Sunday, 14 May 2023

Iran-Saudi Arabia to boost economic co-op

During a meeting between Iran’s Finance and Economic Affairs Minister Ehsan Khandouzi and Saudi Arabia’s Finance Minister Mohammed Al-Jadaan, the two sides discussed the ways to expand economic cooperation and remove the barriers in the way of trade between the two countries.

In the meeting, which was held on the sidelines of the annual meeting of the board of executive directors of the Islamic Development Bank (IsDB) in Jeddah, the Saudi Arabian minister expressed satisfaction with the re-establishment of relations between Iran and Saudi Arabia and said, “We hope that quick steps will be taken in relations with Iran.”

“In this regard, it is necessary to remove the economic and trade barriers against the two countries”, he stressed.

Referring to the great opportunities for interaction and cooperation between the two countries, Al-Jadaan expressed hope that he will soon meet the Iranian finance and economic affairs minister in Riyadh.

The Iranian minister welcomed the progress of economic relations between the two countries and stated that the development of relations is important not only for Iran and Saudi Arabia but also for all countries in the region.

Khandouzi said these bilateral relations are very important not only from an economic point of view but also in the political and security fields.

Explaining Iran's program in the field of economic relations with Saudi Arabia, Khandouzi said, “At the government level, Iran and Saudi Arabia have not finalized any basic agreement in the field of investment, customs, and trade. In this regard, it is necessary to draw up and sign MoUs between the parties.”

The Saudi Arabian side, while agreeing to cooperate in the three fields of customs, trade, and investment, expressed hope that with the assistance of his country’s ministries, cooperation in the mentioned fields will be followed up.

 

Saturday, 13 May 2023

Iran to participate in increasing capital of Islamic Development Bank

Iranian Finance and Economic Affairs Minister Ehsan Khandouzi said, Iran as one of the major shareholders of the Islamic Development Bank (IsDB), is implementing new measures to participate in increasing the bank’s capital.

Khandouzi made the remarks in a meeting with IsDB Chairman Muhammad Sulaiman Al Jasser on the sidelines of the annual meeting of the bank’s Board of Executive Directors in Jeddah, IRNA reported.

In this meeting, while pointing to the milestones of joint cooperation, the parties emphasized on removing the related obstacles and problems in the path of this cooperation.

Referring to the efforts made by the Iranian government to remove existing cooperation obstacles, Khandouzi pointed out the emphasis of the president of the Islamic Republic of Iran on strengthening joint cooperation with IsDB and solving the problems and challenges in the path of these interactions.

Al Jasser pointed out that the challenges facing the bank during the years of the Coronavirus pandemic and requested that the Islamic Republic of Iran, like other senior shareholders of the bank, supports the increase of the bank’s capital and fulfills its obligations to the bank.

The Islamic Development Bank is a multilateral development finance institution that is focused on Islamic finance for infrastructure development and is located in Jeddah, Saudi Arabia. There are 57 shareholding member states with the largest single shareholder being Saudi Arabia.

 

Singapore: Countdown for Presidential Election

Amid global uncertainty and domestic anxiety over the cost of living, the next president of Singapore must be a unifying figure in whom Singaporeans have confidence. The job of the head of state has not changed much over the years, but people have come to expect more.

Observers say the election, which is called on a regular six-year cycle, will likely be held close to the deadline in September 2023, after the National Day celebrations – and after the National Day Rally speech by Prime Minister Lee Hsien Loong, usually in the second half of August.

This would be a time when issues and challenges confronting Singapore, as well as a sense of national identity and unity, would be at the forefront of people’s minds.

Dr Gillian Koh, deputy director of research at the Institute of Policy Studies, said that the conditions today are similar to those in 2011. 

Then, people felt that the world had seen an end to the “long boom” post-World War II and markets were anticipating another crisis in the United States and Europe which could affect Asia.

She noted that at the time, the candidate who eventually became president – former deputy prime minister Tony Tan Keng Yam – said he envisaged that the Government would make contingency plans, and gave the assurance that he would protect the national reserves with great care.

Similarly today, Singapore and the world face a tangled web of challenges – from US-China rivalry and the Russia-Ukraine war to disruptions to the global trade order – that PM Lee laid out in his speech during the debate on the President’s Address in April.

Hence, the upcoming election will involve choosing a candidate with experience, and who has a calming and steady temperament in crises, said Dr Koh.

National University of Singapore (NUS) sociologist Tan Ern Ser said it is not the president’s responsibility to directly address problems such as the economy and inflation, or geopolitical challenges, as these are the responsibilities of the prime minister and his Cabinet.

Instead, he said, the president should rally Singaporeans to stay socially cohesive and resilient amid external or internal threats, while keeping an eye on how the reserves are being used.

He added that the president could also use the prestige and symbolic power of the presidency to champion worthy causes that would enhance the well-being and unity of Singaporeans.

Dr Leong Chan-Hoong, head of policy development, evaluation and data analytics at research consultancy Kantar Public, said that in a politically divided world, the next president should also ideally have good working knowledge of foreign policy and international relations.

By design, the president has no executive, policymaking role. This remains the prerogative of the elected government that commands the majority in Parliament. 

Does it mean, therefore, that the president’s role is simply rubber-stamping? 

President Halimah Yacob’s tenure has shown otherwise, said political analyst and Nanyang Technological University (NTU) associate lecturer Felix Tan.

He said there has been some evolution in the “soft power aspect” of the role, with the President showing that she can still be involved in engaging with Singaporeans and championing certain social causes.

For example, she has spoken up on violence against women and the need to ensure a broader and more open meritocracy for all Singaporeans.

Courtesy: The Straits Times

Jeddah Declaration: Sudanese rivals agree to protect civilians

Sudan's warring factions have committed to protect civilians and allow the movement of humanitarian aid. The Sudanese Armed Forces (SAF) and its rival Rapid Support Forces (RSF) signed a document titled "Jeddah Declaration of Commitment to Protect the Civilians of Sudan" early Friday.

They reaffirmed their core obligations under International Humanitarian Law to facilitate humanitarian action to meet the needs of civilians.

“We affirm our unwavering commitment to the sovereignty of Sudan and to maintaining its unity and territorial integrity,” according to the joint declaration.

They welcomed the efforts exerted by Sudan’s friends who can use their relationships and good offices to ensure respect for International Humanitarian Law and for international human rights law, including by committing to this Declaration and immediately implementing it.

“We agree that the interests and well-being of the Sudanese people are our top priority and affirm our commitment to ensure that civilians are protected at all times. This includes allowing safe passage for civilians to leave areas of active hostilities on a voluntary basis, in the direction they choose,” the declaration read.

They committed to exert all efforts to ensure that these commitments—and all obligations of International Humanitarian Law—are fully disseminated within their ranks and appoint focal points to engage with humanitarian actors to facilitate their activities.

“We will enable responsible humanitarian actors, such as the Sudanese Red Crescent and/or the International Committee of the Red Cross to collect, register, and bury the deceased in coordination with competent authorities,” the declaration read.

“We will take all necessary measures to ensure that all persons acting on our instructions, direction or control abide by International Humanitarian Law, and in particular the commitments provided for in this Declaration of Commitment.”

They agreed to prioritize discussions to achieve a short-term ceasefire to facilitate the delivery of emergency humanitarian assistance and restoration of essential services, and announced their commitment to scheduling subsequent expanded discussions to achieve a permanent cessation of hostilities.

Turkey: Erdogan rival accuses Russia of deep fake campaign

Kemal Kilicdaroglu, the main election rival of Turkish President Tayyip Erdogan, issued a warning to Russia, accusing it of responsibility for the release of fake material on social media ahead of Sunday's ballot.

Kilicdaroglu, who has a slight lead over long-time leader Erdogan according to opinion polls, did not specify to which material he referred.

A third presidential candidate, Muharrem Ince, withdrew from the race on Thursday citing a faked character assassination carried out online. He gave few details.

Kilicdaroglu accused Turkey's Russian friends of responsibility for the release in this country yesterday of montages, plots, deep fake content...

"If you want to continue our friendship after May 15, withdraw your hand from the Turkish state. We are still in favour of cooperation and friendship," he said on Twitter on Thursday evening in both Turkish and Russian.

There was no immediate comment from Russian officials.

Moscow and Ankara have close ties and Russia is Turkey's largest supplier of energy. President Vladimir Putin and Erdogan hold frequent talks on issues ranging from energy to the wars in Ukraine and Syria.

In the tense campaign ahead of the May 14 presidential and parliamentary votes, political figures from both the Erdogan and Kilicdaroglu camps have complained about online accusations, including the posting of videos and photographs.

 

Iran-UAE to facilitate joint investment

Iran and the United Arab Emirates (UAE) have agreed to sign new memorandums of understanding (MOUs) on the avoidance of double taxation and facilitation of mutual investment, Fars News Agency reported on Friday.

The decision was made during a meeting between Iranian Minister of Finance and Economic Affairs Ehsan Khandouzi and UAE Minister of State for Financial Affairs Mohamed bin Hadi Al Hussaini on the sidelines of the annual meeting of the Islamic Development Bank (IsDB) Board of Executive Directors in Jeddah.

During the meeting, the officials emphasized increasing cooperation in the fields of trade and foreign investment. It was also decided that appropriate measures should be implemented soon in order to sign agreements on facilitating foreign investment and avoidance of double taxation between the countries.

Pointing to the positive impact of the resumption of relations between the Islamic Republic of Iran and Saudi Arabia in the region, Al-Husseini said that the volume of trade between the two countries has increased about 40 times.

“This volume of trade in various fields indicates a natural and positive growth of relations and interactions between Iran and the UAE, and the role of the governments of the two sides is to encourage trade and facilitate it through agreements to avoid double taxation, and it is necessary to revise the existing agreements between the two countries,” he said.

Khandouzi for his part referred to the previous unfinished negotiations related to the drafting of a foreign investment agreement between the two sides, saying: “The Islamic Republic of Iran is ready to cooperate in joint profitable projects, as well as cooperation for investing in other countries.”

At the end of this meeting, Khandouzi invited his Emirati counterpart to travel to Tehran as soon as possible.

 

Pakistan Stock Exchange records 45.4%WoW decline in trading volume

The week ended on May 12, 2023 was mired with political uncertainty, at a time Pakistan needs additional financing for the successful completion of long standing 9th IMF review. The benchmark index closed the week at 41,488 points, posting 1.79%WoW decline. Participation also declined to average daily volumes of 133.52 million shares during the week, from 244.47 million shares a week ago, depicting 45.4%WoW fall.

Pakistan has assured the IMF, it will not implement cross fuel subsidy program. Foreign exchange reserves held by State Bank of Pakistan (SBP) eroded by US$74 million to US$4.38 billion as May 05, 2023, with the import cover still remaining below one month.

Other major news flows during the week included: 1) Fiscal deficit for Jul-Mar reaches 3.7% of GDP, 2) GoP raises PKR62.9 billion PIBs auction, 3) Jul-Apr remittances decline 13% to US$22.74 billion, 4) PKR plunges 5.38 against dollar to fresh low and 5) Discos seek PKR1.5 per unit QTA for 3QFY23.

The top performing sectors were: Close- End Mutual fund, Textile composite, and Textile Weaving, while the least favorite sectors were: Vanaspati & Allied Industries, Oil & Gas exploration companies, and Modarabas.

Top performing scrips were: GLAXO, SCBPL, MUREB, PIOC, and ATLH, while laggards included: PSEL, OGDC, PPL, SRVI, and HCAR.

Flow wise, individuals were the major buyers with net buy of US$1.07 million, followed by Broker Propriety trading (net buy of US$0.85 million), while foreign investors were major sellers during the week, with a net sell of US$1.14 million.

Pakistan is in very a precarious situation and further delays can’t be tolerated. World Bank along with AIIB has linked approval of US$700 million loan with the completion of pending IMF review. Political stability will dictate the market performance in the near term.

Ministry has clarified that arrangements have been made for the rollover/ repayment of US$3.7 billion debt which are due by June 30, 2023.

Analysts continue to advocate companies that have dollar-denominated revenue streams, while minimal dollar-denominated cost structures, which hedges them against any currency risk, top of the list includes Technology and E&P sectors.