Arab League marks 75th anniversary of Nakba

As the 75th anniversary of Nakba (the catastrophe) is marked, it remains paramount that the world should not forget the Zionist regime’s crimes against the Palestinian people, said the Arab League on Monday.

Marking the occasion during an event, a statement by Arab League Secretary General Ahmad Aboul-Gheit — delivered on his part by Assistant Secretary for Palestinian sector affairs Ambassador Saeed Abu-Ali — said that the International Criminal Court (ICC) has an imperative to conduct a swift investigation into the ongoing crimes committed by Israel since its so-called inception.

International organizations, including the UNSC, must take a stance to end the Israeli occupation of Palestinian land to pave the way for the establishment of a Palestinian state within the 1967 borders and centered on the capital of east Jerusalem.

According to Aboul-Gheit’s statement, the international community must also take action against the outrageous extreme right- wing policies of the Israeli government, which was antagonizing the people of Palestine.

The current Israeli occupation government refuses the two-state solution and blesses all actions aimed at boost illegal settlements throughout Palestinian lands.

Aboul-Gheit stressed that the Palestinian people have had enough of aggression and injustice that lasted for over seven decades starting 1948 when over 800,000 Palestinians were kicked off their lands and homes.

The Zionist forces had destroyed 531 towns and villages during Al-Nakba. Some 70 acts of genocide were carried out with 15,000 Palestinians killed in cold-blood, the statement noted, saying that since Al-Nakba some 100,000 Palestinians have lost their lives.

The impact of the day also affected over 5,000 Palestinians who dwelled in Israeli jails without justification or reason, the statement affirmed.

Also marking the occasion was member of the executive committee of the Palestinian Liberation Organization (PLO) Dr. Ahmad Abu-Houli who stressed the importance of lifting the injustices befalling on the Palestinian people.

He called for a specialized committee of Arab experts to look into ways to free Palestinian prisoners in cooperation with the international community, saying that their cause must be highlighted worldwide.

An international conference should be held to protect Palestinian prisoners organized by the Arab League and similar to the one held in Iraq back in 2012, he added.

Iran to eliminate US dollar in trade with Oman

In a meeting between the governor of the Central Bank of Iran (CBI) and a senior trade delegation from Oman on Monday, the Iranian side expressed complete readiness for eliminating the United States dollar from the two countries’ trade transactions.

Speaking at the meeting, CBI Governor Mohammadreza Farzin, who is also the head of the Iran-Oman Joint Economic Committee, said the strategic policy of the Central Bank of Iran is to cut ties with the US dollar in foreign exchange and trade, the CBI portal reported.

“We have sound economic and political reasons for this strategy, because, on one hand, the US uses the dollar as a political tool, and on the other hand, other currencies, especially in Asia are getting stronger against the dollar,” Farzin explained.

Referring to the complete readiness of the CBI to reduce and eliminate dollar exchanges from the cycle of commercial and economic transactions between Iran and Oman the official said, “The grounds for conducting economic and commercial transactions based on the national currencies of the two countries are fully prepared.”

Referring to the positive negotiations between Iran and Oman last year regarding the development of monetary and banking relations along with trade relations between the two countries Frazin stated, “Iran is ready for international methods like clearinghouses, multilateral monetary agreements and bilateral monetary agreements in trade transactions with Oman.”

The CBI governor further mentioned the expansion of trade relations between Iran and Oman in the previous Iranian calendar year (ended on March 20) and said, “The trade between the two countries grew by 40% in the past year and reached US$1.8 billion.”

He further emphasized the necessity of using joint credit cards between the monetary and banking networks of Iran and Oman in order to facilitate the commercial relations and economic activities of the two countries’ businessmen and stated: “The negotiations in this regard have also been carried out with the Central Bank of Oman and Iran is ready to put the use of joint credit cards on the agenda as soon as possible.”

DP World and CMA CGM form Chile container depot

DP World and CMA CGM have created a new company Chile Inland Services (CIS), a joint venture to operate a container depot and bonded storage facility 10 km from the Port of San Antonio.

In April, CIS began its first phase of operations, consisting of a five-hectare facility providing maintenance, repair, and specialized refrigeration services for maritime containers.

By the end of 2023, CIS services intend to expand to 11 hectares and include additional container storage space, a secure customs area for full container storage and a bonded warehouse for cargo consolidation and deconsolidation.

"We are pleased to officially open Chile Inland Services. This investment represents an important milestone for us as we continue to develop smart logistics solutions for our customers. Our goal is to develop integrated logistics services in key locations, making it easier for Chilean companies to move their goods through the Port of San Antonio," said Curtis Dorion, CEO of DP World Chile.

Efrain Osorio, General Manager of CMA CGM for Chile, Peru, and Bolivia said "Our strategic participation with DP World in CIS seeks to differentiate us in the market, raise the level of service by taking what we do at sea and in ports to specialized logistics services on land, and offer our customers a preferential service throughout the country. Chile continues to grow in exports and cargoes are becoming more and more sophisticated".

 

Arab League readmits Syria

The Arab League readmitted Syria on Sunday after more than a decade of suspension, consolidating a regional push to normalize ties with President Bashar al-Assad in a move criticized by Washington.

The decision said Syria could resume its participation in Arab League meetings immediately, while calling for a resolution of the crisis resulting from Syria's civil war, including the flight of refugees to neighbouring countries and drug smuggling across the region.

While Arab states including the United Arab Emirates have pressed to end Assad's isolation, some have been opposed to full normalization without a political solution to the Syrian conflict, seeking conditions for Syria's return.

Qatar, which had previously opposed Syria's return to the League, said its position on normalization had not changed and it hoped regional consensus on Syria could be a motive for the Syrian regime to address the roots of the crisis, a foreign ministry spokesperson told state news agency QNA.

"The reinstatement of Syria does not mean normalization of relations between Arab countries and Syria," Arab League Secretary-General Ahmed Aboul Gheit told reporters in Cairo. "This is a sovereign decision for each country to make."

Syria called on Arab states to show mutual respect.

A US State Department spokesperson said Washington shared the goals of Arab partners in Syria, including building security and stability, but remained skeptical of Assad's willingness to take the steps necessary to resolve Syria's crisis".

"We do not believe Syria merits readmission into the Arab League at this time," the spokesperson said, adding that US sanctions would remain in full effect.

But Russia, an Assad ally, hailed Syria's readmission.

"Moscow welcomes this long-awaited step, the logical result of the process, which has gained momentum, of returning Syria to the 'Arab family,'" Maria Zakharova, spokesperson for Russia's Foreign Ministry, said in a statement.

 

Saudi Crown Prince discusses regional stability with US, UAE and Indian officials

Saudi Crown Prince Mohammed bin Salman met with senior officials from the United States, United Arab Emirates and India on Sunday. In Jeddah, he received Ruler of Abu Dhabi and National Security Advisor of the United Arab Emirates (UAE) Sheikh Tahnoun bin Zayed Al Nahyan; the US National Security Advisor Jake Sullivan; and the National Security Advisor of India Ajit Doval.

During the meeting, they discussed ways to strengthen relations and ties between the three countries in a way that enhances growth and stability in the region.

Crown Prince and Prime Minister received on Sunday the US National Security Advisor Jake Sullivan in Jeddah

During the meeting, they reviewed the strategic relations between the two countries and ways to enhance them in various fields. They also discussed the latest regional and international developments.

Attending the meeting from the American side were US Ambassador to Saudi Arabia Michael Ratney; the US National Security Council Coordinator for the Middle East and North Africa Brett McGurk; Special Presidential Coordinator at the Department of State Amos Hochstein; and Senior National Security Advisor Ariana Berengaut. 

Pakistan Stock Exchange benchmark index posts 1.6%WoW increase

Market remained in green throughout the week ended on May 05, 2023 as buyback announcements from LUCK and HBL’s Sponsors boosted investor’s confidence.

The benchmark index gained 661 points during the week to close at 42,242, posting 1.6%WoW increase. Participation also witnessed an increase of 17.5%WoW as average daily trading volume rose to 244.5 million shares as compared to 208.0 million shares a week ago.

On the macro front, IMF reviews still hang in the balance and as the Fund will review the budget plans for upcoming year.

While political instability still persists, as deadlock remains on the election dates between PTI and the incumbent government.

Internationally, crude oil prices dropped during the week due to lower than anticipated demand from China and FED rate hike by 25bps. WTI/Brent declined by 8.0%/8.1%WoW to currently trade at US$70.6/74.7/bbl, respectively.

Foreign exchange reserves of Pakistan remained largely flat on a weekly basis to US$4.46 billion as of April 28, 2023.

PKR remained stable during the week to close at PkR283.59 to a US$, a gain of 0.1%WoW.

Other major news flows during the week included: 1) Trade deficit for first 10 months of FY 23 declined 39.62%YoY to US$23.71 billion, 2) Food pushes inflation was record at 36.4% in April, 3) FBR suffers shortfall of over PKR100 billion in April, 4) POL products sale in April declined 46%YoY to 1.17 tons, 5) April cement dispatches declined 16.55%YoY to 2.95 million tons, 6) Circular debt crossed PKR4 trillion mark.

Synthetic & Rayon, Woollen, and Leasing Companies were amongst the top performers, while Fertilizer, Property, and Refinery were amongst the worst performers.

Flow wise, major selling was recorded by Foreigners with a net sell of US$6.1 million. Individual absorbed most of the selling with a net buy of US$8.0 million.

Top performing scrips during the week were: PGLC, IBFL, PKGS, UPFL, and LUCK, while the laggards included: ENGRO, DAWH, PAKT, JVDC, and JDWS.

Going forwards, any positive development on the IMF front and political stability would further boost the investor’s confidence. However, market upside is expected to remain limited due to record high interest rates in the country and rampant inflation.

Analysts advise investors to take a cautious approach while building positions in the market and continue to advocate the stocks with dollar-denominated revenue streams (Technology and E&P sector), to hedge against the currency risks or companies with healthy forward dividend yields.

Pakistan: Markup payments exceed net revenue collection

Economic analysts have been warning about the adverse impacts of indiscriminate borrowing and persistent hike in the interest rate, in the name of containing inflation. However, economic managers never paid any attention to this.

Today, I am inclined to refer to a report by Topline Securities, one of the leading brokerage houses of Pakistan. According to the report total markup payments during 9MFY23 were up 69%YoY on the back of higher interest rates and increasing debt stock.

Budget Deficit of Pakistan for 9MFY23 has been reported at PKR3.08 trillion or 3.7% of GDP as against PKR2.56 trillion or 3.8% of GDP in 9MFY22. Budget Deficit for 3QFY23 was reported at PKR1.39 trillion as against a deficit of PKR1.19 trillion for 3QFY22. IMFs has projected budget deficit for the full year FY23 at 4.6%.

The government for 9MFY23 recorded a primary surplus of PKR0.5 trillion or 0.6% of GDP as against a primary deficit of PKR0.45 trillion in 9MFY22. For 3QFY23 primary deficit was posted at PKR0.39 trillion as against a primary deficit of PKR0.53 trillion for 3QFY22. IMFs had projected primary surplus for FY23 at 0.2% of GDP. 

Total Revenue collection for 9MFY23 has been reported at PKR6.94 trillion as against PKR5.88 trillion for 9MFY22, a growth by 18%YoY. Total expenditures increased by 19%YoY to PKR10 trillion for the period under review.

Federal Government Markup Payments for 9MFY23 have been reported at PKR3.58 trillion as against net revenue receipts of PKR3.44 trillion. Total Markup payments during 9MFY23 were up 69%YoY on the back of higher interest rates and increasing debt stock.

Indirect Taxes contributing 55% of FBR revenue were reported at PKR2.84 trillion while Direct Tax collection was PKR2.31 trillion.