Panic buying sees Pakistan face ‘artificial shortage’ of diesel ahead of IMF loan review

Special Panic buying sees Pakistan face ‘artificial shortage’ of diesel ahead of IMF loan review
Pakistani commuters wait for their turn to fill vehicles at a gasoline station in Islamabad, Pakistan. (AFP/File)
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Updated 25 April 2022

Panic buying sees Pakistan face ‘artificial shortage’ of diesel ahead of IMF loan review

Panic buying sees Pakistan face ‘artificial shortage’ of diesel ahead of IMF loan review
  • Islamabad has asked the world body to extend $6 billion pact, boost funding by $2 billion
  • Government expected to roll back popular fuel subsidies to meet lender’s demands

ISLAMABAD: Panic buying across Pakistan is fueling an “artificial shortage” of diesel, the Ministry of Energy said on Monday, as Islamabad is expected to roll back fuel price subsidies amid the government’s efforts to revive its $6 billion loan program from the International Monetary Fund.

Pakistan, facing economic challenges after a new government took over this month from ousted Prime Minister Imran Khan, has asked the IMF to extend its loan program and increase the funding by an extra $2 billion to help ease difficulties in financing, the country’s Finance Minister Miftah Ismail has said.

The South Asian country has agreed to roll back subsidies to the oil and power sectors, the IMF said in a statement, ahead of a mission visit next month “to resume discussions” on the loan program, when officials are expected to thrash out details on the bailout package.

The likely increase in diesel prices has fueled a shortage across Pakistan, with farmers among those struggling to secure enough fuel as the country is in the peak of the wheat harvesting season. The Ministry of Energy said Pakistan has enough diesel supply.

“This is an artificial shortage as Pakistan has enough diesel reserves available to fulfill the demand,” Rabbiya Khalid, a spokesperson for the ministry, told Arab News.

“People should stop panic buying. There is absolutely no shortage of diesel in Pakistan.”

The shortage has also hit the country’s most populous Punjab province, where wheat harvesting has been delayed as a result.

“The diesel shortage is hurting the farmers and delaying the wheat harvesting,” Mian Muhammad Umair Masood from the Pakistani farmers’ association, Pakistan Kissan Ittehad, told Arab News.

Masood said the delay in wheat harvesting would impact the sowing of other crops, including cotton, maize and rice, and called on the government to continue the fuel subsidy to support the farmers.

“The oil shortage at this crucial time could lead to food insecurity in the country,” he said. “Diesel is mainly used in agriculture, and a fuel subsidy to farmers means additional crop yield and food security.”

The new government, promising populist measures, had kept fuel prices unchanged this month to provide relief to its citizens. But aid from the world lender appears critical as Pakistan grapples with Asia’s second-fastest inflation rate, and as its foreign exchange reserves fell to less than two months of import cover.

The IMF suspended its $6 billion loan to Pakistan in 2020, after Pakistan failed to meet its lending conditions. The plan was revived last year under tougher conditions agreed to by Khan’s administration, including raising oil prices and electricity tariffs, but the increases were rolled back in response to public anger over rising living costs.

Pakistan revises prices of petroleum products every 15 days, and the next revision is scheduled for April 30. It is expected that fuel prices would increase to fulfill the IMF’s demands.

Samiullah Tariq, head of research at Pakistan Kuwait Investment, said that sufficient stock of the diesel was available in the country, and the shortage was “temporary” as oil company dealers expected a price hike by the end of this month.

“The government should announce the revised oil prices as early as possible to end this artificial shortage,” Tariq told Arab News.

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DUBAI: Lesotho has inaugurated a $11.2 million water supply project that will supply clean water to five cities in the south African country.

Funded by the Saudi Fund for Development (SFD), the project aims to sustain water resources and provide clean water sources in Lesotho as well as mitigate effects of drought in the country to ensure water and food security.

The undertaking will see the laying of a 210-kilometer-long pipe network and the construction of 25 pumping stations.

Saudi Arabia, through the SFD, supports developing countries achieve their development goals by providing grants, technical aid as well soft loans and since its inception in 1975 has provided 730 development loans to finance 692 development projects and programs in 84 developing countries.


Rohingya refugees in India’s capital to be given flats, security

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Rohingya refugees in India’s capital to be given flats, security

Rohingya refugees in India’s capital to be given flats, security
  • There have been isolated incidents of violence toward Rohingya in India

NEW DELHI: Rohingya refugees from Myanmar in India’s capital will be allotted apartments and provided with police protection, a government minister said on Wednesday, signalling a change in the stance toward members of the Muslim minority.
“India has always welcomed those who have sought refuge,” Minister for Housing and Urban affairs Hardeep Singh Puri said on Twitter, outlining new provisions for Rohingya refugees in New Delhi.
“India respects & follows UN Refugee Convention 1951 & provides refuge to all, regardless of their race, religion or creed,” Puri said.
Puri did not elaborate on what he said would be “round-the- clock” police protection but there have been isolated incidents of violence toward Rohingya in India.
Prime Minister Narendra Modi’s government has previously tried to send back members of the Muslim minority from predominately Buddhist Myanmar, hundreds of thousands of whom have fled from persecution and waves of violence in their homeland over the years.


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South Korea president says any talks with Pyongyang should be more than show
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SEOUL: Talks with North Korea should not be for political show but contribute to establishing peace, South Korean President Yoon Suk-yeol said on Wednesday, speaking at a wide-ranging press conference to mark his first 100 days in office.
Yoon repeated his willingness to provide phased economic aid to North Korea if it ended nuclear weapons development and began denuclearization, noting that he had called for a dialogue with Pyongyang since his campaign.
“Any dialogue between the leaders of the South and North, or negotiations between main working-level officials, should not be a political show, but should contribute to establishing substantive peace on the Korean peninsula and in Northeast Asia,” he said.
The comments were an apparent criticism of a series of summits involving his predecessor Moon Jae-in, North Korean leader Kim Jong Un, and then-US President Donald Trump.
Despite those meetings, denuclearization talks stalled in 2019 and North Korea has said it will not trade away its self-defense, though it has called for an end to sanctions. It has been observed preparing for a possible nuclear test, which would be its first since 2017.
South Korea was not in a position to guarantee the North’s security if it gave up its nuclear weapons, but Seoul did not want a forced change in the status quo in the North, Yoon said.
The North’s recent missile tests and nuclear development has revived debate over whether the South should pursue its own nuclear weapons. Yoon said that he was committed to the Treaty on the Non-Proliferation of Nuclear Weapons (NPT) and working with the United States to boost its “extended deterrence” for South Korea.
“The NPT should not be abandoned and I will adhere to that until the end,” he said.


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Updated 17 August 2022

Rudy Giuliani set to testify in Georgia election probe

Rudy Giuliani set to testify in Georgia election probe
  • It’s unclear how much the former New York mayor and attorney for Trump will be willing to say

ATLANTA: Rudy Giuliani is scheduled to appear in an Atlanta courthouse to testify before a special grand jury that is investigating attempts by former President Donald Trump and others to overturn his 2020 election defeat in Georgia.
It’s unclear how much the former New York mayor and attorney for Trump will be willing to say now that his lawyers have been informed he’s a target of the investigation. Questioning will take place behind closed doors Wednesday because the special grand jury proceedings are secret.
Yet Giuliani’s appearance is another high-profile step in a rapidly escalating investigation that has ensnared several Trump allies and brought heightened scrutiny to the desperate and ultimately failed efforts to overturn Democrat Joe Biden’s 2020 election win. It’s one of several investigations into Trump’s actions in office as he lays the groundwork for another run at the White House in 2024.
Fulton County District Attorney Fani Willis opened her investigation after the disclosure of a remarkable Jan. 2, 2021, phone call between Trump and Georgia Secretary of State Brad Raffensperger. On the call, Trump suggested that Raffensperger could “find” the exact number of votes that would be needed to flip the election results in Georgia.
Trump has denied any wrongdoing. He has described the call as “perfect.”
Willis last month filed petitions to compel testimony from seven Trump associates and advisers. She has also said she’s considering calling Trump himself to testify, and the former president has hired a legal team in Atlanta that includes a prominent criminal defense attorney.
In seeking Giuliani’s testimony, Willis noted that he was both a personal attorney for Trump and a lead attorney for his 2020 campaign.
She recalled in a petition how Giuliani and others appeared at a state Senate committee meeting in late 2020 and presented a video that Giuliani said showed election workers producing “suitcases” of unlawful ballots from unknown sources, outside the view of election poll watchers. The claims of fraud were debunked by Georgia election officials within 24 hours. Yet Giuliani continued to make statements to the public and in subsequent legislative hearings claiming widespread election fraud using the debunked video, Willis noted in her filing.
Two of the election workers seen in the video, Ruby Freeman and Wandrea “Shaye” Moss, said they faced relentless harassment online and in person after it was shown at the Dec. 3 Georgia legislative hearing in which Giuliani appeared. At another hearing a week later, Giuliani said the footage showed the women “surreptitiously passing around USB ports as if they are vials of heroin or cocaine.” They actually were passing a piece of candy.
Willis wrote in the court filing that Giuliani’s hearing appearance and testimony were “part of a multi-state, coordinated plan by the Trump Campaign to influence the results of the November 2020 election in Georgia and elsewhere.”
Willis also wrote in a petition seeking the testimony of attorney Kenneth Chesebro that he worked with Giuliani to coordinate and carry out a plan to have Georgia Republicans serve as fake electors. Those 16 people signed a certificate declaring falsely that Trump had won the 2020 presidential election and declaring themselves the state’s “duly elected and qualified” electors even though Biden had won the state and a slate of Democratic electors was certified.
Giuliani’s attorneys tried to delay his appearance before the special grand jury, saying he was unable to fly due to heart stent surgery in early July.
But Fulton County Superior Court Judge Robert McBurney, who’s overseeing the special grand jury, said during a hearing last week that Giuliani needed to be in Atlanta on Wednesday and could travel by bus, car or train if necessary.
Other Trump allies have also been swept up in the probe. Sen. Lindsey Graham, a South Carolina Republican, received a subpoena ordering him to appear for testimony on Aug. 23. Graham has challenged that subpoena, citing his protections as a member of Congress. A judge on Monday rejected that argument and said he must testify. Graham has said he’ll appeal.
Willis has indicated she is interested in calls between Graham and Raffensberger about the results in Georgia in the weeks after the election.


US cuts water supply for some states, Mexico as drought bites

US cuts water supply for some states, Mexico as drought bites
Updated 17 August 2022

US cuts water supply for some states, Mexico as drought bites

US cuts water supply for some states, Mexico as drought bites
  • Despite years of warnings and a deadline imposed by Washington, states that depend on the river have not managed to agree on a plan to cut their usage

LOS ANGELES: Water supplies to some US states and Mexico will be cut to avoid “catastrophic collapse” of the Colorado River, Washington officials said Tuesday, as a historic drought bites.
More than two decades of well below average rainfall have left the river — the lifeblood of the western United States — at critical levels, as human-caused climate change worsens the natural drought cycle.
Despite years of warnings and a deadline imposed by Washington, states that depend on the river have not managed to agree on a plan to cut their usage, and on Tuesday, the federal government said it was stepping in.
“In order to avoid a catastrophic collapse of the Colorado River System and a future of uncertainty and conflict, water use in the Basin must be reduced,” said Tanya Trujillo, assistant secretary for water and science at the US Interior Department.
Arizona’s allocation from the river will fall by 21 percent in 2023, while Nevada will get eight percent less. Mexico’s allotment will drop by seven percent.
California, the biggest user of the river’s water and the most populous of the western states, will not be affected next year.
The Colorado River rises in the Rocky Mountains and snakes its way through Colorado, Utah, Arizona, Nevada, California and northern Mexico, where it empties into the Gulf of California.
It is fed chiefly by snowpack at high altitudes, which melts slowly throughout the warmer months.
But reduced precipitation and the higher temperatures caused by humanity’s unchecked burning of fossil fuels means less snow is falling, and what snow exists, is melting faster.
As a consequence, there is not as much water in the river that supplies tens of millions of people and countless acres of farmland.
The states that use the water have been locked in negotiations over how to slash usage, but missed a Monday deadline to cut a deal, so Washington stepped in.
Officials in upstream states hit out Tuesday at what they saw as an unfair settlement, with California exempted from any cuts.
“It is unacceptable for Arizona to continue to carry a disproportionate burden of reductions for the benefit of others who have not contributed,” said a statement by Tom Buschatzke, director of the state’s Department of Water Resources and Ted Cooke, general manager of the Central Arizona Project.
Deputy Interior Secretary Tommy Beaudreau said his department — which oversees US water supplies — was “using every resource available to conserve water and ensure that irrigators, Tribes and adjoining communities receive adequate assistance.”
“The worsening drought crisis impacting the Colorado River Basin is driven by the effects of climate change, including extreme heat and low precipitation,” he said.
“In turn, severe drought conditions exacerbate wildfire risk and ecosystems disruption, increasing the stress on communities and our landscapes.”
The western United States is suffering under a drought that is now in its 23rd year, the worst episode in more than 1,000 years.
That drought has left swathes of the country dry and vulnerable to hotter, faster and more destructive wildfires.
Communities served by the Colorado River, including Los Angeles, have been ordered to save water, with unpopular restrictions in place on outdoor watering.
Those restrictions are unevenly adhered to, with some lawns — especially in the plushest parts of Los Angeles and its surroundings — still remarkably green.