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After stock market, Pakistan hit India in geopolitics

Forget cricket, Pakistan has actually started pasting India in other grounds and that too in survival grounds. A while back, a major conquest was seen in equity markets when Pakistan outperformed India to becoming Asia’s best market since the beginning of the new century. Now, keeping the track, Pakistan has now beat India in geopolitics by effectively gaining a series of profits from US and China.

According to the latest study by Forbes, Pakistan’s leadership have made it possible to thrash India in terms of building financial markets once again. Back then, in 2001, Pakistan grasped the chance of being close to Afghanistan and had an immense foreign debt written off from America. At that time, America needed Pakistan as an ally in the war on terror and Pakistan's government offered to do just that in trade for the US brokering debt relief for their huge external debt comprising 60 percent of the country’s GDP, with debt serving counting for 30 percent of exports. 

As said by, Marko Dimitrijevic in Frontier Investor (New York: Columbia Business School, 2017), “However, the United States’ post-9/11 collaboration with the Musharraf government to fight terrorism provided an environment conducive for Pakistan to request the rescheduling of its debt.”

Through this successful trade led by General Pervez Musharraf, Pakistan’s currency built up as foreign expatriate allowances and foreign investment found a new way to surge into the country. Following the reign of Musharraf, Pakistan had faced a major financial crisis in 2008.

Afterward, China joined Pakistan to strengthen Pakistan’s financial position. Through China-Pak Economic Corridor (CPEC), Beijing invested $46 billion, utilizing, Gawadar trade route of Pakistan to reach the markets of Middle East, Africa, and Europe. CPEC itself came out to be a game-changer for Pakistan till now. China needed a western corridor and Pakistan needed an economy partner to reconstruct markets and infrastructure. In addition, China has been investing in Pakistan’s infrastructure companies.

 China’s support to Pakistan is a defeat of India as China has blocked India’s attempts to join Nuclear Supplier Group (NSG). And China also stands with Pakistan’s stance in Kashmir dispute as witnessed at the 71st United Nations General Assembly session.

 Now, at this point, generating this much financial stability in geopolitics is a kind of achievement for the present democratic government and its long-termed policies.

Nazish Islam - a media graduate with an undying love for chai, books, traveling, series shows, sports, hijab, and of course writing.

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