People displaced by the fighting in Swat queue for food at a camp in north-west Pakistan.
People displaced by the fighting in Swat queue for food at a camp in north-west Pakistan.
People displaced by the fighting in Swat queue for food at a camp in north-west Pakistan.
People displaced by the fighting in Swat queue for food at a camp in north-west Pakistan.

Ordinary Pakistanis wait for US 'rewards'


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ISLAMABAD // On the dawn of a multibillion-dollar rescue programme from the United States, ordinary Pakistanis are wary of aid from what many consider at best a fair-weather friend and at worst a hostile state intent on stealing its nuclear arsenal. Pakistan is set to receive US$1.5 billion (Dh5.5bn) a year for the next five to 10 years from Washington in a massive civilian aid package aimed at fighting poverty and preventing the country from falling under the sway of a minority of extremists. It represents a tripling of US non-military aid for Islamabad. Underscoring the West's sense of urgency in stabilising the country considered key to defeating al Qa'eda and allied extremist groups, Gordon Brown, the British prime minister, last month called Pakistan's north-west frontier with Afghanistan the "crucible of terrorism". The aid drive, outlined in a bill introduced in early May in the US Senate by the Democrat John Kerry, who chairs the Senate foreign relations committee, and the Republican senator Dick Lugar, targets economic growth, development and governance. The proposed package would "empower the moderates, who will have something concrete to put forward as evidence that friendship with America brings rewards as well as perils," Mr Kerry told the Senate. With two million people displaced by fighting between the Pakistan army and resurgent Taliban in the volatile north-west, a weakened government, a separate insurgency in the south-west and poor infrastructure especially in the power sector, beleaguered President Asif Ali Zardari has been calling on the US and other foreign donors for an aid drive. In the bazaars of Islamabad, mixed with bristling expectations of a windfall of cash and jobs are cautions against corrupt misuse of the funds and a weariness with so much US money focused on "tanks and guns". The consensus was that real benefit would only come if the aid is directed at job creation, education, health care and agriculture - and intensively monitored. The bill states in its summary: "The status quo is not working: the United States believes it is paying too much and getting too little - and most Pakistanis believe exactly the opposite."   Such sentiment was echoed by Altaf Wani, a businessman in Islamabad's central Jinnah marketplace. "The United States has to prove that it is not against Muslims or Pakistan through actions not rhetoric," Mr Wani said. "This package may help to show that the Obama administration is genuinely interested in the welfare of common Pakistanis. If the US invests in the social sector and helps Pakistanis improve their lives it can bring positive change." Muhammad Javed, a garment shop manager, cautioned that many of the displaced two million people are at risk of falling into the arms of radical mosques and madrassas. "The US should spend huge resources on rehabilitating these people as it is the war on terror which has displaced them. Otherwise mosques and madrassas will become the only alternative for them to get refuge and food for their children," Mr Javed said. Access to US and European markets for Pakistani exports should form part of the aid package, he stressed. "The people of Pakistan want to see the soft face of the US now," said Afiya Rasool, a housewife. "So far they've just provided us tanks and guns instead of libraries or sport complexes." More than $10bn handed over by Washington since September 11 has gone to Pakistan's military for battling militants. Mrs Rasool said aid would be better spent on schools in Balochistan and the North West Frontier Province, the two western provinces she called "the breeding grounds of regional terrorism". "If we provide them education the locals may aspire for a better life," she said. Ghulam Abbas, a security guard, is typical of the thousands of poor villagers from outside Islamabad paid less than $100 a month to wear blue uniforms and guard the homes of diplomats and officials. "I live in a poor locality. We do not have clean water, nor do we have access to education or health care," he said in the Super Market bazaar. "If the US builds schools and provides our children books and uniforms it could bring a revolution in our lives. The ruling class is sucking our blood. Whatever they get from abroad they disperse among themselves. Nothing reaches the poor. The US should also invest in projects that create a large number of jobs. Joblessness makes people vulnerable to falling into the hands of terrorists as they promise rewards not only in this world but in the hereafter." Rashid Butt, an administrative clerk, said "swift economic turnaround" could result if the aid is directed to agriculture, education and health care. "Our inept administration and political elite always misused public money and hardly any funds go towards public interest projects. Had they used earlier aid honestly we could be in a better position now." Mr Butt, 39, added: "We should also engage maximum people in dialogue to detach them from terrorist outfits." Asad Shah, a student, espoused the more cynical view of US involvement in Pakistan as hostile interference with destructive intent. "I'm not pleased that Pakistan got billions of dollars by killing its own citizens in the Swat valley and the tribal areas," said Mr Shah, 23, drinking tea at a stall in the Peshawar More bazaar. "Zardari was rewarded by the Obama administration for killing more and more innocent fellow citizens. The people of Pakistan should not accept this aid and should strive to live within their own means." He called the 80,000 mainly US foreign troops in Afghanistan a destabilising force and considered them "the region's major cause of militancy and terrorism", a view held by many Pakistanis. "The US cannot and does not want to help or rescue Pakistan. They just want to deprive us of our nuclear assets and subdue us before Indian hegemony." bcurran@thenational.ae

Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

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How it works

A $10 hand-powered LED light and battery bank

Device is operated by hand cranking it at any time during the day or night 

The charge is stored inside a battery

The ratio is that for every minute you crank, it provides 10 minutes light on the brightest mode

A full hand wound charge is of 16.5minutes 

This gives 1.1 hours of light on high mode or 2.5 hours of light on low mode

When more light is needed, it can be recharged by winding again

The larger version costs between $18-20 and generates more than 15 hours of light with a 45-minute charge

No limit on how many times you can charge

 

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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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Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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The specs

Engine: 3.0-litre six-cylinder MHEV

Power: 360bhp

Torque: 500Nm

Transmission: eight-speed automatic

Price: from Dh282,870

On sale: now

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

If you go

Flight connections to Ulaanbaatar are available through a variety of hubs, including Seoul and Beijing, with airlines including Mongolian Airlines and Korean Air. While some nationalities, such as Americans, don’t need a tourist visa for Mongolia, others, including UAE citizens, can obtain a visa on arrival, while others including UK citizens, need to obtain a visa in advance. Contact the Mongolian Embassy in the UAE for more information.

Nomadic Road offers expedition-style trips to Mongolia in January and August, and other destinations during most other months. Its nine-day August 2020 Mongolia trip will cost from $5,250 per person based on two sharing, including airport transfers, two nights’ hotel accommodation in Ulaanbaatar, vehicle rental, fuel, third party vehicle liability insurance, the services of a guide and support team, accommodation, food and entrance fees; nomadicroad.com

A fully guided three-day, two-night itinerary at Three Camel Lodge costs from $2,420 per person based on two sharing, including airport transfers, accommodation, meals and excursions including the Yol Valley and Flaming Cliffs. A return internal flight from Ulaanbaatar to Dalanzadgad costs $300 per person and the flight takes 90 minutes each way; threecamellodge.com

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