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    Pakistan’s Economic Vulnerability and the US South Asia Strategy in Light of CPEC

    Tariq, Natasha | January 2019
    Abstract
    US-Pakistan relations have seen highs and lows, and US aid flows to the country mirror the shifts in US foreign policy positions. Even after Pakistan's initiation as a key non-NATO ally post 9/11 the bilateral relationship has been fluctuating. The Trump Administration's new policy for South Asia and Afghanistan announced on 21st August, 2017, was a harbinger of change in relations with Pakistan. On January 4th 2018, the United States suspended all security-related assistance to Pakistan including payments through Coalition Support Funds (CSF) and the transfer of security-related equipment - a punitive measure in response to the alleged provision of sanctuaries by Pakistan to the Afghan Taliban and the Haqqani Network. The administration has also hinted at additional measures like revoking Pakistan‟s non-NATO ally status, labeling it a "state sponsor of terror" and withholding support at global financial institutions. However, due to American interests in the region tied to Pakistan's stability and its cooperation vis-à-vis Afghanistan, there are limits to how much coercive pressure US may apply on Pakistan without hurting its own goals. As US aid declines and Washington seems less likely to extend economic favours to Pakistan, China is increasing its economic footprint in the country, primarily through the China-Pakistan Economic Corridor (CPEC). In the backdrop of its investments and CPEC's role as the "flagship" project of the Belt and Road Initiative (BRI), China has a heightened stake in Pakistan. As the US builds closer ties with India, effectiveness of the policy toward Pakistan also has to be gauged in light of shifting geopolitical landscape and the likely impact on bilateral ties in the region. Coercing Pakistan is unlikely to yield the desired results in the context of the South Asia strategy. The current policy only views Pakistan in terms of its immediate relevance for Afghanistan.
    Citation
    Tariq, Natasha. 2019. Pakistan’s Economic Vulnerability and the US South Asia Strategy in Light of CPEC. © Sustainable Development Policy Institute. http://hdl.handle.net/11540/9583.
    Keywords
    Regionalism
    Regional Economy
    Regional Trading Arrangements
    Aid And Development
    Asian Development Bank
    Comprehensive Development Framework
    Development Cooperation
    Development Management
    Development Planning
    Development Strategies
    Development In East Asia
    Development Planning
    Development Research
    Green revolution
    Government Policy
    Regional Organization
    Regional Plans
    Rural planning
    Aid coordination
    Industrial projects
    Infrastructure projects
    Natural resources policy
    Educational development
    Development strategy
    Development models
    Economic development
    Interregionalism
    Regional economics
    Regional planning
    Communication in rural development
    Communication in community development
    Economic development projects
    Development banks
    Economic forecasting
    Environmental auditing
    Cumulative effects assessment
    Human rights and globalization
    Show allCollapse
    Citable URI
    http://hdl.handle.net/11540/9583
    Metadata
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    Pakistans-Economic-Vulnerability-and-the-US-South-Asia-Strategy-in-Light-of-CPEC.pdf (728.4Kb)
    Author
    Tariq, Natasha
    Theme
    Regional
    Development

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    Copyright 2016-2021 Asian Development Bank Institute, except as explicitly marked otherwise