Cash-strapped Pakistan assures Maldives of help to fulfil 'development needs'

According to the statement, "President H.E. Dr. Mohamed Muizzu has been assured of the support of the Pakistani Government to address the pressing development needs of the Maldives. This reassurance was conveyed by H.E. Anwaar-ul Haq Kakar, the 8th caretaker Prime Minister of Pakistan, during a telephone conversation with the President."

The two leaders discussed the top priorities for the two countries and spoke about enhancing cooperation in the international arena. Pakistan's caretaker PM also conveyed his support and assistance to the Maldives’ efforts to mitigate the effects of climate change.

Interestingly, such assurance by Pakistan comes when the country is dealing with its own economic challenges ahead of a general election scheduled next week, with the country overly dependent on financial assistance from global money lender the International Monetary Fund (IMF).

However, the new partnership also comes as Pakistan is a close ally of China, and pro-China leader Muizzu is also pushing for closer relations with Beijing by distancing from a long-standing friendship with India.

India strained relations with Maldives

Before the Maldives row, India's assistance and platforms had contributed significantly to public welfare, humanitarian assistance, disaster relief, and combating illegal maritime activities in the island nation. The two advanced light helicopters, (ALH) and a Dornier aircraft, provided by New Delhi have been extensively used for humanitarian assistance and disaster relief operations. After enjoying long-standing friendly ties, relations soured between India and the Maldives when Muizzu won the November elections riding on an 'India Out' campaign.

However, things worsened when Maldivian ministers used derogatory remarks to insult PM Narendra Modi and India after he visited Lakshadweep. With this, the canceling & boycott trend started due to which there has been a significant decline of Indian visitors to the island nation in the last month. Earlier this month, Muizzu vowed to stop the emergency helicopter services as facilitated by India and fixed March 2024 as the deadline to stop the helicopter services and for the withdrawal of Indian troops.

Moreover, in the interim budget announced on Thursday, India allocated Rs 600 crore for the Maldives for this financial year, indicating that it will continue to provide support despite uneasy ties. India had allocated Rs 400 crore in 2023-24 but ended up spending Rs 770 crore as financial support. The top two countries in India's interim budget are Bhutan and Nepal with Rs 1,078 crore and Rs 700 crore respectively for development assistance.

But, Finance Minister Nirmala Sitharaman, has placed a significant focus on the development of domestic tourism in India and did not miss to include the name of Lakshadweep, the center of a diplomatic row between India and the Maldives.