US President Donald Trump’s new tariff policies changed the dynamics of the world’s big economies. A trade war is already being witnessed across the globe. The United States and China are vying with each other, announcing reciprocal tariffs. Amid the trade war, nations like Pakistan are facing massive challenges, while India is moving ahead while maintaining equilibrium.
Pak expert warns of challenges
Yousuf Nazar, Former Chief of Citigroup’s Emerging Market Investment, wrote in his column for Dawn newspaper that India is utilising opportunities and enhancing its economic might amid the changes in the global economy. On the other hand, Pakistan is facing financial challenges, and the nation is struggling to build a space but is far from success.
Pakistan’s economy is already dependent
American economist Paul Krugman is of the view that Trump’s new tariff policies will end globalisation. He said Trump’s policies have weakened globalization, despite he is now offering some leniency. Krugman said there will be a trust deficit among the International community. Inflation will rise and Pakistan may have to face additional problems as its economy is already in the doldrums.
Apple sees India as manufacturing destination
According to Dawn, India has become a rising economy amid the trade war. Several countries have decided to move to India, and iPhone maker Apple has set a target to manufacture 25% of iPhones by 2025 in the country.
India has maintained relations with allies
In the changing scenario, India and the US have strengthened their relations, and both see China as their biggest competitor. However, India has continued its trade with China. India has not only strengthened its ties with the United States and maintained an equilibrium with China, but it has also focused on maintaining trust with its ally Russia.
CPEC kept foreign investors away from Pak
Pakistan’s position is not good as it was once a major ally of the United States during the war in Afghanistan. Advancements in technology and trade have reduced the importance of Pakistan. It is dependent on China through the China-Pakistan Economic Corridor (CPEC), which is also a major reason for foreign investors to show the least interest in the cash-strapped nation.
World Bank Vice President for South Asia Martin Raiser has warned that Pakistan’s economy will collapse soon.
