BEIRUT: The Lebanese government will resume negotiations with the International Monetary Fund while beginning reforms demanded by donors, according to a draft policy program that aims to tackle one of the worst financial meltdowns in history.
New Prime Minister Najib Mikati’s government will also resume negotiations with creditors over a restructuring of public debt on which Lebanon defaulted last year, the draft seen by Reuters on Wednesday said.
The government was agreed on Friday after more than a year of political conflict over seats in cabinet that left the country rudderless as more than three-quarters of the population fell into poverty and shortages crippled normal life.
The cabinet is due to meet on Thursday to approve the draft, which will then go to a vote of confidence in parliament.
Underscoring the gravity of the situation, the policy program was drawn up in a matter of days, much faster than the weeks the process has taken in the past.
The draft said the government was committed to resuming talks with the IMF for a short- and medium-term support plan.
Donors want to see Lebanon enact reforms, including measures to tackle the corruption and graft that led to the economic collapse, before they will unlock billions of dollars of assistance already earmarked for the country.
Talks with the IMF broke down last summer when Lebanon’s political elite and banking sector objected to the scale of financial losses set out in a recovery plan drawn up by the previous government.
The draft program said the Mikati government would renew and develop the previous financial recovery plan, which set out a shortfall in the financial system of some $90 billion — a figure endorsed by the IMF.
The government will also draw up a plan to “correct the situation of (the) banking sector,” which has been paralyzed since late 2019, the draft said.
Lebanon’s financial system unraveled in late 2019.
The root cause was decades of profligate spending by the state and the unsustainable way in which it was financed.
As dollars dried up, depositors were frozen out of their accounts. The value of hard currency savings has plummeted by up to 80 percent since then, with the Lebanese pound collapsing by 90 percent from a peg that had existed for more than two decades.
The program draft said the government was committed to all the articles set out in a reform initiative drawn up by France, which has been at the forefront of efforts to help Lebanon.
The government will work with parliament to pass a capital control law, the draft document said.
It also said parliamentary elections due next spring would be held on time.
Lebanon to resume IMF talks, begin reforms, draft policy statement says
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Lebanon to resume IMF talks, begin reforms, draft policy statement says
- New government will also resume negotiations with creditors over a restructuring of public debt
- The draft said the government was committed to resuming talks with the IMF for a short- and medium-term support plan
Global airline body calls for release of $720 million in held revenues by Pakistan, Bangladesh
- IATA asks Pakistan in a statement to simplify the ‘onerous’ repatriation process causing ‘unnecessary delays’
- The international organization says airlines are unable to repatriate $399 million from the Pakistani market alone
KARACHI: The International Air Transport Association (IATA) on Wednesday asked Pakistan and Bangladesh to release airline revenues amounting to $720 million, saying the two countries were holding it in contravention of international agreements.
IATA, an international organization representing the global airline industry, asked Pakistan to simplify the “onerous” repatriation process involving audit and tax exemption certificates in a statement, pointing out such procedures caused “unnecessary delays.”
Bangladesh, it said, had a more standardized system, though aviation needed to be a higher central bank priority to facilitate access to foreign exchange.
“The situation has become severe with airlines unable to repatriate over $720 million ($399 million in Pakistan and $323 million in Bangladesh) of revenues earned in these markets,” the statement informed.
IATA’s regional vice president for Asia-Pacific Philip Goh emphasized that the timely repatriation of revenues to different countries was critical for payment of dollar denominated expenses such as lease agreements, spare parts, overflight fees and fuel.
“Delaying repatriation contravenes international obligations written into bilateral agreements and increases exchange rate risks for airlines,” he said. “Pakistan and Bangladesh must release the more than $720 million that they are blocking with immediate effect so that airlines can continue to efficiently provide the air connectivity on which both these economies rely.”
Goh maintained that his organization recognized the two governments were facing difficult challenges, making it necessary for them to determine how to utilize foreign currencies strategically.
“Airlines operate on razor-thin margins,” he continued. “They need to prioritize the markets they serve based on the confidence they have in being able to pay their expenses with revenues that are remitted in a timely and efficient fashion.”
He pointed out reduced air connectivity limited the potential for economic growth, foreign investment and exports, adding such large sums of money involved in the Pakistani and Bangladeshi markets necessitated urgent solutions.
Saudi Arabia to develop 320k new hotel rooms by 2030: Knight Frank
RIYADH: Saudi Arabia is gearing up to expand its hospitality sector by developing 320,000 new hotel rooms by 2030, according to an analysis by global property giant Knight Frank.
The consultancy’s study disclosed that as much as 67 percent of the planned hotel room supply in the Kingdom would fall in the “upscale” or “luxury” categories, referring to 4-star and 5-star accommodations, respectively.
This move aims to cater to the projected surge in tourism, with 150 million domestic and international tourists expected by 2030.
“With a target of welcoming 150 million visitors by 2030—a 50 percent increase from its previous goal—the government is actively exploring various strategies to attract to international travelers,” Partner and Head of Hospitality at Tourism and Leisure Advisory in Middle East and Africa Turab Saleem said.
Saleem noted that this includes the development of cultural and entertainment offerings nationwide, which complement existing attractions like the Jeddah F1 Grand Prix and numerous entertainment seasons.
“Noteworthy additions include theme parks such as Boulevard World in Riyadh, alongside the licensing of 24 additional theme parks by the Saudi General Entertainment Authority over the past year,” he added.
Iran, Pakistan urge UN Security Council to take action against Israel
- The joint statement followed a three-day visit to the country by Iranian President Ebrahim Raisi
- Muslim neighbors Iran and Pakistan are seeking to mend ties after unprecedented tit-for-tat military strikes this year
ISLAMABAD: Iran and Pakistan called on the United Nations Security Council in a joint statement issued on Wednesday to take action against Israel, saying it had “illegally” targeted neighboring countries and foreign diplomatic facilities.
The joint statement, released by Pakistan’s foreign ministry, followed a three-day visit to the country by Iranian President Ebrahim Raisi at a time of heightened tensions in the Middle East.
Explosions were heard last Friday over the Iranian city of Isfahan in what sources said was an Israeli attack. However, Tehran played down the incident and said it had no plans for retaliation.
“Recognizing that the irresponsible act of the Israeli regime forces was a major escalation in an already volatile region, both sides called on the UN Security Council to prevent the Israeli regime from its adventurism in the region and its illegal acts attacking its neighbors...,” Iran and Pakistan said in their joint statement.
Muslim neighbors Iran and Pakistan are seeking to mend ties after unprecedented tit-for-tat military strikes this year.
Raisi, who wrapped up his visit and flew on to Sri Lanka on Wednesday, vowed to boost trade between Iran and Pakistan to $10 billion a year.
During his visit to Pakistan, Raisi was quoted by Iran’s official IRNA news agency as saying any further Israeli attack on Iranian territory
could radically change the dynamics and result in there being nothing left of the “Zionist regime.”
On April 13, Tehran launched a barrage of missiles and drones at Israel in what it said was retaliation for Israel’s suspected deadly strike on the Iranian embassy compound in Damascus on April 1, but almost all were shot down.
Pakistan has previously called for de-escalation by “all parties.”
Iran and Pakistan vowed during Raisi’s visit to boost trade and energy cooperation, including on a major gas pipeline deal that has faced delays due to geopolitical issues and international sanctions.
Australian counter terrorism force arrests seven teenagers after Sydney bishop stabbing
- A team of more than 400 police and security personnel were involved in the operation
- Police said they took the teens into custody because they posed an “unacceptable risk” to society
SYDNEY: An Australian counter terrorism team arrested seven teenagers on Wednesday linked to a boy charged with a religiously-motivated terror attack on a Sydney bishop and questioned another five people.
Police said a team of more than 400 police and security personnel were involved in the operation, which arrested associates of a 16-year-old boy charged with a terrorism offense for the knifing of Assyrian Bishop Mar Mari Emmanuel during a live-streamed church service on April 15.
Police said they took the teens into custody because they posed an “unacceptable risk” to society. They will allege the teens believed in a religiously motivated violent extremist ideology. A further five people are being questioned by police.
“I can assure the community there is no ongoing threat to the community, and the action we have taken today has mitigated any risk of future or further harm,” said New South Wales state Police Deputy Commissioner David Hudson at a news conference following the arrests.
Police said in a statement that the operation was ongoing.
Coming only days after a deadly mass stabbing in Bondi, the attack on Emmanuel and fears of further attacks or reprisals against the city’s Muslim community have put the normally peaceful Sydney on edge. Gun and knife crime is rare in the city, one of the world’s safest.
The Joint Counter Terrorism Team (JTT) operation, which involved 13 raids in Sydney and the regional town of Goulburn, was a combined effort between state and federal police as well as the domestic intelligence agency.
A significant amount of electronic material was seized in the raids, police said in a statement.
Australia’s top domestic spy chief on Tuesday asked technology companies to give it access to user messages in limited circumstances so it could fight extremists.
