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Over 10 million people in Pakistan are at risk of poverty, 95 million struggling for food

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Pakistan has been emerging from a period of absolute volatility that saw the country teeter on the edge of default and now the World Bank has reported that over 10 million people are at risk of poverty due to high inflation and low growth. Pakistan has been scrambling with a fragile economic situation for many years now and saw default twice, first in 2022, and second in 2023 when inflation skyrocketed to a historic 38 percent in May of 2023.

At the same period of time, Pakistan failed to get support from the IMF program and it was a failure for the country’s officials who couldn’t manage to deal with the International Monetary Fund IMF. Through this period four finance ministers come and go, and each other blames his predecessor for leaving behind a mess where only the masses are being affected the most.

At the same, Pakistan faced several political disputes that directly affected its economy, and further deteriorated with some sanctions imposed by the IMF. Political uncertainty, following deadly protests and the general elections, had left Pakistan at the brink of economic collapse with now the government lost its way to overcome them.

The World Bank has further painted a grim economic picture of Pakistan in its recent report, saying that over 10 million people are at risk of descending into poverty. The World Bank’s biannual Pakistan Development Outlook report indicated that the cash-strapped Pakistan seemed to miss almost all major macroeconomic targets.

Food insecurity in Pakistan increasing

The report said the country is anticipated to fall short of its primary budget target, remaining in deficit for three consecutive years, contrary to the IMF’s stipulations mandating a surplus.

The report also hinted at food insecurity as Pakistan’s GDP growth is projected to be 1.8 pc and inflation is 26 pc. “Approximately 98 million Pakistanis are already below poverty line while 10 million more are at risk of slipping into poverty due to high inflation and limited wage growth in construction, trade, and transportation,” the report said.

According to the report, Pakistan will continue to face liquidity issues in the medium term due to trade deficit and limited access to external financing, says the report.

“In the absence of major and sustained economic reforms, Pakistan is expected to continue to face foreign exchange liquidity issues due to the trade deficit and limited access to external financing,” the report says.

The increase in prices is driven by domestic gas, electricity, and fuel tariff adjustments resulting in significant increase in domestic energy prices, reveals the report.

95 million Pakistanis struggling to get their basic needs

In September 2023, the World Bank reported that over 12.5 million fell below the poverty line, bringing the total number of 95 million people who are struggling to get their basic needs met. Pakistan also has the lowest per capita income in South Asia and also highest out-of-school kids in the world. Meanwhile, Pakistani currency dropped its value against dollar on a daily basis and on Thursday US currency had gained six rupees against the Pakistani currency in the interbank market.

At the moment poverty, unemployment and folding of industries are considered major economic issues in Pakistan. Almost all resources are shrinking whereas maximum receipts are being spent on debt returnees and rescheduling of loans.

Government bodies, especially political civilians are helpless. Military establishment becoming wealthy and healthy as it made helpless and powerless the civilians and politicians as well. The only way is curtailing the non development budget, especially slashing the defense budget.

ASIA

Syria will not follow Afghanistan’s Taliban model of governance

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In an astonishing statement, Ahmed Shará, also known as Abu Mohamad Jolani, the leader of the Hayat Tahrir al-Sham (HTS) said that he will allow the girls to go to schools and will not turn Syria like Afghanistan under the rule of the Taliban.

Jolani, the de facto ruler of Syria, said that he will distance himself from the Taliban’s strict policies on women’s rights, and said that Syria will not follow the Taliban’s mode of governance.  

Jolani, who brought down the government of Bashar al-Assad and also widely welcomed by the Taliban, said that he believes in the education of women and girls and will not make Syria like Afghanistan.

“Syria is a diverse society with various ideas, unlike Afghanistan, which is more tribal. The Afghan model cannot be applied here,” Jolani told a BBC reporter.

Jolani says that Syria is a diverse society with various ideas, unlike Afghanistan, which is more tribal.

Jolani’s comment came when the Taliban congratulated the HTS-led victory by Jolani over Assad’s regime after years of fighting. The Afghan Foreign Ministry celebrated Jolani’s victory through a statement and hoped Jolani can bring peace and stability in the country.

“It is hoped that the power transition process is advanced in a manner that lays the foundation of a sovereign and serve-oriented Islamic government in the line with the aspiration of the Syrian people; that unifies the entire population without discrimination and retribution through adoption of a general assembly; and a positive foreign policy with world countries the safeguard Syria from a threat of negative rivalries of foreign actors and creates conditions for the return of millions of refugees,” the statement by Taliban Foreign Ministry.

However, Jolan’s position on the rights of women and girls is in great contrast with the current view of the Taliban leadership. Women and girls have been banned from education and work since the return of the Taliban in August 2021, following the collapse of the Republic System and withdrawal of the US troops from Afghanistan. Girls and women are even banned from medical institutions and visiting public spaces.

Jolani says he has a plan to create a government based institution and a council chosen by the people. 

The situation got worse when the Taliban’s Ministry for the Promotion of Virtue and Prevention of Vice called women’s voices “immodest” compounding their exclusion from public life. This year, it has been marked as three years since girls were banned from pursuing education over sixth grade. Besides that, on December 20, 2022, the Taliban’s Ministry of Higher Education announced that women would be barred from attending public and private universities.    

In an interview with CNN, Jolani said that he has a plan to create a government based on institutions and a “council chosen by the people.”

“When we talk about objectives, the goal of the revolution remains the overthrow of this regime. It is our right to use all available means to achieve that goal,” said Jolani.

“The seeds of the regime’s defeat have always been within it… the Iranians attempted to revive the regime, buying it time, and later the Russians also tried to prop it up. But the truth remains: this regime is dead.”

Moreover, he also said the Syrian people are the “rightful owners” of the country after the ouster of Assad, and declared a “new history” has been written for the entire Middle East.

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ASIA

Yoon summoned again for questioning on treason charges

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A joint law enforcement team investigating South Korea’s martial law case announced on Friday that it has issued a second summons to ousted President Yoon Suk Yeol, requesting his presence for questioning next week. The inquiry concerns his alleged involvement in the failed implementation of martial law.

The team has scheduled the questioning for 10:00 a.m. next Wednesday at the Corruption Investigation Office for Senior Officials (CIO) headquarters in Gwacheon, located just south of Seoul. This marks the second summons after Yoon refused to cooperate with the initial notice earlier this week.

The decision to hold the questioning on a public holiday appears to be a strategic move by the CIO, likely aimed at addressing security concerns. The office confirmed that the summonses were delivered via express mail and electronically to both Yoon’s residence and the presidential office in Yongsan. Notably, after Yoon’s team refused to accept the first subpoena, the CIO opted against delivering the documents in person for this round.

The investigation focuses on Yoon’s role in the December 3 martial law declaration, which he revoked following a vote in the National Assembly. If Yoon continues to disregard the summons without valid justification, the CIO may seek a court order to detain him for up to 48 hours.

Yoon faces allegations of sedition and abuse of office, charges that have gained traction since his dismissal by parliament last Saturday. His suspension from office remains in effect pending a decision by the Constitutional Court, which will determine whether he is permanently removed or reinstated.

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ASIA

Xi Jinping champions economic diversification during Macau visit

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During a three-day visit to Macau commemorating the 25th anniversary of its return to Chinese sovereignty from Portugal, President Xi Jinping emphasized the importance of economic diversification and maintaining the “one country, two systems” framework.

Speaking at the swearing-in ceremony for Macau’s new Chief Executive Officer, Sam Hou-fai, Xi urged the administration to make economic diversification the city’s primary focus. Sam, the fourth leader since the 1999 handover and the first mainland-born Chinese official to hold the position, is expected to align closely with Beijing’s objectives to reduce Macau’s reliance on gambling. The gambling industry, which accounts for approximately 80% of Macau’s tax revenue, has been the cornerstone of its rapid economic growth in recent years.

“Macau should prioritize proper economic diversification,” Xi stated, calling for enhanced policy support and investment in emerging sectors. He also reiterated the significance of the “one country, two systems” principle, stressing its role in ensuring the city’s “prosperity and stability” for the long term.

Xi’s visit included stops at the Macau University of Science and Technology, where he explored laboratories focusing on traditional Chinese medicine and planetary science. He also attended a cultural performance at the Macau Dome and met with local stakeholders, according to Chinese state media. His trip marked a shift in tone, with Anthony Lawrence, founder of Intelligence Macau, noting that it was the first time Xi publicly praised Macau for its progress rather than delivering critiques or instructions.

Since the liberalization of Macau’s gaming monopoly in 2002, the city has attracted significant foreign investment, including from prominent US casino operators such as Las Vegas Sands, MGM, and Wynn Resorts. However, the economy struggled during the COVID-19 pandemic due to travel restrictions, and recovery has only recently begun.

On Friday, Macau’s casinos were bustling with visitors, while non-gaming initiatives like a stamp exhibition co-organized by MGM China and Beijing’s Palace Museum showcased the city’s efforts to diversify its offerings.

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