Wednesday, 23 February 2022

China criticizes sanctions against Russia

China on Wednesday criticized the expansion of economic sanctions against Russia, saying that penalties were unlikely to solve the Ukraine crisis, on the contrary these can hurt common man as well as the interests of Beijing, The New York Times reported.

“The position of the Chinese government is that we believe that sanctions have never been a fundamental and effective way to solve problems, and China always opposes any illegal unilateral sanctions,” Hua Chunying, a spokeswoman for China’s foreign ministry, said at a regular press briefing on Wednesday.

Member states of the European Union have given their green light, via their envoys in Brussels, to the first package of sanctions on Russia, an EU diplomat said.

The sanctions still need formal approval by the foreign ministers and will enter into force once these are published in the EU's official journal, a step expected later on Wednesday.

Ukraine on Wednesday urged the West to impose more sanctions on Russia that target the economy and the inner circle around President Vladimir Putin.

US Deputy Treasury Secretary Wally Adeyemo said on Wednesday that the US is prepared to respond to further aggression by withholding technology and resources.

"We're going to cut him off from Western technology that's critical to advancing the military, cut him off from Western financial resources that will be critical for feeding his economy and also to enriching himself," Adeyemo said in an interview with CNBC.

In a phone call, Erdogan told Putin that military conflict in the region would not benefit anyone and repeated his offer to help achieve a solution, his office said. Erdogan also said he valued Putin's close cooperation on regional issues and wanted to continue this.

"President Erdogan, who renewed his call for the matter to be resolved through dialog, stated that it was important to bring diplomacy to the forefront, and that Turkey continued its constructive stance in NATO as well."

Earlier, Erdogan was cited by media as saying Turkey cannot abandon ties with Ukraine or Russia.

"First decisive steps were taken yesterday, and we are grateful for them," Ukraine Foreign Minister Dmytro Kuleba said in a tweet. "Now the pressure needs to step up to stop Putin. Hit his economy and cronies. Hit more. Hit hard. Hit now."

Ukraine's parliament on Wednesday approved imposing sanctions on 351 Russians, including lawmakers who supported the recognition of the independence of separatist-controlled territories and the use of Russian troops in eastern Ukraine.

The sanctions restrict almost all possible types of activities, in particular, a ban on entry into Ukraine, prohibiting access to assets, capital, property, licenses for business. The Security Council was due to impose the sanctions after the vote.

One of Europe's worst security crises in decades was unfolding after Russia recognized two areas of eastern Ukraine as independent. Ukraine accused Russia of wrecking peace talks on ending an eight-year-old conflict in the region.

The sanctions began to be imposed against Russia on Tuesday after Putin ordered troops into eastern Ukraine and threatened to go further if Moscow launched an all-out invasion of its neighbor. 




 

Tuesday, 22 February 2022

Takeaways from Putin’s Ukraine speech

Russian President Vladimir Putin gave a long and important speech on February 21 as tensions with the United States over Ukraine reached new heights. While the media focused on certain aspects of the speech, particularly Russia recognizing two separatist areas in Ukraine as sovereign independent states, there is much more there to unpack.

Let’s begin at the end. “I consider it necessary to make a long-overdue decision to immediately recognize the independence and sovereignty of the Donetsk People's Republic [DPR] and the Luhansk People's Republic [LPR],” he said. These are two areas in eastern Ukraine that declared independence in April of 2014. Their decision was clearly motivated by a sense they had Moscow’s backing. They are in one of several small areas similar to this that have sought to become their own states with Russian backing.

Moscow usually does this as a way to keep its hands on the scales inside a former Soviet country. In Georgia, there is South Ossetia and Abkhazia, which sought independence in the 1990s – and there are other areas, such as Transnistria near Moldova.  

Putin’s decision was made after years of trying to manage a conflict in Ukraine. He claims the necessity of recognition now, apparently to do away with the pretense that these are just separatist areas. Russia cares about international laws and norms; even if it exploits them for its own needs, it cares to have an appearance of doing things by the book.

That is why Russia’s Tass reported, “Putin later ordered the Russian Foreign Ministry to establish diplomatic relations with the DPR and LPR and the Defense Ministry to maintain peace in the republics. According to one of the presidential decrees, the Defense Ministry was ordered to make sure that the Russian Armed Forces maintain peace in the Donetsk People’s Republic until a treaty on friendship, cooperation and mutual assistance is concluded. The Russian Defense Ministry received similar instructions in a decree recognizing the LPR.”

The point here is that Russia is exploiting the situation that it helped create in 2014 by now creating a legal fiction for sending troops into these areas. This will lead to the peacekeeping troops being on the line of potential contact with a Ukrainian army that Moscow says has sent 120,000 troops to the borders of these breakaway regions. Ukraine has called the operations against the separatists an anti-terror campaign.  

Let us look at how Putin has presented this to understand why it might matter far beyond Ukraine.

He began his 8,000-word speech by saying “the topic of my speech is the events in Ukraine and why it is so important for us, for Russia. Of course, my appeal is also addressed to our compatriots in Ukraine.” He said that the situation in the Donbas, where the breakaway areas are, has reached a critical stage.

For Russia, the area of Ukraine is what was once called the near abroad, a kind of buffer between Russia and the West. “Let me emphasize once again that Ukraine for us is not just a neighboring country. It is an integral part of our own history, culture, spiritual space. These are our comrades, relatives, among whom are not only colleagues, friends, former colleagues, but also relatives, people connected with us by blood, family ties,” the Russian president said.

Putin looked to history to justify this. He said, “Inhabitants of the southwestern historical Old Russian lands called themselves Russian and Orthodox. So it was until the 17th century, when part of these territories was reunited with the Russian state, and after.”

He noted, “The 18th century, the lands of the Black Sea region, annexed to Russia as a result of wars with the Ottoman Empire, were called Novorossiya. Now they are trying to obliviate these milestones of history, as well as the names of state military figures of the Russian Empire, without whose work modern Ukraine would not have many large cities and even the very exit to the Black Sea.”

Putin claimed, “Modern Ukraine was entirely and completely created by Russia: more precisely, Bolshevik, communist Russia.” He accuses the Soviets of actually reducing Russia’s control of Ukraine by separating parts of this area and creating the Ukraine Soviet Socialist Republic. Indeed, Crimea was eventually given to Ukraine under this process. At the same time, Ukraine was brutally treated by Stalin, and millions starved. Later, after the Second World War and the Holocaust, Ukrainian resistance against the Soviets continued for years.  

Ukraine did indeed change during this period. Areas that were once more Polish and more Jewish, such as Lvov, became more Ukrainian. Other areas are Russian-speaking. That is the nature of history and of war and tragedy: countries and places change.

Putin puts out this history by saying “Stalin already annexed to the USSR and transferred to Ukraine some lands that previously belonged to Poland, Romania and Hungary. At the same time, as a kind of compensation, Stalin endowed Poland with part of the original German territories, and in 1954 Khrushchev for some reason took away Crimea from Russia and also presented it to Ukraine.”

The president wants to redress some of this history. In his analysis, he is correct in noting that much of the world’s borders today resemble things done in 1945 or in the period up to 1960s. That was an era when European powers redrew the world’s borders. After doing so, many of them have said international law prevents any borders from being changed. This is largely a colonial-era illusion.

The same colonial era has created conflicts all over Africa and Asia and is responsible for the Israel-Palestinian conflict. It was the British who created partition and it was the UN that created the impossible borders presented to Israel in 1948. It is a colonial-era design that placed the Golan in Syria and conjured up an international Jerusalem, which has led countries not to move their embassies to the Israeli capital.

Be that as it may, Putin’s argument about Ukraine is that Russia is reaching back to what was done in 1917 and 1922 for its rights to do things there. He mentions Stalin, “People's Commissar for Nationalities, proposed building the country on the principles of autonomization that is giving the republics – future administrative-territorial units – broad powers when they join a single state.”

What he is presenting is a blueprint for breakaway or autonomous regions to do as they please. “Why was it necessary to satisfy any, unlimitedly growing nationalist ambitions on the outskirts of the former empire?” he asks, noting attempts regarding arbitrarily formed areas and administrative units, “Huge territories that often had nothing to do with them at all…to convey them together with the population of historical Russia to Ukraine.” He’s arguing that what was done arbitrarily in the 1920s, can now be undone.  

Of course, this opens up a big question about why other things that were done in the 1920s cannot be undone. Why should the Golan be part of Syria, a decision made at that time, which put the Golan under French and thus Syrian control? Why is Mosul part of Iraq and not Turkey? Why isn’t there an independent Kurdish state? Why is Hatay province part of Turkey and not Syria? We could go on and on and see how many areas in the Middle East were arbitrarily given to one country and not the other by colonial administrators, much as was done in Russia in the 1920s.  

What Putin argues is that the Soviets made a mistake in the 1920s. “At first glance, this is generally incomprehensible; some kind of madness. But this is only at first glance. There is an explanation,” he argues. He points out that the Soviets sought to remain in power by giving in to demands of various nationalities within the Soviet empire: Give them something for the great Soviet Union. Putin argues that the early Soviet decision was a mistake and this became obvious after 1991 with the wars and breakup of the USSR. 

Russian President suggests we speak about the events of the past with honesty. “This is a historical fact. Actually, as I have already said, as a result of the Bolshevik policy, Soviet Ukraine arose.” He accuses Ukraine of being an entity created by Lenin. “This is fully confirmed by archival documents, including Lenin's harsh directives on the Donbas, which was literally squeezed into Ukraine.”

He says it is ironic that modern-day Ukraine has taken down Lenin’s statue, hinting with typical Putin humor that they might have kept Lenin since in his view he created modern Ukraine. “We are ready to show you what real decommunization means for Ukraine.”  

Putin next takes listeners through a tour of Soviet history and discusses how the Soviet Republics had no real power. “In practice, a strictly centralized, absolutely unitary state was created... under the conditions of a totalitarian regime, everything worked anyway, and outwardly it looked beautiful, attractive and even super-democratic.”

Now Putin claims that the “bacillus of nationalist ambitions has not disappeared.” This term, bacillus, is likely borrowed on purpose from Winston Churchill, who said that regarding the sealed train that took Lenin and his Bolsheviks back to Russia from Switzerland in 1917 was sent like a “plague bacillus.” Putin’s point apparently is that Lenin helped appease this nationalism, creating the problems Russia now faces in Ukraine.  

Nationalism became like a mine waiting to explode, he claims. “In the mid-1980s, against the backdrop of growing socio-economic problems, the obvious crisis of the planned economy, the national question – the essence of which was not some expectations and unfulfilled aspirations of the peoples of the Union, but primarily the growing appetites of local elites – became more and more aggravated.” This led to 1989 and the decision by the party elites that "the Union Republics have all the rights corresponding to their status as sovereign socialist states."

Let’s recall where Putin was in 1989. He was in East Germany in Dresden, watching Communism collapse. A KGP officer, he spoke German, and tried to defuse tensions. He says that while the Soviets had harmed Russia and its people through “robbery” of lands provided to other states, “the people recognized the new geopolitical realities that arose after the collapse of the USSR; recognized the new independent states… our country provided such support with respect for the dignity and sovereignty of Ukraine.”

Putin argues that Ukraine did not deal fairly with Russia in the 1990s and began to move towards the West. “I will add that Kyiv tried to use the dialogue with Russia as a pretext for bargaining with the West, blackmailed it with rapprochement with Moscow, knocking out preferences for itself: saying that otherwise, Russian influence on Ukraine will grow.”

He claims “Ukrainian society faced the rise of extreme nationalism, which quickly took the form of aggressive Russophobia and neo-Nazism. Hence the participation of Ukrainian nationalists and neo-Nazis in terrorist gangs in the North Caucasus, and the increasingly louder territorial claims against Russia.” This is important because Putin came to power after Russia suffered failure in the Balkans when NATO bombed Serbia and after Russian setbacks in Chechnya.

From Putin’s point of view, Ukraine then became a tool in the hand of the West. In this complex history he argues that the West works with “oligarchs” in Ukraine. Putin meanwhile was busy in the early 2000s imprisoning or driving into exile the oligarchs who arose in 1990s Russia. “A stable statehood in Ukraine has not developed, and political, electoral procedures serve only as a cover, a screen for the redistribution of power and property between various oligarchic clans,” he says.

He then presents a picture of Ukraine as akin to the French revolution, swept over by “radicals” and Ukraine cities becoming victims of “pogroms of violence.” He says “it is impossible without a shudder to remember the terrible tragedy in Odessa, where participants in a peaceful protest were brutally murdered.”

Pro-Russia Ukraine president Viktor Yanukovych was driven from power in a 2014 coup, he said, which is in fact the Maidan protests. Putin then gives a laundry list of failures in Ukraine, arguing that the country has not supported its people. “Tens and hundreds of thousands of jobs have been lost.”  

Russia's president also delves into an issue that US President Joe Biden is likely familiar with from the Obama years. “There is simply no independent court in Ukraine. At the request of the West, the Kyiv authorities gave representatives of international organizations the pre-emptive right to select members of the highest judicial bodies - the Council of Justice and the Qualification Commission of Judges.” Biden was deeply involved in Ukraine policy under Obama and assured Ukraine that the US would back it despite initial attempts to “reset” relations with Russia.

Putin mentions the US Embassy’s efforts against corruption. “All this is done under a plausible pretext to increase the effectiveness of the fight against corruption. Okay, but where are the results? Corruption has blossomed as luxuriantly, and blossoms [now] more than ever.”

He then accuses Ukraine’s current government, which he sees as a government that was the result of a coup in 2014, as perpetuating corruption and being anti-Russian. He accuses it of persecuting the Russian language and Orthodox Church. He argues that Russia’s decision to annex Crimea from Ukraine was done to support the inhabitants of the peninsula. Then he accuses Ukraine of enacting a new military strategy against Russia. “The strategy proposes the organization in the Russian Crimea and on the territory of Donbas, in fact, of a terrorist underground.”

The real story of Russia’s claims are now laid out as Putin goes through a long list of weapons he is concerned will be used by Ukraine. He discusses Tochka-U operational-tactical missiles which have a range of 100 km, NATO presence in Ukraine, that “regular joint exercises have a clear anti-Russian focus,” airfields, and that “the airspace of Ukraine is open for flights by US strategic and reconnaissance aircraft, unmanned aerial vehicles that are used to monitor the territory of Russia, and the possibility of missiles and hypersonic missiles being deployed in Ukraine."

Russia also objects to Kyiv joining NATO. He claims that while Moscow was open to working with the treaty organization, it has rapidly expanded. “The authorities of some Eastern European countries, trading in Russophobia, brought their complexes and stereotypes about the Russian threat to the Alliance, and insisted on building up collective defense potentials, which should be deployed primarily against Russia. Moreover, this happened in the 1990s and early 2000s, when, thanks to openness and our goodwill, relations between Russia and the West were at a high level.”

Putin even claims he spoke to former President Bill Clinton about Russia joining NATO. “I won’t reveal all the details of that conversation, but the reaction to my question looked, let’s say, very restrained, and how the Americans really reacted to this opportunity can actually be seen in their practical steps towards our country.”

Russia doesn’t want the NATO expansion trend to continue. Putin says there were already five waves of NATO expansion, most recently with Albania and Croatia; in 2017 Montenegro; in 2020 North Macedonia…. As a result, the Alliance and its military infrastructure came directly to the borders of Russia. This became one of the key causes of the European security crisis.”

So for Russia, this is apparently an existential crisis. “Many Ukrainian airfields are located close to our borders. NATO tactical aircraft stationed here, including carriers of high-precision weapons, will be able to hit our territory to the depth of the Volgograd-Kazan-Samara-Astrakhan line. The deployment of radar reconnaissance assets on the territory of Ukraine will allow NATO to tightly control the airspace of Russia right up to the Urals.”

Putin understands US national security strategy and defense documents warn of “near-peer” rivalry with Russia and he knows that Washington sought to pivot from counter-terrorism to challenging Moscow. Once the US left Afghanistan in the summer of 2021, it was no surprise that a Ukraine crisis followed.

For Putin this all adds up to assertions that the West has ignored his proposals and demands. “There is only one goal of the West – to restrain the development of Russia. And they will do it, as they did before, even without any formal pretext at all…. Russia has every right to take retaliatory measures to ensure its own security: That is exactly what we will do.”

Putin says, “International documents expressly state the principle of equal and indivisible security, which, as is well known, includes obligations not to strengthen one's security at the expense of the security of other states.” Now he wants to test this and recognize parts of Ukraine as independent states in order to move forces into these new buffer states.

The end goal will be to see if the US will match this move with its own chess-like deployment. This could provide a casus belli for actual conflict. Putin clearly thinks he must move now to prevent whatever might come in the years to come.  



Lithium price rises to record high level

According to a report by South China Morning Post, lithium metal price in the Chinese market reached US$315,000/ton; just days after Argentinean President Alberto Fernandez signed his country up for China’s Belt and Road Initiative during a high-profile trip to Beijing this month.

The spot price has risen to this level for the first time – more than four times what it cost a year ago.

The two countries happen to be the world’s major players in the supply chain of the metal – an essential material used in electric vehicle (EV) batteries.

Argentina is located in a region with the highest concentrations of the mineral – South America’s so-called Lithium Triangle, which contains more than half of the world’s reserves.

Chinese companies are the biggest buyers and investors of lithium mines around the globe and refine two-thirds of the world’s lithium.

A vast deposit of one of the most highly coveted metals on Earth could potentially be located in the region around Mount Everest, according to Chinese scientists.

The researchers’ discovery of lithium near the world’s tallest mountain comes as global demand for the metal has been skyrocketing, sending prices to record levels and further fuelling geopolitical competition for strategic resources.

The ore deposit may contain as much as 1.0125 million tons of lithium oxide, according to the group of scientists from the Institute of Geology and Geophysics at the Chinese Academy of Sciences (CAS).

But it is not yet known how much the new Himalayan deposit – dubbed Qiongjiagang, after the nearest peak – could be worth.

It may also be the country’s third-largest lithium deposit after one at the Bailong Mountain site in the Xinjiang Uygur autonomous region, and the Jiajika deposit in Sichuan province, according to a report by China Science Daily.

The content rate of lithium oxide in the newly discovered deposit is also high enough to be of “industrial value”, according to the report.

“The Qiongjiagang lithium pegmatite deposit has good conditions for mining,” Qin Kezhang, Head of Research Team, was quoted as saying.

He pointed to the shallowness of the deposit and the quality of the ore, in noting that it would be relatively easy to mine and extract. He also said it is also in a favorable location, geographically – far from the heart of the Qomolangma nature preserve and still accessible. Qomolangma is the Tibetan name for Everest.

However, Qin said, exploitation of the lithium deposit is a long way off, as it is still in the initial “pre-study” phase.

As major economies are all aiming to shift to electric cars in the global fight against climate change, the silvery-white metal has been increasingly considered “new oil” or “white gold”, as it is an essential component in electric vehicle (EV) batteries.

According to an estimate from the International Energy Agency, global demand for lithium would grow by more than 4,000% by 2040 if the world achieves its climate goals.

Currently, 85% of lithium comes from Latin America and Australia, according to market intelligence provider IHS Markit. The two regions are home to 64% of the world’s known lithium, according to the 2022 Mineral Commodity Summary from the United States Geological Survey.

The newly discovered deposit is said to be a type of lithium-bearing rock called spodumene – the same as that from Australia – while deposits in Latin America are found in brine lakes spanning the borders of Bolivia, Argentina and Chile – known as the Lithium Triangle.

As the world’s biggest EV market, Chinese companies refine two-thirds of the world’s lithium and dominate the global battery production.

That dominance has triggered concerns among the United States and its allies, which have vowed to reduce their supply-chain dependence on China.

Meanwhile, three quarters of the mineral supply in China relies on imports. More than 96 per cent of spodumene exports from Australia go to China, IHS Markit’s data showed, while more and more Chinese companies are venturing into Latin America for mining projects.

Monday, 21 February 2022

United States-China ties as fraught as ever

At the height of the Cold War, US President Richard Nixon flew into communist China’s center of power for a visit that transformed US-China relations and China’s position in the world in ways that was unimaginable at the time.

The relationship between China and the United States was always a challenge, and after half a century of ups and downs, is more fraught than ever. The Cold War is long over, but on both sides there are fears a new one could be beginning. Despite repeated Chinese disavowals, the US worries that the democratic-led world that triumphed over the Soviet Union could be challenged by the authoritarian model of a powerful and still-rising China.

 “The U.-China relationship has always been contentious but one of necessity,” said Oriana Skylar Mastro, a China expert at Stanford University. “Perhaps 50 years ago the reasons were mainly economic. Now they are mainly in the security realm. But the relationship has never — and will never — be easy.”

Nixon landed in Beijing on a gray winter morning 50 years ago. Billboards carried slogans such as “Down with American Imperialism,” part of the upheaval under the Cultural Revolution that banished intellectuals and others to the countryside and subjected many to public humiliation and brutal and even deadly attacks in the name of class struggle.

Nixon’s 1972 trip, which included meetings with Chairman Mao Zedong and a visit to the Great Wall, led to the establishment of diplomatic relations in 1979 and the parallel severing of formal ties with Taiwan, which the US had recognized as the government of China after the communists took power in Beijing in 1949.

Premier Zhou Enlai’s translator wrote in a memoir that, to the best of his recollection, Nixon said, “This hand stretches out across the Pacific Ocean in friendship” as he shook hands with Zhou at the airport.

For both sides, it was a friendship born of circumstances, rather than natural allegiances.

China and the Soviet Union, formerly communist allies, had split and even clashed along their border in 1969, and Mao saw the United States as a potential counterbalance to any threat of a Soviet invasion.

Nixon, embroiled in the Watergate scandal at home, was seeking to isolate the Soviet Union and exit a prolonged and bloody Vietnam War that had divided the US society. He hoped that China, an ally of communist North Vietnam in its battle with the US-backed South, could play a role in resolving the conflict.

The US president put himself in the position of supplicant to Beijing, said June Teufel Dreyer, a Chinese politics specialist at the University of Miami. Chinese state media promoted the idea that a prosperous China would be a peaceful China and that the country was a huge market for the US exports, she said.

It would be decades before that happened. First, the US became a huge market for China, propelling the latter’s meteoric rise from an impoverished nation to the world’s second largest economy.

Nixon’s visit was a pivotal event that ushered in China’s turn outward and subsequent rise globally, said the University of Chicago’s Dali Yang, the author of numerous books on Chinese politics and economics.

 

Pakistan should get ready to trade with Iran

According to a Dawn report the revival of the Joint Comprehensive Plan of Action (JCPOA) signed between Iran and leading super powers in 2015 is likely to present Pakistan some of the rarest opportunities. It will not only open up new avenues for closer economic engagement between the two neighbors, but access to oil, gas oil and minerals.

According to credible media reports, JCPOA is expected early next month. To earn Iran’s trust and to convince the world of the US intent, President Joe Biden has restored some sanction waivers early this month. These breaks would allow firms around the world to trade with Iran.

The private sector, aware of the US hostility towards Iran and its dominant position in the global market, particularly over capital flows through the banking system.

Razzak Dawood, advisor to Prime Minister on commerce, did not divulge much on the possibility of visiting Tehran to explore possibilities. Responding to Dawn, he did not hide his lack of interest. “I am looking into it.”

The reports from Vienna are calming in a global environment of growing geopolitical rivalries threatening whatever is left of Covid-battered economies. If the growing energy insecurity amidst rising oil prices and vanishing fears of Western backlash kick-start the Pakistan-Iran oil pipeline project, it will be a real boon for the people and the private sector groaning under the burden of rising fuel prices, hoped an incorrigible optimist.

Journalist-turned-politician Senator Mushahid Hussain Syed was hopeful of a positive outcome if the sanctions are lifted on Iran and the financial flows are eased. The partial sanction waiver by the United States is good news for Pakistan. as it will open up opportunities for boosting commercial cooperation between the two neighbours. Coupled with US humanitarian sanctions waiver for Afghanistan after January 23-25 Oslo meeting, this augurs well for lowering tensions in the region.

“While Iranian minister’s visit was linked more with cross-border security issues, especially terrorism in Balochistan, last year’s opening of a third border crossing point between Pakistan and Iran can provide an impetus for bilateral trade and travel.

“The biggest issue was that, fearing Western retaliation; Pakistani banks were not willing to open a letter of credit (LC) for legitimate overland trade. Perhaps, eventually, the Pakistan-Iran pipeline deal can also be revived. Iran can provide energy security to Pakistan which would strengthen the economy.

“An additional force multiplier for Pakistan-Iran economic ties is the China-Iran strategic economic agreement,” he responded in writing when reached for his input.

Dr. Manzoor Ahmed, former Ambassador of Pakistan to the World Trade Organization (WTO), lament limited trade and implicitly blamed a weak foreign policy.

“Pakistan has a very low trade volume; its exports to Iran can be multiplied manifold. Despite sanctions, India’s exports crossed US$3 billion as it allowed Iran to buy in Indian currency,” he said.

In the past, it was not US sanctions alone, but also the Saudi pressure that prevented Pakistan from deepening trade ties.

Pakistan should start preparing for the post-sanction period. It enjoys potential to diversify its energy import sources. Both the countries enjoy a long common border. There is also a probability of opening more border posts.

Pakistan has already signed a preferential trade agreement with Iran. The time has come to reciprocate the good will gesture of Iran.

Razak and hawks poles apart on trade with India

According to a Dawn newspaper report, Abdul Razak Dawood, Adviser to the Prime Minister on Commerce, Textile, Industry and Production, and Investment has said that trade with India is the need of the hour and beneficial to both countries. 

“The trade with India is very beneficial to all, especially Pakistan. And I support it,” he added.

“As far as the Ministry of Commerce is concerned, its position is to do trade with India and my stance is that we should do trade with India and it should be opened now,” Dawood said.

Dawood said something which is logical and need of the hour. Many others believe once Pakistan and India start with Trade it would be only a matter of time to open other doors.

Many analysts believe that if Pakistan continue to beat the drum that there will be no trade with India unless article 370 is re-instated, then in the next 100 years Pakistan will not be able to do trade with India.

They also say that many hawks, who play a key role in Pakistan’s policy insist on banning trade, travel, sports and people to people contact with India. Therefore, whatever Razzak and likeminded people are saying does not matter.

It may be recalled that in the recent past EEC made a decision to allow import of cotton from India, but the decision was taken back on the insistence of Prime Minister Khan. It may be said the Khan is also under the pressure of hawks.

The people privy to the decision making process say that at times open and backdoor diplomacy sound hoax call, because hawks know exactly how to discourage trade with India.    

Sunday, 20 February 2022

South Korea and Iran to resume oil trade

South Korea and Iran are working closely on resuming oil trade and unfreezing Iranian funds, said South Korean Foreign Ministry. The country was previously one of Iran's leading Asian oil customers. The move coincides with negotiations resuming in Vienna to revive Tehran's 2015 nuclear agreement with world powers.

Tehran has repeatedly demanded the release of about US$7 billion of its funds frozen in South Korean banks under US sanctions, saying Seoul was holding the money hostage.

"Our side expressed hope for the resolution of issues related to sanctions such as the transfer of frozen funds upon the agreement on the restoration of the Joint Comprehensive Plan of Action (JCPOA) now underway in Vienna," a South Korean statement said, using the full name of the nuclear accord.

The Iranian side stressed the importance of an early resolution of the matter of the frozen funds, it added.

Iran and South Korea are also discussing the trading of crude oil and oil products, on the condition sanctions are lifted as progress is made in nuclear negotiations, the statement said.

Previously South Korean oil buyers chiefly imported condensate, or an ultra-light form of crude oil, from Iran.

In Tehran, the Iranian Foreign Ministry spokesman Saeed Khatibzadeh said Iran saw the talks as a possible indicator of attempts to re-establish trade ties with South Korea.

"This expert meeting's results can be seen as a test of South Korea's seriousness to solve existing problems between the two countries and normalizing ties, including through oil and condensate sales to Korea and Korean firms' investments in Iranian projects," Khatibzadeh told state media.

"Therefore, Iran will carefully follow up on the results of these negotiations in considering how to regulate relations between the two countries," Khatibzadeh added.

The United States reimposed sanctions on Iran in 2018 after then President Donald Trump withdrew from the nuclear deal under which Tehran agreed to curb its nuclear program in exchange for US sanctions relief.

South Korea, the world's fifth-largest crude buyer, imported a total of 12.6 million tons of crude in January against 10.3 million tons a year ago, preliminary data from the Korea Customs Service showed. 

Saturday, 19 February 2022

The biggest challenge for Biden

The biggest challenge for US President Biden leadership is brewing crisis caused by Russian aggression against Ukraine. The stakes are high for Biden, after the chaotic withdrawal from Afghanistan that prompted widespread criticism and left allies questioning US leadership. 

Political observers say that the unfolding situation represents an opportunity for Biden to demonstrate American leadership and draw a contrast with former President Trump’s handling of Russian President Vladimir Putin.  

“More than anything, he has to show all these people that he is not the weak and frail leader Republicans say he is,” said one Democratic strategist. “In this case, it’s about perception more than anything else.”

There are also some political risks, especially if the crisis spirals into war and impacts the domestic economy. 

With an eye toward the upcoming midterm elections, Republicans have tried to paint Biden as weak on issues of domestic and foreign policy.

But Democrats like the contrast between Biden’s approach to Russia and how Trump, who spoke warmly of Putin and exhibited deference to the Russian leader, dealt with the Kremlin. They think this will be an effective response to any GOP attacks on Biden’s approach to the crisis. 

“Foreign policy is one of those areas where presidents can look or seem presidential,” said Basil Smikle, a Democratic strategist and director of Hunter College’s public policy program. 

“Particularly in the post-Trump environment where we all have been witness to the Trump-Putin bromance, if you will, I think voters will be able to see, number one, Biden on the world stage looking presidential, and two, can he look presidential against Putin where Donald Trump did not,” Smikle said.  

In a recent speech from the White House, Biden pledged to give diplomacy “every chance” to resolve the crisis while issuing a stern warning to Russia against invading Ukraine.   

“The world will not forget that Russia chose needless death and destruction,” Biden said.

“Invading Ukraine will prove to be a self-inflicted wound.”  

Biden administration officials have warned a Russian invasion of Ukraine could happen at any time, but Russia sent some signals that it may be willing to de-escalate. Biden is likely to receive credit if conflict is avoided, while he may incur some blame if the situation spirals out of control.  

Biden’s approach to the crisis has been focused on uniting allies behind a common approach to pushing back against Putin’s provocations and preparing a sanctions package that would cause pain to the Russian economy if it were to launch a renewed military invasion of Ukraine.   

Biden has been firm in his engagements with Putin, proposing “swift and severe costs” in the event of an invasion in a phone call over the weekend. He has sent thousands of troops to defend NATO allies in Eastern Europe while being clear that US troops will not be sent into Ukraine to fight Russia. The troop movements have even won some praise from Republican lawmakers.  

Much of the economic impact of a full-scale Russian invasion of Ukraine is expected to be centered in Europe, but it could drive up energy costs in the US, compounding the price pressures Americans are already facing.  

Biden acknowledged this possibility during his address on Tuesday and said his administration is “taking active steps to alleviate the pressure on our own energy markets.” 

“I will not pretend this will be painless,” he said. 

The Biden administration has been trying to fend off a potential energy crisis by engaging with countries and major energy companies to find a way to offset any energy shortage, given Europe’s reliance on Russian gas. 

Republicans have hammered Biden over inflation for months, seeking to convince voters that his policies are to blame and that he’s doing little to address high prices.  

“International crises could change the maps at home,” said Alex Conant, a GOP strategist.  

The economy and the pandemic will always matter a lot to people, Conant said, but if an international conflict escalates to the point that it affects the domestic economy or troops have to be deployed, it could definitely influence people’s views when voting.

Observers say this particular foreign policy scenario is different from the Afghanistan withdrawal that many see as a pivotal, negative point in Biden’s approval ratings as president. 

“I think the situation in Russia/Ukraine is quite different politically than Afghanistan,” said Richard Fontaine, the CEO of the Center for a New American Security who served as a foreign policy adviser to the late Sen. John McCain.  “The worst-case scenario is a full-scale invasion of Ukraine and if it happens, it will be despite the administration's efforts to avert it. If Putin is determined to go forward, no one is going to stop him.   

“That, I think, is different than Afghanistan, where at issue was a US policy of withdrawal implemented by the United States — and over objections from some of our allies.”  

The Afghanistan withdrawal struck at the heart of the competency message that Biden relied on during his successful presidential campaign. It was followed by a drop in the president’s domestic poll numbers that have not recovered as the nation grapples with the enduring coronavirus pandemic and inflation.  

There is limited data thus far on views of the Russia-Ukraine crisis and Biden’s handling of it. 

A CBS News poll released last week found that 70% of Democrats believe Biden’s approach to Russia is “about right,” while 44% of independents said the same. Only 16% of Republicans said his approach is “about right,” while 59% said it is too friendly and 25% said it is “too hostile.” 

Democratic strategist Rodell Mollineau said the White House has handled the crisis well to date.  

“This administration, the amount of communicating they’re doing on this is important. It shows Russia and the Ukraine that the US is invested, and it shows the American people this is something the US takes seriously,” Mollineau said.  

At the same time, Fontaine observed that the current crisis could have adverse political ramifications for Biden if it consumes his time and takes his attention away from other priorities of the Biden administration. 

“If that goes on indefinitely, it could produce opportunity costs for other administration priorities, in both foreign and domestic policy,” he said.  

Democrats say whatever happens, it’s unlikely to be a defining issue in this year’s midterms or the presidential race in 2024. 

As Democratic strategist Eddie Vale put it, “The 2022 and 2024 elections are going to hinge on what happens in Kenosha, not Kyiv.” 

 

Iran-Uzbekistan Joint Economic Committee Meeting Scheduled

Iranian Industry, Mining and Trade Ministry will hold 14th Iran-Uzbekistan Joint Economic Committee meeting on February 20-21, said an official of Trade Promotion Organization (TPO).

Director General of TPO’s United States and Europe Office, Mohammad-Reza Karimzadeh said on Friday that the 14th Iran-Uzbekistan Joint Committee meeting has been convened in Tehran for the promotion of trade among the two countries.

Expert committees have held talks in recent days to coordinate the preparation of the draft for a memorandum of understanding (MOU) between the two countries on economic, investment, customs, transportation, energy, health, scientific, technological, tourism, cultural and agricultural arenas, Karimzadeh said.

The official further noted that given the importance of enhancing relations between the private sectors of the two countries, the organizers also plan to hold a seminar on trade opportunities of the two nations on the sidelines of the mentioned meeting at the venue of Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) on February 21, 2022.

Talking about the significance of the Joint Economic Committee meeting in developing the trade and economic relations between Iran and Uzbekistan, the Iranian official said, Uzbekistan is one of the important markets for Iranian commodities. Iran’s exports to Uzbekistan have witnessed significant growth in recent months, Karimzadeh said.

Iranian Deputy Foreign Minister for Economic Diplomacy Mehdi Safari said on February 17, 2022 that the Islamic Republic is going to hold two joint economic committee meetings with Uzbekistan and Kazakhstan in Tehran in the coming days separately.

It is expected that holding such meetings will help sign promising agreements for future cooperation in different fields, Safari noted.

According to the Deputy Foreign Minister, a delegation comprising of experts from Pakistan will also visit Tehran in the near future to discuss collaborations with officials in Iran’s agriculture sector.

Pakistan and Iran have so far shown determination to enhance economic and trade ties between private and administrative sectors of both countries, Safari added.

OPEC plus wants Iran to join supply deal

Reportedly, Iran has risen above Russia on the oil market radar due to reports from multiple sources that a new nuclear deal is very close to being agreed upon. There are also rumors that Russia is about to invade Ukraine, which has sent oil prices soaring earlier in the week, but tensions eased slightly by the weekend.

Iran is already gearing up for a return of its crude to international markets. The country last year announced production ramp-up plans. This week, media reported that officials from the state-owned National Iranian Oil Company had visited South Korea to discuss supply deals with local refiners.

If a deal is reached on Iran’s nuclear program, the country could add 500,000 bpd to global oil supply between April and May. According to Rystad Energy analyst Louise Dickson, Iran can ramp up production very quickly, in a matter of four to six months, and it also has substantial amounts of oil in storage to offer on international markets if sanctions are lifted

A potential agreement about the United States and Iran returning to the so-called nuclear deal looks close, according to an OPEC+ source.

“It is very likely OPEC will adjust Iran into the deal, as there is no other option,” the source told Reuters.

Over the past few days, there have been hints from diplomats that a deal on reviving the nuclear agreement is indeed close, which pushed oil prices lower.

Iran’s main negotiator, Ali Bagheri Kani, tweeted late on Wednesday. “After weeks of intensive talks, we are closer than ever to an agreement; nothing is agreed until everything is agreed, though. Our negotiating partners need to be realistic, avoid intransigence and heed lessons of past four years. Time for their serious decisions.”

In case a deal is reached, the United States has said that the window of reaching an agreement is closing fast—Iran could return some 1.3 million barrels per day (bpd) to the market within several months after the US lifts sanctions on its oil exports.

According to diplomats who spoke to Reuters, a draft of an agreement being discussed would put the main sanction-lifting stage, including oil exports, at a later stage, while releasing Western prisoners held in Iran and unfreezing Iranian funds would come first.

In the event of an agreement, OPEC+ would look to include Iran—currently exempted from all OPEC+ pact quotas—in the deal, Reuters’ source says.

Iran, for its part, will likely seek first to restore its oil production and exports, but it will also likely agree to a quota after talks with OPEC+, a source with knowledge of Iran’s thinking told Reuters.

It is looking increasingly likely that a new nuclear deal with Iran will be reached and sanctions on its oil industry will be lifted.

Iran would likely want to restore production to near pre-sanctions levels before joining any such agreement

 

Friday, 18 February 2022

Biden convinced Putin ready to invade Ukraine

Prior to the attack on Iraq and Afghanistan, the United States and its allies created hype about presence of Osama bin Laden in Afghanistan and Iraq building weapons of mass destruction. Both the countries were attacked, but both the mantras proved merely ‘hoax call’. This time the target is Russia and the mantra is the same, “Russia is getting ready to attack Ukraine”.

President of United States, Joe Biden on Friday said he believes Russian President Vladimir Putin has made up his mind to move forward with an invasion of Ukraine.

"As of this moment I’m convinced he’s made the decision. We have reason to believe that," Biden told reporters at the White House after delivering an update on the threat of a Russian invasion.

"You are convinced President Putin is going to invade Ukraine. Is that what you just said a few moments ago?" a reporter asked moments later.

"Yes, I did," Biden said, adding that diplomacy was still on the table if Moscow chose to deescalate.

Biden and White House officials have for weeks said they did not believe Putin had made a final decision about whether to carry out an invasion into Ukraine even as Russia amassed troops and military equipment along the Ukrainian border. But Biden indicated Friday that had changed and that the US and it allies were preparing for a Russian attack in the coming days. 

"We have reason to believe the Russian forces are planning to and intend to attack Ukraine in the coming week, in the coming days. We believe that they will target Ukraine’s capital of Kyiv, a city of 2.8 million innocent people," Biden said in prepared remarks.

"We’re calling out Russia’s plans loudly and repeatedly not because we want a conflict, but because we’re doing everything in our power to remove any reason that Russia may give to justify invading Ukraine and prevent them from moving," he added.

Biden held a call earlier Friday with leaders from Europe and Canada to discuss the ongoing threat of a Russian invasion. Vice President Harris is scheduled to meet Saturday with Ukrainian President Volodymyr Zelensky at the Munich Security Conference in Germany.

Biden and other White House officials have said it is up to Zelensky whether he wants to leave the country amid the threat of a potential Russian attack.

Despite Russian claims in recent days that it was moving forces away from Ukraine’s border, the US and NATO said that Moscow has added troops. Russia is also engaging in military exercises in Belarus, compounding the threat.   

Biden on Friday called out Russian claims he said were being used to create a pretext for an invasion. He cited the shelling of a Ukrainian kindergarten classroom by Russian-backed separatists and "fabricated claims" of an impending Ukrainian attack on Russia. 

"All of these are consistent with the playbook the Russians have used before to set up a false justification to act against Ukraine," Biden said. "This is also in line with the pretext scenarios that the United States and our allies and partners have been warning about for weeks."

Biden reiterated that he would not send US troops into Ukraine should fighting break out, but he pledged support for the Ukrainian people.

"The entire free world is united," Biden said. "Russia has a choice between war and all the suffering it will bring, or diplomacy."

 

Thursday, 17 February 2022

United States robs Afghanistan of US3.5 billion

Afghans have staged protests against a decision of the US administration to use $3.5 billion dollars of their country’s frozen assets to help settle lawsuits by the families of 9/11 victims. 

The US continues to maintain a strong economic blockade of Afghanistan and its central bank by not easing the mounting humanitarian crisis in the country. 

The protesters say the money belongs to the Afghan people stressing they are the ones who should be compensated by the US for 20 years of occupation that brought about terror, destruction, poverty, and killing of a countless number of civilians. 

Demonstrators have also gathered outside Kabul's Eid Gah mosque making similar demands of reparations from the US.

Civil society activist Abdul Rahman had this message for the US administration, “What about our Afghan people, who gave many sacrifices and thousands and thousands of losses of lives?''

Afghan activists have also pointed out that none of the hijackers that staged the 9/11 attacks were Afghan nationals and say they will never forget the destruction left behind by America. 

Aid groups have condemned the move saying the money legally belongs to the Afghan people and nobody else is entitled to it. 

Addressing a press conference in Kabul, former Afghan President Hamid Karzai slammed Biden’s decision. He called on Washington to immediately return the US$7 billion in frozen assets which he says “belong to no government, but to the people of Afghanistan”.

The Taliban’s senior spokesperson, Mohammad Naeem Wardak, wrote on social media, "The theft and seizure of money owed by the United States to the Afghan people represent the lowest level of human and moral decay of a country and a nation”. 

Pakistan’s permanent representative to the United Nations, Munir Akram, says the money was critically needed to revive the economy of the war-battered country. Akram says, “We have consistently joined the calls of the international community as well as the senior UN officials and the international humanitarian actors to unfreeze Afghanistan’s reserves”

Critics have also denounced the White House for doing so little to address underlying factors driving Afghanistan’s massive humanitarian crisis after 20 years of American occupation.

A financial advisor to the former Afghan government, Torek Farhadi, questioned the White House’s decision saying "these reserves belong to the people of Afghanistan, not the Taliban... Biden's decision is one-sided and does not match with international law”

Farhadi also says that “no other country on Earth makes such confiscation decisions about another country's reserves”. 

Policy Analyst and Afghan Researcher, Mohsin Amin, strongly denounced the move; writing on social media that "the U.S. dropped 85,000 bombs on Afghanistan. Even if one bomb killed 3 people, it's 255K. The last U.S. airstrike killed 10 (7 children), "97 percent of [Afghanistan] is starving, 3.2m children are malnourished, yet the US wants to throttle the economy and steal the hard-earned savings of Afghans”. 

The Policy Advisor to the UK Minister of Afghan Resettlement, Shabnam Nasimi, wrote on social media "as more than 23 million people are on the brink of starvation, it is unjust & immoral for @POTUS to want to use billions of Afghanistan’s frozen assets to pay 9/11 victims. The horrific 9/11 attacks had nothing to do with the people of Afghanistan, & they should not be punished”. 

Adam Weinstein, a researcher at the Quincy Institute, also added to the chorus of condemnation online saying the move will "go down in history as a travesty. Punishing an entire people for a crime they did not commit & kneecapping them into forever dependence should offend every American”. 

On Sunday, the Afghan central bank called on the U.S. administration to reverse the decision. 

In a statement, the Da Afghanistan Bank (DAB) said "blocking Foreign Exchange (FX) Reserves and allocating them to irrelevant purposes, is an injustice to the people of Afghanistan and [the DAB] will never accept if the FX reserves of Afghanistan is paid under the name of compensation or humanitarian assistance to others and [the DAB]  wants the reversal of the decision and release of all FX reserves of Afghanistan”.

"As per the law and relevant regulations, FX reserves of Afghanistan are used to implement monetary policy, facilitate international trade and stabilize financial sector”.

The statement added that “the real owners of these reserves are the people of Afghanistan. These reserves were not the property of governments, parties, and groups and have never been used as per their demand and decisions”. 

When Kabul fell to the Taliban in August 2021, Afghanistan had over $9 billion in reserves held on behalf of the country’s central bank abroad.

This included $7 billion in foreign currency reserves held in the U.S., and the rest mostly in Germany, the UAE, Switzerland, and a few other countries.

The Biden administration has decided to release $3.5 billion of Afghanistan’s money held in America towards families of victims of the September 11, 2001 attacks and it has also agreed to allocate the other $3.5 billion towards a trust fund that will be used to send humanitarian assistance to Afghanistan. 

However, a senior U.S. administration official told reporters that it will take a long time before the money is even released for humanitarian relief in Afghanistan claiming “we have to go through a judicial process here, it is going to be at least a number of months before we can move any of this money, right? So this money isn’t going to be available over the next couple of months regardless“. 

The remarks come as acute malnutrition is spiking and over 90 percent of the country is facing serious food insecurity, problems that disproportionally affect women and girls; while Afghan children are starving to death nearly every day.

Advocacy group Human Rights Watch says “even if implemented, the decision would create a problematic precedent.. directing $3.5 billion to humanitarian assistance for Afghans may sound generous, but it should be remembered that the entire $7 billion already legally belonged to the Afghan people”.

The rights group highlights that even if the U.S. gives the remaining money to “a humanitarian trust fund, current restrictions on Afghanistan’s banking sector make it virtually impossible to send or spend the money inside the country”. 

It added that more important to addressing Afghanistan’s current crisis “are ongoing efforts by the United Nations and humanitarian organizations to convince the U.S. and World Bank to ease economic restrictions to allow Afghanistan’s economy, which is near complete collapse, to stabilize. Current restrictions on Afghanistan’s banking system are driving the population toward famine” 

On multiple occasions, humanitarian organizations have warned that keeping an economic blockade on the country will only make things worse. 

Organizations and groups that are trying to offer assistance need access to banks. 

Human Rights Watch says “without them, the UN’s own humanitarian activities have become exceedingly difficult; some have had to cease operations altogether”.

Aid group Refugees International has also issued a statement saying they are concerned Biden’s administration’s decision will exacerbate the suffering of the Afghan people.

The organization said "millions are already facing a dire and life-threatening humanitarian crisis this winter. Using part of Afghanistan’s reserves to help provide badly needed relief aid and essential services will no doubt help save lives”

It added, "We are concerned that this action could further cripple the country’s financial system and thereby perpetuate the suffering of the Afghan people."

Analysts say the mounting condemnation of the US administration will add to America’s disastrous policies and mistakes Washington committed and is continuing to commit again the people of Afghanistan.

Pakistan textile exports rise to US$11 billion

According to the data released by Pakistan Bureau of Statistics, Pakistan textile exports has witnessed a record exports of US$11 billion in first seven months of the current financial year (FY22), up by 25%YoY. In PKR terms, the exports yielded Rs1.861 trillion, up 30%YoY due to 4% depreciation of the local currency.

For 7MFY22, the key export driver was increase in value-added exports where knitwear segment contributed the most as it increased by 33%YoY to US$2.9 billion, followed by Readymade garments, up 22%YoY to US$2.2 billion and Bedwear up 19%YoY to US$1.9 billion exports.

However, on MoM basis, Pakistan textile exports were down 4% to US$1.5 billion in January 2022, due to lower value-added exports segments mainly in Knitwear, down 12%MoM and Ready-made garments, down 4% MoM.

As compared to last year, Pakistan’s textile exports were up by 17%YoY in January 2022 led by significant recovery witnessed in value-added segments, largely in knitwear, up 19%YoY, Ready-made up 17%YoY and Bedwear, up 21%YoY.

The volumetric growth and improved pricing were the key drivers resulting in higher exports.   

Going forward, analysts expect textile exports to remain robust in the remaining months of FY22 fiscal and may touch US$19 billion.

Ease of lockdown in European economies is likely to drive increased orders and help overall textile exports.

The Federal Cabinet on February 15 approved the Textile and Apparel Policy 2020-25, after Ministry of Commerce (MoC) submitted the revised draft of textile policy to Economic Coordination Committee (ECC) incorporating few amendments.

The key reason behind the late approval was the dispute between MoC and Energy Ministry on the issue of Energy Tariffs, specifically RLNG and Electricity.

As to the sources, the updated draft stated that Energy Tariffs (RLNG and Electricity) will be provided to textiles and apparel industry at regionally competitive rates during the policy years. For this, tariff will be reviewed and announced in federal budget by Finance Division.

§  As per Pakistan Institute of Development Economics (PIDE), the average regional electricity tariff rate stood at 7.4 cents/kWh in Mar-21, which we believe has likely increased since than. Pakistan’s current electricity tariff is around 9 cents/Kwh. 

§  In case of RLNG, the average regional RLNG rate stood at ~US$4/MMBTU as per PIDE vs. Pakistan’s tariff rate at US$6.5/MMBTU. We believe the above stated textile policy will have a neutral impact on the sector. Given, Pakistan is already offering subsidized energy & RLNG tariffs to textile players and Pakistan being part of an IMF program, a further reduction from the current levels is highly unlikely. 

§  RLNG tariff is expected to remain intact at US$6.5/MMBTU level although regional average is comparatively low. To note, RLNG is currently being provided at US$9/MMBTU to textile sector till March-22 due to supply issues.

§  Subsidized energy rates, increasing export numbers, and currency weakness bodes well for the sector. We have an ‘Overweight’ stance on Textile Sector with Interloop Limited (ILP) and Nishat Mills Limited (NML) as our top picks.