Tuesday, 7 March 2023

National Grid issues warning as UK braces for five days of snow and ice

The National Grid Electrical System Operator has fired up its emergency coal stations as the coldest night of the year so far looms in the UK.

A warning has been issued by the grid as the cold spell this evening could mean more energy is needed to keep Britain's lights on.

The lowest temperature recorded so far this year is -10.4C in Scotland. However, the mercury could drop to -15C in some sheltered Scottish glens.

The National Grid Electrical System Operator (ESO) is responsible for moving electricity around the UK and ensuring that the nation’s energy supply meets national demand.

The Met Office has already issued a yellow warning for snow and ice, with more areas in the Midlands, much of Wales and the southeast, including London, under alert for snow on Tuesday morning as Arctic air sweeps across the country.

The ESO has confirmed that four of its five winter coal units will be warmed today in preparation.

The group said that the notification was “not confirmation” that the unit will be used but it “will be available to the ESO, if required”.

In a message released on Tuesday morning it said, “The ESO has issued an additional notification that we will warm four of our five winter contingency coal units for potential use on Tuesday 07 March.”

It added, “The ESO as a prudent system operator has developed these tools for an additional contingency to operate the network as normal.

“This does not mean electricity supplies are at risk.”

The energy group has also issued an electricity margin notice (EMN) for four hours between 4.30pm to 8.30pm this evening.

The National Grid again noted that this was a routine tool that it used most winters which means that it asks generators to make available any additional generation capacity they may have.

This is due to the heightened demand for energy it expects for this evening. It is the fourth time this winter that the National Grid has issued the notification.

Met Office spokesperson Grahame Madge said colder overnight conditions are set to hit cities this week, with the mercury plunging to -4C in London and -6C in Birmingham and Belfast.

“We expect these conditions to remain in place until at least next weekend and possibly longer because sometimes these conditions can be quite stubborn and not easily subject to change.”

Snow began falling in Northern Scotland on Monday afternoon, and more than 20cm of it could accumulate over high ground in Scotland. More than 5cm is likely to accumulate at lower levels in the northeast of the UK.

And more snow is expected later in the week, with many areas likely to see snow at some point. However, after an extremely cold Tuesday, conditions remain slightly uncertain for Wednesday when a battleground is expected to be set up as milder Atlantic air from the south meets colder Arctic air from the north.

There was warnings that temperatures could drop almost six degrees lower than the coldest last March, when they reached -9.1C in Aboyne, Aberdeenshire.

The all-time low for the UK for March occurred in 1958, when the mercury dropped to -22.8C at Logie Coldstone, Aberdeenshire.

The Met Office warned that travel disruption was likely, and journey times by car, train and bus may take longer than usual. People are at risk of slipping and falling on icy patches of untreated roads, pavements and paths, while some rural communities could become cut off from the power grid and phone services.

 

Monday, 6 March 2023

Pakistan: Sale of petroleum products down 21%YoY

Sales of petroleum products were reported at 1.22 million tons for February 2023, a fall by 16%MoM and 21%YoY. This marks the biggest monthly decline after July 2022, when it went down 26%MoM. The fall can be attributed to significant price hikes in MS and HSD during the last 45 days.

In addition, there were severe fuel shortages at petrol stations in Central Punjab, as talks of price hikes remained rampant throughout the month. This led to dealers choosing to stockpile fuel instead of continuing with normal operations.

The situation was further exacerbated by OMCs which struggled to obtain timely shipments of petroleum products, due to the sharp decline of the PKR during the period. This resulted in delayed L/C clearances and significant exchange losses for the importing entities, ultimately leading them to restrict their supplies to dealers throughout the country.

Finally, lesser working days also contributed to the monthly decline of POL sales during February 2023.

On an 8MFY23 basis, total POL sales remained down by 19%YoY, stuck at 11.69 million tons as against 14.45 million tons for the same period last year.

The decline is largely due to a drop in organic demand, as petroleum sales tend to be closely tied to the overall health of the economy. This is evidenced by a 3.7% decline in LSM activity during 1HFY23, a 7.3%YoY drop in power generation during the 7MFY23, and a 42%YoY decrease in auto sales during the same period.

The ongoing wave of inflationary pressures has also gripped the economy, resulting in consumers choosing to avoid leisurely travel amidst reduced purchasing power.

It is worth mentioning that the prices of both MS and HSD have risen by PKR117 and PKR136 per liter to PKR267 and PKR280 per liter respectively. These prices represent an increase of 78%/94% as against March 2022, in line with the current government's plan to pass on the full cost of supply and levies to consumers.

HASCOL emerged the most resilient amidst the broad based industrial decline as total volumes for the month was reported at 27,000 tons, up by 4%MoM and 5%YoY. This came on the back of HASCOL’s approach to remobilize most of its retail depots by CY22 end, as most closed up due to its dealer network fallout back in CY20. On the retail front (MS, HSD, HOBC), PSO and APL ended the 8MFY23 period with market shares standing at 49.2%/8.5%. Finally, share of smaller players (bottom 25) stood at 6.3% as against 6.6% last month.

With two-thirds of the year behind us – the demand for petroleum products hasn't looked this bad in years since the Covid’19 pandemic struck. Overall, the broad based economic slowdown continues to haunt the sustainability of the sector as risen prices and dampened industrial/commercial activity have kept offtakes under pressure.

Rampant inflationary pressures in the coming quarters alongside a depressed GDP outlook for the remaining months compels the analysts to assume negative volumetric growth for the industry.

 

Israel: Pilots refused to take Netanyahu and his wife to Italy

According to The Jerusalem Post, Israel's national airline El Al pilots left Prime Minister Benjamin Netanyahu and his wife, Sara, high and dry after no one volunteered to fly Israel's first couple out to Rome for a state visit to Italy scheduled later this week.

The deadline of a tender issued by Israel's national airline, as is required when the prime minister is set to depart on a commercial airline, expired at 2:00 pm on Sunday and was met with indifference by El Al pilots and flight attendants, who refused to take up the opportunity.

Later on Sunday evening, El Al announced that it had finally found a crew to fly the Netanyahu couple out to Italy.

In a statement issued following the deadline's passing, El Al said, "The issue of manning the prime minister's flight is yet to be resolved due to a shortage of qualified pilots in our Boeing 777 squadron, among other reasons.”

"We are working to man this flight...in accordance with company procedures, as we have done countless times before," El Al wrote. "Since its establishment, El Al has flown heads of state for important national missions and will continue to do so in the future, as it is required."

As per El Al protocol, the squadron's commissioner is obliged to pilot the prime minister's flight. However, it was unclear where the airline found a cabin crew and a co-pilot as El Al's staff appeared unwilling to fly Netanyahu out.

Netanyahu is expected to fly out on Thursday to meet with Italian Prime Minister Giorgia Meloni, who last publically spoke with her Israeli counterpart in November to send her congratulations for his election victory.

Following reports of the lack of volunteers in El Al, Transportation Minister Miri Regev announced she intends to open the flight tenders to other Israeli airlines such as Arkia and Israir, according to Israeli media.

The refusal by the pilots to man the prime minister's flight joins an earlier statement by 37 out of the 40 reserve pilots in the Israeli Air Force's 69th fighter squadron, who announced they will not attend a pre-scheduled training session this coming Wednesday in protest of the government's judicial reform.

The reserve pilots announced their decision Sunday to the heads of the air force and their squadron commander. Instead of training, they have said they will hold a dialogue regarding the issue under debate outside of government offices.

 

Wilson Center Launches Entrepreneurship Network in Jordan

On Monday, the Wilson Center’s Middle East Program, in partnership with the US Embassy in Amman, launched the Riyada Entrepreneurship Network at the “Entrepreneurship in MENA: The Path Forward” workshop, hosted at Flat6Labs.

In November 2021, the Wilson Center’s Middle East Program launched Riyada, a podcast about entrepreneurship and innovation in the Middle East and North Africa region with funding from the US Embassy in Amman, Jordan.

Today’s workshop celebrates the commitment of emerging as well as established entrepreneurs, especially those who have been part of the podcast, to building a vibrant startup ecosystem, which will provide local disruptors and key stakeholders with a platform to exchange ideas for how we can, together, support inclusive and diverse economic growth.

Featuring 50 interviews of new and seasoned entrepreneurs, venture capitalists, educators, and several stakeholders from across the region’s entrepreneurship ecosystem, the Riyada podcast sought to highlight stories from the field to better understand the challenges and opportunities in MENA’s entrepreneurship landscape, which according to tech investor WAMDA, has “attracted a record-breaking US$3.94 billion in funding in 2022, with the heaviest deal concentration in the UAE, Saudi Arabia, and Egypt.” 

Riyada hosted guests from various countries in MENA including Jordan, Egypt, Iraq, Saudi Arabia, the UAE, Qatar, Tunisia and Lebanon, as well as diaspora communities in Germany and the United States.

“The United States and the American people are proud of our soft power contributions, to include assistance, cultural exchanges, trade and particularly the encouragement of entrepreneurs, the motor of all development, as we are of our contributions to mutual security here in Jordan and throughout the region,” noted Ambassador Jim Jeffrey, Chair of the Wilson Center’s Middle East Program. “We are grateful to the US Embassy in Amman for supporting this Wilson Center initiative,” he added.

The Riyada podcast garnered thousands of listeners from the region, North America, and Europe and included two Jordanian co-hosts along with MEP Director Merissa Khurma, Rajaei Sahouri of the Straight Up Start Up, and Imad Shawa of Howdy Arabia.

“The conversations I had with our guests on Riyada were illuminating, inspiring but also sometimes equally frustrating given the barriers that still exist in many MENA countries; especially amongst women and marginalized communities,” noted Khurma.

She added, “The data we collected from these conversations not only in identifying the barriers to entry and to scale but also regarding possible solutions to address these problems, has deepened our knowledge of the nuances of MENA’s entrepreneurship journey.”

“Co-hosting Riyada with Merissa has been a learning experience and a chance to meet incredible leaders and dive deep into their worlds and sectors. An entrepreneur’s dream! The entire team at the Wilson Center made the process seamless and encouraged the guests to be candid, which made for some deeply insightful conversations,” noted Shawa.

Stefanie Altman-Winans, US Embassy Acting Deputy Chief of Mission, shared her appreciation of the Wilson Center’s efforts, and those of the entrepreneurs joining the event, “Today’s event is the culmination of the wonderful efforts of the Woodrow Wilson International Center for Scholars, the Embassy’s Public Affairs Section, and of course the many contributors and stakeholders from the entrepreneurship ecosystem. Thank you for your continued commitment to inspire the next generation of innovators, disrupters, and game changers. It is because of your collective courage, creativity, resilience, and commitment to build, that the road less traveled is now a road often taken.”

Seatrade Maritime collaborates with DSAA for the development of Dubai shipping industry

Seatrade Maritime and the Dubai Shipping Agents Association (DSAA) have signed a Memorandum of Understanding (MoU), aimed at supporting and promoting shared objectives.

The main objective of the MoU is to advance the growth and development of the shipping industry in the region, by promoting the interests of the shipping agents’ community in Dubai, raising standards in the sector, fostering stronger relationships, increasing cooperation between key stakeholders, and promoting the systematic and orderly training of professionally-qualified personnel. 

As part of the agreement, Seatrade Maritime will provide the DSAA with the status of "Supporting Organization" for the Seatrade Maritime Logistics Middle East conference, the leading regional event for the logistics and maritime industries, scheduled to be held at the Dubai World Trade Centre from 16 to 18 May, 2023.

This will help to promote the work of the DSAA to Seatrade's audience and provide the association with greater exposure to potential clients.

Commenting on the partnership, Nayana Nandkumar, Manager, DSAA said, "We are delighted to partner with Seatrade Maritime. This alliance will enable us to expand our reach and promote our services to the massive audience that connects with Seatrade Maritime. We also look forward to working together to support the growth and development of the maritime industry in Dubai and the wider region. This collaboration demonstrates our dedication to promoting the interests of the Dubai community of shipping agents. To accomplish our common goals, we look forward to working closely with Seatrade Maritime.”

By having shipping agencies represented at significant think tank events; the cooperation with Seatrade Maritime will also help DSAA advance its goals of promoting the shipping sector. Together with the appropriate government agencies, it will help DSAA maintain its efforts to strengthen industry standards.

The alliance will also improve and deepen the connections and teamwork between shipping agents, principals, shippers, customs officials, and other governmental, national, and international trade organizations.

Emma Howell, Middle East Development Director, Informa Markets Maritime & Cruise portfolio said, “DSAA has played a vital role in the development of the maritime industry in Dubai, which is critical to the UAE's economy, and we look forward to supporting their mission through our platform. We believe Seatrade Maritime Logistics Middle East will provide a forum for participants from diverse industrial sectors to network and share ideas, thereby contributing positively to the development of the maritime industry in the region."

"The partnership with DSAA is a testament to Seatrade Maritime's commitment to promoting collaboration and innovation, and ensuring that its events serve as a platform for stakeholders to help in driving the sector forward.”

Chris Morley, Group Director, Seatrade Maritime said, “Seatrade Maritime's partnership with the DSAA is aimed at ensuring that the events we organize, such as the Seatrade Maritime Logistics Middle East conference, are inclusive and cater to the objectives of multiple sub-sectors of the regional maritime community. Our conference will provide a platform for participants from various segments of the industry to interact and exchange ideas. The partnership with DSAA will enhance the value proposition of Seatrade Maritime's events and it will ensure that we remain beneficial to all stakeholders in the maritime industry.”

 

Sunday, 5 March 2023

Pakistan must get ready to import cotton

Cotton arrival in Pakistan decreased 34.5%YoY shows data released by the Pakistan Cotton Ginner’s Association (PCGA). The Government of Pakistan must announce ‘Cotton Import Policy’ at the earliest.

It may be recalled that in the past cotton import was allowed from India, but last minute change in policy causes serious problems for the millers and also plunged export of textiles and clothing from Pakistan.

According to the report, cotton arrival in Pakistan declined to 4.875 million bales as of March 01, 2023 as compared to 7.442 million bales during the same period last year, a fall of 2.567 million bales or 34.5%.

The decline in cotton arrival is attributed to the flash floods in Pakistan, which devastated large swathes of agricultural land in the country, especially in Sindh and Baluchistan.

Cotton is an essential raw material for the country’s textile sector and the situation is alarming for Pakistan’s cash-strapped economy, which is already facing depleting foreign exchange reserves.

As per the PCGA data, cotton arrival reported a steep fall in Sindh. Cotton arrival in the province was reported at 1.879 million bales.

Similarly, cotton arrival in Punjab was reported at 2.996 million bales as compared to 3.929 million bales a year ago.

Industrialists have expressed concern over the ongoing slump in the textile sector. All Pakistan Textile Mills Association (APTMA) has urged the federal government for a level playing field by implementing a uniform gas price of US$7 per MMBtu for the export industry across the country.

APTMA also warned that the decision of the government to suspend the regionally competitive energy tariff (RCET) of electricity for Export Oriented Units (EOUs) will hurt the textile industry, particularly in Punjab.

 

Arab reluctance to react to Iranian protests

Wilson Center has tried to find an explanation for the lack of Arab support in highlighting the actions of Iranian ruling regime. Its efforts could be termed ‘Killing two birds with one stone’. Not only has it maligned Iran, but also Arab States for not opposing Iran because they also don’t like opposition.   

When protests in Iran broke out in September 2022 following the killing of 22-year-old Mahsa Amini by the morality police, the world showed immediate support for the outraged Iranian women who took to the streets. Unlike before, these protests gained momentum as popular demands shifted from greater freedoms and economic reforms to the overthrow of the oppressive regime. The Iranian government’s harsh repression sparked international condemnation and sanctions against officials and entities, including the morality police itself.

As compared to strong responses from Western nations, Arab governments have stayed noticeably silent. This pattern of silence from Arab governments on internal Iranian issues, in contrast to Iranian involvement in Arab protests and revolutions, has been evident since the 2009 ‘green scarf movement’ in Iran and raises questions about the relationship between Arab states and Iran during times of popular upheaval.

While certain Arab nations, including Saudi Arabia, harbor a desire for the downfall of the Iranian regime, their reluctance to engage with Iran’s protests and internal politics is due to a multitude of challenges and constraints.

Many Arab governments, particularly those in the Gulf region, have a complex relationship with Iran. They may disapprove of the suppression of protests, but they also see Iran as a regional rival and may not want to give the impression of supporting domestic dissent, in effect allowing Iran to justify its interventionist policies elsewhere in the region.

The GCC nations, particularly Saudi Arabia, are grappling with the uncertainty surrounding the potential consequences of taking a unilateral adversarial approach towards Iran amid concerns about US security commitments and a decline in bilateral relations. Nevertheless, since the early days of the protests, Iranian authorities have repeatedly blamed foreign nations, including Saudi Arabia, for instigating the demonstrations.

IRGC Commander-in-Chief Hossein Salami warned the Saudi leadership, saying, “You are involved in this matter and know that you are vulnerable; it is better to be careful.” This warning was in reference to media supported by Saudi Arabia, such as funding for Iran International TV, which broadcasts in both Persian and English from London. It also refers to other Saudi-funded media outlets like Al-Arabiya and newspapers like Al-Sharq Al-Awsat, Okaz, Al-Riyadh, and Al-Madina, as well as Qatari and Jordanian newspapers. Arab News, a Saudi English-language newspaper, even dedicated special coverage to the protests.

To such accusations, Prince Faisal bin Farhan, the Saudi Foreign Minister stated, “A country that strengthens itself with good governance and a clear vision does not need to turn to the outside, and the Kingdom firmly adheres to the principle of non-interference in other countries’ internal affairs.”

Meanwhile, the Wall Street Journal reported that Iran was planning to attack Saudi Arabia, either directly or through its allies, such as the Houthis in Yemen, allegedly to distract from the protests.

Indeed, there is a state of uncertainty regarding the trajectory of events within Iran that raises four concerns:

First, it is unclear whether the current wave of protests will be more impactful than previous ones in affecting the regime. Given the past failures of protest movements to achieve their demands, it is understandable for Arabs to expect the current protests to fail or remain focused solely on reforms without aiming for regime change.

Second is the possibility of a desperate retaliation from the regime on neighboring states and interests should the protests escalate to the point of overthrowing the government—the ‘Samson option.’

Third is whether the support for the demonstrations will pressure the regime to respond positively to the JCPOA negotiations or vice versa.

Fourth is what the new regime will look like if the mullahs’ regime falls (to avoid repeating the deception of the 1979 revolution) and the role of opposition groups already plagued by sharp internal division.

Comparably, the silence and reticence of Arab capitals towards the Iranian protests are rooted in their varying relationships with Iran and their perceptions of the threat posed by the Islamic Republic.

Countries like Saudi Arabia, the United Arab Emirates, and Bahrain hold a hostile attitude toward Iran, while Iraq, Syria, and Algeria maintain close ties and similar ideologies. Oman tries to maintain a balancing act between Iran and Saudi Arabia, while Qatar has strong economic connections with Iran that have only grown stronger in recent years after the GCC blockade in 2017.

 In some ways, this explains Al Jazeera’s limited media coverage of the protests in Iran compared to that of the Arab Spring uprisings. But at least the Qatari Foreign Minister, in his interview with Bloomberg, indicated that “We are opposing using violence by security forces against civilians whether a woman or a man. This is a domestic issue, and we don’t normally interfere in domestic issues with countries.”

Arab governments may be hesitant to speak out against the Iranian government’s repression of protests due to their fear of a domino effect. This fear stems from the potential for revolutionary contagion, as seen in the Iran Islamic Revolution and Arab Spring Uprisings, and the potential undermining of ideological ties with Iran.

It is clear that since the Arab Spring uprisings, the change in the power dynamic in the region has worked in Iran’s favor, allowing it to expand the axis of resistance it leads, particularly to the detriment of Saudi Arabia.

On the other hand, these Arab governments may avoid taking a stance on the issue to avoid drawing attention to their own history of suppressing protests and to prove their goodwill and non-interference in Iran’s internal politics on the principle of good neighborliness—moral grandstanding. They believe this would strengthen their negotiating positions with Iran on outstanding and complex issues and strengthen their legitimacy in the international community.

Arabs and Iranians share the same region and religion. However, they have proud and distinct heritage, speak different languages and follow different branches of Islam, with Arabs predominantly Sunni while Iranians are Shiite. These cultural and linguistic differences create communication barriers and binary stereotypes, making it difficult to understand each other’s current common interests and demands.

Arab and Gulf media focus primarily on Iran’s regional influence and power struggles but pay little attention to local issues such as popular protests and human rights violations against minorities.

The lack of meaningful Arab media dedicated to in-depth coverage of Iranian society has heightened the divide between the Arab and Iranian peoples. The deliberate media stereotyping that portrays Iran merely through its regime and regional behavior, viewed from a narrow religious perspective, obscures the overall picture of Iranian society and erodes the trust and sympathy of the Arab public.

As against this, Iran has a vast media apparatus aimed at both the Arab and Iranian publics that reflects the views of the Iranian regime and presents political events through ideological and sectarian lenses.

Arab elites, especially after the Arab Spring, continue to face restrictions on freedom of demonstration and expression. Indeed, this impedes their ability to back advocacy campaigns for the protests in Iran organized by civil society.

Authorities are balancing a political equation that prevents them from officially supporting the protests in Iran. Nevertheless, some interaction with the protests, such as solidarity statements, condemnations, and vigils, can be observed in a few Arab capitals and elsewhere in the diaspora.

In Arab countries such as Lebanon and Iraq, which have close ties to Iran, any upheaval in Iranian politics could be viewed as a window of hope for those who grapple with their own internal struggles to challenge Iranian political influence.

In Lebanon, for example, Fe-male, a feminist organization, held a vigil to show support for the Iranian women protesting against mandatory veiling under the title “From us to you, [sending] all our love and support.” The vigil featured slogans in Arabic and Persian, including mantra of the protesters, “Woman, Life, Freedom.”

Other activist groups also sought to organize a protest in front of the Iranian embassy in Beirut, calling it “From Tehran to Beirut, the killer regime is one,” but failed amid threats from Hezbollah’s militias.

In Iraq, some women on social media launched the “No to Compulsory Hijab” campaign to support Iranian women facing regime repression and the mandatory dress code.

Also, in Tunisia, human rights and feminist organizations held a rally outside the Iranian Cultural Center to express their support for women in Iran. The demonstrators denounced the discrimination and mistreatment of women in Iran and chanted slogans such as “Tunisian women support Iranian women,” “Here to voice our solidarity with Iranian women,” and “Revolution and freedom.”

The International Federation for Human Rights (FIDH), including a coalition of Arab feminist and human rights groups, issued a statement on October 7, 2022, to express solidarity. The statement, ‘We stand in solidarity with women and demonstrators in Iran,’ condemned the suppression of peaceful protests.

We likely won’t see decisive Arab reactions to the protests in Iran any time soon. Despite Arab grievances to Iran’s regional behavior, states will maintain political neutrality given the uncertain trajectory of the protests.

Furthermore, they may fear exposing themselves ideologically if they endorse foreign protests. Lastly, in a cultural dimension, there is already a wide gulf between how Arabs and Iranians perceive each other. Despite what limited civic action we have seen, these factors inhibit any broad social expression of solidarity as seen in the west.

With the challenging and fading prospects of altering Iran’s behavior or the entire regime from within, Arabs still have other choices. These include waiting for a full-fledged revolution in Iran, capitalizing on international stances and sanctions, and luring its allies to abandon it, as were tried recently with China, Russia, and Iraq.