US opposition of Iran-Pakistan gas pipeline

While US Assistant Secretary of State Donald Lu’s recent testimony before a Congressional panel contained no bombshells about the cipher saga, the American diplomat’s replies to questions from lawmakers about the Iran-Pakistan gas pipeline should certainly be cause for concern.

American reservations over the gas project clearly infringe on Pakistan’s sovereign right to take independent foreign policy decisions.

Lu told lawmakers that it was an American goal to ensure the pipeline is not completed. Using highly undiplomatic language, he observed that if they [Pakistan] get in bed with Iran, it will be very serious for our relationship.

The Foreign Office reaction to these comments was measured, as the spokesperson told the media that there was no room for discussion on a third-party [US] waiver, while the pipeline plays an important role in Pakistan’s energy security.

It is hoped that the state remains steadfast in upholding its commitments to the project, and rejects unwarranted foreign pressure.

Until the caretaker government gave the go-ahead for revitalizing the pipeline last month, the scheme had been in the doldrums for over a decade, mainly out of concern over attracting America’s wrath.

Pakistan should be the best judge of its energy requirements, and unsolicited advice such as that offered by Lu should be rejected with thanks. The American official also questioned how Pakistan would procure the financing to complete the scheme. Again, that should be Pakistan’s headache, not anyone else’s.

The fact is that the Iran pipeline appears to be a viable energy project, as the other major regional scheme — the Turkmenistan-Afghanistan-Pakistan-India pipeline — is in deep freeze particularly after the Taliban takeover of Afghanistan. Moreover, if Pakistan reneges on the deal with Iran, it risks entering a messy litigation process, and paying a hefty US$18 billion in penalty.

Lu’s comments should also serve as a warning to our policymakers of the demands some of our friends may make of us in future as geopolitical turbulence increases.

For instance, today, Washington has issues with CPEC and the Iran pipeline; tomorrow it could let its displeasure be known regarding our relations with Moscow or other American foes.

Pakistan should be ready to face such criticism, and take decisions that are in the national interest.

Pakistan values its ties with the US and other Western states. But this does not mean relations with other states/ blocs should be held hostage to the whims of its Western partners.

However, it is also true that Pakistan can only take truly independent decisions when it does not have to depend on others to keep its economy afloat.

India and China can ignore US strictures about not trading with Russia because of their economic heft. Pakistan must heal itself if it wants to achieve true sovereignty.

Courtesy: Dawn

United States has ruined Haiti and Honduras

Haiti and Honduras have made headlines in the last few weeks. Honduras’ former president, Juan Orlando Hernández, was just convicted in a US court of drug trafficking. He faces life in prison. Haiti is a nation without a government, as armed groups have united against the US-backed, unelected Prime Minister installed after the assassination of their president in 2021.

US intervention in Haiti, Honduras and other countries is one of the principal drivers of people seeking asylum in the United States, as they flee violence, poverty and persecution at home. This point is almost never mentioned in the US press. To understand and ultimately solve the immigration crisis, Americans need to understand what their government has long done in their name, with their tax dollars–arming and propping up brutal regimes abroad.

In both cases, what is missing from mainstream news coverage is the role of US intervention that brought them to this point. “The crisis in Haiti is a crisis of imperialism,” University of British Columbia Professor Jemima Pierre, a Haitian American scholar, explained on the Democracy Now! news hour. 

In her NACLA Report article headlined, Haiti as Empire’s Laboratory, she describes her home country as the site of the longest and most brutal neocolonial experiment in the modern world.

Haiti was the world’s first Black republic, founded in 1804 following a slave revolt. France demanded Haiti pay reparations, for the loss of slave labor when Haiti’s enslaved people freed themselves. For more than a century, Haiti’s debt payments to France, then later to the US, hobbled its economy.

The United States refused to recognize Haiti for decades, until 1862, fearful that the example of a slave uprising would inspire the same in the US.

In 1915, the US invaded Haiti, occupying it until 1934. The US also backed the brutal Duvalier dictatorships from 1957 to 1986. Jean-Bertand Aristide became Haiti’s first democratically-elected president in 1991, only to be ousted in a violent coup eight months later. The coup was supported by President George W. Bush and later by President Bill Clinton.

Public pressure forced Clinton to allow Aristide’s return in 1994, to finish his presidential term in 1996. Aristide was reelected in 2001.

“In 2004…the US, France and Canada got together and backed a coup d’état against the country’s first democratically elected president, Jean-Bertrand Aristide,” Jemima Pierre continued. “The US Marines… put him on a plane with his security officials, his wife and aide, and flew them to the Central African Republic.”

Democracy Now! traveled to C.A.R. in 2004 covering a delegation led by Transafrica founder Randall Robinson and US Congress member Maxine Waters who defied US policy and escorted the Aristides back to the Western Hemisphere. Aristide confirmed to Democracy Now! then that he had been ousted in a coup d’état backed by the United States. Aristide then went to live in exile in South Africa for the next seven years. In response to allegations that gangs are currently controlling Haiti, Professor Pierre said, “The so-called gang violence is actually not the main problem in Haiti. The main problem in Haiti is the constant interference of the international community, and the international community here is, very explicitly, the US, France and Canada.”

The Biden administration is reportedly now considering the transfer of Haitian asylum seekers to the controversial US Navy base at Guantanamo Bay, Cuba – a repeat of some of the worst US policies in its long history of exploitation of Haitians. Honduras, meanwhile, currently has a democratically elected president, Xiomara Castro. Her husband, Manuel “Mel” Zelaya, was elected president in 2006, then ousted in a US-backed coup in 2009. In the following years, Honduras descended into a narco-state, forcing hundreds of thousands to flee violence, seeking asylum in the United States and elsewhere.

In 2013, Juan Orlando Hernández was elected president amidst allegations of campaign finance violations, then again in 2017 in an election widely considered fraudulent.

Shortly thereafter, his brother Juan Antonio Hernández was arrested in Miami for drug trafficking. Then, following Xiomara Castro’s election, Juan Orlando Hernández himself was arrested and extradited to the US for cocaine trafficking. On March 8th, he was convicted in US federal court, and is currently awaiting sentencing.“

The evidence was chilling,” history professor Dana Frank, who was in the courtroom, said on Democracy Now! “This litany of assassinations of prosecutors, assassinations of journalists, corruption of the police, the military, politicians, the president, his brother, you name it. And it was like the curtain was drawn back, and you could see the day-to-day workings of this tremendous violent, corrupt mechanism that was the Juan Orlando Hernández administration…this was what happened after the 2009 coup that opened the door for the destruction of the rule of law in Honduras.”

Courtesy: Information Clearing House

Growing number of countries ready to recognize Palestine

The leaders of Spain, Ireland, Slovenia and Malta have announced they stand ready to recognize the State of Palestine as the only way to achieve peace and security in the war-ridden region.

The four leaders gathered on the margins of a summit in Brussels on Friday to discuss their readiness to recognize Palestine, adding they stand ready to do so when it can make a positive contribution and the circumstances are right.

“We are agreed that the only way to achieve lasting peace and stability in the region is through implementation of a two-state solution, with Israeli and Palestinian States living side-by-side, in peace and security,” a joint statement by the four heads of government reads.

Speaking after the summit, Slovenian Prime Minister Robert Golob said he believed a lot could be done in the next week to strengthen political backing for a Palestinian state in the United Nations. Golob added he was sure that the moment when conditions for establishing a new government in Palestine will be ripe could be a few weeks, maybe a month away.

Nine of the EU’s 27 member states currently recognize Palestinians’ right to a state according to the so-called 1967 borders, which includes the West Bank, the Gaza Strip and East Jerusalem.

Malta, along with eastern states such as Bulgaria, the Czech Republic, Romania and Slovakia, have recognized the Palestinians’ right to statehood since 1988. In 2014, Sweden became the first member state to unilaterally recognise Palestinians’ right to statehood while a member of the bloc.

The Slovenian premier confirmed a representative also attended the meeting on behalf of the Belgian government, seen as another staunch supporter of Palestinians’ fight for statehood.

Belgium currently holds the 6-month rotating Presidency of the Council of the EU, responsible for overseeing its work and therefore likely restricted from signing such declarations.

Although the European Union supports the two-state solution – which would deliver statehood for Palestinians – and is the single biggest donor of aid to Palestinians, it has not yet unanimously backed the recognition of a Palestinian state.

“The debate on the recognition of Palestine was not on the table,” European Council President Charles Michel explained on Friday.

“But I will share with you what I think about it. I think that if the idea is to start a kind of process so it’s possible to take into account steps that could be made on both sides – by the Palestinian Authority, for instance, and by Israel – then it could be a useful process.”

Since the outbreak of the war in Gaza, both Ireland and Spain have repeatedly expressed readiness to recognize Palestine, and spearheaded efforts to toughen the EU’s stance on Israel in response to the excessive loss of life in Gaza.

In a breakthrough on Thursday, the EU’s 27 leaders unanimously called for a ceasefire in Gaza for the first time since the outbreak of the war between Israel and Hamas.

Last November, Spanish Prime Minister Pedro Sánchez vowed that his newly formed government would make the recognition of Palestinian statehood its main priority in terms of foreign policy.

Speaking after the Brussels summit on Friday, Sánchez suggested to reporters that Spain preferred to move in lockstep with other EU countries rather than recognizing a Palestinian state unilaterally, an idea it has flirted with in the past.

“We want to take this step united. It’s a decisive step in order to lay the foundations of a lasting peace,” he said, adding that the EU should carefully calibrate the right moment to take the step.

Sánchez also suggested that the fact the four leaders represented all sides of the political spectrum – with Spain and Malta governed by centre-left parties, Slovenia by a Liberal party, and Ireland by a centre-right party – showed there was broad political consensus that the recognition of Palestine is necessary for any future peace process.

In February, Irish Taoiseach Leo Varadkar also confirmed a group of member states were in talks to formally recognize Palestine to enable a more equal negotiation to happen when the war raging in Gaza comes to an end.

 

Saudis commit US$101 million for Pakistan

The Saudi Fund for Development (SFD), Chief Executive Officer, Sultan Abdulrahman Al-Marshad and Secretary of the Ministry of Economic Affairs of Pakistan Dr. Kazim Niaz signed two strategic development loan agreements totaling US$101 million to bolster Pakistan's clean energy sector.

These agreements, valued at US$66 million for the Shounter Hydropower Project and US$35 million for the Jagran-IV Hydropower Project, aim to significantly enhance Pakistan's renewable energy infrastructure by adding a combined total of 70MW hydropower capacity to the national grid.

The funding will facilitate the construction of essential infrastructure, including dams, water diversion systems, powerhouses, and transmission lines, marking a significant step forward in Pakistan's transition towards sustainable energy sources.

These projects not only aim to address the environmental and financial challenges associated with conventional energy sources but also underscore the critical role of clean energy in promoting sustainable development, economic growth, and social welfare across Pakistan.

This move reinforces the SFD's long-standing commitment to supporting Pakistan's development goals, having financed 41 development projects and programs since 1976 with soft loans and grants exceeding US$1.4 billion, aimed at fostering growth in various critical sectors throughout the country.

US-led UN resolution on Gaza ceasefire vetoed

The United Nations Security Council on Friday turned down a resolution calling for an immediate ceasefire in Gaza and an Israel-Hamas hostage deal after Russia and China vetoed the measure proposed by the United States.

The resolution, on which Algeria also voted no and Guyana abstained, called for an immediate and sustained ceasefire lasting roughly six weeks that would protect civilians and allow for the delivery of humanitarian assistance. Eleven of the 15 council members voted for the resolution, but the Russia and China vetoes stopped its passage.

The council will meet at 1400 GMT on Saturday to vote on an alternative resolution drafted by elected members of the Security Council, diplomats said.

That resolution demands an immediate ceasefire for the current Muslim holy month of Ramadan, the release of all hostages and an expanded flow of humanitarian assistance to Gaza.

The draft does not include provisions supporting ongoing diplomatic efforts to secure a ceasefire - an element of the US resolution. Washington has been working with Qatar and Egypt to try to broker a deal.

Friday was the first time Washington had backed a text that came up for a vote with the word "ceasefire" in it during the war in Gaza, reflecting a toughening of the Biden administration's stance toward Israel.

Earlier in the five-month-old war, the US was averse to the word ceasefire and vetoed measures that included calls for an immediate ceasefire.

"The vast majority of this council voted in favor of this resolution, but unfortunately Russia and China decided to exercise its veto," US Ambassador to the United Nations Linda Thomas-Greenfield told the Security Council.

She accused Russia and China of vetoing the resolution for cynical and petty reasons. She said they opposed it simply because it was penned by the US and criticized both countries for not condemning Hamas's October 07 attack on Israel.

"For all the fiery rhetoric, we all know that Russia and China are not doing anything diplomatically to advance a lasting peace or to meaningfully contribute to the humanitarian response effort," she told the council after the vote.

The US has wanted any Security Council support for a ceasefire to be linked to the release of hostages held by Hamas in Gaza. Palestinian Hamas fighters killed 1,200 people and took 253 captive in their Oct. 7 attack, Israel has said.

Nearly 32,000 Palestinians have been killed in Israel's subsequent offensive in the Gaza Strip, according to health authorities in the Hamas-ruled enclave.

Russia's ambassador to the UN, Vassily Nebenzia, said the US-led resolution was exceedingly politicized and contained an effective green light for Israel to mount a military operation in Rafah, a city on the southern tip of the Gaza Strip where more than half of the enclave's 2.3 million residents have been sheltering in makeshift tents.

"This would free the hands of Israel and it would result in all of Gaza and its entire population having to face destruction, devastation, or expulsion," Nebenzia told the meeting.

China's UN ambassador, Zhang Jun, criticized the text proposed by the US for not clearly stating its opposition to a planned military operation by Israel in Rafah, which he said could lead to severe consequences. He said Beijing also supported the alternative.

But Thomas-Greenfield said that measure fell short.

"In its current form, that text fails to support sensitive diplomacy in the region. Worse ... it could actually give Hamas an excuse to walk away from the deal on the table," she said.

French President Emmanuel Macron said on Friday that his country would work with Jordan and the United Arab Emirates to persuade Russia and China to back yet another alternative resolution at the United Nations for a ceasefire in Gaza.

 

 

Russia: 40 killed in attack on concert hall

The Islamic State claimed responsibility for an attack in which at least dozens of people were killed and wounded when individuals reportedly armed with automatic weapons opened fire at Crocus City Hall, a concert venue in suburban Moscow, Russia.

"According to preliminary data, as a result of the terrorist attack at the Crocus City Hall building 40 people were killed and over 100 were injured," Russia's Federal Security Service (FSB) said in a statement reported by TASS.

Citing eyewitnesses, the Russian news agency reported that the group of unidentified men "armed with assault rifles went on a shooting spree in the lobby and then inside the concert hall just before a concert by the rock band Picnic."

The attack comes on the heels of Russian President Vladimir Putin's contested reelection and over two years into Russia's invasion of Ukraine, which has received weapons support from around the world, including the United States.

In a lengthy social media post, Mykhailo Podolyak, an adviser to Ukrainian President Volodymyr Zelenskyy, said that Ukraine certainly has nothing to do with the shooting/explosions in the Crocus City Hall.

"There is not the slightest doubt that the events in the Moscow suburbs will contribute to a sharp increase in military propaganda, accelerated militarization, expanded mobilization, and, ultimately, the scaling up of the war," Podolyak added. "And also to justify manifest genocidal strikes against the civilian population of Ukraine."

According to The Guardian, John Kirby, the White House national security spokesperson, told reporters that there's no indication at this time that Ukraine, or Ukrainians were involved in the shooting... We're taking a look at it, but I would disabuse you at this early hour of any connection to Ukraine."

Asked whether the attack signals cracks in Putin's regime, Kirby said that there are people in Moscow and in Russia that object to the way Putin is governing the country, but I don't think we, at this early hour, can make a link between the shopping mall attack and political motivations. I think... we just need more time and we need to learn more information."

 

Pakistan Stock Exchange benchmark index closes almost flat

The week ending on March 22, 2024 started on a positive note, witnessed uncertainty over interest rate cuts erasing some gains from the initial days. Overall the benchmark index closed at 65,152 points, with a gain of 335 points or 0.5%WoW.

On Monday, State Bank of Pakistan (SBP) decided to maintain the interest rate at 22%, the decision did not impact the stock market as it was already expected and priced-in.

The talks with the IMF mission on the SBA’s second review concluded on Tuesday with staff-level agreement, resulting in infused positivity into the equity market and international investors as well with appreciation in dollar bonds and Pakistan Stock Exchange benchmark index.

As discussions progressed, prerequisites for the next medium-term programs have surfaced, primarily focusing on broadening the tax base. News has circulated about a new plan to collect taxes from retailers through electricity bills, which has been shared with the IMF.

Additionally, IMF has recommended eliminating GST exemptions on petroleum products and other taxes, whereby, despite a easing weekly inflation, an increase in gas price (as sought by Sui twins) and implementation of 18%GST on POL products pose risks to the inflation outlook.

On the economic front, current account for February 2024 turned positive, with a surplus of US$128 million, bringing 8MFY24 CAD below the US$1.0 billion mark.

With a controlled current account balance, SBP’s reserve position also improved by US$105 million WoW to reach US$8.0 billion as of March 15, 2024.

With the IMF's smooth review, market participation improved by 13%WoW, with the daily traded volume averaging at 323 million shares as compared to 287 million shares a week ago.

Other major news flows during the week included: 1) During first eight months of the current financial year the GoP borrowed US$6.678 billion from multiple sources, 2) FDI dropped over 17% to US$820.6 million during these eight months, 3) IT exports raised by 32% to US$257 million during February, and 4) the Supreme Court ordered NBP National Bank of Pakistan to pay PKR60 billion in pensions to retired employees.

The top performing sectors of the week were Transport, Inv. banks/ securities cos. and Tobacco, while Synthetic & Rayon, Cement, and Refinery were amongst the worst performers.

Major selling was recorded by companies with a net sell of US$9.0 million. Insurance absorbed most of the selling with a net buy of US$24.1 million.

Top performing scrips of the week were: Company-wise, top performers during the week were: NBP, DAWH, PTC, CEPB, and MEBL, while laggards included: NRL, PIOC, CNERGY, HCAR, FCCL.

With the aforementioned tax reforms, price increases, particularly with the imposition of GST on POL products, could pose a risk to the CPI outlook and potential delay in interest rate cuts, resulting in restrained market performance. However, successful implementation of tax reforms would have a positive impact on long-term economic stability.

Additionally, with SBP REER increasing to 102.2 in February 2024, there is a risk of PKR depreciation, especially in case of increased smuggling or imports.

Investors are advised to remain cautious and maintain positions in strong valuation main board stocks, particularly those offering attractive dividend yields.