Hearing delayed for father of Pakistan's atom bomb


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A Pakistani court today delayed further hearing a plea from disgraced nuclear scientist Abdul Qadeer Khan for alleged security restrictions to be lifted, court officials said. The security arrangements were imposed on Khan after a five-year period of house arrest for operating a proliferation network was lifted in February. Khan's lawyer Ali Zafar said the hearing was delayed until further notice because one of the judges failed to attend a scheduled session.

"Today there was no hearing because one of the judges did not attend," Mr Zafar said. "The court has still not fixed another date for the next hearing." A court official, who was not authorised to give his name, said the chief justice of the Lahore High Court would fix the next date for the hearing. Pakistan's deputy attorney general, Aamir Rehman, who challenged the verdict on behalf of the federal government, said he had been busy attending an oath-taking ceremony of new judges today.

Khan, the father of Pakistan's atomic bomb, claimed in court that the security arrangements amounted to restrictions on his movement. The court then ordered the government to respond to Khan's claim. In 2004, the scientist admitted in a televised statement that he leaked nuclear secrets to Iran, North Korea and Libya, although he later retracted his remarks. The United States warns that Mr Khan, 72, still represents a nuclear proliferation risk and has long raised fears about the scientist.

In March, US politicians introduced legislation aimed at cutting off military aid to cash-strapped Pakistan, which is fighting Islamist militants on multiple fronts, unless US officials could question Mr Khan. In February, a court in Pakistan's capital Islamabad declared Mr Khan a free man, five years after he was effectively put under house arrest. The ruling was the result of a compromise between the government and Mr Khan's lawyers in which he had to inform the authorities of his movements in advance.

After Mr Khan's televised "confession" in 2004, the then president Pervez Musharraf pardoned the scientist, who is revered in Pakistan as a national hero, but he was kept at his residence, guarded by troops and intelligence agents. * AFP

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Lt Gen Erik Petersen, deputy chief of programs, US Army, has argued it took a “three decade holiday” on modernising tanks. 

“There clearly remains a significant armoured heavy ground manoeuvre threat in this world and maintaining a world class armoured force is absolutely vital,” the general said in London last week.

“We are developing next generation capabilities to compete with and deter adversaries to prevent opportunism or miscalculation, and, if necessary, defeat any foe decisively.”

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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.”

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