Pakistan’s Kayani supports talks with Taliban


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ISLAMABAD // Pakistan’s outgoing army chief said yesterday the country’s powerful military supported negotiating with militants but would keep open the option of launching possible attacks against them.

The comments by Gen Ashfaq Parvez Kayani, who rarely speaks in public but wields massive influence behind the scenes, supported the government’s efforts while at the same time reminded people of the threat the militants still pose.

“The national leadership has chosen the way of giving peace a chance. The Pakistan army supports this process,” Gen Kayani said in a televised speech at a military academy in the northwestern city of Abbottabad.

The new government of prime minister Nawaz Sharif wants to negotiate an end to the violence that has killed tens of thousands in Pakistan. Under Gen Kayani’s tenure, the military has been engaged in a tough fight with the Pakistani Taliban and other militant groups that want to overthrow the government and install a hard-line Islamic state.

Gen Kayani said the army would be happy if the talks led to peace and that force was generally the last option. But he warned that the military had the ability to confront militants with force if needed. He also reminded Pakistanis of the threat the militants posed back in 2008, before the army launched a series of major offensives in the tribal areas and the Swat Valley in Khyber Paktunkhwa province.

“We should remember those days when armed groups were 100 kilometres away from Islamabad, when women and men used to be butchered in bazaars,” he said.

The army chief dismissed suggestions that negotiations were necessary because military operations have failed. Some Pakistan politicians have criticised the military operations, saying that Pakistan is essentially at war with its own people.

“One opinion has surfaced that perhaps the failed military operations forced for the negotiations,” the general said. “It is far away from the truth.”

Mr Sharif’s government appears to have made little progress in negotiating with the militants after a series of deadly bombings. Militants have demanded the government must free their prisoners and pull troops from the tribal regions where the militants have their strongholds for talks to take place. The militants also want an end to US drone strikes.

Gen Kayani is considered one of the most powerful people in Pakistan, but he’ll be retiring next month. His successor has not yet been named.

* Associated Press

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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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