PAKISTAN

Govt mulling taking big step to reduce pension burden

• Finance Minister Muhammad Aurangzeb says issue of pension a huge burden

Zaheer Abbasi Published May 8, 2024  

ISLAMABAD: Finance Minister Muhammad Aurangzeb has said that pension has become a big liability and burden, and service structure would be required to be changed over a period of time so as to gradually reduce the pension expenditure.

While addressing a press conference along with Minister for Information Atta Tarar and Minister for Law Azam Nazeer Tarar, the finance minister said that the visiting Saudi delegation has expressed great confidence and the business-to-business meetings have been very positive as positive economic indicators have improved confidence of the investors.

The minister said that the trade deficit is under control and agriculture GDP is growing at five percent on the back of bumper crops.

Offering document: Employers, pension fund managers to disclose retirement age of employees

The finance minister added that the foreign exchange reserves have exceeded US$9 billion, and this is enough to cover two months of imports.

Similarly, he said that the currency is now stable and inflation has also reduced to 17 percent from 38 percent. All these things are leading to stability and the investors’ confidence is improving, he said.

The finance minister said that the first month for registration of the retail sector was voluntary and this would be taken ahead in the months of May and June 2024 through enforcement of existing laws and the second one is the point of sales machines and track and trace system. He said that the country has no option as the 9.5 percent tax-to-GDP tax is not sustainable and has to increase to 13 to 14 percent in the medium term.

He said that he has been holding meetings with investors for the last two months and some of the investors have come from the US and Europe, as well. He added that the country is moving in the right direction and added that the taxes have to be increased and reforms would be brought in the energy sector besides reducing losses of the state-owned entities (SOEs)

The minister said that the International Monetary Fund (IMF) team would arrive in the next 07-10 days and would remain for two weeks to discuss the contours of structural reforms under the new programme. He said that there is no Plan-B when the country is in the IMF programme as the IMF is the lender of last resort.

The minister said that the government has to increase taxes, reform the energy sector, reduce deficits of state-owned enterprises, and privatise them.

He said that in the first place, the priority is that Extended Fund Facility (EFF) gets in place as for climate resilient financing, the Ministry of Environment and Climate Change would be required to do some groundwork, adding that government would explore all the resources for funding.

The federal finance minister said that there is only one way to reduce the expenses by moving towards public-private partnership, adding pension is a very big liability and it is necessary to think how it has to be taken forward.

He said that he always praises the Sindh government because they have used a very good model which should be replicated at the federal level and at the other provinces, as well.

The finance minister said that the issue of pension is a huge burden and added that he sees it in two perspectives, as first step was taken by the private sector to increase the retirement age from 60 years to 65 years and the other option is to change the service structure over a period of time so as to reduce the expenditure of pension and gradually brought under control.

While speaking on the occasion, Minister for Law Azam Nazeer Tarar said that the country that survives in today’s modern times will move forward. If our economy is good, then God willing, everything will be fine. Now we have to take practical steps.

The minister for law said that the premier has formed a committee headed by the finance minister on the pension issue and so far nothing to this effect has been finalised and only suggestions are being sought for the matter.

The minister clarified that pension reforms when finalised would be implemented across the board, adding that the need for an explanation was felt following speculations. The law minister said that for reforms in pension, changes in the acts of various departments whether it is armed forces, judiciary or civil services and some constitutional changes would be required to be made. Atta Tarar said that the matter is under consideration regarding reducing the burden of pension and increasing the service period.

In response to a question regarding the reduction in interest rates, the finance minister said that the policy rate and market-based exchange rate are the domains of the State Bank of Pakistan. However, he expressed the hope that the way inflation is declining the policy rate will also come down.

He said that the monetary policy committee has stated that the interest rate will come down to 5 to 7 percent by September 2025.

He said that the government is not only seeking IMF loans but also inflows from other multilaterals and financial institutions.

Copyright Business Recorder, 2024

 

Pakistan giant Engro looks to go global, its main investor says

• Expansion plans include looking at telecoms infrastructure in countries in Middle East, North Africa, and Central Asia

Reuters Published May 7, 2024

KARACHI: Pakistan’s largest conglomerate, Engro Corp, is looking to expand into new markets, including the Middle East, Central Asia and Africa, the chemicals-to-energy company’s largest investor said on Tuesday.

Speaking to Reuters in an interview, Samad Dawood, Vice Chairman of Dawood Hercules Corporation which owns 40% of Engro Corp, said the company was also looking into global liquefied natural gas (LNG) opportunities as well as hydrogen energy.

The expansion plans include looking at telecoms infrastructure in countries in the Middle East, North Africa, and Central Asia, while it is looking at Africa to expand its fertiliser businesses, he said.

Engro Corp has a market capitalisation of 193 billion rupees ($694 million) on the Pakistan Stock Exchange and assets of 802 billion rupees ($2.9 billion), according to public data.

Engro welcomes verdict in LNG contract case

The group has businesses across multiple sectors in Pakistan, including energy, fertiliser, telecommunications, and consumer goods.

It owns 56% of Pakistan’s first LNG terminal, Engro Elengy Terminal Pakistan, set up in the southern city of Karachi in 2015, along with Dutch energy logistics giant Royal Vopak which owns 44%.

The terminal fulfils 15% of Pakistan’s natural gas demand.

Sale of thermal assets: Engro Energy Limited enters into definitive agreements

Dawood said Engro will continue to invest in energy despite having sold its coal-based assets, and was exploring new avenues for sustainable energy production.

He said the company was talking to technology providers in the hydrogen energy sector to figure out how to use ammonia as an energy transition solution.

He said Pakistan was far from being energy secure and there were plenty of opportunities to invest further in the power sector, but the company would want to move away from fixed contract businesses.

PSO says LNG business ‘bleeding’ its resources

Energy starved Pakistan has moved toward reliance on LNG after its own domestic gas supplies dwindled fast as consumption in the industrial and residential sectors has increased.

However, expensive LNG has driven up gas prices and stoked inflation.

What will it take for Bangladesh and India to sign transboundary river agreements?

Bangladesh and India need to talk about sharing water on two major rivers, the Teesta and Ganges. But experts on both sides say much depends on political consensus and the right atmosphere for negotiations


Bangladesh Prime Minister Sheikh Hasina has said her government will continue to cooperate with neighbouring countries, including on issues of cross-border communication, transit, energy partnerships and equitable water sharing. 

(Image: SK Hasan Ali / Alamy)

Z Rahman
May 8, 2024

Bangladesh’s ruling party, the Awami League, started its fourth consecutive term in government this year with a promise to cooperate with India, Nepal and Bhutan and ensure equitable water sharing. In an election manifesto released at the end of 2023, party president and current Prime Minister Sheikh Hasina said her government will continue to cooperate with neighbouring countries, including on issues of cross-border communication, transit, energy partnerships and equitable water sharing.

But experts fear that many issues around transboundary rivers will remain unresolved between both Bangladesh and India. Among those, the much-talked about agreement on water sharing for the Teesta river will be at the forefront. Another major challenge for both governments is going to be the renewal of the Ganges water-sharing treaty which expires in 2026.

The Awami League-led government has been in power since 2009, but has not made any significant progress on transboundary water cooperation with India.

Sheikh Rokon, a river activist and general secretary of the Dhaka-based think tank Riverine People said, “In the past decade, Bangladesh Prime Minister Sheikh Hasina and Indian Prime Minister Narendra Modi have met at least six times and issued joint statements. Prime Minister Sheikh Hasina has visited Delhi three times and Narendra Modi has visited Dhaka twice. During the Covid-19 pandemic, a virtual meeting was held between the two premiers. But the issue of the Ganges water-sharing agreement was never on the main agenda.”

The birth of the JRC and its 50-year ‘successes’

The formal mechanism for managing the joint rivers was established by the two countries in 1972 through the formation of the Joint River Commission (JRC). The JRC was formed as part of the Indo-Bangladesh Treaty of Friendship, Cooperation, and Peace in March 1972 to work for common interests such as irrigation, floods and cyclone control as well as sharing of water resources.

According to the rules of procedure of the JRC, at least four meetings should be held in a year, which would have meant that 208 should have been held over 52 years, but in reality, only 38 meetings have taken place. The 38th JRC ministerial-level meeting in August 2022 was the most recent, and was held after a gap of 12 years.

Despite being more than half a century old, the success of the commission has been limited. In the decades of negotiations, the two countries have been able to ink one successful treaty, the one on sharing Ganges river water in December 1996, a milestone that eased tensions between the neighbours and paved the way for greater collaboration on transboundary issues. That treaty is set to expire in two years.

The negotiation on the sharing of the Teesta river water started in 1983 with a short-term agreement. In 2011, an interim agreement for 15 years was ready to be signed by both the countries on the Teesta. But the deal was shelved as the West Bengal Chief Minister Mamta Banerjee opposed it.

JRC member Mohammad Abul Hossen said that though the committee fulfilled its role as a technical committee and drafted working agreements for water secretaries of both countries to review, a lack of consensus between both sides on the Teesta meant that attempts at formalising a treaty failed in 1997, 1999 and 2003.

Eminent water expert Ainun Nishat, who was a JRC member during signing the Ganges water-sharing agreement, explained that the JRC’s initiatives and decisions cannot be implemented unless there is political consensus. Nishat cited the series of meetings and attempts that led to the failed Teesta agreement when Banerjee opposed signing in 2011, adding “Since then, the JRC Bangladesh chapter has been following up with Indian counterparts for the signing of the agreement. But nothing has happened so far.”
Building political consensus on water-sharing

The Bangladesh government appears serious about resolving outstanding river issues with India. Post-elections, Indian High Commissioner Prannoy Verma was the first foreign envoy to meet the new foreign minister Hasan Mahmud. After the meeting, the foreign minister said the meeting touched on the Ganga water-sharing agreement as well as the Teesta, but suggested that any progress on the latter had to await the outcome of India’s ongoing general elections.

Speaking to The Third Pole, Himanshu Thakkar from the South Asia Network on Dams, Rivers and People explained that there are several factors that make this negotiation complex. “In any water agreement, there’s an upstream and downstream dynamic. The upstream country often sees no direct reason to enter into an agreement, as it doesn’t immediately face consequences unless compelled by other factors. For example, if two countries are closely tied economically through trade and other ventures, it’s easier to negotiate agreements,” he said.

He gave the example of Bhutan, which is upstream of India, and yet – because of their close relations – managing water has been easier.

“Considering the cultural proximity and historical context [between India and Bangladesh as well], an agreement should have been established by now,” Thakkar added, while noting that this had not speeded up negotiations. “Even the Ganga treaty took 25 years to materialise after the birth of Bangladesh in 1971.”

Ultimately, Thakkar said India’s position as an upstream country concerning most of the 54 rivers it shares with Bangladesh means it lacks domestic pressure to enter such agreements.

One way that cooperation could be increased, Thakkar felt, was through a wider river basin perspective. “For example,” he said, “When China’s infrastructure projects like dams on the Brahmaputra, affect the region… India protests such developments, Bangladesh – though also a downstream country [on the Brahmaputra in relation to China] often doesn’t voice concerns, perhaps due to geopolitical factors.”

In the case of Banerjee, he added, “If West Bengal were to engage in such a treaty, it would be at some cost, which can lead to political backlash. Therefore, Bangladesh must work to foster the right atmosphere for West Bengal to agree to the Teesta agreement.”

“Despite the strong ties between West Bengal and Bangladesh, navigating the political landscape remains challenging for both parties. Timing and circumstances are crucial for progress in such agreements.”

Nishat draws attention to the success of drafting agreements for the Ganga and the Indus (The Indus Waters Treaty). “We have two successful water-sharing agreements, but in both cases, the scenario is different. For the Indus treaty, the World Bank played a vital role and there was an arbitration process which led the two countries to sign the treaty. But in the case of the JRC, there is nothing in the middle like the World Bank. It is completely dependent on political consensus. Therefore, the JRC will not be able to meet its mandate unless our political consensus is there.”


Z Rahman is Dialogue Earth’s Bangladesh editor and joined in 2015. Based in Dhaka, he has written and edited articles on environment and climate issues for The Third Pole, our project reporting on the Himalayan watershed and the rivers that originate there, and a number of Bangladeshi media outlets. Rahman has an MA in literature from the University of Chittagong. He is also a media trainer and has facilitated several workshops for journalists working in Bangladesh, India and Nepal. He is a co-author of the book Rivers Beyond Borders – India-Bangladesh Transboundary River Atlas. He takes inspiration from the local music and instruments which often reflect in his works.

Iran's technical collaboration with IAEA targets to resolve issues - Iranian FM

Nuclear Program Materials

 8 May 2024
Elnur Baghishov

BAKU, Azerbaijan, May 8. Iran is trying to solve problems with the International Atomic Energy Agency (IAEA) not by political pressure but via technical cooperation, Iranian Foreign Minister Hossein Amirabdollahian told reporters, Trend reports.

According to him, there are important issues for cooperation between Iran and the IAEA. IAEA Director General Rafael Grossi raised these issues during his visit to Tehran.

Amirabdollahian noted that there is progress between Iran and the agency if the IAEA director general takes steps within the law. However, in cases of external pressure, misunderstandings arise.

Meanwhile, the 3-day 1st International Conference on Nuclear Science and Technology (international conference on nuclear science and technology) kicked off in Isfahan, Iran, on May 6. Senior Iranian officials attended the conference. IAEA Director General Rafael Grossin also traveled to Iran to attend the conference.

Additionally, Iran and the IAEA reached an agreement in March of last year (2023) and released a statement about it. According to the agreement, Iran's cooperation with the IAEA is within the framework of the Convention on the Non-Proliferation of Nuclear Weapons (NPT) and safeguards, and the parties are to cooperate on allegations of the existence of enriched uranium substances in connection with Iran's nuclear program.

In January 2016, Iran and the P5+1 group (the United States, Russia, China, the United Kingdom, France, and Germany) implemented the Comprehensive Plan of Joint Action on Iran's nuclear program. The US announced in May 2018 that it was withdrawing from the plan and imposed sanctions on Iran in November of the same year. Iran has announced that there will be no restrictions on the Iran nuclear deal in 2020.

In late 2020, the Iranian parliament adopted a strategic plan to counter the sanctions, citing the non-fulfillment of the Joint Comprehensive Plan of Action (JCPOA) signed between Iran and six countries, as well as the imposition of sanctions on Iran.

According to the Iranian parliament's decision, as of February 23, Iran had stopped the implementation of additional measures and an additional protocol included in the nuclear deal. Consequently, the IAEA reduced its monitoring mechanism by 20–30 percent.

Iran maintains its presence in JCPOA, showcasing goodwill - chairman of Atomic Energy Organization

Nuclear Program Materials

 7 May 2024
Elnur Baghishov

BAKU, Azerbaijan, May 7. As a sign of goodwill, Iran has remained in the Joint Comprehensive Plan of Action (JCPOA) on Iran's nuclear program, Iran's Vice President and Chairman of the Atomic Energy Organization Mohammad Eslami said during the joint press conference with International Atomic Energy Agency (IAEA) Director General Rafael Grossi, Trend reports.

“Iran has not withdrawn from the Comprehensive Joint Action Plan; the side that withdrew from this agreement is the US, and it has not fulfilled its obligations and has not allowed others to fulfill their obligations, and the three European countries (UK, France, and Germany) have also taken steps in this direction,” he said.

According to him, Iran has unilaterally fulfilled its obligations under the JCPOA and reduced its commitments under Article 26 of the agreement.

Eslami stated that the Iranian parliament has approved a strategic action plan to lift sanctions against Iran. The Atomic Energy Organization of Iran is taking steps within the framework of the plan.

To note, the Comprehensive Plan of Joint Action on Iran's nuclear program was implemented between Iran and the P5+1 group (the United States, Russia, China, the United Kingdom, France, and Germany) in January 2016. The US announced in May 2018 that it was withdrawing from the plan and imposed sanctions on Iran in November of the same year. Iran has announced that there will be no restrictions on the Iran nuclear deal in 2020.

In late 2020, the Iranian parliament adopted a strategic plan to counter the sanctions, citing the non-fulfillment of the Joint Comprehensive Plan of Action (JCPOA) signed between Iran and six countries and the imposition of sanctions on Iran.

According to the decision of the Iranian parliament, as of February 23, Iran had stopped the implementation of additional measures and an additional protocol included in the nuclear deal. As a consequence, the monitoring mechanism of the IAEA was reduced by 20–30 percent.

Under Article 26 of the nuclear deal, if one party fails to comply with its obligations, the other party may suspend all or part of its obligations.

The 3-day 1st International Conference on Nuclear Science and Technology in Isfahan, Iran, kicked off on May 6. Iran's top officials attended the conference. IAEA Director General Rafael Grossini also visited Iran to attend the conference.

Iran-IAEA cooperation not subject to US influence - Iranian FM

7 May 2024 13:34 

Elnur Baghishov

Read more

BAKU, Azerbaijan, May 7. The United States should not influence cooperation between Iran and the International Atomic Energy Agency, Iranian Foreign Minister Hossein Amir-Abdollahian said, Trend reports.

He made the statement during a meeting with International Atomic Energy Agency Director General Rafael Grossi on May 6 in Tehran.

Amir-Abdollahian believes that Iran-IAEA cooperation is progressing positively and will continue to grow. He added that the impartial and professional stance of the IAEA director general will play an effective role in the cooperation between Iran and the agency, helping the region return to sustainable security and stability.

During the meeting, IAEA Director General Rafael Grossi also stated that Iran's position is important for strengthening Iran's cooperation with the agency and restoring regional stability and security.

“Strengthening the cooperation process between Iran and the IAEA will lead to the failure of the parties who follow tensions and conflicts in the region under any pretext,” he said.

To note, on May 6, the three-day 1st International Conference on Nuclear Science and Technology began in Isfahan, Iran. Senior Iranian officials attended the conference. IAEA Director General Rafael Grossi also visited Iran to participate in the conference.

CRIMINAL CRYPTO CAPITALI$M

FTX has billions more than required to repay bankruptcy victims

FTX's recovery is aided by cryptocurrency resurgence and asset liquidation

ByMudit Dube

May 08, 2024

02:26 pm

What's the story

FTX, once a leading cryptocurrency exchange, has successfully gathered billions in surplus funds following its November 2022 collapse.This unexpected financial turnaround enables the firm to fully compensate its customers for their losses under its bankruptcy plan.Newly appointed CEO John Ray announced, "We are pleased to be in a position to propose a chapter 11 plan that contemplates the return of 100% of bankruptcy claim amounts plus interest for non-governmental creditors."

Asset liquidation

FTX anticipates over $16 billion in cash post asset sale

Following the sale of all its assets, FTX expects to have up to $16.3 billion in cash available for distribution, according to a company announcement.The firm's debts total around $11 billion, owed primarily to customers and other non-governmental creditors.Earlier this year, the company had approximately $6.4 billion in cash due to a surge in cryptocurrency prices, including Solana, a token heavily backed by FTX's disgraced founder Sam Bankman-Fried.

Recovery process

FTX's recovery aided by cryptocurrency resurgence and asset liquidation

In addition to the cryptocurrency surge, FTX has also liquidated various other assets such as stakes in venture capital projects like Anthropic, an artificial intelligence company.Despite comparisons to the fraudulent collapses of Enron and Bernie Madoff's Ponzi scheme, no funds will remain for equity holders once all debts and interest have been fully paid.The task of locating the company's assets and deciphering a complex network of global accounts has been undertaken by restructuring advisers.

You're 66% through

Pending approval

FTX's revised reorganization plan awaits court approval

FTX's revised reorganization plan suggests that most creditors will receive approximately 118% of their claims within two months.The plan is yet to be approved by a US bankruptcy court, with Judge John Dorsey set to consider the creditors' vote when deciding whether to approve the plan later this summer.FTX declared bankruptcy in November 2022. Its founder swindled customers and investors out of billions, using the cash for personal gain and to cover his hedge fund, Alameda Research's debts.

Done!

Wolfgang Grulke: Fossils collected over 50 years to be sold


By Steve Harris,  BBC South

BBC
Mr Grulke has spent 50 years building the collection

A collector who has amassed thousands of rare fossils that he displays in a private museum is in talks to sell his "cabinet of curiosities".

Wolfgang Grulke has been buying and conserving prehistoric artefacts, which he keeps in a converted barn near Sherborne, Dorset, for 50 years.

Now he wants to find them a new home, before he turns 80 in two years' time.

Mr Grulke says he wants the collection to go to a place where "people will be astonished and fuel their curiosity".

It was half a century ago that Mr Grulke, who at the time knew nothing about fossils, was "enticed" to visit Lyme Regis by a fossil-hunting friend.

Wolfgang Grulke hopes to find a suitable home for the collection in the next two years

He said: "That evening, over a beer, we discussed our finds with some of the locals and they introduced me to the idea of Mary Anning - a young person in her teens and twenties - collecting fossils and becoming world famous."

The conversation would spark a lifelong passion and Mr Grulke spent the next five decades building his multimillion-pound collection, which has received some notable visitors, including Sir David Attenborough.

Artefacts include the world's largest uncoiled ammonite, an entire ichthyosaur skeleton, and huge clusters of marine fossils that were discovered high in the Alps.

One of the most impressive and unusual pieces is a large cluster of uncoiled ammonites

"What you are looking at here is the history of life on earth," said Mr Grulke.

"You've got this back wall of cabinets which has fossils from 500 million years ago, to the time that ammonites died out with the dinosaurs 66 million years ago.

"My ideal future is that this collection continues to be a cabinet of curiosities rather than an individual display of fossils in a museum.

"Obviously, I'd love it to stay in Dorset, even though it represents fossils from all over the world, but there has been a lot of interest from international museums as well."

Ancient shrimp named ‘weegie’ in honour of Glasgow origins

The shrimp is believed to have swam in the Carboniferous seas surrounding Glasgow around 333 million years ago.

PA Media

Fossil: The Tealliocaris weegie is a type of shrimp that died out hundreds of millions of years ago.

A type of shrimp that died out hundreds of millions of years ago has been declared a new species and a Glaswegian.

The shrimp is believed to have swam in the Carboniferous seas surrounding Glasgow around 333 million years ago.

Its fossil was found at the same world-famous locality where the Bearsden Shark was excavated in the early 1980s.

The shrimp has been given the name Tealliocaris weegie after a scientific paper identified it as a Glaswegian crustacean.

Its authors thought that it would be appropriate to name the new species in honour of the people of Glasgow and the local dialect.

The paper was recently published in the Royal Society of Edinburgh’s journal Earth and Environmental Science Transactions.

Dr Neil Clark, curator of palaeontology at The Hunterian and one of the paper’s authors, said: “It is quite rare that any fossil is recognised as a new species and particularly the fossilised remains of a shrimp.

“I am especially proud, as a Glaswegian myself, that we were able to name a fossil shrimp Tealliocaris weegie.

“Named after the people of Glasgow, this must surely be one of the oldest Weegies at over 330 million years old.”

Dr Andrew Ross, principal curator of palaeobiology at National Museums Scotland and the second author of the paper, said: “This new species of crustacean, along with others collected recently from the Scottish Borders, now in the collections of National Museums Scotland, add to our knowledge of life at the beginning of the Carboniferous, 350-330 million years ago, when back-boned animals were starting to colonise the land.”

Professor Rob Ellam FRSE, emeritus professor at the University of Glasgow and editor of the Earth and Environmental Science Transactions journal, said: “This new species of fossil crustacean is basically a tiny fossil version of what we eat as scampi today.

“This paper goes to show that there is still great science to be done with fossils that can be discovered on our own doorstep.

“Moreover, naming one of the new species T. weegie shows that there is still room in the serious world of professional palaeontology and scientific publishing for a welcome bit of light-hearted Glaswegian banter.”