Indus Water Treaty crucial for peace between Pakistan and India

The Indus Water Treaty is crucial to the peace and stability of the South Asian region. The treaty provides a framework for the sharing of water resources between India and Pakistan, which are two of the most populous and powerful countries in the region. The treaty has been in place since 1960, and despite some disputes and issues, it has managed to prevent any major conflicts between the two countries over water resources.

Under the treaty, both India and Pakistan have certain rights and obligations. India has the right to use the waters of the eastern rivers (Sutlej, Beas, and Ravi) for its use, while Pakistan has the right to use the waters of the western rivers (Indus, Jhelum, and Chenab) for its use. Both countries are obligated to inform each other about any new projects being planned or constructed on the shared rivers.

However, the fast-tracking of hydropower projects in Jammu and Kashmir by India has raised concerns about the implementation of the treaty. Pakistan has accused India of violating the treaty by not providing timely and adequate information about the projects being constructed on the shared rivers. Pakistan believes that the fast-tracking of these projects will reduce the water flow downstream and have an adverse impact on its agriculture and economy.

The issue of water resources is critical for both India and Pakistan. The Indus River is the lifeline of Pakistan’s agriculture and economy, and any reduction in the flow of water downstream can have a significant impact on the country’s food security and economic growth. India, on the other hand, is also heavily dependent on water resources for its economic development, and the fast-tracking of hydropower projects is seen as an important step towards achieving its energy goals.

However, it is important to note that the successful collaboration on the Indus Water Treaty is critical to maintaining peace and stability in the South Asian region. Any disputes or conflicts over water resources can have far-reaching implications for the region’s security and stability. The sharing of water resources is a complex and sensitive issue, and any mismanagement or disputes can lead to tensions between countries.

Therefore, both India and Pakistan need to work together to resolve any disputes or issues that may arise regarding the implementation of the treaty. Both countries need to communicate openly and transparently with each other about any new projects being planned or constructed on the shared rivers. The World Bank, which brokered the treaty, should also play an active role in monitoring the implementation of the treaty and resolving any disputes or issues that may arise.

Moreover, the collaboration between India and Pakistan on the Indus Water Treaty can also serve as a model for other countries in the region. South Asia is home to many transboundary rivers, and the successful collaboration between India and Pakistan on the Indus Water Treaty can provide a template for other countries in the region to manage their shared water resources.

Indus Water Treaty is critical to the peace and stability of the South Asian region. The successful collaboration between India and Pakistan on the implementation of the treaty is crucial to maintaining peace and stability in the region.

Indus Water Treaty is a binding agreement between India and Pakistan that provides a framework for the sharing of water resources between the two countries. The treaty is inviolable, and both countries have certain rights and obligations under the treaty. However, the fast-tracking of hydropower projects in Jammu and Kashmir has caused issues with the treaty, primarily with regards to the western rivers of the Indus, which are allocated to Pakistan under the treaty. To ensure the inviolability of the treaty, both India and Pakistan need to work together to resolve any disputes or issues that may arise regarding the implementation of the treaty.

Indus water treaty has so far proven to be a formidable arrangement, withstanding wars and political upheaval for decades now. This is an amazing success of global rule based order. And it also speaks volume of commitment shown by India and Pakistan. The joint institutional mechanism developed by IWT has continued to work and collaborate.

Courtesy: South Asia Journal

Biggest financial crises of last four decades

Markets have experienced massive upheaval in the last month, prompted in part by two of the three largest banking failures in US history while Swiss lender Credit Suisse was bought by rival UBS Group AG in a merger engineered by Swiss regulators.

Fears of banking contagion remain, and investors are worried that global economies will suffer if the effects of higher interest rates torpedo more lenders. Here is a rundown of some of the biggest financial crises in the last 40 years:

US SAVINGS AND LOAN CRISIS

Over 1,000 savings and loan (S&L) institutions were wiped out in the crisis that unfolded throughout the 1980s, resulting in up to US$124 billion in costs to taxpayers. The upheaval was rooted in the unsound real estate and commercial loans made by S&Ls after the United States removed interest-rate caps on their loans and deposits, which allowed them to take on more risk.

JUNK BOND CRASH

After nearly a decade of supercharged growth, the junk bond market slumped in the late 1980s following a series of interest rate hikes by the Federal Reserve. Michael Milken had helped popularize the financial instrument, with many using it as a way of funding leveraged buyouts. But supply eventually outpaced demand, and the market tanked. Milken was charged with securities and reporting violations. He paid a US$200 million fine and served a 22-month sentence in jail.

MEXICAN PESO CRISIS

In a surprise move in December 1994, Mexico devalued its currency, the peso, after the country's current account deficit grew and its international reserves declined. The country ended up getting external financial support from the International Monetary Fund and a US$50 billion bailout from the United States.

ASIAN CURRENCY CRISIS

A massive outflow of capital from Asian economies in the mid-to-late 1990s put pressure on the currencies in the region, necessitating government support. The crisis kicked off in Thailand, where authorities had to devalue the Thai baht after months of trying to defend the currency's peg to the dollar drained its forex reserves. The contagion soon spread to other markets in Asia including Indonesia, South Korea and Malaysia. Global bodies, including the International Monetary Fund and the World Bank, had to step in with rescue packages amounting to more than $100 billion for the economies.

LONG TERM CAPITAL MANAGEMENT (LTCM)

The highly leveraged US hedge fund lost more than US$4 billion in a span of a few months in 1998 following the Asian crisis and a subsequent financial crisis in Russia. The fund had a huge exposure to Russian government bonds, and took major losses after Russia defaulted on its debt and devalued its currency. The New York Federal Reserve Bank helped broker a US$3.5 billion private-sector bailout for LTCM and the Federal Reserve cut interest rates three times in successive months.

GLOBAL FINANCIAL CRISIS OF 2008

The biggest financial crisis since the Great Depression was rooted in risky loans to shaky borrowers, which started to lose value after central banks raised interest rates in the period leading up to the crisis. Many companies had taken big positions in highly leveraged mortgage bonds that had proliferated in previous years. The crisis led to the collapse of some storied Wall Street giants including Bear Stearns and Lehman Brothers, both of whom had large positions in mortgage securities. The debacle also engulfed insurance giant American International Group, which needed a US$180 billion bailout. The US government closed Washington Mutual, in what was largest-ever failure of a US bank. The "Great Recession" that resulted was the worst economic downturn in 70 years.

EUROPEAN DEBT CRISIS

Spurred by the 2008 financial crisis, surging debt at some of the major European economies led to a loss of confidence in the region's businesses. Greece was among the hardest hit as its primary industries of shipping and tourism were economically sensitive. It was the first to be bailed out by other euro zone economies. Portugal, Ireland and Cyprus also were rescued from default, and unemployment surged, particularly in the countries bordering the Mediterranean Sea.

 

 

 

 

 

Iraq halts northern crude oil exports to Turkey

Iraq halted 450,000 barrels per day (bpd) of crude exports from the semi-autonomous Kurdistan region and northern Kirkuk fields on Saturday, an oil official told Reuters, after the country won a longstanding arbitration case against Turkey.

In a case dating from 2014, Baghdad claimed that Turkey violated a joint agreement by allowing the Kurdistan Regional Government (KRG) to export oil through a pipeline to the Turkish port of Ceyhan. Baghdad deems KRG exports as illegal.

"Iraq was officially informed by the International Court of Arbitration final ruling on Thursday and it was in favour of Iraq," a senior oil ministry official said.

Turkey informed Iraq that it will respect the arbitration ruling, a source said.

Turkish shipping officials told Iraqi employees at Turkey's Ceyhan oil export hub that no ship will be allowed to load Kurdish crude without the approval of the Iraqi government, according to a document seen by Reuters.

Turkey subsequently halted the pumping of Iraqi crude from the pipeline that leads to Ceyhan, a separate document seen by Reuters showed.

On Saturday, Iraq stopped pumping oil through its side of the pipeline which runs from its northern Kirkuk oil fields, one of the officials told Reuters.

Iraq had been pumping 370,000 bpd of KRG crude and 75,000 bpd of federal crude through the pipeline before it was halted, according to a source familiar with pipeline operations.

"A delegation from the oil ministry will travel to Turkey soon to meet energy officials to agree on new mechanism to export Iraq's northern crude oil in line with the arbitration ruling," a second oil ministry official said.

It could take years to refill oil reserve, says US Energy Secretary

It could take years for the United States to refill the Strategic Petroleum Reserve, the energy secretary told lawmakers, after sales directed by President Joe Biden last year pushed the stockpile to its lowest level since 1983.

"This year, it will be difficult for us to take advantage of this low price," Energy Secretary Jennifer Granholm told US representatives in a congressional hearing. "But we will continue to look for that low price into the future because we intend to be able to save the taxpayer dollars."

Biden administration officials have said they want to refill the reserve, after last year's historic sale of 180 million barrels, when the oil price consistently is around US$70 a barrel. Oil from that sale sold at about US$94 per barrel.

The price for benchmark West Texas Intermediate crude futures has fallen to around US$70 per barrel this week on worries about the economy amid crises at several banks. Granholm said at the hearing the administration wants to buy oil back at under US$72 a barrel.

The Department of Energy said last month it was implementing a three-part strategy to refill the reserve in the long term, including repurchases with about US$4.5 billion in revenues from previous sales, returns of more than 25 million barrels of oil from previous exchanges, and working with Congress to avoid "unnecessary sales unrelated to supply disruptions."

The department succeeded last year in persuading Congress to cancel sales it had mandated of about 140 million barrels that had been set to take place from fiscal year 2024 to fiscal year 2027.

Still, the DOE is moving forward with a sale of 26 million barrels from the SPR that was mandated by Congress in earlier years to help fund the federal budget. The oil will be delivered from April 01 to June 20.

Granholm said that sale and maintenance at two of the reserve's four sites will make it difficult to buy back oil this year.

Bryan Mound in Texas and Bayou Choctaw in Louisiana were both undergoing planned life extension work, the department said later.

The SPR currently holds about 372 million barrels, the lowest since 1983, in hollowed-out salt caverns along the Gulf Coast. Steel pumps and other equipment are constantly exposed to moist salty air.

US strikes Iran backed facilities in Syria

The US military carried out multiple air strikes in Syria on Thursday night against Iran-aligned groups whom it blamed for a drone attack that killed an American contractor, wounded another and also hurt five US troops, the Pentagon said.

Both the attack on US personnel and the retaliation were disclosed by the Pentagon at the same time late on Thursday.

The attack against US personnel took place at a coalition base near Hasakah in northeast Syria at approximately 1038 GMT on Thursday, it said.

The US intelligence community assessed that the one-way attack drone was Iranian in origin, the military said, a conclusion that could further aggravate already strained relations between Washington and Tehran.

Although US forces stationed in Syria have been targeted by drones before, fatalities are extremely rare.

US Defense Secretary Lloyd Austin said the retaliatory strikes were carried out at the direction of President Joe Biden and targeted facilities used by groups affiliated with Iran's Islamic Revolutionary Guards Corps (IRGC).

"The air strikes were conducted in response to today's attack as well as a series of recent attacks against Coalition forces in Syria by groups affiliated with the IRGC," Austin said in a statement.

"No group will strike our troops with impunity."

The Syrian Observatory for Human Rights, a group that monitors the war in Syria, said the US strikes had left eight pro-Iranian fighters dead in Syria.

 

Chad nationalizes assets owned by Exxon Mobil

Chad has nationalized all the assets and rights including hydrocarbon permits and exploration and production authorizations that belonged to a subsidiary of Exxon Mobil, the Central African nation's energy and hydrocarbons ministry said in a statement on Thursday.

Exxon Mobil said in December 2022 that it had closed the sale of its operations Chad and Cameroon to London-listed Savannah Energy in a US$407 million deal, but the Chadian government contested the agreement, saying the final terms were different from what Exxon Mobil had presented.

It warned that it may ask courts to block Savannah's purchase of Exxon's assets in the country and take further steps to protect its interests.

Exxon's assets included a 40% stake in Chad's Doba oil project, which comprises seven producing oilfields with combined output of 28,000 barrels per day (bpd).

It also included Exxon's interest in the more than 1,000 kilometre (621 mile) Chad/Cameroon pipeline from the landlocked nation to the Atlantic Gulf of Guinea coast through which its crude is exported.

 

 

 

 

 

 

Foundation stone laid for Mall of Srinagar

In a big thrust for the development of Jammu & Kashmir, the Lieutenant Governor Manoj Sinha laid the foundation stone for the Mall of Srinagar, being developed by Dubai based EMAAR. Middle East retail major Lulu Hypermarket will be the anchor tenant of this ambitious project.

An MoU to this effect was signed by Rejith Radhakrishnan, Chief Operation Officer of Lulu India and Amit Jain, Group CEO of EMAAR on the side lines of groundbreaking ceremony of Mall of Srinagar at Sempora in Srinagar. The Indian rupee 250 crore project will be built on 1 million square feet of area and be ready by 2026.

As per the MOU, LuLu Group will be setting up its first hypermarket in J&K at the Mall of Srinagar with an approx. size of 100,000 sq. feet and will employ about 1,500 youth from the state directly for its operations after necessary training and development.

The occasion was also graced by Aman Puri, Consul General of India in Dubai, Maj. Gen. Sharafuddin Sharaf, Chairman of UAE India Business Council and Vice Chairman of Sharaf Group, Arun Kumar Mehta, Chief Secretary, J&K Government and other dignitaries.

“We are excited to enter J&K retail sector with this most modern hypermarket in this unique mall, which is being developed by Emaar Properties” said Yusuffali MA, Chairman of Lulu Group. “I am sure this project will not only boost the economic and tourism activities in the state but also give considerable employment opportunities to the local youth and support the farming sector immensely”, he added.

During the UAE visit by Lt. Gov Sinha last year Lulu Group had signed an MoU with J&K government to set up a “food processing and logistics hub” as part of their investments plans for Jammu & Kashmir to the tune of Indian rupee 200 crore in the first phase.

“Currently, the LuLu Group is exporting apples, saffron and dry fruits from the state to Lulu Hypermarkets in the Middle East, Egypt and Far East”, said Rejith Radhakrishnan

Abu Dhabi based Lulu Group currently runs 248 Hypermarkets and Supermarkets across GCC countries, Egypt, Far East and India employing more than 65,000 people from various countries.

Courtesy: Saudi Gazette