top of page

By:

Kaustubh Kale

10 September 2024 at 6:07:15 pm

The Constitution of Your Money

On the eve of India’s Republic Day, we proudly remember the adoption of our Constitution - a document that gave structure, stability and direction to a young nation. It did not promise instant success, but it provided a framework strong enough to withstand crises, disagreements and change. Interestingly, the same philosophy applies to personal finance. Just as a nation cannot function without a Constitution, your money too needs a clear set of rules. Wealth is not built by chance or luck. It...

The Constitution of Your Money

On the eve of India’s Republic Day, we proudly remember the adoption of our Constitution - a document that gave structure, stability and direction to a young nation. It did not promise instant success, but it provided a framework strong enough to withstand crises, disagreements and change. Interestingly, the same philosophy applies to personal finance. Just as a nation cannot function without a Constitution, your money too needs a clear set of rules. Wealth is not built by chance or luck. It is built by discipline, structure and long-term thinking. Right to Financial Dignity The Constitution guarantees citizens fundamental rights. In personal finance, you too have rights - the right to financial security, the right to dignity in retirement, and the right to protect your family’s future. These rights do not come automatically. They are earned through systematic investing, adequate insurance and prudent planning. Ignoring these rights early in life often leads to financial dependence later, something no individual truly wants. Responsibility of Discipline Along with rights come duties. Citizens are expected to uphold the values of the Constitution. Similarly, investors must uphold financial discipline. Saving regularly, investing sufficiently and consistently, avoiding unnecessary debt and living within one’s means are not optional habits - they are duties. Many people want wealth, but few respect the responsibility that comes with building it. Without discipline, even high incomes fail to create lasting financial stability. Managing Risk A strong republic survives because power is balanced across institutions. In finance, this balance comes from asset allocation and diversification. Long-term goals should be supported by inflation-beating assets such as stocks, mutual funds and gold. Money meant for short-term goals must be parked in safer avenues like bank fixed deposits, recurring deposits or debt mutual funds. This allocation ensures that you create wealth while also having liquidity for near-term expenses or emergencies. Equally important is protecting your assets with adequate health insurance and term life insurance. Evolving With Life Our Constitution allows amendments to stay relevant over time. Financial plans too must evolve. Income changes, family responsibilities grow, goals shift and priorities change. A plan made three years ago may not suit today’s reality. Reviewing and updating investments periodically is not a sign of uncertainty, but of maturity. Flexibility ensures relevance without abandoning core principles. Process Over Emotion A republic functions because laws are followed, not because emotions are trusted. Similarly, successful investing depends on process, not panic or excitement. Market highs and lows will come and go. Investors who react emotionally often do more harm than good. Those who follow a clear financial framework remain aligned with their long-term goals. As we celebrate Republic Day, it is worth reflecting that freedom alone is not enough - structure sustains freedom. A nation survives because its Constitution is respected. Wealth survives because financial discipline is respected. Your money deserves a Constitution of its own. (The writer is a Chartered Accountant and CFA (USA). Financial Advisor. He could be reached on 9833133605. Views personal.)

Pakistan’s missile programme: Strain ties with US, China

Updated: Oct 21, 2024

Pakistan’s missile programme: Strain ties with US, China

The recent imposition of US sanctions targeting Pakistan’s ballistic missile program has left authorities in Islamabad both shocked and deeply concerned. On Thursday, the US State Department imposed restrictions on several Chinese companies and a research institute accused of supplying critical technology to Pakistan’s missile capabilities.

The sanctions focus on China’s alleged role in supporting Pakistan’s missile programme, with the US accusing the Beijing Research Institute of Automation for Machine-Building Industry of assisting Islamabad in procuring equipment used to test rocket motors for the Shaheen-3 and Ababeel missile systems. These systems form the backbone of Pakistan’s missile arsenal, which is seen as crucial for maintaining a strategic balance in the region, particularly with India.

In addition to the Beijing Research Institute, the US also sanctioned Chinese companies Hubei Huachangda Intelligent Equipment Co., Universal Enterprise, and Xi’an Longde Technology Development Co. A Pakistan-based firm, Innovative Equipment, and a Chinese national were similarly targeted for knowingly transferring equipment restricted under missile technology regulations. According to US State Department spokesperson Matthew Miller, these actions reflect Washington’s commitment to countering missile proliferation and associated procurement activities wherever they occur.

This latest move follows an earlier round of sanctions in October 2023, when three China-based companies were similarly targeted for supplying missile-related items to Pakistan. The cumulative effect of these sanctions has triggered widespread concern within Islamabad. Although Pakistani authorities have not made any formal public statement, sources suggest these sanctions are viewed as a significant blow, especially when Pakistan grapples with severe economic challenges.

China, Pakistan’s long-time ally, has reacted strongly to the sanctions. Liu Pengyu, the spokesperson for the Chinese embassy in Washington, condemned the sanctions as a breach of international law, criticising the US for its “unilateral actions and long-arm jurisdiction.” Liu further stated that China would “firmly protect” the rights and interests of its companies and citizens, signalling that Beijing does not intend to take these measures lightly.

The imposition of these sanctions has reignited debate about US-Pakistan relations. For many in Pakistan, this latest move reaffirms long-standing suspicions about the United States’ reliability as an ally. Despite Pakistan’s significant sacrifices in the US-led war on terror—both in terms of human lives and economic losses—Washington’s actions continue to strain bilateral ties. The view that the US has never been a true friend of Pakistan is gaining traction, particularly among those who feel that Islamabad’s contributions to global counterterrorism efforts have been overlooked.

This growing sentiment has increased scrutiny of Pakistan’s foreign policy approach towards the United States. Analysts and foreign policy experts are asking whether Islamabad’s historical reliance on Washington remains a viable strategy in today’s geopolitical climate. Some suggest the time has come for Pakistan to reconsider its approach and explore a broader range of alliances.

Among the most prominent suggestions is to adopt a foreign policy model similar to India’s. Despite the complex global landscape, India has managed to maintain strong relationships with the United States, Russia, and China simultaneously, allowing it to navigate competing global interests while protecting its national priorities. In contrast, Pakistan’s foreign policy has often been viewed as too dependent on its ties with Washington, leaving it vulnerable to actions such as these latest sanctions.

Conversations with senior government officials reveal mounting pressure within Islamabad’s foreign policy establishment to reassess the country’s strategy. Many argue that if India can successfully balance its relationships with multiple global powers, Pakistan should be capable of pursuing a similar approach. A shift in this direction could help Islamabad mitigate the risks associated with over-reliance on a single ally and open up new diplomatic and economic opportunities.

The current trajectory of US-Pakistan relations appears increasingly uncertain, and the imposition of these sanctions has underscored the need for a strategic recalibration. While Washington continues to wield significant influence on the global stage, Pakistan may find it prudent to cultivate stronger ties with other major powers, such as China and Russia, to create a more balanced and diversified foreign policy.

Such a shift, however, would not be without its challenges. The United States remains a key global player, and its influence over international institutions and financial systems cannot be ignored. Nevertheless, for Pakistan, the risk of continuing to rely on a single, often unpredictable partner may outweigh the potential benefits.

As the debate over Pakistan’s foreign policy direction intensifies, it is clear that the US sanctions have not only impacted the country’s missile programme but have also triggered a broader reassessment of its strategic alliances. For Islamabad, the future likely lies in forging a path that reduces dependency on any one power while simultaneously enhancing its relationships with multiple global actors. This approach could offer greater resilience in an increasingly multipolar world, where flexibility and balance are key to safeguarding national interests.

(The writer is a senior journalist based in Islamabad. Views personal.)

Comments


bottom of page