continent fire central

A Continent on Fire: What Central Asia Can Teach t…

By Engineer Arshad H Abbasi, ahabasi@gmail.com, edited by Engineer Musa Arshad H Abbasi

I write this from Islamabad, not as a diplomat or a historian, but as someone who spends his working life measuring rivers, glaciers, and energy systems — and who has spent the last year watching the instruments of my own profession become instruments of geopolitics instead. I am a water, energy and climate professional, not an expert in international relations. But you do not need a doctorate in strategic studies to feel what it means to live in a capital that sits within reach of two active fronts at once, and to watch a third, farther away, threaten the fuel that keeps my own country’s lights on.

To the east, the Indus itself has become a weapon in a dispute I once only studied on paper. Since April 23, 2025, one day after the Pahalgam attack killed 26 people in Jammu and Kashmir, India has held the 1960 Indus Waters Treaty in abeyance, and as recently as July 3, 2026, New Delhi reaffirmed the suspension will continue until Pakistan “credibly and irrevocably” ends cross-border terrorism. Pakistan calls any interruption of that water an act of war. I measure river flows for a living, and I can tell you that a treaty which survived two wars and decades of hostility between 1960 and 2025 was never really about engineering — it was about restraint. Watching that restraint erode between two nuclear-armed neighbors, over a river that irrigates the fields I grew up walking beside, is not an abstraction to me. It is personal.

To the west, the war that began on February 28, 2026 between the United States, Israel, and Iran has turned the Strait of Hormuz — the channel that once carried roughly a quarter of the world’s seaborne oil and a fifth of its LNG — into a contested chokepoint. Iranian forces have mined and attacked shipping there on and off for months; a ceasefire and a June memorandum of understanding collapsed in July when Iran resumed strikes on vessels it deemed noncompliant. Even now, in mid-August, Tehran and Oman are still negotiating the terms under which the strait might fully reopen. Every Pakistani household that has watched fuel prices swing this year has felt that war, even though it is being fought a thousand miles from here.

And Pakistan’s own western border is no longer a metaphor for instability — it is an active one. Since February 2026, Pakistan and Afghanistan have fought what both sides’ own defense ministries have called open war along the 1893 Durand Line, with Pakistani airstrikes on Nangarhar and Kabul, an Afghan cross-border offensive, and casualty claims running into the hundreds on each side before Qatar- and Turkey-mediated pauses briefly held.

I know these are not the only fires burning on this continent, and an honest accounting has to look past South Asia. In Southeast Asia, a century-old dispute between Thailand and Cambodia over the ancient temples of Preah Vihear and Ta Muen Thom erupted twice in 2025 — first in July, then again in December — leaving at least 101 people dead and forcing more than half a million civilians from their homes before a fragile ceasefire, signed December 27, brought an uneasy calm. In East Asia, the map is a thicket of overlapping claims: China and Taiwan over the island’s sovereignty itself; China and Japan over the Senkaku/Diaoyu islands in the East China Sea; China and the Philippines over Scarborough Shoal and reefs across the South China Sea; and Japan and its neighbors over a scattering of other contested waters that keep regional navies on constant alert. Indonesia and Malaysia, too, carry an unresolved history — the armed 1960s Konfrontasi and a maritime boundary dispute over the oil-rich Ambalat block in the Sulawesi Sea that periodically flares even between otherwise friendly neighbors. And running beneath all of it is the oldest fault line of all: the decades-long conflict between Israel and its Arab neighbors, still reshaping alliances and battlefields from Gaza to Lebanon to Yemen, where Houthi strikes on Saudi infrastructure continue even this month.

Set against all of that, look at Central Asia — building transit corridors instead of trench lines, settling water and border disputes through negotiation rather than force, and courting the same investors that war has driven away from South Asia, the Gulf, and the South China Sea. Even the Armenia-Azerbaijan peace process next door, however unfinished — initialed in Washington in August 2025, still unsigned a year later over Armenia’s constitutional language — has produced something rarer than victory: an actual framework both sides keep returning to, rather than abandoning for the battlefield.

While I want to avoid romanticizing Central Asia to those who know the region far better than I do, it stands as a compelling model for peace. The region offers a practical demonstration that Asian states can prioritize economic integration over territorial reflexes—a choice that others, from Islamabad to Phnom Penh to Manila, have yet to make.

The Ledger of Conflict: A Continent Still at War With Itself

It is worth setting all of this down in one place, because scattered across a dozen news cycles it is easy to lose the scale of it.

  • India–Pakistan, Kashmir and the Indus Waters Treaty. Held in abeyance since April 23, 2025; reaffirmed as of July 2026 to remain suspended until Pakistan “irrevocably” ends cross-border terrorism, in a dispute that touches the water security of more than 300 million people and involves two nuclear-armed states that have already fought a war in 2025.
  • Iran, Israel, and the United States. War since February 28, 2026, with Iranian attacks on shipping through the Strait of Hormuz — a corridor carrying roughly a quarter of the world’s seaborne oil and a fifth of its LNG — still unresolved as Tehran and Oman negotiate terms for reopening it, even this month.
  • Pakistan–Afghanistan, the Durand Line. Open war since February 2026 between two governments that have never agreed on where their own border lies, following a colonial-era line drawn in 1893 that neither side ever fully accepted.
  • Thailand–Cambodia. A century-old dispute over the temples of Preah Vihear and Ta Muen Thom that killed at least 101 people and displaced more than half a million civilians across two rounds of fighting in 2025 before a fragile ceasefire in December.
  • China–Taiwan. An unresolved sovereignty dispute that keeps the Taiwan Strait among the most militarized waters on Earth.
  • China–Japan. Competing claims over the Senkaku/Diaoyu Islands in the East China Sea.
  • China–Philippines (and other South China Sea claimants). Overlapping claims to Scarborough Shoal and the wider Spratly and Paracel systems, with recurring coast guard confrontations.
  • Indonesia–Malaysia. The armed 1960s Konfrontasi and a still-unresolved maritime boundary dispute over the oil-rich Ambalat block in the Sulawesi Sea.
  • Israel and its Arab neighbors. The region’s oldest fault line, still reshaping battlefields from Gaza to Lebanon to Yemen, where Houthi strikes on Saudi infrastructure continued as recently as this month.
  • Armenia–Azerbaijan. A peace framework initialed in Washington in August 2025, still unsigned a year later over Azerbaijan’s demand that Armenia amend its constitution — real progress, but not yet peace.

Read as a list rather than as headlines, it becomes hard to avoid the conclusion the reader of this piece already suspects: no other continent carries this many live or barely-dormant fronts at once, several of them nuclear-adjacent, all of them draining resources that could otherwise be spent on the climate and water crises actually threatening our populations.

Uzbekistan’s Quiet Model

Which is what makes Central Asia’s trajectory worth naming in detail rather than in passing. For most of the 1990s and 2000s, the five Central Asian republics were themselves locked in exactly this kind of dysfunction — unresolved borders, competing claims over the Fergana Valley’s enclaves, and bitter disputes over the water and energy flows of the Amu Darya and Syr Darya rivers, with Uzbekistan under Islam Karimov among the most resistant to regional cooperation. What changed the region’s trajectory was not outside mediation. It was Uzbekistan itself, under President Shavkat Mirziyoyev, choosing after 2016 to reverse decades of isolationism. Mirziyoyev personally helped broker calm during the deadly April 2021 Tajik-Kyrgyz border crisis. He proposed a regional water-use program at the first Consultative Meeting of Central Asian leaders in Astana in 2018 and has pushed transboundary water cooperation ever since, backed by an International Fund for Saving the Aral Sea that Uzbekistan itself helped reshape into a genuine coordination body. As a fellow water professional, I find that record more persuasive than any communiqué: Uzbekistan modernized over 2.6 million hectares of its own irrigated land with water-saving technology in under a decade, and it did so while simultaneously investing in the kind of neighbor-to-neighbor diplomacy that Karachi, Kabul, and Colombo have not managed in a generation. If any single leadership deserves credit for proving that an Asian power can choose water cooperation over water warfare, it is Tashkent’s — and Central Asia as a whole, imperfect as it remains, is the model the rest of this continent should study rather than dismiss.

A Wish, and a Warning

I would like to end this the way I began it — not as an analyst, but as someone who lives inside the consequences of these disputes. My honest wish is to see an Asia free of every one of the conflicts listed above: a continent that channels its extraordinary energy into solving the crisis it is actually best positioned to solve. Asia now accounts for roughly half of all global carbon dioxide emissions, more than any other continent by a wide margin, even as it holds the majority of the world’s population and remains disproportionately exposed to the floods, glacier loss, and heat extremes that emissions produce. A region capable of decarbonizing at that scale should not be spending its treasuries and its young soldiers on border lines drawn by long-departed colonial cartographers.

But I will not pretend the most dangerous of these disputes is equivalent to the others, because I know this one from the inside. The India-Pakistan confrontation over Kashmir and the Indus Waters Treaty is not simply another item on a list. It is the one dispute on this continent where two nuclear arsenals sit on opposite banks of the same river system, where a water treaty that survived 65 years of hostility is now in abeyance, and where the language on both sides — “water and blood cannot flow together,” “any interruption of Pakistan’s water is an act of war” — has moved further from the vocabulary of diplomacy than at any point since 1971. Every other conflict on this list deserves resolution. This one, I would ask every reader to understand, deserves urgency, because it is the one closest to an ending none of us would survive to write about.

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The structure can be visualised as a ladder. At its base is an enforceable social floor below which no citizen is allowed to fall. Above it are education, healthcare and skills supported partly through public waqf. Temporary setbacks are met through qard hasan. Productive citizens then move towards cooperative and commercial risk-sharing finance of the kind discussed in Part IV. The direction is from dependency to capability, not from one form of dependency to another. Governance will determine whether this succeeds. Pakistan has repeatedly created institutions in the name of disadvantaged citizens and then allowed

  • Buying time not future

    Nations, organizations, and individuals who rely on borrowed time never prosper. Vision of the future is paramount to growth. Stagnation leads to disaster. In a world driven by technology, only change is permanent. As a nation, we started off well. The founding fathers burnt the midnight oil not only to sustain but also to prosper. Early in the decade of the fifties, the entire development framework was put in place. For industrialization, PIDC (Pakistan Industrial Development Corporation); for water and power, WAPDA (Water & Power Development Authority); PAEC (Pakistan Atomic Energy Commission) headed by Dr I.H. Usmani; PCSIR (Pakistan Council of Science & Industrial Research) under Dr Salim-Uz-Zaman Siddiqui; PSI (Pakistan Standards Institution), now PSQCA (Pakistan Standards and Quality Control Authority); PIAC (Pakistan International Airlines Corporation). The father of the nation, Quaid-e-Azam Muhammad Ali Jinnah, himself inaugurated the State Bank of Pakistan in 1948. The discovery of natural gas at Sui in 1952 was a gift of nature. At 12 TCF, it was considered one of the largest deposits of its time, sufficient to meet the needs of the nation for a century. Future requires investment, both short and long term. It was Sir Syed Ahmed Khan’s vision to bring the Muslim population of the Sub-continent into the mainstream. Starting with schools, he moved on to colleges and finally the Aligarh University, which not only led the movement for the creation of Pakistan but also provided the manpower to sustain it. In the formative years of the republic, education was taken seriously both by the teachers and the taught. In my entire academic journey, I never once missed a class, even during my term as President of the departmental student union. The first-born free generation was being prepared to lead, not follow. Instead of buying time, the future was being built. In the 1973 constitution, literacy was declared a fundamental right. Under Article 25-A, every Pakistani had to be literate by the year 1985, but the target was not only missed, the entire effort was sidelined. The government of Muhammad Khan Junejo tried to narrow the gap by introducing the Nai Roshni program, which was shut down after his government fell. For meaningful nation building, education, employment and health are critical. The recent student uprising in India focused on professional education followed by employment. They demanded transparency and merit, which were being compromised. Modi’s shining India meant very little for them. Other countries have experienced similar protests (Bangladesh, Nepal, Sri Lanka, Indonesia). Pakistan needs a lot of catching up to do. It is back to the basics of nation building. Universal Primary Coverage is the starting point. Every five-year-old child should be in school this year. This will reverse the trend of the swelling out-of-school youth population. Once primary coverage is ensured, the next target should be to cover those who missed out. The country is blessed with a bulging youth population, which must be made productive. Despite all the challenges of governance, the informal sector continues to perform well by providing the needed goods and services. Confidence in the formal sector is needed for a meaningful and cohesive march forward. In the decade of the fifties, Pakistan was poised to emerge as the first Asian Tiger; now it seriously lags behind while other nations have grown, which includes China, Japan, South Korea, Taiwan, Malaysia, Singapore, Vietnam, Thailand, Indonesia — the list goes on. Rightly said, this is the Asian Century. It is time to look inwards. The future belongs to educated and healthy nations who do not settle for short-term gains but instead focus on the future. Pakistan should not be a burial ground for those who build fortunes abroad. The homeland must come first. The best cannot be left for last.

  • Beyond Public Finance: Towards Constitutional Poli…

    The previous part VIII of this series concluded that a just tax system must satisfy more than the requirements of arithmetic. It must rest upon legislative competence, representative consent, rational classification, due process, protection against arbitrary deprivation, transparent expenditure and effective remedies. Parliament, while levying taxes cannot constitutionalise injustice merely by enacting it. Pakistan’s fiscal crisis will not be resolved by asking citizens to finance an unreformed state through increasingly coercive instruments. A recent book by Dr Hafiz A. Pasha, Fatima Malik and Hafsa Tanveer, Pakistan: Reforming an Inefficient and Inequitable Tax System, provides an appropriate opportunity to carry that argument forward. The volume is ambitious, data-rich and deserving of serious attention. Few recent studies attempt, within a single work, to map federal and provincial taxation, estimate tax gaps through different methodologies, examine incidence across income groups and sectors, evaluate fiscal incentives and finally present a quantified reform programme. Its central diagnosis is familiar but supported by extensive empirical work. Pakistan combines high statutory rates with a low tax-to-GDP ratio, excessive dependence on indirect taxation, pervasive evasion, severe sectoral disparities and weak provincial revenue mobilisation. The authors propose reforms that, in their estimation, can increase the national tax-to-GDP ratio by approximately three percentage points by 2027–28. The principal difficulty lies not in what the book measures. It lies in what the framework of measurement necessarily leaves outside its calculations. The usefulness—and limits—of the tax-gap lens The organising idea of the book is the tax gap. Through cross-country regressions, a representative-tax-system approach, monetary estimates of evasion and bottom-up calculations, the authors conclude that Pakistan possesses the potential to collect approximately three percent of GDP more in taxes. This is analytically valuable. It also risks converting a constitutional and political problem into an accounting exercise. A tax gap is not necessarily a reservoir of revenue waiting to be collected. Parts of it may reflect privileges protected by influential groups. Other parts arise from low productivity, fragmented enterprises, unemployment, weak financial inclusion and the regulatory costs created by the state itself. Informality is not always a voluntary choice made for the purpose of evasion; it can also be a survival strategy in an economy where formalisation invites multiple taxes, withholding obligations, inspections and compliance costs without ensuring reliable public services. Citizens also judge taxation in relation to expenditure. Their reluctance cannot be understood solely as non-compliance when additional revenue appears likely to finance debt servicing, administrative expansion, elite concessions, loss-making state enterprises and politically negotiated subsidies rather than education, healthcare, transport, security of property and equal economic opportunity. The decisive question is consequently not only how much more can be collected. It is who controls the state, who bears its burdens, who receives its rents, and why technically sound reforms repeatedly fail. Public finance asks how the gap should be closed. Constitutional Political Economy asks why the beneficiaries of the existing arrangement would permit it to be closed fairly. The selective fiscal state The book repeatedly recognises the presence of powerful vested interests. It identifies the under-taxation of property, agriculture, wholesale and retail trade, real estate and parts of the services sector. At the same time, it finds a disproportionate burden upon large-scale manufacturing, banking and formal businesses. Its estimate that industry bears taxes equivalent to 23.8 percent of its value added, with the incidence on large-scale manufacturing exceeding 36 percent, is particularly revealing. These figures demonstrate that Pakistan does not suffer from a uniformly low-tax equilibrium. Pakistan has created a selective fiscal state: coercive towards visible and organised taxpayers, accommodating towards politically protected or administratively difficult constituencies. This conclusion should change the design of reform. Where political influence determines the tax structure, another catalogue of proposed rates and bases cannot alter the equilibrium by itself. Reform must address the rules through which fiscal choices are made, concessions are granted and enforcement is selectively applied. A technically perfect proposal remains politically irrelevant when those who must enact it derive power from the arrangements it seeks to dismantle. Withholdingisation is not income taxation The book correctly notes that withholding and advance taxes generate overwhelming part of total income-tax revenue and have failed to eliminate evasion. It also recognises the distortions created by presumptive/mimum taxation and the fragmentation of income into separately taxed blocs. The consequences are more serious than those of an imperfect collection technique. Withholdingisation represents the gradual abandonment of income taxation as a levy on net accretion to economic power. Banks, utility companies, telecom operators, employers, import authorities, registrars and purchasers have been converted into unpaid tax collectors. Gross transactions are taxed without determining actual income, allowable expenditure, losses or the taxpayer’s real capacity to contribute. The revenue authority obtains money without developing the institutional capacity to examine accounts, conduct intelligent audits and establish taxable income. Compliant businesses suffer liquidity costs and wait for adjustments or refunds, while informal and influential sectors remain beyond meaningful assessment. The reform of income taxation must restore the return, assessment and audit as its foundations. Withholding should remain confined to situations where it is a genuine advance payment—principally salaries, dividends, profit on debt and payments to non-residents (mostly covered under tax treaties). It should remain fully adjustable against the final liability. A system based upon extracting money from every visible transaction may achieve collection targets. It cannot be described as a coherent income tax. Contradictions within the reform programme The book advocates broad-basing and criticises presumptive taxation, but later recommends restoration of a one-percent fixed tax on export proceeds. It supports neutrality while proposing a general five-year tax holiday for investment, enhanced deductions for energy costs and other selective allowances. These proposals arise from genuine concerns. Pakistan’s investment rate remains dangerously low, exporters face high energy and financing costs, and industry competes under an unstable exchange-rate and tariff environment. The proposed remedies nevertheless risk recreating the same exceptionalism that has made Pakistan’s tax system discriminatory, unpredictable and vulnerable to lobbying. A fixed tax on export proceeds is not a tax on income. It taxes turnover

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