BUENOS AIRES: Argentina’s unions paralyzed the country with a 24-hour strike on Monday in protest at the government’s latest deal with the International Monetary Fund.
With no trains, subways, buses or flights in service, organizers expected at least one million workers to take part in the industrial action.
Although the General Confederation of Workers (CGT) called only for a strike, more radical groups organized demonstrations that cut off access to Buenos Aires.
Toward 7:00 am (1000 GMT), activists began to close off the main routes into the capital where hundreds of federal law enforcement personnel were deployed. Most of the city was deserted, including schools.
“The strike is against the economic program ... The IMF has always brought hardship to the Argentines,” CGT director Juan Carlos Schmid told AFP.
He described the strike as “the biggest in eight years.”
The unions are demanding that salary negotiations for this year be reopened in order to align them with projected inflation, calculated at 27 percent by the central bank and which could rise to 30 percent by year’s end.
Negotiations mostly took place at the start of the year, when the annual inflation target was 15 percent — a goal which had been abandoned by May.
In the interest of maintaining dialogue with the unions, labor minister Jorge Triaca said his office was in favor of such negotiations.
Following a currency crisis in April and May, in which the peso shed roughly 30 percent of its value, the IMF announced a $50 billion standby loan for Argentina in early June after Latin America’s third-largest economy sought help to bolster market confidence.
Argentina has a bitter history with the global crisis lender, which many Argentines view as having imposed tough conditions that worsened economic pain 17 years ago.
As the strike gripped Buenos Aires Monday, only a few cars could be seen on the city streets, which were quieter than on a Sunday.
“A general strike isn’t enough. We need a battle plan to counter this war plan against the workers,” Marcelo Ramal, a leader of the Workers Party, said at one of the roadblocks.
The finance ministry estimated the strike would cost Argentina’s economy one billion dollars.
“The government is in a tough spot, it is at its very lowest point (in polls) and is strongly criticized by workers” whose wages are losing value against the high rate of inflation, said political analyst Diego Reynoso.
Argentina’s center-right president Mauricio Macri came to power in 2015 after 12 years of leftist rule by the late Nestor Kirchner, who held office from 2003-2007, and then his wife Cristina, who was president from 2007 until late 2015.
Macri, a free-market businessman and a former mayor of the capital, scrapped many subsidies his predecessors had granted on a variety of services, most notably electricity, gas and water.
The rise in the cost of utilities, as well as in public transport, further eroded the spending power of Argentines.
The government’s deal with the IMF aims to balance the budget by 2020.
Argentina paralyzed by anti-IMF deal strike
Argentina paralyzed by anti-IMF deal strike
- With no trains, subways, buses or flights in service, organizers expected at least one million workers to take part in the industrial action
- Activists began to close off the main routes into the capital where hundreds of federal law enforcement personnel were deployed
Saudi investment pipeline active as reforms advance, says Pakistan minister
ALULA: Pakistan’s Finance Minister Mohammed Aurangzeb described Saudi Arabia as a “longstanding partner” and emphasized the importance of sustainable, mutually beneficial cooperation, particularly in key economic sectors.
Speaking to Arab News on the sidelines of the AlUla Conference for Emerging Market Economies, Aurangzeb said the relationship between Pakistan and Saudi Arabia remains resilient despite global geopolitical tensions.
“The Kingdom has been a longstanding partner of Pakistan for the longest time, and we are very grateful for how we have been supported through thick and thin, through rough patches and, even now that we have achieved macroeconomic stability, I think we are now well positioned for growth.”
Aurangzeb said the partnership has facilitated investment across several sectors, including minerals and mining, information technology, agriculture, and tourism. He cited an active pipeline of Saudi investments, including Wafi’s entry into Pakistan’s downstream oil and gas sector.
“The Kingdom has been very public about their appetite for the country, and the sectors are minerals and mining, IT, agriculture, tourism; and there are already investments which have come in. For example, Wafi came in (in terms of downstream oil and gas stations). There’s a very active pipeline.”
He said private sector activity is driving growth in these areas, while government-to-government cooperation is focused mainly on infrastructure development.
Acknowledging longstanding investor concerns related to bureaucracy and delays, Aurangzeb said Pakistan has made progress over the past two years through structural reforms and fiscal discipline, alongside efforts to improve the business environment.
“The last two years we have worked very hard in terms of structural reforms, in terms of what I call getting the basic hygiene right, in terms of the fiscal situation, the current economic situation (…) in terms of all those areas of getting the basic hygiene in a good place.”
Aurangzeb highlighted mining and refining as key areas of engagement, including discussions around the Reko Diq project, while stressing that talks with Saudi investors extend beyond individual ventures.
“From my perspective, it’s not just about one mine, the discussions will continue with the Saudi investors on a number of these areas.”
He also pointed to growing cooperation in the IT sector, particularly in artificial intelligence, noting that several Pakistani tech firms are already in discussions with Saudi counterparts or have established offices in the Kingdom.
Referring to recent talks with Saudi Minister of Economy and Planning Faisal Alibrahim, Aurangzeb said Pakistan’s large freelance workforce presents opportunities for deeper collaboration, provided skills development keeps pace with demand.
“I was just with (Saudi) minister of economy and planning, and he was specifically referring to the Pakistani tech talent, and he is absolutely right. We have the third-largest freelancer population in the world, and what we need to do is to ensure that we upscale, rescale, upgrade them.”
Aurangzeb also cited opportunities to benefit from Saudi Arabia’s experience in the energy sector and noted continued cooperation in defense production.
Looking ahead, he said Pakistan aims to recalibrate its relationship with Saudi Arabia toward trade and investment rather than reliance on aid.
“Our prime minister has been very clear that we want to move this entire discussion as we go forward from aid and support to trade and investment.”
