- And Washington’s angle, of course
It was only a matter of time, really, before China’s CPEC investment became a bone of contention with Washington. And now that Islamabad had no option but to go bowl in hand begging to the IMF, the Trump administration is going to squeeze as much as it can out of Pakistan. And the PTI government should have known that these demands would fall in the realms of one, helping wrap up the war in Afghanistan and two, do something about China whose rise is responsible for America’s entire Pivot to Asia posture.
The confusion – Washington’s apprehension that Chinese loans have crippled Pakistan’s economy – persists even though Pakistan has clarified that CPEC repayments will not begin till 2021. Wouldn’t it be good then, in the interest of transparency, to discuss the entire matter in Parliament before going further? Didn’t Finance Minister Asad Umar himself promise to open CPEC books in the House? Why should there be an element of secrecy, especially for a game-changer that will upgrade our infrastructure and put us in the crossroads of the region’s reinvigorated trade? PTI rightly attacked PML-N economic policies, and international deals, that were kept from the public eye as undemocratic. Now it must walk the talk as well.
The matter could not be any more serious. Failure the clinch the bailout will simply tear the economy; hence continued anxiety in the market despite the one-day breather. Of course, it’s unlikely that the developed world would willingly let a nuclear power go belly up. But Pakistan must now prepare for not just serious give-and-take with the Americans, but also harsh austerity from the Fund. Hopefully the government will not waste any more time than it already has, allowing the economy to deteriorate further instead of immediately sorting out the bailout before going about other business.
