R Krishna Das
Armed forces of any country combating to bring the economy on the right track are not usual occurrences. But the Pakistan Army is trying to test it!
In an unusual move, Pakistan Army Chief General Qamar Bajwa has reached out to America to fasten loan disbursement from the International Monetary Fund (IMF). India’s neighbouring country that has been under the scanner for allegedly harbouring terror is passing through the worst phase of economic crisis.
The situation worsened after the Imran Khan government was ousted reportedly on the plot prepared by the Pakistani Army that has considerable sway in the country’s politics. Pakistan however sits near the top on the list of unfortunate economies that markets think might soon follow Sri Lanka into debt default and economic crisis. For, it too relies heavily on imported food and energy.
As commodity prices have soared, its current-account balance has widened and hard currency has drained away. In the past year, Pakistan’s foreign-exchange reserves have shrunk by more than half, to just over $9bn, about six weeks’ worth of imports.
The Pakistan army has however swung into action. Not to crush the unrest in the country but to bail it out from the economic crisis. General Bajwa’s phone call to US Deputy Secretary of State Wendy Sherman was part of Pakistan’s efforts to avoid a default. The Army Chief wanted White House and Treasury Department to push the IMF to immediately supply nearly $1.2 billion that Pakistan was due to receive under a resumed loan program.
The appeal of General Bajwa will also have diplomatic significance as its trusted partner China will keep a close eye. However, Beijing will not like to accept the US helping out Pakistan to overcome the financial crisis for two reasons. Firstly, it will put China’s credibility at stake for failing to save its partner after Sri Lanka. Secondly, it will not entertain the US having an impact on Pakistan security.
Former Prime Minister Imran Khan, considered close to China and anti-US stand, has lashed out at the Army Chief for “begging” before the Americans. “If Bajwa is calling Americans to get help from the IMF, it means we are weakening,” Khan told a channel. Otherwise, this is not the job of Army Chief, he added.
Economists too admit that when a country asks the IMF for help, it means it is facing a major economic crisis.
But the question now arises whether the US will help Pakistan on the call of the Army Chief. For, the US right now has no keen interest in South Asian affairs after pulling out its troops from Afghanistan.
