India and Pakistan have agreed to try to defuse tensions along the Line of Control – the de facto border between the two countries in Kashmir – following nearly three weeks of fighting on both sides of the frontier.
But even as the agreement was announced on Monday, the two countries exchanged fresh fire after an Indian soldier was killed in an overnight militant raid on two Indian military camps.
The national security advisers of India and Pakistan spoke over the phone late on Sunday.
“Both officials stressed on the need to establish contact to reduce tensions along the Line of Control,” said Sartaj Aziz, the foreign affairs adviser to Pakistani prime minister Nawaz Sharif, on Monday.
He added, however, that Pakistan would not yield on its claim over the disputed territory of Kashmir.
“The prime minister had indicated quite clearly that till the issue of Kashmir [is] resolved, tensions across the border would remain,” Mr Aziz said.
Hours after the security advisers spoke, militants armed with guns and grenades attacked two Indian military camps, located in the garrison town of Baramulla on India’s side of the territory.
One soldier died and another was wounded. The militants escaped after a two-hour firefight, according to media reports.
Sunday night's episode was a small-scale version of the September 18 attack by militants upon an Indian army base in the Uri sector of Kashmir. That attack left 19 soldiers dead, sparking a phase of tense friction between the two nuclear-armed countries.
India has long held that such militants are trained and sponsored by Pakistan, and that they infiltrate Indian territory with the support and knowledge of Pakistan’s security forces.
In an apparent response, India announced on Wednesday night that it had carried out "surgical strikes" on terrorist "launch pads", across the Line of Control in Pakistan-held Kashmir. Although Pakistan denied that such an operation took place at all, the strikes raised global fears that they would escalate the fraught situation into full-blown war.
On Friday, United Nations secretary general Ban Ki-moon said he was deeply concerned and called upon both countries to “exercise maximum restraint”.
Chinese foreign ministry spokesperson, Geng Shuang, said the day after the strikes: “We hope that India and Pakistan can enhance communication and properly deal with differences and work jointly to maintain peace and security in the region.”
Prime minister Narendra Modi, who said after the Uri attack that it would not go unpunished, reassured the international community on Sunday that India was not seeking an all-out war.
“This country has never been hungry for land. We have never attacked any other country,” Mr Modi said.
A promise to abate tensions did not necessarily mean drawing down troops from their current positions along the Line of Control, said Sushant Singh, a New Delhi-based defence analyst and a former lieutenant colonel in the Indian Army.
“The two countries will try to reel back the sporadic ceasefire violations that have been happening,” Mr Singh said. “But more than anything else, I think they will try to cut down on the sort of political statements they’ve been making that have been raising the temperature over the last few weeks.”
ssubramanian@thenational.ae
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Your Guide to the Home
- Level 1 has a valet service if you choose not to park in the basement level. This level houses all the kitchenware, including covetable brand French Bull, along with a wide array of outdoor furnishings, lamps and lighting solutions, textiles like curtains, towels, cushions and bedding, and plenty of other home accessories.
- Level 2 features curated inspiration zones and solutions for bedrooms, living rooms and dining spaces. This is also where you’d go to customise your sofas and beds, and pick and choose from more than a dozen mattress options.
- Level 3 features The Home’s “man cave” set-up and a display of industrial and rustic furnishings. This level also has a mother’s room, a play area for children with staff to watch over the kids, furniture for nurseries and children’s rooms, and the store’s design studio.
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.”
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Company%20Profile
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Manikarnika: The Queen of Jhansi
Director: Kangana Ranaut, Krish Jagarlamudi
Producer: Zee Studios, Kamal Jain
Cast: Kangana Ranaut, Ankita Lokhande, Danny Denzongpa, Atul Kulkarni
Rating: 2.5/5