Netanyahu hurting Israel more than helping it

Prime Minister Benjamin Netanyahu is undermining the values on which Israel was founded and is harming the country with his handling of the Gaza war, US President Joe Biden charged during an interview he gave to MSNBC on Saturday.

“He has a right to defend Israel, a right to continue to pursue Hamas, but he must, he must, he must pay more attention to the innocent lives being lost as a consequence of the actions taken.”

“He is hurting Israel more than helping Israel by making the rest of the world … it is contrary to what Israel stands for, and I think it’s a big mistake,” Biden said.

He spoke amid growing tensions between Israel and the United States over Israel’s conduct of its military campaign to destroy Hamas in Gaza, an operation which it supports in principle, but has otherwise opposed elements of its operation.

The United States has been concerned in particular by the high fatality count, with Hamas asserting that over 31,000 Palestinians have been killed since the start of the war.

Israel has stated that over 11,000 of the fatalities have been combatants.

The US has also argued that Israel has not done enough to contain the humanitarian disaster that accompanied its military campaign, during which it has taken out roads, infrastructure, and the governance system, making it difficult to distribute and in some cases impossible to distribute aid.

Biden was careful to stress to MSNBC that irrespective of his thoughts on Netanyahu, he supported Israel, particularly concerning defensive weapons.

"I am never going to leave Israel,” Biden emphasized.

“The defense of Israel is still critical, so there is no red line where I am going to cut off all weapons so they do not have the Iron Dome to protect them,” Biden said.

Within that framework there are still red lines Israel should not cross, such as a military operation in Rafah, Biden said. He has stressed in the past that the US would only support such an operation if Israel presented a plan to protect the over 1.3 million Palestinians located in the area of that southern city, many of whom fled there to escape Israeli aerial bombings in the northern part of the enclave.

Israel builds road across width of Gaza

The Israel Defense Forces (IDF) has finished building a new road which runs across northern Gaza from east to west, reports Saudi Gazette.

The IDF told, they were attempting to gain an operational foothold, and facilitate the movement of troops and equipment. But some experts fear it will used as a barrier, preventing Palestinians from returning to their homes in the north. Others said it appeared to be part of an Israeli plan to remain in Gaza beyond the end of current hostilities.

In February, Prime Minister Benjamin Netanyahu unveiled a post-war vision in which Israel would control security in Gaza indefinitely.

International leaders have previously warned Israel against permanently displacing Palestinians or reducing the size of Gaza.
The road runs across north Gaza, with central and southern areas lying below it. It starts at Gaza's border fence with Israel near the Nahal Oz kibbutz and finishes near the coast.

It also intersects with the Salah Al-Din and Al-Rashid roads, the two major arteries running through the territory.

Although there is a network of roads which connect east and west, the new IDF route is the only one which runs uninterrupted across Gaza.

Satellite imagery analysis by the BBC reveals that the IDF has built over 5km (3 miles) of new road sections to join up previously unconnected roads.

The initial section of the road in eastern Gaza near the Israeli border was established between late last October and early November. But most of the new sections were built during February and in early March.

The new route is wider than a typical road in Gaza, excluding Salah Al-Din.

Imagery analysis also shows that buildings along the route, which appear to be warehouses, were demolished from the end of December until late January. This includes one building several stories high.

The road spans an area which previously had fewer buildings and was less densely populated than other parts of Gaza. It also sits below a makeshift and winding route which the IDF had been using to move from east to west.

An Israeli TV channel reported on the route in February, saying it was code named "Highway 749". A reporter from Channel 14 traveled along parts of the route with the Israeli military.

In the video, road construction vehicles and diggers were seen preparing for the construction of new sections of the route.

Analysts at Janes, a defense intelligence company, said the type of unpaved road surface seen in the Channel 14 footage, was suitable for tracked armored vehicles.

The IDF did not go into this type of detail in its statement. "As part of the ground operation, the IDF uses an operational route of passage," it said.

Retired Brig. Gen. Jacob Nagel, former head of Israel's National Security Council and a former security adviser to Netanyahu, told BBC Arabic that the objective of the new route was to provide fast access for security forces when dealing with fresh threats.

"It will help Israel go in and out... because Israel is going to have total defense, security and responsibility for Gaza," he told BBC Arabic.

He described it as "A road that divides the northern part from the southern part".

"We don't want to wait until a threat is emerging," he added.

Maj. Gen. Yaakov Amidror, formerly of the IDF, had a similar view. The primary purpose of the new road was to facilitate logistical and military control in the region, he said.

Justin Crump, a former British Army officer who runs Sibylline, a risk intelligence company, said the new route was significant.

"It certainly looks like it's part of a longer-term strategy to have at least some form of security intervention and control in the Gaza Strip," said Crump.

"This area cuts off Gaza City from the south of the strip, making it an effective control line to monitor or limit movement, and has relatively open fields of fire."

Khaled Elgindy, a senior fellow at the US-based Middle East Institute, also thinks the road is a long-term project.

"It appears that the Israeli military will remain in Gaza indefinitely," he told the BBC.

"By dividing Gaza in half, Israel will control not only what goes in and out of Gaza, but also movement within Gaza," said the analyst.

"This includes quite possibly preventing the 1.5 million displaced Palestinians in the south from returning to their homes in the north”.

Fund raising by Singaporian charity for Gazans

A fund-raiser to provide aid for communities in Gaza raised over US$8 million just slightly under a month after it was lauOn the same day, RLAF said in a Facebook post, “We thank all individuals and groups who have come forward to generously contribute to provide aid in the form of health, relief and shelter for communities affected in Gaza.”

The foundation added that it has been monitoring and working closely with its partners on updates about delivery of aid to the beneficiaries in Gaza.

This included a session for various donors and donor organizations where the foundation’s partners provided updates and responded to questions via a video call.

Masagos, who is also Minister-in-charge of Muslim Affairs, said that RLAF will hold another round of fund-raising for Gaza during the upcoming Muslim fasting month of Ramadan.

The sum of US$8,114,422, collected from October 19 to November 17, is the highest raised by the Rahmatan Lil Alamin (Blessings to all) Foundation, or RLAF.

Minister for Social and Family Development Masagos Zulkifli said at the sidelines of an event at the Assyafaah Mosque on March 9 that the sum has been dispensed to the United Nations Relief and Works Agency for Palestine Refugees in the Near East, or UNRWA.

“This new fund-raising campaign aims to rally Singaporeans to continue to donate as the situation in Gaza has become direr,” said Masagos, who added that the campaign was slated to take place from March 20 to 26.

According to the Hamas-run Health Ministry, Israel’s ensuing bombardment of the small Palestinian enclave of 2.3 million people has killed more than 30,800 people.

Nations and humanitarian groups have been racing to bring more aid to Palestinians, with the population on the brink of famine. The UN had earlier estimated that 300,000 Palestinians are living with little food or clean water.

Singapore has sent a medical team to treat civilian casualties who have been taken to Egypt, and supplies such as medicine, sanitation items and food for civilians.

Singapore Red Cross had earlier sent medical supplies, food and water worth at least US$250,000 to civilians in Gaza.

Padma Bridge: Contractor resumes work

Chinese contractor for the Padma Bridge Rail Link Project halted some major work for 25 days since February 10 over pending payments.

Railway authorities say the contractor resumed working on Wednesday following fruitful talks. But several officials say that physical work for the fast track project, the biggest of Bangladesh Railway, is still progressing at a slower-than-usual rate.

The project authority has sought a two-year extension — including a year of defect liability period — of the deadline to complete the project, the current deadline is June this year.

The project approved in March 2016 will connect the capital with Jashore with a 169km rail line through the Padma Bridge under a government to government initiative between Bangladesh and China.

The original cost of the project was Tk 34,989 crore and the deadline was June 2022. But the cost rose to Tk 39,246 crore and the deadline was extended after the first revision of the project.

The Chinese Exim Bank was supposed to lend Tk 21,036.69 crore. The contractor is China Railway Group Ltd, better known as CREC.

The Dhaka-Bhanga section of the rail line was opened in October last year.

Project Director Afzal Hossain said on February 10 the contractor stopped working at the sites of the third line between Kamalapur and Gendaria, a junction at Bhanga, and station at Singia.

Quamrul Ahsan, director general of railway, said Bangladesh Railway had earlier written to the contractor asking it to resume working.

Asked whether the issue was discussed at yesterday’s meeting between the Chinese ambassador and the railways minister, Quamrul replied in the negative.

Contacted, Li Lin, director (public relations and administration) of CREC for the project, said, “It is true that we had stopped works of the project, but the extent of the works was very small, not any major work. Besides, we have already resumed the works from March 5.

“We did not get our payment since October last year, though we have been requesting BR and the project authority to clear our dues. Since they did not pay our dues, we stopped some small works.”

Replying to another question, he said although BR did not give any assurance about paying the dues soon, the contractor resumed working considering the friendly relationship between Bangladesh and China.

The issue over payment surfaces at a time when the project authority has returned Tk 700 crore from its total allocation of Tk 5,500 crore in the Annual Development Programme (ADP) for this fiscal year.

“We would not be able to spend the money in this fiscal year,” said Afzal, the project director.

As of last month, physical work made 91 percent progress, said Afzal.

Trains can be operated from one end to another after June, he said, adding that all the stations would not be ready by then.

The work will be fully complete by December this year, he said, adding that the one-year defect liability period would be counted from then. The contractor will fix the defects that appear within this period for free.

This is why they have sought time up to June 2026 for completion of the project, he added.

The cost of the project would not be increased due to the time extension, he said.

Aramco joins Adnoc in lithium extraction

According to Reuters, Saudi Arabia and the United Arab Emirates' national oil companies plan to extract lithium from brine in their oilfields, in line with efforts to diversify their economies and profit from the shift to electric vehicles (EVs).

Other oil companies, including Exxon Mobil, opens new tab and Occidental Petroleum, opens new tab, plan to take advantage of emerging technologies to filter lithium from brine, as the world seeks to move away from fossil fuels.

Saudi Arabian economy for decades has relied on oil, is spending billions on trying to turn itself into a hub for EVs as part of Saudi Crown Prince Mohammed bin Salman's attempts to find alternative sources of wealth.

Saudi Aramco opens new tab and Abu Dhabi National Oil Company were in the very early stages of work to extract lithium, regarded as a critical mineral by many major economies because of its use in battery manufacture.

DLE technology is in its infancy and its economics are far less certain than those of oil.

Saudi Arabia and the UAE can draw on expertise in handling oil brine and wastewater at oil production sites.

An advantage of filtering the ultra-light battery metal from salt water is that it avoids the need for costly and environmentally challenging open pit mines or large evaporation ponds, as employed in the world's leading producers Australia and Chile.

China is the biggest processor and consumer of lithium, needed for electric and hybrid vehicles.

               

Asif Ali Zardari: The Prince of Guile

Asif Ali Zardari, co-chairman of the Pakistan People’s Party (PPP), has secured his second term as President of Pakistan, defeating Mahmood Khan Achakzai, the candidate backed by the Pakistan Tehreek-e-Insaf (PTI) and Sunni Ittehad Council.

In the presidential election, Zardari garnered an overwhelming majority, securing 411 votes, while Achakzai managed to bag 181 votes, only one vote was rejected. To know more about the charismatic as well as mysterious character of Zardari read the details published in Dawn newspaper on February 23, 2024.

Even his rivals acknowledge that Zardari is a deal-maker par excellence. He has been written off and made a comeback so many times that his doubters have simply stopped trying.

You have heard the trope: Asif Ali Zardari is Machiavelli’s Il Principe personified. While that most certainly isn’t an endearment, it is perhaps not much of an insult either. Whether one accepts it or not, Zardari seems to have cracked the code to surviving and succeeding in the swampy wastelands of Pakistani politics. There are very few who can claim to have his guile, and none who can claim his political acumen.

Call it the politics of ‘mufahimat’ (understanding and reconciliation) or the politics of ‘mufadaat’ (interests and advanta­ges), the Zardari brand of deal-making has ensured that his star continues to shine.

“Chaos isn’t a pit,” go the memorable lines from Game of Thrones, one of the most popular TV show of our times. “Chaos is a ladder. Many who try to climb it fail and never get to try again. The fall breaks them.”

“And some are given a chance to climb. They refuse, they cling to the realm or the gods or love. Illusions. Only the ladder is real. The climb is all there is.”

In the chaos of Pakistan’s politics, none has climbed the ladder higher or more successfully than Zardari. He has been thrown off again and again, yet refused to let his falls break him.

He has seized every opportunity to play the game, and won it with an unlikely hand too many times.

The young Zardari was a notorious playboy who often ended up in brawls at Karachi’s casinos. He was known for his then-famous father, Hakim Ali Zardari, who had been elected as an MNA on a PPP ticket to Zulfikar Ali Bhutto’s first assembly.

The two were said to be close at one time, but fell out at some stage, following which the elder Zardari had exited the PPP. At one time, both father and son supported the anti-Bhutto alliance.

The Zardaris were otherwise regarded as a liberal Sindhi family who ran a successful entertainment business centred around their two cinemas. The son, at one point, had also tried his hand in the construction business, but was not successful.

The family’s name shot to national prominence when, through a common family connection, the Zardari scion’s marriage was arranged with Zulfikar Ali Bhutto’s daughter and protégé, the late Benazir Bhutto. Benazir was well-loved and internationally known: it was natural for the spotlight to shine on her soon-to-be-husband. On the night of their wedding, the two celebrated with thousands of well-wishers, most of them common folk, at Lyari’s Kakri Ground.

The event seemed as political as it was personal, and it catapulted Zardari onto the national stage.

The very next year, in 1988, Ms Bhutto was elected Pakistan’s first woman prime minister.  Zardari landed in Prime Minister House, and quickly went to work turning around his personal fortunes. It wasn’t long before Ms Bhutto’s first government was mired in scandals of all sha­des and sizes. It was during this time that Zardari earned the title of ‘Mr 10 percent’.

The axe would fall as soon as Ms Bhutto’s government was dismissed. Among the numerous cases filed against Zardari was one involving abduction for extortion. Zardari was accused of abducting a businessman, strapping a bomb to him, and sending him to the bank to withdraw a large sum of money from his account. The case ran in an anti-terrorism court between 1990 and 1993. Nothing ever came of it.

It was during Ms Bhutto’s next government that Zardari finally started being regarded as one of the most powerful men in the country. He got his own office within PM House, and was even made a federal minister. After that government was also dismissed, he was arrested immediately. A slew of new cases were filed against him, and Zardari once again found himself in jail. Once again, he was never convicted.

Zardari’s by then lengthy record and the length of time he had spent behind bars, without ever being convicted, added to his legend. He quickly came to be regarded as a shrewd wheeler-dealer who could get out of the stickiest situations without any fatal consequences.

It was Ms Bhutto’s tragic assassination that proved to be another turning point in Zardari’s fortunes. Though he had deferred to his spouse’s politics during her lifetime, the mantle of the PPP now fell to him.

His shrewd, calculating nature came to his aid, and benefit. Having decided that General Musharraf needed to go, Zardari played a cunning hand, using the army chief at the time to get Musharraf evicted from the presidency. No one at the time realized that Zardari actually wanted the job for himself.

The presidency solidified his grip on power. Although he buried Article 58(2)(b) of the Constitution as president, the PPP government continued to be run from the President House, with key decisions always in Zardari’s hands.

Although that term led to speculation that the PPP would be wiped out from nearly everywhere except Sindh, Zardari had prepared in advance with the 18th Amendment. It allowed him to keep a foot in the corridors of power while plotting his comeback for another time.

In recent years, with rival parties much larger than his own engaged in a long-running death match, Zardari did not take his eyes off the ladder.

After the 2024 elections, he has emerged as a kingmaker yet again. He has also managed to secure the maximum concessions for his own party (and himself), while giving very little to the PML-N in return.

Even his fiercest rivals begrudgingly acknowledge that Zardari is a deal-maker par excellence. He has been written off and made a comeback so many times that his doubters have simply stopped trying.

They say that “the only thing certain in life is death and taxes”; in Pakistan, it might as well be “death, taxes, and Zardari’s political relevance”.

The man has been derided as a Machiavellian leader, a shrewd and cunning politician interested only in self-enrichment. Yet, he is also the first democratically elected president to serve out a five-year tenure, and likely to become the only person to have held that office twice.

 

 

Stock market posts lackluster movement

The week ended on March 08, 2024 started on a positive note, with the index gaining 1% on the opening day. However, as the week progressed, profit taking activities ensued, losing some of the initial gains. Nonetheless, by the week's end, the benchmark index managed to maintain an upward momentum, closing at 65,326 points with a gain of 468 points or 0.7%WoW.

With new Prime Minister taking office and issuing immediate directives focusing on engaging with the IMF and addressing privatization matters set an initial positive impetus. With new setup in place the IMF started rolling out new recommendations and is poised to unveil more with the appointment of the finance minister.

Government’s next major task will be to smoothly navigate the second review of the SBA. IMF’ team is scheduled to visit following the formation of the new cabinet, as SBA program is set to expire in April 2024.

The recent decline in cut-off yields for 3-month papers in last T-bill auction hints volatility, suggesting that some players anticipate a rate cut in the upcoming Monetary Policy Committee meeting on March 18.

Remittances for February totaled US$2.25 billion, up 13%YoY and with trade deficit of US$1.7 billion for the month.

Market participation remained subdued, with the daily traded volume averaging 412 million shares as compared to 418 million shares in the earlier week, down 1.6%WoW.

On the currency front, rupee held its ground against the greenback, closing at PkR279.04/US$.

Other major news flows during the week included; 1) Jul-Jan debt during first seven months of the current financial year rose by 6 percent, 2) SBP injected PKR8 trillion to ease liquidity crunch, 3) Bank deposits surged nearly 21%YoY in February on record-high interest rates and remittances, 4) cement dispatches in February fall 19% to 3.26 million tons, and 5) Textile exports hit US$1.41 billion in February, up 20%YoY.

Sector-wise, Transport, Refinery, and Inv. Banks/ Securities cos. were amongst the top performers, while Tobacco, Modarabas, and Textile weaving were amongst the worst performers.

Major net selling was recorded by Companies with a net sell of US$6.8 million. Foreigners absorbed most of the selling with a net buy of US$6.3 million.

Top performing scrips of the week were: NRL, DAWH, CNERGY, PAEL and PSX, while the laggards included: SML, FCEPL, PAKT, MEBL and SHFA.

The upcoming MPC meeting will remain in the limelight. With prevailing consensus of the status quo, the market is likely to remain largely unaffected as this expectation is already priced in. However, if there is any surprise cut, it could unlock funds towards debt-heavy cyclical sectors.

The imminent announcement of the federal cabinet in the coming week holds significance, with progress on the IMF's SBA third tranche as a near-term focal point and a potential positive in sight.