PM Modi will help Pakistan, bail it out amid economic crisis: India's ex-spymaster AS Dulat's 'hunch'

With Pakistan reeling under a severe economic crisis, Prime Minister Narendra Modi may offer help to the neighbouring state by the end of the year, according to a former chief of India's spy agency Research & Analysis Wing (R&AW).

AS Dulat said that he has a "hunch" that Modi would "bail out" Pakistan, and it is not based on "inside information". He added that India needs to keep its neighbours "engaged", and that "every time is the best time to talk to Pakistan".

Dwindling forex reserves, nationwide power outages, political instability and a plummeting Pakistani rupee have already propelled the neighbouring state to seek a bailout package from the IMF.

Many analysts believe that Pakistan’s method of dealing with a similar crisis in the past where it has “leveraged its geo-political position and extracted rent from global partners” is not working and hence it may be more open to talk peace and trade with India.

Dulat, however, pointedly said engagement with Pakistan has always been “influenced by domestic politics”.

Dulat also highlighted the emergence of a "strong axis" and "formidable force" comprising of China, Russia, and Iran. He said that while India's relations with the United States of America have improved, the US is "far away", while "our neighbours are nearer".

(With PTI inputs)