Pakistan India War on Kashmir Tension | Economy Latest - News Interns: Economic , International , Ranking, Pakistan News


Monday, August 19, 2019

Pakistan India War on Kashmir Tension | Economy Latest

Pakistan India War on Kashmir Tension | Economy

Pakistan India War on Kashmir Tension and Economy

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Pakistan and India both share a 1200km long border from Kashmir to Sindh. But this 1200km border always stays in newspapers because of the chaotic conditions, which never ends in the region. Well keeping politics aside, in this article we talk about Facts and Figures on Economic Sector and Bilateral trade between India and Pakistan. Also, who’s winning and who’s losing.

Table of Contents:

In  2018-19, Pakistan’s exports to India were $262 Million. Whereas on the other side India was exporting the good and services of $1.503 Billion. Many economists called it an economic failure of Pakistan with its all-time rival India. India was getting benefits over the situation and also winning it by a leading margin of $1.241 Billion. The difference is somewhere Pakistan has its imports 5 times more than what it Exports in the Bilateral Trade with India. The exports were just considered a few items including Cement, Dates, and Salt etc. The point to be noted is Pakistan exports the Raw Materials. 

However, on another side, India export a wide range of the items in a wide range from Cotton to Chemicals, Chemicals to Cosmetics, and Cosmetics to many more. But after Pulwana Incident, which India accused Pakistan (without the solid shreds of evidence) and after which a new chapter of chaos has started. India imposed a tariff of merely 200% upon Pakistani Products.

 This decision of India was considered as making serious damages on Pakistani Side Economy which up to some extends was absolutely right. Pakistani exports to India lessens to $232 Million (18-19) from $323 Million (17-18). However, later on, a few days back when India changed the status of Indian Administrated Disputed Jammu & Kashmir by putting off the Article 370 and 35A from Kashmir, Pakistan totally boycotted and put a ban on Indian products to cross the border by declaring that there’s no difference between India and Israel. One is causing atrocities in Palestine while another one in Kashmir. Pakistan also decides to deport the "Indian Ambassador to Pakistan" back to India.

On this stance, the KHANONOMICS worked and as Pakistani Prime Minister Imran Khan said: “If India took 1 step, we will take 2”. Well, it’s for foreign relations but the statement proved itself the right one here as well. Pakistan canceled its 5 times “Imports to Exports” relation with India. India gets serious and huge trade losses when this trade gate turns closed and Pakistan loses cheap Indian prices. As per a report, Indian products are 30-35 percent cheaper and economical as compare to regional Chinese and Vietnamian Products to import.

 Nevertheless, Pakistani spokesperson told that Pakistan has signed a trade agreement with Nepal, Bhutan, Bangladesh, UAE, and Oman for its Dates Exports and likewise Pakistani Cement Exporters have also managed to export Cement to Central Africa, Afghanistan, Middle East. For a fact, after shifting the market Pakistan has observed +12% growth in its Cement Exports. However, in this regard Aristotle well said,
“The whole is greater than the sum of its parts.”

Who’s winning the facts?

chess pakistan india who win

Recently before Indian Elections, the Modi Govt takes a step to publicity Stunt for ensuring its victory in General Elections 2019. After the Pulwama Attack, the Indian military initiates limited warfare against Pakistan by doing an airstrike within Pakistani territory. After which “Abhinandan (Indian Pilot)” got arrested by Pakistan Army when his MIG-21 downed by PAF Pakistan, Pakistan at the moment closed its airspace for commercial flights to fly to India and from India. Which cost India an amount of  $50 Million, according to an estimate.

As per KhaleejTimes, this decision of closing Airspace after the Balakot Airstrike has cost India massive losses up to Rs.430 Crore INR, which later on Indian govt's request opened back on July 2019. But, for now as well after illegal Indian Action with Kashmir’s status, Pakistan again closed its 3 out of 9 air routes. Which is another alarming bell for India to listen. 

In the Economic sector, Pakistan shut down its heavy deficit causing trade gateway. On the other hand, as per the World Investment Report 2019, Foreign Direct Investment in India observed a 6% growth in the year 2018. But after recent Modi's act, India’s reputation is falling day after day and FDI is also expected to face a decline. In the FY 2018-19, India's Trade deficit observed at $103.63 Billion as compared to $84.45 Billion in FY2017-18 (an increase of $19 Billion). Whereas Pakistan's observed trade deficit of $37.6 Billion in the year 2017-18 however, Pakistan's trade deficit has shrunk to $31.8 Billion (a decrease of $5.8 Billion).

How Pakistan is fulfilling the nee­­d for banned products?

question who is helping pakistan

This is quite interesting question that who is helping Pakistan in balancing need the goods and services of $1.503 Billion OR who is/are getting a benefit over IndoPak Trade Collapse. Well, Pakistan’s own arms are also in a test as Pakistan started the manufacturing of most of the products domestically by its own resources. Whereas, the country helping Pakistan to overcome the economic impacts is none other than that country who’s itself fighting another Trade War and is desiring to become Technology Champion. 

Yes! It's China. (Also Read: US-China Trade War)  Along with other countries, China is the top one in supporting Pakistan overcoming this situation. On Pakistan’s govt special demand, China is supplying Essential Chemical Products for the Pharmaceutical industry as well as the Textile Sector. In this way, on one side of the picture, Pakistan’s relation with India is getting worst but on another side, Pakistan’s diplomatic Relations are getting stronger with China day after day. I must say, no matters Pakistan hasn’t improved its exports that much what’s needed but Pakistani Industries are now in working to fulfill the domestic level need.

What is the Kashmir conflict's solution?

what is the solution for kashmir issue

These days every discussion is somewhere discussing the solution to the Kashmir issue but we will not recommend “The Table Talks”. As we know over the past 70 years, Kashmir has treated as a matter from this table to that table. But still, the issue is unresolved. Authorities over both sides of the border inherit this issue from precedents and inherit it furthermore to upcoming but till when Kashmir’s people will live a life of misery. Till when they have to stay away from their relatives because of this and that side of the border? Absolute apathy here. One thing is still misunderstood that Kashmir isn't an immature nation they're all more than eighteen years old. 63% of Kashmir's male population is under 30 age. Moreover, Indian administrated Kashmir is suffering another economic loss i.e. 48% of youth in Kashmir are unemployed (Highest in the World).

As per the United-Nation resolution, armed forces should be withdrawn from both sides and a free-fair referendum should be placed by the UN itself in Kashmir with 3 options only.

        1.      Go with Pakistan
2.       Go with India
3.       Go with Separate Identity

Lo and behold, from the past 70 years, Pakistan is ready for it but the biggest Democracy doesn’t want the rule of demos (people) in the valley. Otherwise, this issue might get resolved even before its origin.

Also Read: Second Phase of CPEC | China | Pakistan

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