At WGS, IMF chief ‘optimistic’ about US economy

Christine Lagarde, managing director of the International Monetary Fund, reacts to a joke by Richard Quest of CNN in Dubai on Sunday. Lagarde spoke as part of the World Government Summit, an annual meeting held in Dubai. (AP)
Updated 12 February 2017
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At WGS, IMF chief ‘optimistic’ about US economy

DUBAI: International Monetary Fund (IMF) chief Christine Lagarde on Sunday voiced optimism for US economic growth under President Donald Trump but warned it could herald trouble for the rest of the world.
“From the little we know, and I will insist on the little we know, because this is really work in progress... but from the little we hear, we have reasons to be optimistic about economic growth in the US,” Lagarde said at the annual World Government Summit (WGS) in Dubai.
Lagarde predicted tax reform and more investment in infrastructure were both likely under Trump, whose Thursday teaser of fresh tax cut proposals pushed Wall Street stocks to new records.
The Dow, Nasdaq and S&P 500 all closed up 0.6 percent Thursday after the new US president promised a “phenomenal” tax cut plan would be unveiled within two or three weeks.
Yet the IMF chief did not mince words in raising concern over the global repercussions of a boon in the US economy.
“Now that is the good news,” said Lagarde. “The more worrying news, if you will, is that it will have consequences on the rest of the world, and we are seeing it.”
She highlighted the strength of the dollar against other currencies, predicting a hike in interest rates regulated by the Federal Reserve.
“That is a tightening that will be difficult on the global economy and for which economies will have to prepare,” said Lagarde.
The IMF in January raised the US growth estimate a tenth of a point this year to 2.3 percent, and four-tenths of a point to 2.5 percent for 2018.
The World Bank, meanwhile, has not changed its forecasts for the US, citing the uncertainty of Trump’s policy plans.
Both the IMF and World Bank continue to point to uncertainty as a mitigating factor for economic projections in the US.
The two organizations are expected to announce clearer forecasts at the World Economic Outlook in April.
Lagarde, whose organization has backed taxation in the largely energy-rich and tax-free member countries of Gulf Cooperation Council (GCC), was also unwavering in her support for the impending regional five percent value-added tax (VAT).
“Whether you want to talk about education, whether you want to talk about roads... to have public investment, you need public funding,” said the IMF chief.
“Now if that funding is reduced because the price of the barrel has gone down... that money needs to be found somewhere else, and as a result there has to be a degree of taxation.”
The IMF in 2016 had recommended the GCC states impose revenue-raising measures, including excise and VAT, to adjust to lower crude prices, which have slowed regional growth.
The GCC countries, which include Saudi Arabia and the United Arab Emirates (UAE), have already agreed to implement selective taxes on tobacco, and soft and energy drinks this year.
A broader five percent VAT is slotted to take effect across the Gulf on Jan. 1, 2018.

— AFP


Indian women entrepreneurs to visit UAE to study AI governance, medical innovation

Updated 31 October 2024
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Indian women entrepreneurs to visit UAE to study AI governance, medical innovation

  • Delegation will attend panel discussions, networking opportunities with UAE industry leaders in Dubai
  • India, UAE have witnessed significant rise in bilateral exchanges since signing free trade pact in 2022

NEW DELHI: Dozens of women entrepreneurs from the Indian Women Network of the Confederation of Indian Industry will depart to the UAE next week to study AI governance in education and medical innovation.

IWN was launched in 2013 by India’s largest and oldest industrial body, the CII, to create the largest network for professional women and promote their participation, growth and leadership in the workplace. Today, it has established chapters in almost two dozen Indian states.

For its first international trip, IWN will lead a 35-member delegation comprising women entrepreneurs from various sectors of Indian industries for a two-day visit to the UAE’s commercial capital, Dubai, starting Nov. 4.

“Dubai was chosen as the destination because of its progressive strides in areas such as AI governance in education, medical innovation, R&D and women’s empowerment,” Megha Chopra, co-chair of CII’s IWN chapter in New Delhi, told Arab News on Thursday.

“The delegation will explore how Dubai has successfully implemented forward-thinking strategies in these sectors, drawing valuable insights to inspire similar growth and innovation in India.”

The trip, which also includes panel discussions and networking opportunities, aims to “foster knowledge-sharing, networking and leadership development” as well as making connections with UAE-based industry pioneers, she added.

For Chopra, executive director at software company RateGain Travel Technologies, the learning retreat is an important extension of the India-UAE economic partnership.

“This trip also highlights the significance of women’s roles in enhancing bilateral ties and contributing to economic progress, with IWN creating a platform where Indian women entrepreneurs can not only draw inspiration, but also forge connections that could lead to tangible business partnerships and investments,” she said.

India and the UAE have significantly advanced bilateral exchanges since they signed the Comprehensive Economic Partnership Agreement in 2022.

The UAE is the largest Middle Eastern investor in India, with investments amounting to about $3 billion in the financial year 2023-24, according to Indian government data.

The two countries also expect to increase the total value of bilateral trade in non-petroleum products to more than $100 billion and trade in services to $15 billion by 2030.

“By connecting 35 women entrepreneurs from diverse Indian industries with eminent leaders and disruptors in Dubai, the delegation fosters knowledge exchange and cultivates potential avenues for cross-border collaborations,” Chopra said.

“In essence, the IWN delegation strengthens the India-UAE economic bond, championing women’s leadership as a key driver of continued growth and collaboration between the two nations.”


Taliban FM goes viral riding motorcycle through Kabul

Updated 32 min 39 sec ago
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Taliban FM goes viral riding motorcycle through Kabul

  • Amir Khan Muttaqi filmed on a motorbike in Wazir Akbar Khan area
  • Kabul residents admit that public safety has been increasing in the city

Kabul: A video of Afghanistan’s acting foreign minister riding a motorcycle through Kabul has gone viral on social media, with people saying it showed improving security under Taliban rule.

Officials at the Ministry of Foreign Affairs confirmed to Arab News that the video shot this week shows Amir Khan Muttaqi riding after sunset in the Wazir Akbar Khan area of the Afghan capital.

The street where Muttaqi was driving is less than 1 km away from the Arg — the presidential palace, which since the Taliban takeover of Afghanistan three years ago has served as the meeting place of the country’s interim government.

The surrounding neighborhood was known as the diplomatic zone of Kabul before most representatives of the international community left the country after its Western-backed government collapsed and US-led troops withdrew in August 2021.

The sighting of a minister riding on the street was for some residents a reflection of the country being safer now than during the two-decade period of foreign military presence following the US invasion of Afghanistan in 2001.

“The security is very good now. The security forces are trying day and night to make sure people live in peace without any fear,” Hamza Kawsar, a resident of Kabul, told Arab News on Thursday.

“Unlike the leaders in previous regimes, our current leaders are not hiding from the people. They live a simple life. The foreign minister’s move to come out alone is proof of this.”

While people generally acknowledged that security had improved, many other pending issues were left unaddressed or aggravated.

“It’s been two weeks, and I can’t get my national ID. I go from one office to the other and my work is delayed,” said Rahmanullah, 22, who came from Logar province to Kabul to have his documents issued.

“It’s good that the ministers and other people are able to go around in the city without any worries. But in some offices it’s very difficult to see director-level officials, let alone a minister.”

For Javed Rahimi, a shopkeeper, the motorcycle video was a PR stunt and many new problems emerged with Taliban rule, including huge unemployment, poverty and bans on women’s education and work.

He admitted, however, that cases of theft, robbery, and deadly blasts, which were common before, had decreased.

“The good thing is that there’s no war and conflict anymore,” he said. “Our countrymen are not dying in explosions and attacks every day.”


Russia’s ‘comprehensive’ treaty with Iran will include defense, Lavrov says

Updated 31 October 2024
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Russia’s ‘comprehensive’ treaty with Iran will include defense, Lavrov says

  • The United States accused Tehran in September of delivering close-range ballistic missiles to Russia for use against Ukraine
MOSCOW: A treaty that Russia and Iran intend to sign shortly will include closer defense cooperation, Russian Foreign Minister Sergei Lavrov said on Thursday.
Military ties between the two countries are a source of deep concern to the West as Russia wages war in Ukraine while Iran and Israel have exchanged missile and air strikes in the Middle East.
“The treaty on a comprehensive strategic partnership between Russia and Iran that is being prepared will become a serious factor in strengthening Russian-Iranian relations,” Lavrov told state television.
He said the agreement was being prepared for signing “in the near future.” Russia has said it expects Iran’s President Masoud Pezeshkian to visit Moscow before the end of the year.
“It will confirm the parties’ desire for closer cooperation in the field of defense and interaction in the interests of peace and security at the regional and global levels,” Lavrov said. He did not specify what form the defense ties would take.
Russia has deepened its ties with Iran and North Korea, which are both strongly antagonistic toward the United States, since the start of its war with Ukraine.
President Vladimir Putin and North Korean leader Kim Jong Un signed a similarly titled “comprehensive” treaty in June, including a mutual defense clause, and the US and NATO say Pyongyang has sent some 10,000 soldiers to Russia for possible deployment in the war.
Russia has not denied their presence, and says it will implement the treaty as it sees fit.
The United States accused Tehran in September of delivering close-range ballistic missiles to Russia for use against Ukraine, and imposed sanctions on ships and companies it said were involved in delivering Iranian weapons.
Tehran denies providing Moscow with the missiles or with thousands of drones that Kyiv and Western officials have said Russia uses against military targets and to destroy civilian infrastructure, including Ukraine’s electrical grid.
The Kremlin declined to confirm its receipt of Iranian missiles but acknowledged that its cooperation with Iran included “the most sensitive areas.”

India says frontier disengagement with China along their disputed border is ‘almost complete’

Updated 31 October 2024
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India says frontier disengagement with China along their disputed border is ‘almost complete’

  • The two countries reached a new pact on military patrols that aims to end a four-year standoff that hss strained relations
  • Ties between the two countries deteriorated in July 2020 after a military clash killed at least 20 Indian soldiers and four Chinese

NEW DELHI: India and China have moved most of their frontline troops further from their disputed border in a remote region in the northern Himalayas, India’s defense minister said Thursday, some 10 days after the two countries reached a new pact on military patrols that aims to end a four-year standoff that’s strained relations.
Rajnath Singh said the “process of disengagement” of Indian and Chinese troops near the Line of Actual Control in Ladakh is “almost complete.”
The Line of Actual Control separates Chinese and Indian-held territories from Ladakh in the west to India’s eastern state of Arunachal Pradesh, which China claims in its entirety. India and China fought a deadly war over the border in 1962.
Ties between the two countries deteriorated in July 2020 after a military clash killed at least 20 Indian soldiers and four Chinese. That turned into a long-running standoff in the rugged mountainous area, as each side stationed tens of thousands of military personnel backed by artillery, tanks and fighter jets in close confrontation positions.
Earlier this month the two neighbors announced a border accord aimed at ending the standoff, followed by a meeting between India’s Prime Minister Narendra Modi and China’s President Xi Jinping on the sidelines of the recent BRICS summit in Russia, their first bilateral meeting in five years.
It’s not clear how far back the troops were moved, or whether the pact will lead to an overall reduction in the number of soldiers deployed along the border.
“Our efforts will be to take the matter beyond disengagement; but for that, we will have to wait a little longer,” Singh said.
Chinese Defense Ministry spokesperson Zhang Xiaogang said Thursday that the frontline troops were “making progress in implementing the resolutions in an orderly manner.”
The pact called for Indian and Chinese troops to pull back from the last two areas of the border where they were in close positions. After the deadly confrontation in 2020, soldiers were placed in what commanders called “eyeball to eyeball” positions at least six sites. Most were resolved after previous rounds of military and diplomatic talks as the two nations agreed to the creation of buffer zones.
However, disagreements over pulling back from in the Depsang and Demchok areas lasted until the Oct. 21 pact.
“It is a positive move,” said Lt. Gen. D.S. Hooda, who from 2014 to 2016 headed Indian military’s Northern Command, which controls Kashmir region, including Ladakh. “Given how deep mistrust has been between the two countries and how all confidence building measures collapsed, it is quite a positive beginning,” he said.
However, Hooda added, it will take time for both countries to return to their pre-2020 positions. “It does not mean everything is going to as normal as it existed earlier. We have to re-establish traditional patrolling and also the buffer zones need to be sorted out,” he said.
The border standoff also damaged business ties between the two nations, as India halted investments from Chinese firms and major projects banned.


India says frontier disengagement with China along their disputed border is ‘almost complete’

Updated 31 October 2024
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India says frontier disengagement with China along their disputed border is ‘almost complete’

  • Two countries have reached new pact on military patrols that aims to end four-year standoff that has strained relations
  • India says “process of disengagement” of Indian and Chinese troops near Line of Actual Control is “almost complete”

NEW DELHI: India and China have moved most of their frontline troops further from their disputed border in a remote region in the northern Himalayas, India’s defense minister said Thursday, some 10 days after the two countries reached a new pact on military patrols that aims to end a four-year standoff that’s strained relations.
Rajnath Singh said the “process of disengagement” of Indian and Chinese troops near the Line of Actual Control in Ladakh is “almost complete.”
The Line of Actual Control separates Chinese and Indian-held territories from Ladakh in the west to India’s eastern state of Arunachal Pradesh, which China claims in its entirety. India and China fought a deadly war over the border in 1962.
Ties between the two countries deteriorated in July 2020 after a military clash killed at least 20 Indian soldiers and four Chinese. That turned into a long-running standoff in the rugged mountainous area, as each side stationed tens of thousands of military personnel backed by artillery, tanks and fighter jets in close confrontation positions.
Earlier this month the two neighbors announced a border accord aimed at ending the standoff, followed by a meeting between India’s Prime Minister Narendra Modi and China’s President Xi Jinping on the sidelines of the recent BRICS summit in Russia, their first bilateral meeting in five years.
It’s not clear how far back the troops were moved, or whether the pact will lead to an overall reduction in the number of soldiers deployed along the border.
“Our efforts will be to take the matter beyond disengagement; but for that, we will have to wait a little longer,” Singh said.
Chinese Defense Ministry spokesperson Zhang Xiaogang said Thursday that the frontline troops were “making progress in implementing the resolutions in a orderly manner.”
The pact called for Indian and Chinese troops to pull back from the last two areas of the border where they were in close positions. After the deadly confrontation in 2020, soldiers were placed in what commanders called “eyeball to eyeball” positions at at least six sites. Most were resolved after previous rounds of military and diplomatic talks as the two nations agreed to the creation of buffer zones.
However, disagreements over pulling back from in the Depsang and Demchok areas lasted until the Oct. 21 pact.
“It is a positive move,” said Lt. Gen. D.S. Hooda, who from 2014 to 2016 headed Indian military’s Northern Command, which controls Kashmir region, including Ladakh. “Given how deep mistrust has been between the two countries and how all confidence building measures collapsed, it is quite a positive beginning,” he said.
However, Hooda added, it will take time for both countries to return to their pre-2020 positions. “It does not mean everything is going to as normal as it existed earlier. We have to re-establish traditional patrolling and also the buffer zones need to be sorted out,” he said.
The border standoff also damaged business ties between the two nations, as India halted investments from Chinese firms and major projects banned.