This week observed catastrophic events in the world. On one hand, Pakistan collapsed completely, on the other hand, the US is on the brink of an economic breakdown. China is extending the trap of its debt diplomacy amid this all Russia-Ukraine war raised a nuke alert again.
Chinese interest in Afghanistan worrisome
The news of China investing adequate amount of money in to Afghanistan (read: Taliban) in the name of developing economic corridor is worrisome. China’s foreign minister Qin Gang visited Pakistan and had talks with his counterpart Bilawal Bhutto along with Afghanistan’s acting foreign minister Muttaqi. China has agreed to invest money in to Afghanistan to develop infrastructure as a part of its belt and road initiative. Belt and Road Initiative, also known as the New Silk Road, was initiated in 2013 by President Xi Jinping to link East Asia and Europe through physical infrastructure. Now it has expanded to Africa and Latin America too increasing China’s strategic, economic and political influence. China is trying hard to establish its monopoly in the world. In the name of developing the so-called economic corridor, it has already apprehended strategically important locations in Pakistan and now eying Afghanistan. Taliban too needs an investor and ally like China. It would be a matter of great concern for rest of the world as this concoction will certainly pose challenges to global peace and security.
Imran’s arrest and aftermath
This is also true that the nations that pose threats to global peace face the heat themselves at the end of the day. What is happening in Pakistan is a great example to quote. Pakistan, who always promoted terrorism, is facing a challenge on its existence itself. Arrest of the ex-PM of Pakistan, Imran Khan, created a riotous situation in Pakistan this week. Amid the violent protests by his supporters, other leaders of Khan’s Pakistan Tehreek-e-Insaaf party were also taken into custody. Present PM acted like the puppet of military, and military left no stone unturned in taking total control of the government of Pakistan (anyways, it is not new in Pakistan!). Although Imran Khan is facing multiple charges of corruption, the elections are due in November this year, and this could be the biggest reason of intensified confrontation between the present government and Khan. Now, there is a major twist as the the country’s supreme court has declared the arrest of Khan illegal and has ordered the immediate release of Imran Khan. It seems even the God cannot predict what will happen next in Pakistan!
Consitututional crisis in US
But what was predicted and even warned by the experts of economics in the US seems to be turning true. The US is facing a constitutional crisis over the issue of increasing debt ceiling. As warned by the treasury department of the US, the country may face a serious crisis if it fails to pay its bills by June 1 as it is running out of cash. Debt ceiling is the borrowing limit of the US on how much money the treasury can owe to cover the country’s bills. It was introduced through the Second Liberty Bond Act of 1917. The debt ceiling was last raised to roughly $ 31.4 trillion in 2021 after a confrontation between the White House and Senate Republicans. Presently, there is a disagreement between the democrats and the republicans over the debt ceiling plan and that’s why not only the economy of the US, global economy is on a major risk. If the US defaults on paying its bills, the government will not be able to pay salaries of the federal employees, social security, military and even medicare. It will also shock global markets as the US is a key player in the global financial systems.
All the problem can be sorted out with the right mindset. Be it the US or Pakistan, the leaders need to adopt ‘team play’ mode to save their respective nations from the crisis they are facing.
The author is Professor, School of International Studies, JNU.