Pakistan

Pakistan’s US $ 6 Billion EFF Arrangement with IMF

Over the past year i.e. 2018–2019, Pakistan has been facing challenging macro-economic conditions that include a ballooning fiscal imbalance and a weak external position with gross reserves at $8 billion, equal to 1.7 months of imports. On June 19, 2019, Reza Baqir, the Governor of the State Bank of Pakistan wrote to the Managing Director of the IMF, seeking assistance under the Extended Fund Facility (EFF), on grounds that Pakistan’s international reserves had touched critically low levels with a large balance of payments gap, in an environment of limited market access.

Economic Sanctions as an Option to Fight Pakistan Sponsored Terrorism

Nuclearisation of the Indian subcontinent limits conventional military options available to India for punishing Pakistan’s employment of terrorism as a tool of state policy. While India has rightly balanced the use of diplomatic and limited military means over a period of time, even as these remain relevant, the option of economic sanctions deserves deeper analysis for its efficacy and impact. Economic measures can be undertaken both in the form of direct and indirect actions against a target country, individual or an organisation with varied degrees of impact.