Pakistan opposition takes prime minister to task over IMF deal

Pakistan Finance Minister Asad Umar (R) meets with IMF Managing Director Christine Lagarde at the Bali Convention Centre during the 2018 IMF/World Bank annual meetings in Nusa Dua on the Indonesian resort island of Bali on Oct. 11, 2018. (AFP file photo)
Updated 16 October 2018
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Pakistan opposition takes prime minister to task over IMF deal

  • The daily dithering has paralyzed the economy and precipitously devalued the rupee, says Sen. Sherry Rehman
  • Govt has instilled a sense of 'comfort and confidence' in the markets, says official spokesman

KARACHI, Pakistan: Questioning the government’s lack of perspicacity to avoid “painful economic decisions,” Pakistan’s opposition said on Monday that it was shocked at Prime Minister Imran Khan’s inability to avert a crisis, if any.  

“We have serious questions about this kind of strategy, where just the daily dithering has not just paralyzed the economy and precipitously devalued the rupee, but hugely compounded the crisis in the country’s public finances,” Sen. Sherry Rehman, former leader of the opposition in the Senate, told Arab News.

The reaction follows Finance Minister Asad Umar’s comments on Saturday wherein he said that “the government will have to take tough decisions that would be painful for people,” signaling a possible hike in utility prices, following Pakistan’s decision to approach the International Monetary Fund (IMF) for a bailout program. 

Opposing the decision, Rehman said: “We are shocked at the lack of a plan for a crisis we all saw looming. Now the slash and burn of utility prices is going to cause severe economic hardship. It’s one thing to have promised a completely different Pakistan, but another to not present alternative plans at least to manage the inflationary impact…on the most socially vulnerable sectors of Pakistan.”

Defending the move, Dr. Farrukh Saleem, government’s spokesman on economy and energy issues, said that the government has instilled a sense of “comfort and confidence” in the markets, not only within Pakistan but outside the country too, which was not possible without approaching the IMF for financial help. “IMF gives one prescription to those who avail its program, which includes an emphasis on increasing exports and curtailing imports and an end of subsidies,” he said.  Adding that the country’s “circular debts have gone up to 1.3 trillion rupees” — inherited from previous governments in the past 10 years — Dr. Saleem said that it was up to Imran Khan’s administration to do away with the liabilities as otherwise “the burden would eventually be shifted to consumers.”

“The government did not raise the gas rates for the last four years despite repeated requests from the concerned departments. Someone will have to swallow bitter pills of last 10 years,” he said. 

The stock market was jubilant following Pakistan’s decision to approach the IMF. However, investors’ newly acquired confidence was quickly replaced with concern as details emerged about the terms and conditions attached with the bailout program, resulting in a 750-point plunge in the benchmark KSE 100 index on Monday.

“Panic selling continued in the quarter earnings season amid a major fall in global equities and investor concerns for likely surge in interest rates and rupee depreciation with the potential IMF loans bailout package,” said Ahsan Mehanti, chief executive of Arif Habib Group. 

Pakistan has devalued its currency for the fifth time by 27 percent since December 2017, with analysts and stakeholders expecting another markdown as the IMF deal gathers steam.

“Its first impact would be in the currency market and the currency would be further devalued. With the devaluation of the Pakistani rupee against the US dollar, the prices of almost everything would start increasing especially those of imported goods,” Zafar Paracha, general secretary of Exchange Companies Association of Pakistan, told Arab News.  Another community that is expected to bear the brunt of the decision is the country’s industrialists and traders who said they could foresee an impact on the price of inputs and raw materials.

Junaid Esmail Makda, president of the Karachi Chamber of Commerce and Industry, said: “The finance minister should take the country’s business community into confidence before taking the ‘painful decision’ because if the government comes up with harsh decision without taking us into the loop it would have a disastrous impact.” 

He further warned that such a decision would be unfavorable not just “for foreign investors but for local investors too” who might move their assets to other countries.  

However, Dr. Saleem continued to remain optimistic.

Reiterating the fact that the steps taken by the government to mitigate the impact of the IMF’s conditions would yield results, he said: “The government is working to increase exports to stabilize foreign exchange and starting a housing project that would spur economic activities in the backdrop of a growing demand of allied industries.”


Pope Francis to visit French island of Corsica on Dec. 15, local church says

Updated 5 sec ago
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Pope Francis to visit French island of Corsica on Dec. 15, local church says

  • Short visit to the island’s capital city Ajaccio will mark his 47th foreign trip since becoming pope in 2013
  • Corsica’s population of some 356,000 is estimated by the Vatican as 81.% Catholic
VATICAN CITY: Pope Francis will visit Corsica on Dec. 15, the local diocese said on its website on Thursday, in the first recorded trip of a pope to the French island in the Mediterranean.
The short visit to the island’s capital city Ajaccio, where Francis is expected to speak at a conference on popular religiosity across the Mediterranean region, will mark his 47th foreign trip since becoming pope in 2013.
Corsica, noted for its steep, mountainous terrain and as the birthplace of Napoleon, is the fourth largest island in the Mediterranean Sea. It is one of France’s poorest regions, with government statistics estimating that about 20 percent of the population lives below the poverty line.
The Vatican did not immediately confirm the local church’s announcement, but the trip is known to have been in preparation for weeks. Francis has made two prior visits to France, traveling to Strasbourg in 2014 to address the European Parliament and the Council of Europe, and to Marseilles in 2023 to attend a meeting of bishops.
But the pope, who turns 88 on Dec. 17, has never made a full state visit to France, a historic stronghold for Catholicism that is now widely secular and home to Europe’s largest Muslim and Jewish communities.
French President Emmanuel Macron invited Francis to come to Paris for the Dec. 8 reopening of Notre Dame Cathedral, but the pope will be leading a ceremony at the Vatican that day to install new Catholic cardinals.
Cardinal Francois-Xavier Bustillo, originally from Spain, has led the Catholic Church in Corsica since 2021. Francis made him a cardinal, the highest rank in the Church below pope, in 2023.
Corsica’s population of some 356,000 is estimated by the Vatican as 81.5 percent Catholic.
Francis has traveled widely around the Mediterranean over his 11-year papacy, visiting Malta, the Greek island of Lesbos and the Italian island of Lampedusa.

Record 281 aid workers killed in 2024, says UN, with 1 month left

Updated 23 min 32 sec ago
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Record 281 aid workers killed in 2024, says UN, with 1 month left

  • 280 humanitarians were killed across 33 countries during all of 2023

Geneva: A staggering 281 aid workers have been killed around the world so far this year, making 2024 the deadliest year for humanitarians, the UN aid chief said Friday.
“Humanitarian workers are being killed at an unprecedented rate, their courage and humanity being met with bullets and bombs,” said Tom Fletcher, the United Nations’ new under-secretary-general for humanitarian affairs and emergency relief coordinator.
With more than a month left to go of 2024, the “grim milestone was reached,” he said, after 280 humanitarians were killed across 33 countries during all of 2023.
“This violence is unconscionable and devastating to aid operations,” Fletcher said.
Israel’s devastating war in Gaza was driving up the numbers, his office said, with 333 aid workers killed there — most from the UN agency supporting Palestinian refugees, UNRWA — since Hamas’s October 7, 2023 attacks, which sparked the war.
“States and parties to conflict must protect humanitarians, uphold international law, prosecute those responsible, and call time on this era of impunity,” Fletcher said.
Aid workers were subject to kidnappings, injuries, harassment and arbitrary detention in a range of countries, his office said, including Afghanistan, the Democratic Republic of the Congo, Sudan, and Ukraine.
The majority of deaths involve local staff working with non-governmental organizations, UN agencies and the Red Cross Red Crescent movement, Fletcher’s office said.
“Violence against humanitarian personnel is part of a broader trend of harm to civilians in conflict zones,” it warned.
“Last year, more than 33,000 civilian deaths were recorded in 14 armed conflicts — a staggering 72 percent increase from 2022.”
The UN Security Council adopted a resolution last May in response to the surging violence and threats against aid workers.
The text called for recommendations from the UN chief — set to be presented at a council meeting next week — on measures to prevent and respond to such incidents and to increase protection for humanitarian staff and accountability for abuses.


Russia says ‘derailed’ Kyiv’s war plans after uproar over test strike

Updated 33 min 19 sec ago
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Russia says ‘derailed’ Kyiv’s war plans after uproar over test strike

  • Vladimir Putin says the conflict in Ukraine had taken on a ‘global’ nature
  • NATO and Ukraine will hold talks next week in Brussels over the strike

KYIV: Russia said on Friday it had scuppered Kyiv’s military objectives for 2025 just after President Vladimir Putin issued a warning to the West by test-firing a new intermediate-range missile at Ukraine.
That assessment for next year came after a Russian drone attack at night on the eastern Ukrainian city of Sumy killed two civilians and wounded a dozen more in an attack with new cluster munitions, local authorities said.
Putin announced the missile launch in a defiant address late on Thursday, saying the conflict in Ukraine had taken on a “global” nature, while hinting at strikes on Western countries.
In a meeting with military commanders, Russian defense minister Andrei Belousov said Moscow’s advance had “accelerated” in Ukraine and “ground down” Kyiv’s best units.
“We have, in fact, derailed the entire 2025 campaign,” Belousov said of the Ukrainian army in a video published by the Russian defense ministry.
The attack, which apparently targeted an aerospace manufacturing plant in the central Ukrainian city of Dnipro, sparked immediate condemnation from Kyiv’s allies.
China, which has thrown its political clout behind the Kremlin, reiterated calls for “calm” and “restraint” by all parties after Russia confirmed the new missile strike.
“All parties should remain calm and exercise restraint, work to de-escalate the situation through dialogue and consultation, and create conditions for an early ceasefire,” foreign ministry spokesman Lin Jian told a regular briefing.
German Chancellor Olaf Scholz meanwhile, on Friday described Russia’s deployment of the medium-range missile as a “terrible escalation.”
NATO and Ukraine will hold talks next week in Brussels over the strike, according to diplomats.
Ambassadors from countries in the NATO-Ukraine Council will hold talks on Tuesday. The meeting was called by Kyiv following the Dnipro strike, officials said.
The Russian attack came after Ukraine recently fired US- and UK-supplied missiles at Russian territory for the first time, escalating already sky-high tensions over the conflict, which is nearly in its third year.
Washington said it had granted Kyiv permission to fire long-range weapons at Russian territory as a response to the Kremlin’s deployment of thousands of North Korean troops on Ukraine’s border.
Ukrainian President Volodymyr Zelensky has called for a strong response from world leaders to Russia’s use of the new missile, which he said proved Moscow “does not want peace.”
In Kyiv, Oleksandra, a 30-year-old resident working in the media, said the Russian strike was a sign of desperation within the Kremlin.
“You could have launched a missile that is less expensive and have the same result. As long as this missile does not carry a nuclear payload, there is nothing to fear about,” she said.
Russian troops have been making steady advances in eastern Ukraine for months, capturing a string of small towns and villages from overstretched Ukrainian soldiers lacking manpower and artillery.
In the city of Sumy, authorities said a Russian drone had struck a residential neighborhood. Emergency services distributed images showing rescue workers retrieving the bodies of the dead from the rubble.
Sumy lies across the border from Russia’s Kursk region, where Ukrainian troops captured swathes of territory after launching a major ground offensive in August.
The head of the Sumy region, Volodymyr Artyukh, said Russia had deployed a drone with modified munitions that were equipped with shrapnel, describing the weapons as being “used to kill people, not to destroy buildings.”


Indian commandos kill 10 Maoist rebels

Updated 57 min 38 sec ago
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Indian commandos kill 10 Maoist rebels

  • More than 10,000 people have died in the decades-long insurgency waged by the Naxalite movement
  • Gunbattle took place in a remote forested area of Chhattisgarh state, the heartland of the insurgency

RAIPUR, India: Indian security forces gunned down at least 10 Maoist rebels on Friday during a firefight, police said, as New Delhi steps up efforts to crush the long-running armed conflict.
More than 10,000 people have died in the decades-long insurgency waged by the Naxalite movement, who say they are fighting for the rights of marginalized Indigenous people of India’s remote and resource-rich central regions.
The gunbattle took place in a remote forested area of Chhattisgarh state, the heartland of the insurgency.
“Dead bodies of 10 Maoists have been recovered so far,” Vivekanand Sinha, chief of the state police’s anti-Maoist operations, said.
Sinha said the police recovered several automatic weapons from the rebels.
India’s home minister Amit Shah this year issued an ultimatum to the insurgents to surrender or face an “all-out assault.”
A crackdown by security forces has killed over 200 rebels this year, an overwhelming majority in Chhattisgarh, according to government data.
India has deployed tens of thousands of security personnel to battle the Maoists across the insurgent-dominated “Red Corridor,” which stretches across central, southern and eastern states but has shrunk dramatically in size.
India has pumped millions of dollars into infrastructure development in remote areas and claims to have confined the insurgency to 45 districts in 2023, down from 96 in 2010.
The conflict has seen a number of deadly attacks on government forces over the years. Twenty-two police and paramilitaries were killed in a gunbattle with the far-left guerrillas in 2021.
Sixteen commandos were also killed in the western state of Maharashtra in a bomb attack that was blamed on the Maoists in the lead-up to national elections in 2019.


Second Australian dies after suspected Laos alcohol poisoning

Updated 22 November 2024
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Second Australian dies after suspected Laos alcohol poisoning

  • A total of six foreign tourists have now died of suspected methanol poisoning in a backpacker hotspot in northern Laos

SYDNEY: A second young Australian tourist has died after apparently ingesting tainted alcohol while on holiday in Laos, Canberra’s foreign minister said Friday.
“All Australians will be heartbroken by the tragic passing of Holly Bowles,” Penny Wong said in a statement. “Just yesterday, Holly lost her best friend, Bianca Jones.”
“I know tonight all Australians will be holding both families in our hearts,” the foreign minister added.
A total of six foreign tourists have now died of suspected methanol poisoning in a backpacker hotspot in northern Laos.
They were from Australia, Britain, Denmark and the United States.
Many of the victims were in their teens or early twenties and fell sick after a night out in Vang Vieng.
Australian officials are now pressing Laotian authorities for a full and transparent investigation into what happened.
Alcohol tainted with methanol is suspected to be the cause of death.
Methanol is a toxic alcohol used in industrial and household products like antifreeze, photocopier fluids, de-icers, paint thinner, varnish and windshield wiper fluid.
Despite being toxic to humans, it is sometimes used in cheaply made home brew.