Currently, India and Pakistan’s relation is on the decline side in the past few weeks due to attack on CRPF soldiers killed in bomb blast in the Jammu and Kashmir. In response, the Indian air force attacked a terrorist camp in Pakistan. This caused a warlike, but the question arises how much war can affect Pakistan’s economy? Can does India create a crisis in Pakistan without announcing a war?
Then my answer will be partial ‘Yes’ without announcing a war India can create a crisis in Pakistan. So let’s see how India can able to do it.
Pakistan’s economy is not a self-sufficient economy; it depends upon other countries to run its day to day life and India can block this to create a crisis.
1. Stopping the exports –
The first step that Indian can take is by stopping the exports and imports to Pakistan. India and Pakistan trade was not significant; it was $2.4 Billion in the year 2017-18 which is 0.31% of India’s total business. In this India export around $1.9 Billion worth of goods and Imports $500 Million.
India exports consist of Cotton; Organic Chemicals etc. is having the highest stakes.
India has given Pakistan the MFN (Most Favoured Nation) status due to which will hurt the ambition for increasing trade with India.
India didn’t stop here. India imposed 200% Tariff on Pakistani goods. India supplies some of the essential products such as medical supplies etc. which is necessary for Pakistan. India and Pakistan trade are not too big that it will affect the economy severely, but the Indian economy can surely give a shock to the Pakistan Economy with these trade restrictions.
Pakistan’s top 5 importers consist of China, UAE, Saudi Arabia, Indonesia, and Japan out of these five countries four countries do not share a border with Pakistan, and their primary mode of export will be waterway and if India is successfully able to impose a naval blocked then Pakistani economy can suffer a considerable loss.
As we know India has a vast navy which has an active presence in oceans near India, so Indian Navy can easily do it, and in the period of the air strike, one Indian Submarine was near Pakistani waters.
To better understand let’s take an example –
India can create oil shortage by naval blocked as Pakistan imports crude petroleum (5.2%) and petroleum gas (3.3%) if India stops these ships reaching Pakistan then an oil crisis can emerge.
India can also increase pressure on Pakistan internationally as we know the Pakistani economy is not in good shape and it needed money from other countries
In earlier days the USA helped Pakistan, but slowly the USA stop giving aid and now Saudi Arabia is helping Pakistan, but the main issue which every country have with Pakistan that it failed to stop terrorism on their soil and India can take advantage of this topic to blacklist Pakistan. Newly India is trying to blacklist Pakistan in FATF etc. India’s these steps can create a crisis as due to these Pakistan will get less amount for their economy to work and raising international pressure will create pressure not only economically but also politically.
Pakistan pore oil in this mix with CPEC and using F-16 due to which the US will also less likely to help Pakistan
India has given Pakistan the MFN (Most Favoured Nation) status due to which will hurt the ambition for increasing trade with India.
India didn’t stop here. India imposed 200% Tariff on Pakistani goods. India supplies some of the essential products such as medical supplies etc. which is necessary for Pakistan. India and Pakistan trade are not too big that it will affect the economy severely, but the Indian economy can surely give a shock to the Pakistan Economy with these trade restrictions.
2. Naval blocked –
Naval blocked means active interception of ships (Any ships) heading towards the port of a country. The Navy and India do this had done this in the past with Pakistan in 1971’s war. In this navy intercepted ships going to the port of the country with the aim of cutting the supply of the country.Pakistan’s top 5 importers consist of China, UAE, Saudi Arabia, Indonesia, and Japan out of these five countries four countries do not share a border with Pakistan, and their primary mode of export will be waterway and if India is successfully able to impose a naval blocked then Pakistani economy can suffer a considerable loss.
As we know India has a vast navy which has an active presence in oceans near India, so Indian Navy can easily do it, and in the period of the air strike, one Indian Submarine was near Pakistani waters.
To better understand let’s take an example –
India can create oil shortage by naval blocked as Pakistan imports crude petroleum (5.2%) and petroleum gas (3.3%) if India stops these ships reaching Pakistan then an oil crisis can emerge.
3. International pressure –
India can also increase pressure on Pakistan internationally as we know the Pakistani economy is not in good shape and it needed money from other countriesIn earlier days the USA helped Pakistan, but slowly the USA stop giving aid and now Saudi Arabia is helping Pakistan, but the main issue which every country have with Pakistan that it failed to stop terrorism on their soil and India can take advantage of this topic to blacklist Pakistan. Newly India is trying to blacklist Pakistan in FATF etc. India’s these steps can create a crisis as due to these Pakistan will get less amount for their economy to work and raising international pressure will create pressure not only economically but also politically.
Pakistan pore oil in this mix with CPEC and using F-16 due to which the US will also less likely to help Pakistan
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