India surrounded by economic turmoil in neighbourhood | World News

The war in Ukraine that has led to economic instability has cast its shadow over the Indian subcontinent with Pakistan, Sri Lanka and now Bangladesh all approaching the Bretton Woods institution for Islamabad bailouts after Colombo and at risk of default due to declining foreign exchange reserves. The economic situation of Myanmar, the Maldives and even Nepal is in dire straits.

Five months after Russia invaded Ukraine, the war shows no signs of ending. Moscow is now gaining the upper hand and is calling for regime change in Kiev after it solidified its position in the eastern part of the country. While the European Union will feel the cold after cutting gas supplies from Russia by 20 percent, Moscow feels neither the political or economic heat of the sanctions imposed by the west.

This means that the war will continue until President Putin’s goals are met and, as a result, the economic crisis fueled by high inflation, precious crude oil and food shortages will continue. In short, the Indian neighborhood is in an economic turmoil which, as Sri Lanka has shown, could ignite political unrest.

The situation in Pakistan has reached a level where his army chief, General Qamar Jawed Bajwa, enlisted the help of US Undersecretary Wendy Sherman to urge the IMF to prepay a $1.5 billion loan as Islamabad risks ran out of payment. to a stiffening of the USD accompanied by declining foreign reserves. It is clear that General Bajwa has called on the US Undersecretary to supplement the efforts of the Pakistani political leadership, as the latter’s efforts were not taken so seriously.

While ousted Pakistani Prime Minister Imran Khan doesn’t give Niazi a chance to shoot at US leaders, Islamabad has no choice but to seek Washington’s help, as his iron brother China is in no position to help. Pakistan owes more than 25 percent of its foreign debt to China, which turns out to be the new East India Company in the Indian subcontinent.

The situation in Sri Lanka, another close friend of China, is deteriorating as the World Bank has refused to offer new financing until an adequate macroeconomic policy framework is in place. In a statement, the World Bank said the macroeconomic policy framework requires deep structural reforms aimed at economic stabilization and addressing the underlying structural causes that have caused this crisis to ensure that Sri Lanka’s recovery is resilient and inclusive. is.

The situation in Dhaka is not that dire, but there are signs of looming economic tension with a 10 percent price difference between the official purchase of a US dollar from a bank and the black market.

While the Bangladeshi currency Taka holds up against the dollar against the nearly-crashed Pakistani and Sri Lankan rupees, Dhaka has requested a $4.5 billion loan from the IMF to curb rising food and fuel prices. However, under the strong leadership of Sheikh Hasina, Bangladesh is showing no signs of political unrest standing in the way of increasing Islamic radicalization in the country.

While the institutionalized mechanism of the Indian rupee and Nepalese rupee will not allow the situation in Kathmandu to spiral out of control, political leadership is now realizing the importance of being financially cautious and not boasting about loans from China. The same is the situation in Myanmar, under the military junta, which is in an economic crisis and the Maldives is barely able to survive in the current recession.


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