{"id":253556,"date":"2023-07-26T20:33:15","date_gmt":"2023-07-26T15:03:15","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=253556"},"modified":"2023-08-31T10:34:22","modified_gmt":"2023-08-31T05:04:22","slug":"c-raja-mohan-writes-why-india-may-not-be-averse-to-uae-rescuing-pakistans-economy","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/c-raja-mohan-writes-why-india-may-not-be-averse-to-uae-rescuing-pakistans-economy\/","title":{"rendered":"C Raja Mohan writes: Why India may not be averse to UAE rescuing Pakistan\u2019s economy"},"content":{"rendered":"\n

Source<\/strong>– The post is based on the article \u201cC Raja Mohan writes: Why India may not be averse to UAE rescuing Pakistan\u2019s economy\u201d <\/strong>published in \u201cThe Indian Express\u201d <\/strong>on 26th July 2023<\/strong>.<\/p>\n

Syllabus: <\/strong>GS2- International relations<\/p>\n

Relevance:<\/strong>\u00a0 triangular dynamics between Middle east, India and Pakistan<\/p>\n

News- <\/strong>According to media reports, the United Arab Emirates has offered to bring significant new investments that could help pull Pakistan out of its unending cycle of economic crises and bailout packages.<\/p>\n

How has the relationship between Pakistan and the Gulf evolved over time?<\/strong><\/h2>\n

The Arab Gulf enjoyed closer partnershi<\/strong>p with Pakistan. It was based on religious solidarity, regular economic assistance, concessional oil facilities,<\/strong> as well as cooperation on regional security. <\/strong><\/p>\n

Due to being a major Islamic nation<\/strong>, Pakistan enjoyed much goodwill<\/strong> in the Gulf. The Gulf rulers enjoyed exclusive privileges<\/strong> in sovereign Pakistan.<\/p>\n

The balance between Pakistan and the Gulf <\/strong>has altered in the 21st century. The Gulf has become richer and Pakistan is becoming poorer by the day.<\/p>\n

Pakistan\u2019s per capita GDP<\/strong> today is less than that of Bangladesh.<\/p>\n

Pakistan\u2019s continuing relative economic decline<\/strong> has expanded the Gulf\u2019s leverage<\/strong> over Islamabad and Rawalpindi.<\/p>\n

Why is there scepticism that the current round of reforms advocated by the IMF will not be implemented by Pakistan?<\/strong><\/h2>\n

Pakistan has a lack of political will for structural transformation<\/strong> of its economy. The Pakistani elite is not interested in economic reform<\/strong>. This is because of their confidence in extracting geopolitical rent from the US, China, and the Gulf.<\/strong><\/p>\n

The rental value of Pakistan is coming down. Pakistan is less important for Washington after the US withdrawal from Afghanistan.<\/p>\n

China remains deeply invested<\/strong> in Pakistan. But, Islamabad is no longer in a strong position<\/strong> to keep a check on India. It has never been as generous as Washington.<\/p>\n

The Gulf is not interested in giving freebies to Pakistan. It wants substantive return.<\/p>\n

Why is it not possible for Pakistan to continue with its business as usual approach?<\/strong><\/h2>\n

The US, in the past, persuaded international financial institutions to have a soft approach <\/strong>towards Pakistan. But, this time it wants the IMF to apply maximum pressure. <\/strong><\/p>\n

The Gulf states and China want Pakistan to get support from the IMF before they can provide financial assistance<\/strong>. Pakistan had no option but to submit to the IMF conditions<\/strong>.<\/p>\n

The IMF wanted to ensure it had solid reform commitments from Islamabad.<\/p>\n

How is the Gulf capital becoming important?<\/strong><\/h2>\n

UAE, Qatar, and Saudi Arabia have emerged as powerful financial actors<\/strong> in the region due to oil wealth.<\/p>\n

It has increased the political and strategic influence<\/strong> of the gulf across the Greater Middle East, Africa, the Indian Ocean and beyond. <\/strong><\/p>\n

South Asia is no exception. Emirati and Saudi capital is flowing into India. UAE and Saudi Arabia at the top of India\u2019s most valued strategic partners.<\/strong><\/p>\n

What is the current status of the triangular relationship between India, Pakistan and the Gulf?<\/strong><\/h2>\n

There has been significant change in the triangular dynamic<\/strong> involving India, Pakistan, and the Gulf countries.<\/p>\n

In the past, Pakistan held stronger ties with the Gulf nations compared to India. However, the current scenario shows a shift in favour of India<\/strong>. India’s engagement with the UAE and Saudi Arabia has gained prominence. It has overshadowed Pakistan’s influence<\/strong>.<\/p>\n

Despite Pakistan’s objections, the UAE invited India’s Foreign Minister Sushma Swaraj to address a meeting of the Organization of Islamic Cooperation (OIC)<\/strong> in March 2019.<\/p>\n

Moreover, the UAE has refrained from criticising India’s decision<\/strong> to change the constitutional status of Kashmir<\/strong> in August 2019.<\/p>\n

The UAE seems to have played a role in facilitating back-channel dialogues<\/strong> between India and Pakistan. It led to a ceasefire agreement <\/strong>in February 2021.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source– The post is based on the article \u201cC Raja Mohan writes: Why India may not be averse to UAE rescuing Pakistan\u2019s economy\u201d published in \u201cThe Indian Express\u201d on 26th July 2023. Syllabus: GS2- International relations Relevance:\u00a0 triangular dynamics between Middle east, India and Pakistan News- According to media reports, the United Arab Emirates has… Continue reading C Raja Mohan writes: Why India may not be averse to UAE rescuing Pakistan\u2019s economy<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[212,10500,239,238],"class_list":["post-253556","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-2","tag-indian-express","tag-international-relations","tag-ir","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/253556","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=253556"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/253556\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=253556"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=253556"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=253556"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}