Thursday, November 29, 2018

Kartarpur Corridor event at Pakistan

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In diplomacy, optics play a key role in forming overall perceptions of the intended audiences. And where optics are concerned, the historic Kartarpur Corridor event at Pakistan, was nothing short of a disaster.
No doubt Navjot Sidhu shares a good personal rapport with Prime Minister Imran Khan, and no one should have an issue if he wishes to take some credit for this historic event. But then, when our Union Cabinet had appointed two of our Union Ministers to grace the occasion, due importance should have been given to them. Imran Khan should have reserved his niceties for Sidhu to a low key, as he was on a private visit.
Secondly, let us not forget that this event was close on heels to the 10th anniversary of Mumbai attacks, and the perpetrators of such heinous attacks are yet to be brought to justice in Pakistan. How could an aide of one of the masterminds - Hafiz Saeed, was allowed to make an appearance and shake hands with Gen Bajwa? This optic has its obvious conclusions.
There is no point issuing such statements like, "If India takes one step forward to improve bilateral ties, Pakistan will take two", when actions and words in such an event were in stark contrast.
And at the very least, Sidhu should have politely countered his friend Imran Khan, that neither was he keen to contest elections in Pakistan nor was he aspiring to be our next Prime Minister right now. The fact that he did not do so, clearly puts a question mark on his intentions.
Going forward, let us remain optimistic about Prime Minister Khan being able to deliver on his intentions to mend fences with us. But at the same time, we also need to remain on high alert all the time to guard against any nasty surprises, as has happened in the past.
Finally, if by appointing Sidhu as our goodwill ambassador to Pakistan can make all the difference, then so be it.

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Thursday, November 1, 2018

RBI and Finance Ministry

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If the RBI's mandate is to ensure monetary stability, and Finance Ministry's mandate is to ensure fiscal stability, then can the monetary and fiscal stability co-exist without RBI and the Finance Ministry going hand-in- hand? Typical example, under normal circumstances, high taxes and less government spending should lead to lower interest rates to ensure the overall economic growth does not suffer.

Yes, there may be healthy differences between the two depending upon overall situation prevailing in the financial system as a whole. But at the end of the day, the Hon'ble Finance Minister is an elected representative of the people of India, and is answerable to our Parliament.

Thus, the top leadership of the RBI needs to be sensitive about the concerns expressed by the Hon'ble Finance Minister, and work out amicable solution/s to address the same.