Nasira Javed Iqbal daughter-in-law of Allama Sir Muhammad Iqbal and retired Judge of LHC explained, “I’ll tell you what crime you committed Dear IK.I’ve been asking why IK had to be removed immediately rather than wait for 16 months to complete the term. So here is the answer.
To understand this first let’s cover two concepts 1) What is Petrodollar. It’s an agreement signed between King Faisal and President Nixon in 1974. Saudi responsibility was to convince all OPEC countries to sell oil in US dollars and not accept any other currency or gold.
All proceeds from sale will be deposited in US banks or Federal Reserve. (Then there is a lengthy formula how the OPEC county do withdrawals. We can go over it some other time) This increase the demand for USD because for any country to buy oil they first have to buy USD. This arrangement keeps USD strong. In return Saudi currency was pegged at 1 USD = 3.75 SR, the Saudi economy may do good or bad the conversation rate will remain same. They will not face devaluation. Second US guaranteed that House of Saud will remain in power, no regime change.
US responsibility was to make sure none of the opec countries opt out of this arrangement. Iraq and Libya renegade and we all know what happened. 2) What is Indian rupee-ruble trade singed between India and Soviet Union (subsequently Russia) of 1953.
For Indian purchases from Russia they will pay in Indian Rupee. This increases the demand for Indian rupee and the currency remain strong. For Russian purchases from India they will pay in Ruble. This increases the demand for ruble and the currency remain strong.
All India bank will open a branch in Russia and a Russia bank will open a branch in India to facilitate trade. There are safeguards built in so neither country do not cheat (we can go over these some other time). This arrangement bypasses SWIFT.
Please note, it is very important to understand that this deal occurred in 1953 before the petrodollar deal in 1974. IK was the first Pakistani PM to do a Pakistani Rupee-Chinese Yuan deal in 2019. This deal covered semiconductor, transformers, broadcasting equipment.
US was not happy, but let it go because it never included oil. IK was in the process of doing a Pakistani Rupee-Russia Ruble deal for oil in 2022. Remember Petrodollar deal is dated 1974. This is a no, no. US cannot accept this because if other countries follow suit USD will weaken and US economy will come down to EU level. No more superpower. If IK would have succeeded in doing within next 16 months, even at the expense of loosing the next election Pakistan would have come out of slavery. Hence he had to be removed immediately.
He left US no choice. IK should be thankful that he is not sitting with Saddam Hussain and Qadhdhafi in heaven. US has given him a second chance, but if he is determined not to avail then only God knows what will happen to him or Pakistan. If IK is successful in getting this this through in his second term, this constant devaluation of Rupee (1 USD = 180 PKR) will stop, Pakistan will start paying IMF and conversion rate recover.
Pakistan is at a crossroads: Can end up with Iraq & Libya Can end up with Sri Lanka Can end up with freedom