March 27 declared Saudi Green Initiative Day

The Council of Ministers chaired by Custodian of the Two Holy Mosques King Salman here on Tuesday, designated March 27 each year as an official day for the Saudi Green Initiative.

The Cabinet also approved that the Royal Commission for Makkah City and Holy Sites will be the supervising body for the Project of the Custodian of the Two Holy Mosques Center for Cosmic Sciences and Crescent Observations, as well as for the Makkah Clock, and the internal and external crescent observatories.

In a statement to the Saudi Press Agency following the session, Minister of Media Salman Al-Dosary said that the Cabinet hailed the United Nations General Assembly’s adoption of a resolution on “Measures to Combat Islamophobia” and the appointment of a UN Special Envoy to combat Islamophobia. In this regard, the Cabinet reaffirmed Saudi Arabia’s commitment to international efforts countering extremist ideologies, disrupting their funding, and fostering peace, dialogue, and coexistence for global prosperity.

The Cabinet also welcomed the decisions of the international conference, organized by the Muslim World League (MWL) in Makkah under the theme “Building Bridges between Islamic Schools of Thought and Sects.” The session thanked the scholars, who came to attend the conference from around the Muslim world, for their appreciation and acknowledgement of the Kingdom’s significant efforts in serving Islam and Muslims, taking care for the Two Holy Mosques and their visitors, as well as for enhancing Islamic solidarity.

At the outset of the session, the Cabinet was briefed on the contents of the message received by Crown Prince and Prime Minister Mohammed bin Salman from the president of Uzbekistan, and the phone call that the Crown Prince had received from the secretary general of the United Nations, which discussed the latest developments, particularly the situation in Gaza.

Al-Dosary noted that the Council underscored the Kingdom’s continuous support for charitable work in the Kingdom and its emphasis on maximizing its impact on members of society. It further highlighted the achievements of the Fourth National Campaign for Charitable Work in its early days, noting the massive response that reflected the outstanding examples of solidarity and competition among benefactors in acts of goodness, generosity, and giving.

The Cabinet hailed a significant economic milestone with regard to contributing non-oil activities 50 percent share of the country's real GDP in 2023, saying that this achievement aligns with the objectives of Vision 2030 to diversify its resources and achieve a thriving economy. “This success signifies the effective implementation of Saudi Vision 2030’s programs and major projects to foster new growth engines beyond oil.”

The Council approved an agreement between the Saudi government and the International Monetary Fund (IMF) to establish the IMF’s regional office in Riyadh. It endorsed a memorandum of scientific and educational cooperation between the Saudi Ministry of Education and the Omani Ministry of Higher Education, Scientific Research and Innovation.

The Cabinet authorized the Minister of Culture or his deputy to discuss and sign with the Turkish side a draft memorandum of understanding (MoU) on cooperation in the cultural field between the Saudi Ministry of Culture and the Turkish Ministry of Culture and Tourism. The Council authorized the Minister of Tourism and Chairman of the Board of Directors of the Saudi Tourism Authority or his deputy to discuss and sign with the Korean side a draft MoU for cooperation in the field of tourism promotion and marketing between the Saudi Tourism Authority and the Korean Tourism Organization.

The Cabinet endorsed a MoU between the Saudi Food and Drug Authority (SFDA) and the Indonesian Halal Product Assurance Organizing Body for cooperation in ensuring the quality of halal products. A cooperation agreement was also endorsed between the Saudi Presidency of State Security and the Tunisian General Directorate of National Security in the field of combating terrorism crimes and it’s financing

Lu highlights poll irregularities in Pakistan

Ahead of his appearance at a Congressional panel on Tuesday, US Assistant Secretary of State Donald Lu submitted a written statement expressing Washington’s concerns about irregularities in the February 08, 2024 elections while also emphasizing the need to stay engaged with Pakistan to help it navigate through the crises it is facing, reports Pakistan’s leading English newspaper.

Lu is the diplomat whose supposed warning to former Pakistan Ambassador to the United States, Asad Majeed was the subject of a cipher sent by the envoy to Islamabad. This is the same document that former PM Imran Khan used to allege a US conspiracy to oust his government in 2022. Khan is currently on trial for mishandling the same confidential document.

Lu is scheduled to testify today before a subcommittee of the US House Committee on Foreign Affairs, at a hearing titled ‘Pakistan After the Elections: Examining the Future of Democracy in Pakistan and the US-Pakistan Relationship’.

This bipartisan hearing is expected to draw significant attendance from both Democratic and Repub­lican legislators.

US diplomat stresses need to help Islamabad navigate economic challenges

In his written testimony, Lu highlights Washington’s concerns about election irregularities in Pakistan, which encompass restrictions on freedoms, electoral violence, and allegations of interference.

He also mentions that several political leaders faced obstacles, such as the inability to register specific candidates and political parties, which disadvantaged them in the electoral process.

Additionally, he highlights the harassment and abuse faced by many journalists, particularly female journalists, at the hands of party supporters.

However, he also acknowledges positive aspects, such as a significant turnout of over 60 million voters, including more than 21 million women, and a record number of women and minority candidates.

His statement emphasizes the importance of fortifying Pakistan’s democratic institutions and fostering economic stability through avenues such as development grants, private sector investment, and humanitarian aid. He also recognizes Pakistan’s mounting debt challenges and stresses the necessity of economic reforms and private sector-led investments to spur economic growth.

Underscoring the significance of counterterrorism cooperation with Pakistan, Lu also advocates for respecting human rights and religious freedoms. Additionally, he commits to collaborating with the subcommittee to implement US policy in Pakistan and advance a vision of a peaceful, democratic, and prosperous nation.

The written testimony, uploaded to the House subcommittee’s website a day ahead of the hearing, notes that Islamabad is an important US partner, being the top destination for Pakistan’s exports.

“Unfortunately, Pakistan is facing mounting debt challenges after the past decade of elevated borrowing, including from [China]. This year, nearly 70 per cent of the federal government’s revenue is expected to go to payments to service this massive debt,” Lu says, explaining why the US needs to stay engaged with Pakistan.

“Pakistan needs economic reforms and private sector-led investments that will deliver economic growth for the Pakistani people and not dig their government deeper into debt,” he adds.

 

Iran Expo 2024 to host 3,000 foreigners

Some 3,000 foreign traders and businessmen are expected to participate in the 6th International Export Potential Exhibition of the Islamic Republic of Iran, dubbed Iran Expo 2024, an official with the Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) said.

The exhibition will be inaugurated on April 27 and run through May 1, 2024, the ICCIMA deputy head for commissions, assemblies, and council affairs stated in a meeting held with the participation of representatives of the joint chamber of commerce.

Noting that the first edition of the Iran Expo was held in 2013, Ali Chagharvand predicted that 3,000 foreign traders and merchants from various countries would partake in the latest edition of the exhibition.

This exhibition will cover seven major groups of commodities including food industries, agriculture and fisheries, handwoven carpets, handicrafts and tourism, medicine, medical equipment and chemical products, building industry, technical and engineering services, and also the petrochemical group.

Promoting trade and economic relations with other countries, booming production, propelling the business environment of the private sector to the international arena, and creating a new trade and economic discourse with various countries have been cited as the main aims of holding the exhibition.

The meeting was attended by the Chairman of the Iran-China Joint Chamber of Commerce Majid Reza Hariri and Vice Chairman of the Iran-Russia Joint Chamber of Commerce Roshanali Yekta.

 

United States: Disrupter of Global Trade

Washington has taken further steps to increase pressure on Tehran. This time, the White House, despite the negative impact of its decisions on the global stage, has leveraged its political influence on Panama to counter Tehran’s expansion of foreign policy.

The US has opted to exert pressure on Panama to prohibit Iranian vessels, sanctioned by Washington, from flying its flag. During a visit to Panama on Wednesday, Abram Paley, Deputy Special Envoy in the US Office of the Special Envoy for Iran, stated that the measure aims to prevent ships from being utilized for what he termed as illegal actions.

Paley emphasized in a statement that the US is endeavoring to enhance the enforcement of sanctions as part of a broader diplomatic outreach campaign. "Iran and affiliated entities are attempting to circumvent sanctions here in Panama," he remarked. "They seek to exploit Panama's flag registry."

"We anticipate that the Panamanian government will continue to collaborate with us in accordance with their domestic legislation and international commitments," Paley added.

Washington's recent action follows shortly after Iranian Oil Minister Javad Owji declared that Tehran's oil sales would remain unaffected by sanctions, even if Donald Trump were to win the US presidential elections in November.

Panama leads globally in providing flags of convenience, enabling shipping companies to register their vessels in countries with which they have no connection — for a fee and exemption from oversight.

It appears that the White House intends to reinforce the implementation of existing sanctions as the regional crisis escalates. This move by Washington stands in stark contrast to what Washington's Iran hawks call Biden's appeasement policy in West Asia.

The United States has consistently wielded its power as leverage to advance its interests, regardless of the potential repercussions on the regional and international scale. This approach is evident in the consistent US formula for intervening in the policy-making systems of other countries.

For instance, Washington's policy towards Caracas and the imposition of sanctions on Venezuela have served as tools for intervening in Venezuela's political system. Similarly, the US employs similar tactics in West Asia, as evidenced by the array of American military bases in the region and unwavering support for Tel Aviv. These actions reflect a policy that prioritizes Washington's interests above all else, irrespective of their broader effects.

The Biden Administration's pressure on Panama exemplifies this approach, indicating that Washington is not inclined to pursue diplomatic channels in its dealings with Iran. Instead, the primary objective appears to be preventing the Islamic Republic of Iran from expanding its political influence.

Despite the Biden administration's initial endorsement of a more conciliatory policy in West Asia and its expressed willingness to revive the 2015 Iran nuclear deal, formally called the JCPOA, the White House has demonstrated a lack of political resolve to take concrete actions. Moreover, the Biden administration has yet to lift any sanctions on Iran, failing to demonstrate a tangible commitment to resolving issues through diplomatic means. 

The recent US stance in Panama and its maneuver in the Red Sea have triggered alarm bells regarding their potential ramifications on the seamless flow of global trade. What emerges from these developments is a pattern of US behavior wherein the pursuit of its own interests takes precedence, even at the expense of disrupting international commerce. 

Take, for instance, the situation in Panama. The US exertion of pressure seems to transcend the immediate issue at hand, instead serving as a means to constrain Iran's influence. This strategic maneuver underscores Washington's inclination to prioritize geopolitical objectives over the broader interests of global trade. Similarly, the US confrontational stance towards certain factions in the Red Sea region has stirred unnecessary friction along a crucial trade artery.

Such actions raise legitimate concerns about the US approach to international affairs. By prioritizing its own objectives over collaborative efforts aimed at fostering global economic stability, the US risks sowing seeds of discord that could have far-reaching consequences. Indeed, this prioritization of unilateral interests over multilateral cooperation threatens to set off a chain reaction of instability, imperiling the very foundation upon which the global economy rests.

As the world navigates through increasingly complex geopolitical terrain, it becomes imperative for nations to uphold principles of cooperation and mutual benefit. The recent US actions serve as a sobering reminder of the dangers inherent in a myopic pursuit of national interests at the expense of broader global imperatives. Only through concerted efforts to promote dialogue, understanding, and collaboration can we hope to safeguard the integrity of the global trade system and steer clear of the choppy waters of economic uncertainty.

 

 

Pakistan: Central bank remains cautious ahead of some key milestones

The State Bank of Pakistan (SBP) maintained the policy rate at 22% for the seventh consecutive meeting. Despite considerable disinflation in February, the SBP chose to remain cautious. There remain risks to future inflation – from further increases in administrated prices (of energy) and tax measures in the FY25 budget could be inflationary. The decision was in line with market consensus.

Key reasons for the decision:

The outlook for GDP growth – in the range of 2-3% in FY24 – remains intact and is largely driven by the rebound in the agricultural sector (which does not respond to monetary policy), while the LSM growth has recently turned positive (down a moderate 0.5% YoY in 7MFY24).

Core inflation (urban), which had hitherto been sticky, fell to 18% in February from 20.5% in the earlier month, while urban wages growth has also slowed in recent months. Nonetheless, headline inflation remains elevated and warrants a cautious stance.

The external account has improved considerably as well. Current Account balance during July-January period was US$1.1 billion only, as compared to US$3.8 billion for the same period last year. This was mainly on the back of contraction in imports, down 11% YoY in 7MFY24 amid a slowing economy (also partly due to lack of flood induced imports last year).

Primary balance improved to 1.7% of GDP in 1HFY24 from 1.1% for the same period last year, on the back of strong growth in revenues and contained expenditure. The SBP considers the continuation of current fiscal consolidation as important to support the present monetary policy stance.

The decision was largely expected and thus will lead to a muted response from the equity and money markets.

Trends in the above macro indicators are encouraging and could support a first cut in rates in the April 2024.

However, a key factor for future monetary policy will be talks with the IMF for a new program, which may commence at the IMF-World Bank Spring meetings due 19-21 April 2024.

That will shape the FY25 Budget and whether the IMF demands further adjustments in energy prices and exchange rate during the negotiations.

 

 

Putin’s victory attracts mixed reactions

Western governments lined up on Monday to condemn Vladimir Putin's landslide election victory as unfair and undemocratic, but China, India and North Korea congratulated the veteran Russian leader on extending his rule by a further six years.

The contrasting reactions underscored the geopolitical fault lines that have gaped wider since Russia launched a full-scale invasion of Ukraine two years ago, triggering the deepest crisis in relations with the West since the end of the Cold War.

Arriving in Brussels on Monday, EU foreign ministers roundly dismissed the election result as a sham ahead of agreeing sanctions on individuals linked to the mistreatment and death of Kremlin critic Alexei Navalny.

"Russia's election was an election without choice," German Foreign Minister Annalena Baerbock said at the start of the meeting.

Playing on Moscow's reference to its war in Ukraine as a special military operation, French Foreign Minister Stephane Sejourne said Paris had taken note of the special election operation.

"The conditions for a free, pluralistic and democratic election were not met," his ministry said.

British Foreign Secretary David Cameron said the election outcome highlighted the depth of repression in Russia.

"Putin removes his political opponents, controls the media, and then crowns himself the winner. This is not democracy," Cameron said.

France, Britain and others condemned the fact that Russia had also held its election in occupied regions of Ukraine that it claims to have annexed during the war.

The Kremlin dismissed such criticism, saying the 87% of the vote won by Putin during the three-day election showed that the Russian people were consolidating around him.

Ukrainian President Volodymyr Zelenskiy said Russia's election had no legitimacy.

A White House spokesperson on Sunday said Russia's election was obviously not free nor fair. President Joe Biden has not yet commented.

In sharp contrast, Chinese President Xi Jinping congratulated Putin, and said Beijing would maintain close communication with Moscow to promote the no limits partnership they agreed in 2022, just before Russia invaded Ukraine.

"I believe that under your leadership, Russia will certainly be able to achieve greater achievements in national development and construction," Xi told Putin in his message, according to Xinhua News.

Indian Prime Minister Narendra Modi echoed that message, saying he looked forward to strengthening New Delhi's time-tested special and privileged strategic partnership with Moscow.

India and China, along with Russia, are members of the BRICS group of emerging economies that aims to challenge US domination of the global economy.

North Korean leader Kim Jong Un and Iran's President Ebrahim Raisi, accused by the West of supplying weapons to Russia, also extended congratulations to Putin, stressing their desire for further expansion of bilateral relations with Moscow.

In Africa, where the West has been struggling to win support for its efforts to isolate Moscow over the Ukraine war, some newspapers saw Putin's re-election as reinforcing the stance of Burkina Faso, Mali and Niger.

Those three states in the Sahel region have strengthened ties with Russia following coups in recent years at the expense of their traditional French and US allies.

"In Africa, this re-election could sound like a non-event, but given the context in the Sahel it takes on a particular meaning, because Putin embodies the new geopolitical balance of power on the continent with a growing (Russian) presence and influence," said Burkina Faso daily Aujourd'hui au Faso".

 

 

Netanyahu to defy allies on Rafah invasion

Israeli Prime Minister Benjamin Netanyahu has reaffirmed his determination to launch an offensive in Rafah, defying international criticism. The city is crammed with some 1.5 million Palestinians from other parts of Gaza seeking refuge.

His comments come as the German chancellor, on a Middle East trip, restated his opposition to the plan.

Netanyahu said "no international pressure will stop Israel" from achieving all of its war aims.

"If we stop the war now before achieving all of its goals, the meaning is that Israel had lost the war and we will not allow this," Netanyahu told a meeting of his Cabinet.

He said Israel must be able to continue its war, with the aims of eliminating Hamas, releasing all hostages and ensuring Gaza "no longer pose a threat". "To do this, we will also operate in Rafah."

Netanyahu said the offensive in city at the southern tip of the Gaza Strip "will happen" and will take "several weeks". He also lashed out at his critics; saying to them is your memory so short?

"So quickly you forgot about October 07, the worst massacre committed against Jews since the Holocaust." Those attacks, in which about 1,200 people were killed and more than 250 were taken hostage from Israel, sparked the current war.

The Hamas-run Health Ministry in Gaza says more than 31,400 have been killed.

Israel's plans have been heavily criticized by the international community, with the UN and US also warning that a full-scale assault in Rafah could be disastrous.

Tedros Adhanom Ghebreyesus, the head of the UN's World Health Organization, on Friday appealed to Israel "in the name of humanity" not to launch such an attack on Gaza's southern-most city.

US President Biden has warned Israel against expanding its invasion in the city, calling it a "red line".

Nevertheless, Netanyahu's office approved plans for a military operation in Rafah on Friday, adding that the army was preparing for the evacuation of civilians.

The Israel Defense Forces (IDF) said it planned to move displaced Palestinians in Gaza to what it called "humanitarian islands" in the middle of the strip. It is not clear what the "islands" will look like, or how they will operate.

Ceasefire talks were expected to resume in Qatar in the coming days. Israel had planned to send a delegation to join the negotiations, but ministers were yet to agree on its mandate.