In Pakistan’s northwest, rise in extortion demands signals advance of Taliban

Tehreek-e-Taliban Pakistan fighters in South Waziristan. (Reuters)
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Updated 29 September 2022
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In Pakistan’s northwest, rise in extortion demands signals advance of Taliban

  • Arab News interviewed traders who had received extortion demands in recent months
  • Most of them said the callers identified themselves as militants belonging to Tehreek-e-Taliban Pakistan

PESHAWAR: Soon after a grenade struck his house in Peshawar city three months ago, Ihsan Khan, a well-known trader in the capital of the northwestern Khyber Pakhtunkhwa province, received a phone call.

“Next time, the entire home will be blown up if you don’t pay Rs300 million ($1.2 million),” the voice on the other end said.

The menacing call was taken seriously in a northern pocket of the country where the Pakistani Taliban, or the Tehreek-e-Taliban Pakistan, have carried out some of the deadliest attacks in Pakistan in past years and where officials as well as local residents widely say the militants are attempting to regain a foothold.

Over the next few days, Khan held a series of phone negotiations with the caller and finally brought the demand down through the help of intermediaries, subsequently paying a smaller sum.

Last week, Arab News interviewed at least seven traders, transporters and businesspeople who had received demands for protection money in recent months. Six said the callers had identified themselves as militants belonging to the TTP. It was unclear how many paid up.

The increasing demands for cash have stirred fears of the comeback of insurgents to the northwestern Khyber Pakhtunkhwa province amid a stalled peace deal with Islamabad and drawn-out negotiations that began last year.

On Sept. 20, the TTP said it was not linked to the extortion demands and issued a statement calling on the public not to pay up.

“If anyone asks you…in the name of the Tehreek-e Taliban Pakistan (TTP), please contact us so we can unmask them,” the statement said, offering a contact number.

In comments to Arab News, Abu Yasir, the head of the TTP’s grievance commission, said the group had a “clear-cut and strong stance” against extortion.

“We have neither allowed nor will we allow anyone to do so,” Yasir said. “We have stopped many. And in some cases, members of the Tehreek have also done it on an individual basis, but we have stopped them…We have stopped our colleagues and asked others as well when a complaint has been lodged with us.”

‘TIP OF THE ICEBERG’

Attacks and threats of violence have been a part of life in northern Pakistan since at least 2010, including the attempted assassination of Nobel laureate Malala Yousafzai in 2012 and an attack on an army-run school in 2014 in which at least 134 children were killed.

Though thousands of Pakistanis have been killed in militant violence in the last two decades, attacks declined in the last few years after a series of military operations that pushed most TTP insurgents in Pakistan’s northwest to find shelter in neighboring Afghanistan.

But many analysts and officials warn militants are attempting to return and are busily conducting kidnappings and extortion to stockpile cash for the fight ahead if peace talks with Islamabad fail. Their reach and their ability to carry out attacks were chillingly demonstrated earlier this month when eight people were killed in a roadside bombing that targeted an anti-Taliban village elder’s vehicle in Swat Valley, in what was the first major bombing in the area in over a decade. 

Taliban militants this month also kidnapped 10 employees of a telecom company and demanded Rs100 million for their release, according to a police report filed with the local counterterrorism department.

Concerns of a TTP resurgence have grown since August 2021, when the Afghan Taliban took over Kabul following the departure of US and other foreign forces. Pakistani officials have since variously spoken of fears of fighters from the Pakistani Taliban group, which is separate but affiliated with the Afghan Taliban, crossing over from Afghanistan and launching lethal attacks on its territory.

The Afghan Taliban have reassured their neighbor they will not allow their territory to be used by anyone planning attacks on Pakistan or any other country. Still, the TTP has managed to step up attacks in recent months, and both police and government officials as well as locals report that hundreds of insurgents have returned — as have demands for extortion.

Mohammed Ali Saif, a spokesperson for the Khyber Pakhtunkhwa government, said anonymous calls demanding protection money were being made both from Afghanistan and within Pakistan.  

“Different people have received calls for extortion, some have registered FIRs [police reports] and others have not,” Saif told Arab News, saying the Counter-Terrorism Department and police took immediate action whenever such cases were reported.  

Not all calls, he said, were from TTP militants.

“Some calls are also made by criminals and extortionists,” the spokesperson said.

Khyber Pakhtunkhwa’s Inspector General of Police Moazzam Jah Ansari, CTD chief Javed Iqbal Wazir, and spokespersons for the Pakistani Foreign Affairs Ministry and army and Afghanistan’s Information Ministry did not respond to phone calls and text messages seeking comment.

But a Peshawar-based senior police official with direct knowledge of the issue, who spoke on the condition of anonymity, said the provincial police department had been registering at least four extortion cases a day in the city since July.

“This is just the tip of an iceberg,” he said. “Previously, traders, transporters and businessmen used to be the targets. Now, members of national and provincial assemblies as well as government officials are also asked to pay protection money…The situation is very bad and it’s deteriorating with each passing day.”  

Another police official based in Swat Valley said: “Well-off people, including lawmakers, receive phone calls on a regular basis. Few report it and a majority of them pay the money.”

Since the start of August, Swat police have registered four cases of extortion, naming the TTP as suspects in their reports. In one such case, the Swat official said, militants were paid Rs25 million as protection money by a provincial lawmaker.  

“Militants asked the lawmaker to remove CCTV cameras from his home before they arrived to collect the money at midnight,” the official said. “The lawmaker opted not to report the incident.”  

‘PREDICTABLE PHENOMENON’

Malik Imran Ishaq, president of the Industrialists’ Association Peshawar, said militancy and extortion had caused “severe damage” to the business fraternity in Khyber Pakhtunkhwa province.  

In Peshawar, extortionists targeted wealthy families, he said, with residents regularly finding small bombs outside their homes or businesses.

“Many of our association’s members have received extortion calls and many of them have been hit, targeted by rocket launchers and hand grenades,” the industrialist said.

Police had increased patrolling in the Hayatabad industrial estate area of the city, but it had not resolved the issue, Ishaq said.

“I am clueless about how this issue will be resolved,” he said, lamenting that businesses worth billions of rupees in the Hayatabad industrial estate were on the verge of closure.

“Twenty-eight of our members have shut their industrial units in Peshawar and moved to Punjab to set up factories there,” Ishaq said, blaming the move on a resurgence of militancy and a rise in Taliban demands for cash.

“There has been an evident surge during the last year, particularly the last couple of months.”  

The crime wave means the government and military could face a well-armed insurgency if the TTP is able to fully return to the country’s northern belt, experts warn.

Abdul Sayed, a Sweden-based militancy expert, said an increase in demands for protection money was a telltale sign that the militants were making serious attempts to regain control in Pakistan’s northwest.

“Militants require financial support for their operations,” he said, “and in this context, the rise of extortion incidents in these areas is a predictable phenomenon.”


Haldiram’s: India’s beloved snack maker eyed by foreign investors Blackstone, UAE wealth fund

Updated 14 May 2024
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Haldiram’s: India’s beloved snack maker eyed by foreign investors Blackstone, UAE wealth fund

  • Haldiram’s started in 1937 from “tiny shop” in Bikaner in desert state of Rajasthan
  • Haldiram’s has almost a 13% share of India’s $6.2 billion savoury snacks market

From fried Indian snacks to local sweet delicacies, family-run Indian snack maker Haldiram’s has long been one of the country’s most popular food brands. Now, foreign investors like Blackstone and Abu Dhabi Investment Authority want a big bite of it.

Haldiram’s was last year also an acquisition target for India’s Tata Group, one of the country’s biggest conglomerates.

Here are some facts about the popular Indian brand:

* Haldiram’s started in 1937 from a “tiny shop” in Bikaner in the western desert state of Rajasthan. It later expanded to New Delhi in 1983.

* The company’s website says it has 1,000 distributors and its products are available in 7 million outlets. It also exports to many foreign countries including Japan, Russia, United Kingdom and Australia.

* One of its most popular snacks is “bhujia,” a crispy fried Indian snack made with flour, herbs and spices and sold for as little as 10 rupees (12 US cents) across mom-and-pop stores. Haldiram’s calls it “an irresistible Indian snack” which can “captivate your taste buds.”

* Haldiram’s started exporting products in 1993. The US was its first market, where it began with 15 savoury products, and later, in 2016, opened its first overseas factory in the UK.

* Beyond snacks, Haldiram’s also sells ready-to-eat and frozen foods such as Indian curries and rice items. It also runs more than 150 restaurants which sell street-style Indian food, as well as Chinese and western cuisine.

* Last year, during deal talks with Tata, Haldiram’s was seeking a $10 billion valuation. Reuters has previously reported Haldiram’s annual revenues are around $1.5 billion.

* Haldiram’s has almost a 13% share of India’s $6.2 billion savoury snacks market, Euromonitor International estimates.

($1 = 83.5200 Indian rupees)


Internally displaced people reached 76 million in 2023 – monitoring group

Updated 14 May 2024
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Internally displaced people reached 76 million in 2023 – monitoring group

  • Almost 90 percent of the total displacement was attributed to conflict and violence
  • The group reported a total of 3.4 million movements within Gaza in the last quarter of 2023

GENEVA: Conflicts and natural disasters left a record nearly 76 million people displaced within their countries last year, with violence in Sudan, Congo and the Middle East driving two-thirds of new movement, a top migration monitoring group said Tuesday.
The Internal Displacement Monitoring Center report found that the number of internally displaced people, or IDPs, has jumped by 50 percent over the past five years and roughly doubled in the past decade. It doesn’t cover refugees — displaced people who fled to another country.
The report tracks two major sets of information. It counted 46.9 million physical movements of people in 2023 — sometimes more than once. In most of those cases, such as after natural disasters like floods, people eventually return home.
It also compiles the cumulative number of people who were living away from their homes in 2023, including those still displaced from previous years. Some 75.9 million people were living in internal displacement at the end of last year, the report said, with half of those in sub-Saharan African countries.
Almost 90 percent of the total displacement was attributed to conflict and violence, while some 10 percent stemmed from the impact of natural disasters.
The displacement of more than 9 million people in Sudan at the end of 2023 was a record for a single country since the center started tracking such figures 16 years ago.
That was an increase of nearly 6 million from the end of 2022. Sudan’s conflict erupted in April 2023 as soaring tensions between the leaders of the military and the rival Rapid Support Forces broke out into open fighting across the country.
The group reported a total of 3.4 million movements within Gaza in the last quarter of 2023 amid the Israeli military response to the Oct. 7 attacks in Israel. That means that many people moved more than once within the territory of some 2.2 million. At the end of the year, 1.7 million people were displaced in Gaza.
Group director Alexandra Bilak said the millions of people forced to flee in 2023 were the “tip of the iceberg,” on top of tens of millions displaced from earlier and continuing conflicts, violence and disasters.
The figures offer a different window into the impact of conflict, climate change and other factors on human movement. The UN refugee agency monitors displacement across borders but not within countries, while the UN migration agency tracks all movements of people, including for economic or lifestyle reasons.


Pakistan PM unveils broader plan to sell most state-owned firms

Updated 14 May 2024
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Pakistan PM unveils broader plan to sell most state-owned firms

  • Announcement comes amid talks on new IMF loan
  • There can’t be any strategic commercial SOEs, says ex-minister

ISLAMABAD: Pakistan will privatise all state-owned enterprises, with the exception of strategic entities, Prime Minister Shehbaz Sharif said on Tuesday, broadening its initial plans to sell only loss-making state firms to shore up its shaky finances.
The announcement came after Sharif headed a review meeting of the privatization process of loss-making state enterprises (SOEs), according to a statement from his office, which discussed a roadmap for privatization from 2024 to 2029.
“All of the state-owned enterprises will be privatised whether they are in profit or in losses,” Sharif said, adding that offloading the SOEs will save taxpayers’ money.
The statement didn’t clarify which sectors would be deemed strategic and non-strategic.
The announcement came a day after an International Monetary Fund (IMF) mission opened talks in Islamabad for a new long-term Extended Fund Facility (EFF), following Pakistan’s completion of a $3 billion standby arrangement last month, which had averted a sovereign debt default last summer.
Privatization of loss-making SOEs has long been on the IMF’s list of recommendations for Pakistan, which is struggling with a high fiscal shortfall and a huge external financing gap. Foreign exchange reserves are hardly enough to meet up to a couple of months of controlled imports.
The IMF says SOEs in Pakistan hold sizable assets inn comparison with most Middle East countries, at 44 percent of GDP in 2019, yet their share of employment in the economy is relatively low. The Fund estimates almost half of the SOEs operated at a loss in 2019.
Patchy success so far
Past privatization drives have been patchy, mainly due to a lack of political will, market watchers say.
Any organization that is involved in purely commercial work can’t be strategic by its very nature, which means there can’t be any strategic commercial SOEs, former Privatization Minister Fawad Hasan Fawad told Reuters on Tuesday.
“So to me there are really no strategic SOEs,” he said.
“The sooner we get rid of them the better. But this isn’t the first time we have heard a PM say this and this may not be the last till these words are translated into a strategic action plan and implemented.”
Islamabad has for years been pumping billions of dollars into cash-bleeding SOEs to keep them afloat, including one of the largest loss-making enterprises
Pakistan International Airline, which is in its final phase of being sold off, with a deadline
later this week to seek expressions of interest from potential buyers.
The pre-qualification process for PIA’s selloff will be completed by end-May, the privatization ministry told Tuesday’s meeting, adding discussions were underway to sell the airline-owned Roosevelt Hotel in New York.
It also said a government-to-government transaction on First Women Bank Ltd. was being discussed with the United Arab Emirates, and added that power distribution companies had also been included in the privatization plan for 2024-2029.
“The loss-making SOEs should be privatised on a priority basis,” Sharif said.


Russian president Putin to make a state visit to China this week

Updated 14 May 2024
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Russian president Putin to make a state visit to China this week

  • The Kremlin in a statement confirmed the trip and said Putin was going on Xi’s invitation

BEIJING: Russian President Vladimir Putin will make a two-day state visit to China this week, the Chinese Foreign Ministry said Tuesday.
Putin will meet Chinese leader Xi Jinping during his visit starting on Thurday, it said.
The Kremlin in a statement confirmed the trip and said Putin was going on Xi’s invitation. It said that this will be Putin’s first foreign trip since he was sworn in as president and began his fifth term in office.
The two continent-sized authoritarian states, increasingly in dispute with democracies and NATO, seek to gain influence in Africa, the Middle East and South America. China has backed Russia’s claim that President Vladimir Putin launched his assault on Ukraine in 2022 because of Western provocations, without producing any solid evidence.


Pro-Palestinian protesters cleared from Geneva university

Updated 14 May 2024
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Pro-Palestinian protesters cleared from Geneva university

  • Geneva university officials had asked the protesters on Monday to vacate the premises and protest in a different manner.
Geneva: Swiss police moved in early Tuesday to remove some 50 pro-Palestinian student protesters holed up in a Geneva university building for nearly a week, media reports said.
About 20 officers entered the UniMail building around 0300 GMT, a journalist from the Keystone-ATS news agency said.
“Most of the students were sleeping. After being gathered they were led to the underground parking garage,” Julie Zaugg, a journalist with LemanbleuTV channel, said on X.
She said they shouted pro-Palestinian slogans before being handcuffed and taken away in vans.
Geneva university officials had asked the protesters on Monday to vacate the premises and protest in a different manner.
Students demonstrations have gathered pace across Western Europe in recent weeks with protesters demanding an end to the Gaza bloodshed and to cut ties with Israel, taking their cue from demonstrations that have swept US campuses.
There have been similar protests in other Swiss universities and polytechnic schools including Lausanne, Berne, Basel and Zurich.
The bloodiest ever Gaza war began with Hamas’s October 7 attack on Israel, which resulted in the deaths of more than 1,170 people, mostly civilians, according to an AFP tally based on Israeli official figures.
Militants also seized hostages, of whom Israel estimates 128 remain in Gaza, including 36 the military says are dead.
Israel’s bombardment and offensive in Gaza have killed at least 35,091 people, mostly women and children, according to the health ministry in the Hamas-run territory.