Iran wants US to abandon its hostility

Iran could hold direct talks with the United States if Washington demonstrates in practice that it is not hostile to the Islamic Republic, said President Masoud Pezeshkian on Monday.

Pezeshkian was responding to a question at a news conference in Tehran on whether Tehran would be open to direct talks with the US to revive a 2015 nuclear deal.

Former US president Donald Trump reneged on that deal in 2018, arguing it was too generous to Tehran, and restored harsh US sanctions on Iran, prompting Tehran to gradually violate the agreement's nuclear limits.

"We are not hostile towards the US, they should end their hostility towards us by showing their goodwill in practice," said Pezeshkian, adding, "We are brothers with the Americans as well."

After taking office in January 2021, US President Joe Biden tried to negotiate a revival of the nuclear pact under which Iran had restricted its nuclear program in return for relief from US, European Union and UN sanctions.

However, Tehran refused to directly negotiate with Washington and worked mainly through European or Arab intermediaries.

 

Kashmiris to vote in historic elections

On a bright September afternoon, a caravan of colorful cars, festooned with flags, arrives at a village in Indian-administered Kashmir for an election rally. Iltija Mufti, a politician from the Peoples Democratic Party (PDP), slowly rises from the sunroof of one of the cars, reports Saudi Gazette.

“Yeli ye Mufti (When Mufti will be in power)," she shouts at a crowd that has gathered to hear the third-generation leader of one of the most influential political dynasties of the region.

“Teli Tch’le Sakhti (Then the repression will end)," they respond in unison.

From a distance, army personnel in bulletproof jackets, armed with automatic rifles, stand watch, tracking every movement.

For the first time in a decade, elections are being held in 47 assembly seats of Kashmir, long marked by violence and unrest. The region, claimed by both India and Pakistan, has been the cause of three wars between the nuclear-armed neighbors. Since the 1990s, an armed insurgency against Indian rule has claimed thousands of lives, including civilians and security forces.

The three-phase polls will also extend to the 43 seats in the neighboring Hindu-majority Jammu region.

The election is the first since 2019, when Prime Minister Narendra Modi's government revoked Jammu and Kashmir's autonomy, stripped its statehood, and split it into two federally administered territories. Since then, the region has been governed by a federal administrator.

In the fray are 13 main parties vying for a majority in the 90-seat assembly.

The major players are the two main regional parties — the PDP led by Mehbooba Mufti and the National Conference (NC) which is headed by Omar Abdullah. Both Mufti and Abdullah are former chief ministers of the region.

The NC has formed an alliance with India's main opposition party Congress.

Modi's Bharatiya Janata Party (BJP) is also contesting but not many are betting on the party, which has a stronghold in Jammu but a weak political base in the valley.

In the last elections in 2014, the BJP had formed a government in alliance with PDP after sweeping Jammu. The alliance fell apart in 2018 after years of disagreements.

Also in the picture, this time, is Engineer Rashid — a politician who has spent five years in jail accused of a terror case and was released on bail this week. Rashid came to the limelight earlier this year when he pulled off a stunning victory in the general election over Abdullah. He fought the election from jail, with his sons leading an emotional campaign on the ground.

Elections in Kashmir have long been contentious, with residents and separatist leaders often boycotting them, viewing the process as Delhi's attempt to legitimize its control.

Since 1947, Kashmir has held 12 assembly elections, but voter turnout has often been low and marked by violence. Militants have attacked polling stations, and security forces have been accused of forcing voters to come out and vote. Since the 1990s, hundreds of political workers have been kidnapped or killed by militant groups.

But for the first time in decades, even separatist leaders are contesting in several seats.

The most keenly watched of these is the outlawed Jamaat-e-Islami (JEI) party, which has joined hands with Rashid's Awami Ittehad Party (AIP).

Residents will vote to elect a local assembly, led by a chief minister and council of ministers. Though the assembly will have limited powers under Delhi's rule, it has sparked hopes for a political change in the valley.

Almost all opposition parties have pledged to restore statehood and the region's special status. The BJP has ruled out restoring autonomy but has promised to reinstate statehood to Jammu and Kashmir "at an appropriate time after the elections".

Most residents appeared to be reconciled to the loss of their region's autonomy.

“I don’t think Article 370 will come back unless any miracle happens,” said Suheel Mir, a research scholar, adding that parties were making promises about restoring autonomy in a “politically charged” atmosphere to get votes.

Several young men and women said they were more concerned about issues like political instability, corruption and most of all, unemployment - also a major concern in Jammu.

“We want to cast our vote to resolve our day-to-day issues. It has nothing to do with the Kashmir dispute,” said a man who did not wish to be named.

But others said they didn't want to give the impression that they had accepted the events of 2019 and would participate in the election solely to vote against the BJP.

"We want to send a message to the government that the revocation is unacceptable to us no matter what," said 38-year-old Zameer Ahmad.

Five years ago when Modi's government abrogated Article 370, the 70-year-old constitutional provision that gave the region its autonomy, the government said it was necessary to restore normalcy in India’s only Muslim-majority region.

The move triggered a severe security clampdown, mass detentions, curfews and a months-long internet blackout, stripping residents of rights to jobs and land.

Since then, Modi and his ministers have extensively talked about a new era of peace and development in Kashmir, announcing projects worth hundreds of millions of dollars that they say are part of a plan to integrate the region's economy with the rest of India. (Until Jammu and Kashmir's special status was removed, outsiders could not buy land to do business there).

But locals say they have yet to see the benefits of such projects and continue to struggle with violence and high levels of unemployment.

Thousands of Indian army troops continue to be perpetually deployed there, with powers that have led to decades of allegations of human rights violations.

"There is an absence of democracy and freedoms in Kashmir and many political activists remain in jail," said political scientist Noor Ahmad Baba.

"The election allows people to give their verdict for or against these changes."

The change in mood is visible everywhere.

Across Jammu and Kashmir, streets are adorned with posters, party flags, and billboards and men at local bakeries freely discuss election outcomes over chai.

"There has been a complete overhaul of traditional political narratives," said Tooba Punjabi, a researcher.

"Earlier, public boycotts defined elections. But now, it's a means of putting the right party in place to undo the damage."

The shift in political attitudes was also evident earlier this year, when Kashmir registered a historic 58.46% voter turnout in the parliamentary election.

Many residents are now pinning their hopes on regional parties to raise their demands.

"These parties have acted as a shield between Delhi and Kashmir," said businessman Tahir Hussain," adding that "it didn't matter who will form the government as long as it's a local one".

Analysts say the BJP's performance could also receive a significant blow in Jammu this time, where internal discord and infighting has derailed its ambitions.

There's also growing anger among the residents who are unhappy with the party's policies.

Until now, the BJP's push for development has resonated with people in Jammu who hope it would bring in more economic opportunities for them.

But many say they are yet to see any signs of change. “In fact, now that Article 370 has been scrapped, people from other states are coming to Jammu. Our rights on jobs and land are being taken away from us," said Gulchain Singh Charak, a local politician.

Sunil Sethi, BJP's chief spokesperson in the region, rejected the allegations.

“We have done massive infrastructure developments, built roads and brought foreign investors here,” he said.

No war between China and Malaysia

The mere mention of the South China Sea these days conjures up an image of confrontation between China and rival claimants, military or otherwise. So many heads were turned following a leak of a diplomatic note from China to the Malaysian Embassy in Beijing calling on Kuala Lumpur to stop all drilling in the South China Sea. But we should not deduce that the Sino-Malaysian relationship is about to go south, argues Phar Kim Beng.

This is for several reasons, such as the two sides having developed the necessary channels of communication to handle friction, and that Malaysia has been the coordinator of the China-ASEAN relationship since last August.

This is illustrated by Malaysian Prime Minister Anwar Ibrahim taking to using the word "discussion" to replace "negotiation" with China. While this does not hint at any short or long term solutions, neither is it a sign of China and Malaysia engaging in a war of words, let alone their militaries coming to blows.

Missile fired at Israel

A surface-to-surface missile was fired at central Israel from Yemen on Sunday, hitting an unpopulated area and causing no injuries, reports Reuters.

Air raid sirens had sounded in Tel Aviv and across central Israel moments before the missile landed at around 0335 GMT, sending residents running for shelter.

"Following the sirens that sounded a short while ago in central Israel, a surface-to-surface missile was identified crossing into central Israel from the east and fell in an open area. No injuries were reported," the military said.

Loud booms were also heard in the region, which the military said came from missile interceptors that had been launched. It added that its protective guidelines to Israel's residents were unchanged.

Smoke could be seen billowing in an open field in central Israel, according to Reuters, though it was unclear if the fire was started by the missile or debris of an interceptor.

In July, Houthis fired a long-range drone at Tel Aviv, killing one man and wounding four others. The attack prompted Israel to carry out a major air strike on Houthi military targets near Yemen's Hodeidah port, killing at least three people and wounding 87.

The Israeli military also said that 40 projectiles were fired towards Israel from Lebanon on Sunday and were either intercepted or landed in open areas.

"No injuries were reported," the military said.

 

Israel stuck in Gaza and bleeding

The Israeli army’s former head of operations has criticized the continuing war in Gaza saying the regime is “stuck in Gaza and bleeding”. Major General Israel Ziv described the war as a “dire quagmire”.

Ziv, who previously led the Gaza Division, asserted that the war has become a source of political stability for Prime Minister Benjamin Netanyahu and his cabinet, Al Jazeera reported. 

He suggested that Netanyahu might be prolonging the war to maintain his political position and delay his corruption trial, which could lead to imprisonment.

Ziv added that after a year of what he called the longest and most exhausting war in Israel’s history, the regime finds itself trapped in a continuous security crisis with no end in sight.

He noted that the situation is not improving and lacks a clear path towards resolution.

He emphasized that the war, which Netanyahu claimed was on the verge of victory six months ago, now appears endless.

 

PSX benchmark index posts 0.55%WoW gains

During the week ended on September 13, 2024, the benchmark index of Pakistan Stock Exchange experienced volatility early in the week but gained momentum as investors anticipated a rate cut.

On Thursday, the Monetary Policy Committee (MPC) surprised with a 200bps reduction amid a higher than expected fall in inflation, lowering the policy rate to 17.5%. This move boosted investor sentiment.

The IMF spokesperson revealed that Pakistan has secured necessary financing assurances from development partners and will be discussed at the executive board meeting scheduled for September 25, 2024, further enhancing investor confidence. The rate cut invigorated the cyclical sector, resulting in the benchmark index closing at 79,333 points, a gain of 435 points, up 0.55%WoW.

However, a mini budget is on the cards to generate an additional PKR650 billion in tax collections, if FBR fails to meet its collection targets.

Workers remittance for August 2024 were reported at US$2.94 billion, up 40.5%YoY.

The average daily traded volume declined to 606.74 million share from 675.46 million shares a week ago, down 10.2%WoW.

On the currency front, PKR largely remained stable against the greenback throughout the week, closing the week at PKR278.14/US$.

Other major news flows during the week included: 1) FBR considering traders’ new proposal to collect advance tax, 2) Pakistan and Russia sign MoU for agricultural cooperation, 3) Petrol price likely to be slashed further by PKR12, 4) Privatization of PIA anticipated by end of October and 5) T-Bills outflows jump amid uncertainty.

Leather & Tanneries, Woollen, Tobacco, Pharmaceuticals and Property were amongst the top performing sectors, while the laggards included Leasing companies, Modarabas, Automobile parts & Accessories, Refinery & Real Estate Investment Trust.

Major net selling was recorded by Foreigners with a net sell of US$7.54 million. Individuals, mutual funds, and companies absorbed most of the selling with a net buy of US$16.38 million, respectively.

Top performing scrips of the week were: 1) SRVI, EFUG, PAKT, BNWN, and HCAR, while to laggards included MTL, PGLC, KOHC, IGIHL, and THALL.

IMF executive board approval, along with continuation of monetary easing, would keep equities in investor radar, currently trading at P/E of 3.6x and DY of 13.5%.

Aforementioned factors, along with an improving external account position and a better country credit rating, would keep foreigners’ interest alive.

AKD Securities recommends sectors that benefit from monetary easing and structural reforms. However, modest economic recovery may limit the upside for cyclicals.

A wakeup call for the US citizens

Let's acknowledge the reality, the United States operates under a façade of democracy. At best, it can be described as a "hybrid democracy," where elected representatives do not truly govern. Instead, military-industrial complexes, oil corporations, and Wall Street exert control.

Both major political candidates receive substantial financial backing from these powerful non-state entities. Once elected, presidents often find themselves subservient to these interests rather than serving the people.

People worldwide should remember that Democrats and Republicans have often united to erode fundamental freedoms, establishing a secretive regime of mass surveillance, unconstitutional detention, and torture.

They have dragged the nation into illegal wars based on lies, resulting in millions of deaths and the squandering of trillions of dollars.

It is essential not to forget the millions who stood against the exploitation of national grief to further the neoconservative agenda of global military domination—citizens whose voices were ignored and demonized by the political elite.

We must also remember how Muslims and their neighbors have been unjustly targeted, surveilled, smeared, and falsely accused in the name of "protecting the United States."

Patriotism has been weaponized to undermine the First Amendment, stifling dissent, journalism, whistleblowing, and activism. To this day, there are ongoing efforts to criminalize protests against injustice, war, and genocide.

Never forget how both Democrats and Republicans have set the country on a path toward fascism, leading to an administration openly supporting the genocide of the Palestinian people.

True patriotism requires the courage to stand up for justice, not blindly following orders. By resisting both war-driven political parties, the American people can halt the descent into fascism and fight for a peaceful, just, and livable future for the generations to come.