Why Bangladesh is seeking Saudi oil on credit after IMF success

Bangladeshi Foreign Minister A.K. Abdul Momen meets Saudi Ambassador Essa Al-Duhailan in Dhaka on Feb. 1, 2023. (Photo/Bangladesh Ministry of Foreign Affairs)
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Updated 04 February 2023
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Why Bangladesh is seeking Saudi oil on credit after IMF success

  • Bangladeshi government asks Kingdom to supply oil on deferred payment basis
  • Request follows IMF approval of $4.7bn stabilization package for South Asian nation

DHAKA: After securing a stabilization package from the International Monetary Fund this week, Bangladesh has asked Saudi Arabia for extended credit on oil supplies, in a move that experts say would further help its economy get back on track.

Bangladesh Foreign Minister A.K. Abdul Momen met Riyadh’s Ambassador to Dhaka, Essa Al-Duhailan, earlier this week. The foreign ministry said after the meeting that Momen had asked the Kingdom to consider supplying crude and refined oil “on a deferred payment basis” to help Bangladesh meet its energy needs.

The request came shortly after the IMF approved a $4.7 billion loan for Bangladesh.

HIGHLIGHT

Request follows IMF approval of $4.7bn stabilization package for South Asian nation.

“Bangladesh is now passing through a period of constrained foreign exchange reserves and is having difficulty in terms of opening LCs (letters of credit) and also in terms of paying for our imports,” Prof. Mustafizur Rahman, distinguished fellow at the Centre for Policy Dialogue in Dhaka, told Arab News on Friday.

“If we can get Saudi oil on a deferred payment basis, it will ease up Bangladesh’s foreign exchange reserves and help Bangladesh in terms of purchasing other necessary imports which require instantaneous payment.”

The IMF’s Extended Credit Facility and Extended Fund Facility package approved for Bangladesh on Jan. 30 are likely to boost the country’s outlook among its creditors, including Saudi Arabia, and demonstrate its capacity to pay back.

Unlike other regional countries, such as crisis-hit Sri Lanka and Pakistan, Bangladesh did not ask the fund for a bailout loan. The approved arrangements are a stabilization package to fund structural reform, ensure balance-of-payment stability, and a stable and sustainable economic position.

“The IMF granting of $4.7 billion will be helpful in providing positive signals to our development partners that the fundamentals of the Bangladeshi economy remain strong, and that Bangladesh is also ready to take up reforms,” Rahman said.

“From that perspective, it will also be helpful in projecting to Saudi Arabia that while we are asking for deferred payment, the Bangladeshi economy will be able to sustain good foreign reserves and when the negotiated time comes, we will be able to pay.”

Besides taking the pressure off its dollar reserves, the extended credit on oil supplies would also help Bangladesh with energy security. The South Asian nation, which is dependent on imported liquefied natural gas, has been struggling with an energy crisis in recent months.

Since mid-July, the government has been resorting to daily power cuts amid high global prices driven up by Russia’s war in Ukraine. Industries that do not receive sufficient power to run their operations have been forced to remain idle for several hours a day. In early October, about 80 percent of Bangladesh’s 168 million people were left without electricity after a grid failure caused by fuel shortages to over a third of the country’s gas-powered units.

Saudi Arabia supplies more than half of Bangladesh’s crude imports.

“We are bringing in oil, which is our regular, normal import, because our transport sector is fully dependent on this oil, and also partially our production,” said Prof. Mohammad Tamim, dean of chemical and material engineering at Bangladesh University of Engineering and Technology.

Importing energy and ensuring its uninterrupted supply are crucial to keeping the Bangladeshi economy afloat and helping it stabilize while other reforms requested by the IMF are implemented to fix structural problems.

“There is a lot of pressure in terms of importing energy products, so it’s very important that we keep supplying oil so that there is no disruption in economic activity,” Tamim said.

“Deferred payment will definitely help Bangladesh in tackling the dollar crunch now.”


Xi, Biden attend Asia-Pacific summit, prepare to meet

Updated 6 sec ago
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Xi, Biden attend Asia-Pacific summit, prepare to meet

  • Joe Biden and Xi Jinping are due to hold a face-to-face meeting Saturday
  • APEC brings together 21 economies that jointly represent about 60% of world GDP
LIMA: US President Joe Biden and Chinese counterpart Xi Jinping will attend the first day of an Asia-Pacific leaders’ summit Friday ahead of a face-to-face meeting under a cloud of diplomatic uncertainty cast by Donald Trump’s election victory.
Biden and Xi are due to hold talks Saturday, in what a US administration official said will probably be the last meeting between the sitting leaders of the world’s largest economies before Trump is sworn in in January.
With the Republican president-elect having signaled a confrontational approach to Beijing for his second term, the bilateral meeting will be a closely watched affair.
Xi and Biden arrived in Lima Thursday along with other world leaders for a two-day heads-of-state meeting of the Asia-Pacific Economic Cooperation (APEC) grouping.
APEC, created in 1989 with the goal of regional trade liberalization, brings together 21 economies that jointly represent about 60 percent of world GDP and over 40 percent of global commerce.
The summit program was to focus on trade and investment for what proponents dubbed inclusive growth.
But uncertainty over Trump’s next moves now clouds the agenda — as it does for the COP29 climate talks underway in Azerbaijan, and a G20 summit in Rio de Janeiro next week.
On Thursday, APEC ministers, including US Secretary of State Antony Blinken, held their own meeting behind closed doors in Lima to set the tone for the summit to follow.
Trump announced this week he will replace Blinken with Senator Marco Rubio, a China hawk.
The summit will also be attended by Japan, South Korea, Canada, Australia and Indonesia, among others.
President Vladimir Putin of APEC member Russia will not be present.
Trump’s “America First” agenda is based on protectionist trade policies, increased domestic fossil fuel extraction, and avoiding foreign conflicts.
It threatens alliances Biden has built on issues ranging from the wars in Ukraine and the Middle East to climate change and commerce.
The Republican president-elect has threatened tariffs of up to 60 percent on imports of Chinese goods to even out what he says is an imbalance in bilateral trade.
China is grappling with a prolonged housing crisis and sluggish consumption that can only be made worse by a new trade war with Washington.
But economists say punitive levies would also harm the American economy, and others further afield.
China is an ally of Western pariahs Russia and North Korea, and is building up its own military capacity while ramping up pressure on Taiwan, which it claims as part of its territory.
It is also expanding its reach into Latin America through infrastructure and other projects under its Belt and Road Initiative.
Xi on Thursday inaugurated South America’s first Chinese-funded port, in Chancay, north of Lima, even as a senior US official warned Latin American countries to be vigilant when it comes to Chinese investment.
Biden, meanwhile, will on Friday meet Japanese Prime Minister Shigeru Ishiba and South Korean President Yoon Suk Yeol — key US allies in Asia.
Traveling with Biden, National Security Adviser Jake Sullivan said the partner nations will announce the creation of a secretariat to ensure their alliance “will be an enduring feature of American policy.”
China isn’t the only country in Trump’s economic crosshairs.
The incoming US leader has threatened tariffs of 25 percent or more on goods coming from Mexico — another APEC member — unless it stops an “onslaught of criminals and drugs” crossing the border.
Peru has deployed more than 13,000 members of the armed forces to keep the peace in Lima as transport workers and shop owners launched three days of protests against crime and perceived government neglect.

As Philippines picks up from Usagi, a fresh storm bears down

Updated 15 November 2024
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As Philippines picks up from Usagi, a fresh storm bears down

  • Typhoon Usagi blew out of the Philippines early Friday as another dangerous storm drew closer
  • Scores were killed by flash floods and landslides just weeks ago, the weather service said

MANILA: Typhoon Usagi blew out of the Philippines early Friday as another dangerous storm drew closer, threatening an area where scores were killed by flash floods and landslides just weeks ago, the weather service said.
As Usagi — the archipelago nation’s fifth storm in three weeks — headed north to Taiwan, rescuers worked to reach residents stranded on rooftops in northern Luzon island, where herds of livestock were devastated.
The recent wave of disasters has killed at least 159 people and prompted the United Nations to request $32.9 million in aid for the worst-affected regions.
On Thursday, flash floods driven by Usagi struck 10 largely evacuated villages around the town of Gonzaga in Cagayan province, local rescue official Edward Gaspar told AFP by phone.
“We rescued a number of people who had refused to move to the shelters and got trapped on their rooftops,” Gaspar added.
While the evacuation of more than 5,000 Gonzaga residents ahead of the typhoon saved lives, he said two houses were swept away and many others were damaged while the farming region’s livestock industry took a heavy blow.
“We have yet to account for the exact number of hogs, cattle and poultry lost from the floods, but I can say the losses were huge,” Gaspar said.
Trees uprooted by flooding damaged a major bridge in Gonzaga, isolating nearby Santa Ana, a coastal town of about 36,000 people, Cagayan officials said.
“Most evacuees have returned home, but we held back some of them. We have to check first if their houses are still safe for habitation,” Bonifacio Espiritu, operations chief of the civil defense office in Cagayan, told AFP.
By early Friday, Usagi was over the Luzon Strait with a reduced strength of 120 kilometers (75 miles) an hour as it headed toward southern Taiwan, where authorities had downgraded the typhoon to a tropical storm.
But the streak of violent weather was forecast to continue in the central Philippines, where Severe Tropical Storm Man-yi is set to reach coastal waters by Sunday.
The weather service said it could potentially strike at or near the heavily populated capital Manila.
A UN assessment said the past month’s storms damaged or destroyed 207,000 houses, with 700,000 people forced to seek temporary shelter.
Many families were without essentials like sleeping mats, hygiene kits and cooking supplies, and had limited access to safe drinking water.
Thousands of hectares of farmland were destroyed and persistent flooding was likely to delay replanting efforts and worsen food supply problems, the report added.
About 20 big storms and typhoons hit the Southeast Asian nation or its surrounding waters each year, killing scores of people and keeping millions in enduring poverty, but it is unusual for multiple such weather events to take place in a small window.
The weather service said this tends to happen during seasonal episodes of La Nina, a climatic phenomenon in the Pacific Ocean that pushes more warm water toward Asia, causing heavy rains and flooding in the region and drought in the southern United States.


North Korea tests exploding drones as Kim Jong Un calls for mass production

Updated 15 November 2024
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North Korea tests exploding drones as Kim Jong Un calls for mass production

  • Tensions in the region have escalated as Kim flaunts his advancing nuclear and missile program

SEOUL: North Korea tested exploding drones designed to crash into targets and leader Kim Jong Un called for accelerating mass production of the weapons, state media said Friday.
The country’s latest military demonstration came as the United States, South Korea and Japan engaged in combined military exercises involving advanced fighter jets and a US aircraft carrier in nearby international waters, in a display of their defense posture against North Korea.
North Korea’s official Korean Central News Agency published photos of Kim talking with officials near at least two different types of unmanned aerial vehicles. They included those with X-shaped tails and wings that look similar to the ones the country disclosed in August, when Kim inspected another demonstration of drones that explode on impact.
The drones flew various routes and accurately struck targets, KCNA said. Its images showed what appeared to be a BMW sedan being destroyed and old models of tanks being blown up.
Kim expressed satisfaction with the weapons’ development process and stressed the need to “build a serial production system as early as possible and go into full-scale mass production,” noting how drones are becoming crucial in modern warfare.
KCNA paraphrased Kim as saying drones were easy to make at low cost for a range of military activities. The report didn’t say if Kim spoke directly about rival South Korea, which the North Korean drones are apparently designed to target.
North Korea last month accused South Korea of sending its own drones to drop anti-North Korean propaganda leaflets over the North’s capital of Pyongyang, and threatened to respond with force if such flights occur again. South Korea’s military has refused to confirm whether or not the North’s claims were true.
Tensions in the region have escalated as Kim flaunts his advancing nuclear and missile program, which includes various nuclear-capable weapons targeting South Korea and intercontinental ballistic missiles that can potentially reach the US mainland.
Kim is also allegedly sending military equipment and troops to Russia to support President Vladimir Putin’s war on Ukraine, which raised concerns in Seoul that he would get Russian technology in return to further develop his arsenal.
In addition to his intensifying nuclear threats, Kim has also engaged in psychological and electronic warfare against South Korea, such as flying thousands of balloons to drop trash in the South and disrupting GPS signals from border areas near the South’s biggest airport.
South Korean officials say North Korea will be a key topic in a trilateral summit between South Korean President Yoon Suk Yeol, US President Joe Biden and Japanese Prime Minister Shigeru Ishiba this week at the Asia-Pacific Economic Cooperation meetings in Peru.
South Korean Foreign Minister Cho Tae-yul and US Secretary of State Antony Blinken met on the margins of the APEC on Thursday and discussed “strong concerns” over deepening ties between Pyongyang and Moscow, particularly the deployment of North Korean troops to support Russia’s war against Ukraine, the US State Department said.


Rebel attacks blamed on Pakistan keep Indian-administered Kashmir on the boil

Updated 15 November 2024
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Rebel attacks blamed on Pakistan keep Indian-administered Kashmir on the boil

  • India blames Pakistan for arming militants and helping them “infiltrate” across the militarzed border
  • Pakistan denies it supports militants, says it only offers moral and diplomatic support to Kashmiri people

SRINAGAR, India: Ambushes, firefights and a market grenade blast: headline-grabbing attacks in Indian-administered Kashmir are designed to challenge New Delhi’s bid to portray normality in the disputed territory, Indian security officials say.
Kashmir has been divided between nuclear-armed rivals India and Pakistan since their partition at the chaotic end of British rule in 1947, and both countries claim the territory in full.
“The attacks are not merely about killing, but also to set a narrative to counter the Indian narrative — that everything is fine,” said the former head of India’s Northern Command forces, retired general Deependra Singh Hooda.
Half a million Indian troops are deployed in the far northern region, battling a 35-year insurgency in which tens of thousands of civilians, soldiers and rebels have been killed, including at least 120 this year.
Prime Minister Narendra Modi’s Hindu nationalist government canceled the Muslim-majority region’s partial autonomy in 2019, a decision accompanied by mass arrests and a months-long communications blackout.
The territory of around 12 million people has since been ruled by a governor appointed by New Delhi, overseeing the local government that voters elected in October in opposition to Modi.
New Delhi insists it helped bring “peace, development and prosperity” to the region.
But military experts say that small bands of rebels — demanding either independence or Kashmir’s merger with Pakistan — use attacks to contradict the claims.
“The larger message being sent out is that the problem in Kashmir is alive,” Hooda said.
India blames Pakistan for arming militants and helping them “infiltrate” across the militarzed dividing line to launch attacks, an allegation Islamabad denies.
A “spurt in infiltration” this year by insurgents was “not possible without Pakistan’s army actively allowing it,” Hooda charged.
Many clashes take place in forested mountains far from larger settlements.
But the huge military presence visible in sprawling camps and roadblocks, roughly one in every 25 people in Kashmir is an Indian soldier, serves as a constant reminder.
Many are frustrated by traffic jams caused by military orders that civilian cars stay at least 500 meters (1,640 feet) away from army vehicles.
Yet those who have long lived under the shadow of the grinding insurgency seemingly shrug off the threat.
When an attacker this month hurled a grenade at security forces in a busy market — killing a woman and wounding 11 civilians — shoppers returned within a couple of hours.
This month, thousands attended an army recruitment drive, even as soldiers battled gunmen in a nearby district. 
Attacks appear dramatic, including a gunbattle in downtown Srinagar in early November that police said killed a commander of the Pakistan-backed Lashkar-e-Taiba militant group.
Earlier this year, attacks in the Jammu area — a Hindu-majority region — prompted the army to supply thousands of militia forces, dubbed village defense guards, with rifles.
But the death toll of 120 civilians, soldiers and rebels killed this year is, so far, similar in intensity to 2023, when 130 people died, according to the South Asia Terrorism Portal, a New Delhi-based monitoring group.
“It will remain like this on low boil, as long as Kashmir is divided (between India and Pakistan),” a security official said, speaking on condition of anonymity because they were not authorized to talk to journalists.
“We control it here; they (Pakistan) will activate it from there.”
The Indian army says around 720 rebels have been killed in the past five years.
Regional army commander MV Suchindra Kumar said in October he believed fewer than 130 remained in the fight.
Another security official, who spoke on the condition of anonymity, said those include “highly trained and well-armed” fighters who had crossed from Pakistan.
“They are causing some damage by surprise attacks,” the official said. “But the situation is under control.”
Hooda, drawing on his long experience as a general, predicts little change as long as violence serves the agenda of India’s rival Islamabad.
“I don’t see this coming down immediately,” he said, referring to the number of attacks.
“Pakistan has always felt that ratcheting up attacks will bring the spotlight on Kashmir.”


Trump meets with Argentina’s president, the first foreign leader he’s met with since election

Updated 15 November 2024
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Trump meets with Argentina’s president, the first foreign leader he’s met with since election

  • Javier Milei, a self-described ‘anarcho-capitalist’, is a frequent recipient of Trump praise
  • The Argentine president is known for his eccentric personality
PALM BEACH, Florida: Donald Trump met Thursday at his Mar-a-Lago club with Argentine President Javier Milei, the first foreign leader to meet with the president-elect since his victory in last week’s election.
The meeting was confirmed by a person who insisted on anonymity to discuss an event that hadn’t yet been announced publicly. The person said the meeting went well and said Milei also met with investors.
A short time later, Milei, a self-described “anarcho-capitalist” and frequent recipient of Trump praise, addressed the America First Policy Institute gala at Mar-a-Lago. He spoke briefly in English, then gave a longer speech in Spanish, pausing to allow an interpreter to translate, in which he slammed left-wing ideologies and saluted Elon Musk, the owner of X, saying his social media site is helping to “save humanity.”
Milei criticized a political ruling class that he said was responsible for a system that used unfair tax systems to force “the redistribution of wealth at gunpoint.”
The president of Argentina also congratulated Trump on his “resounding victory” in the election, saying, “Today the winds of freedom are blowing much stronger” and calling the victory “proof positive that the forces of heaven are on our side.”
Trump also spoke to the gala crowd, congratulating Milei “for the job you’ve done for Argentina” and saying it was an “honor” to have Argentina’s president at his club.
“The job you’ve done is incredible. Make Argentina Great Again, you know, MAGA. He’s a MAGA person,” Trump said to applause. “And you know, he’s doing that.”
Shortly after Milei’s election in November 2023, Trump posted on social media, “You will turn your country around and truly Make Argentina Great Again!”
Milei first met Trump in February at the Conservative Political Action Conference, or CPAC, in the Washington area. He has openly declared his admiration for Trump and when he saw him, he rushed to him screaming “president!” and gave him a close hug before they posed for pictures.
The Argentine president is known for his eccentric personality and first made a name for himself by shouting against Argentina’s “political caste” on television. The right-wing populist campaigned with a chainsaw as his prop to symbolize his plans to slash public spending and scrap government ministries.