Pakistan's prime minister-designate Shahid Khaqan Abbasi (C) leaves with his party leaders after a meeting at Parliament House in Islamabad on August 1, 2017. AFP / Aamir Qureshi
Pakistan's prime minister-designate Shahid Khaqan Abbasi (C) leaves with his party leaders after a meeting at Parliament House in Islamabad on August 1, 2017. AFP / Aamir Qureshi
Pakistan's prime minister-designate Shahid Khaqan Abbasi (C) leaves with his party leaders after a meeting at Parliament House in Islamabad on August 1, 2017. AFP / Aamir Qureshi
Pakistan's prime minister-designate Shahid Khaqan Abbasi (C) leaves with his party leaders after a meeting at Parliament House in Islamabad on August 1, 2017. AFP / Aamir Qureshi

Pakistani lawmakers to elect new premier to replace Sharif


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Pakistani lawmakers were to vote on Tuesday to elect the successor to three-time prime minister Nawaz Sharif who was disqualified from office by the Supreme Court last week over concealing assets, a lawmaker from the ruling party said.

The ruling Pakistan Muslim League's choice for Mr Sharif's successor, Shahid Khaqan Abbasi, is certain to be elected as head of government since the party holds 188 of the 342 seats in the assembly. Mr Abbasi needs a simple majority of 172 votes to be elected.

"It will be an easy and comfortable win," said senior lawmaker Raja Zafarul Haq, adding that Mr Abbasi will be sworn in later in the evening.

Mr Sharif resigned on Friday, shortly after the top court ruled that he face corruption charges over concealing assets — specifically that his son's Dubai-based company had listed a monthly salary for him. Mr Sharif claimed he never received any of that money.

Mr Sharif's party has said it will file a petition with the Supreme Court next week, asking for a review of its decision.

Opposition parties have fielded five candidates against Mr Abbasi ahead of Tuesday's election.

The ruling party also said it wants Mr Abbasi to serve as an interim premier until Mr Sharif's younger brother — Shahbaz Sharif, the chief minister of Punjab province — wins a national assembly seat in a by-election. The opposition criticised this as dynastic and undemocratic. The next general elections are due in June 2018.

In disqualifying Mr Sharif, the Supreme Court also asked Pakistan's figurehead president Mamnoon Hussain to "ensure continuation of the democratic process".

Mr Abbasi, a six-time lawmaker, has vowed to continue the mission of 67-year-old Sharif who served three separate stints as premier but could never complete his full term in office, mainly due to rocky relations with Pakistan's powerful military.

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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