Pakistan economic crisis: former RAW chief AS Dulat assume PM Modi will bail out Pakistan

Former chief of Research and Analysis Wing (RAW) Amarjit Singh Dulat has said that PM Narendra Modi can at one stage or the other bring Pakistan out of its economic crisis. Pakistan has been facing severe financial challenges for the past few months and is in dire need of funds. Pakistan’s weekly inflation crossed 40 percent for the first time due to higher retail prices of several household items. Commodities that saw a sharp jump in prices include onion, chicken, eggs, rice, cigarettes and fuel.

In an interview to PTI, Dulat said he felt PM Modi might turn to Pakistan at some stage later this year, and said it was imperative to keep talks open with “a little more public engagement”. Was. “Every time is the best time to talk to Pakistan,” he said. We need to keep our neighbors engaged,” he said in an interview.

He said, ‘This year I predict that Modi ji will give relief to Pakistan. No inside information, but this is my guess.

Dulat warned against a developing “formidable” pivot between Iran, Russia and China, and suggested that India needed to engage in more open diplomacy with China to assure them that India meant good. Is. Dulat said that while India has improved relations with the US, its neighbors are more important given their proximity.

“There needs to be more open diplomacy … (where the Chinese) feel satisfied that India means well by them.” Dulat pointed out that despite the meetings between PM Modi and Chinese President Xi Jinping, India is also engaging with the US.

“You turn your back and welcome Trump, which does not go down well with the Chinese,” he said, though he added that maintaining good equations with all parties was part of India’s tradition of non-alignment. .

Earlier, India had indicated that it cannot provide financial assistance to Pakistan which is facing cash crunch. External Affairs Minister Dr. S. Jaishankar said that India will look at the local public sentiment before taking a decision on whether to help Pakistan or not.

“…if I have to look at any major decision that I’m making, I’ll also look at what the public sentiment is. I’ll find out how my people feel about it. And I think you know the answer.” Jaishankar said at the Asia Economic Dialogue in the national capital organized by the Ministry of External Affairs.

He criticized Pakistan for its economic plight and said that no country would come out of trouble and become a prosperous power if its core industry was ‘terrorism’.

Pakistan’s high inflation

Bananas, chicken, sugar, cooking oil, gas and cigarettes also became costlier, according to the Pakistan Bureau of Statistics (PBS). The report said short-term inflation as measured by the Sensitive Price Indicator (SPI) rose to 41.54 per cent on a year-on-year basis for the week ended February 23, from 38.42 per cent in the previous week.

The increase in prices is the highest since the week ended September 8, 2022, when SPI inflation stood at 42.7 per cent. And it was above 40 per cent for the first time since September 15, when the reading stood at 40.58 per cent, the Pakistan daily said.

Pakistan’s foreign exchange reserves are going to decrease by 2022. According to the State Bank of Pakistan, total foreign liquid reserves stood at only $8 billion during the third week of February, which is not enough to cover three weeks of imports. Pakistan is expected to finalize an agreement with the International Monetary Fund by the end of this month. Earlier, the Sharif government took several austerity measures and passed a mini-budget to raise taxes in the country.