The Rentier State: Pakistan’s new defence agreements and ‘defence for dollars strategy’

Pakistan has signed new defence agreements with various countries, adopting a 'defence for dollars strategy'. This approach involves securing financial assistance in exchange for military cooperation. The move aims to bolster Pakistan's economy, which has been struggling with a significant trade deficit. The strategy may bring in some much-needed foreign exchange, but its long-term implications are uncertain, given Pakistan's existing client-state relationship with China.

Why it matters

Pakistan's new defence agreements with China may not be effective in the long term and could lead to economic instability. This could negatively impact Pakistan's economy and investor confidence.

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