On Christmas Day, Indian prime minister Narendra Modi made an unexpected, unscheduled and most surprising visit to Lahore. He was received by the Pakistani prime minister, Nawaz Sharif, whose birthday falls on that date. It was also the day that Mr Sharif’s granddaughter was married.
Mr Modi was invited home by his counterpart with the customary Lahore hospitality and, after a brief but pleasant visit, flew on to New Delhi.
Since his election in 2014, Mr Modi has generally been hostile towards Pakistan. In fact, it appeared on occasions that he was determined to embarrass his counterpart, Mr Sharif.
What caused the volte face? Analysts on both sides of the border are still speculating.
Some, such as the former Indian diplomat MK Bhadrakumar, think it was due to American pressure.
Others hint at quiet diplomacy, claiming that Mr Modi’s previous hostility was due to pressures from within his Hindu-nationalist BJP party. Some have even hinted that this overture from Mr Modi is due to certain reassurances made by the Pakistan army. I think the earlier theories are possibilities, but the last one is difficult even to consider.
I also find it difficult to accept the contention of those analysts who feel that Mr Modi found himself in an impossible situation and, against his own wishes, was pressured into adopting a strong anti-Pakistan position.
Those commentators who are not enamoured of Mr Modi have expressed the view that he is intent on facilitating overland access from India to Afghanistan to benefit Indian businesses with interests in Afghan iron-ore mines. This is certainly a possibility.
Commenting on Mr Modi’s visit to Lahore, Indian essayist Pankaj Mishra said that “believing that Modi’s Christmas mission will produce a great and enduring bonanza, including his own change of heart, may be a bit like believing in Santa Claus”.
Then what happened? I admit that I, too, am guessing. But my basic premise is that all politicians are usually more sensitive to domestic pressures, particularly those that might have an effect on future elections.
While the extent of Mr Modi’s success in the April-May 2014 elections was a surprise, it should not have been. He adopted a bold, unapologetic stance for the anti-Muslim riots that happened in Gujarat under his watch as chief minister, and he did not display any desire to soften his attitude towards Pakistan during his campaign for election as prime minister.
Much of his success can be attributed to across-the-board rejection by the Indian electorate of the corrupt and inept Congress leadership which had long held the reins of government.
But that was not all. Mr Modi was elected despite his anti-Muslim background because he promised a “shining India”. His country was desperate for an economic recovery, and his economic record as chief minister of Gujarat from 2001 to 2014 was most impressive.
However, a year and a half down the line, India is far from shining. Many Indians who expected Mr Modi to grow in stature as a statesman after the elections have been disillusioned.
He seems to have met very few of the expectations that many Indians had of him. Many respected people have protested against growing Hindu extremism in India, which they accuse Mr Modi of fostering.
Meanwhile, thanks to the China-Pakistan Economic Corridor (CPEC), Pakistan seems to be economically on the rise.
One of Pakistan’s greatest geostrategic strengths is its location as the junction of the Middle East, Central Asia and South Asia. For that reason alone, Indian overland access to resources, particularly energy, is dependent on Pakistan.
I think Mishra’s reasoning is the most accurate in this context. He says: “The key to Modi’s chameleon-like behaviour lies in the realisation that he is, as his own senior colleague, LK Advani, pointed out, a ‘brilliant and efficient events manager’.”
Mishra notes that Mr Modi rose quickly in the staid world of Indian politics partly because he was the first politician to recognise the imperative of inserting himself into the 24-hour news cycle, of manipulating social media and hosting massive spectacles to impress the rich, powerful and influential.
But that is not all. If India is to benefit from CPEC and/or gain access to Central Asia, it cannot do so without Pakistan. And, after trying Iran as an alternative, Mr Modi has surely realised that Pakistan is its only economically viable option.
I am as sceptical as Mishra and others and doubt that Mr Modi has had a genuine change of heart towards Pakistan. However, he has understood how politically weakened he is and he is desperate to deliver on the economic front.
It is within these parameters that Pakistan can work with him; very carefully and cautiously, weighing each option well and from every angle before it falls for his wooing.
Brig Shaukat Qadir is a retired Pakistani infantry officer
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More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
What is graphene?
Graphene is extracted from graphite and is made up of pure carbon.
It is 200 times more resistant than steel and five times lighter than aluminum.
It conducts electricity better than any other material at room temperature.
It is thought that graphene could boost the useful life of batteries by 10 per cent.
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