The 7th edition of the India-France Joint Military Exercise “Shakti” is set to begin on May 13 at the Joint Training Node in Umroi, Meghalaya. This exercise aims to enhance the joint military capabilities of both nations for Multi-Domain Operations in sub-conventional scenarios. According to an official statement from the Public Relations Officer (PRO) Defence, Guwahati, the exercise will run from May 13 to May 26. The Opening Ceremony was attended by Thierry Mathou, the Ambassador of France to India, and Major General Prasanna Sudhakar Joshi, General Officer Commanding 51 Sub Area. “Shakti” is a biennial training event held alternately in India and France, with the previous edition conducted in France in November 2021.

The Indian contingent comprising 90 personnel is being represented primarily by a Battalion of the RAJPUT Regiment besides personnel from other arms and services. Observers from the Indian Navy and the Indian Air Force will also form part of the exercise. The French contingent comprising 90 personnel will be represented mainly by personnel from the 13th Foreign Legion Half-Brigade (13th DBLE).

“The Aim of Exercise SHAKTI is to enhance the joint military capability of both sides to undertake multi-domain operations in a sub-conventional scenario under Chapter VII of the United Nations Mandate,” the release added.

Further, the joint exercise will focus on operations in semi-urban and mountainous terrain. Objectives to be achieved from the joint training are a high degree of physical fitness, rehearsing and refining drills for operations at the tactical level, and sharing of best practices.

Tactical drills to be practiced during the Exercise will include response to a terrorist action of capturing a defined territory, the establishment of a Joint Command Post, the establishment of an Intelligence & Surveillance Centre, securing of a helipad/landing site, Small Team Insertion & Extraction, Special Heliborne Operations, Cordon & Search Operations besides the employment of drones and counter-drone systems among others.

Exercise SHAKTI will enable the two sides to share their best practices in Tactics, Techniques, and Procedures for conducting joint operations. The joint exercise will facilitate the development of interoperability, bonhomie, and camaraderie between armed forces personnel of the two countries. This will also enhance the level of defense cooperation, further fostering bilateral relations between the two friendly nations.

The Indian government on Monday provided a budget support to Maldives in the form of a rollover of USD 50 million Treasury bill.

The Indian government extended budget support to the Maldives by rolling over a USD 50 million Treasury Bill for an additional year, as requested by Maldivian Foreign Minister Moosa Zameer. The State Bank of India subscribed to the Government Treasury Bill for another year upon maturity of the previous subscription. Under this unique Government-to-Government arrangement, SBI provides zero-cost (interest-free) subscriptions to the Government of Maldives, as stated by the Indian High Commission in Maldives.

“The continuation of subscription has been made at the special request of the Government of Maldives to secure budgetary support from the Government of India,” the statement read.

The Maldivian Foreign Ministry, in their statement, stated that the Indian government’s decision to roll over the T-Bill comes after Maldivian Foreign Minister Moosa Zameer requested the External Affairs Minister S Jaishankar during his official visit to India earlier this month.

The ministry further appreciated the Indian government’s support to the Maldives in the form of budgetary allocation.

“Large number of infrastructural developmental projects and High Impact Community Developmental projects are underway with the assistance from the Government of India, which consists of a notable part as grant assistance,” the statement stated.

The Maldivian government looks forward to continuing the collaborative partnership between the two countries for the mutual benefit and prosperity of their people, it added.

India nears landmark deal with Iran to manage Chabahar Port, enhancing regional connectivity and strategic influence.

India is poised to finalize a deal with Iran for the management of Chabahar Port over the next ten years, marking India’s inaugural overseas port management venture. Shipping Minister Sarbananda Sonowal is set to journey to Iran for the signing ceremony on Monday.

Efforts are underway to link Chabahar Port with the International North-South Transport Corridor (INSTC), enhancing India’s connectivity with Russia through Iran. “As and when a long-term arrangement is concluded, it will clear the pathway for bigger investments to be made in the port,” Foreign Minister S Jaishankar told reporters in Mumbai.

By leveraging Chabahar Port, India aims to bypass Pakistan and establish direct access to Afghanistan and beyond, into Central Asia. Chabahar Port holds strategic importance for India as it serves as a vital link connecting the country to Afghanistan, Central Asia, and the broader Eurasian region. Moreover, this initiative is seen as a counterbalance to Pakistan’s Gwadar port and China’s Belt and Road Initiative.

Discussions on the development of Chabahar date back to 2003. In 2013, India committed to investing $100 million towards the development of Chabahar. The partnership on Chabahar Port was established in 2016 during Prime Minister Narendra Modi’s visit to Iran. During this time, India also agreed to invest $85 million in the development of the Shahid Beheshti terminal. In 2018, then Iran president Hassan Rouhani further discussed expanding India’s role in the port, and discussions have continued during subsequent high-level exchanges.

While the existing pact between the two nations covers operations at the Shahid Beheshti terminal and is renewed annually, the new 10-year agreement is designed to supersede the original contract, providing a more robust framework for India’s involvement in Chabahar Port’s operations.

Landlocked Central Asian nations, such as Kazakhstan and Uzbekistan, also stand to benefit significantly from leveraging Chabahar as a gateway to the Indian Ocean Region and Indian markets.

The timing of the agreement coincides with the escalating crisis in West Asia following Israel’s attack on Palestine, which has disrupted key trade routes and accentuated the urgency of bolstering regional connectivity. The Ministry of External Affairs (MEA) in April approved a proposal for India Ports Global to assume operational control of Myanmar’s Sittwe Port in the Bay of Bengal.

Sonowal’s visit during this critical juncture highlights the importance of the impending agreement, which has been in the pipeline for several years.

Pakistan aims to rollover $12 billion debt from key allies and negotiate new financing from China to address its external financing gap, as disclosed by Finance Ministry insiders.

Pakistan has decided to seek a rollover of approximately $12 billion in debt from key allies like China in the upcoming fiscal year of 2024-25 to bridge a significant $23 billion gap in its external financing. The aim is to meet budget targets before the anticipated arrival of an International Monetary Fund (IMF) team to address the country’s financial challenges.

Finance Ministry insiders disclosed that Pakistan plans to rollover $5 billion from Saudi Arabia, $3 billion from the UAE, and $4 billion from China. Additionally, the estimated budget for the next fiscal year includes new financing from China, with negotiations expected to commence in mid-May ahead of the budget presentation in June.

The federal government aims to achieve budget targets prior to the IMF review mission’s arrival, instructing ministries to complete set targets before negotiations on the new loan program. The details will be provided to the IMF delegation once these targets are met. Furthermore, the budget strategy paper is set to be approved by the federal cabinet before the IMF review mission’s visit.

The Finance Ministry has initiated preparations for the budget, outlining targets for debt repayment, defense budget, and tax collections. Additionally, development and ongoing budget targets will be determined as part of the budget preparation process.

Pakistan has long grappled with meeting its external liabilities, relying on remittances, export proceeds, and foreign loans. However, exports have not kept pace with imports, and avenues for foreign aid have diminished, straining the economy and essential imports. Last year, Pakistan narrowly avoided default through a short-term loan agreement with the IMF, providing $3 billion over nine months. Now, the country seeks a fresh loan to address its economic challenges.

Remittances from Pakistani workers abroad have been a significant source of support, with the country receiving the second-highest remittances of the ongoing fiscal year at $2.8 billion in April 2024. According to the State Bank of Pakistan, remittances increased by 3.5 percent to $23.8 billion in the first 10 months of FY24 compared to the same period last year. Remittance inflows in April 2024 were primarily from Saudi Arabia, the United Arab Emirates, the United Kingdom, and the United States. These remittances peaked near $3 billion in March 2024, marking a 23-month high.

Separately, Pakistan is engaging with Chinese leadership to revive over 1800-megawatt hydropower projects and attract investment from new Chinese companies in the transmission and distribution network as part of the second phase of the China-Pakistan Economic Corridor (CPEC). A high-level delegation led by Planning Minister Ahsan Iqbal is currently in China to pursue existing investors and financial institutions and tap into more firms in the transmission and distribution network.

In his meeting, Iqbal sought China’s continued cooperation in the early implementation of hydropower projects. Both sides agreed to hold the next round of the Joint Working Group meeting on Energy soon.

In summary, Pakistan’s efforts to address its financial challenges involve seeking debt rollovers, securing new financing, and leveraging remittances from overseas workers. Additionally, the country is pursuing collaboration with China to advance key infrastructure projects under the CPEC. These measures aim to stabilize Pakistan’s economy and pave the way for sustainable growth.

Pakistan’s financial landscape reflects a complex interplay of domestic and international factors, where strategic alliances, economic policies, and global partnerships intersect to shape the nation’s economic trajectory. Amidst the ongoing challenges, the country’s leadership remains focused on addressing fiscal deficits, meeting external financing requirements, and fostering economic resilience.

The decision to seek a rollover of debt from key allies like China underscores Pakistan’s efforts to navigate its external financing gap and stabilize its economy. By engaging with strategic partners, Pakistan aims to alleviate immediate financial pressures and create a conducive environment for sustainable growth. The reliance on debt rollovers reflects the intricacies of managing external liabilities while balancing fiscal obligations and developmental priorities.

At the heart of Pakistan’s financial strategy lies the imperative to achieve budget targets and address structural imbalances before the anticipated arrival of an IMF team. The proactive approach adopted by the federal government underscores a commitment to fiscal prudence and proactive economic management. By setting clear targets and mobilizing resources, Pakistan aims to strengthen its financial position and bolster investor confidence.

The forthcoming negotiations with the IMF represent a critical juncture in Pakistan’s economic trajectory, offering an opportunity to realign policies, implement reforms, and chart a path towards sustainable development. The willingness to engage constructively with international financial institutions reflects a recognition of the importance of external support in addressing economic challenges and unlocking growth potential.

Against the backdrop of economic reforms and financial restructuring, Pakistan’s reliance on remittances emerges as a crucial lifeline, providing vital support to the economy amidst external pressures. The resilience of remittance inflows underscores the resilience of Pakistan’s diaspora community and their enduring commitment to the country’s development. By harnessing the potential of remittances, Pakistan can diversify its funding sources, reduce dependency on external loans, and promote inclusive growth.

The engagement with China under the auspices of the China-Pakistan Economic Corridor (CPEC) represents a cornerstone of Pakistan’s economic agenda, offering a transformative vision for infrastructure development, energy security, and regional connectivity. The revival of hydropower projects and investment in transmission and distribution networks signal a renewed commitment to advancing strategic initiatives that stimulate growth, create employment opportunities, and enhance energy access. The ongoing dialogue with Chinese leadership underscores the depth of the bilateral partnership and the mutual commitment to realizing shared objectives. By leveraging China’s expertise, resources, and technology, Pakistan can accelerate the pace of infrastructure development and unlock the full potential of the CPEC. The collaboration between the two countries exemplifies the principles of South-South cooperation and the potential for mutually beneficial partnerships in driving sustainable development.

As Pakistan navigates the complex terrain of economic reform and restructuring, the imperative of inclusive growth and social development remains paramount. The commitment to inclusive policies, poverty alleviation, and social protection underscores a holistic approach to economic governance that prioritizes the well-being of all citizens. By investing in human capital, social infrastructure, and equitable opportunities, Pakistan can lay the foundation for long-term prosperity and resilience.

In a nutshell, Pakistan’s economic journey reflects a multifaceted tapestry of challenges, opportunities, and strategic imperatives. By embracing a proactive approach to fiscal management, engaging constructively with international partners, and harnessing the potential of remittances and strategic alliances, Pakistan can chart a course towards sustainable development and prosperity. The path ahead may be fraught with obstacles, but with resilience, determination, and strategic vision, Pakistan can overcome challenges and realize its full potential on the global stage.

India and Nigeria have decided to finalize a local currency settlement system agreement soon and have identified several areas of focus for economic cooperation, including digital economy and digital public infrastructure, crude oil and natural gas, and pharmaceuticals. These decisions follow the 2nd session of the India-Nigeria Joint Trade Committee held in Abuja on Thursday.

Nigeria is India’s 2nd largest trading partner in the Africa region. Bilateral trade between India and Nigeria stood at USD 11.8 billion in 2022-23. However, in 2023-24, bilateral trade declined to 7.89 billion. With a total investment of USD 27 billion, approximately 135 Indian companies are actively engaged in Nigeria’s vibrant market. These investments span diverse sectors, including infrastructure, manufacturing, consumer goods, and services.

A seven-member delegation from India led by Additional Secretary, Department of Commerce, Ministry of Commerce and Industry Amardeep Singh Bhatia, accompanied by High Commissioner of India to Nigeria G Balasubramanian and Economic Adviser, Department of Commerce Priya P. Nair, held a Joint Trade Committee (JTC) meeting with their Nigerian counterparts in Abuja from 29-30 April 2024. The JTC was co-chaired by Permanent Secretary, Federal Ministry of Industry, Trade and Investment, Nigeria, Ambassador Nura Abba Rimi, and Additional Secretary, Department of Commerce.

In a comprehensive dialogue, both sides undertook a detailed review of recent developments in bilateral trade and investment ties and acknowledged the vast untapped potential for further expansion. To this effect, both sides identified several areas of focus for enhancing both bilateral trade as well as mutually beneficial investments. These areas include resolving market access issues, cooperation in key sectors such as crude oil and natural gas, pharmaceuticals, unified payments interface, local currency settlement system, power sector and renewable energy, agriculture and food processing, education, transport, railway, aviation, MSME development, etc.

The official delegation from India included officials from the Reserve Bank of India (RBI), EXIM Bank of India, and National Payments Corporation of India (NPCI). The officials from both sides actively engaged in the proceedings of the JTC, showing an enthusiastic response towards greater cooperation, addressing pending issues, boosting trade and investment, and fostering greater people-to-people contacts.

In a concerted effort to bolster bilateral trade, both sides committed to expeditiously address all issues impeding bilateral trade and facilitate trade promotion between the two nations. A business delegation led by CII (Confederation of Indian Industry) also accompanied the official delegation, comprising representatives from various sectors like power, fintech, telecommunications, electrical machinery, pharmaceuticals, etc.

The deliberations of the 2nd Session of the India-Nigeria JTC were cordial and forward-looking, indicative of the amicable and special relations between the two countries.