Month: August 2019

Terrorism In Kashmir Valley

Scrapping 370 – Can Govt Bear The Cost?

By Seema Guha
Internal dimensions look scary in Kashmir as terrorism is likely to increase in the months to come and hardcore jihadi groups will mushroom across the state

Muscular nationalism is Prime Minister Narendra Modi’s USP. That policy has paid rich dividends to his party. Some would say the Uri surgical attack and the Balakot air strike, were responsible for the BJP’s comprehensive 2019 election victory.

Buoyed by the success, the government has now scrapped Article 370, and stripped Kashmir of the special status it enjoyed since 1947. Not just that, but the state has been bifurcated and made into two union territories. But, has Modi carried it too far this time? Will this bold act, hugely popular with the rest of the country, come to haunt the BJP in years to come? How this plays out in the valley and in the larger neighbourhood is yet to be determined.

Pakistan has expectedly reacted with shock and anger, calling it a violation of the UN resolution. Islamabad will mount an all-out diplomatic offensive against India. It has downgraded ties with New Delhi, asked Indian High Commissioner Ajay Bisaria to leave and suspended the Samjhauta Express. The little trade there was with India will also stop now. People in Punjab would be worried about what happens to the Kartarpur project, since the bilateral relations have reached such a low point. But that remains to be seen.

India has asked Pakistan to review its decision and said that it was done with an eye to grab international attention and present an “alarming picture to the world.’’ It is well known that the international community is concerned about a possible nuclear flash point in South Asia. Now more than ever, considering the rising tension between the two nuclear armed neighbours.

Islamabad has always maintained that Kashmir is a “disputed’’ territory and a solution to the problem must be worked out between India, Pakistan and the people of Kashmir. Prime Minister Imran Khan has predicted that the freedom movement will gain momentum in the valley. This is certainly a given considering that there has been no consultations with the people at all. Kashmir has also been in lock-down mode since Sunday.

Islamabad has already called for a meeting of the Organisation of Islamic Co-operation (OIC) to discuss the situation in Kashmir. The OIC will certainly issue a statement, but beyond that not much can be expected. India has worked on ties with both Saudi Arabia and the UAE, the prime movers of the group. The Gulf states are now engrossed with Iran, Yemen and Syria, in their immediate neighbourhood. The UAE has already backed India. “The reorganisation of states is not a unique incident in history of independent India and it was mainly aimed at reducing regional disparity and improving efficiency. It is an internal matter as stipulated by the Indian Constitution,” Dr Ahmad Al Banna, the UAE’s ambassador to India has said.

Pakistan will also take up Kashmir to the United Nations Security Council. The Human Rights Council in Geneva will also be approached. There will be a flurry of diplomatic activity with Islamabad possibly sending out envoys to world capitals to explain what India’s latest action means. Pakistan expects Kashmir to go up in flames but as of now the heavy military presence has ensured there are no protests in the valley.

Can Pakistan galvanise world opinion against India? Has Delhi handed over Kashmir in a platter to Pakistan? Can India get away with it at a time when each nation is looking out for itself and unlike in the past the liberal values — human rights and moral positions — are no longer at the core of international diplomacy. The liberal world is crumbling and the BJP government must have taken all this into account before going ahead with its latest Kashmir move.

It is but natural that Pakistan will play its Afghan card to the hilt. At a time when the US –Taliban talks have reached a crucial stage, Washington will not wish for distraction on the India-Pakistan front .Pakistan will let the US know that the situation in Kashmir would distract Islamabad and shift its focus from peace moves in Afghanistan to the India-Pakistan border.

PTI reported a State Department spokesman as saying: “The US is closely following India’s legislation regarding the new territorial status and governance of Jammu and Kashmir. We note the broader implications of these developments, including the potential for increased instability in the region.”

Hostile fire across the India-Pakistan border has continued unabated in the last few years. Tension between the nuclear armed neighbours is something Washington does not need at the moment. Prime Minister Imran Khan has already said that a terror strike in the valley now could even provoke a full scale war between the two arch rivals. This is something which will worry the Trump administration. President Donald Trump, facing elections next year wants a complete US troop pull- out before that. A military confrontation between India and Pakistan would be the last thing Washington wants at the moment when an agreement with the Taliban appears imminent. Perhaps with this in India, the US has said there was an “urgent need” for dialogue among all actors to reduce tensions and to avoid a potential military escalation in South Asia. Washington has also asked Pakistan to ensure that infiltration does not occur. This is to make sure that a military confrontation does not take place at this crucial juncture.

The US pointsman for Afghanistan, Ambassador Zalmay Khalilzad was in Delhi on Tuesday and briefed foreign minister Jaishankar on the Taliban talks. The Indian minister must have also given the envoy a briefing on India’s recent action regarding Kashmir. Little is known about the talks. From the photograph and relaxed body language of the two, the talks appear to have gone smoothly.

China has already expressed its concern about developments in Kashmir. It has questioned the bifurcation of Ladakh. “China is seriously concerned about the current situation in Kashmir,’’ went on to say that the issue is a legacy of history between India and Pakistan. In a separate statement, the Chinese foreign ministry reacted to India’s decision to create Ladakh as a Union Territory. “China always opposes India’s inclusion of Chinese territory in the western section of the China-India boundary under its administrative jurisdiction,” it said. “This position is firm and consistent and has never changed. The recent unilateral revision of domestic laws by the Indian side continues to undermine China’s territorial sovereignty, which is unacceptable.’’

The MEA has said that the re-organization of the state is India’s internal matter and reminded China that it did not comment on its domestic issues. China faces resistance from local Muslims in Xinjiang, from Dalai Lama’s followers in Tibet, as well as pro-democracy activists in Hong Kong.

With foreign minister S Jaishankar slated to visit China from the 11-13 of the month, this issue will come up for discussion. It is not yet certain how this will pan out with China. But with a trade war on with the US, President Xi Jinping has other more serious issues to worry over.

Two major regional players, Russia and Iran have not yet commented on the latest government move. The world’s appetite for liberation wars, or moral rights and wrongs are no longer as they were earlier. Pakistan’s own credibility is low. Considering all this, while there will be some amount of criticism of India’s actions in Kashmir and China will needle India with this whenever necessary, it will not abruptly overturn the gains of the Wuhan spirit.

More important perhaps is the internal dimensions of the new Kashmir policy. Kashmir valley can be held down by force but at a massive cost. Terrorist attacks will increase in the months and years to come. Hard core jihadi groups will mushroom across the state. The young people have demonstrated earlier how they can face the might of the Indian state. Stone throwing school children will perhaps now take up arms. Kashmiris will feel they have nothing to lose. Few in the valley believe that development will come to the state now that the contentious article 370 is out of the way.

AS Dulat, former RAW chief and the man late prime minister Vajpayee used to help the peace process said in a recent interview that Kashmiris have once again been let down by India. Pakistan will naturally take advantage and continue to stoke the fire. Keeping down a sullen alienated population will not be an easy task for India’s security forces.

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Modi Woos J&K Youth With Employment

By LokMarg Publishing
Wooing the youth of Jammu and Kashmir, Prime Minister Narendra Modi on Thursday assured them that local youth will receive employment as public and private sectors would be encouraged and vacant posts in government would be filled up expeditiously.

“Local youth will receive employment. Both public and private sectors companies will be encouraged to create jobs for the local youths in the state. The vacant posts in Jammu and Kashmir will be filled and this will surely benefit the youth of Jammu and Kashmir. Projects like building IIT, IIM and AIIMS will be initiated as well as the government will work on power projects and setting up of Anti-corruption Bureau,” he said in his address to the nation.

the address coming two days after Parliament approved measures to abrogate Art 370 and bifurcate the state into two Union Territories, Modi also asserted that the financial benefits for Central government employees, including security forces, like LTC, HRA and more will be provided to those posted in Jammu and Kashmir.

He said the work force in Jammu and Kashmir will now be able to enjoy the benefit of Minimum Wages Act, which till now remained only on paper.

Emphasising on education and women empowerment, he said: “The rights enjoyed by our daughters in other parts of the country were not enjoyed by the daughters of Jammu and Kashmir but now they will get benefit of all government schemes and children will enjoy the Right to Education.”

He said his government has tried to bring a ‘new and different work culture’ in Jammu and Kashmir to benefit over 1.5 crore people.

“We have tried to bring a ‘new and different work culture’ in Jammu and Kashmir. All the projects blocked for decades have been expedited by the government,” he said.

The Prime Minister said the Jammu and Kashmir administration has been in touch with the Centre since Governor’s rule was imposed in the state.

Highlighting the problems faced by the J-K people during the elections, he said: “The democracy in our nation is very strong but you will be surprised to know that in Jammu and Kashmir there are thousands of people who could not vote in elections or get a chance to contest them.”

“During elections, SC, ST and individuals from other backward communities in other states would enjoy special benefits but the same did not apply for Jammu and Kashmir,” he added.

Modi gave assurance to the people of Jammu and Kashmir that the government will work towards their welfare and they will come out of the negative environment created by a few and witness a new prosperous future.

He said that with revoking Article 370, the government has decided to put Jammu and Kashmir under its governance and this decision has been taken after careful consideration.

He said Jammu and Kashmir and Ladakh have the potential to become the biggest tourist destination in the world.

“Jammu and Kashmir and Ladakh have the potential to become the biggest tourist destination in the world. The government has started working on all the steps and reforms required in this direction,” Prime Minister Modi said.

Emphasising on the potential of Ladakh in the sphere of tourism, the Prime Minister said: “Ladakh has the potential to become the largest centre of spiritual tourism, adventure tourism and ecotourism. It can also become a major centre of solar power generation “

Prime Minister requested the film industry to come to these regions for shooting their projects.

He said now there will be a proper use of the power and creation of new opportunities for development without discrimination.

Prime Minister added that organic and several herbal products are scattered across Jammu and Kashmir and Ladakh.

“If organic and several herbal products are identified and marketed then it will greatly benefit the people and farmers of these regions,” he said urging the enterprises from the country to come forward for this initiative.

(ANI)

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Flood Wreaks Havoc In South, West

By LokMarg Publishing
A meeting of the National Crisis Management Committee (NCMC), chaired by Cabinet Secretary PK Sinha was held on Thursday to review the prevailing flood situation in Maharashtra, Karnataka, Kerala and Gujarat.

According to a press note, the Cabinet Secretary took stock of the current situation, preparedness, rescue and relief operations and directed that immediate assistance, as sought by the states, be provided to meet the crisis.

“As of now 55 teams of the NDRF are deployed in these states and 19 more are expected to reach tonight/tomorrow morning. 16 columns of the Army, 30 rescue teams of the Navy and Coast Guard, along with helicopters, aircrafts and boats, have been pressed into service. Additional boats are also being deployed in Maharashtra and Karnataka,” the press note said.

“IMD has stated that there has been very heavy rainfall in these States over the past few days and predicted that more rains are expected in Gujarat, Maharashtra and coastal Karnataka over the next two days.”

“It was also directed to release necessary advance from the State Disaster Response Fund to the affected states. Concerned agencies were also advised to undertake immediate work relating to crop insurance claims,” it added.

Senior officials of the Ministries of Home, Defence, Water Resources as well as those from NDRF, NDMA and Central Water Commission attended the meeting.

Chief Secretaries and other senior officers from the state governments participated in the meeting through video conference. (ANI)

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Pakistan Suspends Samjhauta Express

By LokMarg Publishing
A day after deciding to downgrade ties with India, Pakistan on Thursday stepped up its offensive by suspending the Samjhauta Express train that runs between the two countries and banning Indian films.

Pakistan will not remain silent regarding the ‘Indian atrocities’ in Jammu and Kashmir, Minister of Railways, Sheikh Rasheed Ahmad told a press conference today adding that the services of Samjhauta Express, facilitating people-to-people ties with India, would be suspended “forever”.

“The Indian government has changed all laws in Jammu and Kashmir. The entire history has been changed. They have also revoked the Articles that provided special rights and status to the people in that region. But we won’t remain silent. Our Muslim brethren in Jammu and Kashmir are suffering,” he said.

“Following the tension between India and Pakistan, all services of Samjhauta Express will be suspended forever,” he added.

Meanwhile, speaking to the media outside Parliament House, Special Assistant to the Prime Minister on Information and Broadcasting, Firdous Ashiq Awan, said no Indian movie will be screened in Pakistani cinema.

She said a policy is being formulated to ban every sort of Indian cultural content in Pakistan, Dunya News reported.

Awan said that there is a complete ban on media and other sources of information in Kashmir.

The moves by Islamabad comes in the aftermath of the abrogation of Article 370 and Article 35 (A) by the BJP-led Central government that provided special rights and status to Jammu and Kashmir.

Last night after a meeting of the National Security Council chaired by Prime Minister Imran Khan, Pakistan decided to downgrade diplomatic ties. It asked India to withdraw its High Commissioner to Pakistan and also decided not to send its High Commissioner-designate to New Delhi. It also partially shut off its airspace and suspended bilateral trade with India.

The Samjhauta Express, commonly called the Friendship Express, is a bi-weekly train–Thursday and Monday–that runs between Delhi and Attari in India and Lahore in Pakistan since 1976 after the Shimla Accord between the two countries. The word Samjhauta means “agreement”, “accord” and “compromise” in both Hindi and Urdu.

Last time, the operations of Samjhauta Express were suspended on February 28, following the Pulwama terror attack that was carried out by Pakistan-based terror group Jaish-e-Mohammed or JeM that killed more than 40 CRPF jawans on February 14. But it was resumed shortly later.

Calling its steps in Jammu and Kashmir as an “entirely internal affair”, India has further rejected Pakistan’s unilateral move to downgrade diplomatic ties and asked Islamabad to review them so that normal channels for diplomatic communications are preserved.

(ANI)

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Triple Talaq Ban – Gender Justice Or Political Agenda?

By Mahendra Ved
The political pendulum has now swung from one extreme to the other, from ‘appeasement’ to ‘appropriation’ of the community

It is not unusual, given the great churning India is going through, to welcome legislation, soon to be law, with a few caveats and some apprehensions.

With Rajya Sabha doing so last week, both Houses of Parliament have passed the Muslim Women (Protection of Rights on Marriage) Bill, 2019,  that makes talaq-e-biddat a criminal offence. It provides for three years’ imprisonment to a Muslim husband who divorces his wife by pronouncing the word ‘talaq’ thrice, irrevocably, in one sitting.

ALSO READ: The Law Will Get Me The Respect I Deserve

After a prolonged, yet inconclusive, debate in parliament, by top judiciary and the academia, if one excludes sections of the Muslim clergy, the conservatives and sections of the political class (for reasons both legal and political), the move has received widespread approval.

With that India, having the world’s third largest Muslim population, is on par with several Islamic countries, including Sudan, Egypt, Iran, Jordan, Morocco, Tunisia, Algeria, Yemen and Iraq. Of those with similar social norms to India, Pakistan and Bangladesh had outlawed it in 1961. It remains in vogue in Sri Lanka.

Indian Muslims are governed by the Muslim Personal Law (Shariat) Application Act of 1937, as interpreted by the All India Muslim Personal Law Board (AIMPLB). This body comprising mainly Sunni ulema, has rigidly stuck to its turf and opposes any ‘interference’ in the ‘divine’ law.

But others like Professor Tahir Mahmood, an internationally recognized expert on sharia law, support a ban on triple talaq. Mahmood recently told Scroll, an Indian news website: “Ignorance, obstinacy, blind belief in religion and morbid religiosity are undoubtedly the factors responsible for triple talaq being allowed in India.”

ALSO READ: This Law Will Empower Muslim Women

Lawyer-politician Arif Mohammed Khan, who played a key role in drafting the legislation, says despite prohibition, this practice is rampant in Pakistan and many with overwhelming influence of the clergy that propagate it as the “word of God” among illiterate masses.

To end the practice effectively, he justifies a law that deters. However, debate persists on this point. Criticism centres heavily on criminalizing of a marriage that is essentially a civil act. The opposition was outvoted on this in parliament.

Then, there are practical issues: How does one adjudicate in a his-word-against-hers exchange between husband and wife? Who will look after the wife, abandoned and in all probability ostracized by the husband’s family through this illegal act? More importantly, the children, once the erring husband goes to jail? The problem is acute if the wife has no independent income and worse if she is not accepted in her parental home.  

Despite this law as a deterrent, the practice is unlikely to end soon. Law Minister Ravi Shankar Prasad who piloted the bill, said some 300 marriages dissolved under the spell of instant talaq while the debate was on. In 2017 alone, 574 instant divorces had occurred, just before the Supreme Court declared it illegal.

Seeking to implement this verdict, the government amended some provisions of its original legislation, making the offence cognizable only if the affected wife, or one related to her by blood or marriage, files a police complaint. A man arrested under this law may get bail, after the Magistrate grants a hearing to the wife. Thirdly, the offence is compoundable, that is, the parties may arrive at a compromise.

Questions persist. Why this new law when wife and children’s abandonment, failure to provide for them and dowry harassment can be tackled under the existing law? Once the apex court has declared instant talaq illegal, what is the need for criminalizing it?  The bill doesn’t convincingly answer these and many other questions.

The government has chosen to give teeth through a three-year jail term, ostensibly in keeping with a general approach that makes many other laws, even traffic violation, stringent with higher punishment.

Moving on to giving credit and the blame, a less-talked aspect of the debate is that the predecessor Congress-led government had studied status of India’s Muslims through a commission headed by late Justice Rajinder Sachar. A committee it formed to assess Muslim women’s status said in 2013 that the triple talaq “makes wives extremely vulnerable and insecure regarding their marital status”.

However, over half-a-century in power, the Congress followed the liberal/secular approach of leniency to ‘protect’ the minorities. In the case of Muslims, it adopted the British colonial practice of tackling the community through its generally orthodox clergy. This got institutionalized as AIMPLB in 1973.

The Bharatiya Janata Party (BJP) and its government accuse the Congress and the Left parties of ‘appeasing’ the Muslims and holding them as “vote bank.” Now it ingeniously takes the credit for this Muslim-specific law enacted in the name of “gender justice”. The political pendulum has now swung from one extreme to the other, from ‘appeasement’ to ‘appropriation’ of the community.

This fits in with the BJP’s majoritarian agenda and its two-pronged strategy of neutralizing the community’s vote while seeking support from among its women.

There is another less-talked aspect that needs attention. Given the rising education levels among Muslim women, especially in the cities, it is conceivable that they would vote for Prime Minister Modi for this act. Statistics of the last two decades show that more Muslim girls are entering schools and colleges and into the work force when compared to boys who are either not inclined to study or are required to turn family’s bread-earners early in life.

The community leaders are subdued. The AIMPLB has not reacted. Save some Muslim lawmakers, there is no significant opposition. Including a Congress in disarray, the Opposition was out-maneuvered and outvoted. The government managed the numbers even in the Rajya Sabha where it is in minority, first by engineering defections and then ensuring absenteeism.

India is on the cusp of social and political change. The challenges are all-round and more layered as the changes are being initiated by a Hindu right-wing majority party. Its triumphal mood is palpable.

Doubts and apprehensions arise as it seeks to ‘protect’ women of a community when its men are lynched by right-wing vigilantes if they happened to be cattle traders. Why single out one community when others, too, require reforms?

The social and political cost of not having a Uniform Civil Code (UCC) is showing. Besides being mandated by Article 44 of the Constitution, the UCC is also part of the BJP’s agenda. It would unite India in true fashion where citizens irrespective of religion would follow the same laws for marriage, divorce, succession, etc.

Will Modi and his government bite the bullet while seeking to earn everyone’s saath and vishwas (support and trust)?

The writer can be reached at mahendraved07@gmail.com

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Kashmiri Pandits

‘Kashmiri Pandits've Got Freedom In 2019’

By LokMarg

LokMarg meets a section of Kashmiri Pandits who were pushed out of Kashmir in 1980s and 90s and have been living in Delhi-NCR since. The community cannot hide their sense of satisfaction at the scrapping of Article 370.

30 Bills Passed In 1st Lok Sabha Session

By LokMarg Publishing
Parliament passed 30 bills in the just-concluded session, creating a record for the number of bills passed in a single session after the constitution of a new Lok Sabha, an official release said on Wednesday.

The release issued by Parliamentary Affairs Ministry said that the session has been historic in many ways as legislations relating to almost all walks of socio and economic activities have been passed.

“Thirty bills have been passed by both the houses of Parliament in this session which is a record in single first/effective session after constitution of new Lok Sabha,” the release said.

Noting that the session has seen “extraordinary output”, the release said 40 Bills (33 in Lok Sabha and 7 in Rajya Sabha) were introduced. Thirty-five bills were passed by Lok Sabha and 32 by Rajya Sabha. The Modi government does not have a majority in the upper house.

The productivity of Lok Sabha was about 137 per cent and that of Rajya Sabha about 103 per cent.

Referring to health sector reforms, the release said that four Bills – National Medical Commission Bill, 2019, the Homoeopathy Central Council (Amendment) Bill, 2019, the Indian Medical Council (Amendment) Bill, 2019 and the Dentist (Amendment) Bill, 2019 have been passed by both Houses.

It said that National Medical Commission Bill, 2019 was “a revolutionary reform in medical field” which provides for a National Medical Commission for development and regulation of all aspects relating to medical education and medical profession and a Medical Advisory Council to advise and make recommendations to the Commission.

Referring to social and gender justice, the release said The Muslim Women (Protection of Rights on Marriage) Bill, 2019 which declares the triple talaq/talaq-e-biddat void is a major step towards grant of gender justice to the Muslim women.

It said Consumer Protection Bill,2019, seeks to revamp the consumer protection mechanism by repealing earlier Law and providing for the establishment of Central Consumer Protection Authority to promote, protect and enforce the rights of consumers.

The Jammu and Kashmir Reservation (Amendment) Bill, 2019 extends the benefits of reservation available to persons residing in areas near the Actual Line of Control to the people residing in the areas adjoining International Border.

The Protection of Children from Sexual Offences (Amendment) Bill, 2019 makes the punishment for sexual offences against children more stringent.

The release said that three bills – the National Investigation Agency (Amendment) Bill, 2019; the Unlawful Activities (Prevention) Amendment Bill, 2019 and Protection of Human Rights (Amendment) Bill, 2019 have been passed to strengthen national security apparatus and strike a balance between national security aspects and human rights during the session.

On economy and ease of doing business, the release mentioned the New Delhi Arbitration Centre Bill, 2019, the Arbitration and Conciliation (Amendment) Bill, 2019 and the Insolvency and Bankruptcy Code (Amendment) Bill, 2019 had been passed.

The bills promote and strengthen the alternate dispute resolution system and Non Performing Asset management system and were a step forward in building confidence among investors, it said.

The Special Economic Zone (Amendment) Bill, 2019 seeks to include “trust or entity” within the definition of a person under the parent Act so as to expand the scope of entrepreneurs who can set up units in the SEZ.

The Banning of Unregulated Deposit Schemes Bill, 2019 provides a comprehensive mechanism to ban the unregulated deposit schemes.

Referring to labour reforms, the release said that Code on Wages Bill, 2019 has been enacted after amalgamating the Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Payment of Bonus Act, 1965 and the Equal Remuneration Act, 1976.

It said the Code will facilitate ease of compliance of labour laws and was a step forward for equity, the release said.

On transport reforms, it said that the Motor Vehicle (Amendment) Bill, 2019 seeks to address the issues relating to road safety, citizen facilitation, public transport, automation and computerisation besides increasing fines and penalties for violation of provisions.

The Airport Economic Regulatory Authority of India (Amendment) Bill, 2019 will enable adoption of a tariff-based bidding system for engaging private partners in infrastructure projects at airports besides amending the definition of a major airport, it said.

The release said that results were achieved “due to excellent floor coordination in both the Houses” by ministers in the Ministry of Parliamentary Affairs under the leadership of Prime Minister Narendra Modi.

It said that during a discussion on the National Medical Commission Bill, and the Motor Vehicle (Amendment) Bill in Rajya Sabha, the ministers accepted some suggestions of opposition members and moved official amendments.

The release said that the session has started a new practice of not adjourning the House for the entire day in case of death of a sitting member and adjourning it for a few hours to transact the essential business of the day.

The first session of 17th Lok Sabha started from June 17 and the session of Rajya Sabha from June 20. The Lower House of parliament was adjourned sine die on Tuesday and the upper House on Wednesday.

Lok Sabha had 37 sittings and Rajya Sabha had 35 sittings.

(ANI)

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Wagah Border Ceremony

Pak Suspends Bilateral Trade With India

By LokMarg Publishing
Pakistan on Wednesday decided to downgrade diplomatic relations with India and suspend all bilateral trade in the wake of India’s decision to strip Jammu & Kashmir of its special status and to make it a Union Territory.

Prime Minister Imran Khan chaired a meeting of the National Security Committee and discussed the situation arising out of the “unilateral illegal” actions by the Indian government in Jammu and Kashmir and along the Line of Control (LoC).

In the meeting, the Committee decided to downgrade all diplomatic relations with India and review all bilateral arrangements with New Delhi. It further noted that the matter would be taken to the United Nations, including the UN Security Council, the government said in a tweet.

The meeting was attended by Foreign Minister Shah Mehmood Qureshi, Defence Minister Pervez Khattak, Interior Minister Ijaz Ahmad Shah, Minister for Education, Minister for Human Rights, Minister for Kashmir Affairs and Gilgit Baltistan, Law Minister, Adviser Finance, Chairman Joint Chiefs of Staff Committee, Chief of Army Staff of the Pakistan Army, Chief of Air Staff, Chief of Naval Staff, Special Assistant to the Prime Minister (SAPM) on Information Firdous Ashiq Awan, Director-General of Inter-Services Intelligence, Director General- Inter-Services Public Relations, Secretary Foreign Affairs and other senior officers.

Reaffirming commitment to the Kashmir cause and “its political, diplomatic and moral support” to the people of Jammu and Kashmir, the Committee stressed, “Independence Day this August 14 to be observed in solidarity with brave Kashmiris and their just struggle for their right of self-determination. August 15 will be observed as Black Day.”

Rattled by India’s landmark decisions scrapping the special status of Jammu and Kashmir and converting the state into a Union Territory, Pakistan on said that it will exercise “all possible options” to counter the steps.

(ANI)

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Reserve Bank Cuts Repo Rate To 5.4%

By LokMarg Publishing
The Reserve Bank of India (RBI) on Wednesday cut repo rate for the fourth consecutive time this calendar year to 5.4% from the current 5.75% amid low inflation, faltering economic growth and uncertain global scenario.

Consequently, the reverse repo rate under liquidity adjustment facility stands revised to 5.15 per cent, and the marginal standing facility (MSF) rate and the bank rate to 5.65 per cent. The six-member monetary policy committee (MPC) headed by Governor Shaktikanta Das also decided to maintain the accommodative stance of monetary policy.

More significantly, the central bank lowered the GDP growth forecast for current financial year 2019-20 to 6.9 per cent from 7 per cent earlier. It said the GDP growth could be in the range of 5.8 to 6.6 per cent in first half (H1 FY20) and 7.3 to 7.5 per cent in second half (H2 FY20) with some risks somewhat tilted to the downside.

However, the GDP growth for first quarter of next fiscal (Q1 2020-21) is projected at 7.4 per cent. India’s economy grew by only 6.8 per cent in 2018-19, according to government data. In the fourth quarter (January to March), the growth dipped to 5.8 per cent, marking a five-year low.

“Addressing growth concerns by boosting aggregate demand, especially private investment, assumes the highest priority at this juncture while remaining consistent with the inflation mandate,” said Das after the three-day MPC meeting.

“These decisions are in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of plus or minus 2 per cent while supporting growth,” he said. Retail inflation at 3.18 per cent in June has remained below the RBI’s medium-term target of 4 per cent for almost a year.

Since the last policy, domestic economic activity continues to be weak with the global slowdown and escalating trade tensions posing downside risks, said the RBI. Private consumption, the mainstay of aggregate demand, and investment activity remain sluggish.

“Even as past rate cuts are being gradually transmitted to the real economy, the benign inflation outlook provides headroom for policy action to close the negative output gap. Addressing growth concerns by boosting aggregate demand, especially private investment, assumes the highest priority at this juncture while remaining consistent with the inflation mandate,” said the RBI.

All members of the MPC unanimously voted to reduce the policy repo rate and maintain the accommodative stance. While Ravindra Dholakia, Michael Debabrata Patra, Bibhu Prasad and Shaktikanta Das voted to reduce the policy repo rate by 35 basis points, Chetan Ghate and Pami Dua voted to reduce it by 25 basis points.

On February 7, April 4 and June 6, the central bank had reduced the key lending rate by 25 basis points to infuse liquidity and push growth. Repo rate is the rate at which the RBI lends money to commercial banks. A repo rate cut allows banks to reduce interest rates for consumers on loans, and lowers equal monthly instalments on home loans, car loans and personal loans.

Industry leaders say a substantial cut in the repo rate and bank lending rates are needed to boost manufacturing and domestic demand and bolster economic growth.

However, there is another concern among government officials that commercial banks with massive bad debts and weak deposit growth are not automatically passing through the RBI’s repo rate cuts to borrowers.

A worrying factor for the new government led by Prime Minister Narendra Modi is the unemployment rate. Recent data showed that it stood at 6.1 per cent — the highest in 45 years.

Finance Minister Nirmala Sitharaman said after presenting the Union Budget for 2019-20 that she would like to see a significant reduction in the RBI policy rate to shore up the economic growth.

(ANI)

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