Page 36 - 31MAR2019E

Is Pakistan meddling

in Indian elections?

To understand the reason for Pulwama attack and its timing, one will have to look at the
political context of India and economic crisis in Pakistan, writes vikas malhotra

n his first televised address that Pakistan will not be able to port Fund) for its help in the war
after the Indian air strike at use this money to repay its Chinese against terror. Also, Pakistan is on
Balakot, Pakistan Prime Minis- lenders (who have invested in CPEC grey list of FATF (Financial action
ter Imran Khan while suing for projects). task force) for terror financing and
I peace had asked the question Adding to its financial woes, the up for review. In case if it is blacklist-
that India should reflect on why will US is in the process of withdraw- ed its access to international capital
we want to orchestrate the Pulwa- ing its troops from the region. This markets will also stand stymied.
ma attack. What will we gain out of will dry up another billion dollar of Now in the throes of such eco-
it? That’s a valid question to ponder annual income for Pakistan, which nomic distress all the economic
over. Was the Pulwama attack on US makes from CSF (Coalition Sup- choices that Pakistan faces are hard.
Indian security apparatus another
random terrorist strike or was it
organized with some strategic out-
come in mind.
To understand the reason for
Pulwama attack and its timing, one
will have to look at the political con-
text of India and economic crisis in
Pakistan.
Riddled with a balance of pay-
ment (BoP) crisis, Pakistan’s econo-
my is passing through another rough
period. Its current national debt
stands at $92 billion ( which takes 30
per cent of its federal budget to ser-
vice) squeezing the current spends.
With its annual revenues at $47.5 bil-
lion and expenses at $68.2 billion its
current account deficit is a stagger-
ing $20 billion.
To address its BoP crisis ( or
to avoid any sovereign defaults)
Pakistan is seeking a $8 billion IMF
bailout package. The US, which has
a veto on the IMF grants, has indi-
cated on imposition of strong con-
ditionalities before such a package
is approved. Apart from all the fis-
cal corrections that it will now have
to make, one of the conditions is,