Iran Pakistan private sectors ink MoUs

Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) and Federation of Pakistan Chambers of Commerce and Industries (FPCCI) have signed three memorandum of understanding (MoU) with the aim of expanding economic cooperation between the private sectors of the two countries.

The MOUs were signed during a visit of an Iranian private sector delegation headed by ICCIMA Head Gholam-Hossein Shafeie to the Pakistani cities of Karachi and Lahore.

Based on the signed memorandums, the two sides agreed to strengthen comprehensive cooperation between the private sectors of the two countries, to establish a joint trade council of Iran and Pakistan, and to determine a mechanism to resolve trade disputes.

Accordingly, the Iran-Pakistan Joint Trade Council will work together with the Iran-Pakistan Joint Chamber of Commerce to strengthen economic relations between the two neighbors.

ICCIMA and FPCCI will also resolve the trade disputes between businessmen and traders through a channel separated from the two countries’ legal systems.

During their visit to Pakistan, the Iranian delegates attended a meeting with officials from the State Bank of Pakistan in which the two sides discussed details of a barter trade mechanism between the two countries.

The Zahedan Chamber of Commerce from Iran and the Quetta Chamber of Commerce and Industries (QCCI) from Pakistan have been put in charge as coordinators for implementing and pursuing the barter trade mechanism between the two sides.

As reported, at the end of the meeting the two sides agreed to form a 10-member committee to work on the details of the mechanism and follow up on the related issues in the future.

Solving currency and customs issues for the easy passage of transit trucks and accelerating the implementation of the free trade agreement between Iran and Pakistan, along with using Iran's membership status in the Eurasian Economic Union (EAEU) and the Shanghai Cooperation Organization (SCO), were also among the issues that were discussed in this meeting.

Details of the barter trade mechanism were also discussed in another meeting with the members of the Karachi Chamber of Commerce and Industries (KCCI) on Thursday.

Speaking in this meeting, KCCI Head Mohammad Tariq Yousuf mentioned the unsatisfactory level of trade between the two countries and noted that the barter trade agreement would open new windows for the expansion of trade ties between the two sides.

Shafeie for his part mentioned Karachi as the economic capital of Pakistan, saying that despite the significant capacities on both sides, the level of commercial relations between the two countries is still very limited.

During their stay in Pakistan, the 26-member Iranian delegation, comprised of the head of the Iran-Pakistan Joint Chamber of commerce, the heads of the three provincial chambers of Isfahan, Zanjan, and Zahedan, the secretary general of the ECO chamber of commerce, and four MPs, visited the cities of Karachi and Lahore.

Promoting bilateral trade to five billion dollars is said to be among the main objectives of this visit.

 

Putin criticizes West over Ukraine war

Russian President Vladimir Putin is showing no regrets for the war against neighbour Ukraine, insisting it is going according to plan and playing down any nuclear standoff with the West.

Putin, in remarks at a conference in Moscow on Thursday, had a familiar litany of grievances against our Western opponents and said the West's dominance over world affairs was coming to an end.

Putin accused the West of inciting the war in Ukraine and of playing a dangerous, bloody and dirty game that was sowing chaos across the world. Putin said, the West would have to talk to Russia and other major powers about the future of the world.

"We are standing at a historical frontier, ahead is probably the most dangerous, unpredictable and, at the same time, important decade since the end of World War Two," Putin said at an annual foreign policy conference.

The conflict, which began eight months ago with an invasion by Russian forces of neighbouring Ukraine, has killed thousands, displaced millions, shaken the global economy and reopened Cold War-era divisions.

Asked at the conference whether there had been any disappointments in the past year, Putin answered simply: "No", though he also said he always thinks about the Russian lives lost in Ukraine.

In response to questions, Putin made no mention of Russia's battlefield setbacks in recent months and said Russian aims had not changed.

Russia was fighting to protect the people of the Donbas, he said, referring to an eastern industrial region that comprises two of the four Ukrainian provinces he proclaimed annexed last month.

Fighting on the ground appears to have slowed in recent days, with Ukrainian officials saying tough terrain and bad weather had held up their main advance in Kherson.

On Thursday a close ally of Putin, Chechen leader Ramzan Kadyrov, said 23 of his soldiers had been killed and 58 others wounded in a Ukrainian artillery attack this week in Kherson. After the attack, Chechen forces killed about 70 Ukrainians, he said.

Russian forces shelled Ukrainian positions along the entire line of contact and built fortifications, particularly on the east bank of the Dnipro River, the General Staff of the Ukrainian Armed Forces said in a Facebook post on Thursday evening.

Indian oil imports from Middle East fell to 19 month low

Indian oil imports from the Middle East fell to a 19-month low in September, while Russian imports rebounded although refining outages hit overall crude imports.

Iraq remained the top supplier while Russia overtook Saudi Arabia as the second biggest after a gap of a month.

Indian total oil imports in September fell to a 14-month low of 3.91 million barrels per day (bpd), down 5.6% from a year earlier, due to maintenance at refiners such as Reliance Industries and Indian Oil Corp.

Indian imports from the Middle East fell to about 2.2 million bpd, down 16.2% from August, while imports from Russia increased 4.6% to about 896,000 bpd after dipping in the previous two months.

Russia's share of India's oil imports surged to an all-time high of 23% from 19% the previous month while that of the Middle East declined to 56.4% from 59%, the data showed.

The share of Caspian Sea oil, mainly from Kazakhstan, Russia and Azerbaijan, rose to 28% from 24.6%.

India has emerged as Russia's second biggest oil buyer after China, taking advantage of discounted prices as some Western entities shun purchases over Moscow's invasion of Ukraine.

"The discount on Russian oil has narrowed now but when you compare its landed cost with other grades such as those from the Middle East, Russian oil turned out to be cheaper," said a source at one of India's state refiners.

Imports for Saudi Arabia fell to a three-month low of about 758,000 bpd, down 12.3% from August, while imports from Iraq plunged to 948,400 bpd, their lowest level in a year, the data showed.

Imports from the United Arab Emirates declined to a 16-month low of about 262,000 bpd.

Higher intake of Caspian Sea oil has hit the share of other regions in India's imports in April-September, the first half of the fiscal year, and also cut OPEC's market share in the world's third biggest oil importer and consumer to its lowest ever.

In the first half of this fiscal year, Indian refiners also reduced purchases of African oil, mostly bought from the spot market. However, supply from the Middle East rose from a low base last year when the second wave of the coronavirus cut fuel demand.

 

 

Islamic State claims Iran shrine attack

The Islamic State claims carrying out attack on a Shi'ite Muslim shrine in Iran on Wednesday which killed 15 people, escalating tensions in a country reeling from a wave of protests, reports Reuters.

Iranian officials said they had arrested a gunman who carried out the attack at the Shah Cheragh shrine in the city of Shiraz. State media blamed takfiri terrorists - a label Tehran uses for hardline Sunni Muslim militants like Islamic State.

The group has claimed previous attacks in Iran, including deadly twin bombings in 2017 which targeted Iran's parliament and the tomb of the Islamic Republic's founder Ayatollah Ruhollah Khomeini.

Wednesday's killing of Shi'ite pilgrims came on the same day that Iranian security forces clashed with increasingly strident protesters marking the 40-day anniversary since the death in police custody of Mahsa Amini, a 22-year-old Kurdish woman.

Interior Minister Ahmad Vahidi blamed the protests sweeping Iran for paving the ground for the Shiraz attack, and President Ebrahim Raisi said Iran would respond, according.

"Experience shows that Iran's enemies, after failing to create a split in the nation's united ranks, take revenge through violence and terror," said Raisi, speaking before Islamic State released its claim of responsibility.

"This crime will definitely not go unanswered, and the security and law enforcement forces will teach a lesson to those who designed and carried out the attack."

The semi-official Tasnim news agency said the attacker shot an employee at the shrine entrance before his rifle jammed and he was chased by bystanders.

He managed to fix his gun and opened fire on his pursuers, before entering a courtyard and shooting worshippers. Several women and children were among the dead, it said.

 

Oil isn’t the reason for US-Saudi rift

Saudi Arabia decided to be the mature guys in a spat with the United States over oil supplies, the Kingdom's energy minister Prince Abdulaziz bin Salman said on Tuesday.

The decision by the OPEC Plus oil producer group led by Saudi Arabia this month to cut oil output targets unleashed a war of words between the White House and Riyadh ahead of the kingdom's Future Investment Initiative (FII) forum, which drew top US business executives.

The two traditional allies' relationship had already been strained by the Joe Biden administration's stance on the 2018 murder of Saudi journalist Jamal Khashoggi and the Yemen war, as well as Riyadh's growing ties with China and Russia.

When asked at the FII forum how the energy relationship with the United States could be put back on track after the cuts and with the December 05, 2022 deadline for the expected price-cap on Russian oil, the Saudi energy minister said: "I think we as Saudi Arabia decided to be the mature guys and let the dice fall".

"We keep hearing you 'are with us or against us', is there any room for 'we are with the people of Saudi Arabia'?"

Saudi Investment Minister Khalid al-Falih said earlier that Riyadh and Washington will get over their unwarranted spat, highlighting long-standing corporate and institutional ties.

"If you look at the relationship with the people side, the corporate side, the education system, you look at our institutions working together we are very close and we will get over this recent spat that I think was unwarranted," he said.

While noting that Saudi Arabia and the United States were solid allies in the long term, he highlighted the kingdom was very strong with Asian partners including China, which is the biggest importer of Saudi hydrocarbons.

The OPEC Plus cut has raised concerns in Washington about the possibility of higher gasoline prices ahead of the November US midterm elections, with the Democrats trying to retain their control of the House of Representatives and the Senate.

Biden pledged that there will be consequences for US relations with Saudi Arabia after the OPEC Plus move.

Princess Reema bint Bandar Al Saud, the kingdom's ambassador to Washington, said in a CNN interview that Saudi Arabia was not siding with Russia and engages with everybody across the board.

"And by the way, it's okay to disagree. We've disagreed in the past, and we've agreed in the past, but the important thing is recognizing the value of this relationship," she said.

She added, "A lot of people talk about reforming or reviewing the relationship" and said it was a positive thing as Saudi Arabia is not the kingdom it was five years ago.

Like previous years, the FII three-day forum that opened on Tuesday saw a big turnout from Wall Street, as well as other industries with strategic interests in Saudi Arabia, the world's top oil exporter.

JPMorgan Chase & Co Chief Executive Jamie Dimon, speaking at the gathering, voiced confidence that Saudi Arabia and the United States would safeguard their 75-year-old alliance.

"I can't imagine any allies agreeing on everything and not having problems – they’ll work it through," Dimon said. "I'm comfortable that folks on both sides are working through and that these countries will remain allies going forward, and hopefully help the world develop and grow properly."

The FII is a showcase for the Saudi crown prince's Vision 2030 development plan to wean the economy off oil by creating new industries that also generate jobs for millions of Saudis, and to lure foreign capital and talent.

No Biden administration officials were visible at the forum on Tuesday. Jared Kushner, a former senior aide to then-President Donald Trump who enjoyed good ties with Prince Mohammed, was featured as a front-row speaker.

The Saudi government invested US$2 billion with a firm incorporated by Kushner after Trump left office.

FII organizers said this year's edition attracted 7,000 delegates compared with 4,000 last year.

 

Energy market should be depoliticized, says Iranian Oil Minister

Energy market should be depoliticized, says Iranian Oil MinisterIranian Oil Minister Javad Oji said sanctioning the owners of the world’s biggest gas reserves will have devastating consequences for the environment, stressing that the global energy market should be depoliticized.

GECF Members account for 43% of the world's gas production and own 72% of the world's gas reserves; 55% of the gas transmission by pipeline and 50% of the liquefied natural gas (LNG) trade is also carried out by GECF member states.

 “Using energy as a political tool and sanctioning the most important owners of natural gas reserves will have irreparable consequences on the world’s environment and will make it impossible to achieve the United Nations’ sustainable development goals,” said Oji, addressing the 24th Ministerial Meeting of the Gas Exporting Countries Forum (GECF) in Cairo, Egypt.

“I believe that the realization of a global ecosystem with zero carbon emission will remain only a slogan without political will, financial resources, investment in infrastructure, and serious scientific and technological cooperation of all nations,” he said.

Underlining the important role of natural gas in the world’s energy transition, the official stated that the members of the GECF assembly should put new policies on the agenda to promote and facilitate natural gas consumption.

Oji further emphasized the need to pay more attention to environmental issues, saying, “As a person who has worked in engineering and management activities in Iran's gas sector for many years, I believe reducing carbon emissions and protecting the environment is possible considering the existing technical and engineering capabilities.”

Emphasizing that it is necessary for developing and developed countries to pay serious attention to new technologies in various fields such as carbon absorption, utilization, and storage of natural gas, and reducing the leakage of methane or blue hydrogen, he added, “Fortunately, new technologies for reducing the carbon emission in the natural gas production process are widely available if there is the political will to do so.”

The official finally stressed the need for improving the GECF status in the global gas market for ensuring the world's energy security, saying, “I suggest that joint thinking and construction cooperation among the members of the assembly should be promoted at strategic, managerial and technical levels.”

“I believe that the exchange of successful experiences among member countries at the mentioned levels is very important,” he added.

The ministerial meeting is the highest governing body of the forum, and according to the GECF statute, it is held once a year.

Algeria, Bolivia, Egypt, Equatorial Guinea, Iran, Libya, Nigeria, Qatar, Russia, Trinidad and Tobago, and Venezuela are 11 main members of GECF, and Malaysia, Norway, Iraq, Peru, Azerbaijan, UAE, and Mozambique are observer members in the forum.

 

Rishi Sunak faces huge task as Prime Minister

Rishi Sunak became Britain's third prime minister in two months on Tuesday, tasked with tackling a mounting economic crisis, a warring political party and a deeply divided country in one of the greatest challenges to confront any new leader.

The 42-year-old former hedge fund boss was asked to form a government by King Charles, and will seek to bring an end to the infighting and feuding at Westminster that has horrified investors and alarmed international allies.

Sunak, one of the richest men in parliament, will have to find deep spending cuts to plug an estimated 40 billion pound ($45 billion) hole in the public finances due to an economic slowdown, higher borrowing costs and a six-month program of support for people's energy bills.

With his party's popularity in freefall, Sunak will also face growing calls for an election if he moves too far from the policy manifesto that elected the Conservative Party in 2019, when then leader Boris Johnson pledged to invest heavily in the country.

Economists and investors have said Sunak's appointment will calm markets, but they warn that he has few easy options when millions are battling a cost of living crunch.

"With a recession in 2023 now increasingly likely, and the next general election in only two years' time, Rishi Sunak can expect a challenging premiership," Eiko Sievert at the Scope ratings agency told Reuters.

Sunak has warned his colleagues they face an "existential crisis" if they do not help to steer the country through the surging inflation and record energy bills that are forcing many households and businesses to cut back spending.

"We now need stability and unity, and I will make it my utmost priority to bring our party and our country together," he said as he was elected by his lawmakers on Monday.

Sunak, Britain's youngest prime minister for more than 200 years and its first leader of colour, replaced Liz Truss who resigned after 44 days following a "mini budget" that sparked turmoil in financial markets.

With debt interest costs rising and the outlook for the economy deteriorating, he will now need to review all spending, including on politically sensitive areas such as health, education, defence, welfare and pensions.

Reflecting the near constant state of turmoil in British politics this year, politicians, journalists and photographers once again crammed into Downing Street on Tuesday to hear a departing speech from Truss.

Speaking seven weeks to the day after she arrived as prime minister, Truss did not apologize for her short tenure and said she knew Britain was set for brighter days.

During her time in office the pound hit a record low against the dollar, borrowing costs and mortgage rates surged, and the Bank of England was forced to intervene to protect pension funds from collapsing.

Sunak will now start forming his cabinet, with some Conservative lawmakers hoping he will include politicians from all wings of the party.

He is expected to retain Jeremy Hunt as finance minister after the former foreign and health secretary helped calm volatile bond markets by ripping up most of Truss's economic program.

Investors will also want to know if Sunak still plans to publish a new budget alongside borrowing and growth forecasts on October 31, 2022 which would help inform the Bank of England's interest rate decision on November 03, 2022.

Sunak, a Goldman Sachs analyst who only entered parliament in 2015, must unite his party, aware that voters are increasingly angry over the antics at Westminster as the economy heads for recession.

He was blamed by many in the party when he quit as finance minister in the summer, triggering a wider rebellion that brought down Johnson.

While many expressed relief that the party settled on a new leader quickly, a sense of distrust remains among some while others questioned whether struggling families would relate, or ever vote, for a multimillionaire.

"I think this decision sinks us as a party for the next election," one Conservative lawmaker told Reuters on condition of anonymity.

Historian and political biographer Anthony Seldon told Reuters that Sunak would also be constrained by the mistakes of his predecessor.

"There is no leeway on him being anything other than extraordinarily conservative and cautious," he said.

Many politicians and officials abroad, having watched as a country once seen as a pillar of economic and political stability descended into brutal infighting, welcomed Sunak's appointment.

Sunak becomes Britain's first prime minister of Indian origin.