Monday, 25 April 2022

United States will not pick sides in Bangladesh

US Ambassador to Bangladesh Peter Haas has said the United States will not take any sides in the upcoming elections in Bangladesh and reiterated US commitment across the world to help countries strengthen democracy.

“Let me be clear, the United States will not pick a side in the upcoming elections. We simply hope for a democratic process that allows the Bangladeshi people to freely decide who will run their country,” said the ambassador.

He made the remarks while addressing a seminar.

Bangladesh Institute of International and Strategic Studies (BIISS) organized the seminar on “Bangladesh and the United States Relations: Moving Towards Enhanced Cooperation and Partnership” at the BIISS Auditorium.

Foreign Minister Dr AK Abdul Momen spoke as the Chief Guest.

The US ambassador said the relations between the two countries grew with a series of recent engagements while two more important engagements will be held in the coming months.

Ambassador Haas said the two countries can enhance security cooperation.

The ambassador also talked about two proposed agreements – General Security of Military Information Agreement (GSOMIA) and Acquisition and Cross Servicing Agreement (ACSA) which are essential” to enabling a closer defence relationship, expanding opportunities for defence trade, information sharing, and military-to-military cooperation between two countries.

He said there are many misperceptions about these two proposed agreements.

The US Ambassador also said, “There is no scope for repealing the sanctions against Rab, without concrete actions and accountability.”

“We want to see a Rab which is capable of combating terrorism but which is also capable of respecting basic human rights,” said Haas.

Just prior to his remark Rab Director General Chowdhury Abdullah Al-Mamun spoke about how Rab had established an internal inquiry cell to ensure accountability of Rab personnel in 2011, with US cooperation.

He said that under the International Criminal Investigative Training Assistance Program, a total of 147 Rab personnel have been trained on basic interviewing skills and human rights.

“The trained personnel have been distributed across Rab to ensure transparency and uphold human rights credentials,” said the Rab DG.

Foreign Minister AK Abdul Momen, also present at the event, commented that it was the former US Ambassador James F Moriarty who had called Rab the FBI (Federal Bureau of Investigation) of Bangladesh.

“Rab has since then done an excellent job at combating terrorism. Maybe we have to look at it more closely to see how to increase accountability…but this is a great institution,” said Momen.

“Let us have a road – you tell me where the gap is and we will try to work with you,” he said.

Peter Haas also said that the Rab sanctions do not mean that the US and Bangladesh will not continue strong law enforcement security cooperation.

“We will continue to work with Bangladesh to combat violent terrorism, combat transnational crime and enhance security. We will continue our support to the transnational crime police and to the anti-terrorism unit and the specialized police units in Chattogram, Sylhet and Rajshahi. The signing of a proposed memorandum of agreement would facilitate our assistance training program and to donate new equipment to the police,” said Haas.

He also said, “The US is not perfect. We have embarked on our own democratic renewal. This journey ensures tackling our own issues with police accountability. We are inviting other countries in the world to make similar commitments.”

“Holding an election consistent with international standards is not just about ballot day – truly fair elections involve creating a space where civic discourse can take place, where journalists can investigate without fear, and the ability of the civil society institutions to advocate. In Bangladesh the elections have already started,” said Haas. He welcomed the law minister’s commitment to reform the DSA to prevent abuse of the law.

Momen responded to Haas’ comment about holding impartial elections by saying, “You are most welcome to come with your observers. We want to see and improve.”

The US ambassador also spoke about the need for signing two defence treaties called ACSA and GSOMIA that are foundational agreements for defence trade and cooperation.

He called the treaties “building blocks”. GSOMIA would set the ground rule for exchanging sensitive data about military operations, said Haas, while ACSA will allow exchange of fuel and food.

He said that they are not like the “broad vague defence agreement that Bangladesh signed with China in 2002”, referring to the “China-Bangladesh Defence Cooperation Agreement” which covers military training and defence production.

Haas also said that Bangladesh is not being able to capitalize on US relations because of labour rights violations.

“The DFC (US International Development Finance Corporation) has a US$4 billion active portfolio in South Asia across multiple sectors including clean energy, healthcare and agriculture. The DFC cannot operate in Bangladesh because of a lack of labour rights,” he said.

He added that the embassy will include the first full-time attache from the US department of commerce this summer, to increase two-way trade and investment.

Former ambassador Kazi Imtiaz Hossain, Chairman of BIISS, led the event, while former ambassadors Humayun Kabir, Tariq A. Karim, former election commissioner Brig Gen (retd) Dr M Sakhawat Hossain, Director Gneral of BIIS Maj Gen Mohammad Masudur Rahman and Dhaka University professor Ruksana Kibria also spoke at the event.

 

United State wants Russia weakened

Secretary of Defense of United States, Lloyd Austin on Monday said that one of the goals of United States in aiding Ukraine is to see Russia weakened so that it cannot do the kind of things it has done.

When asked by reporters what the US goal was in Ukraine, he added, “We want to see Ukraine remain a sovereign country, a democratic country able to protect its sovereign territory.”

“We want to see Russia weakened to the degree that it can’t do the kinds of things that it has done in invading Ukraine,” he said.

Austin, along with Secretary of State Antony Blinken, shared their remarks while in Poland after a visit to meet with Ukrainian President Volodymyr Zelensky in Kyiv.

Austin added that Russia has already lost a lot of military capability, and a lot of its troops.

According to Austin, the US wants to see them not have the capability to very quickly reproduce those troops or military capability.

The Pentagon chief added, “We want to see the international community more united, especially NATO, and we are seeing that, and that is based upon the hard work of, number one, President Joe Biden, but also our Allies and partners who have willingly leaned into this with us as we’ve imposed sanctions and as we’ve moved very rapidly to demonstrate that we’re going to defend every inch of NATO.”

Austin praised Zelensky’s leadership as well and said, “Our deepest condolences to the president for the loss of so many civilians and, of course, the loss of those courageous troops that have done just a magnificent job of pushing back Russian forces.”

He added that the meeting was productive and their focus was “to talk about those things that would enable us to win the current fight and also build for tomorrow.”

Ukraine seeking $2B per month from US in emergency economic aid, official says Biden presses Congress on legislation to address veterans’ toxic exposures

Blinken and Austin’s visit marks the most senior US officials to visit Ukraine since Russia’s invasion began on February 24 and comes on the heels of Biden announcing the US will send Ukraine another US$800 million in military aid. 

The Treasury Department separately announced Thursday US$500 million in funding to help Ukraine fund government salaries, pensions and other programs needed to keep operations afloat.

TAGS Russia-Ukraine conflict, Anthony Blinken, Lloyd Austin, Zelensky Volodymyr,

 

Sunday, 24 April 2022

Terrorist attacks in Afghanistan intended to wage ethnic and religious wars

The World Assembly of Islamic Awakening has denounced the recent despicable terrorist attacks against Muslims in Afghanistan, saying such acts are intended to inflame tensions among Afghan ethnic and religious groups and foster Islamophobia.

"Certainly, such actions are planned to create tension and wage ethnic and religious wars, launch massacre and killings of Muslims, and as a result, portray an unrealistic image of Islam and spread Islamophobia," the assembly said in a statement released on Saturday.

It went on to say that the acting Taliban governing body in Afghanistan is responsible for ensuring the safety of all Muslims doing religious activities and should be held accountable. 

The recent terrorist assaults in Afghanistan on masjid are a desecration of the holy month of Ramadan and a continuation of the slaughter of innocent people carried out by US-backed terrorists with the goal of inciting a regional crisis, according to the organization.

“The recent terrorist act in Mazar-e-Sharif in fact completes ... a conspiracy and plan that seek to create division among the Muslim Ummah… and shows that such crimes know no boundaries,” the statement mentioned. 

It highlighted that the Afghans will soon respond appropriately to such atrocities, and it urged all Muslim governments, nations, groups, and parties, as well as international freedom fighters, to preserve unity, coherence, and solidarity in the face of the enemies' machinations.

Since the Taliban took control of the country in August last year multiple assaults have been recorded, some of which have been claimed by Daesh.

Taliban’s rule has yet to be recognized by governments. The former Taliban government was solely recognized by Pakistan, Saudi Arabia, and the United Arab Emirates.

At least 33 Afghans, including children, were killed and 43 others were injured as an explosion ripped through a masjid in the northern city of Kunduz on Friday, the latest in a string of horrific strikes in the war-torn country.

It happened only a day after a blast at a masjid in Mazar-e-Sharif, Afghanistan's northernmost city, which left dozens dead and wounded in the country's second significant attack on the Shia Hazara population in a week. 

 

United States does not want Iran and Saudi Arab to become friends

It was a pleasure reading “Iran and Saudi Arabia have resumed key talks after negotiations were suspended last month”, a senior Iraqi official told AFP on Saturday.

“Talks resumed last Thursday in Baghdad,” the official said, without giving further details.

Iran’s Nour news agency also confirmed that a meeting was attended by senior officials from the secretariat of Iran’s Supreme National Security Council and the head of the Saudi intelligence service.

For me the biggest inspiration are the words of the Saudi Crown Prince. In early March this year he had said, Saudi Arabia and Iran are ‘neighbours forever’ and that it was better for both of them to work it out and to look for ways in which they can coexist.

However, the contentious selection of words in AFP is evident which says, “Shia-majority Iran and the Sunni kingdom of Saudi Arabia support rival sides in several conflict zones across the region, including in Yemen, where the Houthi rebels are backed by Tehran, and Riyadh leads a military coalition supporting the government. In 2016, Iranian protesters attacked Saudi diplomatic missions in Iran after the kingdom executed revered Shiite cleric Nimr al-Nimr.”

The selection of words reminded me the western mantra, “Iran is a bigger threat as compared to Israel”. This was used to instigate Iraq to attack on Iran over four decades ago. The war continued for nearly ten years, only because two Arab countries provided money and ammunition to Iraq.

The economic sanctions imposed on Iran for more than four decades and the refusal of United States to implement nuclear deal signed by world super powers with Iran are the testaments that the super power does not want Iran to export oil and attain economic prosperity. It is highly regrettable that Saudi Arabia has fallen prey to the US mantra and has been supporting economic sanctions on Iran.

“It is expected that a joint meeting between the foreign ministers of the two countries will be held in the near future,” Nour said, describing what it called the “positive atmosphere of the recent meeting, which raised the hopes of a resumption of bilateral relations”.

Saturday, 23 April 2022

United States pledges to help Pakistan boost trade with Central Asian republics

According to a DAWN report, the United States has pledged to help Pakistan in improving its trade volumes, particularly with the Central Asian republics (CARs) under the US Agency for International Development’s (USAID) Pakistan Regional Economic Integration Activity (PREIA).

Under the PREIA, the Pakistani and Central Asian countries’ business communities are being provided assistance for the promotion of trade, exhibitions and other related activities focusing on enhancement in the bilateral trade among the countries.

“The US supports improving Pakistan’s trade volumes, particularly with Central Asian republics through USAID’s PREIA.

The project assists Pakistani and Central Asian businesses by supporting trade promotion initiatives, organizing trade exhibitions and business forums, facilitating bilateral trade deals and partnerships, and increasing awareness of untapped opportunities for trade and investment between countries,” said Acting Consul General Gibilisco after she joined 150 public and private sector representatives from Pakistan and Kyrgyzstan at a jointly organized Trade and Investment Forum in Lahore.

The forum aimed to create opportunities for the business communities of both countries, encourage dialogue on prospects for increasing bilateral trade and investment flows, develop linkages between the public and private sector stakeholders, and introduce new business and investment opportunities that can lead to the socioeconomic uplift of both countries.

“This year marks 75 years of US-Pakistan bilateral relations. During this time, our partnership has grown in many areas, and we look forward to building on our successes and expanding trade and investment ties and opportunities within the region,” noted Consul General Gibilisco.

The Forum was jointly organized by USAID, Pakistan Regional Economic Integration Activity (PREIA), the Ministry of Commerce, Trade Development Authority of Pakistan (TDAP), and the Embassy of the Kyrgyz Republic in Pakistan. Kyrgz Ambassador to Pakistan Totuiaev Ulanbek Asankulovich, and Director General TDAP Shahzad Ahmed Khan Rajput represented their respective countries.

A 45-member delegation from Kyrgyz Republic visited Pakistan from April 19 to 22 to participate in two trade and investment forums in Islamabad and Lahore.

The keynote remarks of the participants underscored the importance of utilizing the geostrategic locations of Pakistan and Kyrgyz Republic to bolster economic ties within the region.

Friday, 22 April 2022

Islamic State militants killing Afghans indiscriminately

A bomb blast ripped through a masjid during Friday prayers in northern Afghanistan, killing 33 people including children, just a day after a militant Islamic group had claimed two separate deadly attacks.

Meanwhile, Taliban forces have arrested a suspected militant who allegedly had planned a bomb attack that killed at least 12 offering prayers at a Shia masjid on Thursday, police said.

Balkh province’s police spokesman said Abdul Hamid Sangaryar was a key operative of the Islamic State (IS).

Since Taliban fighters seized control of Afghanistan last year after ousting the US-backed government, the number of bombings has fallen but IS militants have continued with attacks against targets they see as heretical.

A string of bombings rocked the country this week, with deadly attacks targeting a school and a masjid in Shia neighbourhoods.

Taliban arrest ‘mastermind’ of attack on Mazar-i-Sharif masjid

Taliban government spokesman Zabihullah Mujahid tweeted that children were among the 33 dead in the blast on Friday at a masjid in the northern province of Kunduz. “We condemn this crime... and express our deepest sympathies to the bereaved,” he said, adding that 43 more were wounded.

An intelligence official said on condition of anonymity that the explosion was caused by a bomb, but it was unclear how it was detonated.

An AFP correspondent saw large holes blown through the walls of the Sunni Mawlavi Sikandar masjid, popular with Sufis in Imam Sahib District, north of Kunduz city.

One side of the mosque was completely destroyed by the explosion.

“The sight at the mosque was horrifying. All those who were offering prayers inside the masjid were either injured or killed,” Mohammad Esah, a shopkeeper who helped in carrying victims to the district hospital, told AFP.

“I saw 20 to 30 bodies,” a local resident said.

Relatives of victims arrived at the local hospital to look for their loved ones.

“My son is martyred,” screamed one man, while a woman accompanied by her four children searched for her husband.

A nurse told AFP over the phone that between 30 and 40 people had been admitted for treatment of wounds from the blast.

About a dozen ambulances were seen carrying the seriously wounded to the main provincial hospital in Kunduz city. “The shrapnel injuries on the bodies of the wounded show they were caused by a bomb explosion,” a doctor at the provincial hospital told AFP.

Friday’s blast was one of the biggest attacks since the Taliban seized power on August 15 last year.

The deadliest was just days later when more than 100 Afghan civilians and 13 US servicemen were killed in a suicide attack at Kabul airport as tens of thousands were trying to flee the country.

The regional IS branch in Sunni-majority Afghanistan has repeatedly targeted Shias and Sufis, who follow a mystical branch of Islam. IS a Sunni group like the Taliban, but the two are bitter rivals.

Shia Afghans, who are mostly from the Hazara community, make up between 10 and 20 per cent of Afghanistan’s population of 38 million. Taliban officials insist their forces have defeated IS, but analysts say the jihadist group is a key security challenge.

“Since the Taliban took power, the only achievement that they are proud of is the improvement in security,” said Hekmatullah Hekmat, an independent political and security expert.

In an earlier attack on Thursday, at least 16 people were killed by bomb blasts in two Afghan cities — including 12 offering prayers in a Shia masjid in an attack claimed by IS.

Earlier this week, at least six people were killed in twin blasts that hit a boys’ school in a Shia neighbourhood of Kabul.

Twelve people were killed and 58 wounded, including 32 were in serious condition.

In a separate blast on Thursday in the city of Kunduz, at least four people were killed and 18 wounded when a bicycle bomb exploded near a vehicle carrying mechanics working for the Taliban, police spokesman Obaidullah Abedi said.

Taliban officials insist their forces have defeated the IS, but analysts say the group is a key security challenge. Since seizing power, the Taliban have regularly raided suspected IS hideouts in eastern Nangarhar province.

In May last year at least 85 people — mainly girl students — were killed and about 300 wounded when three bombs exploded near their school in the Shia-dominated Dasht-i-Barchi neighbourhood of Kabul.

No group claimed responsibility for that, but in October 2020 the IS admitted a suicide attack on an educational centre in the same area that killed 24 people, including students.

In May 2020, the group was blamed for a bloody attack on a maternity ward of a hospital in the same neighbourhood that killed 25 people, including new mothers.

World heading towards worst food crisis

There are more warnings about the worsening global food crisis. Here is a snapshot of the latest key food stories from around the world. The countries having ample stockpiles have to stop smuggling to neighboring countries, and those with little supplies have to purchase as much as they can affords, that too in a speedy manner.

Pricey Nutrients

Expensive fertilizers are just one of many factors that have driven food prices to a record level. In response, rice farmers across Asia are scaling back usage of the nutrients, threatening harvests of a staple that feeds half the world.

The repercussions could be huge, predicts International Rice Research Institute. Yields could drop 10% in the next season, causing a loss of 36 million tons of rice, or the equivalent of feeding 500 million people. That could exacerbate food inflation that’s contributing to turmoil gripping developing nations such as Egypt, Tunisia and Sri Lanka.

Costly Shipping

Food prices are also being buoyed by high shipping costs, which is bad news for grain-importing countries, particularly in Africa and Asia.

The International Chamber of Shipping said about 80 to 100 ships have been unable to leave Ukrainian waters for almost two months due to underwater mines and military blockades.

Bulk freight rates are rising as owners and charterers expect ships will be tied up for longer periods. And that’s at a time when many importers are struggling to afford to buy enough grain. 

Food for Thought

The quality of Indian wheat — which has put off some buyers in the past — will be crucial as the country’s grain becomes competitive for the first time in years as the Ukraine war upends global trade flows. 

In Canada, where drought pummeled harvests last year, snow now threatens to delay crop plantings. The wintry weather there should mean more maple syrup because farmers can tap trees for longer.

And prices of fish crackers, a popular side dish in Indonesia, are set to surge as it becomes more expensive to make them.

Michael Ratney likely new US ambassador to Saudi Arabia

President Joe Biden is anticipated to nominate Michael Ratney, a career member of the foreign service, to serve as ambassador to Saudi Arabia, the White House announced Friday.

Ratney most recently served as the Chargé d’Affaires at the US Embassy in Jerusalem while Biden’s choice for ambassador to Israel, Thomas Nides, awaited confirmation. He has served in various State Department roles focused on Israel and the Middle East.

If confirmed, Ratney would serve as Biden’s envoy to the Kingdom at a precarious time for US-Saudi relations. The Biden administration has looked to Saudi Arabia and others to step up oil supply amid rising gas prices after the US and some other nations banned Russian oil imports over Moscow’s invasion of Ukraine.

Relations with Saudi Arabia have also been complicated given the kingdom’s human rights abuses, particularly the 2018 murder of journalist Jamal Khashoggi.

Biden vowed last year to hold Saudi Arabia accountable for Khashoggi’s murder after US officials determined Saudi Crown Prince Mohammed bin Salman ordered the killing.

The Wall Street Journal reported last month that Crown Prince Mohammed refused to speak with Biden about the US banning Russian oil imports. The White House called the report inaccurate.

Michael Alan Ratney born in 1961 is at present the Chargé d'Affaires of the United States Embassy in Israel. He was most recently the Dean of the School of Language Studies at the Department of State's Foreign Service Institute. Prior to that, Ratney served as the State Department's Deputy Assistant Secretary for the Levant and Israel-Palestinian Affairs and, from 2015 to 2017, as the US Special Envoy for Syria. From 2012 to 2015, Ratney was the US Consul General in Jerusalem. Until 2012, Ratney was Deputy Assistant Secretary for International Media and, before that, Spokesman for the State Department's Bureau of Near Eastern Affairs. He is the current nominee to be the next United States Ambassador to Saudi Arabia.

Since joining the Foreign Service in 1990, Ratney served as Deputy Chief of Mission at the US Embassy in Doha, Qatar, as well as tours in Mexico City, Baghdad, Beirut, Casablanca, Bridgetown, and Washington, DC. Ratney is from Massachusetts. He earned a BS from Boston University, and an MA from the George Washington University.

 


Iran notifies Tel Aviv aiming its missiles at strategic Israeli sites

An unnamed Iranian source revealed to Al Jazeera that Tehran has informed Tel Aviv that they know the locations of all of their nuclear, biological, and chemical weapons sites, and has warned them that, in the event of any aggression, Iran will strike the sensitive targets.

The cable was sent through European intermediaries and included a map showcasing where all these targets are located, according to The Cradle.co.

An informed IR Iranian source told Al-Jazeera that Tehran red flagged all chemical, biological and nuclear weapons storages and facilities of IL Israel and that they will be the first targets, in case Israel decides to start a war with Iran. 

The information was initially reported, without explanation as to the source of such revelations, by independent conflict analysis and news aggregate channel IntelSky on April 18, 2022.

“Iran has sent to Israel, through European intermediaries, pictures/locations of all its biological, chemical and nuclear weapons storages that will be struck at the first military clash,” IntelSky said on Twitter.

These news comes after Iranian President Sayed Ebrahim Raisi made a general warning on April, 18, 2022 saying that any Israeli aggression against the Islamic Republic will result in Iran striking into the heart of Israeli occupied lands and military bases.

“Just know that if the slightest move on your part occurs against our nation, our armed forces will target the center of the Zionist regime, and the power of our armed forces will not leave you at rest,” Raisi said as Iran marked Army Day.

During his speech, Raisi also said Iran’s military capabilities are internationally recognized.

“Today, our military industry is in the best condition,” he said.

After Raisi’s speech, a series of missiles, launch systems, and more than a dozen types of unmanned aerial vehicles (UAVs) were displayed.

Asian Shipowners’ Associations oppose hike in toll changes by Panama and Suez Canals

According to Seatrade Maritime News, Asian Shipowners’ Associations (ASA) are critical of recent proposed toll changes at both Panama Canal and Suez Canal Authorities. At a recent meeting, ASA delegates expressed concern and disappointment over the proposed hike in canal toll changes.

They reiterated the significance of Suez and Panama canals as critical global infrastructure and called for the canal authorities to avoid sudden and significant changes in tolls and charges.

“Delegates expressed their confusion against new surcharges introduced on March 01, 2022 with only 48 hours prior notice, then to be revised on May 01, 2022 by Suez Canal Authority (SCA), which resulted in roughly a 7 to 20 percent increase in toll for different types of vessels, in addition to a 6 percent tariff hike for most types of vessels, implemented on February 01, 2022,” said ASA.

Uncertainty around how surcharges operate could undermine the stability of the Canal, said the committee, calling for the industry to express its concerns to SCA.

ASA delegates appreciated some positives in the Panama Canal’s new toll system proposed earlier in April 2022 by the Panama Canal Authority (ACP). Delegates said the ACP had given sufficient notice and a formal consultation period, but were concerned that significant toll hikes could affect the long-term viability of the canal, “as the mark-up for some types of vessels may exceed 100% in 2025, as compared to the current toll.”

The ASA meeting also discussed the review of anti-trust exemptions for carriers on the US, a policy delegates said was “indispensable for the healthy development of the liner shipping industry and the maintenance of a reliable service to the entire trading community.” ASA will continue its efforts to maintain anti-trust exemptions for liner shipping agreements.

 

Thursday, 21 April 2022

United States pouring more and more arms into Ukraine

With the each passing day my conviction is being cemented that United States has instigated Russia-Ukraine conflict to keep its military complexes busy in developing newer and more lethal arms. It is supplying arms from ‘stockpile’ to get rid of older stuff. 

The sale of these arms is fully funded, because the US has ample funds at its disposal after the withdrawal of troops from Afghanistan. 

Reportedly, Joe Biden, President of United States on Thursday announced to send another US$800 million in military aid to Ukraine to assist its ability to fight invading Russian forces.

The package has come a week after the administration sent a US$800 million weapons package to Ukraine, and as Ukraine will need to fend off Russian forces fighting to control the Donbas region.

With Thursday’s announcement, the United States has committed US$4 billion in security assistance since the start of the Biden administration, including US$3.4 billion since Russia’s invasion of Ukraine began on February 24, 2022.  

Thursday’s package will include 72 155mm howitzers, 144,000 artillery rounds and 72 tactical vehicles to tow the howitzers, according to a statement from the Pentagon.

Ukraine will also be receiving 121 Phoenix Ghost Tactical Unmanned Aerial Systems developed by the Air Force for specifically Ukraine.  

Pentagon press secretary John Kirby told reporters that these systems, made by AEVEX Aerospace, have similar capabilities to the Switchblade—a rapidly-deployable system that can be used against personnel and light vehicles. 

To rush weapons to Ukraine, Biden has relied on presidential drawdown authority to direct the Pentagon to send weapons from its own stockpiles.

Biden acknowledged on Tuesday that he was nearing the limits of the drawdown authority provided to him under the US$1.5 trillion omnibus bill he signed last month, which included US$13.6 billion in supplemental aid to help Ukraine.

Therefore, he will ask Congress next week to approve supplemental funding to keep weapons and ammunition flowing without interruption.

When asked how much supplemental funding he would request, Biden said that's being decided now, adding, “I'm asking the Defense Department to put together what they think we need.”

The US officials have in recent weeks warned Russia may be refocusing its efforts in Ukraine on hitting the Donbas region in a bid to overwhelm Ukrainian forces there after initial assaults on Kyiv and other major cities stalled.

Officials have warned the next phase of the fight could drag on for months or longer.

In addition to the military aid, the Biden administration will ask for US$500 million to help Ukraine keep government services. The president also announced a ban on Russian-affiliate ships docking in US ports.

Further, Biden also announced that the US will pledge to take in 100,000 Ukrainians displaced by the crisis.

As part of this, the Uniting for Ukraine program will allow Ukrainians to apply to stay in the US for up to two years through a process known as humanitarian parole, which allows government officials to temporarily waive immigration requirements. 

 

Miftah Ismail sounds too amateur

Finance Minister Miftah Ismail said on Thursday that he was leaving for Washington to meet International Monetary Fund (IMF) officials for the revival of a loan facility. In the same breath he added to travel to London on the way, where he would meet PML-N supremo Nawaz Sharif.

He disclosed his intension to meet the IMF Managing Director, Chief Executive Officer of the World Bank, Ministers of Turkey, Saudi Arabia and China. If he has planned so many meeting, was any agenda prepared or it will be just saying hello to each other?

On Wednesday, he had told media persons that his priority was to secure one tranche of US$1 billion from the IMF and prepare for the coming budget and not to club two quarterly reviews.

He didn’t bother to thank overseas Pakistanis who have sent more than US$23 billion in nine months of the current financial year. One may recall, his government has decided not to give voting rights to overseas Pakistanis, despite their longstanding demand.

He was a bit ruthless in saying that the IMF program was stalled following the premature end of the Imran Khan government. He was not cognizant of the fact that the no-trust motion, which brought Imran Khan Term to an abrupt end, was initiated by his party in collaboration with political parties?

Ismail revealed that the IMF wanted Pakistan to do away with subsidies extended by the previous government, including those on fuel prices and power tariffs — two relief measures that former Prime Minister Imran Khan had announced right before the filing of a no-trust motion against him. The move had invited criticism with many describing it as going against Pakistan's commitments to the IMF for the US$6 billion Extended Fund Facility.

He failed to recall that soon after coming into power Shehbaz Sharif, refused to approve a summary of hike petroleum prices prepared by Oil& Gas Regulatory Authority (OGRA).

It may be worth reminding that the single-point maiden meeting of the Economic Coordination Committee (ECC) of the newly formed federal cabinet on Tuesday approved Rs69 billion for immediate reimbursement of price differential claims (PDCs) to the oil industry on account of cheaper sales of petroleum products than the cost of purchase. Wasn’t this a violation of commitment with the IMF?

In an attempt to contain budget deficit he expressed intention to save by cutting the development budget to Rs600 billion, instead of Rs900 billion, which might not be spent in any case by the ministries.

He was delighted to inform, “We will not cut a penny out of Benazir Income Support Program”. He went to the extent of saying to compensate; wheat flour price has been reduced by Rs150 per 10kg, while sugar would be sold at Rs70 per kg through utility stores. Edible oil price has also been reduced. Has he any realization that selling at reduced price, means providing subsidy?

 

Wednesday, 20 April 2022

Russia faces imminent default

According to a Bloomberg report, Russia faces imminent default. The Credit Derivatives Determinations Committee—which includes Goldman Sachs, Barclays and JPMorgan—said Wednesday that a “potential failure-to-pay” event occurred for credit-default swaps when Russia paid rubles after foreign banks declined to process US currency transfers. 

If Russia doesn’t pay up in US currency by the time its grace period expires on May 04, 2022, it would be the country’s first default on external debt in more than a century. Holders of the swaps could then start the process of getting paid on contracts covering about US$40 billion of debt.

Bloomberg says, this potential financial calamity for Russia is of course tied to Vladimir Putin’s bloody war on Ukraine and the subsequent storm of sanctions that’s rained down upon him. Some eight weeks after he sent troops across his southern border, Putin has failed to take Kyiv and reportedly lost thousands of soldiers and untold amounts of equipment. Now a small but growing number of senior Kremlin insiders are quietly questioning his decision to go to war. They believe the invasion was a catastrophic mistake that will set the country back for years, if not decades.

But most Russians (fear of voicing dissent  notwithstanding) tell pollsters they support Putin’s war, one in which thousands of civilians have likely been killed through seemingly indiscriminate bombing and alleged mass executions.

As Russian forces now move on the Donbas, Moscow is seeking to dissuade NATO from increasing its flow of weapons. On Tuesday, Putin Deputy Sergei Lavrov said Russia was against using nuclear weapons in Ukraine, but failed to give a direct answer about whether Putin might use them anyway.

And on Wednesday, Russia tested a new nuclear-capable intercontinental ballistic missile, an event Putin used to issue yet another thinly veiled threat against NATO.

In its new assault in Ukraine’s east, Russia has yet to gain significant ground, Ukraine officials contend, though surrounded defenders in the blasted port city of Mariupol have warned they are close to the end. But while Russia seeks to consolidate gains along the Sea of Azov, the potential expansion of NATO along its northern border is getting closer to reality.

Finland’s parliament began debate on policy changes that may pave the way for a bid to join the alliance. Putin still has friends in Beijing, at least. China said it will continue to strengthen its strategic ties with the Kremlin.