Despite being one of its founding members, Pakistan seems to have missed a chance to lead one of the key constituencies of the China-led Asian Infrastructure Investment Bank (AIIB). This is largely due to lack of coordination among the ministries concerned. According to sources, Islamabad is now making last-ditch efforts to secure, at best, two or three years of directorship on the bank’s board and trying to persuade Ankara to cede space for the purpose. Over the past many months, the ministry of foreign affairs has made little diplomatic efforts to secure a strategic position in the multilateral bank and the finance ministry’s solo flight did not bear fruit. In the meantime, Turkey launched an aggressive canvassing drive in the region, comprising mostly the Central Asian Republics, and got assurances of support from the countries concerned. It is now set to represent the region in the AIIB for about 10 years even though it joined the bank about six months after Pakistan did.Pakistan and Turkey are leading AIIB members, having 1.05 per cent and 2.66pc shareholding, respectively. Islamabad joined the AIIB in October 2014 and holds 10,341 shares, while Ankara joined it in April this year with 26,099 shares. The officials said Pakistan still had 9-10 days in which to secure directorship of the bank at least for two years, with the blessings of Turkey as the two countries had exemplary political and diplomatic relationship.
Pakistan has a history of taking economic diplomacy lightly. Over the decades the country has borrowed extensively from the IMF and the World Bank, and grown accustomed to enjoying privileged access to their resources by virtue of its strategic position in American foreign policy.
In the matter of the AIIB, there is a chance that the leadership will similarly take its access to the bank’s resources for granted by virtue of its close ties with China. This would be a mistake. It is well to bear in mind that India is the second largest shareholder in AIIB, and will therefore command considerable clout on the board in deciding who gets funding, as well as deciding on key questions on waivers and conditionalities.
The AIIB is less likely to show leniency for countries that are chronic users of its resources and perpetually in default of reform commitments. If Pakistan wishes to be anything more than a spectator at the AIIB, it will need to lift its game in the economic sphere, both in terms of enhancing its capacity to meet commitments as well as conducting its economic diplomacy more skillfully, with a closer eye on the meticulous placement of its pieces on the regional chess board.
pk.shafaqna.com
