Friday 12 July 2024

Pezeshkian message to the world

Iran's President-elect, Masoud Pezeshkian, has issued a detailed letter outlining his policies. There is an urgent need to understand his message, particularly for the regional countries so that these don’t fall in the trap of anti-Iran and anti-Muslim elements. 

Following is the text of his message:
On May 19, 2024, the untimely passing of President Ebrahim Raisi - a deeply respected and dedicated public servant - in a tragic helicopter crash precipitated early elections in Iran, marking a pivotal moment in our nation's history.

Amidst war and turbulence in our region, Iran’s political system demonstrated remarkable stability by conducting elections in a competitive, peaceful, and orderly manner, dispelling insinuations made by some “Iran experts” in certain governments. This stability, and the dignified manner in which the elections were conducted, underscore the discernment of our Supreme Leader, Ayatollah Khamenei, and the dedication of our people to democratic transition of power even in the face of adversity. 

I ran for office on a platform of reform, fostering national unity, and constructive engagement with the world, ultimately earning the trust of my compatriots at the ballot box, including those young women and men dissatisfied with the overall state of affairs. I deeply value their trust and am fully committed to cultivating consensus, both domestically and internationally, to uphold the promises I made during my campaign.

I wish to emphasize that my administration will be guided by the commitment to preserving Iran's national dignity and international stature under all circumstances. Iran’s foreign policy is founded on the principles of "dignity, wisdom, and prudence", with the formulation and execution of this state-policy being the responsibility of the president and the government. I intend to leverage all authority granted to my office to pursue this overarching objective. 

With this in mind, my administration will pursue an opportunity-driven policy by creating balance in relations with all countries, consistent with our national interests, economic development, and requirements of regional and global peace and security. Accordingly, we will welcome sincere efforts to alleviate tensions and will reciprocate good-faith with good-faith. 

Under my administration, we will prioritize strengthening relations with our neighbors. We will champion the establishment of a "strong region" rather than one where a single country pursues hegemony and dominance over the others. I firmly believe that neighboring and brotherly nations should not waste their valuable resources on erosive competitions, arms races, or the unwarranted containment of each other. Instead, we will aim to create an environment where our resources can be devoted to the progress and development of the region for the benefit of all. 

We look forward to cooperating with Turkiye, Saudi Arabia, Oman, Iraq, Bahrain, Qatar, Kuwait, the United Arab Emirates, and regional organizations to deepen our economic ties, bolster trade relations, promote joint-venture investment, tackle common challenges, and move towards establishing a regional framework for dialogue, confidence building and development. Our region has been plagued for too long by war, sectarian conflicts, terrorism and extremism, drug trafficking, water scarcity, refugee crises, environmental degradation, and foreign interference. It is time to tackle these common challenges for the benefit of future generations. Cooperation for regional development and prosperity will be the guiding principle of our foreign policy. 

As nations endowed with abundant resources and shared traditions rooted in peaceful Islamic teachings, we must unite and rely on the power of logic rather than the logic of power. By leveraging our normative influence, we can play a crucial role in the emerging post-polar global order by promoting peace, creating a calm environment conducive to sustainable development, fostering dialogue, and dispelling Islamophobia. Iran is prepared to play its fair share in this regard. 

In 1979, following the Revolution, the newly established Islamic Republic of Iran, motivated by respect for international law and fundamental human rights, severed ties with two apartheid regimes, Israel and South Africa. Israel remains an apartheid regime to this day, now adding "genocide" to a record already marred by occupation, war crimes, ethnic cleansing, settlement-building, nuclear weapons possession, illegal annexation, and aggression against its neighbors. 

As a first measure, my administration will urge our neighboring Arab countries to collaborate and utilize all political and diplomatic leverages to prioritize achieving a permanent ceasefire in Gaza aiming to stop the massacre and prevent the broadening of the conflict. We must then diligently work to end the prolonged occupation that has devastated the lives of four generations of Palestinians. In this context, I want to emphasize that all states have a binding duty under the 1948 Genocide Convention to take measures to prevent genocide; not to reward it through normalization of relations with the perpetrators. 

Today, it seems that many young people in Western countries have recognized the validity of our decades-long stance on the Israeli regime. I would like to take this opportunity to tell this brave generation that we regard the allegations of antisemitism against Iran for its principled stance on the Palestinian issue as not only patently false but also as an insult to our culture, beliefs, and core values. Rest assured that these accusations are as absurd as the unjust claims of antisemitism directed at you while you protest on university campuses to defend the Palestinians' right to life. 

China and Russia have consistently stood by us during challenging times. We deeply value this friendship. Our 25-year roadmap with China represents a significant milestone towards establishing a mutually beneficial "comprehensive strategic partnership," and we look forward to collaborating more extensively with Beijing as we advance towards a new global order. In 2023, China played a pivotal role in facilitating the normalization of our relations with Saudi Arabia, showcasing its constructive vision and forward-thinking approach to international affairs. 

Russia is a valued strategic ally and neighbor to Iran and my administration will remain committed to expanding and enhancing our cooperation. We strive for peace for the people of Russia and Ukraine, and my government will stand prepared to actively support initiatives aimed at achieving this objective. I will continue to prioritize bilateral and multilateral cooperation with Russia, particularly within frameworks such as BRICS, the Shanghai Cooperation Organization and Eurasia Economic Union. 

Recognizing that the global landscape has evolved beyond traditional dynamics, my administration is committed to fostering mutually beneficial relations with emerging international players in the Global South, especially with African nations. We will strive to enhance our collaborative efforts and strengthen our partnerships for the mutual benefit of all involved. 

Iran's relations with Latin America are well-established and will be closely maintained and deepened to foster development, dialogue and cooperation in all fields. There is significantly more potential for cooperation between Iran and the countries of Latin America than what is currently being realized, and we look forward to further strengthening our ties. 

Iran’s relations with Europe have known its ups and downs. After the United States’ withdrawal from the JCPOA (Joint Comprehensive Plan of Action) in May 2018, European countries made eleven commitments to Iran to try to salvage the agreement and mitigate the impact of the United States’ unlawful and unilateral sanctions on our economy. These commitments involved ensuring effective banking transactions, effective protection of companies from US sanctions, and the promotion of investments in Iran. European countries have reneged on all these commitments, yet unreasonably expect Iran to unilaterally fulfill all its obligations under the JCPOA. 

Despite these missteps, I look forward to engaging in constructive dialogue with European countries to set our relations on the right path, based on principles of mutual respect and equal footing. European countries should realize that Iranians are a proud people whose rights and dignity can no longer be overlooked. There are numerous areas of cooperation that Iran and Europe can explore once European powers come to terms with this reality and set aside self-arrogated moral supremacy coupled with manufactured crises that have plagued our relations for so long. Opportunities for collaboration include economic and technological cooperation, energy security, transit routes, environment, as well as combating terrorism and drug trafficking, refugee crises, and other fields, all of which could be pursued to the benefit of our nations. 

The United States also needs to recognize the reality and understand, once and for all, that Iran does not—and will not—respond to pressure. We entered the JCPOA in 2015 in good faith and fully met our obligations. But the United States unlawfully withdrew from the agreement motivated by purely domestic quarrels and vengeance, inflicting hundreds of billions of dollars in damage to our economy, and causing untold suffering, death and destruction on the Iranian people—particularly during the Covid pandemic—through the imposition of extraterritorial unilateral sanctions. The US deliberately chose to escalate hostilities by waging not only an economic war against Iran but also engaging in state terrorism by assassinating General Qassem Soleimani, a global anti-terrorism hero known for his success in saving the people of our region from the scourge of ISIS and other ferocious terrorist groups. Today, the world is witnessing the harmful consequences of that choice. 

The US and its Western allies, not only missed a historic opportunity to reduce and manage tensions in the region and the world, but also seriously undermined the Non-Proliferation Treaty (NPT) by showing that the costs of adhering to the tenets of the non-proliferation regime could outweigh the benefits it may offer. Indeed, the US and its Western allies have abused the non-proliferation regime to fabricate a crisis regarding Iran's peaceful nuclear program - openly contradicting their own intelligence assessment - and use it to maintain sustained pressure on our people, while they have actively contributed to and continue to support the nuclear weapons of Israel, an apartheid regime, a compulsive aggressor and a non-NPT member and a known possessor of illegal nuclear arsenal. 

I wish to emphasize that Iran’s defense doctrine does not include nuclear weapons and urge the United States to learn from past miscalculations and adjust its policy accordingly. Decision-makers in Washington need to recognize that a policy that consists of pitting regional countries against each other has not succeeded and will not succeed in the future. They need to come to terms with this reality and avoid exacerbating current tensions. 

The Iranian people have entrusted me with a strong mandate to vigorously pursue constructive engagement on the international stage while insisting on our rights, our dignity and our deserved role in the region and the world. I extend an open invitation to those willing to join us in this historic endeavor. 

  

Iran: Zarif to lead transitional council

Iran's President-elect, Masoud Pezeshkian, has appointed former Foreign Minister Mohammad Javad Zarif as the head of the Strategic Council on Foreign Relations for the transition period in his first presidential decree. 

Zarif was one of the most prominent reformist figures backing Pezeshkian during his presidential campaign. The former foreign minister became a household name after he brokered the Joint Comprehensive Plan of Action (JCPOA) in 2015. 

The council, comprised of experts and advisors, will focus on assessing potential candidates for key cabinet positions and ensuring a seamless handover of leadership. 

In a message on his X account, Zarif said Pezeshkian has yet to choose candidates for any vice-presidency or ministerial positions. 

"So far, no candidate for any position, including first vice president, has even been considered,” the former top diplomat announced. "The review process will start after receiving proposals from NGOs, scientific associations, trade associations, and the private sector." 

The council is reportedly set to convene meetings with various stakeholders on Saturday to conduct thorough evaluations of potential candidates.

Pezeshkian's office had earlier issued a call for input on cabinet members, inviting a wide range of social groups and political parties to participate in the process. 

 

Pakistan Stock Exchange experiences volatility

During the week ended on July 12, 2024 Pakistan Stock Exchange remained volatile due to uncertainty surrounding the Supreme Court's verdict on reserved seats. The benchmark index closed at 79,944 points on Friday with a loss of 269 points or 0.33%WoW.

However, despite the verdict announced on Friday being in favor of the opposition party, the market managed to hold its ground.

On negotiations with IMF, the lender of last resort demanded the abolition of Sovereign Wealth Fund (PSWF) along with the implementation of 45% tax on agriculture income.

Prime Minister's announcement of a PKR50 billion subsidy for residential consumers of up to 200 units has yet to elicit a response from the IMF.

Alongside, NEPRA increased energy tariffs for other consumers’ categories by PKR3.9 to PKR7.1/kWh for FY25, while reducing rates for industrial consumers.

On the macroeconomic front, remittances for June 2024 rose to US$3.16 billion, an increase of 44%YoY. This brought the total remittances for FY24 to US$30.3 billion (up 11%YoY).

Meanwhile, passenger car and LCV sales dropped to their lowest level in 15 years, with only 104,000 units sold in FY24.

With the overall volatility in market, participation also remained down by 0.3%WoW, with the average daily traded volume remaining at 439 million shares.

On the currency front, PKR largely remained flat against the greenback, closing the week at PKR278.4/US$.

Other major news flows during the week included: 1) the GoP doubles PSDP spending to PKR705 billion, 2) GoP debt soars to PKR67.8 trillion in May, 3) Gop raises PKR442 billion through T-bills, yields fall by up to 18bps, and 4) Tax-to-GDP ratio in FY24 hovers 9%.

Auto assemblers, Automobile parts & accessories, and Woollen were amongst the top performers, while Miscellaneous, Vanaspati & allied industries, and RIET were amongst the worst performers.

Major net selling was recorded by Individuals and mutual funds with a net sell of US$2.58 million and US$2.48 million, respectively. Foreigners absorbed most of the selling with a net buy of US$3.96 million.

Top performing scrips of the week were: NBP, FFBL, UNITY, ABL and PKGP, while laggards included: SCBPL, TRG, THALL, YOUW and KTML.

According to AKD Securities, the market is expected to maintain a positive outlook, despite the potential for a short-term lackluster impact from recent political developments.

The rally overall is anticipated to persist due to the attractive valuations, with the forward P/E continuing to remain below 4.0x.

Market participants focus is anticipated to remain on upcoming inflation figures, the next Monetary Policy Committee meeting (schedule pending announcement), and ongoing negotiations with IMF over EFF program.

 

 

Gallant demands investigation against Netanyahu

Israeli Defence Minister Yoav Gallant on Thursday called for a state inquiry into failings around the October 07, 2023 Hamas attack, saying it should investigate Gallant himself and his boss, Prime Minister Benjamin Netanyahu.

Gallant made the comments at a graduation ceremony for new military officers, also attended by Netanyahu, whose coalition government is already strained by infighting.

The state inquiry, he said, "must be objective, it needs to investigate all of us, those who make decisions and those who carry them out, the government, the military, and the security agencies."

"It must investigate me, the defence minister, it must investigate the prime minister," Gallant said, to cheers from the crowd.

Netanyahu has dismissed past calls to form a state inquiry into the October 07 attack, which caught Israel off guard and sparked the war in Gaza, saying that examinations into what happened should be carried out once the war ends.

Only the government can decide to form a state commission of inquiry, which has a broad mandate and its findings carry weight. The chief justice of the Supreme Court chooses its members.

Gallant has broken ranks with Netanyahu before.

Last year, after months of nationwide protests against government plans to curb Supreme Court powers, Gallant said proposed legislation should be dropped, warning the public dispute could hurt national security.

Netanyahu immediately sacked him, spurring tens of thousands of Israelis to take to the streets in support of Gallant. The veteran prime minister eventually relented and Gallant kept his job.

Gallant has since clashed with Netanyahu over Gaza strategy, prompting some members of their Likud party to call for him to be dismissed from his post.

 

 

 

 

 

Oil tanker seized by Iran in 2023 bound for Oman port

According to Reuters, a Chevron-chartered oil tanker seized by Iran more than a year ago is heading toward the Sohar port in Oman, LSEG ship tracking data showed on Friday.

On Thursday, ship tracking data showed the vessel moving to international waters, with the destination showing as Khor Fakkan in the United Arab Emirates.

The Marshall Islands-flagged Advantage Sweet was boarded by Iran's military in the Gulf of Oman in April 2023 after an alleged collision with an Iranian boat.

There was no immediate comment from Chevron.

The US State Department called in March for the immediate release of the tanker.

To read details of the arrest click https://shkazmipk.blogspot.com/2023/04/iran-seizes-oil-tanker-in-gulf-of-oman.html



 

 

China hits back at NATO

Chinese foreign minister Wang Yi has hit back at NATO's "groundless accusations" that Beijing is helping Russia in its war on Ukraine. He has also warned the Western alliance against stirring up confrontation.

Wang's comments, made in a call with his Dutch counterpart, came hours after leaders of NATO member states gathered in Washington DC and issued a declaration on the war.

They accused China of being a "decisive enabler" of Russia through its "large-scale support for Russia's defense industrial base", in some of their harshest remarks yet about Beijing.

They called on China to stop "all material and political support" to Russia's war effort such as the supply of dual-use materials, which are items that can be used for both civilian and military purposes.

Western states have previously accused Beijing of transferring drone and missile technology and satellite imagery to Moscow.

The US estimates about 70% of the machine tools and 90% of the microelectronics Russia imports now come from China.

Beijing was also accused of conducting "malicious cyber and hybrid activities, including disinformation" on NATO states.

On Thursday, while speaking to the Netherlands' new foreign minister Caspar Veldkamp, Wang said "China absolutely does not accept" all these accusations and insisted that they have "always been a force for peace and force for stability".

In comments carried by state media, he said that China's different political system and values "should not be used as a reason for NATO to incite confrontation with China", and called for NATO to "stay within its bounds".

His remarks was the latest in a flurry of angry responses from Beijing.

Earlier on Thursday, a foreign ministry spokesperson said NATO was smearing China with "fabricated disinformation", while Beijing's mission to the European Union told the alliance to "stop hyping up the so-called China threat".

Beijing has long rebutted accusations that it has been aiding Russia in the war and insists that it remains a neutral party. It has called for an end to the conflict and proposed a peace plan, which Ukraine has rejected.

Besides the growing accusations of military support, observers have also pointed out that Beijing's purchases of vast amounts of oil and gas have helped prop up Russia's economy crippled by sanctions and replenish coffers drained by war spending.

Beijing's official rhetoric on the conflict often mirrors Moscow's — like them, China still does not call it a war — and Chinese President Xi Jinping has maintained a close relationship with President Vladimir Putin, with both of them famously declaring their partnership has "no limits".

Beijing has accused the US and other Western states of pouring "fuel on the fire" by supplying lethal weapons and technology to Ukraine for its defense.

In recent weeks, several countries have gone a step further and allowed Ukraine to use their weapons to hit targets inside Russia.

Thursday 11 July 2024

Biden refers to Zelenskiy as Putin

Joe Biden has been under intense scrutiny in recent days and has faced doubts, including from members and donors of his own Democratic Party, about his re-election chances after a weak and faltering performance in a debate late last month against Republican former President Donald Trump. He provided his critics yet another chance by addressing Zelenskiy as Putin at NATO Summit.

According to Reuters, US President Joe Biden on Thursday mistakenly referred to Ukrainian President Volodymyr Zelenskiy as Russian President Vladimir Putin before correcting himself at the NATO summit in Washington.

"And now I want to hand it over to the president of Ukraine, who has as much courage as he has determination, ladies and gentlemen, President Putin," Biden said, referring to Zelenskiy.

While correcting himself about two seconds later, Biden added: "President Putin, you're going to beat President Putin, President Zelenskiy. I am so focused on beating Putin."

The room at the summit gasped when Biden misidentified Zelenskiy as Putin. The comments came at an event in the summit during which Biden launched an initiative with allies aimed at supporting Ukraine's security needs.

Zelenskiy responded to Biden's comments by saying, "I am better than Putin."

Biden replied: "You are a hell of a lot better," as some in the room laughed, before Zelenskiy began his own address.

Biden has been under intense scrutiny in recent days and has faced doubts, including from members and donors of his own Democratic Party, about his re-election chances after a weak and faltering performance in a debate late last month against Republican former President Donald Trump.

Biden has thus far vowed to push on with his re-election bid and refused to step aside as his party's presidential candidate, while claiming he is best positioned to beat Trump in the November elections.

German Chancellor Olaf Scholz defended Biden on Thursday after the president's mistake. Scholz said, "Slips of tongue happen, and if you always monitor everyone, you will find enough of them."

British Prime Minister Keir Starmer, in a press conference of his own, repeatedly avoided answering the question as to whether Biden was fit enough to run for the US presidency. He instead praised Biden's role in organizing and leading what he said was a successful meeting of the NATO alliance.

Later on Thursday, Biden held a solo press conference at the NATO summit, his first time facing press alone since November, in which he was asked about his gaffe. He responded by saying the NATO summit was successful under his leadership.

"Have you seen a more successful conference?" Biden said to reporters when asked about potential concerns among foreign officials about his fitness for re-election.

At the summit in Washington, NATO members have extended support to Ukraine to combat the Russian invasion that began in February 2022. The United States has been Ukraine's most important partner in military assistance during the war.

Earlier in the day, ahead of a bilateral meeting, Biden told Zelenskiy, "We will stay with you”.