Heatwaves in Asia, Pak announces deputy PM, and BNP expels 73 members

Af-Pak Bangladesh De/Cypher 29th April 2024

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For the second consecutive year, Southeast Asia is sweating it out: April, the hottest and driest month of the year in most of the region's countries, has seen extreme heat.

Asia View

Heatwaves Plague Asia: A Region in Crisis

Written By De/Cypher Team

Severe heatwaves are currently sweeping through Asia, with dangerously high temperatures in South and Southeast Asia. Over 6,700 schools in the Philippines had to cancel in-person classes due to high temperatures, and 30 people died in Thailand from heatstroke this year alone. The United Nations has highlighted Asia's vulnerability, citing floods and storms as the most common disasters that kill and cause economic damage.

Bangkok and the Philippines experienced extreme heat, with temperatures exceeding 52 degrees Celsius and dangerous levels expected to reach 42-51 degrees Celsius, respectively. Meanwhile, India faces the simultaneous difficulty of an intensive election and relentless heatwaves, while Nepal braces for temperatures above 40 degrees Celsius across its southern provinces.

Health warnings have been issued by authorities across the region, leading to the closure of schools as residents take to air-conditioned parks and malls. Over 40 degrees Celsius have been recorded in Bangladesh, India, Vietnam, Thailand, Cambodia, and Myanmar.

The India Meteorological Department (IMD) has issued severe weather warnings for eastern and southern regions, including unexpected regions like Kerala and Bengaluru. Record-breaking temperatures have been recorded, with little respite expected until May 1, complicating ongoing elections in affected areas and raising concerns about heat-related illnesses and agricultural output.

Bangladesh is also experiencing severe heatwaves, with temperatures reaching over 40°C in some areas. Urban areas like Dhaka suffer from 'heat islands’, in which factors like deforestation and urbanization exacerbate the heat, causing residents to experience temperatures up to 2°C higher than in neighboring districts. Researchers emphasize the importance of urban planning, arguing that the preservation of green spaces and wetlands can help mitigate the effects of heatwaves.

Despite efforts to combat the heat, meteorological warnings have been extended, indicating that high temperatures and heatwaves will continue, posing significant challenges to daily life and public health across the region. Climate change is increasing the intensity and frequency of heatwaves, necessitating immediate action to protect vulnerable communities and mitigate the impact on lives and livelihoods. 

Top Stories📜 this week 

Iran-Pakistan gas pipeline remains stalled under cloud of sanctions

Iranian President Ebrahim Raisi's visit to Pakistan this week put the spotlight on a major gas pipeline deal between the two neighbours which has faced delays due to geopolitical issues and international sanctions. Read more: Reuters

US Warns of Sanctions Risk as Pakistan Inks Deals With Iran

The US has warned of sanctions risks for Pakistan after the government in Islamabad signed security and economic deals with Iran during a visit by President Ebrahim Raisi to the South Asian country. The warnings came as Washington imposed sanctions last week on suppliers to Pakistan’s ballistic missile program, which included four based in China and Belarus. Read more: Bloomberg

PM arrives in Riyadh for WEF special meeting

Prime Minis­ter Shehbaz Sharif on Sat­urday arrived in Riyadh, Saudi Arabia, to participate in a special meeting of the World Economic Fo­­rum (WEF) on ‘Global Collaboration, Growth, and Energy for Develop­ment, being held from April 28. The meeting, April 28–29, will focus on new pathways to reinvigorate growth globally amid the challenges posed by an increasingly fragmented geopolitical and economic environment. Read more: Dawn

Foreign Minister Ishaq Dar appointed deputy prime minister

Foreign Minister Ishaq Dar was given the additional charge of deputy prime minister on Sunday, according to a notification issued by the Cabinet Division. Dar served as federal minister for commerce and investment in the 1997-99 government of Nawaz Sharif and has twice served as federal minister for finance, economic affairs, revenue and statistics (1998-99 and 2008). Read more: Dawn

‘Saudis call Shehbaz Man of Action’: PM highlights Pakistan’s investment potential, policies

Prime Minister Shehbaz Sharif was declared the “Man of Action” by the Saudi leadership in recognition of his commitment to reviving Pakistan’s economy through massive reforms and foreign investment. This acknowledgment came during his busy day in Riyadh, where he met different leaders and addressed a special meeting of the World Economic Forum. The remarks were made during separate meetings of Prime Minister Shehbaz Sharif with Saudi Minister for Investment Khalid Al-Falih, Minister for Finance Mohammad Al Jadaan, and Minister for Industry Bandar bin Ibrahim Alkhourayef. Read more: Pakistan Today 

At meeting with IMF chief, PM reiterates commitment to revive Pakistan’s economy

Prime Minister Shehbaz Sharif on Sunday met with Managing Director (MD) of the International Monetary Fund (IMF) Kristalina Georgieva wherein he reiterated his government’s commitment to put Pakistan’s economy back on track.

In the meeting held on the sidelines of the World Economic Forum Special Meeting here, the prime minister said that he had directed his financial team, led by Finance Minister Muhammad Aurangzeb to carry out structural reforms, ensure strict fiscal discipline and pursue prudent policies that would ensure macro-economic stability and sustained economic growth, according to a PM Office press release. He thanked Georgieva for supporting Pakistan in securing the USD 3 billion Standby Arrangement (SBA) from IMF last year that was about to be completed. The IMF Executive Board is expected to meet on April 29 to decide on the final tranche of USD 1.1 billion under SBA.  Read more: Pakistan Today

Sen. Chuck Schumer Warns Pakistan to Not Kill Imran Khan

SENATE MAJORITY LEADER Chuck Schumer warned in a conversation with Pakistan’s ambassador to Washington that the safety of imprisoned former Prime Minister Imran Khan was a high priority of the United States. The warning issued late last month by Schumer, the most powerful Democrat in Congress, to Pakistan came after intense activism by members of the Pakistani diaspora amid concerns that the Pakistani military may harm Khan, the former prime minister who was ousted from office in 2022. Read more: The Intercept

Pakistan and the IMF - Help on the Horizon 

Written by Priyanka Garodia, Geopolitical Research Analyst, South Asia

The International Monetary Fund (IMF) is set to disperse a $1.1 billion loan tranche to Pakistan, awaiting discussions today. This will be the third instalment of a $3 billion bailout the country sought to avoid sovereign default. Pakistan is in the middle of a severe economic crisis with inflation rates at 30%, a debt-to-gross domestic product ratio at 72% and a depreciating rupee.  With low foreign exchange reserves, a highly reduced purchasing power, mammoth external debt of around $77.5 billion, a deepening climate crisis, consistent domestic attacks from radical Islamic groups, and social unrest, Islamabad’s problems are multifold.

The Russian-Ukraine war disrupted energy supplies globally but disproportionately affected markets in the Global South. The aftermath of the invasion compounded the effects of the COVID-19 pandemic and the economic hardship that came with it, for Pakistan. The floods in the summer of 2022, wrecked an already rickety economy. Reports claimed that monetary damages were conservatively estimated to be around $15.2 billion and that sustainable rehabilitation and reconstruction measures would cost around USD 16.3 billion. 

The IMF bailout is in the form of a stand-by arrangement (SBA) for 9 months and comes with the expectation that Pakistan will make fiscal policy changes to supplement the economic aid. The premise of the bailout includes the following objectives:

 (i) strengthening public finances;

(ii) restoring the energy sector’s viability;

(iii) returning inflation to target, with a deeper and more transparent flexible FX market; and 

(v) promoting private-led activity through the above mentioned actions as well as the removal of distortionary protection, advancement of SOE reforms to improve the sector’s performance.

The Pakistani government has been effectively pursuing the IMF to extend the scope of the economic aid it requires to save its crumbling economy. Shahbaz Sharif, the Pakistani PM and Ms Kristalina Georgieva, the IMF head, met in Riyadh for the World Economic Forum (WEF). The PM stressed Pakistan’s commitment to adhere to IMF recommendations for economic recovery and to consolidate economic growth in the future. The two discussed Pakistan’s need to secure a more sustained and longer loan from the International Monetary Fund. 

Muhammad Aurangzeb, the Pakistani Finance Minister has entered office with the huge responsibility of economic recovery. Speaking at the World Economic Forum (WEF), the Finance Minister of Pakistan has highlighted Pakistan’s need to use digital technology to substantiate economic recovery. He discussed the importance of ‘Nadra’ and ‘Raast -  the two systems of national identification and digital online payments respectively as the pillars on which economic digitisation can be based. He stresses the need for an Extended Facility Fund (EFF) from the IMF that helps countries with structural issues address its balance of payment crisis. The assistance is much needed for Pakistan’s laboured economy along with critical policy reform.

Conclusion

Overall, policy measures, stronger foreign exchange reserves and political stability are essential for Pakistan’s economic recovery. The Shahbaz Sharif government has been focused and swift in pursuing economic ties with Saudi Arabia, Kuwait, and China to stabilise its economy. However, domestic factors could emerge as a major problem in the future given the recent troubles with Afghanistan, Islamic militancy and terrorist activities especially in Baluchistan and Khyber Pakhtunkhwa. 

Top Stories📜 this week

Bangladesh, Qatar sign 10 cooperation documents to take ties to new height

Bangladesh and Qatar signed 10 cooperation documents, including agreements and MoUs covering legal cooperation, investment, taxation, maritime transport, and business collaboration. Prime Minister Sheikh Hasina and Qatar’s Emir Sheikh Tamim bin Hamad Al Thani oversaw the signings, following their meetings at the Prime Minister's Office. The agreements aim to deepen cooperation in sports, youth, manpower employment, diplomatic training, education, and port management between the two countries. Read more: Dhaka Tribune

Bangladesh signs 5 bilateral documents with Thailand

Bangladesh and Thailand have inked five bilateral documents, comprising an agreement, three memoranda of understanding (MOUs), and a letter of intent (LOI), during Prime Minister Sheikh Hasina's visit to Bangkok. The leaders discussed various mutual interests and emphasized the deep-rooted historical and cultural ties between the two nations. They explored avenues to boost bilateral trade, including initiating negotiations on a Free Trade Agreement (FTA). Additionally, they deliberated on regional cooperation within the BIMSTEC framework, with Thailand transitioning the chairmanship to Bangladesh later this year. Read more: Somoy News

Dhaka denounces US State Department's 2023 human rights report

Bangladesh criticized the US State Department's 2023 Human Rights Report, denouncing its reliance on assumptions and unsubstantiated allegations, and its failure to acknowledge the country's progress. The spokesperson emphasized Bangladesh's efforts under Prime Minister Sheikh Hasina to improve human rights, including advancements in women's empowerment, gender parity, and religious freedom. The government expressed disappointment over the report's portrayal of events surrounding the 12th National Elections and its omission of substantive evidence on individual cases. Read more: The Financial Express

BNP expels 73 party leaders for contesting upazila polls

The Bangladesh Nationalist Party (BNP) expelled 73 party members for defying its decision and participating in the first phase of upazila parishad elections scheduled for May 8. The expelled members, including candidates for chairmen, vice-chairmen, and female vice-chairmen positions, were removed from all party positions and primary membership. Despite BNP's decision not to partake in elections under the ruling Awami League government and the current Election Commission, these members contested the polls. The expelled candidates represent various upazilas across the country, with 28 vying for chairmen posts, 24 for vice-chairmen, and 21 for female vice-chairmen positions. Read more: New Age

Delay, cost-overrun plague textiles and jute ministry projects

Several projects under Bangladesh's textiles and jute ministry face delays and cost overruns, affecting their quality and objectives. Out of 25 ongoing infrastructure projects for educational institutions, 17 have experienced delays, leading to a total cost increase of Taka 1.11 billion. The national parliament’s committee on estimates expressed dissatisfaction, recommending division of projects and addressing issues such as unnecessary projects and their benefits. Factors contributing to delays include the COVID-19 pandemic, material price hikes, and administrative issues. The committee emphasizes the importance of setting realistic project deadlines and addressing issues before initiating new projects. Read more: Prothom Alo 

IMF for 15% VAT on all goods, services for businesses with over Tk3cr turnover

A visiting IMF delegation, led by Rahul Anand, proposed withdrawing VAT exemptions and rate reductions in various sectors, including clothing, footwear, education, health care, liquefied petroleum gas, and mobile phones, during a meeting with NBR officials on Sunday. If accepted, sectors currently enjoying reduced rates or tax exemptions, like health, education, agriculture, and daily necessities, could face a 15% VAT, potentially raising commodity prices and increasing import dependency. Despite the proposal, NBR officials stated that they are close to meeting revenue collection targets with the current strategy and will review and implement reasonable proposals. Read more: The Business Standard

Ongoing heatwave: Water crisis grips Khulna

Amidst an ongoing heatwave, Khulna city faces a severe water crisis, with the Water Supply and Sewerage Authority unable to meet the demand due to plummeting groundwater levels. Residents, particularly in areas like Sonadanga Solar Park and Harijan Pally, endure hardships fetching water from distant pumps. Despite a project initiated in 2016 to address the crisis by tapping into the Madhumati river, the current water supply stands at only five crore litres per day against a demand of 24 crore litres, leaving many households without access to clean water. Read more: The Daily Star 

288 Myanmar security personnel sent back from Bangladesh

On Thursday, Bangladesh repatriated 288 Myanmar security personnel who had fled to Bangladesh to escape the conflict between Myanmar's military junta and the Arakan Army. The group included members of the Border Guard Police (BGP), army soldiers, and immigration officials. The repatriation took place at 6am at BIWTA Ghat in Cox’s Bazar in the presence of delegations from both countries, with the Ministry of Home Affairs and relevant authorities coordinating the process. This marks the second recent repatriation of Myanmar personnel, following the return of 330 officials on February 16. Read more: Daily Sun

2 KNF members shot dead during raid in Ruma: ISPR

Two members of the Kuki-Chin National Front were killed during a raid by army personnel in the remote Baklai Para area of Bandarban’s Ruma upazila. The Inter-Services Public Relations Directorate reported that the team seized three arms, ammunition, and a walkie-talkie used by the armed group. A joint operation, involving BGB, Rab, police, and Ansar, coordinated by the army, is underway to apprehend individuals involved in recent bank robberies in Ruma and Thanchi on April 2 and 3. Read more: The New Nation

Road accidents: Killing on the highways continues unabated

Road accidents in Bangladesh persist due to factors like unfit vehicles, unlicensed drivers, and poor road conditions. Recent incidents highlight negligence rather than accidents, urging accountability. Despite sporadic enforcement efforts, over 5,000 deaths annually occur. Challenges include insufficient rest facilities for drivers and political influence hindering regulatory efforts. Read more: Prothom Alo

Top destinations of Bangladeshi female migrant workers 2023

In 2023, the top destinations for Bangladeshi female migrant workers included countries like Saudi Arabia, United Arab Emirates (UAE), Oman, Qatar, and Lebanon. These countries attracted a significant number of female workers from Bangladesh seeking employment opportunities in various sectors such as domestic work, hospitality, and healthcare. Read more: The Business Standard

At least 13 Palestinians killed in Israeli strikes on Rafah, medical officials say

Israeli air strikes on three houses in the southern Gaza city of Rafah killed at least 13 Palestinians and wounded many others, according to medics. The strikes occurred just hours before Egypt was expected to host Hamas leaders to discuss prospects for a ceasefire agreement with Israel. Read more: Arab News

Vietnam’s No. 4 Leader Resigns Amid Corruption Probes

The head of Vietnam's Parliament, Vuong Dinh Hue, has resigned amid a corruption investigation into a real estate firm. Hue's resignation comes after the Communist Party's Central Committee announced that he violated party regulations and that these infringements have affected the reputation of the party, the state, and Hue himself. Read more: Bloomberg

Philippines says ‘foreign actor’ behind Marcos Jnr deepfake urging military action against China

A deepfake video of Philippine President Ferdinand Marcos Jr. urging military action against China has been circulating, and the government believes a foreign actor is likely behind it. Marcos Jr.'s office has denied the existence of any directive urging military action against China and is working with various agencies to combat deepfakes. Read more: SCMP

Schools closed, warnings issued as Asia swelters in extreme heatwave

An extreme heatwave is affecting South and Southeast Asia, with temperatures reaching as high as 45 degrees Celsius. As a result, schools have been closed, health warnings have been issued, and residents are seeking relief in air-conditioned malls and parks. Extensive scientific research has found that climate change is causing heatwaves to become longer, more frequent, and more intense. Read more: CNA

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