Ship stranded in Suez Canal re-floats

The stranded container ship blocking the Suez Canal for almost a week was re-floated on Monday and is currently being secured, Inchcape Shipping Services said, raising expectations the vital waterway will soon be reopened.

The ship was successfully re-floated at 4.30 am local time and was being secured at the moment, Inchcape, a global provider of marine services said on Twitter.

Ship-tracking service VesselFinder has changed the ship’s status to under way on its website.

The 400-metre (430-yard) long Ever Given was jammed diagonally across a southern section of the canal in high winds early on Tuesday, halting shipping traffic on the shortest shipping route between Europe and Asia.

At least 369 vessels were waiting to transit the canal, including dozens of container ships, bulk carriers, oil tankers and liquefied natural gas (LNG) or liquefied petroleum gas (LPG) vessels, SCA Chairman Osama Rabie told Egypt’s Extra News on Sunday.

Egypt’s Leth Agencies tweeted the ship had been partially refloated, pending official confirmation from the Suez Canal Authority.

The Suez Canal Authority had earlier said in a statement that tugging operations to free the ship had resumed. The Suez Canal salvage teams intensified excavation and dredging on Sunday and were hoping a high tide would help them dislodge it.

IMF Completes Combined Review of EFF for Pakistan

Reportedly, Executive Board of International Monetary Fund (IMF) has completed combined second through fifth reviews of the Extended Arrangement under the Extended Fund Facility (EFF) for Pakistan, allowing for an immediate release of US$500 million for budget support, taking total budgetary support under the arrangement to about US$2 billion.

Program performance has remained satisfactory notwithstanding the unprecedented challenges of the COVID-19 shock, and the authorities’ policies have been critical in supporting the economy and saving lives and livelihoods.

Pakistani authorities have remained committed to ambitious policy actions and structural reforms to strengthen economic resilience, advance sustainable growth, and achieve economic reform program medium-term objectives.

Pakistan’s 39-month EFF arrangement was approved by the Executive Board on 3rd July 3, 2019 for about US$6 billion at the time of approval of the arrangement, or 210% of quota. The program aims to support Pakistan’s policies to help the economy and save lives and livelihoods amid the still unfolding COVID-19 pandemic, ensure macroeconomic and debt sustainability, and advance structural reforms to lay the foundations for strong, job-rich, and long-lasting growth that benefits all Pakistanis.

Following the Executive Board discussion on Pakistan, Ms. Antoinette Sayeh, Deputy Managing Director and Acting Chair, issued the following statement:

The Pakistani authorities have continued to make satisfactory progress under the Fund-supported program, which has been an important policy anchor during an unprecedented period. While the COVID-19 pandemic continues to pose challenges, the authorities’ policies have been critical in supporting the economy and saving lives and livelihoods. The authorities have also continued to advance their reform agenda in key areas, including on consolidating central bank autonomy, reforming corporate taxation, bolstering management of state-owned enterprises, and improving cost recovery and regulation in the power sector.

Reflecting the challenges from the unfolding pandemic and the authorities’ commitment to the medium-term objectives under the EFF, the policy mix has been recalibrated to strike an appropriate balance between supporting the economy, ensuring debt sustainability, and advancing structural reforms while maintaining social cohesion. Strong ownership and steadfast reform implementation remain crucial in light of unusually high uncertainty and risks.

Fiscal performance in the first half of FY21 was prudent, providing targeted support and maintaining stability. Going forward, further sustained efforts, including broadening the revenue base carefully managing spending and securing provincial contributions will help achieve a lasting improvement in public finances and place debt on a downward path. Reaching the FY22 fiscal targets rests on the reform of both general sales and personal income taxation. Protecting social spending and boosting social safety nets remain vital to mitigate social costs and garner broad support for reform.

The current monetary stance is appropriate and supports the nascent recovery. Entrenching stable and low inflation requires a data-driven approach for future policy rate actions, further supported by strengthening of the State Bank of Pakistan’s autonomy and governance. The market-determined exchange rate remains essential to absorb external shocks and rebuild reserve buffers.

Recent measures have helped contain the accumulation of new arrears in the energy sector. Vigorously following through with the updated IFI-supported circular debt management plan and enactment of the National Electric Power Regulatory Authority Act amendments would help restore financial viability through management improvements, cost reductions, regular tariff adjustments, and better targeting of subsidies.

Despite recent improvements, further efforts to remove structural impediments will strengthen economic productivity, confidence, and private sector investment. These include measures to: 1) bolster the governance, transparency, and efficiency of the vast SOE sector; 2) boost the business environment and job creation; and 3) foster governance and strengthen the effectiveness of anti-corruption institutions. Also, completing the much-advanced action plan on AML/CFT is essential.

Can Pakistan and Bangladesh be Friends ever?

On 14th August 2020, Pakistan’s Independence Day, the country’s high commissioner in Dhaka, Imran Ahmed Siddiqui, lauded the role that Bengalis played in the creation of Pakistan in 1947. 

That was preceded by Pakistani foreign office spokesperson Aisha Farooqui saying that Islamabad was now actively working on mending relations with Dhaka. Before that, the two premiers, Imran Khan and Sheikh Hasina, held on 22nd July 2020 telephone conversation.

The year 2020 provided a rare opportunity to Islamabad and Dhaka to talk about their own fractured past. This was noticed by New Delhi with concern. Indian Foreign Secretary Harsh V. Shringla rushed to meet Hasina and Bangladesh Foreign Minister A.K. Abdul Momen.

Pakistan’s recent advances toward Bangladesh have overlapped with growing disputes between New Delhi and Dhaka, largely centering around the growing anti-Muslim tilt of the ruling Bharatiya Janata Party (BJP) in India. In the recent past, differences over the Rohingya refugee crisis, the Citizenship Amendment Act, and the construction of Ram Mandir in Ayodha have sparked a diverse array of skepticism from Dhaka.

China and Turkey are backing Islamabad’s Kashmir narrative, much of Pakistan’s recent diplomatic engagement with Bangladesh has been with regard to this fast-growing alliance. With China more interested in Kashmir because of its growing rivalry with India, and its bid to involve itself in conflicts as the global superpower, Dhaka’s interest in being a part of the China-Pakistan-Turkey nexus could also be piqued by Beijing’s investments in Bangladesh.

Under the Turkey-led Muslim bloc, both Pakistan and Bangladesh can get more prominence as compared to what they have under the Gulf states, who have not only failed to provide support for Kashmir, but have actively enhanced their defense and energy cooperation with India, and even Israel.

The UAE-Israel deal epitomizes the rapid splintering into a new cold war reality, with the Gulf states firmly in the US-Saudi camp. This opened the possibility for South Asian Muslim countries to back the potential China-Turkey bloc. Pakistan’s efforts to persuade Bangladesh, backed by China and Turkey, are rooted in global, and regional, realignments more so than any bilateral efforts to reconcile with a tumultuous past.

While Pakistan and Bangladesh might find common interests in coexisting in the same bloc, for the two to actually become friends requires an honest discussion on what transpired in 1971 – and the events leading up to it.

Where China and Turkey might be providing the opportunity for Pakistan to sit with Bangladesh again, it must do so with sincerity and self-reflection. That will not only help Islamabad formulate progressive bilateral ties, it might also ring a timely reminder to undo many of the same errors of the past.

Can sustainable peace be established between India and Pakistan?

It appears that efforts are being made to reduce hostility between Pakistan and India, the two atomic powers of South Asia. However, most of the actions are taking place behind the scene, though scanty details are being shared with public.

The Pakistan Day message received by Pakistani Prime Minister, Imran Khan from his Indian counterpart Narendra Modi has made headlines, but it hardly reflects any tangible goodwill gesture.

After years of hostility cordiality will be difficult to achieve. Yet the first, careful steps have been taken, and if things proceed without any glitch tangible progress in the peace process can be achieved.

The first sign that things were changing for the better came in the shape of the LoC ceasefire announced last month by the two countries. It was followed up by statements from Khan and the army chief calling for better relations with India.

Pakistani experts were also in India earlier this week after a long gap to discuss the sharing of Indus waters. Relations had of course hit rock bottom after India unilaterally annulled held Kashmir’s special status in its constitution in 2019.

One can hear the eco that a Gulf state that enjoys good relations with both sides is playing the role of peacemaker. Biden administration is also sending certain signals to Islamabad and New Delhi. This suggests that the two atomic powers are being pressurized to ease the situation.

It has been witnessed several times in the past; both countries were tantalizingly close to making peace, only for the process to be abandoned due to spoilers, this time things may not be different.

It is believed that with seriousness of purpose, everything standing in the way of peace — including Kashmir — can be resolved. The history spread over more than 70 decades, proves this is only a wishful thinking.

My lines could be best understood when one reads what Chief of Army Staff General Qamar Javed Bajwa has said. He said pointblank that lasting peace in the sub-continent will remain elusive until the resolution of the Kashmir issue. He also stressed that it was time for India and Pakistan to "bury the past and move forward".

Let me say that both the countries have remained hostage to the disputes and issues. The Kashmir issue is obviously at the heart of this. It is important to understand that without the resolution of Kashmir dispute through peaceful means, process of rapprochement will remain susceptible to derailment.