Daily News Brief

July 31, 2023

Top of the Agenda

Pakistani police are investigating yesterday’s bombing at a political rally for an Islamist party that is part of the country’s governing coalition. The explosion, which occurred near Pakistan’s northern border with Afghanistan, killed at least forty-six people (Dawn) and shook the country as it prepares for elections later this year (NYT). While no group immediately claimed responsibility, police are probing the possibility that a wing of the self-declared Islamic State was behind the bombing.

The attack comes as some militant groups have become more active in Pakistan following the Taliban’s 2021 takeover of neighboring Afghanistan. The Islamic State has vied for influence in the region with the Pakistani Taliban, which broke off a cease-fire with the Pakistani government last November. The Pakistani Taliban condemned Sunday’s attack (Bloomberg). 

Analysis

“[Such attacks] can result in dull election campaigns and low voter turnout, undermining the credibility of upcoming general elections,” the S. Rajaratnam School of International Studies’s Abdul Basit tells the New York Times.

“Ties between the Taliban and Pakistan have been tested in recent months due in part to the [Pakistani Taliban]. Pakistan wants the Taliban to rein in the militant group which killed at least 100 people in a suicide bombing at a mosque in January, one of the deadliest attacks in years,” Bloomberg’s Faseeh Mangi writes.

For Foreign Affairs, the U.S. Institute of Peace’s Asfandyar Mir discusses Pakistan’s twin crises of a collapsing economy and surging terrorism.

Pacific Rim

While China has often responded to such economic contractions with fiscal stimulus, the policy responses have so far been more moderate (Nikkei). The government announced today that it will forbid local governments from restricting new car purchases while encouraging electric car sales and affordable housing renovations.

U.S./Taiwan: For the first time, Washington will use presidential authority (WaPo) to provide up to $345 million of military assistance to Taiwan as China continues to try and assert its authority over the island. The aid package includes weapons, education, and training through a channel similar to the one that the United States has used to arm Ukraine, the White House said.

South and Central Asia

Demonstrators clashed with police (Nikkei) over the weekend as they demanded that the government guarantee conditions for fair elections in January. Opposition members from the Bangladesh Nationalist Party say that a by-election in the capital, Dhaka, earlier this month was manipulated.

Middle East and North Africa

Saudi officials are planning talks in Jeddah next weekend and have invited officials from Ukraine as well as several countries from the Group of Twenty, including the United States, Brazil, and India, the Wall Street Journal reported. Russia has not been invited. Ukrainian officials hope the talks will sway countries that have taken neutral positions to side with Ukraine and culminate in a peace summit later this year. 

Lebanon: Central bank leader Riad Salameh stepped down (BBC) today after thirty years in his post, leaving his deputy as interim leader. The government has not yet named a successor. Critics blame Salameh for Lebanon’s ongoing economic crisis, and he is under investigation for embezzlement in several countries. 

Sub-Saharan Africa

The Economic Community of West African States imposed financial sanctions on those involved in Niger’s military coup last week. Yesterday, the bloc threatened to use military force (NYT) if the democratically elected President Mohamed Bazoum is not reinstated within seven days. 

For the Africa in Transition blog, CFR expert Michelle Gavin analyzes the Niger military’s efforts to seize power.

Ethiopia: World Bank President Ajay Banga begins a two-day visit (Ethiopian Monitor) to Ethiopia today as part of efforts to increase private investment in the country, the Bank said. He is expected to focus on creating job opportunities for youth and women. 

Europe

An additional fifty-three people were wounded (WaPo) in today’s attack, Ukraine’s interior ministry said. Yesterday, Russian officials blamed Ukraine for attempted drone strikes in Moscow and Crimea over the weekend. Ukrainian President Volodymyr Zelenskyy said that strikes inside Russia are “inevitable.” 

China/Italy: Italy intends to leave China’s Belt and Road Initiative (Politico) while trying not to damage its relations with Beijing, Italy’s defense minister said.

Americas

Colombia’s attorney general is investigating (CNN) Nicolás Petro Burgos for allegedly taking money from drug traffickers in exchange for including them in peace talks between the government and criminal organizations. His father, President Gustavo Petro, said he would not interfere in the case.

Argentina: Argentina and the International Monetary Fund (IMF) reached a deal to disburse $7.5 billion in IMF loans so that the country could avoid a default. The IMF agreed to relax requirements of the amount of foreign reserves Argentina must hold, while Buenos Aires committed to measures to weaken the peso for trade purposes, the Financial Times reported.

This Backgrounder by CFR’s Diana Roy explores Argentina’s economic and political instability.

United States

Commercial operations began today (AP) at the Vogtle nuclear plant in eastern Georgia. The project has been marked by delays and cost overruns, though an official at the utility company touted the project’s potential to supply nuclear power in the United States. At full output, the plant can power half a million homes and businesses.

This CFR virtual meeting discusses the prospect of a nuclear energy comeback in the United States.

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