Pakistan
Prime Minister Imran Khan has given Pakistan what his predecessors couldn’t afford: hope. Seen as a new and incorruptible face in politics, he gathered the support of young generations, seasoned entrepreneurs and military leaders alike, leaving behind the country’s two dynastic political parties, the Sharifs’ Pakistan Muslim League (PML) and the Bhuttos’ Pakistan Peoples Party (PPP). His vision of a “Naya (New) Pakistan” entails an ambitious program of reforms aimed at shaking the country out of decades of political, economic and administrative stagnation.
Pakistan occupies a strategic geopolitical position linking China, India, Afghanistan and Iran, but it had been relegated to a secondary place both regionally and globally. Similarly, although it has long been allied to the U.S (and more recently China), its relations with the U.S. deteriorated dramatically in the last years, strained by the Afghan conflict.
Moreover, Donald Trump’s administration adopted a hard line against Pakistan, accusing it of supporting the Taliban and suspending $2 billion in security assistance. However, things started to turn when Prime Minister Imran Khan took office in August 2018. Early on, he called for “mutually beneficial” ties with the U.S. and promised to fight terrorism, specially in Iran’s and Afghanistan’s borders.
Now, PM Khan’s first official visit to Washington last month is seen as an opportunity to mend and reinvigorate the two countries’ long-standing and mutually beneficial relationship.
Trump expects Pakistan to pressure the Taliban to reach a peace deal with Afghanistan, ending U.S. involvement in the conflict ahead of the 2020 elections; while Imran Khan hopes this cooperation will unlock U.S. financial assistance, as well as keep Pakistan off the Financial Action Task Force’s blacklist. Trade and investment agreements are a vital part of the agenda, as the U.S. is a major source of foreign investment in Pakistan and its largest export market, furthermore Pakistan is going through a $6 billion IMF bailout and is trying to solve its balance of payments crisis.
Domestically, Khan’s government is particularly focused on fighting corruption and poverty. Through its anti-corruption agency, the National Accountability Bureau (NAB), several top corrupt politicians have been prosecuted and an Assets Recovery Unit, a whistle-blower law and better tax policies are being implemented. Likewise, a first-of-his-kind anti-poverty plan “Ehsas” (Empathy) aims helping the poor gain better access to healthcare, education and employment. To fund his reforms and bolster the economy, Khan is actively seeking foreign investors. Saudi Arabia has pledged investment deals worth $20 billion and they are currently in talks with the United Arab Emirates, Qatar, Malaysia, Japan and China, its biggest foreign investor and a major aid donor. There is still a long way to go for Pakistan to reach its enormous potential, but for the first time in its recent history, there is reason to believe they are on their way to success.
