Davos: Where Rich Perfect Art of Making Poor Poorer

Every January, Davos becomes the moral capital of the global elite. Wrapped in snow, security, and self-congratulation, presidents, billionaires, CEOs, and financiers gather to discuss the fate of a world they rarely experience firsthand. The World Economic Forum presents this annual ritual as a platform for global problem-solving. In truth, Davos has evolved into a carefully managed performance—where concern is expressed, responsibility is deferred, and power remains untouched.

The language of Davos is polished and predictable. “Inclusive growth,” “stakeholder capitalism,” “climate action,” and “global resilience” dominate the agenda. Yet behind this vocabulary lies a stubborn reality - inequality is not shrinking, poverty is not disappearing, and wealth is concentrating at a historic pace. If Davos were effective, the results would speak for themselves, which do not.

What Davos offers is not solutions but comfort—comfort to those who already control capital, technology, and policy access. It is a space where elites reassure one another that the system is flawed but fundamentally sound, that disruption must be managed rather than allowed, and that reform should never threaten ownership or privilege. The poor are omnipresent in speeches and PowerPoint slides, but conspicuously absent from decision-making tables.

The real conversations happen away from the cameras. While developing countries are advised to embrace austerity, fiscal discipline, and structural reforms, multinational corporations negotiate tax privileges, regulatory flexibility, and public subsidies. Workers are told to reskill endlessly, while capital moves freely across borders, protected by legal regimes it helped design. Climate change is acknowledged, yet fossil fuel interests remain deeply embedded in the very forum that claims to champion sustainability.

The return of Donald Trump to global relevance this year did not disrupt Davos—it exposed it. Trump’s blunt nationalism and transactional worldview are often portrayed as an aberration, these are not. He merely articulates openly what Davos practices quietly - power first, profit always, and principles only when convenient. Trump is not the enemy of the Davos mindset; he is its unfiltered expression.

For the Global South, Davos has long been a lecture hall. Countries facing debt, inflation, and political instability are prescribed reforms that protect creditors and investors, rarely citizens. Poverty is treated as a technical problem rather than a political outcome. Inequality is acknowledged, but redistribution remains taboo.

Davos survives because it offers the illusion of responsibility without the cost of change. It turns global suffering into a networking opportunity and moral concern into a branding exercise. Dialogue replaces action; panels replace policy.

The uncomfortable conclusion is unavoidable: In Davos, the rich do not seriously debate how to uplift the poor. They refine strategies to manage inequality in ways that preserve their dominance—making the poor poorer not by conspiracy, but by design.

Donald Trump Was Obvious — America’s Failure Was Not

For many outside the United States, Donald Trump was never a mystery. He was not a political riddle, nor an accident of history. He was obvious. What remains difficult to comprehend is how Americans—armed with vast media, institutions, and self-proclaimed democratic wisdom—failed so spectacularly to read a man who telegraphed his intentions from day one.

Trump did not corrupt American politics; he exposed it. His vulgar language, narcissism, and open contempt for norms were treated as shocking deviations, when in reality they stripped away the hypocrisy that had long defined the American political class. Previous presidents were better spoken, better groomed, and far more dangerous. Trump merely said aloud what others executed quietly.

America loves to boast of its wealth, power, and moral leadership. Yet it ranks poorly on almost every measure of social well-being among developed nations. Its middle class is shrinking, its prisons are full, its cities decay behind corporate skyscrapers, and its wars have left entire regions in ruins. Trump did not create this decay; he became its loudest symptom.

From South Asia and the Middle East, Trump’s worldview was instantly recognizable. We have seen strongmen before—men who confuse volume with authority and cruelty with strength. His Islamophobic travel bans, diplomatic bullying, and transactional foreign policy were predictable, not surprising. What was astonishing was America’s theatrical outrage, as if this behavior had no roots in its own imperial history.

The American establishment preferred to obsess over Trump’s manners rather than confront its own crimes. It was easier to mock his vocabulary than to admit that earlier administrations destroyed Libya, destabilized the Middle East, enriched corporations, and abandoned their own citizens—all while maintaining respectable language.

I could read Donald Trump because I was never seduced by the American myth. Many Americans were. Trump shattered that illusion, and instead of facing the mirror, they blamed the reflection.

That Donald Trump became president is troubling. That America still refuses to accept what he revealed about itself is far worse.

Trump's unenforceable red line with Iran

US President Donald Trump’s handling of Iran once again exposes a familiar pattern: aggressive rhetoric followed by strategic hesitation. By publicly assuring Iranian protesters that “help is coming,” Trump drew a red line that was emotionally charged but strategically hollow. As events unfold, it is becoming evident that this red line is unenforceable—not because of a lack of military power, but because of the absence of political clarity and regional consensus.

Having openly aligned himself with anti-government demonstrators, Trump boxed his administration into a dilemma. Either act militarily and risk a wider regional conflagration, or step back and invite accusations of weakness. Analysts rightly argue that this corner was self-created. Grand declarations, made without an executable plan, rarely translate into sustainable policy—especially in a region as volatile as the Middle East.

While the White House insists that “all options remain on the table,” reality suggests otherwise. The dispatch of the USS Abraham Lincoln carrier strike group is more symbolic than operational in the immediate term. By the Pentagon’s own assessments, the United States is not positioned for a sustained campaign against Iran anytime soon. Military capability, though abundant, does not automatically equate to political will or strategic wisdom.

More telling is the diplomatic activity behind the scenes. Key regional allies—Saudi Arabia, Qatar, and Oman—are reportedly urging restraint, fully aware that a strike on Iran could ignite a multinational conflict with unpredictable consequences. Even Israel, often portrayed as hawkish, appears cautious about escalation without a clear endgame. Trump’s assertion that he “convinced himself” to pause action only reinforces the perception of impulsive decision-making rather than coordinated strategy.

Crucially, Middle East experts remain skeptical that limited military strikes would achieve Washington’s stated objective of regime change. Iran’s clerical establishment has historically thrived under external pressure, using sanctions and threats to consolidate internal control. Economic hardship has not fractured the regime; it has hardened it.

In the final analysis, Trump’s Iran policy reflects a dangerous imbalance—maximum rhetoric paired with minimum foresight. Red lines that cannot be enforced weaken credibility, embolden adversaries, and unsettle allies. In geopolitics, restraint backed by strategy is strength; noise without direction is not.

PSX benchmark index up 0.4%WoW despite volatility

Pakistan Stock Exchange (PSX) experienced volatility throughout the week, driven by geopolitical tensions. However, a positive momentum prevailed as geopolitical dust settled along with news of defence export deals with multiple regional partners and encouraging macro developments. The benchmark Index witnessed a weekly gain of 689 points or 0.4%WoW to close at 185,099 points on Friday January 16, 2026.

Market participation declined by 24.5%WoW with average daily trading slipping to 1.2 billion shares, from 1.6 billion shares in the prior week.

On the macroeconomic front, LSM index increased by 10.4%YoY in November 2025 while posting growth of 6%YoY during 5MFY26.

In the latest PIB auction, yields declined on all the tenors.

Fertilizer sector marked the highest ever annual urea sales in CY25.

Auto sales reported at 17,000 units in December 2025, down 6%YoY.

Foreign exchange reserves held by State Bank of Pakistan (SBP) increased by US$16 million to US$16.1 billion as of January 09, 2025.

PKR appreciated against the greenback during the week to 279.95 PKR/ US$.

Other major news flow during the week included: 1) Turkey confirms talks on defence pact with Pakistan and Saudi Arabia, 2) Petrol, diesel prices to remain unchanged for next fortnight due to the increase in Petroleum Levy, 3) Pakistan announces plan to develop Port Qasim into climate-resilient industrial complex 4) Pakistan, Saudi Arabia eye joint mining investments at Future Minerals Forum, and 5) Government announces plan 6,000 acre Export Processing Zone on Pakistan Steel Mills land.

Transport, Paper & Board, Oil & Gas Exploration Companies, Property, Automobile Parts & Accessories were amongst the top performers, while Synthetic & Rayon, Jute, Miscellaneous, Textile Weaving, and Textile Spinning were amongst the laggards.

During the week, major buying was recorded by Individuals and Mutual Funds with a net buy of US$16.1 million and US$12.8 million, respectively. Banks and Insurance Companies were major sellers with net sell of US$23.5 million and US$15.8 million, respectively.

Top performing scrips of the week were: ATLH, AKBL, LOTHCEM, OGDC, and JVDC, while laggards included IBFL, SAZEW, AICL, PABC, and YOUW.

AKD Securities foresees the positive momentum at PSX to continue due to further monetary easing driven by improving external account position and continuous focus on reforms amid political stability.

The brokerage house forecast the benchmark Index to reach 263,800 by end December 2026.

Investors’ sentiments are expected to improve on the likelihood of foreign portfolio and direct investment flows, driven by improved relations with the United States and Saudi Arabia.

Top picks of the brokerage house include: OGDC, PPL, UBL, MEBL, HBL, FFC, ENGROH, PSO, LUCK, FCCL, INDU, ILP and SYS.

 

 

 

 

Pentagon moving carrier strike group toward Middle East

According to The Hill, the Pentagon on Thursday said it is moving a carrier strike group from the South China Sea toward the Middle East as tensions between the US and Iran continue to rise. The USS Abraham Lincoln aircraft carrier and its strike group were spotted moving west away from the Indo-Pacific region. The movement of the carrier strike group — which includes fighter jets, guided missile destroyers and at least one attack submarine — is expected to take about a week. 

This movement comes as tensions between Washington and Tehran have spiked amid unrest in Iran over its economy and questions about whether President Trump will strike the country to aid mass protests challenging the autocratic regime.

Trump earlier this week encouraged Iranian protesters to continue pressuring the regime and vowed that “help is on the way,” signaling potential US intervention. But Tehran has pushed back with its own threats.

The president so far has held off on any strikes in Iran, continuing to monitor the situation in the country. He was also advised that a large-scale strike against Iran was unlikely to topple the regime and could instead set off a wider conflict.

Advisers informed Trump that the US military would need more troops and equipment in the Middle East to launch any large-scale strike while still protecting American forces in the region from potential retaliation, according to the Journal.

A senior US official also told The New York Times that Trump is waiting to see Iran’s next move as he considers striking such targets as ballistic missile sites and Iran’s domestic security apparatus, and that any attack “is at least several days away.”

Protests have escalated in Iran since late December in response to declining economic conditions. It’s not clear exactly how many people have died in the protests because of the Iranian government’s internet blackout across the country, but the Human Rights Activists News Agency said more than 2,600 people have been killed and more than 184,000 have been detained. 

Iran has largely been restricting information in and out of the country, and Wednesday it issued a “Notice to Air Missions,” or NOTAM, that flights in and out of Tehran have been restricted.

The US administration on Thursday also announced new sanctions against “the architects of the Iranian regime’s brutal crackdown on peaceful demonstrators” and the “shadow banking networks” alleged to be helping wealthy Iranians divert funds generated by the country’s natural resources.

The USS Abraham Lincoln has been deployed since late November, after it departed San Diego with no Pentagon announcement for where it would be sent. 

 

Why Trump Refuses to Accept Failure in Iran

Once again, Iran has moved to the center of global headlines, accompanied by renewed threats from US President Donald Trump and fresh speculation about regime change. The language may sound forceful, but the strategic reality is far less dramatic. Nearly five decades after the 1979 revolution, the world’s most powerful country has failed to dismantle Iran’s clerical system. This is not a matter of opinion; it is a matter of record. What remains puzzling is Washington’s persistent refusal to accept this failure.

Since the establishment of the Islamic Republic, the United States has employed every conceivable pressure tactic—crippling economic sanctions, diplomatic isolation, covert operations, cyber warfare and sustained political hostility through regional allies. If the objective was to topple the “Mullah regime,” the outcome is self-evident. The system remains intact, resilient and, in some respects, more consolidated than before.

Ironically, sanctions—long projected as a non-military means of forcing political change—have produced results opposite to those promised. Instead of empowering reformist forces, they have weakened Iran’s middle class, historically the most potent driver of political evolution. At the same time, state-linked institutions, particularly those associated with security and defence, have expanded their influence over the economy. External pressure has also enabled the ruling establishment to frame dissent as foreign-sponsored, thereby justifying tighter internal control.

Washington’s reluctance to admit strategic failure is understandable, though not defensible. Acknowledging defeat would challenge the credibility of sanctions as a global policy tool and expose the limits of American coercive power. Yet denial comes at a heavy cost. Persisting with a failed approach deepens instability, prolongs economic suffering and increases the risk of miscalculation—without delivering political transformation.

Even more alarming is the absence of any credible post-clerical roadmap. History offers sobering lessons. Iraq, Libya and Syria demonstrate what happens when regimes are dismantled without a viable alternative governance structure. Iran’s opposition remains fragmented—divided ideologically, geographically and socially, with much of its leadership disconnected from realities on the ground. There is no unified transitional plan, no agreed security framework and no consensus on state reconstruction.

In this context, calls to arm “rebels” or encourage violent uprising are deeply troubling. The militarization of dissent has repeatedly produced chaos rather than peace. From Syria to Libya, weapons fractured societies, empowered militias and destroyed state institutions. Iran, with its dense urban population and complex social fabric, would be particularly vulnerable. Street violence may dismantle authority, but it cannot build a stable political order.

If peace and stability are genuinely desired, policy must shift from illusion to realism. Political change cannot be imposed through threats or sanctions alone. Gradual economic engagement, calibrated sanctions relief and regional dialogue offer more sustainable pathways. Strengthening economic normalcy and civil society may not yield immediate results, but they create conditions under which internal evolution becomes possible.

The lesson is clear. Pressure has failed, and force will fail again. Peace in Iran—and across the region—will not emerge from regime-change fantasies, but from strategies grounded in historical experience, restraint and political realism.

Gulf states warn Trump against sending help to Iranian protesters

Arab Gulf states have been warning the Trump administration not to strike Iran after Trump and White House officials stated on Tuesday that military action was more likely than not, according to a Wall Street Journal (WSJ) report. According to the WSJ, Iran's rival Gulf states have largely avoided addressing the protests that have spread across Iran since late December, leaving thousands dead.

Saudi Arabia, Oman, and Qatar informed the White House that even attempting to overthrow the current Iranian regime would destabilize the global oil market and ultimately hurt the American economy, according to WSJ.

A White House official told the WSJ that Trump was unlikely to heed these warnings outright, saying, “the President listens to a host of opinions on any given issue, but ultimately makes the decision he feels is best."

Earlier on Tuesday, Trump said that "help is on its way" to Iran and asked Iranians to keep protesting against the Islamic Republic regime.

"Iranian Patriots, keep protesting - take over your institutions! Save the names of the killers and abusers. They will pay a big price," Trump shared on Truth Social. "I have cancelled all meetings with Iranian Officials until the senseless killing of protesters stops. Help is on its way. MIGA!" he assured.

Trump's comments come as he is expected to convene senior administration officials on Tuesday to discuss possible courses of action regarding Iran. The meeting will be "significant," several US officials told The Jerusalem Post.

Around 3,000 people have been killed in Iran amid the ongoing protests, an Iranian official told The New York Times on Tuesday.

An additional source, speaking to Reuters, blamed “terrorists” for the deaths of civilians and security personnel.

In addition, UN human rights chief Volker Türk said on Tuesday that he was “horrified” by mounting violence by Iran’s security forces against peaceful protesters.

Meanwhile, sources have told The Jerusalem Post that in the western Iranian provinces of West Azerbaijan, Kurdistan, Kermanshah, and Ilam, entrances to many cities have been blocked, and numerous checkpoints have been set up.

According to the sources, Islamic Revolutionary Guard Corps security forces are stopping vehicles, searching them, and, in some cases, forcing citizens to unlock their mobile phones.

With the complete shutdown of the internet and telephone services, the only means of accessing news and information for many Iranians is currently satellite television, which is subject to heavy jamming in most cities. There have also been reports of security officials house-checking in cities such as Tehran and confiscating civilians’ satellite dishes.

The protests, which began on December 28, 2025 continue despite the communications restrictions and rising casualties.