UNIT IV

SAARC

The South Asian Association for Regional Cooperation (SAARC) was established with the
signing of the SAARC Charter in Dhaka on 8 December 1985.

The idea of regional cooperation in South Asia was first raised in November 1980. After
consultations, the foreign secretaries of the seven founding countries—Bangladesh, Bhutan,
India, Maldives, Nepal, Pakistan, and Sri Lanka—met for the first time in Colombo in April
1981.

Afghanistan became the newest member of SAARC at the 13th annual summit in 2005.

The Headquarters and Secretariat of the Association are at Kathmandu, Nepal.

What are its Principles?

Cooperation within the framework of the SAARC shall be based on:

Respect for the principles of sovereign equality, territorial integrity, political independence, non-
interference in the internal affairs of other States and mutual benefit.

Such cooperation shall not be a substitute for bilateral and multilateral cooperation but shall
complement them.

Such cooperation shall not be inconsistent with bilateral and multilateral obligations.

Who are the Members of SAARC?

SAARC comprises of eight member States:

Afghanistan

Bangladesh

Bhutan

India

Maldives

Nepal

Pakistan

Sri Lanka
There are currently nine Observers to SAARC, namely:

Australia,

China,

The European Union,

Iran,

Japan,

The Republic of Korea,

Mauritius,

Myanmar,

The United States of America.

What are the Areas of Cooperation?

Human Resource Development and Tourism

Agriculture and Rural Development

Environment, Natural Disasters and Biotechnology

Economic, Trade and Finance

Social Affairs

Information and Poverty Alleviation

Energy, Transport, Science and Technology

Education, Security and Culture and Others

What are the Objectives of the SAARC?

To promote the welfare of the people of South Asia and to improve their quality of life.

To accelerate economic growth, social progress and cultural development in the region and to
provide all individuals the opportunity to live in dignity and to realize their full potentials.

To promote and strengthen collective self-reliance among the countries of South Asia.

To contribute to mutual trust, understanding and appreciation of one another’s problems..

To promote active collaboration and mutual assistance in the economic, social, cultural, technical
and scientific fields.

To strengthen cooperation with other developing countries.

To strengthen cooperation among themselves in international forums on matters of common

interests, and

To cooperate with international and regional organizations with similar aims and purposes.

What are the Principal Organs of the Cooperation?

Meeting of Heads of State or Government

Meetings are held at the Summit level, usually on an annual basis.

Standing Committee of Foreign Secretaries

The Committee provides overall monitoring and coordination, determines priorities, mobilizes
resources, and approves projects and financing.

Secretariat

The SAARC Secretariat was established in Kathmandu on 16 January 1987. Its role is to
coordinate and monitor the implementation of SAARC activities, service the meetings of the
association and serve as a channel of communication between SAARC and other international
organizations.

The Secretariat comprises the secretary-general, seven directors, and the general services staff.

The secretary-general is appointed by the Council of Ministers on the principle of rotation, for a
non-renewable tenure of three years.

What are SAARC’s Specialised Bodies?

SAARC Development Fund (SDF):

Its primary objective is funding of project-based collaboration in social sectors such as poverty
alleviation, development, etc.

SDF is governed by a Board consisting of representatives from the Ministry of Finance of the
Member States. The Governing Council of SDF (Finance Ministers of MSs) oversees the
functioning of the Board.

South Asian University

South Asian University (SAU) is an international university, located in India. Degrees and
Certificates awarded by the SAU are at par with the respective Degrees and Certificates awarded
by the National Universities/ Institutions.

South Asian Regional Standards Organization

South Asian Regional Standards Organization (SARSO) has its Secretariat at Dhaka,
Bangladesh.

It was established to achieve and enhance coordination and cooperation among SAARC member
states in the fields of standardization and conformity assessment and is aimed to develop
harmonized Standards for the region to facilitate intra-regional trade and to have access in the
global market.

SAARC Arbitration Council

It is an inter-governmental body having its office in Pakistan is mandated to provide a legal

framework/forum within the region for fair and efficient settlement of commercial, industrial,
trade, banking, investment and such other disputes, as may be referred to it by the member states
and their people.

What is its Importance?

SAARC comprises 3% of the world's area, 21% of the world's population and 3.8% (US$2.9
trillion) of the global economy.

Creating synergies: It is the world’s most densely populated region and one of the most fertile
areas. SAARC countries have common tradition, dress, food and culture and political aspects
thereby synergizing their actions.

Common solutions: All the SAARC countries have common problems and issues like poverty,
illiteracy, malnutrition, natural disasters, internal conflicts, industrial and technological
backwardness, low GDP and poor socio-economic condition and uplift their living standards
thereby creating common areas of development and progress having common solutions.

What are its Achievements?

Free Trade Area (FTA): SAARC is comparatively a new organization in the global arena. The
member countries have established a Free Trade Area (FTA) which will increase their internal
trade and lessen the trade gap of some states considerably.

SAPTA: South Asia Preferential Trading Agreement for promoting trade amongst the member
countries came into effect in 1995.
SAFTA: A Free Trade Agreement confined to goods, but excluding all services like information
technology. Agreement was signed to reduce customs duties of all traded goods to zero by the
year 2016.

SAARC Agreement on Trade in Services (SATIS): SATIS is following the GATS-plus 'positive
list' approach for trade in services liberalization.

SAARC University: Establish a SAARC university in India, a food bank and also an energy
reserve in Pakistan.

What is the Significance of SAARC for India?

Neighbourhood first: Primacy to the country’s immediate neighbours.

Geostrategic significance: Can counter China (OBOR initiative) through engaging Nepal,
Bhutan, the Maldives and Sri Lanka in development process and economic cooperation.

Regional stability: SAARC can help in creation of mutual trust and peace within the region.

Global leadership role: It offers India a platform to showcase its leadership in the region by
taking up extra responsibilities.

Game changer for India’s Act East Policy: by linking South Asian economies with South East
asian will bring further economic integration and prosperity to India mainly in the Services
Sector.

What are the Associated Challenges?

Low frequency of meetings: More engagement is required by the member states and instead of
meeting biennial meetings should be held annually.

Broad area of cooperation leads to diversion of energy and resources.

Limitation in SAFTA: The implementation of SAFTA has not been satisfactory a Free Trade
Agreement confined to goods, excluding all services like information technology.

Indo-Pak Relations: Escalated tension and conflict between India and Pakistan have severely
hampered the prospects of SAARC.

What can be the Way Forward?

In a region increasingly targeted by Chinese investment and loans, SAARC could be a common
platform to demand more sustainable alternatives for development, or to oppose trade tariffs
together, or to demand better terms for South Asian labour around the world.
SAARC, as an organisation, reflects the South Asian identity of the countries, historically and
contemporarily. This is a naturally made geographical identity. Equally, there is a cultural,
linguistic, religious and culinary affinity that defines South Asia.

The potential of organisation to maintain peace and stability in the region should be explored by
all the member countries.

SAARC should be allowed to progress naturally and the people of South Asia, who make up a
quarter of the world’s population should be offered more people-to-people contact.

PAKISTAN

Pakistan in a Crisis Anew

Pakistan is in a grave crisis caused by the incumbent government. But what exactly is the issue?
Well, some of the major problems the country is currently facing are the rising levels of inflation
and the government’s inability to deal with it, the chaos caused by the withdrawal of US troops
from Afghanistan, retainment of Pakistan in the Greylist of the Financial Action Task Force
(FATF), and the skirmish between Prime Minister Imran Khan and the Pakistani Army. It is to
be noted that the next general elections in Pakistan are 2 years away from now and the Prime
Minister is looking towards winning another term.

Rising inflation levels

On November 23 2021, the Central Bank of Pakistan announced that the country shall witness a
5% growth by the end of the fiscal year in June 2022. On the other hand, many reports suggest
that the country is undergoing a deep economic crisis. A study by the Intelligence Unit of The
Economist, after Pakistan’s Bureau of Statistics reported a 9.2% increase in inflation in a year
since October 2020, concluded that the country shall face this economic crisis for another 6
months. The rupee has been depreciating at a high rate and the inflation rate in Pakistan is the
fourth highest in the world (it stood at 12.66 percent, as of October 2021). Due to this issue,
many political parties, as well as the general public, have been exerting pressure on Prime
Minister Imran Khan. There have been a lot of protests since mid-October and they seem to last
longer.

Though the country has received a nod for a financial package of $6 billion worth of funding
from the International Monetary Fund (IMF), it was stalled earlier this year due to issues
surrounding a few reforms that the IMF had wanted Pakistan to bring about. On November 21,
Pakistan finally agreed to execute the reforms, amidst the gruelling crisis. This does bring a sigh
of relief to the country, but how long can it sustain itself depending on external sources? Fuel
prices have been on the surge and so have been the prices of other essential commodities. Its
foreign exchange reserves have been sliding and the current account deficit has been widening.
The circumstances don’t seem favourable for Pakistan at the moment.

Saudis comes to Pakistan’s rescue

Pakistan took a loan of $3 billion in late November from Saudi Arabia at a rate of 4 percent
interest for a year. This is even higher than the interest rates that China imposes. This loan from
Saudi comes with a lot of restrictions and it can potentially take away Pakistan’s financial
sovereignty. The clauses say that Pakistan has to pay back the debt in just 48 hours in case it
defaults. The definition of default has a very wide scope, as has been mentioned by the Saudis,
and can immensely hurt the Pakistani economy.

The default clause can be used by the Saudis if Pakistan fails to abide by any international
agreements relating to trade and also if the country fails to increase its taxes on fuel prices, which
is already soaring. Pakistan has surely been rescued from any immediate economic crisis since it
has reserves enough, as of now, but it has almost lost its financial sovereignty since Saudi Arabia
can impose any restrictions on the country now. Also, Saudi Arabia now has the potential to
influence Pakistan diplomatically and force it to take up measures to combat terrorism.

FATF greylisting of Turkey and retainment of Pakistan in the list

While the USA and Turkey have been allies for decades, they have been witnessing the nadir of
their relations lately. While Pakistan has been retained on the grey list of the Financial Action
Task Force (FATF), the global terror financing watchdog, Turkey is a new entrant on the list.
This is obviously due to the weakening of the latter’s ties with the USA as well as its
ineffectiveness in tackling money laundering and counter-terrorism cases.

The retainment of Pakistan in this list has severe consequences for the country since it shall not
be provided aid from external sources. Even if provided, there shall be many reforms sought
from the country. There will be greater surveillance of activities being carried out on Pakistani
soil. Though there shall be no legal consequences for being retained in the list, Pakistan shall be
facing backlash from the international community for not taking adequate steps to combat
terrorism.

Isn’t China helping Pakistan?

We have all heard that China and Pakistan are allies. But why isn’t China coming to the rescue
of Pakistan? Well, China isn’t willing to rescue any country unless it has any benefits for itself. It
is involved in quite a few projects in Pakistan, including the China Pakistan Economic Corridor
(CPEC) and the One Belt One Road (OBOR) initiatives. But as has been the case with Sri Lanka
and many other countries, China’s modus operandi is the famous, or rather infamous, debt-trap
diplomacy.
Under the debt-trap diplomacy, China finances non-viable projects in different countries (in the
form of loans) and the receiving country eventually gives up its sovereignty to China. The rates
of interest that China charges on these loans are very high and Pakistan cannot afford to take
them from China. It is also surprising how Pakistan resorted to taking a rather higher interest
loan from Saudi Arabia instead.

The Afghan-factor

While many countries have applauded the help Pakistan had extended to various countries by
evacuating their citizens from Afghanistan in August last year, very few have forgotten the fact
that Pakistan itself sponsored the growth of terrorism on Afghan soil. Besides this, Afghanistan
is now ruled by the Taliban who are extremely unpredictable. Pakistan has its Embassy and other
diplomatic channels open in Afghanistan, and there has been no air of hostility between the two
countries as of now. But there could be any adverse consequences due to the terror activities
carried out by the Taliban inside Pakistan.

It is also of significant importance to talk about the US-Pakistan relations post the withdrawal of
US troops from Afghanistan. The 2-decade long friendship between the US and Pakistan has
been majorly shaped by the former’s interest in Afghanistan. With the fall of the civilian
government in Afghanistan and the rise of the Taliban, the US certainly does not need to endure
its friendship with Pakistan. Prime Minister Imran Khan, in his speech at the United Nations
General Assembly after the Taliban’s capture of power, said that there is a chance that the
instability in Afghanistan spills over into Pakistan and called the global community to recognize
the Taliban regime and help it gain stability. PM Khan said so, despite the stringent Taliban
regime subjecting female citizens to inequality and suppressing any kind of dissent.

The tussle between the Prime Minister and the army

There has been a cold war between Prime Minister Imran Khan and the Army Chief, General
Qamar Javed Bajwa, which ended in October this year. The issue was surrounding the
appointment of the new chief of the ISI, the Pakistani intelligence agency. General Bajwa wanted
to replace Lt General Faiz Hamid with Lt General Nadeem Anjum as the Chief of the ISI. But
since PM Khan had a good rapport with Lt General Hamid, he declined to approve of the
appointment of Lt General Anjum. General Bajwa did send in a couple of names for the position
so that they could be interviewed by PM Khan, but the former was clear that he would not have
anyone except for Lt General Anjum.

PM Khan, after Pakistan beat India in a T20 match in Dubai, rejoiced the victory publicly and
made comments that could further worsen the country’s relationship with India. It is widely seen
as the PM’s attempt to assert his supremacy over the army since General Bajwa refrains from
making any controversial statements in public.
Coming to why PM Khan was reluctant to change the ISI Chief, it is due to the support that he
requires from the ISI Chief to win the next elections, due in 2023. PM Khan wanted someone
who would favour him. But later in the month, PM Khan had to give in and appoint Lt General
Anjum as the Chief of the ISI.

The need to rethink counter-terrorism measures

Pakistan has received backlash from the global community for its inefficiency in combatting
terrorism. It needs to mend its ways in order to have other countries aid it in times of distress.
Pakistan now has very few allies, out of which Turkey is itself not in a position to help Pakistan,
and China never gives grants but only loans. For Pakistan’s economy to stabilize, it has only one
option - that is, the implementation of stringent measures to fight terrorism in the region. It is
only then that the global community would be willing to help Pakistan overcome its economic
crisis.

PAKISTAN ARMY’S INFLUENCE ON POLITICS

Martial law is when the army takes over all domestic affairs of the country. This concept isn’t
utopian to Pakistan, it has been under military coups thrice under four different military rulers.
Pakistan is constitutionally a democratic parliamentary republic with its political system based
on elected form of governance. But over the years, it has continuously fallen under the rule of
martial law.

Pakistan first came under military rule in 1958 when President Iskander Mirza abrogated the
constitution and declared martial law with Gen. Ayub Khan as the Chief Martial Law
Administrator, a few weeks later Ayub Khan was made the President of Pakistan. This first
martial law lasted 44 months officially but Gen Ayub Khan only left office in 1969 and named
Gen. Agha Mohammad Yahya Khan as his successor. Like Khan, Gen. Yahya Khan was the
Chief Martial Law Administrator. After the severe loss to India in the war of 1971, Gen. Yahya
Khan unlike Gen. Ayub Khan could not choose his successor and had no choice but to name
Zulfiqar Ali Bhutto, who emerged victorious in the nation’s first general elections, as his
successor.

The second military coup took place in 1977 when Gen. Zia ul Haq and his army dissolved the
parliament and placed Bhutto under house arrest. Zia ul Haq initially came to power promising a
fairer election with an even more suitable result but it was soon realized that Zia had no intention
of leaving. Gen. Zia ul Haq finally resigned in 1985 after handpicking Muhammad Khan Junejo
as the country’s new prime minister while also ending Pakistan’s second experience under
martial law.

The third and the last military coup took place in 2007 when Gen. Pervez Musharraf took over
from Nawaz Sharif. Sharif was already facing backlash from the country for retreating the
Pakistani forces out of Kargil. Sensing the possibility of a military coup, Sharif attempted to
replace Musharraf from his position as the Chairman of the Joint Chiefs of Staff Committee but
this wasn’t possible as the army itself favored Musharraf and instead, removed Sharif from his
post and replaced him with Musharraf. Musharraf finally resigned and brought an end to
Pakistan’s last military coup in 2008 with Asif Ali Zardari becoming the new President.

The National Assembly in 2010 passed the 18th Amendment of the Constitution of Pakistan.
This amendment implemented a lot of changes but the one most highlighted was that it removed
the power of the President of Pakistan to dissolve the parliament unilaterally turning Pakistan
from a Semi-Presidential to the Parliamentary Republic. The main aim of implementing such a
big change was to ensure that Pakistan now moved in a democratic direction preventing any sort
of military coup from taking place. It was then assumed that the power of the military would as a
result of this amendment reduce comparatively; the power once held entirely by the army would
be divided equally amongst the other democratic bodies (i.e. the legislature, executive, and
judiciary). Though Pakistan has since seen a fairly democratic transition of powers amongst the
heads of the states, the influence of the army on the decision-making bodies hasn’t reduced
recent developments suggest that it has increased in more subtle but prominent ways.

Pakistan has been ruled by four different military rulers under three different military coups,
which allows us to safely assume that no one generation in Pakistan has seen a complete
democratic rule, the military has always been involved so the people of Pakistan have started to
accept these interferences and control in the democracy. Ayesha Siddiqua, a Pakistani political
scientist has in her article in the East Asian Forum expressed her concern over the weakening of
politics in Pakistan as the people have almost stopped protesting to express their discontentment
with the government over even comparatively trivial but important matters like hike in food and
basic utilities. Siddiqua blames decades of ‘patronage politics’ that have systematically
weakened the politics in the country. Siddiqua also mentions how the second half of 2019 saw a
plummeting economy and rising inflation. But patronage politics deprived people of their
capacity to protest and conduct political movements. This clearly shows that Pakistan’s lack of
experience with democracy and excess experience with patronage politics now has a direct
impact on the expectations that the citizens of Pakistan have concerning a leader.

Reasons for the military’s resistance to renounce political control

Theoretically speaking, one wouldn’t expect an army that has since its inception had the
availability of excess power and control over the entire country to suddenly give it up for a
system like ‘Democracy’ which is so utopian to them. But the real problem is not Democracy, it
is that the military leaders feel that the political leaders in the past have failed to deliver Good
Governance hence, they believe they can do what the politicians failed to do. Once the military
has been exposed to supreme political powers like the ones under the cover of martial law or
emergency decrees, they are reluctant to surrender all such powers. Hasan Rizvi Sheikh mentions
the different courses of action available to them to maintain power – 1. The ruling generals
sometimes resign their military rank and civilianize their regime by co-opting civilians (this is a
course that was adopted by gen. Ayub Khan);

The military commanders can transfer power to those who share their political perspective or
establish a puppet civil government (like the PTI is currently accused to be);

They may keep an eye on the civil government after withdrawing to the barracks from which
they can pressure the civilians to adopt policies of the military’s choice (also what the army
seems to be doing currently).

Conclusion

The Pakistani army is no doubt facing a lot of backlash from the opposition parties in Pakistan so
there is visibly an increase in the pressure faced by both the military and Imran Khan’s
government. Imran Khan himself at times seems to be at a crossroads with the military but the
military will not let go of Khan soon. The reasons being – 1. The military does not have any
other potential leader who can replace Imran Khan 2. The PTI currently seems to be the only
party that could potentially take a step as big as to revoke the 18th Amendment of the
constitution simply because they were not in parliament to pass the same so they can oppose the
amendment without being hypocritical.

Prognosis

It is time to realise that the Pakistan army can not and will not ever play a role in maintaining a
peaceful democratic nation. But, in the near future, it is highly unlikely that the military’s power
will be reduced, in fact, the military will find new ways to increase its powers and influence over
the politics of Pakistan as it is doing so now. The current ‘hybrid regime’ in power is only the
beginning of a much bigger and far-fetched plan that includes the military regaining its supreme
political powers.