Pakistan mourns loss of great friend

President Asif Ali Zardari “expressed profound shock and sorrow over the tragic death” of his Iranian counterpart, Ebrahim Raisi.

In a statement issued by the president’s office, Zardari “emphasised that the Islamic World has lost a remarkable leader who always supported [the] Muslim cause and deeply felt the sufferings of the Muslims globally, particularly the Palestinian and Kashmiri people”.

“Today, Pakistan mourns the loss of a great friend. Just last month, we had the honour of hosting him in Pakistan. During our discussions, I found him very keen on strengthening our bilateral relations,” President Zardari said, recalling Raisi’s visit to Pakistan last month.

Highlighting that the Iranian president “always had a special place for Pakistan and its people”, Zardari said Raisi will be “dearly missed and fondly remembered in Iran, Pakistan, and the Islamic World for his efforts to enhance relations with regional and Islamic countries”.

Saudi Arabia pledges support for Iran

Saudi Arabia expressed grave concern over the media reports regarding the accident happened to a helicopter carrying Iran’s President Dr. Ebrahim Raisi and an accompanying delegation, including Foreign Minister Hossein Amir-Abdollahian. The Kingdom announced its readiness to provide any assistance that the Iranian agencies needed, the Ministry of Foreign Affairs said in a statement, carried by the Saudi Press Agency.

Saudi Minister of Foreign Affairs Prince Faisal bin Farhan made a phone call on Monday with Iran’s Acting Foreign Minister Ali Bagheri Kani. During the call, Prince Faisal offered to Kani his deep condolences and sincere sympathy over the death of Iranian President Dr. Ebrahim Raisi, Foreign Minister Hossein Amir-Abdollahian and their accompanying delegation in a helicopter crash on Sunday. The minister expressed the Kingdom’s solidarity with the government and people of the Islamic Republic of Iran

“The government of Saudi Arabia is following with great concern what was circulated in the media regarding the helicopter carrying Iran’s President Dr. Ebrahim Raisi and an accompanying delegation. At a time when we supplicate God Almighty to safeguard the president and those accompanying him with His protection and care, we reaffirm that Saudi Arabia stands by the sisterly Islamic Republic of Iran in these difficult circumstances,” the ministry said.

A helicopter carrying Iran’s President Ebrahim Raisi and Foreign Minister Hossein Amir-Abdollahian has been involved in an accident, the Iranian state media reported earlier. Reports say the helicopter - one of three travelling in a convoy - made a “hard landing” after it got into difficulties in heavy fog in the north of the country.

Iranian Interior Minister Ahmad Vahidi said rescuers were still trying to reach the site due to the difficult weather conditions. Raisi was heading to the city of Tabriz, in the north west of Iran, after returning from an Iran-Azerbaijan border area, according to local media.

 

 

West busy in character assassination of Raisi

Iran proclaimed five days of mourning for President Ebrahim Raisi on Monday, though the muted atmosphere revealed little of the spectacular public grief that has accompanied the deaths of other senior figures in the Islamic Republic's 45-year history.

While government loyalists packed into mosques and squares to pray for Raisi and Foreign Minister Hossein Amir Abdollahian, both killed in a helicopter crash, most shops remained open and the authorities made little effort to interrupt ordinary life.

A year after Raisi's hardline government cracked down violently to end the biggest anti-establishment demonstrations since the 1979 revolution, opponents even posted furtive video online of people passing out sweets to celebrate his death.

Laila, a 21-year-old student in Tehran, told Reuters by phone that she was not saddened by Raisi's death, "because he ordered the crackdown on women for hijab."

"But I am sad because even with Raisi's death this regime will not change," she said.

Rights groups say hundreds of Iranians died in 2022-2023 demonstrations triggered by the death in custody of a young Iranian Kurdish woman arrested by morality police for violating the country's strict dress codes.

The authorities' handling of an array of political, social and economic crises have deepened the gap between the clerical rulers and society.

Supporters of the clerical establishment spoke admiringly of Raisi, a 63-year-old former hardline jurist elected in a tightly controlled vote in 2021.

"He was a hard working president. His legacy will endure as long as we are alive," said Mohammad Hossein Zarrabi, 28, a member of the volunteer Basij militia in the holy Shi'ite city of Qom.

But there was little of the emotional rhetoric that accompanied the deaths of publicly revered figures, like Qasem Soleimani, a senior commander of Iran's elite Revolutionary Guards killed by a US missile in 2020 in Iraq, whose funeral drew huge crowds of mourners, weeping with sorrow and rage.

For opponents of Iran's clerical rulers at home and in exile, Raisi has been a hate figure since the 1980s when he was blamed for playing a leading role as a jurist in the execution of dissidents. Iran has never acknowledged that mass executions took place; amnesty International says 5,000 Iranians, possibly more, were executed in the first decade after the revolution.

"I congratulate the families of the victims of the executions," internet user Soran Mansournia posted in an online forum debating the legacy of Raisi's death.

However, Narges, another user, lamented Raisi as having died "a martyr's death".

Many Iranians said they expected that Raisi's death would have little impact on how the country would be ruled, with the establishment likely to replace him with another figure with similarly hardline views.

"Who cares, one hardliner dies, another takes over and our misery continues," said Reza, 47, a shopkeeper in the central desert city of Yazd who did not give his full name fearing reprisals.

"We're too busy with economic and social issues to worry about such news."

 

Iran: Mohammad Mokhber, Interim President

According to Articles 130 and 131 of the first edition of the Constitution of the Islamic Republic of Iran (adopted in 1979), the first vice president – Mohammad Mokhber – will step in and assume the duties of the president after the death of President Ebrahim Raisi.

The Constitution stipulates that these responsibilities are transferred to the First Vice President with the approval of the Leader of the Islamic Revolution, and within 50 days the country needs to go to an election to elect a new president.

According to the Iranian political hierarchy, the head of the state is the Leader of the Islamic Revolution, Ayatollah Seyed Ali Khamenei, and the president is considered the head of the government, the second-in-command.

In case of sudden death, the first vice president is expected to guide the country through this transitional period until new presidential elections are held. 

The Iranian constitution was amended in 1989, when important changes were instituted. 

Here are some key facts about Mohammad Mokhber:

As interim president, Mokhber will be part of a three-person council, along with the speaker of parliament and the head of the judiciary, that will organise a new presidential election within 50 days of the president's death.

Born on September 01, 1955, Mokhber, like Raisi, is seen as close to Supreme Leader Ali Khamenei, who has the last say in all matters of state. Mokhber became first vice president in 2021 when Raisi was elected president.

Mokhber was part of a team of Iranian officials who visited Moscow in October last year and agreed to supply surface-to-surface missiles and more drones to Russian military. The team also included two senior officials from Iran's Revolutionary Guards and an official from the Supreme National Security Council.

Mokhber had previously been head of Setad, an investment fund linked to the supreme leader.

In 2010, the European Union included Mokhber on a list of individuals and entities it was sanctioning for alleged involvement in "nuclear or ballistic missile activities". Two years later, it removed him from the list.

In 2013, the US Treasury Department added Setad and 37 companies it oversaw to a list of sanctioned entities.

Setad, whose full name is Setad Ejraiye Farmane Hazrate Emam, or the Headquarters for Executing the Order of the Imam, was set up under an order issued by the founder of the Islamic Republic, Khamenei's predecessor, Ayatollah Ruhollah Khomeini. It ordered aides to sell and manage properties supposedly abandoned in the chaotic years after the 1979 Islamic Revolution and channel the bulk of the proceeds to charity.

 

Calm in Red Sea linked to ceasefire in Gaza

Iranian ambassador to Beijing, Mohsen Bakhtiar, has asserted that clashes in the Red Sea are a direct result of Israel’s genocidal war in Gaza, noting that situation in the strategic waterway will only become stable once the regime ceases its crimes against Palestinians.

The diplomat emphasized that if the United States and its allies genuinely seek peace, security, and stability in the region, they must prioritize an immediate ceasefire in Gaza.

Bakhtiar made the remarks during an interview with Chinese Phoenix TV. He highlighted Iran's efforts from the outset of the conflict to halt the Israeli onslaught. However, he accused the Zionist regime and its supporters of obstructing these efforts and facilitating the ongoing genocide.

Bakhtiar argued that the US vetoing of draft resolutions calling for a ceasefire in Gaza has led to the escalation of tensions in the region, particularly in the Red Sea.

He condemned Israel's indiscriminate killing of thousands of innocent civilians, including attacks on mosques, churches, and hospitals.

Yemen’s armed forces began targeting Israeli ships and Israel-bound vessels passing through the Red Sea shortly after the regime began its latest round of attacks against Palestinians in the besieged Gaza Strip. Sana’a has said that it would stop the attacks once Israel ends the devastating war in Gaza.

The Arab country also began targeting American and British ships after London and Washington started to directly attack Yemeni soil in support of Israel instead of turning the screw on Zionists.  

The Iranian envoy to China also addressed Israel's April 01, 2024 attack on Iran’s consulate in Damascus. He criticized Western states for refusing to condemn the barbaric act.

“European states and G7 leaders failed to condemn this heinous act while they pretend to be champions of human rights and international law,” he said. 

On a positive note, Bakhtiar emphasized the deep and longstanding ties between Iran and China. He said centuries of amicable relations between the two countries and their people can help Tehran and Beijing further elevate cooperation and collaboration in different areas. 

 

Joe Biden’s genocide

The United States needs a president who won’t cede control of its foreign policy to an authoritarian, genocidal apartheid state, but who will instead work diligently for peace.

Joe Biden has continued the long tradition of American presidents who wage war in the name of keeping the peace and who violently displace people in the name of freedom.

It’s time for a new definition of what it means to be an American. It’s time to commit to the service of people, planet, and peace.

There is no red line for Biden with Israel, in fact there never was.

For 224 days Biden has repeatedly delivered material support for Israel’s brutality against Gaza.

Biden has now made it clear that he won’t stop for any reason.

The US government’s complicity in this genocide is a stain on all the Americans, but this will always be remembered as Joe Biden’s genocide.

The foreign ministers of 13 countries – including most of the G7 – issued statements calling on Israel to open the Rafah gate and allow aid into Gaza; the United States was not among them.

Five days after the invasion of Rafah, Biden made headlines announcing a “pause” on a single shipment of 3500 bombs to Israel, stating he was “concerned” the bombs would be used in Gaza.

Rafah was supposed to be Biden’s red line for Israel.

This “pause” (already too little and far too late) was meant to be proof that he meant it, but that was a lie.

It took five long, agonizing days for Joe Biden to act: after Israel unilaterally rejected a ceasefire agreement that would have resulted in a return of all hostages, invaded Rafah and began firing tanks at starving Palestinians huddled in tents, aid organizations and the UN and its allies and millions of Americans spoke out and demanded a halt on weapons to Israel.

Just days after delaying a few thousand bombs from shipping out, Biden is rushing weapons to Israel worth billion dollars.

Panama flagged oil tanker attacked off Yemen

According to Reuters, a Panamanian-flagged crude oil tanker was attacked near Yemen's Red Sea port city of Mocha, British security firm Ambrey said on Saturday.

Ambrey said a radio communication indicated the ship was hit by a missile and that there was a fire onboard about 10 nautical miles southwest of Mokha.

It had received assistance and one of its steering units was functional, Ambrey added, citing information it had received but without giving more details.

Other vessels in the vicinity were advised to exercise caution, Ambrey added in an advisory note.

Separately, the United Kingdom Maritime Trade Operations (UKMTO) agency said earlier on Saturday that a vessel in the Red Sea was struck by an unknown object and sustained slight damage.

"The vessel and crew are safe and continuing to its next port of call," UKMTO said in an advisory note on the incident 98 nautical miles south of Yemen's Hodeidah port.

 

Iran: Oil pipelines to go operational this year

Iranian Oil Minister Javad Oji said 1,000 kilometers of oil pipeline will come online this Iranian calendar year, ending March20, 2025, to facilitate the transfer of oil products.

Speaking on the sidelines of a cabinet meeting, Oji said that three projects are ready to go operational in Eastern Azerbaijan Province including a 222-kilometer pipeline for conveying oil products from Tabriz to Oromyyeh, improving the quality of gasoil produced at Tabriz oil refinery and its sulfur recycling unit project. 

“Tabriz refinery’s improving gasoil quality project will increase the country’s euro-5 gasoil production capacity by five million liters per day”, the oil minister said, adding the project will be a considerable contribution to the improvement of the environmental situation and deterring air pollution. 

Tabriz-Oromyyeh and Bandar Abbas- Rafsanjan- Sirjan oil products transfer pipelines, as part of a general plan for the construction of a 1000 km pipeline this year, will facilitate oil product conveying from oil refineries to consumption destinations like power plants, industries, oil products storage facilities and so on, he said.

currently about 16,000 to 17,000 tanker trucks are involved in carrying oil products on roads across the country, the petroleum minister said, adding carrying oil products through pipelines will decrease tanker trucks movements and their related accidents while at the same time will improve the quality of air, will lessen the cost of transportation as well as preventing road quality deterioration.  

He said that under the related laws, 90 to 95 percent of fueling at gas stations should be done by using personal fuel cards which stands at around 70 percent currently. 

The official pointed to the creation of a system in the country to reduce fuel smuggling and said, “At first, this system will be used on a trial basis, and based on it, the allocation of oil and gas for trucks and inter-city buses will be done online.”

According to Oji, gasoil burning vehicles will receive their fuel rations depending on the distance they travel (allocating gasoil based on online documents) which will play an important role in gasoil smuggling prevention. 

 

Partnership between Chabahar and Gwadar

The Spokesperson and Additional Foreign Secretary of Pakistan has emphasized the enduring brotherly relations between Tehran and Islamabad and expressed Pakistan's readiness to expand bilateral cooperation with Iran, including the signing of an agreement to further the partnership between the ports of Chabahar in Iran and Gwadar in Pakistan.

During the weekly press briefing at the Ministry of Foreign Affairs of Pakistan, spokesperson Mumtaz Zahra addressed the recent 10-year agreement signed between India and Iran concerning Chabahar port on May 13, and the subsequent reaction from the United States. 

Zahra clarified that Pakistan refrains from commenting on Iran's agreements with other countries and does not engage in discussions about the positions of third parties.

The agreement between India and Iran aims to facilitate the long-term development of the Shahid Beheshti terminal at Chabahar port, with operations managed by a subsidiary of India Global Ports Limited (IGPL). The Indian firm plans to invest US$120 million in equipping the terminal, and India has also extended a credit line of US$250 million to improve infrastructure around Chabahar.

Following the agreement, the US issued a warning that entities involved in business deals with Iran could face sanctions. US State Department Deputy Spokesperson Vedant Patel highlighted the potential risks associated with engaging in commercial activities with Iran.

Zahra also underscored the significance of Iranian President Ebrahim Raisi's visit to Pakistan in April, describing it as a pivotal moment for bilateral cooperation. 

President Raisi's visit, accompanied by a high-ranking politico-economic delegation, included key meetings with Pakistani officials. 

During his two-day stay in Islamabad, President Raisi set an ambitious target of US$10 billion in bilateral trade, emphasizing the 900-kilometer shared border as a valuable opportunity for the development and prosperity of border areas.

 

 

Saudi Arabia supports internationally recognized Palestine State

Saudi Crown Prince and Prime Minister Mohammed bin Salman reaffirmed that Saudi Arabia supports the establishment of a Palestinian state and its international recognition as a full member of the United Nations.

The Gulf leaders attending the summit also included Qatar’s Emir Tamim bin Hamad Al-Thani, UAE’s Vice President and Prime Minister Sheikh Mohammed bin Rashed Al-Maktoum, and Kuwait’s Prime Minister Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah.

Addressing the opening session of the Arab League Summit in Manama on Thursday, the Crown Prince called on the international community to support ceasefire efforts and halt the ongoing Israeli aggression on Palestinian civilians in the Gaza Strip.

In his speech at the 33rd session of the Arab League Council at the summit level, Prince Mohammed bin Salman said that his country paid great attention to Arab issues, particularly the Palestine issue. Referring to Saudi Arabia’s hosting of the extraordinary Arab and Islamic Summit in Riyadh in November 2023 to discuss the Israeli aggression on Gaza.

Crown Prince said, “Saudi Arabia had hosted a meeting that condemned the Israeli aggression on Gaza under any pretext. Riyadh supported efforts to address the humanitarian conditions in Gaza,” he said. It is the first time the Arab leaders gathered after the Riyadh summit to discuss the dangerous Gaza escalation.

Saudi Arabia stresses the importance of maintaining the security of the Red Sea region, the Crown Prince said, while calling for stopping any acts that affect the safety of maritime navigation.

Prince Mohammed bin Salman also underlined that the Kingdom calls for resolving disputes through peaceful means.

Earlier, in his opening speech, King Hamad bin Isa Al-Khalifa of Bahrain called for an international conference for peace in the Middle East.

He also pledged his country’s support for the full recognition of a Palestinian state and the acceptance of its membership in the United States. Recently, the UN General Assembly overwhelmingly backed a Palestinian bid to become a full UN member.

The Gaza situation and the establishment of a Palestine State figure high on the agenda of the one-day Arab League summit.

Pakistan Stock Exchange index up 3.09%WoW

The pre-budget rally continued throughout the week ended May 17, 2024 with Pakistan Stock Exchange benchmark index closing at its historic high, as the bears failed to seize control at every turn and investor’s confidence remained high, driving the market to sustained gains. The benchmark index closed at 75,342 points on Friday with a gain of 2,257 points, up 3.09%WoW.

The market's bullish momentum is mainly attributed to recent talks with the IMF proceeding smoothly, without any hiccups.

Further, SPI weekly inflation is consistently on downward trend for the past five weeks, indicating a tapering down of CPI figures for the ongoing month.

Prices of petroleum prices, MS and HSD were decreased by PKR15.39 and PKR7.88 per liter, respectively, in the last fortnightly review.

Yields in the mid-week T-Bill auction also declined slightly.

Of significant importance, current account for April 2024 posted another surplus of US$491 million, lowering 10MFY24 deficit of mere US$202 million. With just two months left, FY24 CAD is expected to close substantially below the IMF’s forecast of US$3 billion.

Confirmation of the withdrawal of tax exemption from the FATA/PATA region has instilled overall positivity in the steel sector.

Alongside, additional revenue measure recommendations from IMF team comes on surface including proposals to increase withholding advance tax across automobile, real estate, and agricultural sectors.

Average trading volumes were down by 22.7%WoW to 554.50 million shares, as compared to 717.34 million shares traded in the earlier week.

Other major news flows during the week included; 1) during H1FY24, driven by agri sector, real GDP grew by 1.7% as per the central bank, 2) foreign investment peaked by 84% to 30-month high and 3) Ministry of Finance refused to extend subsidy on urea fertilizer due to financial snags.

Top performing sector were: Automobile parts & Accessories, Engineering, Synthetic & Rayon, Real Estate Investment Trust and Woolen, while Cable & Electrical goods, Close-end Mutual Fund, Transport, Tobacco and Power Generation & Distribution were amongst the worst performers.

Major selling was recorded by Banks/DFI with a net sell of US$9.85 million. Foreigners absorbed most of the selling with a net buy of US$14.94 million.

Top performing scrips of the week were: THALL, INIL, PSX, PKGP, and ISL, while top laggards included: PAEL, PTC, AGP, KEL, and NPL.

Market is anticipated to remain focused on FY25 budget related news in the near term. Overall, some profit taking can be expected with the index at its record high. However, with foreign buyers consistently purchasing, the rally is expected to continue amidst the market's attractive valuations.

The upcoming MPC meeting, scheduled just after the budget, will also be in the limelight.

Despite real interest rates being significantly positive, new taxation measures could pose a risk to the inflation outlook and possible start of monetary easing.

 

Aid trucks moving ashore via US military pier

Aid trucks began moving through a temporary US-built pier off the Gaza Strip on Friday, amid growing international pressure to get more supplies into the besieged coastal enclave, where hundreds of thousands face an acute humanitarian crisis.

The US Central Command said trucks carrying humanitarian assistance began moving ashore 0600 GMT.

The floating pier was pre-assembled by the US military at the Israeli port of Ashdod and moved into place this week on the shore of Gaza, which lacks port infrastructure of its own, however no US troops went ashore, Centcom said.

Aid arriving at the pier would be part of "an ongoing, multinational effort" and would involve commodities donated by a number of countries and humanitarian organisations, it said.

The supplies will be subject to Israeli security checks in Cyprus before arriving but will have to pass through additional Israeli checkpoints once it lands, US administration officials have said.

Aid groups, the United Nations and Israel's closest allies, have all demanded that it do more to get aid into Gaza, which has been largely laid to waste by the Israeli campaign launched last year.

A new wave of upheaval has created additional need, as hundreds of thousands of people already displaced by the war and sheltering in the southern Gaza city of Rafah have evacuated to areas in central Gaza in anticipation of an Israeli assault.

Israel has said it is stepping up efforts to get aid into Gaza, and the military said 365 aid trucks had entered through the Kerem Shalom and Erez crossing points on Thursday, carrying flour and fuel.

In addition, hundreds of tents were delivered, intended for people evacuated from Rafah to the Al-Mawasi area, which Israel has declared a humanitarian zone.

"The IDF will continue its efforts to allow humanitarian aid to enter the Gaza Strip by land, air, and sea, in accordance with international law," it said in a statement.

The Israeli military said new inspection routes had been opened up in the occupied West Bank through the Tarqumiyah and Beitunia crossing points.

However, supplies coming through the West Bank have been disrupted by attacks carried out by Israeli settlers protesting against sending aid into Gaza.

 

Arab League calls for immediate Israeli withdrawal from Gaza

The Arab League Summit called for immediate withdrawal of Israeli occupation forces from the Gaza Strip and deployment of international peacekeeping forces in the occupied Palestinian territories.

A joint communiqué called “Manama Declaration,” issued at the end of the one-day summit in Manama, Bahrain on Thursday, leaders of the 22-nation Arab League reiterated their firm position for a just and comprehensive peaceful settlement of the Palestinian issue and their support for an international peace conference on the Israeli-Palestinian conflict.

The 33rd summit was held under the chairmanship of Bahraini King Hamad bin Isa Al-Khalifa. Crown Prince and Prime Minister Mohammed bin Salman, headed the Saudi delegation to the summit.

The Arab leaders called on the international community to advance the peace process toward achieving a just peace based on the two-state solution. “We call for the deployment of international protection and peacekeeping forces affiliated with the United Nations in the occupied Palestinian territory until the two-state solution is implemented,” the statement said.

The summit issued a collective call to convene an international conference under the auspices of the United Nations to resolve the Palestinian issue based on the two-state solution, which ends the Israeli occupation of all occupied Arab territories.

The Arab leaders directed their foreign ministers to take immediate action to communicate with the Ministers of Foreign Affairs of the countries of the world to urge them to quickly recognize the State of Palestine.

The summit also reaffirmed the Arab League’s adherence to the freedom of maritime navigation in international waters in accordance with the rules of international law and the conventions of the law of the sea, and to guarantee freedom of navigation in the Red Sea, the Arabian Sea, the Gulf of Oman and the Arabian Gulf.

The leaders strongly condemned the threats to commercial shipping which threaten freedom of navigation, international trade and the interests of the countries and peoples of the world.

Highlighting Palestine as the core issue of all Arab issues, the leaders said, “We reaffirm the firm and permanent Arab position in support of the Palestinian issue, which remains a central issue and the foundation upon which peace and stability in the region can be achieved, and our categorical rejection of all attempts to displace the Palestinian people inside or outside their land, as a clear violation of international law, which we will collectively confront. We reaffirm our strong condemnation of all illegal Israeli measures and practices that target the Palestinian people and deprive them of their right to freedom, statehood, life and human dignity, as are guaranteed by international laws.”

“We reiterate our firm position and call for a just and comprehensive peaceful settlement of the Palestinian issue, and we support the call of Mahmoud Abbas, President of the State of Palestine, to convene an international peace conference and to take irreversible steps to implement the two-state solution in accordance with the Arab Peace Initiative and resolutions of international legitimacy to establish an independent and sovereign Palestinian state on the lines of June 04, 1967 with East Jerusalem as its capital, and to accept its membership in the United Nations as an independent and fully sovereign state in common with other countries in the world, and to ensure the restoration of all legitimate rights of the Palestinian people, in particular, the right to return and self-determination, empowerment and support.”

The summit called for an immediate Israeli military withdrawal from Rafah city in Gaza and an immediate and permanent ceasefire in the Gaza Strip. They also underlined the need to end all attempts of forced displacement and all forms of siege and for full and sustainable access to humanitarian aid.

“We reiterate our categorical rejection of any attempts to forcibly displace the Palestinian people from their land in the Gaza Strip and the West Bank, including East Jerusalem. We call for urgent action for an immediate and permanent ceasefire, an end to the aggression in the Gaza Strip, protection of civilians and the release of hostages and detainees.”

“We stress the sanctity of the occupied city of Jerusalem and its place among the monotheistic religions. We reject and condemn all Israeli attempts aimed at the Judaization of Jerusalem, changing its Arab, Islamic and Christian identity, or changing the historical and legal status quo in it and its holy sites, whilst also stressing the need to protect the holy places in Bethlehem and to not compromise its cultural identity and religious sanctity.”

The Arab leaders condemned in the strongest terms “the ongoing brutal Israeli aggression on Gaza and the crimes committed against the Palestinian people, as well as the unprecedented Israeli violations of international law and human rights law.”

According to the statement, these violations include targeting civilians and infrastructure, using siege and blockade tactics, attempting forced displacement, and killing and injuring tens of thousands of innocent Palestinians.

The Arab leaders slammed the extension of Israeli aggression to Rafah city stressing that the city has become a refuge for over a million displaced persons and that any military operations in this area would have devastating humanitarian consequences. They denounced the fact that Israel has seized control of the Palestinian side of the Rafah crossing to tighten the siege on Gaza and prevent humanitarian aid from crossing the border into the strip.

The statement also strongly condemned Israeli settlers’ targeting of humanitarian and media organizations in Gaza and their attacks on aid convoys, including the recent attacks on Jordanian aid convoys, along with the failure of Israeli authorities to fulfill their legal responsibility to protect these convoys.

The Arab leaders called for an immediate international investigation into these attacks, and they urged the international community and influential powers to transcend political calculations and double standards and to fulfil their fundamental and legal responsibilities by reigning in Israel’s aggressiveness and blatant violations of international law and humanitarian law.

The summit underlined the need for activating relevant international bodies to conduct independent, impartial investigations and hold accountable those responsible for the crimes committed against the Palestinian people since the start of the Israeli aggression on Gaza.

The Arab leaders renewed their call to the United Nations Security Council to grant full membership to Palestine State.

“We welcome the decision of the United Nations General Assembly at its meeting on May 10, 2024 on the request of the State of Palestine to obtain full membership of the United Nations, supported by 143 countries, and we call on the United Nations Security Council to reconsider its resolution issued in this regard in its session on April 18, 2024.”

The summit also called for unity among the Palestinians. “We call on all Palestinian factions to join together under the umbrella of the Palestine Liberation Organization (PLO), the sole legitimate representative of the Palestinian people, and to agree on a comprehensive national project and a unified strategic vision to focus efforts towards achieving the aspirations of the Palestinian people to achieve their legitimate rights and establish their independent national State on their national soil, on the basis of the two state solution, and in accordance with the resolutions of international legitimacy and established references.”

The leaders reiterated their call for a Middle East free of nuclear weapons and weapons of mass destruction, and support the right of states to possess peaceful nuclear energy.

“We urge them to fulfill their obligations and co-operate fully with the International Atomic Energy Agency and not to exceed the uranium enrichment rates required for the peaceful uses of nuclear energy,” the statement said.

The Summit also underlined the need for ending conflicts and establishing peace in Sudan, Syria, Yemen, Lebanon and Libya.

The Arab leaders expressed their full solidarity with Sudan in preserving its sovereignty, independence and territorial integrity and preserving the institutions of the Sudanese state.

They urged the Sudanese government and the Rapid Support Forces to engage seriously and effectively with initiatives aimed at settling the crisis.

The summit reaffirmed the need to end the Syrian crisis, in line with Security Council Resolution 2254, in a way that preserves Syria's security, sovereignty and territorial integrity, achieves the aspirations of its people, rids it of terrorism, and provides an environment for the dignified, safe and voluntary return of refugees.

The leaders rejected interference in Syria's internal affairs and any attempts to bring about demographic changes in it.

The Arab leaders renewed their firm support for the Presidential Leadership Council of Yemen, headed by Dr. Rashad Mohammed Al-Alimi. They pledged support for the efforts of the Yemeni government in its endeavor to achieve national reconciliation among all components of the Yemeni people, as well as Yemeni unity to achieve security and stability in the country.

 Courtesy: Saudi Gazette

Time to Revive OIC, Voice of Muslim Ummah

The Organization of Islamic Cooperation (OIC) is the second largest organization after the United Nations with a membership of 57 states spread over four continents. The Organization is the collective voice of the Muslim world. It endeavors to safeguard and protect the interests of the Muslim world in the spirit of promoting international peace and harmony among various people of the world.

The Organization was established upon a decision of the historical summit which took place in Rabat, Kingdom of Morocco on 12th Rajab 1389 Hijra, September 25, 1969 following the criminal arson of Al-Aqsa Mosque in occupied Jerusalem.

In 1970 the first ever meeting of Islamic Conference of Foreign Minister (ICFM) was held in Jeddah which decided to establish a permanent secretariat in Jeddah headed by the organization’s Secretary General. Hissein Brahim Taha is the 12th Secretary General who assumed the office in November 2021.

The first OIC Charter was adopted by the 3rd ICFM Session held in 1972. The Charter laid down the objectives and principles of the organization and fundamental purposes to strengthen the solidarity and cooperation among the Member States.

Over the last 40 years, the membership has grown from its founding members of 30 to 57 states. The Charter was amended to keep pace with the developments that have unraveled across the world. The present Charter of the OIC was adopted by the Eleventh Islamic Summit held in Dakar on 13-14 March 2008 to become the pillar of the OIC future Islamic action in line with the requirements of the 21st century.

The Organization has the singular honor to galvanize the Ummah into a unified body and have actively represented the Muslims by espousing all causes close to the hearts of over 1.5 billion Muslims of the world. The Organization has consultative and cooperative relations with the UN and other inter-governmental organizations to protect the vital interests of the Muslims and to work for the settlement of conflicts and disputes involving Member States. In safeguarding the true values of Islam and the Muslims, the organization has taken various steps to remove misperceptions and has strongly advocated elimination of discrimination against Muslims in all forms and manifestations.

The Member States of the OIC face many challenges in the 21st century and to address those challenges, the Third Extraordinary Session of the Islamic Summit held in Makkah in December 2005, laid down the blue print called the Ten-Year Program of Action. It successfully concluded with the close of 2015. A successor program for the next decade (2016-2025) has since then been adopted.

The new program OIC-2025 is anchored in the provisions of the OIC Charter and focuses on 18 priority areas with 107 goals.

The priority areas include issues of Peace and Security, Palestine and Al-Quds, Poverty Alleviation, Counter-terrorism, Investment and Finance, Food Security, Science and Technology, Climate Change and Sustainability, Moderation, Culture and Interfaith Harmony, Empowerment of Women, Joint Islamic Humanitarian Action, Human Rights and Good Governance, among others. 

Among the OIC’s key bodies: the Islamic Summit, the Council of Foreign Ministers (CFM), the General Secretariat, in addition to the Al-Quds Committee and three permanent committees concerned with science and technology, economy and trade, and information and culture.

There are also specialized organs under the banner of the OIC including the Islamic Development Bank and the Islamic Educational, Scientific and Cultural Organization, as well as subsidiary and affiliate organs that play a vital role in boosting cooperation in various fields among the OIC member states.

 

Big money for Trump by big US oil companies

A new analysis explores the possible payout if fossil fuel companies—who have already shown a willingness to put a price tag on the value of planet Earth—agree to the presumptive Republican nominee's election year "quid pro quo" deal.

The analysis reveals that the alleged US$ one billion election year "quid pro quo" offer that presumptive Republican nominee Donald Trump made to executives of major oil company's could, if they agreed to the deal, bank them a handsome profit.

According to the study by Friends of the Earth Action, first reported by The Guardian on Thursday, the "remarkably blunt and transactional" offer from Trump—in which US$ one billion in campaign funding put together by the nation's major oil companies would be repaid upon his election with massive deregulation of the oil and gas sector as well as tax relief for the industry—would yield a major windfall for those same corporations, including an estimated US$110 billion from the tax breaks alone.

Republicans in Congress last year confirmed that if Trump wins back the White House and the GOP resume control of both chambers, they will move aggressively to make the Republican's 2017 tax cuts, which largely benefited the wealthy and corporations, permanent. As some of the most profitable companies in the US, oil and gas companies stand to benefit greatly from that outcome.

In Florida last month, not long before his meeting with oil executives, Trump told a different crowd of "rich as hell" supporters gathered at Mar-a-Lago: "We're gonna give you tax cuts, we're gonna pay of our debt."

The problem with the second half of that claim is presented in a recent CBO report which found that another wave of tax cuts like those passed by the GOP in 2017 would skyrocket the national debt by an estimated US$4.6 trillion over the next ten years.

 

Earlier this week, House Democrats, led by Oversight Committee Ranking Member Rep. Jamie Raskin, launched a probe into the "quid pro quo" allegations between Trump and Big Oil, including letters to company executives believed to have been in attendance.

The blatant nature of Trump's corrupt intent, according to some political observers, is an opportunity that Democrats and champions of climate action and other progressive causes should not miss.

Writing about the circumstances in The New Yorker on Wednesday, journalist and veteran climate activist Bill McKibben argued that the stakes of this election are made plain in what Trump has offered the fossil fuel industry in exchange for its financial backing.

"Trump's reported billion-dollar offer to fossil-fuel executives shows that this is the key year to save the planet," McKibben writes.

"Given four years to finish the implementation of the Inflation Reduction Act, a second-term Biden Administration might finally be able to break the hold of fossil fuel political influence," his essay explains. "Another term of Trump, however—and with all that it means for undercutting global efforts at climate regulation, as well—offers an entirely plausible and entirely opposite outcome: climate chaos combined with continued fossil-fuel dependence."

What's true, according to McKibben, is that the fossil fuel industry "might well decide that defeating Biden in November is worth a lot of money." Citing recent profits by Chevron of US$21 billion and ExxonMobil's US$36 billion, he said the oil giants will "definitely give Trump something, and the return on investment on that donation—if successful—would be better than the luckiest well they ever hit."

Courtesy: Common Dreams

US military pier moving towards Gaza

According to Reuters the US military has started moving a pier towards the Gaza coast, a US official said on Wednesday, one of the last steps before the launch of a maritime port promised by President Joe Biden to speed the flow of humanitarian aid to Palestinians.

The US military opted to pre-assemble the maritime pier at Israeli port of Ashdod earlier this month due to weather conditions at the Gaza site where it will now be installed.

Officials hope the pier can be anchored to the coast of Gaza and aid can start flowing in the coming days.

"Earlier today, components of the temporary pier ... along with military vessels involved in its construction, began moving from the Port of Ashdod towards Gaza, where it will be anchored to the beach to assist in the delivery of international humanitarian aid," a US official said.

A British shipment of nearly 100 tons of aid has left Cyprus bound for a new temporary pier in Gaza, the British Foreign Office said on Wednesday.

Israel launched a relentless assault on Gaza, killing more than 35,000 Palestinians, local health authorities say, in a bombardment that has reduced much of the enclave to a wasteland and triggered UN warnings of looming famine.

Over time, the civilian toll from the Israeli offensive has triggered global protests and strained relations with Washington, Israel's biggest backer.

Israel has sought to demonstrate it is not blocking aid to Gaza. Although the US officials and aid groups say some progress has been made, they warn it is insufficient.

Dan Dieckhaus, the response director at the US Agency for International Development, told reporters earlier on Wednesday Israel still has more work to do to address concerns about the killing of aid workers in Gaza.

"Overall we are still not satisfied. And we won't be satisfied as long as we continue to see aid worker deaths and injuries," Dieckhaus said.

 

76th Anniversary of Nakba

The Organization of Islamic Cooperation (OIC) issued a statement on the 76th anniversary of the Nakba when Palestinians were violently expelled from their lands to make way for the formation of Israel.

The statement said the Nakba continues today through crimes of murder, destruction, forced displacement, and genocide as a result of the continuing Israeli aggression against the Palestinian people, Al Jazeera reported. 

“The OIC reaffirms the responsibility of the international community towards the necessity of putting an end to the Israeli occupation and activating international justice mechanisms to hold Israel, the occupying power, accountable for the crimes it has committed against humanity, and to rectify the historical injustice that continues to befall the Palestinian people,” the statement added. 

 

Donald Lu in Dhaka again

Visiting United States assistant secretary of state for South and Central Asian Affairs Donald Lu is scheduled to hold meetings with the ministries of foreign affairs and environment, forest and climate change.

During his visit, he would meet with government officials, civil society leaders, and other Bangladeshis to discuss US-Bangladesh cooperation, including addressing the climate crisis and deepening economic ties, according to a statement of the US embassy in Dhaka.

The US assistant secretary is scheduled to pay a courtesy call on foreign minister Hasan Mahmud and hold a meeting with foreign secretary Masud Bin Momen at the ministry.

Arriving in Dhaka on a three-day visit, Donald Lu on Tuesday had a meeting with civil society representatives at the residence of the US ambassador to Bangladesh Peter Haas in the afternoon before joining a dinner at the Gulshan residence of prime minister’s private industry and investment adviser Salman F Rahman, officials in Dhaka confirmed.

The Daily Star editor Mahfuz Anam, rights activist Nur Khan Liton, environmental activist Sohanur Rahman and labour leaders Kalpona Ahter and Babul Akter were present in the meeting with Lu at the ambassador’s residence.

Law minister Anisul Huq, state minister for commerce Ahsanul Islam, state minister for information and broadcasting Mohammad Ali Arafat, former state minister for foreign affairs Md Shahriar Alam and foreign secretary Masud Bin Momen, among others, attended the dinner hosted by Salman F Rahman.

During his previous visit in January 2023, he had a breakfast meeting with Salman at his residence.

Asked about specific reason why on the third visit to Bangladesh within 17 months the US assistant secretary was not holding meeting with any political party leaders unlike his previous two visits, the US state department deputy spokesperson Vedant Patel told a routine press briefing in Washington on May 13 that a lot of factors went into whom their government officials met with or not.

‘A lot of factors go into who our government officials meet with or not—the schedule, time of day, lots of other things. Assistant secretary Lu is on a swing through a number of South Asian countries—specifically India, Sri Lanka and Bangladesh. He is there to strengthen bilateral cooperation with each country and to demonstrate US support for a free, open, and prosperous Indo-Pacific region,’ he said,

‘In Bangladesh, he will meet with government officials, civil society leaders, and other Bangladeshis to talk about deepening our US-Bangladeshi cooperation, including deepening our economic ties in ways that we can collaborate further to address climate issues,’ Patel said, responding to a question whether the US had shifted its position on internal political matters of Bangladesh.

Foreign minister Hasan Mahmud said that the issues relating to the US visa policy for Bangladesh announced before the January 07 elections and Dhaka’s call for withdrawal of restrictions on the Rapid Action Battalion might come up during the visit of Donald Lu.

He said that Bangladesh had a very good relation with the US, and president Joe Biden, in a message to prime minister Sheikh Hasina conveyed on her assumption of office for the fourth consecutive term in January, expressed his willingness to take the relation to a new height.

In September 2023, the US Department of State announced that it had started imposing visa restrictions on individuals involved in undermining the democratic election process in Bangladesh.

The announcement came at a time when the Election Commission of Bangladesh started making preparations for the January 07 election.

In December 2021, the US imposed sanctions against seven former and serving officials of the RAB and the force itself over allegations of rights abuse.

Dhaka on several occasions called upon the US authorities for the withdrawal of the sanctions.

 

 

 

Abandon Biden

As public anger grows over Israel’s assault on the Palestinian people, US government officials and mainstream media are desperately trying to control the narrative.

Speaking about the student protests in New York, CNN anchor Kasie Hunt said late last month: “Some pretty stunning images coming to us overnight … We also are just learning at this hour that banners have been hung from the hall. They read ‘Hind’s Hall’ and ‘Intifada’. Hind is a reference to a woman who was killed in Gaza. Intifada, of course, a reference to uprising, violent struggles the Palestinians has had over the years against Israel.”

Where does one even begin? Someone purporting to be a journalist apparently won’t even pretend to make an effort to check on a story that went around the world, when a five-year-old Palestinian girl, Hind Rajab, called out from a besieged car where several family members had just been killed. 

As the young girl waited for help to arrive, the two Palestinian Red Crescent medics coming to her aid were also killed by Israeli fire. Hind’s last words to emergency service workers over the phone, before a volley of bullets was heard, were: “The tank is next to us. We are in the car and next to the tank.”

CNN later tweeted saying that Hunt “misspoke and corrected herself on the show immediately after”.

As for intifada, the iconic images of the First Intifada – launched in December 1987 after an Israeli vehicle hit and killed four Palestinians in Gaza’s Jabalia refugee camp – were those of boys and young men armed with rocks and slingshots, facing down Israeli tanks, snipers and bulldozers. 

The Second Intifada, which began in September 2000, was accompanied by another iconic image: that of a father, Jamal al-Durrah, clutching his 12-year-old son in an attempt to shield him from Israeli gunfire. The boy was hit and died soon afterwards.

More than 10,000 children were wounded during the Second Intifada, and nearly 5,000 Palestinians of all ages were killed. Durrah has lost more family members since Israel declared war on Gaza last October. 

Apparently “violence” is only something committed against Israel, while Palestinians mostly “die” rather than being “killed”, according to the vagaries of western mainstream media syntax. 

On that same CNN segment, New Yorker journalist Evan Osnos told Hunt, “There was an interesting moment last week. You were beginning to see university administrators come to an idea, a principle. You saw the president of Princeton say the goal should be the maximum expression without intimidation or obstruction … This is something else, because students, Jewish students on campus at Columbia, are going to wake up this morning and say this does not satisfy that standard.” 

Even though many campus protesters are themselves Jewish, these comments suggest that “Jewish students” are only those to whom harm is caused by pro-Palestinian demonstrators – not those who are outraged by Zionist manipulation and the instrumentalization of their very identity and history in order to carry out a genocide.

This is not even to mention the anger and disappointment that many people feel at seeing university presidents and government officials calling on fully armed police to protect the policies of a foreign government, rather than the rights of US citizens.

Much depends on whether Israel can be stopped. It is the US that holds almost all the leverage

Such grotesque twisting of reality does not take place in a vacuum, but rather infects every nook and cranny of US propaganda and mainstream rhetoric, imagery, culture and institutional norms, as more and more aspects of “public life” face a relentless assault by corporate and governmental power. 

The irony is that as this has taken place, and as the truly ignominious Antisemitism Awareness Act has been passed by the US House of Representatives to put another nail in the coffin of the First Amendment, more Americans than ever are aware of the atrocities being committed against Palestinians in Gaza and the occupied West Bank. 

Perhaps more importantly, they understand that these atrocities are paid for by US tax dollars, and fully supported by a political class that has given up any pretence of representing its constituents.

The desperate attempt to expand the definition of “antisemitism” in the US and Europe, while imposing new legal codes to prevent scrutiny of Israel’s actions, is a last-ditch effort by western powers and their representatives to maintain control over the narrative. But as they have abandoned their constituencies, their constituencies are abandoning them.

As the sitting US president mumbles a warning for Israel not to invade Haifa (instead of Rafah), or goes on about an uncle who was allegedly eaten by cannibals during the Second World War, an increasing portion of the US ruling class – from university presidents to mainstream journalists – find themselves in the position that Joe Biden was in as a candidate: hunkered down in their bunkers, as public contempt rises.

This disappearance of almost any stable reference point in the public sphere is truly a precarious moment in the life of the nation, and seems like a harbinger of some kind of dystopian totalitarianism – many aspects of which are already present. 

While all state and corporate power remains focused on further fragmenting and demonizing the populace, keeping everyone at each other’s throats and inventing new classes of victims, we can only hope that some glimmer of human commonality will finally emerge, before this century is plunged into a catastrophic spiral of killing and destruction like that of the previous century. 

Much depends on whether Israel can be stopped. It is the US that holds almost all the leverage, and this is where more pressure must be placed. 

Courtesy: Information Clearing House

Saudi-British trade surpasses US$21 billion

Prime Minister Rishi Sunak revealed that bilateral trade between Britain and Saudi Arabia has exceeded 17 billion pounds or US$21 billion.

 “Today we are launching the next phase of the deep and growing partnership between Britain and Saudi Arabia. Over the next two days, we will hear from Saudi leaders and companies about how to make Vision 2030 a reality, and the tremendous opportunities it presents to all of us,” he said while addressing, through a video conference, the opening session of the GREAT Futures Initiative Conference, which kicked off at the King Abdullah Financial District in Riyadh on Tuesday.

The two-day conference is one of the initiatives of the Saudi-British Strategic Partnership Council, chaired by Saudi Crown Prince and Prime Minister Mohammed bin Salman and Rishi Sunak. 

“I know British businesses here will relish the opportunity to showcase the best our country has to offer,” the prime minister said.

Sunak revealed that nearly 25,000 Britons live in Saudi Arabia at present.

“Since the launch of the new electronic visa exemption regime in June 2022, Britain has welcomed more than 400,000 Saudis. The United Kingdom excels globally in the fields of technology and innovation, and thousands of Saudis have graduated from British universities in finance, fashion, luxury product sales, and others,” he told the conference participants.

British Deputy Prime Minister Oliver Dowden is among several British and Saudi ministers, as well as Saudi and international experts and specialists who are addressing the conference. As many as 800 participants from the public and private sectors of both countries are taking part in the event.

In his speech at the conference, Dowden said that the pace of change in Saudi Arabia in terms of the economic, social and cultural aspects is exceptional.

“We do not just want to support the Saudi Vision 2030, but we want to be part of it.” Referring to the conference, he said the Kingdom’s hosting of such an event is a wonderful example and shows British talent to the world: “We participate in leading the economic and social elements of our relations as a means of work, execution and transformation.”

Dowden said that this would significantly increase mutual prosperity and demonstrate that a modern, forward-looking partnership can meet the challenges of the 21st century.

Dowden noted that he was accompanied by a giant delegation to this event that included more than 450 people, which is the largest British trade mission in a decade and the largest ever from Britain to Saudi Arabia.

He pointed out that the talented lawyers, consultants, financial experts, architects and designers in Britain can help turn this vision into a reality, and highlighted that their work are meant to strengthen the presence of British companies in the Kingdom, and to accelerate the vital trade ties that make the mutual relations between the two countries of great value.

According to the British deputy prime minister, Saudi Arabia, through its mega projects and cities, is paving the way for how societies can harness innovative technologies to achieve amazing change.

“The partnership between the two kingdoms is a two-way street, as the two countries open their markets to each other. So that investments, tourism exports, and cooperation can flow in both directions,” he added.

The conference is aimed to enhance economic relations between the two countries in various promising sectors as well as to develop mutual trade and investment. The conference will feature 47 sessions and workshops with 127 speakers from both public and private sectors, covering 13 promising economic sectors, including tourism, culture, education, health, sports, investment, trade, and financial services, in addition to signing six agreements in the fields of education and training, tourism, and real estate development.

Earlier, Dowden said that the conference is an important opportunity to build partnerships between the business sectors of both countries, keeping pace with the future, innovation, and creativity. It also allows British companies to familiarize themselves with relevant business regulations, incentives, and advantages for conducting business in Saudi Arabia.

On his part, Minister of Commerce Dr. Majed Al-Qasabi stressed that the conference is an opportunity to enhance cooperation and economic partnership in 13 vital and promising sectors. He also highlighted that it paves the way for extensive partnerships focusing on innovation and creativity in sectors of mutual interest.

Iran to launch sea passenger lines to Dubai and Oman

The secretary of Iran’s Supreme Council of Free Industrial-Trade and Special Economic Zones said sea passenger lines are planned to be launched from Qeshm and Kish islands to the Sultanate of Oman and Dubai in the United Arab Emirates (UAE).

Hojatollah Abdolmaleki pointed to the development of sea tourism and transportation of sea passengers in the free zones of the country and said that in addition to developing the domestic sea lines, there are plans to launch recreational and passenger lines from Kish and Qeshm islands to the destinations of Dubai and Oman.

The development of maritime tourism and transportation of sea passengers in the free zones of the country have been put on the agenda of the council, Abdolmaleki emphasized.

He stressed that Qeshm and Kish islands have high capacities for launching maritime lines to Persian Gulf littoral states.

Given the keenness of investors in the private sector, the country would witness the commissioning of these international maritime lines which will boost maritime tourism in the region, he underscored.

Abdolmaleki said more than 100 investment packages, valued at €1.0 billion, have been presented to the investors of the private sector.

Emphasizing that the free zones have become a safe place for preventing capital flight from the country, the adviser to the Iranian president stated that the presence of both domestic and foreign tourists in the free zones has contributed to the economic development of the country.

 

State of Pakistan Economy

Pakistan’s macroeconomic conditions improved, according to the State of Pakistan’s Economy Report for the H1FY24 released today by the State Bank of Pakistan (SBP). The Report contains the analysis prepared on data outturns for the July-December FY24. According to the Report, the real economic activities moderately recovered against the contraction last year, while Stand-By Arrangement (SBA) with the IMF helped reduce stress on external account.

Meanwhile, current account deficit narrowed considerably, amid continued contractionary monetary and fiscal policies, better agriculture produce and ease in global commodity prices. On fiscal side, primary balance posted a higher surplus during H1FY24 compared to H1FY23 on account of strong growth in both tax and non-tax revenues that outpaced increase in non-interest expenditure. Despite restrained domestic demand, inflationary pressures remained persistent at elevated levels, the Report noted.

The real GDP, driven by agriculture sector, grew by 1.7 percent in H1FY24. The recovery in agriculture sector also supported some of the agro-based industries. In addition, withdrawal of import prioritization measures improved availability of raw materials for industry, the report said. The approval of the IMF’s SBA eased external borrowing constraints, leading to an increase in financial inflows during H1FY24. In addition, lower scheduled external loan repayments compared to H1-FY23 and significant reduction in current account deficit, on account of decline in imports as well as upsurge in exports supported the build-up in SBP’s FX reserves.

Despite subdued domestic demand and decline in global commodity prices, states the Report, a combination of lingering structural issues, PKR depreciation compared to H1-FY23, increase in government spending, and supply shocks kept the National CPI (NCPI) inflation at elevated levels. A number of factors including higher input costs, increase in indirect taxes, and implementation of upward revision in minimum wage announced in the FY24 budget, alongside the second-round effects of administered prices of food and energy items, were responsible for the persistence in the core inflation during H1-FY24.

The Report highlights that despite some improvement in macroeconomic indicators, economy continues to grapple with the structural bottlenecks. The major issues include limited savings, low investments in physical and human capital, weak productivity, stagnant exports, narrow tax base, and inefficiencies in PSEs. Additionally, political uncertainty exacerbates the situation through inconsistency in economic policies, weak governance and public administration, hindering investment and thus economic development. These underscore the need for policy reforms to ensure sustainable development over the medium to long-term.

The Report includes a Special Chapter that analyzes long-term trends in inflation and its determinants in Pakistan. The chapter also sheds light on policy and structural factors influencing inflation including monetary policy framework, fiscal and debt policy, trade openness, agricultural efficiency, productivity and demographic trends. The chapter concludes that reducing political and policy uncertainties and more fiscal consolidation can help bring inflation down at a faster pace in the short run. The chapter also emphasizes on addressing longstanding structural issues to achieve low and stable inflation over the medium term, without overburdening monetary policy and the consequent high economic costs.

The Report expects continuation of modest economic recovery in the second half of FY24. In the backdrop of improvements in business confidence, high frequency demand indicators since November 2023, and prospects for a good wheat production during FY24, the SBP projects real GDP growth in the range of 2 – 3 percent for FY24. The NCPI inflation, on the other hand, is expected to remain downward trajectory despite uncertainties persisting in both domestic economy and international commodity market.

Keeping these developments in view, the SBP projects the average NCPI inflation in the range of 23 – 25 percent for FY24, lower than 29.2 percent in FY23, and is expected to come down to 5 – 7 percent range by September 2025. On external account, the CAD is projected to remain lower than earlier estimates, amid slightly improved global outlook and domestic growth prospects to boost foreign exchange earnings from exports and remittances.

The SBP projects the current account deficit in the range of 0.5 – 1.5 percent of GDP for FY24. This macroeconomic outlook remains susceptible to escalating geopolitical tensions, unfavorable weather conditions, adverse movements in global oil prices, and subsequent external account pressures. Further adjustments in energy prices and fiscal consolidation -warranted for slowing the pace of debt accumulation - may also weigh on economic activities and inflation.

Renewable diesel glut hits US refiners

A rush by US fuel makers to recalibrate their plants to produce renewable diesel has created a supply glut for low-emissions biofuels, hammering profit margins for refiners and threatening to impede a young industry.

Turmoil in the biomass-based diesel sector, an umbrella term for renewable diesel and biodiesel, could become a roadblock to future investments in biofuels, the US Energy Information Administration (EIA) said this year. That could potentially stall the transition away from traditional fossil fuels.

Some producers of these biofuels have already shuttered plants this year, and industry participants say more are set to go out of business before the year's end.

US renewable diesel production capacity nearly quadrupled following the coronavirus pandemic from just 791 million gallons a year in 2021 to 3 billion gallons by 2023, as refiners sought ways to survive the transition away from their petroleum-based products.

Combined with biodiesel, total US output capacity for biomass-based diesel surpassed 5 billion gallons by 2023.

Renewable diesel is a complete substitute for diesel, whereas biodiesel can only be used as a blend, making the former more attractive for producers.

Both compete for the same feedstock - biomass, such as used cooking oil and vegetable oils - and are more expensive to produce than petroleum-based diesel, so their demand relies almost entirely on governmental blending mandates and tax credits.

But blending targets for biomass-based diesel, set under the US Environmental Protection Agency's Renewable Fuel Standards (RFS) program, generate combined demand of just up to 4.5 billion gallons a year through 2025, according to Scott Irwin, a professor at the University of Illinois.

That is already below existing domestic production, before factoring in imports. By 2025, Irwin estimates US renewable diesel and biodiesel output capacity will top 7 billion gallons.

"The crux of the matter is that market participants convinced themselves that 'if we build it, the EPA will mandate it'. That didn't happen," Irwin said.

The oversupply has cut prices of Renewable Identification Numbers (RINs) - the credits refiners earn under RFS for producing or importing biofuels - to the lowest in five years. D4 RINs tied to biodiesel and renewable diesel fell below 40 cents a gallon in February for the first time since 2019.