Pakistan: Audacious attack on Karachi Police Office raises many questions

The terrorist attack at Karachi Police Office (KPO) located in the heart of the provincial capital of Sindh raises serious questions about the state of security arrangements in the country.

It is necessary to take into account that the sensitive installation is located in the vicinity of around a dozen more sensitive installations.

Analysts term the assault on headquarters of the law enforcement agency a serious security lapse.

There is an urgent need to revisit the situation as to determine how secure security offices and other sensitive installations are.

The recent Peshawar attack was a wake-up call for the law enforcing agencies across the country. Against this backdrop, it is a matter of grave concern as to how militants had succeeded in reaching Karachi.

Security experts term the attack on KPO as a symbolic one and a kind of message from militants to the authorities about their preparations and next targets.

KPO just can’t be termed a soft target. It is message from the terrorists: ‘we are that close’. It’s a serious security lapse. It’s not a routine terrorist activity. It cannot be ignored.

The copy book reply is, “The situation has to be reviewed, additional forces have to be deployed, jawans need modern equipment and training”.

It is evident that in the past wave of terrorism, the militant outfits often went for soft targets attacking public places, markets, Masjids, Shrines and Imambargahs, but the fresh one had started with a visible shift in their line of action.

The recent attacks show the preparedness of the militants. A question arises, if they can attack sensitive facilities, how vulnerable are public places?

As I am writing these lines, the event has flashed back painful memories of the brutal past murderous, and brazen assaults in Karachi. These include the 2011 Mehran Base ambush, as well as 2014 attack at Karachi airport.

There has been no let-up in terrorist attacks. On Thursday, the terrorists attacked CTD personnel in Punjab’s Kalabagh area, in Mianwali district. A few weeks earlier, members of an outfit had raided a police station in the same district, located close to KP. But Friday’s attack in Karachi is a far more complex operation.

Dawn has rightly hinted in its editorial, “This is another wakeup call for the squabbling politicians who rule in our name, as well as the security establishment that keeps reminding us that ‘all is well’. Clearly, both stakeholders must understand the true situation.”

According to media reports, the federal interior minister told a TV channel he was under the impression that militants did not have access beyond KP and Balochistan.

His impression was obviously flawed. The terrorists have the ability, as well as the links and operational wherewithal, to strike at will, while the state’s response has been largely unimpressive.

In Karachi assault, it is likely that sleeper cells have been used. There is no shortage of financers as well as sympathizers of the militant outfits in the port city.

The state, particularly the law enforcing agencies need to focus on their prime responsibilities to avoid more of such attacks taking place.

 

 

Pakistan Stock Exchange witnesses 45.8%WoW decline in average daily trading volume

The benchmark index of Pakistan Stock Exchange (PSX) closed the week ended on February 17, 2023 at 41,119 points, down by 623 points or 1.5%WoW.

The lackluster performance during the week was despite the Supplementary Finance Bill presented to introduce PKR170 billion for mobilizing additional taxes—in line with the IMF’s conditions under the 9th review.

Foreign exchange reserves of the country inched higher by US$276 million to US$3.2 billion during the week, still the import cover remained below one month.

PKR gained 2.5% of its value against the greenback.

Participation in the market declined, with daily trading volume averaging at 153.91 million shares as compared to 284.07 million shares in the earlier week depicting a decline of 45.8%WoW.

Other major news flows during the week included:  1) Tax target raised to PKR7.64 trillion, 2) Debt, liabilities rose to historical-level of PKR63.9 trillion, 3) gas tariff  increased by 16.6% to 124% for different types of consumers, 4) July-December 2022 LSMI output declined by 3.68%, 5) monthly remittances slipped below US$2 billion, 6) Fitch downgraded Pakistan rating on worsening liquidity, policy risks, and 7) car sales plunged 65% in January 2023.

Top performing sectors were: Leasing Companies, Leather and tanneries, and Sugar and Allied industries, while the least favorite sectors were: Textile Weaving, Tobacco, Miscellaneous, and Pharmaceuticals.

Stock-wise, top performers were: PGLC, THALL, FABL, JVDC, and GHGL, while laggards were: PAKT, MUGHAL, KTML, and PSEL.

Flow wise, companies were the major buyers with net buy of US$4.12 million, followed by Banks/DFI US$2.3 million, while mutual funds were major sellers, with a net sell of US$6.11 million.

Any news regarding a successful Staff Level Agreement with the IMF would lead to euphoria in the market, with the GoP having already introduced the PKR170 billion additional taxation measures demanded by the international lender.

The market may remain jittery in the near future due to higher inflation readings, weakness in the PKR and the effects of the hike in utility tariffs. This has led to expectations of further hikes in interest rates in the country, which has the potential to continue to keep the market range-bound.

Analysts continue to advocate scrips that have dollar-denominated revenue streams to hedge against the currency risk, which include the Technology and E&P sectors.

US trying to woo India away from Russia

The United States brought its most advanced fighter jet, the F-35, to India for the first time this week alongside F-16s, Super Hornets and B-1B bombers as Washington looks to woo New Delhi away from its traditional military supplier, Russia, reports Reuters.

India, desperate to modernize its largely Soviet-era fighter jet fleet to boost its air power, is concerned about Russian supply delays due to the Ukraine war and faces pressure from the West to distance itself from Moscow.

The American delegation to the week-long Aero India show in Bengaluru, which ended on Friday, is the biggest in the 27-year history of the show and underlines the growing strategic relationship between the United States and India.

In contrast, Russia, India's largest weapons supplier since the Soviet Union days, had a nominal presence. Its state-owned weapons exporter Rosoboronexport had a joint stall with United Aircraft and Almaz-Antey, displaying miniature models of aircraft, trucks, radars and tanks.

At previous editions of the show, Rosoboronexport had a more central position for its stall, although Russia has not brought a fighter jet to Bengaluru for a decade after India began considering more European and US fighter jets.

Boeing F/A-18 Super Hornets have already entered the race to supply fighter jets for the Indian Navy's second aircraft carrier and Lockheed Martin's F-21, an upgraded F-16 designed for India unveiled at Aero India in 2019, are also being offered to the air force.

A US$20 billion air force proposal to buy 114 multi-role fighter aircraft has been pending for five years, brought into sharp focus by tensions with China and Pakistan.

The F-35 is not being considered by India as of now, according to an Indian Air Force (IAF) source, but the display of two F-35s at Aero India for the first time was a sign of New Delhi's growing strategic importance to Washington.

It was not a sales pitch but rather a signal to the importance of the bilateral defence relationship in the Indo-Pacific region, said Angad Singh, an independent defence analyst.

"Even if weapons sales aren't the cornerstone of the relationship, there is a cooperation and collaboration at the military level between India and the US," he added.

The United States is selective about which countries it allows to buy the F-35. When asked if it would be offered to India, Rear Admiral Michael L. Baker, defence attache at the US embassy in India, said New Delhi was in the very early stages of considering whether it wanted the plane.

Ahead of the show, Russian state news agencies reported that Moscow had supplied New Delhi with around US$13 billion of arms in the past five years and had placed orders for US$10 billion.

The United States has approved arms sales worth more than US$6 billion to India in the last six years, including transport aircraft, Apache, Chinook and MH-60 helicopters, missiles, air defence systems, naval guns and P-8I Poseidon surveillance aircraft.

India also wants to manufacture more defence equipment at home in collaboration with global giants, first to meet its own needs and eventually to export sophisticated weapons platforms.

 

US to become world's largest LNG exporter

At least three proposed US liquefied natural gas (LNG) export plants have likely found enough customers to receive financial approvals this year, according to Reuters - developments that would make the country the world's largest LNG exporter for years to come.

After a dearth of plant approvals last decade, developers have secured dozens of long-term contracts to finance new multibillion dollar LNG plants. The pace of approvals has accelerated as Europe has shifted away from Russian gas since Moscow's invasion of Ukraine.

About a dozen developers hope to make final investment decisions this year. Many of these projects have been delayed several times, but analysts said at least three have secured enough customers to move ahead soon.

The United States was long an importer of LNG, but natural gas discoveries and production from the shale revolution flipped the country into an LNG exporter in 2016.

United States LNG exports hit 10.6 billion cubic feet per day (bcfd) in 2022, making the country the second biggest LNG exporter after Australia.

Projects best positioned to move ahead include Sempra Energy's Port Arthur plant in Texas, Energy Transfer LP's Lake Charles in Louisiana and NextDecade Corp's Rio Grande in Texas.

They have all or most of the long-term LNG sales agreements needed to convince bank's that the projects are ready for debt financing, say analysts.

Sempra said in January it has sold all the capacity needed to advance the first phase of Port Arthur. Buyers include Poland's Polski Koncern Naftowy Orlen SA, US oil producer ConocoPhillips and Germany's RWE AG.

NextDecade has signed deals for about 64% of the first phase of Rio Grande and may soon push it to about 87%, according to analysts at Morgan Stanley. Rio Grande's customers include Exxon Mobil Corp, Shell, Portugal's Galp Energia and Japan's Itochu Corp.

NextDecade could secure a financial go-ahead in the second half of this year, Morgan Stanley said. NextDecade has said that it was targeting a first-quarter FID for the project's first phase.

Energy Transfer signaled on Wednesday it might miss its first-quarter target for a FID due to extreme competition for LNG buyers. It has deals to sell LNG to several firms, including Shell, China's ENN Group and Swiss commodity trader Gunvor.

It takes roughly four years to build these giant plants, so their LNG is not likely to reach markets before 2027. But their production volumes will allow the United States to remain ahead of output from Australia and Qatar.

The United States already has the capacity to produce the most LNG in the world and would have been the biggest exporter if not for the shutdown of Freeport LNG's plant in Texas after a fire in June 2022.

"The United States still sits atop the ranking of global LNG supply additions through 2030 ... followed by Qatar, Mozambique, and Canada," analysts at energy consultancy Tudor Pickering Holt & Co said in a note.

The United States should export around 11.8 bcfd this year and 12.6 bcfd next, estimates the US Energy Information Administration.

The seven US export plants already in service, including Freeport LNG, can turn about 13.8 billion cubic feet of gas into LNG each day.

The next United States LNG plants expected to open are the QatarEnergy-Exxon joint venture at Golden Pass in Texas in late 2024, the first phase of Venture Global LNG's Plaquemines in Louisiana in 2024-2026, and Cheniere Energy Inc's expansion at its Corpus Christi plant in Texas in 2025.

 

Bangladesh succumbs to US pressure and bars Russian ships entering its maritime territory

The Bangladesh government has imposed restrictions barring the entry of 69 Russian ships into its maritime waters in line with US and EU sanctions.

This means that Russian vessels will not be able to bring in shipments of imports, stop for fueling, anchor in the area, or even use sea routes.

The government has sent notices to the relevant ministries, agencies, ports, shipping services, and international organizations regarding the new restrictions.

As a result of these new sanctions, Bangladesh will find it difficult to conduct any trade with Russia.

Bangladesh’s most expensive mega project, the Rooppur nuclear power plant, is being built with the support of Russia. A significant portion of the equipment and materials for that project is imported from Russia. Recently, a shipment from Russia carrying materials for the project was barred from entering Bangladesh’s maritime boundary amid diplomatic pressure from the US.

The ship attempted to dock at India’s Haldia Port to deliver its shipment but was turned away there too. It eventually returned to Russia with its cargo.

“At the request of the Ministry of Foreign Affairs, the 69 vessels from Russia which were embargoed by the United States have been banned from entering ports in Bangladesh,” said Captain Sabbir Mahmood, registrar of Bangladesh ships at the Mercantile Marine Office, citing the content of the notice.

The ban covers a wide range of ships, including oil tankers and cargo vessels, operated by seven companies. The restrictions mean that no import or shipping agents can import goods from any country using these Russian ships.

“The ban on ships bearing the Russian flag was jointly imposed by the United States and the European Union,” said Azam J Chowdhury, chairman of the Bangladesh Ocean Going Shipowners Association, or BOGSA. “If any product comes to Bangladesh on these ships, then Bangladesh will also be added to the ban. The bulk of our international trade is with the EU and the US.”

The sanctions were imposed due to Russia’s ongoing invasion of Ukraine.

“As such, we believe that in the overall assessment of the interests of Bangladeshi businesses, the Russia situation will not significantly impact the transportation of goods for global trade.”

Bangladesh has 197 ships that travel in the deep sea, accounting for less than 10 percent of the country’s total trade in international goods.

If Bangladesh businesses stay abreast of the situation, the ban should not have a significant impact on shipping or costs, the BOGSA chief said.

However, some import agents who have had long working relationships with these Russian vessels may be impacted, Azam noted.

Russia is not on the list of the top 20 countries that Bangladesh trades with, according to data from Bangladesh Bank. Nearly 87 percent of all imports come from those countries.

Bangladesh mainly imports wheat and petroleum products from Russia and exports garments to the country.

 

Pakistan: Imposition of additional taxes may lure IMF, but plunge the country deeper in debt trap

After reading the details of mini budget, it may be said that the incumbent government may have succeeded in convincing the International Monetary Fund (IMF) to release a paltry amount. However, the measures would further weaken the already feeble economy. On top of all the fear of default will continue to haunt.

Finance Minister, Ishaq Dar presented the proposal to both the houses to impose additional taxation measures of PKR170 billion. These measures address only one deficit, budget deficit. No measures have been introduced to bridge the current account deficit or improve debt payment capacity of the country.

The release of around US$ one billion by the IMF may pave the way for seeking loans from other lenders, but in no way help in generating additional dollars to boost the foreign exchange reserves of Pakistan.

While the imports are likely to become more expensive, especially after the depreciation of Pak rupee, no measures have been introduced to enhance competitiveness of the Pakistani exporters.

Hike in interest rate, electricity and gas tariffs, sales tax and Federal Excise Duty will collectively increase prices of goods for the consumers and fuel inflation.

In aggregate cost of doing business will be increased and local manufacturers will witness erosion in competitiveness in the global markets.

 

Israel: Zionist regime faces highest resistance in West Bank

In Israel, the extremist ruling regime, led by Benjamin Netanyahu, faces its biggest resistance in the occupied West Bank in two decades. It simply can't put an end to the resistance of newly formed factions by Palestinian youth despite the almost daily military raids on cities, towns, villages, and refugee camps.

The record number of Palestinians Israel murdered last year looks like it will rise sharply this year with the death toll approaching almost 50 already in 2023. 

On Monday, the newly formed Palestinian Lions' Den resistance group said that its forces set up an elaborate ambush for Israeli troops who had entered Nablus to detain militants.

The group said that its forces used explosive devices as well as gunfire against the Israeli soldiers, who were eliminated. 

In a brief media statement, it then forecast that the cowardly Israeli occupation army would deny that soldiers had been killed. Instead, it will say that the deaths occurred in traffic accidents, on the mountains or as a result of illness.

"There were no Israeli casualties," reported Reuters, "but Israeli troops killed a 21-year-old Palestinian during an arrest raid in the occupied West Bank that triggered clashes with gunmen on Monday."

This is while reports have emerged that the Jenin Battalion have used, for the first time, drones in pursuing the occupation soldiers, in what would be a major development.

The use of drones is said to have taken place as violent clashes broke out once again between the resistance factions and the Israeli military, after special Israeli forces stormed the Jenin refugee camp, where they were confronted by the Palestinian resistance.

In a statement, the Jenin Battalion confirmed that the occupation forces targeted it with heavy ammunition and explosive devices, resulting in direct hits.

The Palestinian Ministry of Health announced that two civilians have sustained serious injuries as an outcome of the latest aggression.

The major Israeli raids and long-term military operations in the West Bank have failed to stop the Palestinian resistance. 

At the end of January 2023, the al-Quds Brigades published footage of the Jenin Brigade detonating an explosive device as a truck drove by carrying Special Forces of the occupation army.

Other scenes were shown of the battalion's fighters shooting down a drone that was being used for surveillance by the occupation army.

As the regime kills more civilians, retaliatory operations are also leaving the Israeli Special Forces as well as its settlers dying in rising numbers.

The daily Israeli raids and sieges of Palestinian refugee camps, towns and villages are not bringing the desired results that the regime wants.

It has, therefore, resorted to the other more common option that it has used over the decades of ethnic cleansing with the construction of settlements. 

The new Israeli cabinet has granted authorization to legitimize nine settler outposts in the occupied West Bank while also announcing the mass-construction of new settler units within established settlements as revenge for the Palestinian resistance's lethal operations against the Zionist troops and settlers. 

Over the years, Zionist settlers have constructed and expanded scores of settler outposts themselves. Many are later authorized as legal by the Israeli cabinet. The nine that have been authorized are the first by Netanyahu’s new far-right cabinet.

Illegal settlements to be legalized:

1. Avigil

2. Bet Hogla

3. Givat Harel / Haroeh

4. Givat Arnon

5. Mitzpe Yehuda

6. Malachei Hashalom

7. Ashael

8. Sde Boaz

9. Shaharit

 

A statement from Netanyahu's office also said a planning committee would convene in the coming days to approve new settler units. Far-right Finance Minister Bezalel Smotrich said these would number 10,000.

The international community considers the settlements illegal for stealing the native land of Palestinians. According to the Peace Now watchdog group, since capturing the West Bank in 1967, Israel has established at least 132 settlements.

While statements by extremist ministers in Netanyahu's cabinet deemed the settlement push as a response to recent Palestinian retaliatory operation, they had actually agreed on such plans before their coalition was sworn in on December 29, 2022.

While welcoming the Netanyahu cabinet’s announcement, West Bank settler leader Yossi Dagan urged a total removal of curbs on construction, to enable construction in full swing.

The number of settlers squatting in the occupied West Bank has hit half a million for the first time.  

Israel demolishes Palestinian homes to make way for the expansion of its settlements or the construction of new ones, which effectively means the ethnic cleansing of Palestinians from their indigenous land.

The latest announcement by Netanyahu’s office has been met with demands by the United Nations for Israel for be held accountable for “domicide”.

In late 2022, the Special Rapporteur on the right to housing, Balakrishnan Rajagopal, called for domicide - defined as the massive, arbitrary destruction of civilian housing in violent conflict - to be recognized as a crime under international law.

The UN Office of the United Nations High Commissioner for Human Rights says the international community must take action to stop systematic and deliberate housing demolition and sealing, arbitrary displacement, and forced evictions of Palestinian people in the occupied West Bank, UN experts said.

In January 2023 alone, Israel reportedly demolished 132 Palestinian structures across 38 communities in the West Bank, including 34 residential and 15 donor-funded structures. This figure represents a 135% increase, compared to the same period in 2022, and includes five punitive demolitions.

The United Nations Human Rights Office says, “The systematic demolition of Palestinian homes, erection of illegal Israeli settlements and systematic denial of building permits for Palestinians in the occupied West Bank amounts to domicide.”

"Direct attacks on the Palestinian people's homes, schools, livelihoods and water sources are nothing but Israel's attempts to curtail the Palestinians' right to self-determination and to threaten their very existence," the United Nations experts said in a statement.

They reiterated concern over the situation in Masafer Yatta, where over 1,100 Palestinian residents are at imminent risk of forced eviction, arbitrary displacement and demolitions of their homes, livelihood, water and sanitation structures.

In November 2022, Israeli authorities demolished a donor-funded school in Isfey al Fauqa. Four other schools in the area are under demolition orders.

“Direct attacks on the Palestinians’ homes, schools, livelihoods and water sources are nothing but Israel’s attempts to curtail the Palestinians’ right to self-determination and to threaten their very existence,” the experts said.

“Israel’s tactics of forcibly displacing and evicting the Palestinian population appear to have no limits. In occupied East Jerusalem, tens of Palestinian families also face imminent risks of forced evictions and displacement, due to discriminatory zoning and planning regimes that favor Israeli settlement expansion – the act that is illegal under international law and amounts to a war crime.”

The experts also expressed alarm at the regime’s endorsement and escalated practice of punitive evictions and demolitions, and other punitive measures applied to alleged perpetrators of attacks and their family members, such as revoking identity documents, citizenship and residency rights and social security benefits.

On January 29, Israeli authorities announced measures to immediately seal off family homes of those suspected of carrying out the attacks on 27 and 28 January in occupied [al-Quds] Jerusalem, including the attack in the Neve Yacoub settlement on 27 January which killed at least seven Israelis. Two families of the alleged attackers were forcibly evicted from their homes, and more than 40 people, including family members, were reportedly arrested in relation to the retaliatory operations.

"The sealing of family homes of suspected offenders and the subsequent demolition of their homes is in fundamental disrespect of international human rights norms and the rule of law. Such acts amount to collective punishment which is strictly prohibited under international law,” the experts said.

They statement added, “We regret that impunity prevails, in particular for human rights violations and potential war crimes committed by the occupying power. It is high time for international adjudication bodies to determine the nature of the Israeli occupation and seek justice and accountability for all crimes committed in the occupied Palestinian territory.”

Washington has voiced its regular strong opposition to the expansion of Israeli statements. But as usual, the statements are lame attempts to try and show that the US upholds international law.

The US has never taken any punitive action against Israel, which is its number one proxy in West Asia. The White House has defended the occupation regime even when its war crimes are condemned by UN agencies.