India should avoid hasty trade deal under US pressure, as it may not survive next US political shift: GTRI
The report warned that entering into a trade agreement under duress could lead to 'irreversible consequences,' particularly when such deals may not survive a change in the US political landscape.
'India should stay the course and avoid trading away core sectors like agriculture. A hasty deal under pressure could have irreversible consequences, especially when such agreements may not survive the next shift in US politics,' the report stated.
GTRI noted that Trump's aggressive trade threats are losing credibility. Despite over three months of sustained pressure, only two countries, the United Kingdom and Vietnam, have agreed to the US's 'one-sided trade terms.' Other nations, including Japan, South Korea, the European Union, and Australia, have resisted the demands.
These demands are part of what GTRI described as MASALA deals, Mutually Agreed Settlements Achieved through Leveraged Arm-twisting.
These agreements typically require other countries to cut tariffs without reciprocal concessions from the US, commit to guaranteed purchases of American goods, and still leave room for Washington to impose additional tariffs in the future, the report said.
Due to limited success in pushing these terms, the Trump administration has adopted punitive measures. On July 7, it announced 25 per cent tariffs on imports from Japan and South Korea. Just days later, on July 12, it threatened 30 per cent tariffs on products from the EU and Mexico, even while talks are still ongoing with these nations.
The GTRI report urged India to recognize that it is not the only country facing such pressure. The US is currently in trade negotiations with over 20 countries and seeking concessions from more than 90.
However, most are pushing back, recognizing that these MASALA deals are politically driven and offer no lasting certainty in international trade. (ANI)
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First Post
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Another win for Trump in Senate, bill to cut spending by $9 bn in foreign aid & broadcasting passed
In another legislative victory for US President Donald Trump, the Senate has passed a bill cutting around $9 billion of federal funds to public broadcasting and foreign aid. read more Advertisement US President Donald Trump delivers address at US military parade in Washington DC. AP The Senate has passed about $9 billion in federal spending cuts requested by President Donald Trump, including deep reductions to public broadcasting and foreign aid, moving forward on one of the president's top priorities despite concerns from several Republican senators. The legislation, which now moves to the House, would have a tiny impact on the nation's rising debt but could have major ramifications for the targeted spending, from the Corporation for Public Broadcasting to US food aid programs abroad. STORY CONTINUES BELOW THIS AD It also could complicate efforts to pass additional spending bills this year, as Democrats and even some Republicans have argued they are ceding congressional spending powers to Trump with little idea of how the White House Office of Management and Budget would apply the cuts. The 51-48 vote came after 2 am Thursday after Democrats sought to remove many of the proposed rescissions during 12 hours of amendment votes. None of the Democratic amendments were adopted. Senate Majority Leader John Thune, R-SD, said Republicans were using the president's rescissions request to target wasteful spending. He said it is a 'small but important step for fiscal sanity that we all should be able to agree is long overdue'. But Senate Appropriations Committee Chairwoman Susan Collins, R-Maine, said the bill 'has a big problem — nobody really knows what program reductions are in it.' Collins and Sen. Lisa Murkowski, R-Alaska, joined Democrats in voting against the legislation. Kentucky Sen. Mitch McConnell, the former Republican leader, had voted against moving forward with the bill in a Tuesday procedural vote, saying he was concerned the Trump White House wanted a 'blank check', but he ultimately voted for final passage. The effort to claw back a sliver of federal spending comes after Republicans also muscled Trump's big tax and spending cut bill to approval without any Democratic support. The Congressional Budget Office has projected that measure will increase future federal deficits by about $3.3 trillion over the coming decade. Lawmakers clash over cuts to public radio and TV stations Along with Democrats, Collins and Murkowski both expressed concerns about the cuts to public broadcasting, saying they could affect important rural stations in their states. Murkowski said in a speech on the Senate floor Tuesday that the stations are 'not just your news — it is your tsunami alert, it is your landslide alert, it is your volcano alert'. STORY CONTINUES BELOW THIS AD Less than a day later, as the Senate debated the bill, a 7.3 magnitude earthquake struck off the remote Alaska Peninsula, triggering tsunami warnings on local public broadcasting stations that advised people to get to higher ground. The situation is 'a reminder that when we hear people rant about how public broadcasting is nothing more than this radical, liberal effort to pollute people's minds, I think they need to look at what some of the basic services are to communities', Murkowski said. The legislation would claw back nearly $1.1 billion from the Corporation for Public Broadcasting, which represents the full amount it's due to receive during the next two budget years. The corporation distributes more than 70 per cent of the money to more than 1,500 locally operated public television and radio stations, with much of the remainder assigned to National Public Radio and the Public Broadcasting Service to support national programming. Sen. Mike Rounds, R-S.D., said he secured a deal from the White House that some funding administered by the Interior Department would be repurposed to subsidize Native American public radio stations in about a dozen states. STORY CONTINUES BELOW THIS AD But Kate Riley, president and CEO of America's Public Television Stations, a network of locally owned and operated stations, said that deal was 'at best a short-term, half-measure that will still result in cuts and reduced service at the stations it purports to save, while leaving behind all other stations, including many that serve Native populations'. Slashing billions of dollars from foreign aid The legislation would also claw back about $8 billion in foreign aid spending. Among the cuts are $800 million for a program that provides emergency shelter, water and sanitation and family reunification for those who flee their own countries and $496 million to provide food, water and health care for countries hit by natural disasters and conflicts. There also is a $4.15 billion cut for programs that aim to boost economies and democratic institutions in developing nations. Democrats argued the Trump administration's animus toward foreign aid programs would hurt America's standing in the world and create a vacuum for China to fill. Sen. Brian Schatz, D-Hawaii, said the amount of money it takes to save a starving child or prevent the transmission of disease is miniscule, even as the investments secure cooperation with the US on other issues. The cuts being made to foreign aid programs through Trump's Department of Government Efficiency were having life-and-death consequences around the world, he said. STORY CONTINUES BELOW THIS AD 'People are dying right now, not in spite of us but because of us,' Schatz said. 'We are causing death.' After objections from several Republicans, GOP leaders took out a $400 million cut to PEPFAR, a politically popular program to combat HIV/AIDS that is credited with saving millions of lives since its creation under then-President George W Bush. Looking ahead to future spending fights Democrats say the bill upends a legislative process that typically requires lawmakers from both parties to work together to fund the nation's priorities. Triggered by the official recissions request from the White House, the legislation only needs a simple majority vote instead of the 60 votes usually required to break a filibuster, meaning Republicans can use their 53-47 majority to pass it along party lines. The Trump administration is promising more rescission packages to come if the first effort is successful. But some Republicans who supported the bill indicated they might be wary of doing so again. 'Let's not make a habit of this,' said Senate Armed Services Committee Chairman Roger Wicker, who voted for the bill but said he was wary that the White House wasn't providing enough information on what exactly will be cut. Wicker said there are members 'who are very concerned, as I am, about this process.' North Carolina Sen. Thom Tillis echoed similar concerns and said Republicans will need to work with Democrats to keep the government running later in the year. STORY CONTINUES BELOW THIS AD 'The only way to fund the government is to get at least seven Democrats to vote with us at the end of September or we could go into a shutdown,' Tillis said. Republicans face a Friday deadline Collins attempted to negotiate a last minute change to the package that would have reduced the cuts by about $2.5 billion and restored some of the public broadcasting and global health dollars, but she abandoned the effort after she didn't have enough backing from her Republican colleagues in the Senate and the House. The House has already shown its support for the president's request with a mostly party line 214-212 vote, but since the Senate amended the bill, it will have to go back to the House for another vote. The bill must be signed into law by midnight Friday for the proposed rescissions to kick in. If Congress doesn't act by then, the spending stands. (This is an agency copy. Except for the headline, the copy has not been edited by Firstpost staff.)
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Is Pakistan heading from rupee crash to blockchain blunder? Minister visits El Salvador for crypto push
With its economy on the brink, Pakistan is turning to cryptocurrency not as a choice, but as a last-ditch gamble to escape financial collapse read more With a faltering economy, rising inflation, geopolitical instability and a foreign exchange crisis, Pakistan is turning increasingly toward cryptocurrency and blockchain technology as a potential economic life raft. The country's recent high-profile engagements—particularly with El Salvador and the Donald Trump-backed World Liberty Financial (WLF)—signal a radical policy shift that many see as a desperate embrace of digital assets to stave off economic collapse. But does this emerging crypto love offer salvation, or is it a risky gamble by a nation with limited options? STORY CONTINUES BELOW THIS AD A deep economic crisis Pakistan's economy is in dire straits. As of April 2025, the country held just $10 billion in foreign exchange reserves—barely enough to cover three months of imports., a News18 report said. With over $131 billion in external debt and ongoing tensions with India, including military engagements and the suspension of the Indus Waters Treaty, Pakistan faces severe risks to agricultural productivity and macroeconomic stability. The International Monetary Fund (IMF) has been keeping the country afloat with a $7 billion bailout package. However, experts warn that even this lifeline could snap if geopolitical risks escalate. The fragility of Pakistan's economy is an open secret, with a piece in the Financial Times warning that it could collapse anytime despite the lifeline from the IMF. In this economic climate, traditional tools have limited utility. Inflation peaked at 38 per cent in 2023, while the rupee has lost 165 per cent of its value since 2017, a study conducted by the Asian Development Bank said. For a population whose savings are rapidly being eroded, the appeal of decentralised financial systems has grown dramatically. Rising crypto adoption despite official bans Despite an official ban on cryptocurrency trading, Pakistan ranks 8th globally in crypto adoption. Citizens are said to hold between $20–25 billion in digital assets, driven by desperation for financial security in a rapidly depreciating fiat system, Geo News reported. Crypto assets have effectively become a parallel financial system for many Pakistanis. In April 2023, the government doubled down on its prohibition, citing capital flight risks. Nevertheless, crypto continues to thrive in grey markets as Pakistanis turn to Bitcoin and stablecoins to preserve wealth and transact across borders. This popular adoption is happening against the will of regulators but reflects a grassroots shift toward decentralised finance. For many, crypto is no longer speculative; it is essential. Governmental shifts from opposition to adoption After years of resistance, the Pakistani government is formalising its stance on digital assets. The establishment of the Pakistan Virtual Assets Regulatory Authority and plans to launch a Central Bank Digital Currency by this year mark a significant policy reversal. Further legitimising this shift is the Pakistan Crypto Council, led by Bilal Bin Saqib, who recently signed Letters of Intent with both El Salvador and World Liberty Financial. STORY CONTINUES BELOW THIS AD The El Salvador partnership is particularly symbolic. El Salvador was the first nation to adopt Bitcoin as legal tender. With its Bitcoin reserves now valued at over $760 million—nearly triple their original investment—Pakistan sees a model of financial sovereignty and growth through crypto. Saqib described the partnership as a 'strategic relationship rooted in innovation, inclusion, and shared learning,' adding that El Salvador's 'bold Bitcoin experiment has inspired governments around the world.' But here is the catch El Salvador's experiment with Bitcoin as legal tender has failed. The country has reversing its decision to make Bitcoin a mandatory form of payment. While the initiative aimed to revolutionise the financial system and boost the economy, it faced significant challenges. Bitcoin adoption rates remained low, concerned over volatility reigned supreme, and technical issues with the Chivo wallet could never really be fixed. The question is this: Is Pakistan really looking up to the right example to emulate cryptocurrency in the country? There is Trump-backed WLF deal too More controversial is the deal with WLF, a DeFi platform backed by US President Donald Trump's family. According to the Pakistani Ministry of Finance, WLF has committed to accelerating blockchain innovation and stablecoin adoption in Pakistan. High-level meetings took place between executives of the World Ledger Foundation (WLF) and Pakistan's most influential institutions, including the army chief, prime minister, deputy prime minister and the governor of the State Bank. These discussions led to an agreement that outlines key areas of cooperation aimed at advancing Pakistan's digital finance ecosystem. Central to the deal is the testing of blockchain-based financial products through regulatory sandboxes, allowing for innovation under controlled conditions. STORY CONTINUES BELOW THIS AD The agreement also includes the tokenisation of real-world assets such as real estate, enabling greater liquidity and transparency. Further, it seeks to expand the use of stablecoins for cross-border remittances and trade to reduce costs and improve efficiency. In addition, the partnership will focus on the development of decentralised finance (DeFi) infrastructure, laying the groundwork for a more inclusive and resilient financial system. Crypto: A lifeline or a gamble? The optimism from the government and crypto leaders is palpable, but this rapid embrace of digital currencies is not without serious risks. Pakistan faces several critical risks as it moves toward deeper integration with cryptocurrency initiatives. The country remains in the early stages of developing a comprehensive legal and regulatory framework, creating a regulatory vacuum that could allow for unchecked growth. Without strong oversight, the rapid adoption of digital assets might facilitate fraud, capital flight and money laundering. Another major concern is the inherent volatility of cryptocurrencies like Bitcoin. Sudden price crashes could wipe out billions in perceived wealth, potentially triggering widespread financial panic and undermining public trust in emerging financial technologies. Geopolitically, Pakistan's close alignment with the Trump-backed WLF may carry unintended consequences. A shift in political leadership in Washington could weaken support, while global institutions such as the IMF—already critical of Pakistan's fiscal management—may view the partnership as a destabilising move. STORY CONTINUES BELOW THIS AD Additionally, an overreliance on cryptocurrency as a singular economic solution risks sidelining broader, long-term economic reforms. This could detract from critical efforts to strengthen traditional industries, enhance export capacity and build a more resilient and diversified economy. Yet, despite these risks, Pakistan's limited options are pushing it toward cryptocurrency. As traditional finance mechanisms fail to meet citizens' needs, the decentralised economy offers both hope and hazard. Is crypto Pakistan's last hope? At this moment, it appears that Pakistan is not just experimenting with cryptocurrency—it is banking on it. The deals with El Salvador and WLF reflect a government strategy that increasingly sees crypto as a pillar of future financial stability, not a passing trend. However, this step is born more out of necessity than choice. Soaring inflation, geopolitical pressures and a weak rupee have made crypto a survival tool for citizens and an innovation imperative for the state. Pakistan's economy is not at the mercy of cryptocurrency—yet. But it is undeniably tethered to it and the government's growing entanglement with blockchain and DeFi may determine whether the country navigates through crisis or plunges deeper into instability. In a world where digital assets are reshaping global finance, Pakistan may be among the first developing nations to bet its economic future on the blockchain. Whether that bet pays off—or explodes—is a question that only time, policy clarity and global cooperation can answer. STORY CONTINUES BELOW THIS AD But if Pakistan must go the crypto way, is El Salvador the model it wants to follow?
India.com
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Coward Pakistan begs US to not help India with..., will Trump agree?
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