Economic interests driving security policy
In the recent times, many countries are using trade as a means of ensuring national security.
Some of the world’s ‘super economies’ have used trade-based security as an alternative to the military.
Economic ties between countries should be exempted from facing the brunt of political policies.
Normally, economic interests of a state dictate it’s security policy, but it is opposite in Pakistan’s case.
Fortunately for Pakistan, the diplomatic ties with China have led to an enduring partnership focusing on economic growth in the region.
However, we have been unable to develop trade relations with our neighbouring countries- India and Afghanistan, despite the tremendous upside.
Pakistan is the world’s third largest cotton consumer and imports from India form the basis of our textile exports.
Nonetheless, the crisis between India and Pakistan has halted the $822 million-a-year trade in cotton as traders are uncertain about signing new deals.
The nuclear neighbours have been suffering from an on-going clash that escalated after violence erupted in Indian-held Kashmir, leading to verbal war between the civil and military leadership from both sides.
Trade between two nations can only take place during peaceful conditions, said Salman Shah, former caretaker Finance Minister of Pakistan, while talking to DNA.
“Free trade is beneficial to all countries and has an imperative advantage but with India, there is a lot of deception involved in the negotiations,” he said.
Furthermore, there are a lot of restrictions from India’s side when it comes to encouraging trade with Pakistan
“India has created hurdles for Pakistan by imposing sanctions and barriers to exports,” Shah added.
Pakistan and India’s relationship has always been sour and the unresolved Kashmir issue continues to remain an obstacle, preventing the regional trade to progress.
However, the neighbours, for the sake of regional economic growth, must not let economic interest be driven by their security policy.
“Pakistan and India should share responsibility equally when it comes to resolving the matters,” said Sakib Sherani, a former economic adviser to the government, while talking to DNA.
There has been a long history of competition with India, however, Pakistan is less reactive as compared to entities across the border, he said.
“Pakistan has shown compromise despite India’s aggressive approach and claims of cutting down the water supply,” said Sherani.
On the other hand, Pakistan has failed to establish trade relations with other neighbouring countries as well.
Last week at the Brussels Conference, Afghanistan won financial pledges worth $15.2 billion until 2020, including half a million dollars from Pakistan.
The Ghani-Abdullah government has inclined towards building strong ties with India; even supporting the latter’s decision to boycott the SAARC summit in Islamabad.
Despite giving almost a billion dollars as development assistance and hosting over 1.7 million registered Afghan refugees, Pakistan’s relations with Afghanistan remain hostile.
The biggest hurdle in the way of normalising Pak-Afghan relations has been Pakistan’s decision to not allow Afghanistan two-way trade with India over land-route.
“A country’s economy can flourish in a conducive environment, but Pakistan is not export-oriented and has been unsuccessful in developing trade relations with Iran, Afghanistan due to political reasons,” said Salman Shah.
Nonetheless, cordial relations between Pakistan and Afghanistan are vital for the region’s economic progress and prosperity.
In the recent times, many countries are using trade as a means of ensuring national security.
Some of the world’s ‘super economies’ have used trade-based security as an alternative to the military.
Considering the current dynamics, the most viable ‘survival tactic’ to save Pakistan’s economy is to take advantage of the trade opportunities with China, said Salman Shah.
“Pakistan’s business community has neglected the opportunity that comes with developing trade relations with China,” he said.
“National security is a top priority for every country, however, it should not have an impact on economic interests of the states,” Shah added.
The national security strategies of the neighbouring countries must involve the idea that trade could bring prosperity internally and promote peace internationally.
Pakistan needs to prioritise economic growth and development in order to compete with the growing economies of its neighbouring countries.
The commonality of interests with China has helped Pakistan to invest in development projects to ensure economic stability and boost energy production.
Furthermore, China has encouraged the conflicting neighbours to resolve matters through dialogue for shared economic prosperity.
Pakistan is facing a water and energy crisis and it must create a power sector that proves beneficial for the state.
The top priority of our leadership must involve developing policies that ensure that Pakistan’s export industry thrives and becomes able to compete in regional markets.