KARACHI:
Pakistan is heavily dependent on the West-controlled global institutions for economic survival and international standing. A significant chunk of the country’s exports lands in the Western countries that earn us considerable foreign exchange. Besides, a majority of overseas Pakistanis reside in the West, whose remittances help the country maintain economic stability. However, this overreliance on the West is also a major weakness that can bend the country to its knees if exports arriving in the West are curtailed, or expatriates are restricted from employment. Given these vulnerabilities, the US-backed global institutions often make Pakistan give in to their demands. Under the circumstances, Pakistan should diversify its options by developing economic partnerships with other emerging powers that give the country leverage in the face of the US hegemony.
The SCO, comprising regional emerging powers and CARs, is an ideal platform for Pakistan to expand its economic outreach. Pakistan should develop close trade linkages with CARs that can help the country meet the energy shortfalls at relatively cheaper rates. The CARs should be given access to Karachi and Gwadar ports to ease their imports and exports, which will earn Pakistan huge revenues through transit-trade. But these aspirations can only be met if there is peace and stability in Afghanistan. The SCO member countries should pressure the Taliban rulers to root out terrorist elements in return for extending them any economic favours and recognition they desperately seek.
In the face of back-breaking inflation and depleting foreign exchange reserves, India offers a significantly cheaper option to import commodities of daily usage. However, the unresolved issue of Kashmir prevents both countries from establishing friendly ties. The SCO member nations should mediate to resolve the longstanding problem, which is a major hindrance to developing regional integration. Mired in western sanctions, Russia offers petroleum products at heavily discounted rates. If India can maintain a delicate balance in relations between Russia and the US and buy Russian oil defying the US advice against the same, then why can’t Pakistan do the same? We must explore emerging markets that give us leverage and bulwark against the US hegemonic designs.
Asad Aziz
Khushab
Published in The Express Tribune, September 23rd, 2022.
Like Opinion & Editorial on Facebook, follow @ETOpEd on Twitter to receive all updates on all our daily pieces.
