Leaders of Afghanistan, Turkmenistan, Pakistan and its arch rival India jointly inaugurated construction work Friday on the Afghan section of a long-delayed multibillion-dollar gas pipeline connecting the four nations, raising hopes for regional cooperation and peace.

A ceremony took place in the ancient Afghan city of Herat, attended by President Ashraf Ghani, his Turkmen counterpart, Gurbanguly Berdymukhamedov, Pakistani Prime Minister Shahid Khaqan Abbasi and Indian External Affairs Minister M.J. Akbar.

The long-awaited 1,814 kilometer pipeline, known as TAPI, will transport natural gas from the world’s fourth-largest reserves in Turkmenistan through Afghanistan to growing economies of Pakistan and India, which are facing energy shortages.

TAPI was originally conceived in the 1990s, but differences over terms and conditions, unending Afghan hostilities and regional rivalries are blamed for delays. Turkmenistan took the initiative in December 2015 and has since constructed its portion of the pipeline up to the Afghan border.

President Ghani, while addressing Friday’s ceremony, vowed Afghanistan believes in connectivity and will “not spare any efforts” to implement the project to connect South Asia with Central Asia after a century of separation.

“This is the beginning of confidence in Afghanistan, confidence on national unity and harmony of the state and the people of Afghanistan,” noted Ghani.

Pakistani Prime Minister Abbasi reiterated his country’s commitment to peace and stability in Afghanistan.

“We are turning, by the grace of God, TAPI into a reality. It will provide shared regional prosperity … and it will provide peace dividends,” said Abbasi, whose country is accused of covertly supporting the Afghan Taliban, charges Islamabad denies as baseless.

“I want to tell my Afghan brothers and sisters that your success is our success, your development is our development and peace in Afghanistan means peace in Pakistan,” Abbasi emphasized.

He termed TAPI critical for Pakistan’s energy needs, saying it will provide about 10 percent of his country’s total energy consumption.

Expected cost

Officials say the project, estimated to cost up to $10 billion, will carry 33 billion cubic meters of natural gas annually for 30 years and is extendable.

The final cost, however, is anticipated to be much higher because of an accompanying power transmission pipeline and the fiber optic cable to be laid from Turkmenistan to Pakistan.

Afghanistan will buy about five billion cubic meters of gas once the project is completed. Kabul also will earn up to $500 million in transit fees from the project, which Afghans expect will create about 25,000 jobs in their war-shattered nation.

The Afghan section of the pipeline will run through five provinces in the south and southwest, including Herat, Farah, NImruz, and Helmand, before entering the southern Pakistan city of Quetta.

Security concerns

Taliban insurgents control or contest much of the Afghan territory along the TAPI route, raising security concerns for the pipeline.

In a statement issued Friday, though, the insurgent group dismissed those concerns and pledged to protect the pipeline, reminding skeptics the TAPI was initially negotiated and brought to Afghanistan when the Taliban was ruling the country.

The insurgency, which currently controls or influences about 44 percent of Afghan territory, blamed the 2001 U.S.-led invasion of the country for the delay in TAPI’s implementation.

Groundbreaking for the Afghan section took place at a time when Pakistan’s relations with India have deteriorated and both countries are locked in daily border skirmishes in Kashmir.

TAPI is dubbed by some as a “peace pipeline,” citing the potential the project has to promote regional economic and security cooperation. But analysts remain skeptical about future progress in the wake of Islamabad’s prevailing tensions with Kabul and New Delhi.
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Saudi Arabia will stage more than 5,000 shows, festivals and concerts in 2018, double the number of last year, as it tries to shake off its conservative image in a drive to keep tourist dollars at home and lure in visitors.

The state wants to capture up to a quarter of the $20 billion currently spent overseas every year by Saudis seeking entertainment, lifting a ban on cinemas and putting on shows by Western artists.

U.S. rapper Nelly performed in Jeddah in December, albeit to a men-only crowd, and Greek musician Yanni played to a mixed-gender audience.

The gradual relaxing of gender segregation risks causing a backlash from religious conservatives, but public objections to a wider program of reforms have been more muted in recent months after several critics were arrested.

At an event to launch the 2018 entertainment calendar, Ahmed al-Khatib, chairman of the state-run General Entertainment Authority (GEA), said infrastructure investments over the next decade would reach 240 billion riyals ($64 billion), including an opera house to be completed around 2022.

That will contribute 18 billion riyals to annual GDP and generate 224,000 new jobs by 2030, the GEA said.

“The bridge is starting to reverse,” Khatib said, referring to the causeway linking Saudi Arabia with more liberal Bahrain where many Saudis flock for weekend getaways.

“And I promise you that we will reverse this migration, and people from Dubai, Kuwait and Bahrain will come to Saudi.”

However, on Thursday night, the Minister of Culture and Information said Khatib’s opera plans were an infringement of the role of the General Authority for Culture, a separate government body, the Saudi Press Agency said.

Economic hopes

The entertainment plans are largely motivated by economics, part of a reform program to diversify the economy away from oil and create jobs for young Saudis.

The Vision 2030 plan aims to increase household spending on cultural and entertainment events inside the kingdom to 6 percent by 2030 from 2.9 percent.

“We are bringing the most exciting and famous events to Saudi Arabia this year,” Khatib told Reuters in an interview, adding that state-sponsored entertainment events would be staged in 56 cities.

“We are creating new local events with local content,” he said. “Almost 80 percent of the calendar [events] are for families.”

Saudi Arabia lifted a 35-year ban on cinemas late last year, with plans for regional and global chains to open more than 300 movie theaters by 2030. The first cinemas are expected to start showing films in March.

Last year, the country announced plans to develop resorts on some 50 islands off the Red Sea coast and an entertainment city south of Riyadh featuring golf courses, car racing tracks and a Six Flags theme park.
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The European Central Bank has set a deadline of Friday for Latvia’s third-largest bank to plug a financing hole, the country’s finance minister said, as the Baltic state faced its worst financial difficulties in almost a decade.

Earlier, ABLV said it had asked for a 480 million euro ($591 million) emergency loan from the country’s central bank as part of efforts to reopen for business after being forced to halt all payments in the face of money laundering accusations.

The request for credit comes amid frantic efforts by ABLV’s management to keep the bank afloat after U.S. authorities singled it out for money laundering and moved to block it from doing financial deals in dollars.

ABLV has denied any such wrongdoing. “We want to give an opportunity … for the bank to ensure its short-term liquidity, so that it can continue operating,” the Baltic state’s finance minister, Dana Reizniece-Ozola, told a news website, Delfi.lv.

The ECB has imposed a moratorium stopping savers withdrawing their funds or making payments. It declined to comment about the deadline.

In an interview with Reuters, a senior ABLV executive appealed for the group to be spared closure.

“We believe that the bank has a future, on the basis of a substantially reduced business,” Vadims Reinfelds, deputy chief executive, said.

“What we are looking for here is a medium term or even longer term solution. If that is not possible, then resolution is the alternative,” he said, referring to a possible winding down. “The business can be restructured without resolution,” Reinfelds said, adding the bank was solvent.

He warned the bank was “systemic” — a reference to its significance for the financial system and an indication that its problems could spill over to affect others.

The finance minister, however, played down such concerns.

The crisis at ABLV comes alongside a separate police investigation into whether the head of Latvia’s central bank took a bribe of more than 100,000 euros.

Ilmars Rimsevics has dismissed the allegations and said he is the victim of a smear campaign, while the Ministry of Defense has suggested that disinformation may be to blame.

The ministry did not say who was behind this but drew parallels with campaigns before the U.S. elections in 2016. Russia has denied it was behind those campaigns and says it does not meddle in elections in the West.

The episode has cast a shadow over Latvia, which belongs to the euro zone and whose top officials hold influential posts both at the European Commission and European Central Bank.

Experts have said the events raise questions about the ECB, which is responsible for supervision of ABLV and other banks around the euro zone. The ECB has said it is not its responsibility to police money laundering.

Latvia was one of the hardest hit countries in the global financial crisis, falling into recession as the government sought an international bailout, nationalized Parex Bank and made spending cuts amid a wave of emigration.

($1 = 0.8141 euros)

Reporting by John O’Donnell and Gederts Gelzis.
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Afghanistan will host leaders from Turkmenistan, Pakistan and India on Friday for the ground-breaking ceremony of the Afghan section of a much-delayed multi-billion dollar gas pipeline connecting the four nations.

The $10 billion mega project, known as Turkmenistan-Pakistan-Afghanistan-India, or TAPI, will connect Central Asia with South Asia and is expected to become operational this year.

The 1,814-kilometer pipeline will carry an estimated 33 billion cubic meters of natural gas annually for the next 30 years from the world’s fourth-largest reserves in Turkmenistan.

Officials say India and Pakistan would buy around 14 billion cubic meters each, while the remaining five billion would go to Afghanistan.

Friday’s inaugural ceremony will take place in the western Afghan city of Herat where President Ashraf Ghani, his Turkmen counterpart, Gurbanguly Berdymukhammedov, Pakistani Prime Minister Shahid Khaqan Abbasi and India’s Minister of State for External Affairs MJ Akbar will be in attendance.

Turkmenistan launched construction of its section of the pipeline in December 2015.

Pakistan’s relations with Afghanistan and India have since deteriorated over allegations Islamabad is not doing enough to stop terrorist groups from using its soil for attacks against the neighboring countries.Pakistani officials deny the charges.

But despite the tensions, energy-deficient India is showing renewed interest in TAPI and pushing for its operationalization, according to Indian media reports.

“Today, given the energy requirements in India, there are several gas pipeline proposals before us. We are, however, strongly committed to TAPI pipeline project,” Akbar was quoted as saying.

The project is more than the sum of four nations’ interests and creates a benchmark for regional cooperation, he added during an implementation committee meeting in Turkmenistan.

Economic milestone

The Afghan government and business community also see the pipeline as a milestone in the war-shattered country’s economic development. Kabul is expected to earn up to $500 annually in transit duties and the project will help create as many as 25,000 jobs, local media quoted Afghan analysts.

The pipeline mostly runs through parts of southwestern Afghanistan where the Taliban insurgency controls or influences many districts. But a spokesman for the insurgent group, Zabihullah Mujahid, says it supports the project and will ensure the pipeline’s protection.

Herat Governor Mohammad Asif Rahimi told VOA the Afghan and Turkmen presidents will additionally inaugurate work on the construction of a railway link between the two countries, as well as fiber optic connection along the TAPI route.
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South Korea’s cryptocurrency industry is anticipating much better times as the market regulator changes tack from its tough stance on the virtual coin trade, promising instead to help promote blockchain technology.

The regulator said Tuesday that it hopes to see South Korea — which has become a hub for cryptocurrency trade — normalize the virtual coin business in a self-regulatory environment.

“The whole world is now framing the outline [for cryptocurrency] and therefore [the government] should rather work more on normalization than increasing regulation,” Choe Heung-sik, chief of South Korea’s Finance Supervisory Service (FSS), told reporters.

FSS has been leading the government’s regulation of cryptocurrency trading as part of a task force.

Cryptocurrency operators have drawn a new optimism from Choe’s comments, seeing them clearly indicating the government’s cooperation in their plans for self-regulation.

“Though the government and the industry have not yet reached a full agreement, the fact that the regulator himself made clear the government’s stance on cooperation is a positive sign for the markets,” said Kim Haw-joon of the Korea Blockchain Association.

Wednesday’s news is a stark reversal of the justice minister’s warnings in January that the government was considering shutting down local cryptocurrency exchanges, throwing the market into turmoil.

Instead, South Korea banned the use of anonymous bank accounts for virtual coin trading as of January 30 to stop cryptocurrencies being used in money laundering and other crimes.

Bitcoin, the world’s most heavily traded cryptocurrency, is now changing hands at a three-week high of $11,086 on the Luxembourg-based Biststamp exchange after falling as low as $5,920.72 in early February.

South Korean electronics giant Samsung has already started production of cryptocurrency mining technologies, local media reported in January.
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South Korea said on Wednesday it is signing free trade agreements with five Central American nations aimed at boosting market access for the Korean auto sector and electronics makers.

Trade minister Kim Hyun-chong will meet representatives from Costa Rica, El Salvador, Honduras, Nicaragua and Panama in Seoul on Wednesday to sign five separate bilateral pacts which will eliminate duties on about 95 percent of traded goods and services, Korea’s trade ministry said in an e-mailed statement.

The agreements are subject to parliamentary approval in each country, and is likely to take effect at different times depending on the ratification process.

The five trade pacts open South Korea to key Central American countries after its deals with the U.S., the European Union and China helped boost exports.

“The South Korea-Central America free trade deals will enable the countries to build a more comprehensive, strategic partnerships going forward,” Kim said.

The ministry expects the five deals to accelerate South Korea’s economic growth by an overall 0.02 percent in the next 10 years, by boosting exports of cars, steel, cosmetics products, and auto components.
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President Nicolas Maduro said Tuesday that Venezuela had received $735 million in the first day of a pre-sale of the country’s “petro” cryptocurrency, aimed at pulling the country out of an economic tailspin.

Maduro is hoping the petro will allow the ailing OPEC member to skirt U.S. sanctions as the bolivar currency plunges to record lows and it struggles with hyperinflation and a collapsing socialist economy.

Blockchain experts have warned the petro is unlikely to attract significant investment. Opposition leaders have said the sale constitutes an illegal debt issuance that circumvents Venezuela’s majority-opposition legislature, and the U.S. Treasury Department has warned it may violate sanctions levied last year.

Maduro did not give details about the initial investors and there was no evidence presented for his figure. He added that tourism, some gasoline sales and some oil transactions could be made in petro.

“Today, a cryptocurrency is being born that can take on Superman,” said Maduro, using the comic character to refer to the United States, as he was flanked by mining rigs in a state television address.

The official website for the petro on Tuesday published a guide to setting up a virtual wallet to hold the cryptocurrency.

The cryptocurrency goes public next month.

Venezuelan Cryptocurrency Superintendent Carlos Vargas last week said the government was expecting to draw investors in Turkey, Qatar, the United States and Europe.

The value of the entire petro issuance of 100 million tokens would be just over $6 billion, according to details given by Maduro in recent months, though no new price information was provided Tuesday.

The tokens will each be valued at and backed by a barrel of Venezuelan crude oil, Maduro has said.

Advisers working for the government have in the past recommended that 38.4 percent of the petros should be sold in a private auction at a discount of 60 percent.

Maduro says his government is the victim of an “economic war” led by opposition politicians with the help of the government of U.S. President Donald Trump.

Sanctions levied last year by Washington block U.S. banks and investors from acquiring newly issued Venezuelan debt, effectively preventing the nation from borrowing abroad to bring in new hard currency or refinance existing debt.

The petro will not be a token on the Ethereum network, as was previously disclosed in a whitepaper provided by the government.
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There are no talks between China and the separatists from Pakistan’s Baluchistan province regarding the protection of the China-Pakistan Economic Corridor (CPEC), a senator from the province told VOA.

First reported by The Financial Times, several newspapers in Pakistan said that China has been quietly holding talks with Baluch (natives of Baluchistan) militants for more than five years in an effort to protect the $60 billion worth of infrastructure projects it is financing.

CPEC is a Chinese-funded project. Upon completion, this 3,000-km-long project will connect China with Pakistan through rail, road pipelines and an optical cable fiber network. Through CPEC, China will gain access to the Arabian Sea. 

Pakistan’s Baluchistan province is at the heart of the CPEC because the project stretches between China’s Xinjiang region and Pakistan’s Gawadar port, which is located in the Baluchistan province.

Baluchistan is the poorest and least-developed province in Pakistan, and it has been the scene of a low-level insurgency by Baluch separatist groups that demand a greater share of the province’s resources. There are fears in the country that in an attempt to push for their demands, these separatist groups can target the CPEC project. Some media reports suggest the Chinese government is holding talks with them for the protection of the project.  

“The Chinese have quietly made a lot of progress,” one Pakistani official told The Financial Times. “Even though separatists occasionally try to carry out the odd attack, they are not making a forceful push.”

But Mir Kabir Muhammad Shahi, a member of the Pakistan senate, said it’s not China’s job to hold talks with Baluch separatists.

“I, or other parliamentarians, are not aware of this development, and it’s only Pakistan’s government parliament right to hold talks with Baluch separatists,” he said.

Sher Muhammad Bugti, a representative of the Baluch Republican Army separatist group, also denied having any negotiations with China. Talking to VOA Deewa from his exile in Switzerland, Bugti said separatists cannot hold talks with China.

“We do not know of any talks, nor have we been contacted (by China),” he said.

Groups such as the Baluch Republican Army are against the CPEC, and say the project is aimed at plundering the resources and grabbing the land of their province. But the Pakistani government says CPEC is a game changer in the region, and it will bring prosperity to the whole country. 

Political analyst Zafar Jaspal did not rule out the possibility of China’s involvement with locals, but added that it could not be direct. 

“I do not think China would have directly contacted the insurgents. I believe any contact the Chinese would make would be through the government of Pakistan.” 

The Financial Times claimed that the Pakistani officials welcomed the talks between Baluch rebels and Chinese envoys, even if they do not know the details of what has been discussed.

“Ultimately, if there’s peace in Baluchistan, that will benefit both of us,” said one official in Islamabad.

VOA Deewa’s Aurangzeb Khan contributed to this report.
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President Michel Temer’s decision to throw in the towel on reforming Brazil’s loss-making pension system leaves the unpopular measure as a campaign issue for October’s elections and a major headache for his successor.

Monday’s announcement that Temer was abandoning an overhaul of the social security system — billed as the centerpiece of his efforts at fiscal reform — sparked immediate concern from credit rating agencies that Latin America’s largest economy was failing to put its financial house in order.

Brazil’s generous pension system is at the heart of budget deficit that ballooned from 3 percent of GDP in 2013 to a massive 10 percent in 2015, before edging back to 8 percent last year as the $1.8 trillion economy emerged from recession.

The official reason for dropping the pension bill was a military intervention in crime-plagued Rio de Janeiro state, decreed on Friday after unprecedented violence during Carnival.

Constitutional amendments such as the pension bill are blocked during federal intervention of a state.

Deploying the army in Rio will go down well with voters in a nation where polls show public safety is the top concern. Brazil has 60,000 murders a year and its cities are among the world’s most dangerous.

Temer’s critics, however, said he merely found a pretext to avoid acknowledging an embarrassing defeat.

While Temer, 77, came close to the super majority needed to pass the bill last year, he lost political capital fighting off corruption charges and the government soon discovered it had run out of time, as lawmakers seeking re-election this year refused to back the unpopular legislation.

“Now the government does not have to admit it lost the battle for pension reform,” said Fabio Sousa, a congressman for the centrist Brazilian Social Democratic Party, which backed the reform.

“The next president will have to do the fiscal adjustment, which is fine, because he will have a mandate from voters to do something about it,” Sousa said in an interview. “The good thing is that pension reform will now be an election campaign issue.”

Markets relaxed

Temer, a former vice president, replaced impeached leftist Dilma Rousseff in 2016. But he has single-digit approval ratings that rule out a presidential bid of his own.

Brazilian markets were stable Tuesday, with Sao Paulo’s BOVESPA stock index gaining 1.2 percent in mid-afternoon as investors had largely expected an already watered-down pension reform to sink in Congress.

In an effort to reassure investors, Temer’s cabinet on Monday announced plans to accelerate 15 other policies — ranging from tax breaks to privatizing Brazil’s largest utility and strengthening the central bank’s autonomy.

Yet Moody’s Investors Service promptly warned on Tuesday that the government’s pension decision was credit negative and would restrict its ability to comply with a spending ceiling approved last year.

The government is expected to meet its 2018 deficit target but it is doubtful it can do so in 2019, as a sluggish recovery from Brazil’s worst recession on record has left tax revenues struggling.

According to the main industry lobby, the CNI, the reform would have saved government coffers about 1 trillion reais ($308 billion) over the next decade.

Brazil’s gross public debt already stands at 4.9 trillion reais ($1.5 trillion) or 75 percent of GDP — relatively high for an emerging economy. Without steps to reduce heavy mandatory spending, it will continue climbing, said Felipe Salto, head of the Independent Fiscal Institute, a bipartisan Senate office that aims at transparency in government accounts.

Government projections have the debt stabilizing in 2020 at 80 percent of GDP, but without pension reform that is in doubt.

“You have to show investors it will stabilize. If there is no horizon of stabilization, the market will see a risk of insolvency and higher interest rates will be needed to finance a snowballing debt,” Salto said.
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