US wants Pakistan relations to be on ‘solid footing’
Good news for Pakistan’s beleaguered economic managers, or at least what passes for good news around here these days. The US has stated that it wants to maintain relationship with Pakistan on “solid footing”, for which they would continue the Coalition Support Fund (CSF) programme to reimburse the cost Pakistan incurs in support of war on terror. Though the programme is not an aid or loan, it is important for Pakistan as the money received from the CSF has been used to boost the country’s foreign exchange reserves, among its other benefits.
The move would also be welcomed by the military that is fighting a spillover of war on terror within Pakistan’s borders, a spillover that has become a full-fledged war on its own. Not only will the decision allow them to keep on footing the bill, it will also make sure that they keep on getting necessary equipment and personnel training, as part of the deal. However, as the US is leaving the neighbourhood in about a year, Pakistan should keep in mind that too much dependence on the CSF will not be forthcoming sooner than later. What they need, instead, is to put Pakistan’s economy on the path of rejuvenation so that it can withstand the country’s defence expenditures without external support. This is something the country would not be able to do with the threat of militancy in multiple areas of the country and terrorists having created safe haven in the country’s major cities. That is why handling militancy and extremism should be government’s top priority, simultaneous to a push for improving the country’s economy. What is needed is to focus on ending insurgency in the shortest possible period. Flip-flopping has to give way to firm action, or the government won’t be able to establish its writ and then no amount of CSF or any other assistance would be of any help to us in leading us out of this quagmire.
A country’s sovereignty depends on a lot of things, a major ingredient being its economic health. If the country has no strong economic footing, it would be forced to ask for aid or seek loans from other countries or IFIs. That aid or loan comes with certain conditions, most of which are highly compromising for a nation’s sovereignty. Pakistan has been a victim of this vicious cycle before; it should avoid making the same mistake again. It would be much better if it can work out a way to improve its economy, instead of depending on loan programmes, like the most recent arrangement with IMF that has created such a stir.
