Amid renewed political volatility, the Fitch Ratings agency on Tuesday downgraded Pakistan's outlook from stable to negative. In a statement, the credit rating entity affirmed the Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) at 'B-'. "Pakistan's 'B-' rating reflects recurring external vulnerability, a narrow fiscal revenue base and low governance indicator scores compared with the 'B' median," said Fitch, adding that external funding conditions and liquidity will likely improve with the new staff-level agreement, reported Business Recorder. The move comes in view of the significant deterioration in the country's external liquidity position and financing conditions since early 2022. "Former prime minister Imran Khan has called on the government to hold early elections and has been organizing large-scale protests in cities around the country," the agency pointed out. "The new government is supported by a disparate coalition of parties with only a slim majority in parliament." It Regular elections are due in October 2023, creating the risk of policy slippage after the conclusion of the IMF program, it added.   Fitch cited a host of other factors behind its decision to downward revise the rating outlook. It added that renewed political volatility could undermine the authorities' fiscal and external adjustment, as happened in early 2022 and 2018, particularly in the current environment of slowing growth and high inflation. "We forecast slower growth of 3.5 per cent in FY23 amid fiscal and monetary tightening, high imported inflation, and a weaker external demand outlook, all of which will also hit household and business confidence," said Fitch Ratings agency. Fitch saw considerable risks to the implementation of the International Monetary Fund (IMF) program and to continued access of Pakistan to financing after the program’s expiry in June 2023 in a tough economic and political climate, reported Business Recorder. Citing that Pakistan's foreign exchange reserves were under pressure, it added that limited external funding and large current account deficits had drained the State Bank of Pakistan (SBP)-held reserves. It argued that the SBP has used reserves to slow currency depreciation. Liquid net FX reserves at the SBP declined to about USD 10 billion or just over one month of current external payments by June 2022, down from about USD 16 billion a year earlier. The agency estimated Pakistan's current account deficit (CAD) to reach USD 17 billion (4.6 per cent of GDP) in the fiscal year ended June 2022 (FY22), driven by soaring global oil prices and a rise in non-oil imports boosted by strong private consumption. The credit ratings agency also said that the fiscal deficit widened to 7.5 per cent of GDP (nearly Rs 5 trillion) in FY22, from 6.1 per cent in FY21.   Source: ANI

India on Thursday announced its third negative arms import list of 101 more products in the ongoing drive to bolster domestic defense production, with defense minister Rajnath Singh warning that import of weapon systems with foreign software codes can lead to security breaches. Releasing the third “positive indigenization list”, Singh stressed the need to crank up indigenous development of weapon systems, platforms, technologies and ammunition to reduce strategic vulnerabilities and ensure “uninterrupted supplies during wars”. The new list includes some big-ticket products like lightweight tanks, mounted artillery gun systems, naval utility helicopters, and some kinds of drones, medium-range anti-ship and anti-radiation missiles, the imports of which will be progressively banned from December 2022 to December 2027. Citing the example of stringent US action against Chinese telecom giant Huawei on national security grounds, Singh said: “Today, the scope of defense is not limited to borders only. Anyone can now break into a country’s security system with the help of different communication methods. No matter how strong the system is, if it is linked to another country, there is a possibility of a security breach.” “Earlier, equipment such as tanks, howitzers and helicopters were mainly mechanical in nature. It was not possible to control them. But newer defence systems and platforms are electronic and software intensive. They can be controlled or subverted from anywhere,” he added. The third list of 101 items, which adds to the 209 products identified earlier in the first two lists in 2020 and 2021, also includes next-generation offshore patrol vessels, naval anti-drone systems, MF-STAR warship radars, advanced lightweight torpedoes, extended range rockets, land-based loitering munitions and medium-altitude long-endurance UAVs (unmanned aerial vehicles). But much like the first two lists, the third one also includes many products that are already in the process of being manufactured in India or are in the R&D or trials phase, negating the need to import them. Acknowledging this, an MoD official said, “The third list lays special focus on equipment and systems which are being developed and are likely to translate into firm orders in next five years. Like the earlier lists, import substitution of ammunition which is a recurring requirement has been given special emphasis this time too.” India may have gradually reduced weapon imports over the last several years but it still remains the world’s largest arms importer, accounting for 11% of global arms imports. The fledgling domestic defence industrial base requires DRDO, defence PSUs and ordnance factories to pull up their socks as well as much larger participation from the domestic private sector and global majors setting up production facilities in India. The government has set an ambitious target of increasing indigenous military procurement from the existing $10 billion to $20 billion by 2025, as well as increasing defence exports to $5 billion by then. Singh, on his part, said the MoD as well as the armed forces will take all necessary steps, including “handholding of the industry” to create an ecosystem that ensures self-reliance and encourages exports. Contracts worth Rs 54,000 crore have been inked for domestic defence procurements since the announcement of the first two lists, with orders worth another Rs 4.5 lakh crore expected over the next five to seven years, he added. The DRDO, in turn, has pitched in to strengthen domestic manufacturing by signing 30 new transfers of technology (ToT) agreements with 25 industries. At the event, Singh handed over the agreements for 21 technologies, which included counter-drone systems, laser directed energy weapons, quantum random number generators, high-explosive materials and anti-mine boots. “The 3rd positive indigenization list reaffirms the government’s unwavering trust on the capability of the Indian defense industry. The three lists provide a shot in the arm to the domestic defence industry to realize the PM’s Aatmanirbhar vision to build a strong India and attain strategic independence in foreign policy - a much desired aim for all nations in the current global geopolitical situation,” said Jayant Patil of the Society of Indian Defense Manufacturers (SIDM).   Source: The Times of India

The entire export sector has fallen under negative impact due to worldwide corona pandemic situation. The negative trend is continuing in the export earnings in Bangladesh. According to the Export Promotion Bureau (EPB) latest information, the export earnings of Bangladesh have declined by 4 per cent in February of the current year comparing to the month of February last year. In the 28 days of February in the current year the export earning recorded 319 crore taka, which was 332 crore taka in the 29 days of February last year. Bangladesh has earned 2 thousand 586 crore dollars from exporting commodities during July-February period of the ongoing 2020-21 fiscal year. It is 1.45 per cent less than the same period of the previous fiscal year and also 3.61 per cent less than the current target. During July-February of the 2019-20 fiscal year commodities worth 2624 crore dollars were earned through export. In this regard Senior Vice President of Exporters Association of Bangladesh Mohammad Hatem said, the situation was running better than the expectation during corona pandemic. But the continuous price hike of thread has turned into a major problem. Frozen fish export has declined by 10 per cent, shrimp export by 18 per cent, ceramic items by 13 per cent, leather and leather items declined by 4 per cent during July-February comparing to that period of the previous year. AH   

Passengers returning home from foreign countries must show Covid-19 negative certificates at the airport, said Health Minister Zahid Maleque on Sunday. Otherwise they will have to go into quarantine for 14 days upon their return, he added. The Minister came up with the remarks while receiving 100  state-of-the-art ventilators from US Ambassador Earl R. Miler in a programme held at Kurmitola General Hospital in the capital. The government is going to purchase 300 more ventilators to bring Intensive Care Unit (ICU) service for treatment of coronavirus to upazila level throughout the country, said Maleque. Some of the 100 ventilators will be sent to different upazilas which still do not have the ICU service, he said. Talking about renewal of license of private hospitals, Maleque said all private hospitals will have to renew their licenses within the specified time and no hospitals will be allowed to operate without license. He also thanked US for helping Bangladesh amid the pandemic. Source: UNB AH

The Institute of Epidemiology, Disease Control and Research (IEDCR) has said that no evidence of Coronavirus was found in the bodies of eight people admitted in the hospital who returned from Chinese city of Wuhan. Director of the institute Dr. Meerjady Sabrina Flora said this at a press conference at IEDRC office at Mohakhali in the capital on Monday. She said, seven Bangladeshis who returned from Wuhan were taken back to Ashkona hajj camp after undergoing medical tests. But one pregnant woman has been admitted at CMH hospital in the capital. Medical tests for all the Bangladeshis from Wuhan were done while they were on board in the aircraft. Then eight people were taken to hospital as high body temperature was found. Total 312 Bangladeshis returned from Wuhan of China. Of them eight were taken to hospital. After passing vacation in their country 23 Chinese nationals have returned to Bangladesh on Saturday. 325 Bangladeshis and the Chinese nationals have been kept at Ashkona hajj camp for quarantine. AH

Information Minister Dr Hasan Mahmud said the BNP leaders are leaving their party due to its negative politics. “The BNP leaders are leaving their party because of its negative politics. They are telling that BNP has now turned into a nationalist Skype party,” he said while addressing a discussion in the capital on Friday. Institution of Diploma Engineers (IDEB), Bangladesh, arranged the discussion at its auditorium marking its 49th founding anniversary. Speaking as the chief guest, Hasan said BNP leaders M Morshed Khan and Lt. Gen. (Retd) Mahbubur Rahman have already left the BNP because of its politics of vandalism. As a result, he said, the strength of BNP is diminishing. Welcoming constructive criticism, he said BNP criticizes everything done by the government, but it should acknowledge the government’s good works and development activities. Hasan, also Awami League publicity and publication secretary, said although the whole world lauds the progress made by Bangladesh, BNP remains blind in this regard. Highlighting the country’s economic growth, he said former US President Barak Obama praised Bangladesh’s mobile banking system at a function in his village home. Lauding the economic progress of Bangladesh, Indian economist and Nobel laureate Amartya Kumar Sen advised the least development countries to learn lessons from Bangladesh in achieving high GDP growth, the information minister said. About the country’s education system, he said, it is time to ensure quality of technical education. Instead of opening new universities, the number of technical educational institutes should be increased, which will help fulfill the dream of Father of the Nation Bangabandhu Sheikh Mujibur Rahman and achieve the goals set by Prime Minister Sheikh Hasina, he added. Hasan said for lack of skilled manpower here, foreigners are taking a huge amount of money from Bangladesh to their home countries every year. “That’s why we should develop skilled manpower,” he added. Deputy Minister for Education and AL organizing secretary Barrister Mohibul Hasan Chowdhury Nowfel and IDEB general secretary Md Shamsur Rahman, among others, spoke at the meeting with IDEB president Engr AKMA Hamid in the chair. Earlier, Dr Hasan and Nowfel jointly inaugurated a rally on the IDEB premises. Source: BSS AH

Awami League General Secretary Obaidul Quader said, BNP again will express their negative political trend if they do not respond to Prime Minister’s invitation for a tea party. He said these at a press conference at Awami League president’s political office at Dhanmondi in the capital on Friday. Obaidul Quader said, BNP-Oikyafront can discuss openly in the tea party that the Prime Minister has arranged. BNP has rejected the urge of the Prime Minister for a tea party- it is their negative political trend. BNP is in danger as they are going through negative political attitude. To BNP he said, it would be harmful for their existence if the mentality of abstaining from parliament goes on. The voice of opposition will be strong if they join the parliament. BNP can play strong role in parliament though their number is less. About DUCSU election the Awami League leader said, there were voting centers in the dormitories in the previous election. There is nothing to debate in this regard. DUCSU election will be free and fair. Students can exercise their voting rights. AH

Prime Minister Sheikh Hasina said, more negative news than the positive are being published on us. Though we are in the government but more news are being published against us. Those who say that there is no freedom of speech are telling the truth or lying? She said these while speaking as the chief guest at the inaugural program of biennial council of Bangladesh Federal Union of Journalists (BFUJ) at the national press club on Thursday. The premier said, some political parties and some people, who do not belong to any party are saying that there is no freedom of speech in the country. But how they are saying that if there is no freedom of speech in the country? The Prime Minister said, we have given eighth wage board after coming to power. There is also process of ninth wage going on. Hope that, that will also be done. But you know, there are representatives of owners in the wage board. They always try to dillydally. You also understand that. I need not to give more explanation. Sheikh Hasina said, we are building the Padma Bridge with our own resources. People earlier thought that Bangladesh is a poor country, they will live by begging. But why we will live by begging? The concept of the foreigners over us has changed. She said, we have conquered the sea and the space. We have stepped into the stage of dignity through launching of satellite. Our development plan is from the grass root level, so that development happens in all stages. To the journalists she said, the activities that are going on for the welfare of people should be upheld. Because we do not want to depend on others. The program was presided over by BFUJ president Monjurul Ahsan Bulbul where Information Minister Hasanul Huq Inu, Prime Minister’s Information Adviser Iqbal Sobhan Chowdhury, State Minister for Information Tarana Halim, Dhaka Union of Journalist president Abu Jafar Surja and other journalists leaders delivered speeches. AH