Challenging times require leaders to take tough decisions in the larger interest of the people. Various media outlets have confirmed that India has purchased oil and coal from Russia at significantly discounted rates, defying all calls from the West to do otherwise amid massive sanctions slapped on Russia. However, Pakistan, while entangled in severe economic troubles, is unable to follow the footsteps of their neighbouring country.
The economic strength of a country is directly related to its ability to make independent policy choices. India is the world’s fifth largest economy in terms of GDP. Some of the world’s top-notch companies have relocated their businesses to India owing to favourable business policies and a vast market of more than a billion people. Besides, the country has developed deep economic ties with some of the world’s leading economies such as the US, China, Russia and Europe. Strong economic interlinkages develop deep ties among countries, which deters them from severing mutual relations at the cost of losing significant financial margins. Therefore, despite showing displeasure at India’s decision to trade with Russia in these trying times, the West did not penalise them owing to deeply ingrained economic and strategic partnerships.
Unlike India, Pakistan couldn’t buy discounted petroleum products from Russia as it included risks of the West punishing the country on multiple fronts. The US holds significant sway in IMF and FATF, which are sufficient to bend Pakistan to its knees due to their massive significance in supporting our fragile economy.
Asad Aziz
Khushab
Published in The Express Tribune, June 27th, 2022.
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