US-Iran prisoner swap deal attracts criticism

Secretary of State Antony Blinken signed off on a blanket waiver last week that put the final stages of the deal in motion. The waiver allows for US$6 billion of frozen Iranian funds in South Korea to move to a bank in Qatar.

In return, Iran will release five US prisoners who have already been moved to house arrest in Tehran. The US is also releasing five Iranian prisoners as part of the deal.

The Biden administration has stressed that the unfrozen funds will only be used for humanitarian reasons and that Qatar will monitor the money.

But Iranian President Ebrahim Raisi said Iran will spend the released funds wherever we need it.

"This money belongs to the Iranian people, the Iranian government, so the Islamic Republic of Iran will decide what to do with this money,” he told NBC News.

Since the prisoners in Iran were moved to house arrest last month, Republicans have raised numerous concerns about the deal.

Senator Tom Cotton said the US was paying ransom to the world's state sponsor of terrorism, calling it shameful.

On Truth Social, former President Trump called Biden a fool and said the unfrozen funds will be used for terrorism all over the Middle East, and, indeed, the World.

Senate Foreign Relations Committee Chairman Bob Menendez also expressed concerns about encouraging adversarial nations to take more hostages in the future.

Adrienne Watson, a White House National Security council spokesperson, said the administration is working to release wrongfully held Americans and the deal remains a sensitive and ongoing process. 

 

 

Iran launches another shipping line to India

The Islamic Republic of Iran Shipping Lines (IRISL) has launched a direct container shipping line from Shahid Beheshti Port in southeastern Chabahar to India’s Nhava Sheva Port.

The direct container line from Chabahar Port to Nhava Sheva, with a transit time of five days and a very competitive price, is unique in its kind and is expected to have a significant impact on the development of trade and strengthening the regional and extra-regional position of Chabahar Port.

IRISL had previously launched similar container shipping lines from Shahid Beheshti Port of Chabahar to the main ports of China with competitive prices and a transit time of 12 days, which increased the container activity of Chabahar Port by five times.

Iran and India had previously launched shipping lines between Chabahar and the Indian ports of Mumbai, and Mundra.

The first shipping route between the two countries was put into operation in 2017 between Iran’s Chabahar port and Mumbai.

In January 2019, Iran and India inaugurated the second direct shipping route which passes through Mumbai, Mundra, Kandla, Chabahar, and finally Bandar Abbas in southern Iran.

India is using the mentioned shipping routes to transit goods to Afghanistan and Persian Gulf nations as well as the countries in Central Asia.

Through Chabahar Port India can bypass Pakistan and transport goods to Afghanistan and Central Asia, while Afghanistan can get linked to India via sea.

Iran has awarded India the project for installing and operating modern loading and unloading equipment including mobile harbor cranes in Shahid Beheshti Port in Chabahar.

The strategic Chabahar Port in southeastern Iran is the only ocean port on the Makran coast and it has a special place in the country's economic affairs.

Back in September 2021, Indian Prime Minister Narendra Modi had called on Central Asian countries to benefit from Chabahar Port capacities for expanding their trade in the region.

 

Nikki Haley views China an enemy

According to Saudi Gazette, Nikki Haley, the former South Carolina governor and 2024 Republican presidential contender, said that she views China as an enemy in a potential preview of the hardline approach she would take if elected president.

“China’s been practically preparing for war with us for years,” Haley told CNN’s Jake Tapper on “State of the Union” Sunday. “Yes, I view China as an enemy.”

United States, the former United Nations ambassador said, needs to make sure that we’re serious about China and they know that we’re serious about them — not going and being nice to them and thinking that they’re going to change.

Her comments come while President Joe Biden is in Vietnam trying to secure stronger diplomatic, military and economic ties with a network of allies and partners in response to China’s increasingly aggressive military and economic posture.

On a separate track, the Biden administration has also pursued more stable ties and improved communication with Beijing over the last year, with a series of top Cabinet secretaries making the trip to China’s capital in just the last few months.

“How much more has to happen for Biden to realize you don’t send Cabinet members over to China to appease them; you start getting serious with China and say, We’re not going to put up with it,” Haley said Sunday.

“They keep sending different Cabinet officials over, Jake, and it’s embarrassing,” she added.

Detailing what her own approach would look like, Haley stressed the importance of cutting off China’s access to US oil, combating Chinese infiltration in American universities, and ending all normal trade relations until the flow of fentanyl to the US is stopped.

“And then we’re going to build up our military, because China now has the strongest naval fleet in the world,” Haley said. 

Modi passes G20 gavel to Lula

Indian Prime Minister Narendra Modi called an end on Sunday to the G20 Summit in New Delhi by passing on a ceremonial gavel to Brazil, which will take the bloc’s presidency.

“I want to congratulate Brazil’s president and my friend Lula da Silva, and hand over the presidency’s gavel to him,” Modi said.

Modi congratulated Lula, while handing him over the presidency of G20 after the closing session of the G20 Summit 2023 at the Bharat Mandapam in New Delhi

Brazil officially will take over the mantle of the presidency of the elite grouping on December 01, 2023. Speaking on the occasion, Lula congratulated Modi and thanked India for its efforts to give voice to the topics of interest to emerging economies.

Lula also listed social inclusion, the fight against hunger, energy transition and sustainable development as G20 priorities.

He said the UN Security Council needs new developing countries as permanent, non-permanent members to regain political strength.

“We want greater representation for emerging countries at the World Bank and the IMF,” he said.

“Brazilian presidency of the G20 has three priorities — first, social inclusion and fight against hunger. Second, energy transition and sustainable development in its three aspects... Third, the reform of global governance institutions.

“All these priorities are part of the Brazilian presidency motto which says ‘building a fair world and a sustainable planet’. Two task forces will be created — global alliance against hunger and poverty and the global mobilization against climate change.”

Lula said on Saturday that Russian leader Vladimir Putin would not be arrested in Brazil if he attends the Group of 20 meeting in Rio de Janeiro next year.

Interviewed on the sidelines of the G20 meeting in Delhi by news show Firstpost, Lula said Putin would be invited to next year’s event, adding that he himself planned to attend a BRICS bloc of developing nations meeting due in Russia before the Rio meeting.

“I believe that Putin can go easily to Brazil,” Lula said. “What I can say to you is that if I’m president of Brazil, and he comes to Brazil, there’s no way he will be arrested.”

On the occasion, Modi proposed to hold a virtual session of G20 at the end of November this year.

“In the last two days, you have put forward your views, given suggestions and a number of proposals have been put forward. It is our responsibility that the suggestions that have come forth are closely looked upon as to how they can be speeded up,” Modi said.

“It is my proposal that we hold another session of the G20 virtually in November-end. In that session, we can review the issues that have been agreed upon during this summit. Our teams will share the details of it with all of view. I hope all of you will join this (session),” he said.

“With this, I declare the G20 summit as closed,” Modi said. 

Saudi Crown Prince announces economic corridor linking India, Middle East and Europe

According to Saudi Gazette, Saudi Crown Prince and Prime Minister Mohammed Bin Salman announced the signing of a memorandum of understanding (MoU) for an economic corridor project connecting India with the Middle East and Europe.

The project aims to enhance economic connectivity, develop and upgrade infrastructure, and boost trade between the involved parties.

Speaking at the occasion of the launch of the corridor on the sidelines of the G20 Leaders' Summit in Delhi on Saturday, the Crown Prince said, “I am pleased today that we are gathered in this friendly country to sign an MoU for an economic corridor project connecting India with the Middle East and Europe.”

“This project is the culmination of our joint efforts over the past few months.

“It is built on principles that serve the common interests of our countries by enhancing economic connectivity and positively impacting our partners in other countries and the global economy as a whole.”

He added, “This project will contribute to the development and upgrading of infrastructure, including railways, port connections, and increased flow of goods and services, thus enhancing trade between the parties involved.

“It will also extend pipelines for the export and import of electricity and hydrogen to enhance global energy supply security, in addition to high-efficiency, reliable cross-border data transmission cables.”

The Crown Prince highlighted that the MoU also supports clean energy development efforts and will create new, high-quality employment opportunities along the corridors for all parties.

"To achieve what we have agreed upon in this memorandum, it requires the continuation of our collective efforts and the immediate commencement of developing the necessary mechanisms for its implementation within the agreed-upon timeframe," he said.

He also expressed profound gratitude to all those who worked together to take these foundational steps towards establishing this significant economic corridor.

Indian Prime Minister Narendra Modi announced the launch of the India-Middle East-Europe connectivity corridor, which is the first of its kind initiative on cooperation on connectivity and infrastructure involving India, UAE, Saudi Arabia, EU, France, Italy, Germany, and the United States.

The governments of Saudi Arabia and United States announced that they had signed a memorandum of understanding (MoU) between the two countries. The bilateral MoU provides a framework for developing a protocol for establishing intercontinental green transit corridors through the Kingdom to connect the continent of Asia with the continent of Europe.

This project aims to facilitate the transit of renewable electricity and clean hydrogen via transmission cables and pipelines as well as constructing rail linkages.

It is also intended to enhance energy security, support efforts for the development of clean energy, promote digital economy through digital connectivity and transmission of data via fiber cables, and promote trade and transport of goods by rail and through ports.

Saudi Arabia welcomed the role of the United States to facilitate and support the negotiation, establishment, and implementation of the green corridors transit protocol with the relevant countries.

Bangladesh going to be used as battleground of big powers, says Fakhrul

According to The Bangladesh Chronicle, Bangladesh Nationalist Party (BNP) Secretary General Mirza Fakhrul Islam Alamgir fears that Bangladesh was going to be used as a field in the fight of the big powers to establish their supremacy only because of the government’s imprudent diplomacy.

Speaking at a rally, he also voiced concern over Russian Foreign Minister Sergei Lavrov’s comment that the United States and its allies are trying to promote their interests in the South Asia region by using the Indo-Pacific strategy with their goal of countering China and Isolate Russia.

“What the Russian foreign minister said after arriving here has clearly manifested that Bangladesh is going to be used as a field in the sphere of influence of the big powers in their struggle for hegemony. It’s very alarming,” the BNP leader said.

He alleged that the Awami League government is completely responsible for creating such a situation and inviting danger for the nation. “They, the government, are making irresponsible statements and conducting their diplomacy imprudently to push Bangladesh to such a dire situation.”

Jatiyatabadi Mohila Dal brought out a rally in front of BNP’s Nayapaltan central office, marking its 45th funding anniversary. BNP founder Ziaur Rahman formed Mahila Dal, the female wing of the party, on September 09, 1978.

Lavrov arrived in Dhaka on a two-day visit and held a bilateral meeting with Foreign Minister AK Abdul Momen.

 

PSX benchmark index gains 1.5%WoW

Pakistan Stock Exchange remained range-bound during the week ended on September 08, 2023, with the benchmark index KSE-100 marginally fluctuating in the slim range of 654 points. The fear of interest rate hike due to the increase in the T-Bills yields kept the market activity in check. However, positive developments over SIFC and the caretaker prime minister’s announcement of total expected inflows of US$50 billion from UAE and Saudi expected to materialize in the next 4-5 years added a substantial layer of positivity to this multifaceted narrative.

The KSE-100 index closed at 46,013 points with a gain of 1.55%WoW. Meanwhile, market participation declined by 26%WoW, averaging at 138 million shares. On the currency front, rupee strengthened against the greenback. Moreover, administrative measures yielded positive results, taking the gap between interbank and open market below 1% which was around 5% a week ago.

August trade deficit widened by 29.8%MoM to US$2.126 billion as compared to US$1.637 billion in July.

The foreign exchange reserves held by the State Bank of Pakistan (SBP) by US$70 million to US$7.8 billion as of September 01, 2023.

Other major news impacting the market include: 1) August 2023 petroleum sales declined 8%YoY to 1.41 million tons, 2) August cement dispatches rose by 37%YoY to 4.518 million tons, 3) Pakistan’s public debt surged 22% to PKR61.75 trillion in July and 4) IMF allowed leeway on electric bills, raises gas prices by 50%.

Sector-wise, Close-End Mutual Fund was the worst performer, while Transport, Automobile Parts & Accessories & Inv. banks/ Securities cos. were amongst the top performers.

Flow-wise, major net selling was recorded by Mutual Funds with a net sell of US$2.4 million. Individuals absorbed the selling with a net buy of US$3.6 million.

Top performing scrips were: GADT, DAWH, ILP, THALL, KAPCO, while the Laggards included: JWDS, ARPL, BAHL, EFUG and INDU.

Going forward, market is expected to remain range-bound due to the upcoming Monetary Policy Committee meeting on September 14, 2023.

Furthermore, government’s steps over energy reforms, and next review with the IMF may improve the market sentiments.

Analysts continue to advise investors to remain cautious while taking positions and invest in companies with strong fundamentals or high dividend-yielding scrips.