In what was considered a significant indication of Narendra Modi’s policy towards Pakistan, a round of high-level talks that had been due to take place in Islamabad this week was unexpectedly cancelled at short notice by the Indian government. The stated reason for the cancellation was that Pakistan’s high commissioner to India had met Indian Kashmiri separatist leaders twice earlier this month.
For anyone even remotely familiar with the way diplomats work in both countries, it is inconceivable that such a meeting could take place without the host country’s approval. This makes me believe there must have been some other compelling reason for cancelling the talks.
Mr Modi was elected on a declared hardline policy towards Pakistan, so it would be easy to believe this decision is a manifestation of anti-Pakistan policies, but this is too simplistic a view.
In the short time since he was elected, Mr Modi has demonstrated considerable skill in handling national and international affairs. I doubt this was a rash decision.
There is more. While a serious domestic political crisis is challenging the writ of the government in Islamabad, incidents along the Line of Control (LOC) dividing Kashmir have increased. Is there a connection?
In any situation involving India and Pakistan, it is very difficult to decide who started the action. However, given Pakistan’s current situation, it would be a very foolish and very intrepid Pakistani soldier who would initiate hostilities with Indian forces. The present Pakistan army chief is beginning to establish a reputation for being intrepid but is also very far from foolish. The Indian chief, meanwhile, has been unnecessarily aggressive in his stance towards his neighbour. I think it would be safe to express the view that, in this instance, Indian aggression is far more likely than any instigated by Pakistan.
So what was the real reason for the cancellation?
Rashtriya Swyamsevak Sang (RSS), an extremist and influential right-wing Hindu nationalist faction, has not been very happy with the Indian government’s decision to initiate talks with Pakistan. Following the meeting between the separatist leaders from Indian Kashmir with Pakistan’s high commissioner, RSS leaders demanded the talks between Pakistan and India be cancelled.
Sherry Rahman, Pakistan’s former ambassador to the US, has bemoaned the signal this sends out to Kashmiris, to Pakistan and to the region. While she is absolutely right, there might be more to it than meets the eye. Mr Modi is too astute and wily to make haste unnecessarily.
I have found former Indian diplomat, M K Bhadhrakumar, to be an excellent analyst on such matters. His assessment is that Mr Modi did not really have a “road map” for his diplomatic approach towards Pakistan and made his excuses to avoid embarrassment.However, Mr Bhadhrakumar also states a secondary reason, which puts everything in perspective.
An article was inserted into the Indian constitution in 1950, granting extraordinary status to Jammu and Kashmir. In brief, this state even had its own prime minister and supreme court. But, from the very outset, this article has been opposed by the RSS and by the BJP leadership.
Later this year, the BJP is likely to be the leading contender to form the government in Indian Kashmir. If the BJP does end up heading the government, it will be in a position to ignore the constitutional amendment.
In this scenario everything falls neatly into place: the sudden cancellation of talks, the messages to Pakistan and Indian Kashmiri separatists, the aggression of the Indian army chief and the hostilities on the LOC.
All this at a time when the elected government in Pakistan is weak. In this context, everything becomes part of a masterful strategic pre-emptive manoeuvre, which is taking advantage of the domestic unrest in Pakistan to ensure minimal reaction to a possible forthcoming Indian decision.
Brig Shaukat Qadir is a retired Pakistani infantry officer
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UAE currency: the story behind the money in your pockets
PAST 10 BRITISH GRAND PRIX WINNERS
2016 - Lewis Hamilton (Mercedes-GP)
2015 - Lewis Hamilton (Mercedes-GP)
2014 - Lewis Hamilton (Mercedes-GP)
2013 - Nico Rosberg (Mercedes-GP)
2012 - Mark Webber (Red Bull Racing)
2011 - Fernando Alonso (Ferrari)
2010 - Mark Webber (Red Bull Racing)
2009 - Sebastian Vettel (Red Bull Racing)
2008 - Lewis Hamilton (McLaren)
2007 - Kimi Raikkonen (Ferrari)
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Brolliology: A History of the Umbrella in Life and Literature
By Marion Rankine
Melville House
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Founders: Michele Ferrario, Nino Ulsamer and Freddy Lim
Started: established in 2016 and launched in July 2017
Based: Singapore, with offices in the UAE, Malaysia, Hong Kong, Thailand
Sector: FinTech, wealth management
Initial investment: $500,000 in seed round 1 in 2016; $2.2m in seed round 2 in 2017; $5m in series A round in 2018; $12m in series B round in 2019; $16m in series C round in 2020 and $25m in series D round in 2021
Current staff: more than 160 employees
Stage: series D
Investors: EightRoads Ventures, Square Peg Capital, Sequoia Capital India
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Squads
India (for first three ODIs) Kohli (capt), Rohit, Rahul, Pandey, Jadhav, Rahane, Dhoni, Pandya, Axar, Kuldeep, Chahal, Bumrah, Bhuvneshwar, Umesh, Shami.
Australia Smith (capt), Warner, Agar, Cartwright, Coulter-Nile, Cummins, Faulkner, Finch, Head, Maxwell, Richardson, Stoinis, Wade, Zampa.
UAE currency: the story behind the money in your pockets
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How to avoid crypto fraud
- Use unique usernames and passwords while enabling multi-factor authentication.
- Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
- Avoid suspicious social media ads promoting fraudulent schemes.
- Only invest in crypto projects that you fully understand.
- Critically assess whether a project’s promises or returns seem too good to be true.
- Only use reputable platforms that have a track record of strong regulatory compliance.
- Store funds in hardware wallets as opposed to online exchanges.
How to tell if your child is being bullied at school
Sudden change in behaviour or displays higher levels of stress or anxiety
Shows signs of depression or isolation
Ability to sleep well diminishes
Academic performance begins to deteriorate
Changes in eating habits
Struggles to concentrate
Refuses to go to school
Behaviour changes and is aggressive towards siblings
Begins to use language they do not normally use