On Wednesday, Yuan–the Chinese currency fell to a four year low, sparking global panic in the financial markets. World currencies including the Indonesian rupiah, Singapore dollar, Taiwan dollar, Philippine peso and the Indian rupee declined under the cascading effect of the fall in Yuan.
The devaluation of the Yuan was part of China’s response to its tepid growth rate and slowing exports and was favored by the International Monetary Fund (IMF) as a “welcome move”. Meanwhile, the Indian markets, like its international counterparts tumbled down sharply in the aftermath. The BSE Sensex, the Indian benchmark index plunged 354 points to close at 27,512, its lowest point in two weeks. The rupee shed 59 points to nearly touch its two-year low of 64.78.
In contrast to IMF’s findings, the devaluation has raised concerns over a brewing global currency war, with accusations being hurled at China for “unfairly” supporting its exporters.
The valuation of currency is determined vis-a-vis the US dollar and all emerging market currencies have nosedived against the global currency standard.
“The rupee is facing competitive devaluation pressure due to devaluation of Chinese Yuan. At a time when the Asian and other global majors are depreciating their currencies to safeguard the export market and the economy, India, with a strong currency is at an economic disadvantage”,says Anindya Banerjee, Vice-President at Kotak Securities.
China is India’s largest trading partner and accounts for a huge chunk of its trade deficit ($48.5 billion). As such price fluctuations in currency rates do not have a direct bearing on the exports, but the loss in competitiveness along with the surge in hedging costs definitely dents overall export scenario.
China contends that the devaluation is only a one-time affair intended to make yuan more responsive to market forces. However, most market players are apprehensive as to the Chinese claims. Exporters fear more measures might be under the works.
According to Ajay Sahai, director general of Federation of Indian Export Organizations (FIEO) estimates that each percentage fall in the rupee negatively impacts exports by 0.3 per cent.
However, economists believe that there has been little or no co-relation between export growth and rupee depreciation. Global demand is thought to be a more credible factor in driving export growth while currency movement plays only a small part.
“The exports have lost competitive edge due to non-price factors such as competitiveness, logistics and infrastructure”, says DK Joshi, chief economist at Crisil.
Still other feels that the decision has more to do with the recent crash in Chinese stock markets, which had sparked suspicions on its fundamental resilience. Some believe that the liberalization of the Chinese currency is in line with its long-term plan to cement its place as the global reserve currency, either with the US dollar or as its replacement.
However, as per official data from the Bank for International Settlements suggest that the Yuan was indeed overvalued. Last year in June, it was up 14 per cent. A year earlier, the figure was up by 20 per cent.
In light of the weakness witnessed by China in the past few weeks, it is but natural for China to take corrective measures. The long-term implications of the steps are also clear, to give Yuan a global face-lift. A bold move indeed by Beijing.
Even after 70 years of Pakistan’s creation, Balochistan refuses to associate itself as a part of the country
Pakistan’s military occupation of Balochistan began in 1948 before which the province had existed as an independent state
The insurgency in Balochistan traces its roots in ethnic nationalism along with feelings of political and economic exclusion
Balochistan, August 31, 2017 : Located in the South West of Pakistan, the Balochistan province of Pakistan constitutes nearly 45 per cent of the country’s territory. However, even after 70 years of Pakistan’s creation, the people of the province refuse to associate themselves with Pakistan or its framework of a nation state. They believe they have been Balochis for over three thousand years, who have now been invaded.
“It is freedom struggle,” believes activist Naela Quadri Baloch like many other Baloch nationalists. According to her, Balochistan had been occupied by Pakistan in 1948 and “ever since we have been fighting against Pakistan to free ourselves”, she believes.
What can I say on the day of #EnforcedDisappearance. I have lived a witness of the sufferings of my people waiting days, months and years.
In 2016 during an interview with The Times of India, the women’s leader and activist Naela Quadri Baloch had asserted that Pakistan is not interested in Kashmiris but specifically in the territory of Jammu and Kashmir for its desire to control the Indus river system. Similarly, it is also not interested in the Balochis, but the land of the state for its strategic location and mineral reserves.
Baloch nationalists assert that Pakistan’s economy is dependent on loans from the IMF, World Bank and the Western countries that are allegedly taken on the pretext of Balochistan’s rich mineral resources. They further claim that Pakistan’s strategic importance is also due to Balochistan coast. Pakistan would not be able to survive, which is why it does not want Balochistan to emerge as an independent state.
While the world views it as an insurgency movement, Balochis address their protests as a freedom struggle to liberate and unify their people and land from control of Pakistan, Iran and Afghanistan.
They maintain that Balochistan was never a part of India or Pakistan and it had always been an independent country.
Balochistan At The Time Of Partition
Balochistan comprises of four erstwhile princely states – Kalat, Kharan, Lasbela and Makran, that had been unified by Naseer Khan, the Khan of Kalat.
During the British rule, the province was divided into British Balochistan (25 per cent) and Native Balochistan, occupying 75 per cent of the total territory with people pledging adherence to Naseer Khan.
Immediately following partition and the creation of Pakistan, Khan’s descendant, Mir Ahmed Yaar Khan was faced with three options – independence, or accession to either India or Pakistan. He decided upon independence, following which a communiqué was released on August 11, 1947 giving independent sovereign status to Kalat.
However, by October 1947, Mohammad Ali Jinnah mooted Kalat to formally join the state of Pakistan. The Khan of Kalat did not agree to the accession which was followed by a standstill between the two leaders upon the status of present-day Balochistan.
Becoming A Part Of Pakistan
By April 1948, the Pakistan army moved into the province and captured Kalat. The Khans’ attempts of an armed campaign against the Pakistan army went futile and the province was merged with Pakistan by June 1948.
At the center of Balochistan’s forced accession was Mohammad Ali Jinnah, who had previously been hired by the Khans for his legal services to negotiate Kalat’s independent status with the Britishers.
Before partition, Jinnah had successfully mooted an ‘Independent Status’ of Kalat for which he was graciously awarded with gold. But, Balochistan breathed as a free country only from August 1947 to March 1948, after which Jinnah breached trust and betrayed the Khan, forcing the Pakistani invasion and eventual accession of Kalat.
Surprisingly, during the struggle and annexation of present-day Balochistan, the Indian Congressmen, Mahatma Gandhi or the then-Governor General Lord Mountbatten made no attempts to hinder in the remonstration. This indifference can be attributed to the Indian leaders’ failure to realize the strategic implication of a sovereign Balochistan at the time.
A Growing Ethnic Nationalism
Following the formation of Pakistan, distorted power relations existed among different Muslim ethnicities. Additionally, unchallenged power was exercised by Punjabis who comprised of about 56 per cent population of the state.
In 1954, the One Unit scheme was launched by the federal government of Pakistan to merge the four existing provinces of West Pakistan (Khyber-Pakhtunkawa, Sindh, Balochistan and Punjab) to form a homogeneous, united political entity in an attempt to,
Forge national unity on basis of Islam and geography
Reduce gross expenditure
Help eliminate ethnic prejudices.
The move triggered violence throughout the country and especially in Balochistan, wherein this was interpreted as a strategy to establish Punjabi domination.
Balochistan rose against the move, which came to an end in 1970 with the overthrow of the One Unit scheme.
However, following the rebellion, a strong sense of nationalism, propounding larger political autonomy and a separate state for Balochistan broke a full-fledged insurgency from 1973 to 1977; over 80,000 personnel were deployed to quell the rebellion.
Armed struggle to achieve separation from Pakistan lasted throughout the 1970s, in which 3,300 army personnel and 5,300 Balochis were killed. However, the Pakistani government successfully compressed the movement.
Baloch nationalists have repeatedly argued that they are yet to receive any benefit from the development projects that have been initiated by the government in Balochistan.
Reportedly, the Sui Gas Field in Balochistan caters to most urban households in the country. Despite producing about 45 per cent of gas for Pakistan, the province gets to consume a mere 17 per cent. Additionally, the Balochis get a nominal amount of Pakistani Rupees 6 for a 24-hour supply.
The Pakistani government, in collaboration with China, initiated the development of the Gwadar port in the province, with an aim to better trade ties with Asia, Europe, and US. However, a large number of Punjabis and non-Baloch people were hired for the project, leaving an increasing population of Baloch engineers and technicians unemployed.
Balochistan has one of the world’s richest reserves of copper and gold. However, as much as 16 kgs of gold is seized everyday by the Chinese under an arrangement with the government, which robs the Balochis of major economic benefits.
Despite being one of the country’s key providing areas,
80 per cent population of Balochistan continue to live in the absence of safe drinking water
80 per cent people do not have access to electricity
70 per cent children have never been to school
63 per cent of Balochis live below the poverty line
It frustrates me to see d natives of Gwadar dying of thirst. No drinking water for locals thanks to all being spent on so-called CPEC scam.
While ethnic nationalist interests continue to worry Balochistan, a primary demand has also been about better control over the economic resources of the region.
However, the Pakistani government blames the nationalist struggle in the region for impeding the developmental process.
Political Subjugation By Islamabad
Balochistan makes up nearly 45 per cent of Pakistan’s territory but the Balochs comprise only 5 per cent of the total population, making them a minority in Pakistan.
Their representation in the National Assembly of Pakistan is also negligible (17 out of 342) which reveals that the Balochis have lost their say in policy formulations and are forced to adhere to laws that have been put in place for them by power honchos sitting in Islamabad.
Additionally, the Pakistan government centered in Islamabad has eradicated most of the Baloch activists and nationalists, calling them ‘foreign agents against the state’. This can be supplemented with the murder of Nawab Akbar Khan Bugti who was an ex chief minister of Balochistan.
Ever since the creation of Pakistan, it has been evident that the Pakistan government is more concerned with occupying the physical territory of Balochistan, with meager interest in its indigenous population.
The Pakistan army, on command of the government has employed every possible armory against its own people of Balochistan, in an attempt to contain the province within its seizure. Furthermore, army cantonments have been established at Dera, Gwadar, Bugti and Kohlu to gauge activity and movement of the Baloch people.
Additionally, despite occupying 45 per cent of Pakistan’s territory, the budget allocated to Balochistan is minuscule in comparison to its vast landmass.
In 2002, General Pervez Musharraf had striked a deal with China over the Gwadar port development as part of China Pakistan Economic Corridor (CPEC). Baloch people condemned the allocation of land to the rich businessmen of Punjab and Karachi and further lamented the unemployment stemming from the project. The move also instigated further violence in the region.
As of now, according to report, all 22 districts of Balochistan continue to suffer at the hands of the enduring insurgency with the tally of displaced people now crossing over 2 lacs.
In more recent times, the Pakistan army took aid of suicide bombers to tackle the ongoing insurgency. On August 8, 2017, as many as 54 lawyers became victims of a suicide attack, which is being touted as a State-funded action as the group included several Baloch activists who had been vocal about Pakistan army’s interference in state affairs.
According to a report published in Dawn,prince of the now redundant Kalat state, Prince Mohyuddin Baloch who is now the Baloch Rabita Ittefaq Tehreek chief, had said that Balochis are not looking to wage wars. Until now, Balochis have not once attacked Pakistan, but only defended themselves.
He said the objective of their protests has been to draw the government’s attention. However, regretfully, no one is paying any heed to their cries.
Dr. Aasim Sajjad Akhtar had rightly quoted in an article in the Economic and Political Weekly that the “ethnic difference remains the single biggest fault line in Pakistani politics.”
The Balochistan insurgency thus, traces its roots in a ripe ethnic nationalism along with feelings of political and economic exclusion. This animosity among the country will continue unless Pakistan accepts its non-Muslim history.
NewsGram is a Chicago-based non-profit media organization. We depend upon support from our readers to maintain our objective reporting. Show your support by Donating to NewsGram. Donations to NewsGram are tax-exempt.
Click here- www.newsgram.com/donate