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Saudi Arabia and Iran Woo Incoming Pakistani Prime Minister
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Imran Khan referee of the match between Iran and Saudi Arabia Click to enlarge (© Catherine BISSON-SERIAN / Satrapia) The offer was most immediately related to a statement by Asad Umar, Pakistan’s new finance minister-in-waiting, that Pakistan would decide on whether to seek a bailout from the International Monetary Fund (IMF) or friendly nations such as China and Saudi Arabia by the end of September. Pakistan reportedly is looking to possibly ask the IMF for a US$12 billion bailout package. The country’s foreign exchange reserves have plummeted over the past year. Chinese loans have so far kept Pakistan afloat. Pakistan’s currency, the rupee, has been devalued four times since December and lost almost a quarter of its value. It was unclear whether the loan by the Jeddah-based Islamic Development Bank (IDB) would be in addition to IDB’s activation in late July of a three-year US$4.5-billion oil financing facility for Pakistan intended to stabilize the rupee-dollar exchange rate in the interbank market that has largely remained (...)
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Did Putin Sell Tehran to Trump?
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No communiqué was issued following the Trump-Putin summit in Helsinki, leaving the field open for speculation. However, in the two leaders’ joint press conference and subsequent interviews and briefings, the outlines of some agreements emerged, especially concerning Syria. Helsinki Pub Click to enlarge (© Satrapia) Both leaders’ remarks hinted that the civil war in Syria was coming to an end, although Putin insisted on the need to crush terrorists in south-west Syria while keeping the forces of Syria and Israel separated. Even though he made no reference to the future status of Iranian troops inside Syria, Trump declared the “United States will not allow Iran to benefit from our successful campaign against ISIS”. Earlier, he had emphasised during a May 17 meeting with Bashar al-Assad (...) -
World Bank Update on Tajikistan
According to the IMF, total gross external debt as a percentage of GDP for Tajikistan averaged 59.3% between 2000 and 2014, and was estimated at 67.9% in 2017. Tajikistan’s external debt is projected to keep rising in 2018 and 2019 as the government ramps up construction of the Rogun dam and other infrastructure projects. On the other hand, ADB experts think to maintain their current growth momentum, Tajikistan must invest almost 8% of GDP in infrastructure. Tajikistan’s real GDP growth accelerated to 7.1% in 2017, from 6.9% in 2016. The poverty rate continued to slowly decline, falling to an estimated 29.5% in 2017. Going forward, the economy is expected to benefit from an improving regional environment and stable commodities prices. Strong economic growth and a continuing (...)
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Securing Xinjiang
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The emergence of a security component is not only highlighted by the establishment last year of China’s first foreign military base in Djibouti, but also in its stepped-up security cooperation with Afghanistan and other Central Asian nations that border on its north-western province of Xinjiang. Xinjiang Uygur Autonomous Region China’s security focus (...) -
Urbanization in Kazakhstan
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Urbanization in Kazakhstan (PDF) Seitz, William Hutchins. 2018. Urbanization in Kazakhstan : desirable cities, unaffordable housing, and the missing rental marke (English). Policy Research working paper; no. WPS 8530. Washington, D.C. : World Bank Group. (Click to download) The findings of William Seitz in its report to World Bank show that the two (...)
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EBRD Supports Kazakh Launch of New Financial Hub
In an attempt to bolster the country’s role as a major financial hub in Central Asia and along the route of the Belt and Road Initiative the government of Kazakhstan has officially inaugurated the Astana International Financial Centre (AIFC) in the capital today.
The AIFC development plays an important role in the overall reform agenda of the country: it will help channel domestic and foreign investment to Kazakhstan, stimulate growth, set new standards of (...)
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Uzbekistan Goes Electric
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In the same time, we learned that the Chinese company Changan Automobile Group intends to organize the production of electric vehicles (EV) in Uzbekistan’s Ferghana Valley. Talks on the issue were held recently in the Ministry of Innovative Development of Uzbekistan. Representatives of the Chinese company expressed their intention to consider the possibility of building an assembly line for EVs with prospects of production localization. It is planned to invest (...) -
Opening Up in the Caucasus and Central Asia
Opening Up in the Caucasus and Central Asia (PDF) This Departmental Paper was prepared by IMF staff under the supervision of Juha Kähkönen and Mark Horton. (Click to download)
External shocks that have affected the CCA region since 2014 have placed pressure on macroeconomic balances and the current growth model. As a result of lower commodity prices, weaker remittances, and slower growth in key trading partners (Russia and China), growth and current account (...)
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