Pakistan seeks Saudi Arabia's help to tackle financial crisis

Agencies
October 17, 2018

New Delhi, Oct 17: Pakistan is seeking foreign aid to tackle its sagging economy and Saudi Arabia is one of the most important investors that it needs to get its hands on, opines Arif Rafiq, who authored 'The China-Pakistan Economic Corridor: Barriers and Impact'.

In an article, titled "What Is Saudi Arabia's Grand Plan for Pakistan?", published in The National Interest, Rafiq notes that the first foreign visit of Imran Khan after taking over as Pakistan's Prime Minister was to Saudi Arabia in a bid to woo Riyadh to invest in energy and mining in Pakistan.

"It appears that Islamabad asked Riyadh to park funds close to $10 billion with the State Bank of Pakistan-well before these investments achieve financial close-to shore up Pakistan's forex reserves in the interim," Rafiq wrote in the article published on October 16.

Terming Pakistan's claims and subsequent denials of inviting Saudi Arabia to join the China-Pakistan Economic Border (CPEC) as a strategic partner, as "Islamabad's scramble for dollars", the article states that talks between the two countries on several projects, including CPEC will, however, continue.

Islamabad has put forth five projects including the Reko Diq copper and gold mine in Balochistan, which amounts to hundreds of billions of dollars. However, the author, who is also editor of the CPEC Wire newsletter, pointed out that last year Pakistan lost an arbitration case to the Tethyan Copper Company.

The World Bank's International Center for Settlement of Investment Disputes ruled against Islamabad in relation to the unlawful denial of a mining lease for the Reko Diqproject in 2011. The tribunal is expected to determine Pakistan's liability this year, which might exceed 11 billion US dollar.

With Reko Diq's not-so-strategic location, that is, less than one hundred miles from Pakistan's border with Iran, the mine could be an easy target for the insurgent attacks.

"Resource nationalism is a driver of the ethnic Baloch insurgency, but it also receives support from regional states," Rafiq wrote.

Mentioning the suicide bombing incident by Balochistan Liberation Army, which attacked a convoy transporting Chinese engineers to the Saindak copper and gold mine, Rafiq noted that the attacker used an Iranian vehicle.

"Militants with several Baloch separatist groups combatting the Pakistani state are believed to be in Afghanistan or Iran. Projects linked to the Saudis would become targets in the same way Chinese projects have been over the past fifteen years," the article states.

Islamabad wants to rope in Riyadh for the second set of projects, which includes two government-owned operational regasified liquefied natural gas-fueled power plants in the Punjab province.

"Riyadh reportedly expressed interested in purchasing equity in the plants on a government-to-government basis, but that may not be legally possible. Instead, a Saudi power company, ACWA Power, could take part in open bidding for the plants. Sale of the plants could earn Islamabad much-needed cash, but there are geopolitical complications tied to that sale too. These power plants are fueled by liquified natural gas (LNG) from Qatar. Sale of the plants to a Saudi public or private entity would likely require an alternate source of LNG and could even impact Pakistan's fifteen-year LNG supply contract with Qatar," writes Rafiq.

The third investment project for Saudi Arabia in Pakistan is a Saudi Aramco refinery in Gwadar, the site of a Chinese-operated port and industrial zone. Just like Reko Diq mine, Gwadar shares a close proximity to Iran border.

The article goes on to mention that "Gwadar is a competitor to Iran's Chabahar port, where India will operate a terminal that will be used to bypass Pakistan to access Afghanistan and Central Asia. It is an end node for the China-Pakistan Economic Corridor, which begins in Kashgar, located in China's Xinjiang region. Economic activity and investment in Gwadar have progressed tepidly when compared to other regional upstarts like Duqm in Oman and Khalifa Port in Abu Dhabi, which have received significant inflows from China, with the potential to exceed $10 billion. Investment from a global energy giant like Saudi Aramco would catalyze other investments and boost port activity."

Rafiq also notes that even though a refinery in Gwadar would give the Saudis "an economic foothold in a strategic location" as it is right outside the Strait of Hormuz but close to Persian Gulf shipping lanes, and could lock Pakistan into purchasing Saudi crude, there are several flip sides to this investment.

One of the limitations to Saudis' investment is the memorandum of understanding signed by Saudi Aramco with a consortium of Indian state-owned oil companies for a $44 billion oil refinery and petrochemicals complex in India.

Rafiq also points that the domestic demands of Pakistan will be met if a refinery were to open in Gwadar and it would help Pakistan to save on import bills.

"Whether it's infrastructure development, energy trade, or defence hardware sales, China is ubiquitous across the Middle East and has been an equal opportunity partner to both Iran and its Gulf Arab adversaries. Iran is crucial to China's Silk Road Economic Belt. And the Gulf Arab states, especially the United Arab Emirates, could be critical to its Maritime Silk Road," reiterates Rafiq.

Talking about North-South gas pipeline project for which Pakistan is seeking investment from Saudi Arabia, the author observes, "Pakistan signed a government-to-government agreement with Russia to build the pipeline and supply the LNG. The two countries, however, have not come to agreement on pricing, and Rostec has struggled to find financing for the project, though reports last year indicated that China's Silk Road Fund could finance it. Russia may have difficulty supplying the LNG."

He asserted that Saudi's role in the project remains unclear. But Pakistan has also invited the Arab kingdom's investment in an open bidding for exploration in ten oil and gas blocs.

Noting that fuel makes up one of the most imported commodity in Pakistan, Rafiq says, "Reducing its dependence on imported fuels by ramping up domestic oil and gas exploration is critical for Pakistan to escape its boom-bust cycles that bring it to the IMF's doorstep every few years. Pakistan may actually have enough recoverable natural gas to not only meet domestic demand but also export it."

The article also notes that even though under Crown Prince Mohammed bin Salman's influence, the strategic use of aid and investment has increased, there is an economic basis for Saudi investment in Pakistan.

The article further mentions that the FDI from China has been going up as against going down of net inflows from the Gulf countries. But Iran has not been able to make any investment in Pakistan.

Rafiq opines that, "For Pakistan, there is no escape from geopolitics, even when it comes to issues like connectivity and trade. And that is true in a global sense as well as the United States adopts a tougher posture toward the Belt and Road Initiative, digs deeper into a tariff war with China, and continues to use economic sanctions or lawfare to force Iran to capitulate."

In his article, the author asserted that Pakistan faces strong challenge to address its economic problems. "Calls for Pakistan to become a "normal" state that puts its economic interests above its strategic are outdated, reflecting a view of globalization that is now passe," concluded Arif Rafiq in the piece.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 15,2020

Washington, May 15: A top US senator has unveiled an 18-point plan, including enhancing military ties with India, to hold the Chinese government accountable for its "lies, deception, and cover-ups" that ultimately led to the global COVID-19 pandemic.

The prominent suggestions are moving manufacturing chain from China and deepening military-strategic ties with India, Vietnam and Taiwan.

"The Chinese government maliciously covered up and enabled a global pandemic that has caused misery for so many Americans. This is the same regime that locks up its own citizens in labour camps, steals America's technology and jobs, and threatens the sovereignty of our allies,” said Senator Thom Tillis, presenting his detailed, 18-point plan on Thursday.

"This is a major wake-up call to the United States and the rest of the free world. My plan of action will hold the Chinese government accountable for lying about COVID-19; sanctioning the Chinese government while protecting America's economy, public health, and national security," he said.

The plan seeking to create a Pacific Deterrence Initiative and immediately approve the military's request for USD 20 billion in funding. It also calls for deepening military ties with regional allies and expand equipment sales to India, Taiwan and Vietnam.

Encourage Japan to rebuild its military and offer Japan and South Korea sales of offensive military equipment, it said.

"Move manufacturing back to the US from China and gradually eliminate our supply chain dependency on China. Stop China from stealing our technology and provide incentives to American companies to regain our technological advantage. Strengthen cybersecurity against Chinese hacks and sabotage," the plan stated.

"Prevent American taxpayer money from being used by the Chinese government to pay off their debt. Implement the US ban on (Chinese technology company) Huawei and coordinate with our allies to implement similar bans,” it added.

The plan seeks restitution from the Chinese government and imposition of sanctions for lying about the virus. It further said China should be sanctioned for their atrocious human rights record.

Senator Tillis' plan urges the Trump Administration to formally request the International Olympic Committee to withdraw the 2022 Winter Olympics from Beijing.

"Stop China's propaganda campaign inside the United States. Treat Chinese government-run media outlets as the propaganda proxies that they are," the plan stated.

Urging the government to investigate the Chinese government's cover-up of the spread of COVID-19, the plan also seeks to investigate America's reliance on China's supply chains and threats to public safety and national security.

"Ensure the independence of the WHO through investigations and reform. Expose and counter China's predatory debt-trap diplomacy targeting developing countries. Increase intelligence sharing on potential pandemics and lead the creation of a watchdog organization to monitor foreign governments' handling of deadly viruses," Tillis said in his suggestions.

The coronavirus, which first emerged in China's Wuhan city in December last, has killed over 3,00,000 people with 4.3 million confirmed cases across the world. More than a quarter of all confirmed COVID-19 cases are from the US.

There has been increasing pressure on the President Trump, in the last several weeks, to take action against China as lawmakers and opinion-makers feel that the COVID-19 spread across the world from Wuhan because of Chinese inaction.

Meanwhile, Senator John Barrasso, in a speech on the Senate floor on Thursday, highlighted the need to update the Foreign Intelligence Surveillance Act (FISA) legislation that was put on hold by the coronavirus pandemic.

"The virus could have been contained had it not been for the Chinese Government's unscrupulous cover-up. China knew the risk months before the rest of the world; yet Chinese communist leaders destroyed key evidence, they under-reported the number of coronavirus cases, and they misled the world about its deadly, rapid spread," he said.

Asserting that the virus should have been contained in Wuhan, he said tens and tens of thousands of Americans and hundreds of thousands of people worldwide have died as a result of China's failure.

Barrasso said the US should encourage its companies to create American and western supply chains. "That way our frontline workers have what they need in the time of crisis," he said.

"Not again, not ever will we be exclusively sourced for critical drugs from China. We should diversify supply and bring home as much of our supply chain as possible," he added.

Congressman Troy Balderson introduced bicameral legislation with Congressman Doug Collins and Senator Lindsey Graham that will hold China accountable for deceptive actions taken by its leaders that led to the spread and subsequent global pandemic.

The COVID-19 Accountability Act authorises president Donald Trump to impose sanctions on China if it fails to cooperate with a full investigation led by the US or its allies into the events that lead to the COVID-19 outbreak.

"The number of Ohioan lives needlessly claimed by this pandemic could have been significantly reduced had China taken appropriate measures to control the virus' spread and disclose its severity," said Balderson.

"The United States can't look the other way when China so recklessly compromised worldwide health and the global economy. China and its Communist Party leadership must be held accountable," he said.

Comments

WHO
 - 
Monday, 18 May 2020

Hahah LOL..

 

go back to past 20 year...from 2000 to 2020..all your sins are boiling now.

 

millions of innocent life has been taking by so called AMERICA in middle east.

 

 

now come to the point

The great GOD Vs USA

GOD: 4 Million+

USA and allied : 0

 

throw your nuke weapon to sea...no use

you cant fight God s tiny microorganisms...humans are just a thing.

 

USA will get 0.5 million death and 10 million infection...20 years of  sin must be given with interest

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
February 19,2020

Washington, Feb 19: Sri Srinivasan, a prominent Indian-American judge, has created history by becoming the first person of South Asian descent to lead a powerful federal circuit court considered next only to the US Supreme Court.

Srinivasan, 52, became the Chief Judge of the United States Court of Appeals for the DC Circuit.

An Obama appointee who has already been considered for a Supreme Court seat twice, donned the mantle of the chief judge of the DC federal court circuit on February 12.

Srinivasan succeeded Judge Merrick Garland, who has been a member of the DC Circuit since 1997 and Chief Judge since 2013. He will remain on the bench, a press release said.

Notably, Garland's nomination to the Supreme Court by the then president Barack Obama was blocked by Senate Republicans in 2016.

Srinivasan, was appointed to the US Court of Appeals for the District of Columbia Circuit in May 2013.

He was the first ever Indian-American to be appointed to the second most powerful court of the US.

Neomi Rao, nominated by President Donald Trump, is the second Indian American on this powerful judiciary bench.

History being made on the DC Court of Appeals. Congratulations, Judge Srinivasan! Senator Mark Warner said.

Congratulations to Judge Sri Srinivasan on becoming the Chief Judge of the U.S. Court of Appeals for the D.C. Circuit! A milestone for the Indian-American/Kansan community (and yet another piece of evidence my family can use that I'm underachieving), US Federal Communications Commission Chair Ajit Pai said.

According to The Washington Post, Srinivasan spoke recently about his path to the bench at an event celebrating women in the law, a field where men still dominate leadership positions.

"Everybody doubts their belonging and worthiness in some measure. I definitely did and still do. This is just going to be a part of the thing when you're looking out in the world in which everyone isn't like you. It's natural to doubt whether you belong and whether you're worthy, he said, "but you do belong and you are worthy.

Born in Chandigarh, and raised in Lawrence, Kansas, he received a B.A. from Stanford University, a J.D. from Stanford Law School, and an M.B.A. from the Stanford Graduate School of Business.

Following graduation, he served as a law clerk to Judge J. Harvie Wilkinson III of the US Court of Appeals for the Fourth Circuit, as a Bristow Fellow in the Office of the US Solicitor General, and as a law clerk to US Supreme Court Justice Sandra Day O'Connor.

From 2011 until his appointment to the US Court of Appeals, Judge Srinivasan served as the Principal Deputy Solicitor General of the United States.

He has argued 25 cases before the US Supreme Court. He has also taught appellate advocacy at Harvard Law School as well as a seminar on civil rights statutes and the Supreme Court at Georgetown University Law Center.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
April 5,2020

New York, Apr 5: New York State, the epicentre of the coronavirus pandemic in the US, continued to record the highest count of daily deaths from COVID-19 as a staggering number of 630 people died in a 24-hour period and Governor Andrew Cuomo said the outbreak in the state could peak in about seven days.

The state had recorded the highest single increase in the number of deaths from novel coronavirus in a single day between April 2 and 3 when 562 people had died, one person dying from the viral infection almost every two-and-a-half minutes.

In the 24 hours since April 4, the death toll grew to 630, "all-time increase" up to a total of 3,565, up from 2,935 on Friday morning, Cuomo said.

The daily death toll in New York continues to grow at record numbers as the state remains the most impacted in the US from coronavirus.

Coronavirus cases in New York State now stand at 113,704, out of the country's total number of 312,146. New Jersey, the second most impacted state in the US, has about 30,000 COVID-19 cases.

New York City alone has 63,306 coronavirus patients, up from 57,169 the previous 24 hours, and 2,624 deaths.

Cuomo said the apex in the state, the point where the number of infections on a daily basis hits the high point, is still about 4-8 days away.

"We have been talking about hitting that apex, the high point of the curve. I call it the battle of the mountaintop. That's going to be the number one point of engagement of the enemy," he said.

"But our reading of the projections is we're somewhere in the seven-day range, four, five, six seven, eight day range. Nobody can give you a specific number, which makes it very frustrating to plan when they can't give you a specific number or a specific date, but we're in that range," Cuomo said.

"We are not yet at the apex. Part of me would like to be at the apex and just let's do it. But there's part of me that says it's good that we're not at the apex because we're not yet ready for the apex either, still working on the capacity of the (healthcare) system," the governor said.

Cuomo has expressed anger over the short supply of essential medical equipment for healthcare professionals to help them deal with the surge in coronavirus cases across the state and the country.

He said personal protective equipment (PPE) such as masks, gowns and face shields are in short supply in New York as they are across the country and there is need for companies to make these materials.

"It is unbelievable to me that in the New York State, in the United States of America, we can't make these materials and that we are all shopping China to try to get these materials and we're all competing against each other," he had said earlier.

Cuomo said on Saturday that the state has 85,000 volunteers, including 22,000 from outside the state, and he will also be signing an executive order to allow medical students who were slated to graduate to begin practising, supplementing the state's healthcare professional capacity.

On ventilators, he said the state had ordered 17,000 but there was not enough supply in the federal stockpile to meet this growing demand across the state.    

"China is remarkably the repository for all of these orders - ventilators, PPE, it all goes back to China, which long term we have to figure out why we wound up in this situation where we don't have the manufacturing capacity in this country," he said, adding, "New York has been shopping in China."

The Chinese government helped facilitate a donation of 1,000 ventilators that will arrive at the JFK Airport in the city, he said, as he thanked the Chinese government, Alibaba head Jack Ma, the Jack Ma Foundation, Alibaba co-founder co-founder Joe Tsai and China's Consul General Huang Ping.
In addition, the state of Oregon would deliver 140 ventilators to New York.    

Cuomo has signed an executive order allowing the state to redistribute ventilators and personal protective equipment from hospitals, private sector companies and institutions that don't currently need them and redeploy the equipment to other hospitals with the highest need.
Those institutions will either get their ventilator back or they will be reimbursed and paid for their ventilator so they can buy a new ventilator.
The 2,500-bed facility at the Javits Convention Centre, which was supposed to be used for non-COVID patients, will now be used as COVID-positive facility.

"The federal government will staff that and the federal government with equip that. That is a big deal because that 2,500-bed facility will relieve a lot of pressure on the downstate system as a significant number of beds and that facility has to make that transition quickly and that's what we're focused on," Cuomo said.

Cuomo emphasised that he wants the pandemic to end as soon as possible as it is taking an unprecedented strain on life.

"I want this to be all over. It's only gone on for 30 days since our first case. It feels like an entire lifetime. I think we all feel the same. This stresses this country, this state, in a way that nothing else has frankly, in my lifetime. It stresses us on every level.

The economy is stressed, the social fabric is stressed, the social systems are stressed, transportation is stressed," he said.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.