World

Pakistan bans import of luxury items to boost economy

Pakistan’s new government on Thursday said it would ban the import of over 30 luxury items including cars and fruit jams in an austerity move to help boost the country’s faltering economy.

Cash-strapped Pakistan has been hit by a storm of crippling debt, dwindling foreign currency reserves and galloping inflation.

The national currency hit a historic low on Thursday, with 200 rupees fetching $1.

“My decision to ban (the) import of luxury items will save the country precious foreign exchange,” Prime Minister Shehbaz Sharif tweeted.

The move was an effort to target the country’s elite, with the banned goods including mobile phones and cars — which make up the largest share of import bills on the list — as well as cosmetics and jams.

“We will be able to save $6 billion by imposing a ban on import of the luxury items,” information minister Marriyum Aurangzeb said at a press conference, adding that the ban would be effective immediately. 

“The decision will give a boost to the local economy and industry”.

However, business leaders said the country must seek consent from the World Trade Organization, which regulates international trade. 

“I think it is a prudent step by the government… it would help save much needed foreign exchange to pay off our international trade debts,” said Khalid Tawab, the former senior vice president of the Pakistan Chamber of Commerce.

“The government has not declared a financial emergency yet, but that is the situation we are facing, and so under such circumstances the WTO could be persuaded to relax its rules.”

Pakistan’s current trade deficit stands at $39.2 billion.

Former leader Imran Khan was ousted in a no-confidence vote last month, largely as a result of failing to reverse the soaring cost of living and prices of basic goods.

The announcement comes as Pakistan officials are locked in negotiation with the IMF in the Qatari capital Doha over the release of funds as part of an agreed loan programme. 

A six billion dollar IMF bailout package signed by former prime minister Imran Khan in 2019 has never been fully implemented because his government reneged on agreements to cut or end some subsidies and to improve revenue and tax collection.

Islamabad has so far received $3 billion, with the programme due to end later this year.

Officials are seeking an extension to the programme through to June 2023, as well as the release of the next tranche of $1 billion.

A major sticking point is likely to be over costly subsidies — notably for fuel and electricity — and Finance Minister Miftah Ismail said he wants the two sides to “find a middle ground”.

Pakistan bans import of luxury items to boost economy

Pakistan’s new government on Thursday said it would ban the import of over 30 luxury items including cars and fruit jams in an austerity move to help boost the country’s faltering economy.

Cash-strapped Pakistan has been hit by a storm of crippling debt, dwindling foreign currency reserves and galloping inflation.

The national currency hit a historic low on Thursday, with 200 rupees fetching $1.

“My decision to ban (the) import of luxury items will save the country precious foreign exchange,” Prime Minister Shehbaz Sharif tweeted.

The move was an effort to target the country’s elite, with the banned goods including mobile phones and cars — which make up the largest share of import bills on the list — as well as cosmetics and jams.

“We will be able to save $6 billion by imposing a ban on import of the luxury items,” information minister Marriyum Aurangzeb said at a press conference, adding that the ban would be effective immediately. 

“The decision will give a boost to the local economy and industry”.

However, business leaders said the country must seek consent from the World Trade Organization, which regulates international trade. 

“I think it is a prudent step by the government… it would help save much needed foreign exchange to pay off our international trade debts,” said Khalid Tawab, the former senior vice president of the Pakistan Chamber of Commerce.

“The government has not declared a financial emergency yet, but that is the situation we are facing, and so under such circumstances the WTO could be persuaded to relax its rules.”

Pakistan’s current trade deficit stands at $39.2 billion.

Former leader Imran Khan was ousted in a no-confidence vote last month, largely as a result of failing to reverse the soaring cost of living and prices of basic goods.

The announcement comes as Pakistan officials are locked in negotiation with the IMF in the Qatari capital Doha over the release of funds as part of an agreed loan programme. 

A six billion dollar IMF bailout package signed by former prime minister Imran Khan in 2019 has never been fully implemented because his government reneged on agreements to cut or end some subsidies and to improve revenue and tax collection.

Islamabad has so far received $3 billion, with the programme due to end later this year.

Officials are seeking an extension to the programme through to June 2023, as well as the release of the next tranche of $1 billion.

A major sticking point is likely to be over costly subsidies — notably for fuel and electricity — and Finance Minister Miftah Ismail said he wants the two sides to “find a middle ground”.

Trawling Iraq's threatened marshes to collect plastic waste

Iraq’s vast swamplands are the reputed home of the biblical Garden of Eden, but the waterways are drying out and becoming so clogged with waste their very existence is at risk, activists warn.

“For 6,000 or 7,000 years the inhabitants have protected the marshes,” said Raad al-Assadi, director of Chibayish Organisation for Ecotourism, who this week began work on a boat to try to clear some of the worst areas of trash.

“But we have reached a stage where the marshes are threatened with extinction.”

The swamps, nestled between the Tigris and Euphrates rivers, are one of the world’s largest inland deltas.

The wetlands barely survived the wrath of dictator Saddam Hussein, who ordered they be drained in 1991 as punishment for communities protecting insurgents and to hunt them down.

But after Saddam was toppled, Iraq pledged to preserve the ecosystem and provide functional services to the marshland communities, and they were inscribed as a UNESCO World Heritage site in 2016 both for their biodiversity and their ancient history.

Tourists have returned, but one of the main visible sources of pollution in the area are visitors who throw away their “plastic waste”, said Assadi.

– ‘Respect our land’ –

After decades of brutal war, Iraq lacks structures for the collection and disposal of waste, and 70 percent of its industrial waste is dumped directly into rivers or the sea, according to data compiled by the United Nations and academics.

A team of 10 joins the boat, cruising the maze of narrow waterways to collect the piles of plastic bottles filling the channels, and erecting signs urging people to “respect our land”, and not to litter.

But it is far from the only threat: Iraq’s host of environmental problems, including drought and desertification, threaten access to water and livelihoods across the country.

The UN classifies Iraq “as the fifth most vulnerable country in the world” to climate change, having already witnessed record low rainfall and high temperatures in recent years.

The water level of the marsh is falling, a phenomenon accentuated by repeated droughts and by the dams built upstream of the two rivers, among Iraq’s upstream neighbours, Turkey and Iran.

“There is a threat to this ecosystem, which has significant biodiversity”, said French ambassador Eric Chevallier, at the launch Thursday of the French-funded boat project.

Chevallier called for “much greater mobilisation, Iraqi and international, to meet all the challenges” that a heating planet is causing.

A string of sandstorms in recent weeks have blanketed Iraq, with thousands needing medical care due to respiratory problems.

The Middle East has always been battered by dust and sandstorms, but they have become more frequent and intense in recent years.

The trend has been associated with overuse of river water, more dams, overgrazing and deforestation.

The rubbish collectors are not the only unusual team in the marshes: earlier this year, the Iraqi Green Climate Organization launched a veterinary ambulance to help farmers treat their water buffalo.

McDonald's reaches deal to sell Russia business

McDonald’s has reached a deal to sell its Russia business to Russian businessman Alexander Govor, a licensee of the chain, the restaurant company said Thursday.

The announcement comes three days after McDonald’s announced it was exiting the Russian market in the wake of the Ukraine invasion.

Govor agreed to retain employees for at least two years and fund exiting liabilities to suppliers, landlords and utilities, McDonald’s said.

The price of the transaction was not disclosed. 

McDonald’s said Monday it would sell the entire Russian portfolio of 850 restaurants employing 62,000 workers, citing the humanitarian crisis in the wake of the Ukraine invasion, which has also sparked international sanctions. 

“The business in Russia is no longer tenable, nor is it consistent with McDonald’s values,” the company said in a statement that announced plans to take a one-time charge of $1.2 billion to $1.4 billion to write off the investment.

Govor, a licensee since 2015, has operated 25 restaurants in Siberia. He is co-founder of Neftekhimservice, a refining company, and a board member of another firm hat owns the Park Inn hotel and private clinics in Siberia.

Life sentence requested for Russian soldier in Kyiv war crimes trial

Ukrainian prosecutors on Thursday requested a life sentence for the first Russian soldier on trial for war crimes since the start of Moscow’s invasion, AFP journalists in the courtroom reported.

The prosecution asked the judge to sentence the 21-year-old Russian army sergeant to “life imprisonment” for killing 62-year-old civilian Oleksandr Shelipov in the first days of the Russian offensive. 

The request came just a day after the landmark trial opened and as two other Russian soldiers were in court Thursday for crimes against civilians.

Kyiv says it has opened thousands of war crimes cases since Moscow launched its invasion.

In court, Russian serviceman Vadim Shishimarin asked the victim’s widow to forgive him and described how he shot the man dead in the opening days of Russia’s invasion.

Addressing his victim’s widow, Kateryna Shelipova, Shishimarin said: “I know that you will not be able to forgive me, but nevertheless I ask you for forgiveness.” 

He said he shot Shelipov as he and several other Russian soldiers were retreating to rejoin their units in Russia, saying another soldier had put pressure on him to carry out the killing. 

– ‘I shot him at short range’ –

The soldiers found a civilian car, a Volkswagen, which they hijacked to “get to where our army was and go back to Russia”, Shishimarin said.  

“As we were driving, we saw a man. He was talking on the phone. He said he would give us up.”

Shishimarin said another soldier in the car, who he said was not his commander and whom he called an “unknown” soldier, “told me to shoot”. 

“He started to say in a forceful tone that I should shoot,” he told the court.

“He said I would be putting us in danger if I didn’t. I shot him at short range. It killed him.”

Judges questioned him in Ukrainian, with an interpreter translating for Shishimarin — who is from the Siberian region of Irkutsk — into Russian. 

The killing took place near the northeastern village of Chupakhivka on February 28, four days into Moscow’s invasion.

The soldiers then took a civilian captive as they retreated into the forest, Shishimarin said, claiming they did not harm him.

The Russians then “voluntarily” gave themselves up to Ukrainian forces.

– ‘What did you come here for?’ –

The youthful-looking soldier, dressed in a grey and blue hoodie, looked towards the ground with his head leaning on the glass defence box where he was held as Kateryna Shelipova testified on her husband’s death.

“What did you come here for, to free us from what?” Shelipova asked the soldier, referring to Moscow’s claims that its troops are liberating Ukrainian territories.

“What did my husband do to you?” she said, adding she had “heard the shot” while getting water from a well.

She then saw a car and “a young man in it with a rifle. I remember him well”, she said, referring to Shishimarin.

“Five minutes later I saw my husband. He was dead with a shot in his head. I started screaming very loudly.”

She said the incident took place around 11.00 am. 

“My husband was in civilian clothing. In a coat and trousers,” she said.

Another captive Russian soldier who was in the car, 20-year-old Ivan Matysov, told the court that the third unknown serviceman in the car “shouted in a commanding tone” to Shishimarin to shoot the civilian.

Both soldiers — Matysov and Shishimarin — said the third man was not a more senior officer, suggesting Shishimarin was not obliged to follow the order to shoot.

The Kremlin on Wednesday said it was not informed of Shishimarin’s case. His lawyer said he had not had any contact with Russian officials.

Global stocks slump on recession fears

Global markets took a beating Thursday after Wall Street suffered one of its worst batterings in two years over recession fears after decades-high inflation.

Downcast earnings reports from retailers have exacerbated worries about consumer resilience and experts sounded gloomy.

“Inflation is catching up and profit margins are taking a hit. Soon enough though, those higher costs will continue to be passed on and consumers will stop dipping into savings and start being more careful with their spending,” said Craig Erlam, senior market analyst at OANDA.

“The question is whether we’re going to see a slowdown or a recession,” he said.

The Nasdaq and Dow fell around one percent in early trade while European markets were down around two percent in afternoon deals after leading Asian indices closed in the red.

Among the biggest losers were tech giants after Chinese giant Tencent reported lacklustre profits, fuelling wider concerns over China’s economic outlook.

Tencent shares plunged more than eight percent in early trading before paring losses slightly, a day after it posted its slowest revenue gain since going public in 2004.

Among other tech titans, Alibaba dropped more than six percent.

“Sentiment… is highly negative as traders and investors are largely concerned about an economic downturn and soaring inflation,” said AvaTrade analyst Naeem Aslam.

On Wall Street Wednesday, all three major US indices dived, with the Dow sinking more than 1,150 points or 3.6 percent.

The Nasdaq plunged 4.7 percent by the close.

North American-focused big-box retailer Target plunged about 25 percent in value after group earnings missed expectations despite higher sales.

The company reported higher operating costs in results that echoed those of bigger rival Walmart.

The retailers said consumers were avoiding discretionary purchases as prices for food, gasoline and other household staples jump.

In some of his most hawkish remarks to date, Federal Reserve Chair Jerome Powell this week said the US central bank would raise interest rates until there is “clear and convincing” evidence that inflation is in retreat. 

But higher borrowing costs increases debt, heaping further pressure on consumers and businesses.

The United States is facing the fastest inflation in four decades, as is Britain, causing the Bank of England to also raise interest rates.

– Key figures at around 1330 GMT –

London – FTSE 100: DOWN 2.3 percent at 7,264.51 points

Frankfurt – DAX: DOWN 1.7 percent at 13,760.82 points

Paris – CAC 40: DOWN 1.9 percent at 6,228.51 points

EURO STOXX 50: DOWN 2.1 percent at 3,611.07 points

Hong Kong – Hang Seng Index: DOWN 2.5 percent at 20,120.60 (close)

Shanghai – Composite: UP 0.4 percent at 3,096.96 (close)

Tokyo – Nikkei 225: DOWN 1.9 percent at 26,402.84 (close)

New York – Dow: DOWN 1.1 percent at 31,490.07

Brent North Sea crude:  DOWN 2.4 percent at $ 106.63 per barrel

West Texas Intermediate: DOWN 3.6 percent at $ 105.91 per barrel

Euro/dollar: UP at $1.0550 from $1.0479

Pound/dollar: UP at $1.2459 from $1.2346

Euro/pound: DOWN at 84.65 pence from 84.88 pence

Dollar/yen: DOWN at 127.13 yen from 128.58

Ukraine war puts Indian diamond polishers out of work

India’s huge diamond-polishing industry has furloughed around 250,000 of its roughly two million workers because of sanctions on Russia hitting supplies, a trade union said Thursday.

The South Asian nation cuts and polishes 90 percent of the world’s diamonds, with Russian diamond miners such as Alrosa traditionally accounting for 30-40 percent of India’s imported rough gems.

“This problem has started ever since the Russia-Ukraine war began,” Ramesh Zilariya, president of the Diamond Workers’ Union Gujarat, told AFP.

“Western countries like the United States and Europe have stopped accepting Russian diamonds that have been polished in India,” he said.

Workers were furloughed this month in the western state of Gujarat, the main hub of the industry, Zilariya added, as companies struggle with cash flow and supply disruptions.

Traders say Russian supply has fallen short since Western sanctions forced Moscow out of the SWIFT cross-border payments system, plunging the supply chain into uncertainty.

“Supply is still disrupted and payments are mostly on hold,” Sripal Dholakia, director at the All India Gem and Jewellery Domestic Council, told AFP.

Dholakia said imports from Russia are “not adequate” at present, and Indian traders are facing higher bank charges while making direct payments in rupees or rubles.

An industry pitch to the Indian government to make future payments via India’s Unified Payments Interface system has gone unanswered.

India exported cut and polished diamonds worth $24 billion in the year ended March 31, data from the Gems and Jewellery Export Promotion Council showed.

Top export destinations included the United States, Hong Kong and the United Arab Emirates.

Many Western buyers are now refusing to accept diamonds sourced in Russia for fear of violating sanctions.

“They have started asking for a bill which specifies that the goods we are supplying are not Russian,” a Mumbai-based jeweller told AFP on condition of anonymity.

Prices too have turned volatile.

“Fifteen to 20 percent instability is a big thing for us because we work on a margin of two to five percent… It becomes difficult,” the jeweller said.

The Gujarat diamond union has asked the state government to provide financial aid and re-skilling training to out-of-work polishers to help tide over the crisis.

“(We) asked the government to support workers in the diamond industry because this issue is not going to be resolved in one month,” Zilariya said.

“This issue will go on for at least five, six or seven months.”

India has called for a cessation of violence but has stopped short of condemning Russia’s invasion of Ukraine.

The two countries have historically had close ties, with Moscow supplying most of New Delhi’s arms.

Bush gaffe on 'unjustified' war draws Iraqi ire

An embarrassing slip of the tongue by former US president George W. Bush may have drawn laughter from his American audience, but it raised the ire of Iraqis.

In a speech Wednesday evening in Dallas about Russia’s war on Ukraine, Bush called the invasion of Iraq, which he himself ordered, “unjustified and brutal” — before quickly correcting himself.

The 2003 US-led invasion of Iraq toppled dictator Saddam Hussein and ushered in one of the bloodiest periods in the country’s modern history, marked by sectarian warfare and the rise of jihadists.

Between 2003 and 2011, when the US withdrew its troops, more than 100,000 civilians were killed, according to the Iraq Body Count tracker. The invasion cost the lives of nearly 4,500 Americans.

But on Wednesday it was the war in Ukraine that Bush talked about during an event organised by his foundation.

“The decision of one man to launch a wholly unjustified and brutal invasion of Iraq, I mean of Ukraine,” he said in a speech, drawing laughter from the audience.

“Anyway — 75,” he added, referring to his own age, to another burst of laughter.

Video footage of the gaffe has since gone viral online, with one post on Twitter having been viewed more than 14 million times in less than half a day.

It was also picked widely up by Arab media, stoking anger among Iraqis.

“The spectre of Iraq’s invasion and destruction haunts Bush Jr. His subconscious exposed it when it took over his tongue,” Iraqi journalist Omar al-Janabi tweeted.

“Yes it is a brutal and unjustified invasion which will remain your worst nightmare”, he added.

Iraqis also took to Facebook to criticise the former US president.

“The moment of truth has come — the invasion of Iraq is a lifelong nightmare that plagues your conscience,” Hamza Qusai wrote.

“The crime of your occupation of Iraq and its destruction will remain a nightmare that haunts your sleep and torments your dead criminal consciences,” added Nahedh al-Tamimi.

The US-led invasion of Iraq was launched on March 20, 2003 after accusations that the Saddam regime had weapons of mass destruction. None were ever found.

Hollywood star Russell Crowe quizzes Bangkok governor candidates

Hollywood star Russell Crowe quizzed candidates for Bangkok’s governor election campaign in a cameo television appearance on Thursday, almost a year after his tweets on visiting the capital delighted Thais.

The megapolis is preparing for its first governor poll in almost a decade on Sunday in the first significant election since youth-led pro-democracy rallies in 2020.

The Australian actor — who regaled his 2.7 million Twitter followers with his Bangkok adventures while filming Vietnam War-era drama “The Greatest Beer Run Ever” — beamed into Thailand’s Channel 7 daily current affairs programme “The Discussion”.

“Sa wat dee krap,” Crowe said, using the Thai greeting for hello and bowing with his palms, before launching into his questions for the candidates.

He queried them on plans to mitigate the regular threat of flooding in Bangkok, and make the city more “friendly to tourists”.

He also asked how they would make “beautiful Bangkok even more beautiful?”

During his time in the city, Crowe photographed the notorious tangle of overhead cables — which led to Prime Minister Prayut Chan-O-Cha ordering local officials to fast-track efforts to put the wiring underground.

“What are your thoughts on visible power lines?” he also asked the candidates.

The Thai government said Crowe’s social media posts on Thailand had helped generate publicity last year ahead of the kingdom’s official border reopening in early November.

The 58-year-old Oscar winner posted about getting lost, making friends with a metre-long monitor lizard, bike riding along the river, and admiring the city’s “fascinating skyline”.

IAEA chief praises progress on Fukushima decommissioning

Work on the decommissioning of the stricken Fukushima nuclear plant has made “remarkable progress”, the UN’s nuclear watchdog chief said Thursday after a site visit, pledging to continue monitoring the process.

International Atomic Energy Agency (IAEA) head Rafael Mariano Grossi is in Japan on a two-day trip to assess efforts to dismantle the Fukushima Daiichi plant after the 2011 disaster caused by a devastating tsunami.

The process is expected to last decades and has encountered various difficulties including the build-up of contaminated water.

But Grossi said he was “really impressed by the remarkable progress that, in spite of the pandemic, has been done over the past two years.”

“We are going to be here before, during and after the (decommissioning) process,” he added.

“We are in the before, and it’s going well.”

A March 11, 2011, undersea earthquake off Japan’s east coast triggered a massive tsunami that overwhelmed cooling systems at several of the Fukushima Daiichi plant’s reactors and caused the worst nuclear accident since Chernobyl.

Decommissioning is expected to take around four decades, with painstaking work to remove molten fuel from damaged reactors among the tasks ahead.

A more immediate challenge involves disposing of more than a million tonnes of treated water from the site that is currently stored in massive tanks.

Japan’s government has endorsed a plan to release the water into the ocean after treating it to remove almost all radionuclides and diluting it.

The process will take place over many years, and has been backed by the IAEA and, this week, Japan’s Nuclear Regulation Authority.

In a video message tweeted by Grossi from Fukushima, he insisted the release would “be done in full conformity with the international standards and therefore it will not cause any harm to the environment.”

But the plan has worried local fishing communities concerned about the reputation of their catch and prompted criticism from China and South Korea.

The disaster in northeast Japan left around 18,500 people dead or missing, with most killed by the tsunami.

Tens of thousands of residents around the Fukushima plant were ordered to evacuate their homes, or chose to do so.

Around 12 percent of Fukushima was once declared unsafe but no-go zones now cover just 2.4 percent of the prefecture, although populations in many towns remain far lower than before.

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