of India and Bangladesh have balanced a similar agreement between China and Sri Lanka on a currency swap worth US$1.54 billion. Finally, New Delhi’s assistance, combined with Dhaka’s rational approach to its economy (Bangladesh’s external debt amounted to 16-18% of GDP in 2016-2019, and foreign exchange reserves — $45 billion), can facilitate the exchange of experience among the region’s countries in order to avoid situations of excessive dependence and increased debt to more influential partners. A special role, in this case, can be played by platforms for multilateral intraregional dialogue, including the Bay of Bengal Initiative for Multisectoral Technical and Economic Cooperation (BIMSTEC), the Indian Ocean Rim Association (IORA) and the South Asian Association for Regional Cooperation (SAARC), which includes all parties to the emerging triangle.
At the same time, India and Bangladesh are working towards strengthening not only economic but also defense ties with Sri Lanka. In 2019, New Delhi and Colombo reached an agreement to strengthen defense cooperation, including training of the island state’s military personnel. Moreover, the triangle countries have aт extensive experience in conducting bilateral and multilateral exercises, as evidenced by the recent India — Sri Lanka naval exercises (October 2020) and the joint maneuvers between India, Bangladesh, Sri Lanka, and Bhutan (April 2021). Given the increased Sino-US rivalry in the region, as well as a large number of non-traditional security threats (drug smuggling, piracy, pollution from navigation and excessive fishing), the multidimensional cooperation of New Delhi, Dhaka and Colombo may be useful.
Analyzing the specific case of Bangladesh, it should be noted its economic success, including high GDP rates of economic growth, as well as the intensification of maritime and land trade. Thus, in 2011, New Delhi and Dhaka resolved a long-standing territorial dispute and demarcate the land border that certainly strengthened the level of mutual trust between the countries. Moreover, Bangladesh has joined the 1360-kilometer India — Myanmar — Thailand (IMT) highway project, becoming part of an ambitious opportunity to link the South and Southeast Asia’s countries.
The growing involvement of Bangladesh in issues of intraregional security, maintaining a stable situation in South Asia and the Indian Ocean, as well as its growing synergy with India, provoked rumors about the possible joining of Dhaka to the Quadrilateral Security Dialogue (Quad). China reacts sharply to the activities of the Quad, openly calling it an anti-Chinese coalition. In the case of Bangladesh, the China’s reaction was also not long in coming. In May 2021 PRC’s Ambassador Li Ziming warned Dhaka that its joining the Quad would cause significant damage to its bilateral relations with Beijing. Responding to this statement, the Foreign Minister of Bangladesh, Dr. Abdul Momen, assured the Chinese side that Dhaka adheres to a balanced foreign policy and non-alignment course. Moreover, the Quad countries haven’t yet approached Bangladesh on this issue but, according to the Bangladeshi official, Dhaka will determine the course of its foreign policy in the interest of its people itself.
Considering the gradual building of the Quad into a military coalition, as well as the growing number of pro-American articles in some of the media in the region, Beijing’s reaction is quite understandable. Moreover, the verbal duel didn’t lead to dramatic deterioration of bilateral relations between China and Bangladesh (the next month after the Quad incident, «Xinhua» reported that Dhaka and Beijing had agreed to expand their already close military cooperation). However, Dhaka’s reaction has become a marker of its growing regional influence, as well as the PRC’s close attention to India’s active engagement as one of the Quad sides with other countries of South Asia and the Indian Ocean, including Bangladesh and Sri Lanka.
Due to increased competition of non-regional actors in the Indian Ocean and South Asia, India and the regional countries face a number of challenges. On the one hand, the variability of the Indo-Pacific vision shared by the Quad countries gave New Delhi more weight, but led to increased rivalry in its «area of responsibility» and damaged the relations with China. On the other hand, New Delhi is skillfully taking advantage of the opportunity, using its increased influence to strengthen relations not so much with the United States, Australia and Japan, but with its neighbors in the region. The clearest expression of this is the emerging strategic triangle between India, Bangladesh and Sri Lanka, which has significant political, defense and economic prospects.
In view of the fact that the PRC considers India as its main competitor in the Indian Ocean, and their further rivalry with high probability will take place in the struggle for the loyalty of small intraregional states, the idea of a strategic triangle with Bangladesh and Sri Lanka can be a successful preventive game on the part of New Delhi. Still, it is too early to talk about the full commitment of the two countries to India’s foreign policy vision. Of course, Bangladesh and Sri Lanka are interested in a stable and secure environment in the region, but in the short and medium-term outlook, they will continue to avoid the excesses in relations with larger powers, using the competition of India, China and a number of non-regional actors to attract the essential funding.
From our partner International Affairs
The Need for Feminist Foreign Policy in India
As more and more research is being done, there is a definitive link that connects gender equality with international prosperity and welfare; giving an equal opportunity for half the population can’t be just out of moral obligation. It is necessary for the economy and security of a nation. Currently, with resources that are in short supply, the way to maintain a good governance, growth in the economy, health, peace and security is to invest in women and girls. Various countries are promoting gender equality through development, diplomatic and security activities. Countries like Sweden, Canada, France and Mexico have adopted a comprehensive foreign policy that advances gender equality called “Feminist Foreign Policy.” India as a rising great power has to consider a more inclusive foreign policy.
Gender is hardly recognized or given importance when it comes to policy conversations, even though it plays a significant role in peace and security. It is often considered that it side-tracks the main problems with regard to international security and great power competition. However, there is no need for the contradiction between the two. A sign to see how far gender equality is embedded in society is to know the number of women in leadership positions, specifically in departments of security or even the academic study of security where the number of women is less.
According to research, women’s engagement in economics, politics, peace, and security procedures will result in stronger economic development, fewer human rights violations, and peace. Women empowerment is important for a country that aims to promote global security, increase the use of their foreign aid and continue to support stable and democratic allies. In the previous decade, numerous nations have adopted gender mainstreaming in their foreign policy. The critical areas of progress that have systematized gender equality are administration, strategy, and resource management. This comprehensive effort of bringing in gender equality in foreign policy is called as Feminist Foreign Policy. A foreign policy with a political framework focused on the security and safety of the marginalized community can be defined as a Feminist Foreign Policy.
The approach for defining and adopting a Feminist Foreign Policy will vary between counties and regions, depending on their lived experiences. However, that a conversation on Feminist Foreign Policy is an important one is under no debate, happening at a time when gender norms are evolving in our society. In the present-day scenario, there are countries around the world have laws preventing women from carrying out jobs in sectors like mining, manufacturing and construction, and millions of women live in countries where domestic violence is not punishable, gender mainstreaming in broader policy objectives and wider adoption of FFP can shape the future of our civilization.
In India’s foreign aid and assistance gender can be highlighted in bilateral as well as through multilateral institutions, directly impacting the neighborhood, as well as partners in Asia, Africa, Eastern Europe, Latin America, the Caribbean and Pacific and Small Island countries.
In a historic feat, India was elected as a non-permanent member of the United Nations Security Council on June 18, 2020. Following that, India also became a member of the prestigious UN Commission on the Status of Women in September 2020. India committed to pay attention to its efforts on peacekeeping, peacebuilding and women’s inclusion. In August, 2021 India assumed a month long UNSC presidency where it ended with its first resolution being passed on the Afghanistan situation demanding that the territory not be used for training terrorists. India’s diplomatic framework has embraced tools for soft power. The strategic moves taken up by India can be seen as step towards uplifting women.
A feminist foreign policy would give India a chance to create a beneficial surrounding for peace, remove domestic barriers against women, and also help in building strong bilateral partnerships. With India being surrounded by adversaries along its borders, this approach would also allow India to show itself as a nation that gives importance to various issues; have a better performance in indicators and indexes that are curated to assess the development of countries and gender gap such as the Global Gender Index and Gender Inequality Index; set an example for other nations and contribute continuously towards women empowerment.
It could also be a starting point for an internal shift with regards to India’s domestic context, particularly in terms of preconceived patriarchal gender roles, in which women are seen to be inferior to men. Empirical research has mentioned that for a progressive social and economic development of a nation, gender equality is a requirement. By removing the prevailing barriers that restrict the participation of women and other communities that are marginalized, India would develop a more inclusive policy. Domestic policies need to have a gendered lens that can protect the marginalized. Without having a balance internally, a feminist foreign policy will not sustain.
An FFP will give a major boost to the country’s international relations when its committed to women empowerment and extensively build a stronger partnership with countries that have adopted feminist foreign policy, for example, countries like Mexico, Canada and Sweden or those that are supporters of gender equality. Thus, FFP would allow India to deepen its commitments and make an impact as an emerging power.
Giving importance to human security and gender issues, would put India in a better position to achieve its international power ambitions. India slipped to 140th rank from 112th in the World Economic Forum’s Global Gender Gap Index 2020 – 2021. This is primarily due to the lack of political representation, absence of technical and leadership roles, inequal income, reducing women labour force participation rate, lack of proper health care and the literacy ratio gap between men and women.
A major boost for India would be a significantly better performance in the Global Gender Gap Index. This would lead to India becoming a role model for various countries. India can be an example by achieving gender parity in a variety of social indicators that is very important to assess a country’s development.
India’s record on women’s rights—or rather, women’s oppression—makes it far-fetched to quickly and successfully take on an FFP structure. Man-centric qualities are so profoundly instilled inside Indian culture that India has barely figured out how to achieve an adjustment of the arrangement of disparity at home. Subsequently, it does not have the credibility to take up feminist qualities in its international partnerships. An FFP approach may not just help India in cultivating imaginative ways of reasoning, yet in addition permit it to expand upon its traditional perspective on security, work with various representations, and develop strong bilateral partnerships.
Before adopting a Feminist Foreign Policy, India also needs to bring a change within the policies of the country. It is crucial for women to shape the outcomes and can’t just be receptacles, especially in peacebuilding, reconstruction and rebuilding. There are more women joining the Indian Foreign Service, but the Ministry has to make sure that they are taken up to the highest rank. The thought that women can’t handle challenging issues must be changed.
A feminist foreign policy would provide equal opportunity and basic human rights to women, girls, and other marginalised communities. A feminist foreign policy will aid India’s bilateral and multilateral alliances, as well as its attainment of great power status. For a feminist foreign policy to succeed, a country must first establish gender equality within its borders.
Gender is clearly a significant factor in India’s development assistance. It must, however, be expanded to include other aspects of economy and security. Gender equality must be implemented within India. More women in government are needed.
Crisis in Sri Lanka and The India-South Asia Challenges: Way Forward
Authors: Dr Aditya Anshu and Nipun Tyagi*
Lot of articles and theories which are describing the current state of Sri Lanka and major factors that contributed towards the deteriorating performance of Sri Lankan economy. The ongoing Sri Lankan crisis has been examined by experts from global economic perspective and regional security but India as a country faces multi-faceted challenges, which must be managed sensibly. The approach of India should be balanced and crafted politically as well as diplomatically to protect the strategic Indian interest in Indo pacific region and to counter the influence of China and its expansionist policy.
To believe economist and experts on Sri Lanka, the blame initially was colored upon the COVID 19 pandemic for economic fall and disparity that engulfed the Island nation. It was argued trade has been adversely hit, the foreign remittances from the tourist were near to none, which possibly caters biggest foreign currency deposit. To add, the series of deadly bomb blast in 2019 at Colombo could be direct possible connection towards the decreasing number of tourists in Sri Lanka. Hitherto no expert or possible specialist cared to argue the failure of Rajapaksa brothers far-right nationalist policy of last 10 years was creating a liability trap for Sri Lanka along with creating deep cleavage in peaceful multicultural society.
The ramifications of the ongoing war between Ukraine and Russia are also creating difficulties and is one of the other prominent factors for the sluggish economic conditions of Sri Lanka. The Russia – Ukraine war has further exacerbated the economic calamity of the country as Russia is the second biggest market to Sri Lanka in tea exports. On the other hand, Sri Lanka’s tourism sector is heavily reliant upon these two nations for the tourist arrivals. As a result, the Ukrainian crisis has further created an adverse graph of already ailing economy of Sri Lanka.
When Rajapaksa-led governments, liaising with extremist Buddhist ideology, entered with full majority in Sri Lankan political regime post 2009. This resulted in the end of over the ground ethnic persecution of Tamil and other minorities community. However, the persecution and intimidation continued in more subtle and systematic way for Tamils and other minority groups resulting division, hate and selective development. Being anti-minority became the symbol of jingoistic nationalism which helped Rajapaksa winning elections for next two decades.
On the Indian domestic front, Congress and other opposition parties are comparing Indian economy and its slothful growth with Sri Lankan crisis and blaming government for inflation, food crisis, rising unemployment and imbalance of economic situations. Significantly, inter-religion conflicts, caste division, income disparity and rising unemployment in India has been severely criticized by opposition parties and civil society groups drawing similarity of parallel class conflicts in Sri Lanka during the period of 1990 till now. The political parties alleged that ruling BJP is adopting the same Sri Lankan pattern to prosecute the minorities and ignoring economic turbulence which can be resulted for crashing Indian economy in the long run. But in view of scholars and academics it would be too early to comment on the opposition political parties assertion on government and about the Indian economy’s performance, nevertheless India needs to seriously monitor the situation with caution that is developing in Sri Lanka on various-fronts.
The first and the foremost issue which needs to be handled cautiously will be that of displaced migrants landing on Indian shores. The impact of the Sri Lankan crisis can increase the burden of refuges towards India. It will be very challenging for India to absorb the possible migration from Sri Lankan for food, shelter, and job opportunities; creating clusters in southern cites in which they can be deprived of basic human needs and rights. To cater women and children will not only be tasking for India but also can create a situation like Rohingya crisis. The proximity of Sri Lankan peoples to southern Indian states can help them to enter Indian territories which may disturb the sovereignty, regional stability, and could be the cause of national security of the country. “There is no accurate data on the number of refugees, but India has about 400,000 refugees including 238,222 recognized and documented refugees according to the United Nations High Commissioner for Refugees (UNHCR) Report, 2021.
The second issue of concern for Indian government is to handle security challenges, regional security, peace and maintenance of law and order in India and South Asia. There are several reports which indicated the presence of Islamic State (IS) and other terror outfits active in southern states of India which can manipulate and employ the poor migrants landing on Indian shores for terror and illegal activities. Investigation in a series of cases by the National Investigation Agency (NIA), a federal agency to counter terror has revealed numerous times about the strong presence of Islamic State (IS) in the southern states of India. The Ministry of Home Affairs confirmed in the Rajya Sabha (Upper House) of Parliament on 16 September 2020 about 17 cases registered related to the presence of Islamic State (IS) by in southern States of Telangana, Kerala, Andhra Pradesh, Karnataka, and Tamil Nadu resulting to arrest of 122 accused.
There is no doubt that deep set networks for terror finance, extreme ideology and human resources connected with Sri Lanka exist in parts of Southern India. It is already evident after the terror events of 2019 in Sri Lanka and activation of all these will spell potential threat to security of South-Asia in general and India in particular. The IS and other terrorist organization may take the advantage of internal violence and fragile administrative capability in Sri Lanka and can become serious threats for India’s national security.
To extend further, it would be very dangerous for the country like India to have the political and economic instability in neighboring countries as near as Sri Lanka. This might trigger a ‘domino-effect’ in the region, creating socio-economic imbalance in South-Asia. The recent political and economic changes in Sri Lanka have created a threat for India’s vision for regional stability and security in South-Asia region. In 2014 government of India launched Act East policy focusing on boosting economic co-operation, building infrastructure for greater connectivity, improving important strategic & security ties, and Greater focus on defense cooperation with East and Southeast Asia countries. India’s ‘Neighborhood First’ policy towards Sri Lanka had resonated with Sri Lanka’s ‘India First’ foreign and security policy in 2020. Therefore, the role of India becomes very important as well as challenging, to help the Sri Lanka maintain its peaceful internal order and to counter the debt trap policy of China.
Geopolitical experts have also argued that India can make use of this opportunity to revamp its diplomatic ties with Sri Lanka, which have been at distant owing Sri Lanka’s proximity with China under Rajapaksa’s rule. It would be strategically and geopolitically important for India to extend assistance to Sri Lanka during this crisis times for a better and conducive atmosphere in southern Indian ocean area.
Sri Lanka’s economic collapse may be an opportunity for India to swing the pendulum back with massive financial assistance to Sri Lanka. This has been followed up with India’s four-pronged economic and financial assistance approach to Sri Lanka. It includes credit lines for the import of food, fuel, and medicines; currency swaps to boost foreign exchanges; modernization; and holistic investments, in the sectors of renewable energy, ports, logistics, infrastructure, connectivity, and maritime security.
As a friendly and cooperative neighbor, India must carry multiple role and responsibility for Sri Lanka’s political stability, economic recovery, and strategic security where with right-intent diplomatic strategy is the key to determining India’s geopolitical influence in the region to counter interventionist China and its not so friendly policies. We cannot ignore the fact that turmoil in Sri Lanka is always perceived to influence India. That was in a speech by the then US Defence Secretary Robert Gates in the 2009 edition of the “Shangri La Dialogue”, when he said, “We look to India to be a partner and net provider of security in the Indian Ocean and beyond…”. It is the time for India to come forward and prove it .
*Nipun Tyagi is scholar of Defense & Strategic Studies and Currently looks the International Office at Bennet University, India.
Understanding Current Economic Havoc in Pakistan
Economic position of Pakistan is incompatible with its economic potential. It has wide range of natural resources encompassing, reserves for chemical, industrial, and textile businesses. It also possesses prevalent network of rivers i.e. support for agro-production and huge potential of hydroelectric energy generation. As well as, it has opulent mountainous ranges containing precious minerals like copper, gold, granite etc. Above and beyond, the country is rich in other economic ignitors like agro-industry, livestock, construction industry, tourism, and small manufacturing industries. Despite such huge economic capability and ingenious global-market-penetration capacity, the country still fails to turn its status as a developed economy.
Surely, one will eagerly strive to dig out the stumbling block that halts economic development in the country. Reason is apparent i.e. archaic, oblivious and biased policy mechanism, comprised of, obsolescent policy framework, egocentric political frat and inapt intervention of transnational entities in policy structure.
Policymaking fraternity in Pakistan seems inept at managing the crisis with prescience due to unawareness of modern-global policy making tools. They appear to be inexperienced in dealing with the colossal economic disorder because of frail strategic approach for resource management and lack of expertise to prioritize best choice during policy formulation. This incompetence, in policy machinery, paves the way for an unending jumble of economic crisis in the state.
Moreover, the policies in Pakistan remained prey of vested interests of political leaders. The elected public representatives appear to be more focused on personal gains regardless of public welfare. So forth, the country’s political culture is transformed from serving people to tug of war for reigns of governance. This paradigm shift in political role of leaders created an environment of wandering competition between different political groups. On one hand certain political groups have joined together to jolt their common opponent through all possible gambits. On the other hand the latter try to revive its governance control by hook or crook. Resultantly, the economic affairs of the state are ruined by the unsympathetic leaders, who, deemed to fail in addressing the remedies to eradicate the current economic turmoil from the country.
Additionally, the transnational companies cause a severe threat to economic activity in Pakistan. They play a major role in downgrading the policy making process in the country. The companies influence the policy makers to drive the policies in their favor to boost their market share for retaining their decades-long monopoly in open market. This monopolized market structure minimizes the opportunity for new entrepreneurs and creates a gap in demand and supply of commodities. Resultantly, a market in-equilibrium appears in the country which further exaggerates the rise in prices and leave people with minimal choice of commodities.
Consequently, the above perils drowned the country into economic catastrophe. Foreign debt burden, imbalance of payments, high inflation rates, low production and depreciation of currency created a dilemma of muddle for financial institutions of the country. Most of the industries including automobile, textile, stock market, agricultural production and transportation are at the brink of fiasco. The incumbent government is looking feebly towards IMF for bailouts on hard conditions that further will increase debt burden on the ex-chequer of Pakistan. State bank reserves are declining swiftly. Consequently, tax burden on public commodities is increasing day by day. Simultaneously, consistent increase in dollar rate puts pressure on Pakistani rupee. Import of products like Mineral fuels including oil, electrical equipment, iron, steel, pharmaceuticals, Animal/vegetable fats, oils, waxes, plastics, plastic articles, organic chemicals, oil seeds, in short, each and every commodity of day to day utility has become more costly. Down to that an overall inflation is raising its head which further ignites poverty in the country. Moreover, hike in petroleum prices owing to twofold reason i.e. global price increase due to Russia-Ukraine War and IMF conditions to impose petroleum development levy, aggrandized heavy tolls on transportation, food industry and other economic activities around the country.
Thus, for a prosperous economic state, it is need of the hour to ponder over the above roots of the current economic turmoil and eradicate the menaces with prudence and efficient manner. Policy makers should adapt modern approaches while policy formulation. They should include most of the options with clarity and succinct way to remove all kinds of uncertainties and to prioritize the best one amongst the chosen ones for implementation. Politics should be for public service not for self-interests. Political groups should reevaluate their vision and endeavor for the country to make it a shining star in the galaxy of the world. Policy implementation should be equitable and equal. Intervention of transnational business groups and pressure groups in policy procedures should be condemned. Market competition must be supported through easy and doable policies for new entrepreneurs. So that, a healthy competition between the entities may be created to maintain market equilibrium and eradicate monopoly of fewer business units.
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