Pakistani rescuers fail to find avalanche victims - dead or alive



ISLAMABAD // Hundreds of Pakistani rescuers, backed by helicopters and sniffer dogs, searched a mountain of snow, sand and mud for the second day yesterday for 135 people, mostly soldiers, missing after an avalanche struck a military complex along the Indian border.

But more than 36 hours after the avalanche hit the military base at the Gayari sector of the Siachen glacier, described as the world's highest battlefield, the rescuers had been unable to find anyone - dead or alive.

"All resources are being used in the rescue operation but so far there has been no progress," a military spokesman, Brigadier Atiq-ur-Rehman, said yesterday.

The military said 135 people, including 124 soldiers from the Northern Light Infantry - which is made up of residents of the Gilgit-Baltistan province - were buried alive when the avalanche hit an area of one square kilometre early on Saturday. The military issued the list of names of people buried under the avalanche. They included a tailor, two hairdressers and three cooks.

"This battalion headquarter is situated at same place for last 20 years and no incident of this nature has happened," the military said in a statement.

"I fail to understand how has it happened because this base was built at a place where there was almost no chance that an avalanche will fall. It was a very safe place," a military officer who served in the area in 2007-2008 said on condition of anonymity because he was not authorised to speak to media.

"It was quite a wide area and it had a cricket ground where we used to play cricket. It was an unfortunate incident," he said.

Pakistan's army chief, General Ashfaq Kayani, visited the site of the avalanche yesterday to monitor rescue activities. He said it was an "unprecedented" incident.

"[The] calamity in no way should affect the morale of the troops defending the motherland at the highest battlefield," the military quoted him as saying in a statement.

"Pakistan army has always risen to the occasion and will come through this challenge as well."

Gen Kayani said the army was mobilising all resources with the help of the air force to carry out a full-scale rescue operation.

The United States expressed concern over the incident and offered help to Pakistan in search, rescue, and recovery operations, according to a statement by the US Embassy

Siachen is in the northern part of Kashmir, the core of the dispute and cause of two of the three wars between Pakistan and India since their independence from British rule in 1947.

Both countries have held several rounds of talks to demilitarise the Siachen but have failed to do so because neither side wants to take first step. There are a combined 10,000 to 20,000 soldiers from Pakistan and India deployed in the area.

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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