Pakistan new strategic fit under CPEC

Hassnain Javed

SEPTEMBER 28, 2019

In the present day method of globalization, the sources of threats have additionally diversified, and a multi-dimensional approach is required to address the new challenges. China believes that an army approach to dealing with safety troubles in South Asia will in addition damage the interests of nations in the region. Therefore, the pleasant strategy would be to center of attention on the promoting of economic, social and cultural ties which would be beneficial to unravel these troubles in a non-military way and will additionally promote regional security. This is why China launched the Belt and Road Initiative (BRI) and engaged Pakistan via the China Pakistan Economic Corridor (CPEC).

The tree of Pakistan-China friendship has been developing for many decades. The leaders of both nations have nurtured it passionately with a deep experience of strategic dedication for seventy years now. Together they have weathered all the crests and troughs of their challenging voyage and not noted all the regional and extra-regional pressures. Complementing each other at all worldwide forums, the countries’ leaders, with the aid of their people, ensured that this friendship developed into a strong bond.

Bearing in thinking the consequences of Pakistan’s regional troubles in the past, and the harm prompted because of its navy responses, China has supplied regional connectivity to promote peaceable coexistence. The brand new manifestation of this resolve is the CPEC, a flagship undertaking of the BRI which is promptly attaining every of its milestones. Since the inception of CPEC – a framework for regional connectivity and socioeconomic improvement – Pakistan has regarded ardent for a de facto shift in its overseas policy.

The pursuit of countrywide interests is the major driver of the foreign coverage of any state, and so it has been with Pakistan. For the past seventy years, Pakistan’s countrywide interest has been to try for safety and financial development. Consequently, safety and economic worries have governed the foreign policy of Pakistan. The country’s founder, Quaid-e-Azam, defined foreign coverage like this:

‘Our foreign coverage is one of friendliness and goodwill towards all the international locations of the world. We do now not cherish aggressive designs towards any country or nation. We agree with in the precept of honesty and truthful play in country wide and international dealings, and are organized to make our utmost contribution to the advertising of peace and prosperity amongst the international locations of the world.’

For the first half-decade for the reason that its founding, Pakistan pursued a coverage of non-alignment. However, faced with a number of safety and economic issues, the country’s overseas coverage chart remained unsteady. Ten years on from 1953, Pakistan remained part of the Western bloc. Following the Sino-Indian and Indo-Pak wars, and the resulting Shimla agreement in 1972, Pakistan pursued a coverage of non-alignment and bilateralism. The Soviet invasion of Afghanistan in 1979 pushed Pakistan lower back to US alliances, but the foreign coverage of Pakistan confronted a couple of challenges in the post-Cold War technology after the Soviet withdrawal. However, Pakistan as soon as again joined the US-led bloc as an associate in the Global War on Terror (GWOT) after 9/11.

Over the direction of its history Pakistan has faced many interior and exterior protection threats, and the scenario has end up in addition aggravated in the post-9/11 era. Sadly, due to persevering with instability, heaps of civilians and security personnel have died and as a result the usual progress of improvement in the country has come to a standstill.

How can Pakistan get out of the contemporary crisis, and what role can neighbouring international locations play in this regard? Pakistan and China are two necessary countries of South and East Asia and their collaboration is consequently vital for the establishment and preservation of balance in this essential location of the world.

A broader shift in Pakistan’s foreign policy has been noted due to the fact the launch of CPEC. The goals of CPEC are in line with the tenets of overseas coverage of Pakistan, namely: (1) develop friendly family members with all countries, in particular instant neighbours; (2) safeguard national safety and geo-strategic interests, such as Kashmir; and (3) make sure the ideal utilisation of country wide sources for regional and worldwide cooperation.

CPEC is now not a bilateral venture between China and Pakistan, but it will have a nice affect on the entire region. Rapid growth in the tempo of CPEC tasks has modified the dimensions of Pakistan’s overseas coverage with its neighbouring countries and different states in the region. In the wake of CPEC, the multiplied safety state of affairs in Pakistan has made it an appealing destination for overseas direct investment (FDI). Tajikistan, Iran, the UK and many different nations have expressed their willingness to be part of CPEC. Meanwhile, Pakistan has invited Turkey, Saudi Arabia and Russia to be part of CPEC.

Instead of paying heed to the moves of the US and India, Pakistan overseas coverage has targeted on regional integration, peaceable coexistence and socioeconomic development

It is the first time in the history of Pakistan that the execution of a venture has remained safe from political traits and regime change. Moreover, Pakistan has an independent foreign policy to promote regional integration and stability. In the past, it was financial dependence on the US and safety worries that generated Pakistan’s overseas policy. However, signing up to CPEC with the world’s second-largest financial system has raised Pakistan’s reputation in the world world order. Pakistan has initiated a friendly gesture closer to two rival states – Iran and Saudi Arabia – by inviting them to be part of CPEC.

Saudi Arabia is eager to set up an oil refinery at Gwadar port. Meanwhile, Iran has declared that its own port of Chabahar is now not a rival to Gwadar. Pakistan has welcomed these strikes for the greater regional interest, which can also help mitigate regional conflict. Moreover, unlike the past, Pakistan’s foreign coverage is neither primarily based on financial dependence on the US nor is it India-oriented. Despite America’s withdrawal of navy useful resource and Indian opposition to CPEC, Pakistan has not tried to please the US and continues with the implementation of CPEC.

China and Pakistan each favor Afghanistan to be part of CPEC. Pakistan is pursuing an overseas coverage of growing a peaceable and steady neighbourhood. In any other spoil with its past moves of joining blocs or being section of a proxy war, Pakistan has facilitated a round of peace talks between the US and the Afghan Taliban. And in spite of India’s aggressive behaviour, Pakistan has dispatched out a message of peace. Instead of paying heed to the moves of the US and India, Pakistan overseas coverage has targeted on regional integration, peaceable coexistence and socioeconomic development.

Strategic cooperation and interdependence between China and Pakistan has extended manifold in the post-9/11 era, usually due to CPEC and Pakistan’s strategic role in the region, and this cooperation will expand in addition in years to come.

Is India planning to change game for Pakistan and China in Kashmir?

Hassnain Javed

SEPTEMBER 17, 2019

Since British India’s partition in 1947, Kashmir, a mountainous valley bordering Pakistan and India, has been a center of the dispute between the two nuclear-armed nations. The British decided to split their former colony into two nations at the moment of the partition: Pakistan, with a Muslim majority, and India, with a Hindu majority. Both countries try to steal and occupy parts of Kashmir with military forces.

An uncomfortable stalemate has persisted for centuries, broken by occasional army incursions, terrorist attacks, and crackdowns by the police. But recently, the Indian government decided to integrate permanently into the remainder of India the land it controls. Prime Minister Narendra Modi’s administration abolished Article 370 of the Indian Constitution, a 70-year-old regulation that gave autonomy to the state of Jammu and Kashmir, including the Jammu region of the Hindu majority and the Kashmir Valley of the Muslim majority. The government also launched a bill to separate the autonomous region and split it into two sections, both under the central government’s immediate command. Shortly after the partition of British India, Article 370 was added to the Indian constitution to offer independence to the former princely country of Jammu and Kashmir until its fate was decided. It restricted the authority over the land of India’s central government. An associated provision gave state legislators the authority to decide who could purchase property and be a permanent resident.

Although it was intended to be temporary, Article 370 states that it can be repealed only with the consent of the legislative body which drafted the constitution of the state. That body was dissolved in 1957, and last year the Supreme Court of India ruled that Article 370 was thus a permanent part of the constitution. The government of Modi disagrees with India’s president on this regard.

Now, keeping in view the current situation it is of utter importance to critically observe the game-changing moves been played by India upon this issue and how it is taking Pakistan and China in spectrum.

CPEC is urgently needed by Pakistan and China. CPEC is the express ticket for Pakistan to develop its infrastructure and maintain economic growth. For China, CPEC is the convey connection between West China, the Middle East, and Africa, where China has increasing policy goals

The US-China new cold war offered an opportunity for Indian Prime Minister Modi to decline: to alter the game for China and Pakistan in Kashmir. New Delhi ended Article 370 of the Constitution back in August, claiming its authority in the disputed region of Kashmir. Moreover, India called on China and Pakistan to cease activities in Pakistan-occupied Kashmir (PoK) linked to the China-Pakistan Economic Corridor (CPEC) this week. As Raveesh Kumar, representative for the Ministry of Foreign Affairs said last week “We reject the link to Jammu and Kashmir in the joint declaration published by China and Pakistan following the latest visit of the Chinese Foreign Minister, J&K is emblematic of India. India has continuously expressed skepticism to both China and Pakistan over the projects in the so-called China-Pakistan Economic Corridor on India, which has been illegally occupied since 1947 by Pakistan.”

CPEC is urgently needed by Pakistan and China. CPEC is the express ticket for Pakistan to develop its infrastructure and maintain economic growth. For China, CPEC is the convey connection between West China, the Middle East, and Africa, where China has increasing policy goals. That really can explain why $46 billion was entrusted to the project by Beijing.

The issue is that India asserts that CPEC passes through Pakistani areas. That makes it, to put it mildly, a lumpy road – Pakistan and India are still fighting for these regions ‘ control. It is among the major concerns for CPEC operations in the region to progress slowly. Upon closer inspection, CPEC activity in Pakistan has so far been restricted to the restoration and preservation of the Karakoram Highway, constructed in the 1960s. However, India voiced opposition to new condominium projects, including railways and pipelines. The issue for China is that the only other viable path would be through the Badakhshan aortic arch of Afghanistan for highway, rail and pipeline links to Pakistan and its ports. This is practically impossible due to Afghanistan’s political uncertainty and diplomatic alliance with India and the US. Nevertheless, the latest developments by India in Kashmir could ruin both countries ‘ plans, particularly for China, which has numerous boundary conflicts with India.

In its CPEC initiative with Pakistan, China is likely playing it safe with its latest reference to Jammu and Kashmir.It is noteworthy that here China is taking a slow but steady strategy. In the South China Sea, China was rather assertive, but the Himalayas is another story. Primarily, in regards to the conflict over Kashmir with Pakistan, India is also disputing Chinese sovereignty on its shared frontier in several parts, including the Aksai Chin area adjacent to Kashmir and Arunachal Pradesh on the Tibetan frontier. The Chinese and Indian governments, therefore, have a mature relationship but are keenly conscious of the danger of any intensification.

Furthermore, in Southeast Asia, China cannot “bully” India, the way it bullies other countries. In this situation, it is unlikely that India will be intimidated. India is not only a big nuclear power but also an economic competitor, particularly as Global companies change supply chains from China because of U.S. trade sanctions.

And that is why, rather than challenging India, China should pacify. “The Chinese government considers that substantial infrastructure development advances in the Pakistan-controlled region of Kashmir would lead to major conflicts with India, including probably a suspension of diplomatic relations. Conflict confrontation in the region would also have the effect of pushback on China through its effect on the global economy. This leads me to suspect that at this stage, China is unlikely to push the issue.

Is Kashmir independence the real issue: the game behind Arab-Israel-India nexus?

Hassnain Javed

SEPTEMBER 4, 2019

Recently, Jerusalem Post, the most strong and Likud Party-controlled newspaper, held a meeting on advancing Israel’s narrative around the globe in a room complete of Zionists in Tel Aviv Israel. Just enough. Right? They are entitled to pursue their agenda just as one would believe every nation does. But when Dr. Mike Evans, the founder of “Friends of Zion Heritage Centre,” took the dice and began his lecture, the curveball came in. “I met UAE MBZ (Mohammad bin Zayed), I met Saudi Arabia MBS (Mohammad bin Salman), and these two rulers are more pro-Israel than many Jews in the globe,” he said.

This pushed the cat out of the Muslim world’s box. Ummah’s so-called suppliers. Well, if KSA wanted to have connections with Israel that’s their absolute decision, but the problem here is that we as Muslims have been told for centuries that we would stand with Muslim countries until Israel’s Zionist-controlled government ends its nefarious designs against Muslims in general and Palestinians in specific. And let me write here very categorically that the difference between the Jews and the Zionists is the same between the Muslims and the ISIS.

Not all Jewish people are Zionists. Zionism is not a religion, but a political ideology that came into being in the early 1900s. While religion, for 2,500 years, Judaism has been around. I’ve dealt with, done company, educated, and educated the Jews on Wall Street. I have never had any issues with them, nor have they ever had any issues with me. But the representatives of the Israeli mentality are certain elements within the Jewish community, the Zionist elements camouflaging around and about as regular Jews. Even the Zionist doesn’t like the Jews. Just like no healthy Muslim would ever back the ISIS.

So it’s like shaking hands with the Zionists with the devil himself. Just because the Zionists have Israel, it doesn’t make them peaceful and caring for peace. In America, 10,000 Jewish rabbis signed a petition against the Israeli government’s Zionist designs. So much so that all over the globe they held a one-day protest of solidarity against Israel. From London to New York to Sao Paolo in Frankfurt. But they got little to no coverage from the media, of course. But nothing can be concealed in this day and age of social media, nor was it hidden. The globe can see it all over the internet.

Now back to the nexus between Arab-Israeli and Indian. It’s no secret that the both University of Tel Aviv and University of Haifa in Israel have helped the Indian government through their strategic study cooperation to form policy towards Kashmir. Israel has decades of Palestinian experience. Which better nation to assist India occupying Kashmir than Israel. Time tested manoeuvres, time tested methods and time tested to teach India overt and covert diplomatic and war footing methods. Benjamin Netanyahu praises publicly and calls his greatest friend in Asia to Narendra Modi.

KSA stands to gain, by forcing India strategically to cut its connections with Iran, it stands to gain the most. By providing to invest in the Indian oil industry, it helps India indirectly reduce its reliance on Iran’s purchase of oil

The Indian Air Force has programs of shared training with Israel. The Indian nexus of Silicon Valley is well known, we all understand. On the other side, KSA is the Muslim world’s “alleged” leader. To a majority, at least. To destroy the world’s two oldest conflicts, Kashmir and Palestine, what better option than neutralizing KSA along with the entire GCC, isolating Israel & KSA’s only declared foe, Iran, and isolating the only Arab GCC member that KSA has an issue with, Qatar, along with Iran. On the other side, Pakistan has been helped monetarily by the UAE under the heavy debt burden and financial slowdown, and KSA becomes much easier to manage when it comes to Kashmir by the KSA and UAE rulers. KSA promises to spend $75 billion in an Indian oil giant Reliance and tells the world that it is pursuing its connections with India.

Besides all that KSA stands to gain, by forcing India strategically to cut its connections with Iran, it stands to gain the most. By providing to invest in the Indian oil industry, it helps India indirectly reduce its reliance on Iran’s purchase of oil. That also makes America happy. Isolating Iran is America’s greatest goal. The way to get her down to her knees is to kill her economy.

Here are some of the opportunities that can occur in the very close future in my mind. Maybe in a few weeks to a couple of months. Benjamin Netanyahu could visit India to indirectly prove to the globe that Israel stands with India in Article 370 mess. Mind you, Israel rarely does anything without American permission, or should I say, so indirectly if Netanyahu visits India now, it reflects America as well. The second option, which I think will be Pakistan’s poison pill, is that Modi is holding a Kashmir investment conference. In Kashmir, the world, including the UAE and KSA, is announcing enormous investments. The whole world will overlook the 72-year atrocities and concentrate on how India invests in Kashmir and how the Muslim Ummah’s “Supposed” leader also invests in Kashmir. KSA’s announcing a $10 billion investment in Kashmir over the next 10 years is no large deal. America to announce a few trillions more. UAE to announce investments plus possibilities for the Kashmiris to create jobs. Israel announces a Tech Hub in Srinagar (farfetched concept but it’s feasible to do anything).

In order to conclude, the announcements of such investments will create so much commotion. Such an investment meeting will receive so much press coverage from the West. So much so that the world will forget Kashmiri’s independence movement and believe that the cash invested in Kashmir should make Kashmiri better. This will also offer Indian nationals a reason to construct, purchase land and take over Kashmir slowly and systematically, which they were never able to do before Article 370 was abrogated. Wake up now or sleep forever in Pakistan.

Is America and India friends? to handcuff Pakistan

Hassnain Javed

AUGUST 18, 2019

Indian economy is $2,600 billion – almost nine times larger than Pakistan. Its foreign exchange reserves worth around $420 billion – 28 times larger than Pakistan’s $15 billion. Naturally, it has more to spend on military – $44 billion as compared to Pakistan’s $7.5 billion. On paper, India is much more powerful than Pakistan when it comes to conventional weaponry, or non-nuclear weaponry. So, as rational actors, let’s accept for a moment that war with India is not a solution to anything, but a key to further destruction.

What do we do then? How can we make India pay for its deeds? What kind of Pakistan can truly bargain a favourable outcome for Kashmiris? For the longest part of our national history, threat from India has kept us overly-concentrated on our security more than anything else. That’s exactly what India desired as well, and we kept falling in the trap, kept neglecting our ‘real’ development, kept India at peace.

We failed to recognize that the genuine source of discomfort for India is not a militarily strong Pakistan, but a Pakistan that is economically strong; a Pakistan that is a healthy democracy and has rule of law; a Pakistan that has high literacy rate; a Pakistan that is free from sectarianism; a Pakistan that has good relations with its neighbours; a Pakistan that invests in its health and education; a Pakistan that invests in research and development; a Pakistan that has functional institutions; a Pakistan that has inter-provincial harmony; a Pakistan where Balochistan is thriving; a Pakistan where FATA is safe; a Pakistan where minorities are respected; a Pakistan that has mature and strong bilateral relationship with super and major powers of the world; a Pakistan that is truly a healthy society and economy.

When we start playing India militarily, we move to their home ground. They will always have more to spend on military, and we will always keep irrationally chasing them without realizing that they are strong because they have more. How can we have more? By investing in ourselves.

The challenge for Pakistan is to play the world powers with ultimate prudence, and for that, it will have to employ its finest minds and utmost potential. Thus, we need to make Pakistan internally strong, and everything will work if not in wrong then at least somewhat in right direction

The fact of the matter is to understand they will appreciate if we believe that our glory lies in beating India militarily. False! Our glory lies only in making Pakistan stronger from inside. Only an economically sophisticated Pakistan can have a stronger bargaining position vis-a-vis India. There is no other way.

If we actually want to resolve Kashmir, and not merely shed tears for it, if we actually desire to have parity with India, if we truly wish to have a Pakistan that uses to its fullest the potential that it has, we will have to improve our socio-economic indicators which are currently competing with Subsaharan African nations. We will have to rise above Gabon and Burundi.

Besides this, America is obliging India through FATF and IMF. Moreover, I have attempted to join the dots of US strategy to prevent Pakistan from taking any action that could potentially harm India’s interests in Kashmir and elsewhere.

There are certain outfits based in Pakistan that have historically waged unconventional war against India on Kashmir. And America, on India’ behalf, wants them gone. So, in June 2018, US and its allies placed Pakistan on FATF grey list on charges of terror financing and money laundering. They also linked the expulsion of Pakistan from the list to Pakistan’s action against “terror” outfits – mostly anti-India outfits – based in Pakistan and Azad Jammu and Kashmir.

FATF is an acronym for Financial Action Task Force. It is an international watchdog against money laundering and financing of terrorism, but its actions are widely believed to have political considerations. Interestingly, after putting Pakistan on grey list, FATF asked the most impartial state there could have been to inspect Pakistan’s performance against money laundering and terror financing – India.

India was made the co-chair of the joint group of FATF and Asia Pacific Group. Asad Umer, the Ex-Finance Minister of Pakistan, had to write a letter to President of FATF, Marshall Billingslea, to appoint any other member of FATF as co-chair in order to ensure that FATF review process was fair, unbiased and objective. He cited India’s repeated calls for isolating Pakistan, clear Indian motivation to hurt Pakistan’s economic interests, its recent violation of Pakistan’s airspace and dropping of bombs inside its territory, etc. to emphasize that India’s placement as co-chair would hurt the impartiality of the review process.

In order to further tighten the noose, Pakistan was threatened that in case it did not take action against anti-India outfits, IMF would not lend money to Pakistan. Furthermore, in case of failure, Pakistan was told that it would be demoted from Grey List to Black List. FATF Black List means that Pakistan would be placed with countries like Iran and North Korea. Blacklisting would’ve had horrendous consequence for Pakistan’s imports, exports, remittances, international lending, banking system, etc. In short, Pakistan’s economy was threatened to face serious consequences, even bankruptcy.

In fact, instead of confining themselves to mere threats, India and US even made an attempt earlier this year to blacklist Pakistan. In June 2019, at Plenary and Working Group meeting in Florida, India, United States, and United Kingdom moved a resolution to “blacklist” Pakistan. Thanks to Turkey’s vote, Pakistan was saved from being Blacklisted.

This entire nexus of collusion between US and India becomes all the more visible if you look at the reaction of US following India’s annulment of Article 370. Therefore, just two days after Kashmir’s annexation by India, instead of condemning India’s action, United States told Pakistan that it will have to show “tangible and satisfactory actions” against banned organizations (mostly anti-India outfits) and their leaderships if it wishes to escape FATF. At the same time, IMF chief in Pakistan reminded Pakistan that “failure to get out of the grey list by FATF could have implications of capital inflows to Pakistan”.

In a nutshell, US strategy is to apparently stay neutral on Kashmir while handcuffing Pakistan through international bodies such as FATF and IMF. This serves India perfectly well because Pakistan will not go for an international war with India but at the same time it will not be able to use the anti-India outfits to threaten India’s advancement on Kashmir. In other words, the goal is ensure that in no way can Pakistan assist Kashmiri uprising while India moves to dissolve Kashmir as a separate entity.

The entire thesis that US has been assisting India in latter’s pursuit of its fascist objectives is further cemented by Indian media reports following annulment of Article 370 that United States had known India’s Kashmir move since February this year. One begs to question: why should we believe that America had only known India’s plan since February this year. I strongly believe that America had full knowledge of India’s annexation plan long before June 2018 when Pakistan was put on FATF. A ground was laid long time ago for India’s Aug 5 decision, and FATF was perhaps the first manifest step in the direction.

In order to conclude it is easy to comprehend on whose encouragement India is thumping its chest in Kashmir. The challenge for Pakistan is to play the world powers with ultimate prudence, and for that, it will have to employ its finest minds and utmost potential. Thus, we need to make Pakistan internally strong, and everything will work if not in wrong then at least somewhat in right direction. For decades now, we have tried military, non-state actors, rhetoric and everything in between. It has not worked. You know what will work? Shunning corruption. Shunning tax-evasion. Shunning the practice of misusing our institutions. Shunning those who have kept us ignorant. Coming together as one nation in building a Pakistan that is stronger inside if we truly want our enemies to cringe, cry, and regret.

The prophecy of Imran Khan visit to us! 0 Shares Hassnain Javed

Hassnain Javed

AUGUST 8, 2019

It seems that as time goes by, Imran Khan’s government’s difficulties continue to worsen. When PTI took over the country’s keys, there were extensive plans to strengthen the economy and reform Pakistan’s bureaucracy among other goals, but it seems they were only very different. It was not possible to control the necessary aim to fill the fiscal deficit and adverse balance of payment after two mini-budgets by ex-Finance Minister Asad Umer. Finally, Asad Umer was voted out of office. In approaching the IMF for a bailout, hesitancy was noted. Calling it unfamiliarity or just simple gross mismanagement by the finance team, Pakistan has officially received the IMF’s 13th bailout package since the 1980s after the tremendous loss of time and havoc. Attempts by the Ministry of Commerce failed to tackle on a separate front the rapidly falling exports. The payment balance became worrisome. Export strategies and the tax break for business and industrial problems were rolled back. The decline in exports was more than any other mechanism during the PTI government. The foreign investment and the negative trend in the price of the Rupee were are one and the same with the export decline. Pakistan’s currency against the dollar has lost more than 30% of its value. After all, it seems that “something is spoiled in the state of Denmark.”

The government had to apply for a $5.8 billion package to all the stringent rules of the IMF to keep the economy going because of all the dissuasive statistics of the economy and policy backfire. The IMF advised the government to initiate an emergency financial plan to increase tax income and plug the fiscal deficit through direct and indirect taxes, along with the cancellation of major public subsidies and assistance packages. The withholding tax has been introduced in many areas to increase the tax net. The withholding tax has been introduced in many areas to increase the tax net. This includes buying cards, buying supplies from a business, worldwide travel, banking, real estate transactions, etc. The business community responded to the implementation of these reforms with an all-out retaliatory stance. From 13 July, traders, shopkeepers and business organizations in the primary cities of the country observed shutter-down strikes. Industrial giants from Honda and Indus Motors (Toyota) have selected to shut down production. In the heat of combat, the question must be asked whether the PTI government is in command or does it do the contrary of what is needed? The ancient maxim holds true that the majority is always inaccurate in a closer evaluation. Pakistan has run its political-point economic structure, ranking values rather than excellent management. Unpopular decisions, such as increasing the tax base, plugging smuggling, and lowering excessive expenditure, have not been made in the past. For the previous 40 years, imports of luxury products have not been confirmed, which installed the harmful payment balance in the first place. Building projects and infrastructure expenditure were supported on the grounds of political constituencies (Halka) instead of promoting a strong economic foundation. Because of fear of retaliation and reaction, medium- and small-scale traders were not brought into the tax net, ignoring that doing so would place additional pressures on the social wage and disenfranchised section. It is no surprise that retribution is facing these thousands of business owners in the tax net when applying the reform agenda. Everyone must share the tax burden, where it is due. The taxpaying one percent of the population cannot run the country alone. The nation appears to be facing the hard truth, the leniency and inaction of the past cannot continue. Land law needs everyone, as mandated by law, to pay their due. Attacks and lock-downs are a marginal price to pay for a better tomorrow, and a better world for future generations will only be viable through these statutory and genuine choices.

The Republicans want to show to the congress that they still have Pakistan on their side in the Afghan solution, while since 2017 Pakistan aims to stabilize the tense situations and encourage Pakistan to play its part in combating terrorist outfits on its soil

On the global front, the PTI government fared better. In short, Pakistan and China made substantial strides towards the epiphany of CPEC and One Belt and Road Project. As Asia’s trading gemstone, Gwadar’s development has enhanced Pakistan and its regional importance. Imports and exports are expected to rise through the port, and the country’s national economy will reap the benefits. Nations around the world were interested in the prospects of CPEC. The progress is closely tracked by the governments of both nations. It is worth noting that in the CPEC and One Belt and Road Project, India has no important role to play as the CPEC route runs through the sovereign territory between China and India. On the other hand, closer ties between Russia and China have increased the potential for strategic progress for Pakistan. President Putin has formally encouraged Imran Khan to take an active role in the Russian Economic Forum. China and Russia have joined hands in One Belt and Road Project, and in their neighbouring border regions connections and diplomatic exchanges are underway. India has been excluded in further progress from the Afghanistan Peace Process, while the US is actively participating in Pakistan in a peaceful resolution of the Afghanistan Taliban conflict. On 18 July, the International Court of Justice ruled the case of Indian Intelligence Agent Kalbusan Jadav in favor of Pakistan. Any evidence presented by Pakistan’s legal team to the Court in Hague has been endorsed. His sentence was maintained and it was decided he was not going to be released and his sentence was going to be valid. It is the diplomatic as well as the lawful crushing defeat of Pakistan over India. In another growth, International Air Space has resurrected, and all International Airlines are back in the habit of the country. Imran Khan visits the United States to meet Donald Trump for the first time in the same month.

Since Imran Khan and Donald Trump took office, ironically, both in a humorous and social context, they have repeatedly been associated with each other. To point out several, it was established that both politicians were energetic, both raised nationalism agendas and transmitted a non-war approach, both of which were celebrities who have become politics with tense marital problems. In dealings with North Korea and Iran, Donald Trump showed pragmatism, while Imran Khan escalated the situation with India and Afghanistan. The Republicans want to show to the congress that they still have Pakistan on their side in the Afghan solution, while since 2017 Pakistan aims to stabilize the tense situations and encourage Pakistan to play its part in combating terrorist outfits on its soil. The U.S. will be asked to change its “Do More” approach to Pakistan and keep a balanced attitude to the Pakistan-India dispute. From here it is obvious that things can only improve. Imran Khan is to show a smiling face portrait of Donald Trump, produced in Multan, with a vase of camel skin on it. Hopefully, they will give their respective people many reasons to smile on the day of the journey.

Pakistan: be penny wise and pound foolish

Hassnain Javed

JULY 23, 2019

On June 11, the Pakistani government revealed its first annual budget for the 2019-2020 fiscal year and was able to pass it only on June 28.The significant delay was due to powerful opposition resistance in parliament that threatened the government with demonstrations over perceived economic mismanagement. Indeed, the current economic condition in Pakistan is stressing. The Pakistan Economic Survey this year, a government-issued report preceding the annual presentation of the budget, framed a significantly different picture of the domestic economy.

There has been a downward trend for nearly all economic indices. The growth rate dropped from 6.2% to 3.3% by nearly 50%. Next year, it is anticipated to go down even further to 2.4 percent, which in the previous 10 years will be the lowest in the country. Since the start of this fiscal year, the Pakistani rupee has lost a third of its value against the dollar. Over the next 12 months, inflation is anticipated to slide around 13 percent, approaching a 10-year-high as well.

Then there is the ever-increasing debt issue, which gobbles up about 30% of the budget each year. Pakistan continued to carry out loans to cover initial loan repayments. It recently signed another deal for a bailout package worth $6bn with the International Monetary Fund (IMF). And in the latest ongoing visit of Prime Minister in the US is expected to bring some more favors.

Besides this, Prime Minister Imran Khan announced the formation of a consultative committee to explore why the nation has so much debt in a televised address after his speech on the budget. But Khan ought not to look outside the budget his own government has uncovered to see where the real problem lies. The nation has low revenue sources and heavy spending on non-development, a perfect recipe for an economic catastrophe.

The Pakistani authorities have been unable to determine efficacious practices for tax collection for decades. Only one percent of Pakistanis are currently paying their taxes, and the nation has one of the world’s smallest tax-to-GDP ratios. Previous governments resisted enforcing restrictions that are more stringent because members of the same elites who were among those actively evading taxes employed them. Not only because of inaction from the state, but also because of rampant corruption, can they do so. Indeed, bribery is easier for them than billing their duties.

The tax burden in Pakistan, therefore, falls predominantly on the poor, who pay indirectly in multiple ways and who are already striving to achieve ends. A third of the country presently lives below the poverty line. Moreover, do one more thing, do not complain either that Pakistan is not making progress. It’s so unfortunate that almost everyone starts speaking about indirect taxes while you’re talking about income taxes. Without investigating without reading anything about how nations evolve and how they have their tax systems in other nations. We gladly offer stories of how excellent Sweden is, how wonderful Japan is, how amazing Denmark’s hospitals are, how excellent Germany’s colleges are, but we never devote second learning how they arrived there. By paying taxes, they reached that point. Income and indirect. Furthermore, Sweden has a tax rate of 61.85 percent. Japan’s tax rate is 55.95 percent. Denmark has a tax rate of 55.80%.A small country like Chad has a tax rate of 60%. Ivory Coast has a tax rate of 60%, Austria has a tax rate of 55%, Finland has a tax rate of 51.60%, Israel has a tax rate of 50.1%, the United Kingdom has a tax rate of 45%, the United States has a tax rate of more than 40%, India has a tax rate of 35.8% and Pakistan has a tax rate of only 20%.We’re still complaining. We’re subverting the government. We’re going on strikes, closing our stores, and stimulating the government’s writ. We are doing everything we can challenge law enforcement.

In addition to income tax, according to the findings of KPMG Global Economy Research, all the countries I mentioned above also have a very high indirect tax. In relation to income tax, Hungary has 27% indirect tax. Denmark 25 percent. Finland 24 percent. Sweden 25 percent. Italy 22 percent. France 20 percent. 20% United Kingdom. India is 18%, while Pakistan is 17%.We get nothing but aimed governments ‘ support to our demands. Pakistan has an annual credit payment of approximately Rs. 3 Trillion rupees. Half of the budget we have. If we do not document this economy, I can assure you that we will be forced to default on our loans within the next 10 years, with inflation and dollar fluctuations plus additional loans and a slow economy.

Those in authority and those enjoying monetary privileges must recognize at this stage that this status quo is economically unviable. The only way out is to implement a fair tax system along with the ever-increasing military budget being cut or at least frozen

And once a country fails, the whole system will collapse, your bank transfers will not be honored. You can devalue up to 500 percent or more of your currency. Your trade ends because your letters of credit are not accepted by any bank. Complete your imports. Without bank LCs, your exports become non-existent. And those who try to save a few thousand rupees a month as tax store owners end up losing millions in their respective business. A proverbial is an excellent example of penny wise and pound foolish. So next time you increase your concern and create excuses for “I’m paying indirect taxes so I’m not going to pay income taxes.” The entire world is paying indirect taxes and taxes on revenue. So if you want the failure of Pakistan. To make your kids homeless. To make your house worthless. To bankrupt your companies. Your currency will be devalued by 500%. Thus, it is called not to pay taxes.

Before coming to power, Khan promised to crack down on tax evasion and corruption, but so far nothing is being done. For instance, he has not put in place any steps to tackle corruption in his own party ranks. It has appeared recently that a minister in Khan’s cabinet has dodged taxes for years by moving his luxurious properties to one of his staff, but so far no action has been taken against him.

It is hardly surprising, given this selective justice, that a latest government-imposed tax amnesty system in which tax debt is forgiven in return for a fee failed to kick off. While the government of Khan does not increase income flows, it also does not cut non-developmental spending. After debt servicing, the largest source of such expenditure is the military, which gets around 18 and 23 percent of the budget annually.

Thus, Pakistan seems to be stuck in a negative feedback loop of trying to accommodate the army’s interests and the strong financial elites that are crippling its economy and forcing it to continue borrowing from global creditors, plunging further into debt and bringing it nearer to a complete economic collapse. Those in authority and those enjoying monetary privileges must recognize at this stage that this status quo is economically unviable. The only way out is to implement a fair tax system along with the ever-increasing military budget being cut or at least frozen. To prevent the looming financial catastrophe, Pakistan needs to review current spending and prioritize expenditure that will effectively create social and economic development and elevate the poor, not just the civilian and military elites.

Tax amensty: last nail in the coffin of Naya Pakistan!

Hassnain Javed

JULY 17, 2019

Idiocy, it is often said, constantly does the same thing and expects distinct outcomes. If this declaration is accurate, then we can conclude that the governing elite of Pakistan must alter its course of action regardless of political affiliation.

The Pakistan Tehreek-i-Insaf (PTI) appears to have run out of ideas on the financial front for nearly 10 months in power. A group whose management had pledged fresh thoughts and the country’s political economy’s structural revolution has endorsed a tax amnesty system, which in my opinion is quite close to proverbial last nail in the coffin of Naya Pakistan. However, the bigger issue is whether these systems of amnesty really function. According to most studies carried out around the globe, the response to this is mostly no.
Moreover, let me put forth this situation with the notion of moral hazard, which says there will generally be a lack of motivation to guard against risks when one is protected from its effects. In a simpler way, it means that people will take huge risks when they know that at the end of the day somebody will offer a way out without asking them to pay a significant bailout price. This generally refers to sectors that depend on state bailouts and a subject of much debate when the US government saved big banks and the automotive industry following the financial crisis of 2008. It also relates to Pakistan’s rich elites, who understand that governments will eventually give them amnesty with minimal implications after they extract wealth from the nation and get away with not paying their fair share of taxes. As a consequence, people, especially wealthier, are encouraged to avoid taxes and take hazards (evading taxes is a criminal offence in most societies) and conceal their wealth in precious metals, money, real estate, and foreign offshore companies.

Now, let me share some of the evidence from abroad who have launched amnesty schemes. This subculture is not peculiar to Pakistan and their citizens indeed amnesty schemes have been given by nations such as India, Greece, Argentina, Russia, and others. Researchers and scholars who researched these systems found that this policy was ineffective mostly. The same as Pakistan, India has in the past provided several such schemes, and while its government has a stronger record of tax collection than we do, its amnesty schemes achievement is rather marginal. In 2016, the government led by the Bharatiya Janata Party announced an Income Declaration Scheme that resulted in the disclosure of over INR650 billion (about $9-10 billion) of undisclosed assets. The system led in government taxes in excess of INR29 billion (around $400-450 million), covering 0.2 percent of total tax receipts, which was $211 billion in the Indian budget for 2016-17. This implies that the taxes collected through this policy, despite being a main objective of the Indian government, were meagre in the bigger system of things.

Likewise, Russia has also attempted its hand with amnesty systems and a paper published by Georgia State University scholars in September 2009 analyzed its impact after the Soviet Union collapse. After an extensive study, the scientists found that “these amnesties had a little verifiable continuous effect on revenue” and that “using fiscal gadgets like amnesties imposes extra expenses” and that “nations would be better off avoiding them.”

The sad reality here is that those in authority in Pakistan do not appear to believe in conclusive proof-based policymaking and learning from case studies around the world

However, Argentina’s latest experience of it is one of the few tales of achievement. The 2017 amnesty system brought more than $116 billion in assets from offshore places to the South American nation (far more than the goal of $20 billion), including Switzerland and the United States, and profits of over $9 billion. This rendered it the most effective such initiative in the globe, enabling the higher opportunity for investment in the country’s economic development for the Argentine government, which was experiencing a financial crisis at the moment. One reason for the achievement of the scheme was that not only did Argentinians have to pay a 10-15pc penalty and register their assets, they also had to liquidate and invest them in government bonds at 0pc interest rate for a period of three years or at the 1pc interest rate for a period of seven years. Secondly, Argentina has been involved in global projects to transfer data and make it more difficult for OECD people to conceal their wealth overseas. Also signed was a bilateral data exchange arrangement with the US, which persuaded Argentinians to expel their offshore property back to the nation.

Apart from this, there are many reasons why amnesty schemes always fail in Pakistan. This amnesty system is the fifth that has been given since 2013 to tax evaders, strengthening the moral hazard issue.

Its wide contours are comparable to the 2018 scheme announced by the outgoing Pakistan Muslim League-Nawaz government. The current scheme charges a 4pc money penalty stated and deposited in Pakistan’s banking system, while those wishing to retain their wealth overseas will be charged 6pc in contrast the 2018 scheme enabled individuals to return foreign exchange by paying a 2pc penalty. Moreover, declaring foreign exchange to be charged if there is any declaration of foreign liquid assets like bonds then have to pay a 5 percent penalty. The 2018 system was able to increase nearly Rs100 billion, about 2pc of the total Rs4.3 trillion tax revenue anticipated in the budget of that year. More than 55,000 individuals took the opportunity to declare in assets over Rs1,500 billion, the highest amount declared in the history of Pakistan under any amnesty scheme. There is no accessible information, however, suggesting that tax compliance has risen following this system, and one can securely say that incentives to avoid taxes have stayed in place.

In order to conclude, since the PTI system has little new to offer, one can securely claim that its choice will not result in any significant change in the behaviour of taxpayers or the stated objective of enhancing the size of the existing economy of Pakistan. In addition, this system does not learn from the narratives of global achievements, such as Argentina. Investing the newly declared assets in government bonds is not compulsory. However, Pakistan signed last year the OECD Multilateral Convention to obtain access to data on offshore accounts of Pakistani citizens. However, more evidence that is noticeable is needed that the government is working on this issue with the OECD or countries such as Switzerland and the UK. Moreover, like those in the past, the PTI government has not fully clarified the paddles it will use to go after people unwilling to declare their property. There have also been claims to use “information” and “automation” in the past and should, therefore, be handled as demagoguery. The absence of studies carried out before such significant choices are made is also worrisome. After all, a country that has offered multiple amnesty schemes should at least conduct studies, collect survey data to determine why people do not pay taxes and evaluate best practices from around the globe prior to policy development. The sad reality here is that those in authority in Pakistan do not appear to believe in conclusive proof-based policymaking and learning from case studies around the world. Lastly, like its predecessors, the PTI is as true in economic reforms packaging novelties.

A tug of war: dollar vs rupee

Hassnain Javed

JULY 11, 2019

Before addressing the dilemma of rupee fluctuation it is important to understand the dynamic mechanism that how currencies devalue and fluctuate so often. There are around 195 countries residing on planet earth with 180 currencies in total that have a daily day in and day out. In addition, as life continues and carry on twenty-four hours a day irrespective of any sudden or planned to occur with one of it’s after effect on the currency fluctuations. Some economies, which are considerably powerful and stable have fewer chances of currency fluctuations in contrast to the emerging or weak economies that can easily get affected with any slightest of changes in their respective immunity level. Moreover, some currencies are widely used as a medium of exchange in comparison to the rest of the available currencies. This explains the phenomena that other people for their respective use accept the more certain currency as a medium of exchange it is likely that quicker it gets adaptable. However, it should be a stable currency and have minor or no fluctuations. For instance, if you are on some business trip with carrying currency that is devaluing every passing day will end up having no purchasing power.

Besides this, most of the world currency trading business operates on the rationale of demand and supply thus an implication of the flexible exchange rate rather than the fixed exchange rate. This rationale refers to basic market mechanism phenomena as there is a shortage of certain currency in the market it will make the price of the currency higher and vice versa. The currency market operations are similar to the product market as the prices of the products increase the quantity demanded of those products will go down. However, while having currencies into consideration unlike products, a currency’s flow of demand and supply is complexly interlinked with certain factors such as country’s monetary policy set by its Central bank, rate of inflation and most importantly the economic condition of the country.

It is becoming difficult for the Pakistan masses with the majority of them unfamiliar with the world of finance or either how it does operate to figure out the rationale of falling rupee against the dollar. Indeed, it is a government obligation to make a common man who is paying taxes

The way Rupee has been falling in Pakistan against the Dollar, common people neither understands nor wants to know as to why it is happening, panic is being created. In addition, very justifiably so because a common person’s job is not to start studying how the world of finance works. It is the job of the government to ensure that a common tax paying man lives happily without extra burden. Yes, I am addressing the common citizens paying taxes. It is a grey reality yet the truth remains valid that countries with a high amount of fair and timely tax collection the currency of that particular country remains stable and stronger. Because tax revenue is the most important income which the governments possess. Therefore, more income a country have there would be more currency and economic stability. Likewise, the government will have more money to buy and keep foreign exchange in its Federal Reserve or either Central Banks so if there is demand creation for a foreign currency rises, the government can easily intervene and provide a supply of that currency to the buyers. If we have a quick glance at the South Asian region, Pakistan is ranked among the lowest tax to GDP ratio. This actually reflects whether the economy is in good or worse condition. Amongst the many factors low the amount of tax collection there would be a weaker economy that translates into devaluation of the currency.

It is quandary that innocent keep on getting into fools trap and those with awareness and equipped knowledge for the sake of monetary gains keep their mouth shut rather than doing something for their nation

As I always mention an economic function is synonymous to the human body structuring and functioning. The stronger the human body immune the higher energy and capability it posses to fight with any sort of diseases. In contrast, the weak immune may not even resist the slightest of viral infection and can suffer from fatal or either chronic consequences. Likewise, an economic situation depicts the immunity level as they contract any certain bacteria they are required to visit the doctor for help such as in the case of Pakistan with the turbulent situation they are seeking aid from international agencies. As the doctors get aware of the patient situation they provide medication but generally of higher potency.

If an economy is experiencing falling exports, rising imports, current account deficit, booming inflation, deteriorating currency, widening budget deficit, high rates of unemployment and tax evasion etc clearly indicates a hurricane warning bells ringing which can hit it anytime soon with devasting after effects. The medium to extreme symbols are evident yet there are very slightest of precautionary measures undertaken to mention the few the level of our exports never grew, no corrective action is taken to address the budget deficit indeed still wandering the cliff level is high enough that tsunami can never surpass it.

My heart bleeds to write bitter some realities that my beloved nation is undergoing since long. Pakistan always stays under the ambit of ad-hoc policies and never actually practiced the structural reforms in general irrespective of democratic or either military regimes. Our rulers have always treated the economic immune temporarily to survive rather than making an effort to build it strong enough and life sustainable. It is quandary that innocent keep on getting into fools trap and those with awareness and equipped knowledge for the sake of monetary gains keep their mouth shut rather than doing something for their nation.

In order to conclude, we the common man of Pakistan have to collectively raise our voices and make the uninformed participants informed about the bitter realities. To overcome the tsunami and corrective actionreforms are required. A step has to be taken today to bring revolutionary changes in decades to come.

Health and education beyond borders

Hassnain Javed

JULY 2, 2019

The New Silk Road aims to connect China’s grand route with Africa, Asia, and Europe through cyberspace and physical space, promising prosperity and innovation. One Belt, One Road, or Belt and Road, promises the construction of a massive $1 trillion infrastructure investment in the building of highways, dry and seaports, power plants, and state of the art telecommunication network. One Belt, One Road was been highly criticized for the wide flow of benefits mostly to China. Will the unprecedented influx of development financing improve the Human Development Index of people living along the belt.

China has fast changed its course of economic development within the turn of the century, from being a major recipient of Global Funds grant to a net provider of financial assistance. The World Bank has provided a total of $2.47 billion worth of low interest rate loans to the Chinese government. The financial assistance provided by China to middle income countries included medical training by Chinese doctors. Moreover, China has also been a provider of medical equipment and drugs, to these countries for building health facilities, and support malaria prevention. In 2014, after the breakout of the Ebola epidemic in Africa, china has played a key role in increasing health partnerships and health assistance as a part of China’s BRI development strategy. China has also signed a Memorandum of Understanding with World Health Organisation in efforts to strengthen ties with the UN. Furthermore, a new International Development Cooperation Agency (IDCA) for foreign aid coordination has been launched to organize all countries involved in BRI to approve a communique aiming to “synergize efforts in medical emergency response and epidemic prevention”.

Regarding education in 2015, the One Belt One road Initiative have launched the University Alliance of the Silk Road which is a collaboration of about 130 universities across five continents which is coordinated by the China’s Xian Jiaotong University. This cooperation across borders vision to develop an alliance among its members and encourage human development along the Belt and Road initiative in higher education. Furthermore, other member countries also have their universities campuses opened abroad, one such university is University of Xiamen in Malaysia and Soochow University, which has opened an office in Laos since 2011. These universities not only allow the flow of information technology and local skills across borders but also help in spreading job opportunities along the belt.

In 2018, the One Belt and One Road Initiative forum, President Xi Jinping announced China’s pledge to create 100 health projects for women and children in the developing world-a commitment to maternal and child health

Since the rapid growth in the population of China and widespread economic integration along the borders and beyond, the development of health in the region is the obvious next step towards moving forward. China now has a 95% population coverage of basic health insurance and has achieved a 40-fold increase of its total health expenditure (5.6%) over the past two decades. Previously China has also experienced a major epidemic outbreak in 2003 outbreak of Severe Acute Respiratory Syndrome (SARS), which has instantly highlighted the need to keep the health as priority.The temporary economic shock by the SARS epidemic was respectively, 2.63% and 1.05% of GDP, mostly affecting the mainland China. This has called a need for advancing collaborative risk prevention and emergency response being placed by the Chinese government. A study on the SARS epidemic predicted that if the SARS epidemic recurred again today, the immediate costs for the global economy would jump up by over 70% compared to the case where the 2003.

In 2018, the One Belt and One Road Initiative forum, President Xi Jinping announced China’s pledge to create 100 health projects for women and children in the developing world-a commitment to maternal and child health. Furthermore,investment is being made in vaccine development and biomedical advances in collaboration with the Bill & Melinda Gates Foundation. The progress report has showed a whopping investment of 3 billion from 2000 and 2012, in 255 projects working on to curb the problems relating to health, population, and water and sanitation in Africa. In Bangladesh hospitals and malaria control centers have been invested in, providing anti-malarial treatment, and trained health care workers.

The Health Care system in China is very well organised by the health care insurance being accessible to 95% of the population, as mentioned above. However in Pakistan population per doctor and population per bed did not improve much over than previous year. Also the domestic pharmaceutical industry in China is much more stronger with 22 of all 25 being owned by the domestic. Therefore, CPEC can play a pivotal role in the development of healthcare in Pakistan. This is through the availability of cheap raw material to the manufacturers in Pakistan via the CPEC route.

In order to conclude, CPEC has also been a source of providing medical students in Pakistan, education facility in China. Almost 10,000 students have already been graduated and working in different fields.Also over 200,000 students from all over, the 64 countries in the OBOR have been getting education via government scholarship programs. However, Pakistani students have been the most in number, ranking at the top fourth of all international students in China. In order to facilitate the CPEC infrastructure in Gawadar, the Vice-Chairman of Chinese Red Cross Foundation Liu Xuanguo has plan to set up second emergency care in Quetta in Balochistan. In future, CPEC should facilitate the setup of new medical colleges and universities, state-of-the-art R&D labs and pharmacies along the CPEC. This will help enhance the medical skills of the professional doctors, pharmacists and other medical staff exchange programs can be initiated. In order to build a fully functional health and knowledge corridor, industry technicians from both the China and Pakistan will be needed to bring revolutionary changes in health sector.

Belt and Road Initiative: Target towards Globalization 5.0

Hassnain Javed

JUNE 27, 2019

The strategic initiative of the One Belt One Road Initiative has expanded and restructured with new routes being added along the initial project program. Now the plan aims to reach 4.4 Billion people in around 69 countries with a combined effect of US $ 2 trillion on their GDP. Primarily the initiative would bridge the infrastructure gap and redistribute funds amongst the Asian economies. According to the implementation guideline for the Belt and Road initiative published by China’s National Development and Reform Commission (NDRC) in March 2015 “development plans along the Belt and Road routes aims to improve connectivity in five areas: policy, infrastructure, trade, currency, and people”. An area of utmost priority is given to the development of infrastructure to improve the connectivity of the region like the construction of roads, railways and ports. Another priority area is that of the energy sector that is essential for the smooth running of industries along the initiative such as power grids, oil and gas pipelines, liquefied natural gas terminals, high-voltage power lines, nuclear power reactors, renewable energy installations and other energy projects. Additionally for the flow of technology and its acceptance, the communication lines and mega IT, projects are also under the pipeline across Asia, the Middle East, East Africa and Europe.

The region is of the most significance since the global stats shows that East Asia is one of the most dynamic and fastest growing regions of the world. Despite of the rich treasures of natural resources, the Central Asia still lags behind in terms of development. This initiative understands particular issue therefore; the stem of its infrastructure is being developed from Central Asia. Such a move aims to reduce the friction in this region and to ensure a bilateral trade for equitable economic growth, development, and integration. The strategic goals of the Shanghai Cooperation Organization (SCO) further emphasizes on the importance of regional stability and better understanding of each other’s political makeup to combat the forces of terrorists and extremists groups.

By the development and transformation of the infrastructure relating to transport, energy, and communication along the Road and the Belt, not only China but also regional connected economies like Pakistan would be able to solve the problems relating to regional connectivity

On the other hand, the one belt one-road initiative spreads over the ASEAN countries that have a history marred with neglect of regional connectivity and a desperate need for infrastructure to overcome the impending need for stable energy resources (SIEW 2015). For a 21st, Century China moving towards globalization the challenges that come with a sustainable domestic economy are numerous. Some of these challenges include ‘lack of access to the resource markets for final products; reduction or reallocation of industrial overcapacity and diversification of its enormous US$3.51 trillion in foreign reserves.

I am of view the Belt and Road initiative is a window to crack some of these problems in an efficient manner. By the development and transformation of the infrastructure relating to transport, energy, and communication along the Road and the Belt, not only China but also regional connected economies like Pakistan would be able to solve the problems relating to regional connectivity. Over a span of two millennia, China has emerged as world power, which can be seen from the production, trade, finance culture, ecology, security, military and geopolitics. At an international level, China has evolved as a world power with substantial participation in structure, bilateral trade agreements and peace treaties. China dwells upon its span over a large unprecedented geographic region that exercises control without any military power. Therefore, the given ideology of soft power without the use of force imposes an interest-driven discourse of its political, economic, and security reality on others.

The “Reform and Opening Up” policy, has been continually working on to improve its multilateral trade agreements and strategy for economic cooperation that provides mutual benefits for future developments. The Chinese President Xi introduced the new idea that aims at creating a win-win strategy in the concept of “three together”.

Many countries playing a part in China’s One Belt One Road Initiative are working for improving infrastructure, IT and sustainable energy resources that are looking for strengthening their relationships with China. However, there are also some parties that are of the exact opposite view. Therefore the support and trust of the public and business communities, is essential for the acceptance of the initiative. The indigenous communities are very sensitive towards their religion and customs, in the countries along the path of the Belt and Road, hence getting local support for making decisions in the concerned countries relating to this multilevel and multipurpose gigantic project is very important.

China move towards globalization is not new indeed it involves the constant and persistent effort of the government, policy makers and the public at large. Pakistan should also take the same inspiration and make use of this platform at most efficient manner. Last weekend, I have attended Industrial Energy Efficiency international conference organized by Energy Foundation China in Beijing where delegates from more than 20 countries have participated and put forth their proposals to make effective use of China’s Belt and Road initiative in energy conservation, green and healthy economy.