Battle For Pakistan 2007-2019: Pak-US Ties and Civil-Military Relations

Shuja Nawaz's "The Battle For Pakistan: The Bitter Friendship and a Tough Neighborhood" looks at key events of the last decade that have characterized US-Pakistan ties and civil-military relations in Pakistan.  One of the biggest developments in the period covered by Shuja Nawaz's book is the rise of Narendra Modi and the Hindu Nationalists in India. His book is a well-written treatise but it is strangely silent on the implications of this major development for South Asia region and the world.

Author Shuja Nawaz

US Raid in Abbottabad:

On May 2, 2011, US commandos raided a house in Pakistani city of Abbottabad and killed Al Qaida leader Osama Bin Laden. There are many stories about who led the Americans to Bin Laden's hideout. The story that Shuja Nawaz appears to confirm is the one about ex Pakistani spy Lt Col Iqbal Saeed Khan walking into the US Embassy in Islamabad to tell the CIA station chief the exact location of Bin Laden. This spy was apparently well rewarded for it. He now lives in San Diego, California where he owns a multi-million dollar home and drives a BMW convertible.

“Col. Saeed, who ran a security firm in Islamabad, may have been responsible for providing logistic and surveillance assistance to the Americans in tracking and locating movements related to what turned out to the final lair of bin Laden in Abbottabad,” says Shuja Nawaz in his book. “Col. Saeed’s office in Abbottabad is reported to have been used as a listening and staging post. He is reported to have been recruited by Lt. Col. Hafeez, his predecessor at the helm of the 408 Intelligence battalion, who had been hired by the U.S., and according to one report, was even in the U.S., and that CIA Director George Tenet once brought him to a meeting with Gen. Kayani,” it adds.

Imran Khan's 2014 Dharna (Sit-in):

Shuja Nawaz confirms what was widely reported by Pakistani media in 2014: Pakistan ISI was behind Imran Khan's Islamabad dharna. He cites US Ambassador Richard Olson as his source. Olson said the following in a January 2017 interview with the author:

"We received information that Zahir [-ul-Islam, the DG-ISI] was mobilizing for a coup in September of 2014. [Army chief] Raheel [Sharif] blocked it by, in effect, removing Zahir, by announcing his successor...[Zahir] was talking to the corps commanders and was talking to like-minded officers....He was prepared to do it and had the chief been willing, even tacitly, it would have happened. But the chief was not willing, so it didn't happen."

Pakistan Military Dominance:

Shuja Nawaz argues in the book that "the armed forces, and in particular the army, continue to dominate decision making in Pakistan" in spite of the fact "the constitution of Pakistan established civilian supremacy". He explains that it is "largely because of its (army's) experience in running the country through successive military regimes and, to some extent, by the inability of civilian regimes to exhibit the political vision and will necessary to exert their constitutional control over the military".

Going back to the 1970s, Shuja Nawaz says in his book:

"The elder Bhutto (Zulfikar Ali Bhutto) had wished to cut the military down to size, demoting the commanders-in-chief of the services to chiefs-of-staff. But, he failed to understand that their power stemmed from their disciplined and organized institutions, while the political party that he headed, not unlike other political parties, tended to be fractured and weak, especially on governance.....family rule was the order of the day. Civilian leaders failed to empower the people who elected them time and again, and they failed to deliver on the promise of economic development."

Shuja Nawaz's Silence on Rise of Hindutva:

The biggest development in the period covered by Shuja Nawaz's book is the rise of Narendra Modi and the Hindu Nationalists in India. His book is strangely silent on the implications of this development for South Asia region and the world.

Clearly, Nawaz did not foresee what has happened in India and Indian Occupied Kashmir with the revocation of Article 370 of the Indian constitution and the passage of highly discriminatory Citizenship Amendment Act. Nor did he see Modi's dangerous gambit with attack on Balakot in Pakistan. The Indian action drew strong Pakistani response with Pakistan Air Force crossing the Line of Control in Kashmir and shooting down two Indian fighter jets.  Pakistan also captured an Indian fighter pilot shot down down in Azad Kashmir. It was Pakistani Prime Minister Imran Khan's deft handling of the regional crisis that prevented further escalation into a full-blown India-Pakistan war that could have gone nuclear.

Summary:

"The Battle For Pakistan" by Shuja Nawaz covers the period from 2007 when President Musharraf fired former Chief Justice Iftikhar Muhammad Chaudhry to the beginning of 2019 before Balakot attack by Indian Air Force. The book is strangely silent on the implications of far-right Indian Prime Minister Modi's rise for South Asia region and the world.  Most of the book is devoted to discussion of US raid on Osama Bin Laden's hideout in Abbottabad, Salala incident that took the lives of 24 Pakistani soldiers, Memogate that led to Husain Haqqani's ouster, Dawn Leaks incident that soured relations between Prime Minister Nawaz Sharif and the military and Pakistan Army operations to defeat Pakistani Taliban. The author appears to confirm stories about an ex ISI colonel helping CIA find Bin Laden and Pakistan ISI's instigation Imran Khan's 2014 Islamabad  dharna (sit-in). One of the biggest developments in the period covered by Shuja Nawaz's book is the rise of Narendra Modi and the Hindu Nationalists in India. His book is strangely silent on the implications of this development for South Asia region and the world.

Related Links:

Haq's Musings

South Asia Investor Review

India: A Paper Elephant?

Modi's Hindutva

Imran Khan's 2014 Dharna in Islamabad

Seeing Bin Laden's Killing in Wider Perspective

Top US CIA Agent on Pakistan ISI 

Shuja Nawaz on Civil-Military Relations in Pakistan

China-Pakistan Economic Corridor

Ownership of Appliances and Vehicles in Pakistan

CPEC Transforming Pakistan

Pakistan's $20 Billion Tourism Industry Boom

Riaz Haq's YouTube Channel

PakAlumni Social Network

Views: 40

Comment by Riaz Haq on January 8, 2020 at 10:24am

#Pakistan sees #FTA with #China, Belt and Road as path to recovery. #CPEC has entered a new phase, focusing not only on #energy and #infrastructure but also #industrialization and #socioeconomic development, and #modernization of #agriculture and #tourism https://asia.nikkei.com/Editor-s-Picks/Interview/Pakistan-sees-FTA-...

On Jan. 1, the second phase of the Pakistan-China free trade agreement kicked-off. According to the minister, the first phase "resulted in a huge trade deficit in Pakistan," but the country recognized the need to correct the problem. "Under [the second phase], we can export 313 new items -- especially textile, surgical instruments, sportswear and agricultural products -- to China with zero duties."

Pakistan expects the new phase of the FTA will increase exports by $500 million to $600 million.

The 38-year-old minister noted other bright spots in the economy, saying that "tax revenues in July-November 2019 rose 17% from last year," driving down the current-account deficit by 73% in the same period.

Continuing on the upbeat note, Azhar said that Pakistan rose in the World Bank's Ease of Doing Business ranking to 108th, up 28 places from last year. He also pointed out that foreign portfolio investment has returned after three years, and that the benchmark stock index Karachi Stock Exchange 100, rallied 11,000 points in five months, hitting the 40,000 mark.

Furthermore, ratings agency Moody's upgraded Pakistan's outlook in December 2019 from Negative to Stable, based on a positive evaluation of policy changes and improvement in the country's balance of payments.

"The Pakistani economy has been stabilizing since last year," Azhar said. "Once we've completed stabilization, then we'll shift gears and enter a higher growth phase from [fiscal 2021]. I think we're out of the economic crisis."

Regarding GDP growth next year, the minister said it "depends on whether inflation and interest rates come down, but it will be certainly higher than the current fiscal year."

However, Pakistan is not yet out of the woods. Retail inflation in November was 12.7%. In addition, due to servicing a $6 billion bailout package from the IMF, the country had to hike gas and power tariffs. Inflationary pressure remains high.

"Most of the inflation is in food, and is seasonal. 20% to 25% of our economy is based on agriculture," Azhar explained, adding that suspending trade with India affected food prices. To reverse the trend, the minister stated that "our cabinet is already considering to lift the import embargo on medicines and essential items from India."

Pakistan also needs to increase tax revenues, partly by improving domestic tax collection. "Despite [declining] imports, tax collection is rising," he said. "If you look at domestic tax collection, it's growing at close to 25% to 30%."

The minister added that the government is becoming more aggressive in its approach. "We're using the latest technologies to track the flow of money and [guarding against] smuggling."

Pakistan's industry lobbies are chiming in with more demands for business-friendly policies to promote investment. They also want custom duties lowered and more government incentives. Last December, import duties on cotton were slashed to help the country's textile industry. In addition, Azhar has promised to increase lending to small and medium-sized enterprises, which contribute almost 40% to Pakistan's GDP.

Comment by Riaz Haq on January 13, 2020 at 8:33am
Op Ed by Daniel Runde, Center for Strategic and International Studies
 

Without #Afghanistan, #Pakistan and #UnitedStates need a new basis for relationship. Under this arrangement, "We would see Pakistan not as a problem to be managed but also as an opportunity as a potential South Asian economic tiger." #economy #trade #FDI https://thehill.com/opinion/international/477903-without-afghanista...

Pakistan’s population is in the same league as other democracies such as Brazil, Indonesia, and Nigeria. The United States has security ties with each of these democracies, but it also has economic ties, people-to-people ties, and ties in technology, education, and innovation. We should have similarly broad and deep relations with Pakistan.

Although there are valid criticisms in the United States of Pakistan, we need to engage the country in a more rounded way. A broader, more comprehensive engagement would likely require Pakistan to also have a more comprehensive vision of its own role in the world — one also less-viewed through the prism of a single country, namely, India. Pakistan places a disproportionate lens on its military and defense, it spent 4 percent of its GDP on the military in 2018. In contrast, Pakistan only spent 2.9 percent of GDP on education in 2017.


Pakistan’s Potential

Pakistan could become another Argentina or Ukraine in terms of agricultural potential. Agriculture accounts for 20 percent of Pakistan’s GDP and employs 43 percent of its workforce. Agriculture also plays a huge role in Pakistan’s exports, accounting for about 80 percent. But Pakistan’s agricultural productivity currently only ranges between 29-52 percent and could be much higher, with broader use of improved seeds and farming techniques.

Pakistan also has very significant tourism potential. It is best known for its ancient historical and religiously significant buildings, such as the Madshahi and Grand Jamia Mosque. It also has immense natural beauty, such as the Hunza Valley and Desoi National Park. However, Pakistan is one of the least competitive countries in South Asia in regard to travel. Pakistan had 1.7 million visitors in 2017, compared to Sri Lanka’s 2.3 million and Jordan’s 4.2 million. Introducing a recent e-visa program was a great start to opening the doors for tourism but much more needs to be done.

Pakistan has significant hydropower potential but has only developed one-tenth of its 60,000 MW potential. If this resource were properly tapped, it could play a huge role in tackling the power deficit in Pakistan and the broader region.

What would a reframed relationship with Pakistan look like?

On the U.S. side a reframed relationship would require a broader and larger set of stakeholders. We would see Pakistan not as a problem to be managed but also as an opportunity as a potential South Asian economic tiger.

Most members of congress who had an interest in Pakistan — especially outside of the military relationship — have left politics, so a new coalition in Congress needs to be rebuilt. The relationship is poisoned by disappointments, accusations, fear and distrust.

----------------

Education is also key to reframing the relationship. Student exchange programs are beneficial in improving relations between countries. In 2016, the last year for which we could find numbers, there was an 8.5 percent increase in the number of Pakistani students studying in the United States — which is still just 11,000 Pakistani students. That is half of the 22,000 Pakistani students studying in China.

The United States must revisit its foreign aid program to support Pakistan in reaching its full potential. From recent informal conversations, it’s clear that neither OPIC, now the USDFC, nor EXIM Bank have sent a mission to Pakistan for many years. That needs to change. Our foreign aid has dropped drastically and is at levels far below what’s required, given the challenges. Creating a new relationship could take as a long as a decade but must begin now.

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