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Since last month India has been fighting against the economic turmoil caused by the demonetisation. The respected Prime Minister of India, Narendra Modi has taken the decision to use of old rupee notes of 500 and 1000 to control, rather stop the black money circulation across the country. According to him the demonetisation would lead the formation of new economic era in the country where there would be equity among all in respect to the wealth. There would be one day when no one would be discriminated according to monetary power. It is, of course, a wise but hard step to implement, but he has started the process and it is going on. The debate is behind the curtain of the result of demonetisation among the common people of India. Most of the parts of the country are facing problems because of shortage in supply of new notes. The retail market is starving. However we should wait for some more days to experience the actual outcome of the decision. There is another problem that puts the general people in the sixes and sevens. Every day the government and the deemed central bank, the Reserve Bank of India are changing the rules regarding the issue and the people are facing problem at regular interval. These all are happening among the common people. What about the foreign policies! It is the point to be focused in our current article. We would be going to talk about the change in the diplomatic situation between the two countries, India and Pakistan. Let’s start our business.


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Demonetisation and the diplomatic war:

Demonetisation has put an effect on the diplomatic relation between India and Pakistan. You can say that there has not been a healthy situation between these countries, then why to bother about the diplomatic relation! You are wrong. We should consider the change in the diplomatic condition between those two countries because of the demonetisation in India. There is a diplomatic section in all countries called the ‘High Commission’. The staffs of high commission of any country are posted in different countries where they are responsible to look after the wellbeing for the country people residing in the foreign lands. The Pakistan High Commission diplomats in New Delhi have refused to take their salary in dollar from the banks of India where their salary accounts are. The same condition is for the Indian diplomats working in Islamabad. Pakistan has protested the decision of demonetisation and said that the Indian staffs working in Pakistan might be affected.  It is the diplomatic problem; the diplomatic war because without the smooth functioning of the High Commission office in the foreign countries the native people could be under trouble. And all these problems have been started just before the Heart of Asia conference in Amritsar where Sartaj Aziz, foreign affairs adviser to Pakistan Prime Minister Nawaz Sharif would be present.

The problem of salary:

This is how the diplomatic war is sparked. Generally the diplomats can draw their tax-free salaries in dollars, but due to the high shortage of money they have to show documents to draw salary over $5000; however there would not be any paper required for salary under the said amount. Presently there is huge shortage of dollars in India and the RBL bank where the Pakistan diplomats have their salary accounts are asked for ‘letter of purpose’ to withdraw dollars from their account. The Pakistani diplomats working in India have expressed the great displeasure against the situation and Islamabad has conveyed its opinion to New Delhi that it should be resolved at the earliest. Pakistan has told that if it would continue then India would be under the charge of breaching the Vienna Protocol. They have told if the situation would not be made resolved quickly then the Indian diplomats working in Pakistan would also be treated reciprocally. The diplomatic war has started and the Indian government has to control and overcome it.


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