Asian Headlines: Quick Recap
The ‘no-limits’ partnership between Russia and China
On Wednesday, President Xi Jinping met Russian President Vladimir Putin at the Third Belt and Road Forum for International Cooperation, continuing their “no-limits” partnership that began in February 2022. Russia’s Deputy Prime Minister Alexander Novak stated that Russia has supplied over 15 billion cubic metres of gas via the Power of Siberia gas pipeline. China is also assisting Russia in its preparations to host the BRICS Summit in Kazan next year. The collaboration has also yielded tangible results, such as a grain supply contract worth approximately $25.7 billion. The relationship influences both countries’ reactions to political developments, such as the Middle East, with both countries hardening their positions on Gaza.
Hezbollah official says his group already ‘is in the heart’ of Israel-Hamas war
Sheikh Naim Kassem, Hezbollah’s deputy leader, has stated that his organisation is “in the heart of the battle” in the Israeli-Hamas conflict. Kassem stated that the group is heating up the Lebanon-Israel border to weaken the Israeli enemy and demonstrate readiness. Hezbollah has fired rockets and missiles at Israel, killing six of its fighters on Saturday, the highest daily toll since the conflict began two weeks ago. Hezbollah’s arsenal of weapons includes tens of thousands of rockets, missiles, and drones.
Qatar Exerts Sway to Release U.S.-Israeli Hostages as Netanyahu’s Stance Remains Iffy
Qatar has played an important role in freeing American-Israeli hostages Judith and Natalie Raanan from Hamas captivity. Qatar’s direct and effective communication with the abductors, as well as ongoing discussions with Hamas and Israeli officials, highlight the importance of Qatar in facilitating discussions and potentially influencing the fate of other hostages.
Paris and Washington attempt to quash nascent narrative of Iranian involvement in Hamas offensive
France, Iran, United States: Paris and Washington attempt to quash nascent narrative of Iranian involvement in Hamas offensive: At an informal meeting with journalists on the situation in the Middle East on 14 October, Emmanuel Bonne, the foreign affairs adviser of French President Emmanuel Macron, made a point of confirming that France had no specific information regarding Iranian involvement in Hamas’s attack on Israel on 7th October.
France’s Legrand makes tough choice between sanctions and local mafia in sale of Russian assets
France’s Legrand makes tough choice between sanctions and local mafia in sale of Russian assets: France’s Legrand Group, a leading manufacturer of electrical equipment, is exiting Russia, but the plant it built in Ulyanovsk will continue to operate. Legrand said its activities in Russia accounted for approximately 1.5% of full-year sales in 2022. “As of December 31, 2022, the Group’s balance-sheet exposure to Russia, including currency translation reserves, amounted to approximately €200 million, of which close to €150 million will be booked in respect of its 2022 consolidated financial statements as an assets impairment, with no impact on the Group’s adjusted operating profit,” the company said. The group sold its stake to IEK Group which controls 20 offices, and 3 manufacturing facilities.
Af-Pak De/Cypher
23 Oct, 2023
Top Stories From The Week: Af-Pak
On 17th and 18 October, Pakistan Military tested Ababeel weapons system including a launch vehicle and surface to surface missile. According to Inter-Service Public Relations the missile has a maximum range of 2,200 kilometers and can deliver multiple warheads using Multiple Independent Re-entry Vehicle (MIRV) technology. It can carry nuclear warheads and has the capability to engage multiple targets with high precision, defeating hostile radars. The test flight conducted on 18th October was aimed at re-validating various design, technical parameters, and performance evaluation of different sub-systems of the weapon system. Read more: Dawn.
Immediately after the weapons testing by Pakistan, United States imposed sanctions on three China-based companies that supplied missile‐applicable items to Pakistan’s ballistic missile program. These three firms are General Technology Limited, Beijing Luo Luo Technology Development Co Ltd, and Changzhou Utek Composite Company Ltd. According to US agencies, General Technology had worked to supply brazing materials used to join components in ballistic missile rocket engines and in the production of combustion chambers; Beijing Luo Luo had worked to supply mandrels and other machinery, which can be used in the production of solid-propellant rocket motors and Changzhou Utek Composite, had worked since 2019 to supply D-glass fiber, quartz fabric, and high silica cloth, all of which have applications in missile systems. Read more: Arab News
Regional Security
Waziristan in Pakistan remains a hot spot militant activity. Four Pakistan Army soldiers and six millitants, including a “high-value target”, were killed during two fierce encounters in North and South Waziristan districts. The high-value target was Hazrat Zaman alias Khawarey Mullah. According to Pakistan’s military Zaman was actively involved in multiple militant activities in the area and was highly wanted by security agencies. Read more: The Express Tribune
China & Pakistan
Pakistan’s caretaker Prime Minister Anwaar ul Haq Kakar attended the Third Belt and Road Forum for International Cooperation in China. The event also marked ten years of China Pakistan Economic Corridor, the flagship project of Belt and Road Initiative. Different MoUs were signed between the leadership of China and Pakistan. Kakar also met Russian President Viladimir Putin, President of Kenya Dr. William Ruto and the President of Sri Lanka Ranil Wickremsinghe. With Russia, Kakar discussed the areas of convergence like countering terrorism in Afghanistan, trade of energy, petroleum, and promotion of bilateral ties. At the final Gala Dinner having all the attendees of the forum Kakar stated categorically of “Pakistan’s blind trust on China” and the pride Pakistan takes in “Chinese progress”. After the Forum Kakar visited Ürümqi in the Uyghur region of China to address students at Xinjiag University. He also offered Jumma prayers in the Grand Mosque of Xinjiag. Read more: The Current
Politics
Nawaz Sharif, Pakistan’s thrice-elected former prime minister, has returned home after four years of self-exile in the United Kingdom to stand in next year’s elections against his biggest rival, former premier Imran Khan. The 73-year-old veteran politician arrived by chartered flight to Pakistan’s capital Islamabad on 21st October. Earlier on 19th October, he was granted protective bail till Oct 24 in the Avenfield and Al-Aziza cases by the Islamabad High Court. Nawaz was convicted in the Al-Azizia and the Avenfield corruption references by an accountability court on July 6, 2018. He was awarded 10 years imprisonment. In October 2019, the IHC granted him bail on humanitarian grounds and he went to London for medical treatment. Read more: Al Jazeera, The Current, The Express Tribune
Supreme Court of Pakistan on 20th October formed two separate benches to hear petition related to civilians’ trials in military courts and delay in general elections. Earlier, former top judge Justice Umar Ata Bandial heard the military courts case in early August in which the government assured that no civilians would be tried without letting the court know beforehand. Read more: Daily Pakistan
Economy
According to a new report by World Bank, the real GDP growth of Pakistan is expected to only reach 1.7pc in fiscal year 2024, with tight fiscal and monetary policy, persistent inflation and weak confidence due to political uncertainty surrounding upcoming elections. Even with the short-term, $3 billion loan agreement signed with the IMF earlier this year, foreign exchange reserves, on average, are expected to be less than one month of total imports over the next fiscal year, necessitating continued import controls and constraining economic recovery. The Report was prepared for the recently concluded annual meetings of the World Bank and IMF in Marrakesh, Morocco. Overall, the economic contraction, high inflation and flood-related devastation have affected poorer households in Pakistan disproportionately. Read more: Dawn
Pakistan’s food exports grew more than 18 per cent in the first quarter of fical year 2023-24 to $1.28 billion, according to data released by the Pakistan Bureau of Statistics (PBS).The surge in food products exports can be attributed to the unprecedented rupee depreciation. In addition, persistent disruptions in the supply chain and higher prices in the international market have led to a soaring demand for food products. Read more: Dawn
Views & Analysis
A Year on, Billions in Afghan Assets Linger in Switzerland
In August 2021, United States froze 7 billion dollars of Afghan government funds to prevent them from falling into Taliban’s hands. In September 2022, the Fund for the Afghan People was created in Geneva with a mandate to disburse $3.5 billion of these frozen assets. Distribution of these funds can stabilize food prices, providing crucial support to majority of Afghan citizens. Despite decline of inflation rate into deflation in April 2023, two thirds’ households in Afghanistan still struggle to buy basic items. The releasing of these funds depends on the level of autonomy Da Afghanistan Bank (DAB) has under the current regime to manage these funds. DAB controls the money supply, oversees the banking and financial sector, and issues domestic currency. The future of the frozen assets will be decided by two Afghan economists and a pair of representatives from the U.S. and Swiss governments. The U.S. government maintains that DAB has not met the conditions for disbursements but has not shared the results of a U.S.-funded audit of the bank with the Afghan Fund’s board. Dr. Shah Mehrabi, a board member of the Afghan Fund and member of the Supreme Council of the Central Bank of Afghanistan, claims that laws governing DAB have not changed since Taliban’s takeover of Afghanistan. In February 2023, USAID supported a third-party assessment of DAB. The Afghan Fund has plans to create a new channel for public input through an international advisory committee, which will be made of Afghans and citizens of other countries. The fate of billions of dollars and millions of Afghans in need of immediate economic aid depends on the cooperation of governments in Washington D.C., Bern, and Kabul. Read More: The Diplomat
Infographic
Billions of dollars from humanitarian aid and rising trade with Asian neighbors has propelled Afghanistan’s currency to the top of global rankings this quarter, an unusual spot for a poverty-stricken country. Read More: Bloomberg
Fact of the Week!!
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Bangladesh De/Cypher
23 Oct, 2023
Top Stories From The Week: Bangladesh
International Outlook
The upcoming election for the chief of the World Health Organization’s South-East Asia Region Office (SEARO) has become contentious due to Bangladesh’s nominee, Saima Wazed, being Prime Minister Sheikh Hasina’s daughter. Wazed, a licenced school psychologist and mental health advocate, has been accused of nepotism. While she emphasises her endorsements from public health officials, experts raise concerns about her candidature, highlighting the influence of her political connections. Some believe Nepal’s nominee, Shambhu Prasad Acharya, a WHO veteran, is more qualified, putting India, a key player, in a difficult position in the election. Read more: Nikkei Asia
On Monday, Arindam Bagchi, the spokesperson for India’s external affairs ministry, stated that the people of Bangladesh will determine the process of their next national election. He emphasised India’s support for a stable and democratic government in Bangladesh, emphasising India’s respect for the Bangladeshi people’s democratic choices. Bagchi clarified that India’s relationship with Bangladesh is with the country as a whole, not with any particular political party. Read more: The Daily Star
On Thursday, the European Union (EU) announced that it would send a four-person observer team to Bangladesh’s 12th parliamentary elections. The EU observers are expected to arrive in Bangladesh on November 21 and stay for approximately two months. This decision follows an earlier announcement by the EU that it would not deploy a full-fledged election observation mission due to uncertainty about meeting necessary conditions during the elections. Read more: Rising BD
On Thursday, US Ambassador to Bangladesh Peter Haas met with members of the ‘Media Freedom Coalition’ and senior editors from major Bangladeshi news outlets to express his support for free and independent media. The United States Embassy in Dhaka emphasised the importance of press freedom in preserving liberty and democracy. Read more: The Financial Express
On Saturday, Bangladesh observed a one-day state of mourning in honour of Palestinians killed in recent Israeli attacks. Flags were flown at half-mast, and special prayers were requested in mosques and places of worship. Hasina strongly condemned the Israeli attacks and demanded an immediate end of the repression and during the 47th session of the D-8 Commission in Dhaka, the D-8 commissioners, including Bangladesh’s Foreign Secretary Masud Bin Momen, agreed to adopt a joint declaration expressing unwavering solidarity and support for the Palestinians. Read more: Dhaka Tribune
National Politics
On Saturday, Salman F Rahman, the Prime Minister’s Private Industry and Investment Adviser, criticised the Bangladesh Nationalist Party (BNP), claiming that the party avoids discussing the Palestinian issue out of fear of upsetting America. Rahman accused the BNP of being self-serving and remaining silent about the killings in Palestine. Read more: Daily Ittefaq
On Sunday, Prime Minister Sheikh Hasina warned that certain Western powers are plotting to install a puppet government in Bangladesh, allowing them to more easily control the country. She expressed her concerns at an Awami League Parliamentary Party meeting, stating that these powers intend to keep both the Awami League and the BNP out of the elections, resulting in a subordinate government. Read more: Daily Naya Diganta
On Sunday, Bangladesh’s ruling Awami League accused the Left Democratic Alliance of pushing the country into conflict in order to retain power. The alliance demanded that the Awami League government resign immediately and that elections be held under the supervision of a non-partisan government. Leaders at the meeting chastised the government for ignoring calls for non-partisan elections and for suppressing opposition voices through legislation such as the Digital Security Act. Read more: Prothom Alo
On Sunday, Peter Haas, the US Ambassador to Bangladesh, met with Home Minister Asaduzzaman Khan Kamal and inquired about possible road closures leading up to the BNP’s general meeting in Dhaka on October 28. The Home Minister confirmed that the government had no plans to block roads and expressed hope that the BNP’s programme would be peaceful. Read more: Protidiner Sangbad
On Sunday, the High Court of Bangladesh published on their website that had ruled that individuals sentenced to more than two years in a corruption case filed by the Anti-Corruption Commission (ACC) are constitutionally ineligible to run in the National Assembly elections. This decision was made by a bench comprised of Justices Md. Nazrul Islam Talukder and KM Hafizul Alam. Read more: The Daily Ittefaq
Business and Economy
According to the central bank, foreign direct investment (FDI) in Bangladesh fell by more than 7.0% to $3.2 billion in FY2023. This drop was attributed to a 40.91% drop in equity investments and a 40.14% drop in intra-company loans. Existing foreign-owned companies increased their reinvestment by nearly 16%. During this time, disinvestment, or asset sales, increased as well. The top contributors were the United Kingdom and the Republic of Korea, with non-export processing zones receiving the highest net FDI inflows. Read more: The Financial Express
Bangladesh anticipates receiving the second tranche of the IMF’s $4.7 billion loan programme in December, which is expected to be around $681 million. Bangladesh has agreed to tighten monetary policy, implement stricter fiscal policies, and increase exchange rate flexibility in order to meet the conditions. The IMF staff mission excused missed targets due to significant progress in structural reforms and reduced the mandatory net international reserves targets. Read more: The Daily Star
Workers in Bangladesh’s readymade garment (RMG) industry were outraged after representatives from owners proposed a monthly minimum wage of Tk 10,400 ($123) at a Minimum Wage Board meeting. Given the high inflation, workers had demanded Tk 23,000, but the proposed figure falls far short. Both parties agreed to reduce the grade from seven to five in the new wage structure, which will go into effect in January. Read more: Business Post BD
According to The LightCastle Business Confidence Index 2022-23, the ongoing Russia-Ukraine war has had a significant impact on nearly 70% of businesses in Bangladesh. Rising raw material costs, a lack of favourable policy implementation, issues with finance accessibility, weak domestic demand, and inefficient human resources were cited as major concerns. The survey, which took place from March to June, included 167 industry leaders from 25 different industries. Read more: Bangi News
According to the Mujib Climate Prosperity Plan (MCPP) 2023, the transition from fossil fuels to renewable energy in Bangladesh is expected to create approximately 37,220 jobs by 2030, including 8,919 new positions. These findings were revealed in a report presented at a seminar by the Centre for Policy Dialogue (CPD). Jobs in roles such as energy technicians, grid engineers, energy analysts, and green building designers will be created as a result of the shift, while jobs in the fossil fuel industries will be lost. Read more: Business Post BD
Society
Bangladesh has seen an increase in dengue cases, with 2,056 new infections and nine deaths reported in a single day, bringing the total number of cases and deaths this year to 255,046 and 1,255, respectively. During this time, Dhaka, the capital, recorded 500 new cases and two deaths, indicating a severe outbreak. There are currently 7,677 dengue patients being treated in hospitals across the country, with 2,189 of them in Dhaka. Read more: BD News 24
According to the Bangladesh Road Transport Authority (BRTA), 70% of professional drivers suffer from various health issues such as high blood pressure, diabetes, blurred vision, and smoking-related complications. This concerning trend endangers road safety and frequently results in major accidents. To ensure road safety, the BRTA chairman advocated for social awareness campaigns as well as stricter enforcement of traffic rules. Read more: The Financial Express
Rohingya Refugee Crisis
The United Kingdom has committed an additional €4.5 million in aid to help Rohingya refugees and host communities in Bangladesh. Additional funds will be allocated to NGOs and the UN Population Fund (UNFPA) to support protection services, gender-based violence prevention, and reproductive health services. Since 2017, the UK has provided over £370 million to Rohingya refugees and host communities in Bangladesh and Myanmar’s Rakhine State, as part of its commitment to finding a long-term solution. Read more: The Financial Express
On Tuesday, Afreen Akhter, a visiting US government official, stressed that there should be no forcible repatriation of Rohingyas to Myanmar due to insufficient conditions for their return, citing a lack of humanitarian access and limited settlement options. She praised Bangladesh for hosting a million refugees and reaffirmed the United States’ commitment to assisting the Rohingya community, which has received $2.2 billion since 2017. Read more: The Daily Star
Filippo Grandi, the UN High Commissioner for Refugees, has urged the international community to pay attention to the Rohingya crisis and its impact on Myanmar’s displaced population and host country Bangladesh. In the midst of international crises, Grandi emphasised the importance of not ignoring existing humanitarian issues, emphasising the risk of neglect negatively affecting the Rohingya and their host countries. Read more: Nikkei Asia
Women In Bangladesh
On Tuesday, Prime Minister Sheikh Hasina inaugurated the Joyeeta Tower in Dhanmondi, Bangladesh’s capital, to promote women’s economic empowerment. The tower, which cost Tk168 crore to build, provides state-of-the-art infrastructure facilities for female entrepreneurs. Joyeeta Tower aims to involve women entrepreneurs in various business ventures under the Joyeeta brand, fostering economic independence and providing universal accessibility for their products and services. Read more: The Business Standard
iFarmer, a Bangladesh-based company, is empowering women farmers, who make up 58% of the country’s agricultural workforce, by providing access to finance, training, and market information. Farmers can use their Sofol app to get low-cost, collateral-free financing, agricultural advice, insurance advisories, and market alerts. The app also connects farmers with retail investors, allowing anyone to invest in specific farms. Their initiatives, which are supported by organisations such as UNCDF and FAO, demonstrate the potential of technology in transforming the agricultural landscape for small-scale farmers and empowering women in Bangladesh. Read more: ESCAP
In a pilot project launched by the World Food Programme (WFP) in Bangladesh’s Kurigram district, women farmers on Char Borovita, a sand island in the Brahmaputra River, are growing drought-tolerant pumpkins to combat the effects of climate change. The initiative combines disaster management training, climate insurance, and entrepreneurship support. The project provides families with early warning information, cash payments before floods, and climate risk insurance. Women participants receive entrepreneurship training as well as startup capital, allowing them to diversify their businesses. Read more: Relief Web
Views and Analysis
How many rivers are lost and villages destroyed for the sand of urbanisation?
Illegal sand mining, driven by the demand for sand due to urbanisation, poses significant threats to rivers and communities in Bangladesh. Despite existing regulations, powerful individuals often flout restrictions, leading to erosion, destruction of structures, and displacement of villagers. Incidents of sand mining occurring beyond specified boundaries, often with political patronage, endanger important facilities and agricultural lands. A recent survey revealed illegal sand extraction points in various rivers, implicating local representatives and influential figures. Read more: Prothom Alo
Infographic
Except for Pakistan, Bangladesh has the lowest mobile connectivity in South Asia, according to the GSMA Mobile Connectivity Index for 2022. While Bangladesh improved slightly, scoring 51.3 out of 100, it is hampered by affordability issues, scoring only 43.2. Bangladesh’s high taxes, difficult licencing system, and low investment, particularly in state-owned operator Teletalk, were highlighted in the report.
Fact of the Week!!
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