The Press Roundup

 

January 10, 2024 (Wednesday)

Curated Summary

Blinken meets Palestinian leader Abbas in occupied West Bank (Reuters)

• U.S. Secretary of State Antony Blinken met with Palestinian President Mahmoud Abbas in the Israeli-occupied West Bank, discussing the PA's responsibility to reform itself and improve its governance.
• Blinken emphasized the need for a practical pathway to a Palestinian state and urged Israel to make hard decisions and choices to achieve lasting peace and security.
• The PA, which exercises limited self-rule in some areas of the occupied West Bank, is seen as the best hope for a unified Palestinian government of both Gaza and the West Bank.
• U.S.-brokered talks on a Palestinian state in territory now occupied by Israel collapsed almost a decade ago, and right-wing leaders in Israel's current ruling coalition oppose Palestinian statehood.

US and UK shootdown complex Houthis attack in Red sea (New York Times)

• U.S. and British warships intercepted a large barrage of drones and missiles fired by Houthi-controlled areas of Yemen towards commercial ships in the Red Sea, highlighting the militia's efforts to disrupt global commerce in protest of Israel's war against Hamas. No injuries or damage were reported.
• The attacks by the Houthis have disrupted shipping in the Red Sea, leading to rerouting of vessels and causing delays and higher prices for oil and other imported goods worldwide. The Biden administration has warned that the Houthis will be held responsible for the attacks.
• The United States and a dozen allies issued an ultimatum to the Houthis to cease their attacks, and some of these countries may join the United States in retaliatory strikes if conducted.
• The United States has refrained from retaliating against Houthi bases in Yemen to avoid undermining a fragile truce in Yemen's civil war. However, detailed plans for striking missile and drone bases in Yemen have been prepared by Pentagon officials.
• The Biden administration has declassified intelligence indicating that Iranian paramilitary groups are helping coordinate the Houthi attacks, providing targeting information about commercial shipping in the Red Sea and the Suez Canal.

Pakistan, Turkiye and Saudi Arabia discuss collaboration in military technologies (Dawn)

• Pakistan, Turkiye, and Saudi Arabia held discussions on potential collaboration in military technologies, emphasizing the importance of pooling resources to achieve shared objectives and attain self-sufficiency in the defense sector.
• The Trilateral Defense Industrial Collaboration forum was established to enhance cooperation in the field of defense among the three countries.
• The meeting provided an opportunity to discuss prospective collaboration in defense equipment technologies, including research and development.
• The three countries acknowledged their historical ties and reiterated their strategic intent to expand the scope of trilateral cooperation.
• The next meeting on Trilateral Defense Industrial Collaboration is scheduled to be held during the World Defense Show in Riyadh, Saudi Arabia, in February 2024.
• This continued dialogue marks a significant step in strengthening defense ties and technological collaboration between Pakistan, Turkiye, and Saudi Arabia.

Pakistan startup fund launched (Business Recorder)

• Pakistan has launched the first-ever "Pakistan Startup Fund" (PSF) to catalyze venture investments in Pakistani startups and position them as significant players on the global stage.
•  The government will allocate up to Rs 2 billion for the PSF every year.
• The Fund is structured as equity-free capital to help startups raise their first external investment.
•  The Ignite National Technology Fund will oversee the operations of the PSF. The goal is to create a value of at least Rs 50 billion per year in the startup ecosystem in Pakistan.
• The PSF aims to lower the risk for international investors to invest in Pakistani startups.

Maulana's mission (Dawn)

• Maulana Fazlur Rehman, the JUI-F chief, visited Afghanistan to convince the Afghan Taliban to rein in the banned TTP and prevent them from using Afghan soil for anti-Pakistan activities.
• The TTP launched a deadly attack on policemen escorting polio vaccinators in Bajaur on the same day that Maulana Fazlur Rehman was meeting with the Taliban leadership.
• Mullah Hassan Akhund, the 'Islamic Emirate's' Prime Minister, discussed the issue of Afghan migrants' expulsion from Pakistan with Maulana Fazlur Rehman and criticized the treatment of his compatriots by Pakistan.
• Mullah Akhund assured Maulana Fazlur Rehman that his government has no malice towards Pakistan and will not allow Afghan soil to be used against any country.
• Questions arise about the effectiveness of Maulana Fazlur Rehman's efforts in bringing down militancy, considering a similar trip by a delegation of Pakistani Deobandi ulema in 2022 did not yield significant results.

Modi govt planning to bomb Ram temple to put blame on Pakistan, Muslims (Kashmir Media Service)

• An RJD MLA in Bihar, India, has claimed that the ruling BJP is planning a bomb blast at the inauguration ceremony of the Ram temple in Ayodhya on January 22.
• The MLA alleges that the BJP intends to use the incident to incite religious tensions and blame Pakistan and Muslims.
• Indian Prime Minister Narendra Modi is scheduled to attend the ceremony as a special guest.

Pakistan supports S.Africa's initiative against Israel at top UN court over genocide in Gaza (Arab News)

• Pakistan strongly condemns Israel's military actions in Gaza and supports South Africa's legal case against Israel at the ICJ.
• Pakistan considers the Israeli occupation of Palestine as the main source of the conflict and calls for the recognition of the Palestinian right to self-determination.
• Pakistan criticizes the Security Council for its failure to act on the Gaza crisis and opposes the expansion of the permanent membership of the council.

Pakistan's missing market (Foreign Policy)

• Pakistan needs to rethink its geopolitical and economic strategy to address its ongoing crises and achieve sustainable and inclusive economic growth.
• Average annual economic growth in Pakistan between 2010 and 2022 has been around 4 percent, accompanied by a rise in total debt as a share of GDP. In contrast, Bangladesh grew at an annual average of 6.2 percent over the same period, with a lower debt to GDP ratio.
• Embracing trade with India could be a significant step for Pakistan to reinvigorate its growth. Research suggests that Pakistan's exports could increase by 80 percent, leading to positive impacts on GDP and employment, if it had a normal trading relationship with India.
• India accounts for a substantial portion of Pakistan's unrealized trade potential, with estimates suggesting that India could contribute up to 85 percent of Pakistan's total unrealized trade potential.

China spurned Pakistan's proposals for new Belt and Road projects (Nikkei Asia)

• China has rejected calls to invest in fresh Belt and Road projects in Pakistan due to political uncertainty and deteriorating security in Islamabad.
• Pakistan suggested adding more projects related to energy, climate change, electricity transmission lines, and tourism under the China-Pakistan Economic Corridor (CPEC), but China turned down these proposals.
• China declined Pakistan's proposal to build a 500 kilovolt transmission line to connect Gwadar port to the national electricity grid, but forced Pakistan to drop objections to a coal-fired power plant in Gwadar.
• China's reluctance to deepen its presence in Pakistan is evident, as it becomes more selective in its investments, especially considering concerns like political instability and the safety of Chinese nationals.
• China's approach to Belt and Road investments is guided by prudence and long-term sustainability, aligning investments closely with its strategic interests.
• Pakistan has been experiencing political upheaval and civil unrest since the toppling of the government in April 2022, and militants have targeted Chinese interests in the country.

Pakistan moves toward deal-or-default endgame (Reuters)

• Pakistan is facing a severe economic crisis, including currency devaluation and emergency spending cuts, which indicates a risk of default unless it receives significant support.
• The country's reserves are running low, with only 3.7 billion remaining, barely enough for three weeks of essential imports.
• Pakistan urgently needs the release of an overdue tranche of 1.1 billion from the International Monetary Fund (IMF) to avoid default.
• The IMF bailout program, set to end in June, has been suspended since November, adding to the financial pressure.
• Pakistan's debt-to-GDP ratio is high, and a significant portion of government revenues is allocated to interest payments.
• Restructuring of Pakistan's bonds may be necessary, as most of them are trading at less than half their face value.
• The IMF is seen as the only logical option for Pakistan to avoid default, and another support package may be needed.

Pakistan: Escaping the sovereign debt trap (The Diplomat)

• Pakistan is currently trapped in a sovereign debt crisis due to excessive foreign currency denominated external debt and limited foreign exchange resources, making it difficult to meet debt service payments.

• The current approach to addressing the debt trap involves taking on more external debt and restructuring existing debt, but this is seen as a temporary solution that does not provide a long-term exit from the debt trap.

• The key to escaping the debt trap lies in deleveraging, which involves financing without debt through grants and equity.

• Multilateral creditors like the IMF, World Bank, and Asian Development Bank could convert existing loans into grants, while private holders of Pakistani sovereign debt could swap their debt for shares of state-owned enterprises to be privatized.

• Deleveraging shifts the focus from Pakistan's capacity to pay to its potential for growth, aiming to ensure financial resiliency and long-term economic and financial recovery.