KARACHI: Ever since Osama Bin Laden’s death during an operation in the first week of May, the tension in Pak-US relations has not come down. The recent attack of NATO forces on Pakistan territory which resulted in killing of 24 Pakistani soldiers has ignited the tension even further.
Islamabad responded by boycotting the Bonn conference. But, from a broader perspective, the resolve of the country’s executive will be tested in next few months amid declining investment and freeze on foreign financing, especially from IMF.
However, the country had shown resilience with containing inflation despite floods and ease in monetary policy and by still managing some growth, though minimal in key sectors.
The U.S. State Department has defended U.S. aid to Pakistan following new calls from some lawmakers for a review of whether economic and military assistance to the country is serving U.S. national interests.
It remains to be seen whether the reigning government is able to improve its public image with boycotting Bonn conference and taking measures like ordering vacation of a key airbase by NATO forces. If it is able to improve its public image, it can find some resolve to put forward key economic and tax reforms. But, amid the recent political climate and short sightedness both on the part of opposition and ruling executive, it seems a challenging task to continue the resolve shown in future too.
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