It has been more than 17 years since Pakistan detonated five nuclear warheads, in a tit-for-tat exchange with India that announced weapons of mass destruction were now part of the South Asian strategic theatre.
Since then, very little has been made public about the underlying philosophy of Pakistan’s programme. In fact, the sole stated “known” is that Pakistan has refused to embrace the no-first-strike commitment made by India, on the ground that Pakistan’s strategic weapons exist to discourage India from using its conventional military superiority to overwhelm it. That position was taken in 2001.
Until recently, the only other information in the public realm was gleaned from Pakistan’s ballistic missile tests. For example, its tests two years ago of short-range missiles revealed they would be used, in theory, against an Indian force that had seized a strategically important parcel of Pakistani territory. However, it has never been specified which parcels of territory would qualify under that inferred criterion.
Pakistan’s so-called “red lines” – events that would trigger a nuclear weapons launch – are unstated and the subject of conjecture. Security analysts have learnt of no more than three such scenarios and they are statements of the obvious for those familiar with recent history.
One involves the loss of the so-called Ravi-Chenab corridor, which includes the eastern metropolis of Lahore, parts of which are less than 10 kilometres from the border with India, and the satellite cities of Gujranwala and Sialkot. Another nuclear trigger would be the loss of half of Pakistan’s flight of US-made F-16 warplanes, because the technological edge they provide, on paper, guarantees it superiority in its own airspace. A third would be a blockade of Karachi and Bin Qasim ports, Pakistan’s only maritime logistical hub – but that red line is fast fading because of China’s construction of a third port at Gwadar, far from India’s maritime borders.
Against that backdrop, and that of annual upward revisions of estimates of the number of Pakistan’s nuclear warheads, there have been occasional outbursts of alarm in the US media, reflecting how little is actually known.
Subtly, that situation has begun to change. In June, a US-Pakistan working group issued a statement about their shared desire to ensure the security of Pakistan's nuclear arsenal and steps Pakistan had taken to prevent even unintentional proliferation of its technology. Then, in August, the Carnegie Endowment for International Peace and the Stimson Centre proposed that Pakistan's strategic programme should be accepted and brought into the global non-proliferation scheme, in exchange for its commitment to a ceiling on the number of warheads it would produce and the range of its ballistic missile delivery platforms. This month, Washington Post columnist David Ignatius disclosed that Carnegie's proposals had, in fact, been adopted by the Obama administration and offered to Islamabad. The veracity of the disclosure was confirmed, by inference, in a statement issued after a meeting of Pakistan's civilian and military leadership held the next day and, the following day, by the White House.
But a deal is not imminent. Indeed, Pakistan’s leadership had appeared to turn down the offer outright. It said it would continue to work towards the development of a full-spectrum nuclear arsenal – one with the ability to launch weapons from the air, land and sea. India and Pakistan both have the air and land platforms, and India is now testing its first nuclear-powered, nuclear-armed submarine, which would give it an edge Pakistan could only blunt if its ally China agrees to transfer its “boomer” technology that allows subs to be armed with nuclear strike missiles. This is unlikely, since China has chosen not to deploy its own emerging fleet in the western Pacific.
Last Wednesday, however, 24 hours before prime minister Nawaz Sharif’s meeting with Barack Obama, Pakistan’s press, quoting the same unnamed official sources, reported the government’s position was markedly different to the long-perceived policy of zero compromise. It would not accept limits on the number of tactical battlefield warheads, it was reported. No mention was made of other types of devices, the strong hint being that a compromise could be reached on those, eventually, if India were prepared to make a matching commitment.
That is, by far, the biggest shift in – and disclosure of – Pakistan’s nuclear doctrine since the 1998 tests. Indeed, the US offer is a significant development in as far as it underlines its belief that Pakistan’s nuclear programme is not the leaky sieve it had been up to December 2003. That is when AQ Khan, the founder of the programme, was caught in the act of selling used uranium enrichment centrifuges to the Qaddafi regime in Libya, which disclosed the transaction as part of its short-lived rapprochement with the West. He also sold designs for uranium-enrichment centrifuges to Iran and North Korea.
It would appear Pakistan has taken the first steps towards joining the global non-proliferation regime. Nobody is suggesting a breakthrough will happen soon, but in a world increasingly characterised by regional conflicts, Pakistan’s willingness to negotiate is an encouraging sign that responsible attitudes are being adopted.
Tom Hussain is Asia-Pacific editor of The World Weekly
On Twitter: @tomthehack
UAE currency: the story behind the money in your pockets
Business Insights
- As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses.
- SMEs with revenue below Dh3 million per annum can opt for transitional relief until 2026, treating them as having no taxable income.
- Larger entities have specific provisions for asset and liability movements, business restructuring, and handling foreign permanent establishments.
Company%20profile
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
UAE currency: the story behind the money in your pockets
Singham Again
Director: Rohit Shetty
Stars: Ajay Devgn, Kareena Kapoor Khan, Ranveer Singh, Akshay Kumar, Tiger Shroff, Deepika Padukone
Rating: 3/5
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
Power: 420kW
Torque: 780Nm
Transmission: 8-speed automatic
Price: From Dh1,350,000
On sale: Available for preorder now
Game Changer
Director: Shankar
Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram
Rating: 2/5
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
THE BIO
Favourite car: Koenigsegg Agera RS or Renault Trezor concept car.
Favourite book: I Am Pilgrim by Terry Hayes or Red Notice by Bill Browder.
Biggest inspiration: My husband Nik. He really got me through a lot with his positivity.
Favourite holiday destination: Being at home in Australia, as I travel all over the world for work. It’s great to just hang out with my husband and family.
COMPANY PROFILE
Name: Mamo
Year it started: 2019 Founders: Imad Gharazeddine, Asim Janjua
Based: Dubai, UAE
Number of employees: 28
Sector: Financial services
Investment: $9.5m
Funding stage: Pre-Series A Investors: Global Ventures, GFC, 4DX Ventures, AlRajhi Partners, Olive Tree Capital, and prominent Silicon Valley investors.
What is the Supreme Petroleum Council?
The Abu Dhabi Supreme Petroleum Council was established in 1988 and is the highest governing body in Abu Dhabi’s oil and gas industry. The council formulates, oversees and executes the emirate’s petroleum-related policies. It also approves the allocation of capital spending across state-owned Adnoc’s upstream, downstream and midstream operations and functions as the company’s board of directors. The SPC’s mandate is also required for auctioning oil and gas concessions in Abu Dhabi and for awarding blocks to international oil companies. The council is chaired by Sheikh Khalifa, the President and Ruler of Abu Dhabi while Sheikh Mohamed bin Zayed, Abu Dhabi’s Crown Prince and Deputy Supreme Commander of the Armed Forces, is the vice chairman.
COMPANY PROFILE
Name: Rain Management
Year started: 2017
Based: Bahrain
Employees: 100-120
Amount raised: $2.5m from BitMex Ventures and Blockwater. Another $6m raised from MEVP, Coinbase, Vision Ventures, CMT, Jimco and DIFC Fintech Fund