Asia

Pakistan’s crisis-hit economy has failed to ‘energise’ despite doses of relief pumped in by the International Monetary Fund (IMF) and its Gulf allies, compounding its woes as its political class readies for fractious national elections.Media reports on just two days this week, October 17 and 18, indicate further fuel crunch, but no solution in sight and more problems ahead as the caretaker government appealed for more funds and long-term foreign investments in the energy sector. On the two days, the PIA cancelled 17 and 48 scheduled flights respectively due to aviation fuel shortage, disrupting domestic and international aviation and adding losses to those the state-run has piled up. “PIA is running on fumes, both literally and figuratively,” Dawn (October 18, 2023) commented, calling ...

The 17 websites were part of a scheme to evade sanctions and fund Pyongyang’s weapons programme; they followed the seizure of $1.5m obtained by scams undertaken by the same group, US officials say Some 17 website domains used by information technology workers from North Korea in a scheme to allegedly defraud businesses were seized by the United States this week. The domains were part of a scheme to evade sanctions and fund the country’s weapons programme, US officials say. The seizures took place on Tuesday authorized by a court order in Missouri, the US Justice Department said in a statement. The United States has alleged that North Korea oversees thousands of IT workers around the world, primarily located in China and Russia, with the aim of deceiving US and other busin...

Sources say the Modi government has become uncomfortable with using yuan for settlement, while refining sources said settlement in yuan also increases Indian traders’ costs Payment for at least seven shipments of Russian oil has been delayed because of India’s reluctance to let state refiners pay with Chinese yuan, sources say. But so far the row over settlement has not disrupted deliveries, because Russian energy groups such as Rosneft continue to supply state-controlled Indian refiners till they find alternative ways pay their bills. India emerged as the top importer of Russian seaborne oil this year, with refiners snapping up the crude sold at a discount after some western nations suspended imports from Moscow over its invasion of Ukraine. But refiners often face ...

As part of President Xi Jinping's major infrastructure initiative, the Belt and Road Initiative (BRI), which promised significant investments in infrastructure projects around the world, the airport's construction was a component of China's ambitious objectives In June, Pokhara, Nepal’s picturesque paradise in the shadow of the majestic Himalayas, received a Sichuan Airlines flight from China, ushering in a historic moment for the city. Finally open for business was the recently built international terminal at Pokhara’s airport, which was largely sponsored and carried out by Chinese businesses. The complex and frightening truth that lurked beneath this ceremonial opening, according to The New York Times, underscored China’s questionable influence over infrastructure and its geopolit...

Foreign exchange reserves across the region have taken a hit as central banks grapple with strong greenback and China’s defence of its yuan Asian central banks have sold more than $30 billion of foreign exchange reserves in the past two months in a largely unsuccessful attempt to stabilise their currencies, analysts at JPMorgan said. Currencies across the region have been highly volatile all year, hemmed between China’s defence of its yuan and a surging dollar backed by a progressively more hawkish Federal Reserve. But that significant level of intervention, which excludes China, has done little to calm investors worried about diminishing returns in emerging markets as dollar yields rise and currencies weaken. Official data showed a net outflow of $2.7 billion from Asian ...

Chinese policymakers “seem to be ignoring everything they learned” from Japan’s 15-year period of economic stagnation, one official warned Increasing deflationary pressures and a deepening real estate crisis have put the world’s second largest economy on the brink of “Japanization,” analysts have warned. The term describes Japan’s 15-year period of low growth and deflation after the burst of an asset-inflated bubble in the late 1990s. “Under the Xi administration, China probably shifted its attention away from economics,” said Hiroshi Wanatabe, Japan’s former top currency diplomat, who retains close ties with incumbent policymakers. Wanatabe recalls how Chinese policymakers eagerly studied ways to avert a Japan-style burst of an asset bubble that led to prolonged deflation and...

The World Bank has warned that Pakistan is in its tipping point on poverty as 40% of its population, accounting for 95 million Pakistanis, lives below the poverty line. This warning comes ahead of the elections. The Bank’s policy note, recently released, is meant to act as a guide for the new government that will take office after the elections for policy reforms. Underlying the Bank’s suggestions for the future is the fact over 12.5 million Pakistanis have fallen below the poverty line last year and who are struggling to meet their daily needs. The latest statistics show that poverty rose from 34.2% to 39.4% with more people falling below the poverty line of US$3.65 per day income level. With Pakistan facing serious economic and human development crises it is abundantly clear that the co...

Sri Lanka has confirmed that it has reached a deal with China, to restructure $4.2bn (£3.4bn) of debt. It has been trying to reach similar deals with a number of creditors to unlock the next tranche of a bailout. Sri Lanka defaulted on its foreign debt in May 2022 amid its worst financial crisis in decades. Soaring prices and shortages of essential goods sparked nationwide protests last year. Why is Sri Lanka in crisis? Is the worst over for Sri Lanka's economic crisis? "We thank China Exim bank (Export and Import bank) for the support in resolving our country's debt situation," Sri Lanka's Finance Ministry said in a statement. "This agreement constitutes a key milestone in Sri Lanka's ongoing efforts to foster its economic recovery." The Ministry gave no further...

The headworks of Nepal's most expensive infrastructure project on the Melamchi were damaged in a debris flow caused by heavy rain on melted glacial deposits in July 2021. The COP28 meeting in November will have to discuss addressing loss and damage from climate breakdown. Photo: SHIVA BASKOTA A key component of international climate negotiations is finance for adaptation measures, and like other developing countries, Nepal faces difficulties in this regard. The next climate summit (COP 28) in Dubai 30 November – 12 December will be crucial to make the country’s concerns clear. The Conference of the Parties (COP) is an annual conference under the United Nations Framework Convention on Climate Change (UNFCCC) and brings together member nations for coordinated response to address globa...

As reported by India Narrative on September 16 that China’s interest in the China-Pakistan Economic Corridor projects in Pakistan has dimmed, the Express Tribune, a leading Pakistani daily reported on Tuesday that the CPEC is in doldrums. Owing to deep economic stress in both the countries, China has not agreed to further expand cooperation in areas of energy, water management, and climate change under the CPEC. Besides, the daily reports, Islamabad has also agreed to give in to many Chinese demands like establishing a coal-fired power plant in Gwadar and a number of other Chinese demands. Reports from other Pakistani sources indicate that one of the reasons behind CPEC projects getting installed is the acute paucity of dollars with the Pakistani government and thus purchasing...