ISLAMABAD // Pakistani officials yesterday condemned the US for carrying out its first drone strike in the country since parliament demanded they end two weeks ago.
However, the officials qualified that it should be seen in light of the presence of Islamist militants on Pakistani soil.
The mixed signals indicate the delicate tightrope the government is trying to walk with the American attacks. They are very unpopular in Pakistan, so opposing them makes sense for political reasons. But the government does not seem to want the strikes to torpedo attempts to patch up ties with the US, which could free up more than US$1 billion (Dh3.67bn) in American military aid.
Pakistan's foreign ministry issued a statement saying the strikes which killed three suspected militants in the North Waziristan tribal area on Sunday "are in total contravention of international law and established norms of interstate relations".
"The government of Pakistan has consistently maintained that drone attacks are violative of its territorial integrity and sovereignty."
Pakistan's parliament demanded an end to the strikes in mid-April when it approved new guidelines for the country's relationship with the US.
Washington had hoped that parliament's decision would pave the way for Pakistan to reopen supply lines for Nato troops in Afghanistan that were closed in November in retaliation for American air strikes that accidentally killed 24 Pakistani troops.
The drone attacks have been a stumbling block. But Pakistan's prime minister, Yousuf Raza Gilani, struck a moderate tone yesterday when he seemed to link the strikes to the continued ability of Islamist militants fighting the government and international forces in Afghanistan to operate on Pakistan's territory.
He pointed out that the resolution passed by parliament also stipulated that foreign fighters must be expelled from the country and Pakistani soil should not be used to attack other countries.
"So, when we plan a strategy [with the US], all these aspects would be discussed," said Mr Gilani.
The US has repeatedly demanded that Pakistan target Taliban and Al Qaeda militants who use its territory to launch cross-border attacks.
The Pakistani military has refused, claiming its forces are stretched too thin by operations against home-grown militants battling the government. However, many analysts believe Pakistan is reluctant to target militants with whom it has historical ties because they could be useful allies in Afghanistan after foreign forces withdraw.
The drone issue is complicated by the fact that some elements of the Pakistani government, including the military, have helped the US carry out strikes in the past. That cooperation has come under strain as the relationship between the two countries has deteriorated, but many analysts believe some in the government still support the programme at some level.
Even those Pakistani officials believed to support the attacks often protest them in public because they are so unpopular in the country. Many Pakistanis believe they mostly kill civilians, an allegation disputed by the US and independent research.
A Pakistani intelligence official said the most recent strike seemed to be a message from the US.
"It's a message that things are going to continue as usual irrespective of what we say," said the official.
It was not the first time the US has ignored Pakistan's parliament, which has called for the drone strikes to end since 2008.
Barack Obama, the US president, significantly ramped up strikes in Pakistan when he took office in 2009, and while the US has said little publicly about the attacks, American officials have argued in private that they are crucial to targeting Taliban and Al Qaeda fighters who threaten the West.
Drones are not the only issue complicating Pakistan's decision to reopen the Nato supply lines.
The country's parliament has also demanded that the US provide an "unconditional apology" for the deaths of the Pakistani troops in November. The US has expressed regret, but has declined to apologise - a decision that appears to be driven by domestic political considerations.
The US has said its troops fired in self-defence - a claim disputed by Pakistan - and the White House could be concerned about Republican criticism if it apologises.
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
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.”
Mia Man’s tips for fermentation
- Start with a simple recipe such as yogurt or sauerkraut
- Keep your hands and kitchen tools clean. Sanitize knives, cutting boards, tongs and storage jars with boiling water before you start.
- Mold is bad: the colour pink is a sign of mold. If yogurt turns pink as it ferments, you need to discard it and start again. For kraut, if you remove the top leaves and see any sign of mold, you should discard the batch.
- Always use clean, closed, airtight lids and containers such as mason jars when fermenting yogurt and kraut. Keep the lid closed to prevent insects and contaminants from getting in.