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Brain-booster / 13 Sep 2020

Current Affairs Brain Booster for UPSC & State PCS Examination (Topic: Pakistan and Saudi Arabia Drifting Apart)

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Current Affairs Brain Booster for UPSC & State PCS Examination


Topic: Pakistan and Saudi Arabia Drifting Apart

Pakistan and Saudi Arabia Drifting Apart

Why in News?

  • The long-time allies, Pakistan and Saudi Arabia, appear to be drifting apart, with Saudi preferring to build ties with India rather than criticise it over Kashmir.

Background

  • The relationship between Saudi Arabia and Pakistan was most prominent during the 1971 war between India and Pakistan.
  • Over the last two decades, Saudi Arabia has provided oil on deferred payments to Pakistan whenever it ran into economic difficulty.
  • Last year, after India revoked Article 370 in Kashmir, Pakistan lobbied with the Organisation of Islamic Conference (OIC) for its condemnation of India’s move.
  • To Pakistan’s surprise, Saudi Arabia and the UAE issued statements that were nuanced rather than harshly critical of New Delhi.
  • Over the last one year, Pakistan has tried to rouse the sentiments among the Islamic countries, but only a handful of them — Turkey and Malaysia — publicly criticised India.
  • Saudi Arabia’s change in position has been a gradual process under Crown Prince Mohammed bin Salman (MBS).
  • As it seeks to diversify from its heavily oil-dependent economy, it sees India as a valuable partner in the region.

Pakistan – Saudi Arabia Relations

  • The tension between Saudi Arabia and Pakistan has been brewing for some time.
  • In 2015, Pakistan’s Parliament decided not to support the Saudi military effort to restore an internationally recognised government in Yemen.
  • According to the Pakistan, Saudi Arabia has failed to deliver on the Kashmir cause was an indication of Islamabad — and Rawalpindi’s — frustration that OIC had not played a leadership role in backing Pakistan against India.
  • In November 2018, Saudi Arabia had announced a $6.2 billion loan package for Pakistan. The package included of $3 billion in loans and an oil credit facility amounting to $3.2 billion.
  • Riyadh demanded the return of the $3 billion loan and refused to sell oil to Islamabad on deferred payment. Pakistan immediately returned $1 billion, displaying the rift.
  • What has also angered Saudi Arabia is that Pakistan has been trying to pander to Turkey and Malaysia. Turkey’s President Recep Tayyip Erdogan is seen as trying to position himself as the new leader of Muslim world, challenging Saudi Arabia’s longheld position.

Pakistan Pushing Saudi Out

  • Pakistan and China have called themselves “all-weather allies” and “iron brothers”. Over the last one year, Beijing has supported Pakistan on Kashmir, raising the issue at the UN Security Council thrice.
  • China has also emerged as Pakistan’s biggest benefactor through its funding of the ChinaPakistan Economic Corridor. Originally valued at $46 billion, China’s commitment to Pakistan now stands at $62 billion.
  • Saudi Arabia too has invested in CPEC projects, to the tune of $10 billion, but Pakistan now looks towards Beijing for both diplomatic and economic support.
  • Pakistan’s economic relationship with Saudi Arabia is showing signs of long-term decline. Oil is becoming less important to Pakistan as it relies more on liquefied natural gas from Qatar and Chinese-backed coal projects.

Implications for India

  • India, which is closely watching the developments between Pakistan and Saudi Arabia, has not said anything publicly. But, Saudi’s silence on J&K as well as CAA-NRC has emboldened the Indian government.
  • Both New Delhi and Riyadh see value in their relationship. At a time when India and China are locked in a border standoff, India would be wary of Pakistan and China teaming up.
  • But with Saudi Arabia in its corner for now, it may have leverage over Pakistan — Riyadh would not want a conflict and regional instability.
  • What is key to India’s calculus is that the Pakistan-China and the PakistanSaudi axes are not fused together at the moment: It is not a SaudiPakistan-China triangle.