09-02-2022

WEDNESDAY, FEBRUARY 9 , 2022
4
Is a rift between Pakistan and the Afghan Taliban imminent?
Acting Editor & Publisher : Jobaer Alam
e-mail: editor@thebangladeshtoday.com
Wednesday, February 9, 2022
Welcome drive must
not slacken
W
e
have been observing with great satisfaction the
crackdown that was initiated from last March with
actions against casino operators. Gradually, the
crackdown spread into other sectors as well. But at that time,
overthinking and undue pessimism was noted in some
quarters that the crackdown would soon peter out and all
would be business as usual. But blissfully the juggernaut
against crime and corruption launched from the highest level
of power in the country has only grown stronger and
stronger.
Day after day the dragnet against the czars of corruption,
fraud, illegal amassing of wealth, bribery, misuse of official
power, etc. has ben rolling on sparing nobody. Most
importantly, the drive has shaken off attempts at influence
peddling in favor of identified guilty ones notwithstanding
their political connections or profiles. Indeed, in the entire
history of Bangladesh there is no record of a government
moving so undauntingly or fearlessly against members of its
own political partysuch as the presentanti crime and anti
corruption drive under the leadership of Prime Minister
(PM) Sheikh Hasina.
Indeed, people of the country are one in hoping that no
power will be able to prevent the PM from staying the course
all the way. The same have only reaffirmed the reality that in
Bangladesh todaynobody is the above the law and the arm of
the law will grab any one otherwise wrongfully perceivedas
untouchable. While deeply appreciating this fact, there is
one aspect to which the people expect their government's
attention must be directed fully. This is their keen
expectation that not only the sultans of crime and corruption
be caught with their arrests and starting of cases against
them. People expect that simultaneouslythe arrested ones or
their family members must not be allowed to use their
illegally amassed wealth in the slightest to cover up their
misdeeds or to go on enjoying their ill gotten wealth in other
ways. We have seen very recently initiatives taken by a
specialized agency of the government to freeze the bank
accounts of certain crime lords and their family members.
But we believe that such initiatives must not be limited to
tokenism only.
For example, the Anti Corruption Commission (ACC) has
started a case against an alleged delinquent and murderer in
the police service, one former OC Pradeep on charges of
owning a mere 4 crore Taka in excess of his declared sources
of income. A court has already declared the death penalty
against him for murdering an ex army officer and this is
symbolic of the fact that the present government in
Bangladesh will not be swayed in the least to frustrate the
judiciary from doing its work however influential a person is
perceived to be.
But realistically and according to fair media reports this OC
Pradeep indirectly owns properties worth hundreds of crores
of Taka not to speak of hundreds of crores hemoney
laundered into other countries to be stashed away in secret
accounts or for buying real estate. People want that ACC
should start investigating all such monies and properties in
entirety , gained through crime and corruption and lay claim
to these or make any further sale or use of such properties by
them, impossible.
Media has reported credibly on the great corruption
indulged in by the so called managing director of as non bank
financial institutions. (DFIs). He has allegedly
misappropriated hundreds of crores of Takain this manner
from other DFIs and laundered them abroad to buy
properties and other assets. This man is currently living
comfortably in Canada and the hands of the law cannot
reach him there.
Our point is : should our legal process be limited to only
starting or investigating cases against them ? Or should we
feel a smug satisfaction that some of them could be arrested
? No, certainly not. There would be people's satisfaction and
appreciation from only knowing that these nabobs of
corruption and crimewill never be in a position to enjoy or
use their ill gotten wealth again, even partly.
Government's relevant agencies and the Central Bank must
track down each and every secret or open bank account of
such individuals within the country and freeze them
instantly. All out efforts must be made in collaboration with
foreign governments and authorities to bring back to
Bangladesh the monies and values of properties of these
persons in foreign territories. The same would then be
deposited in our public treasury for spending as deemed fit
by our government.
No leniency should be tolerated in the process. Any effort
to help the accused in these matters from bribery and other
means, also will have to be sternly investigated, prevented
and punished. Of course the accused may be allowed to
spend with official permission reasonable amounts from the
seized or frozen funds to pay for their allowable legal
expenses and family maintenance. But the seized amounts of
cash and properties to remain on settlement of the cases
against them, the same must be deposited in the public
exchequer for spending on country's development activities
and projects for the welfare of common people.
We believe that doing such things, fully and successfully,
will earn for the government of the day in Bangladesh sky
high recognition for a good deed done and lasting support
from the rank and file of the people.
We also call on the governments and people of those
countries which are proving to be shelter givers of the crime
lords of our country to wake up to their responsibilities.
These front rank countries of the world are regarded as so for
their achievements in so many things. But such profiles are
likely to be tarnished soon as more and more people in
developing countries like ours find out that the
administrations and certain people in these countries do not
mind complicity with law dodgers in our country for
pecuniary gains. So, it needs to be wake up time for the
authorities in those countries as well.
When the Taliban took over the
Afghan capital, Kabul, in August
last year, many in Islamabad
cheered. The collapse of the Westernbacked
Afghan government was seen as an
opportunity to reset relations between the
two countries, which had grown strained
under Afghan President Ashraf Ghani. After
the formation of the Taliban government,
Islamabad became one of its main
supporters on the international scene,
calling for its recognition and for urgent
financial assistance.
In recent months, however, signs have
emerged of cracks in the otherwise amicable
relations between the two. Disagreements
over the demarcation of the Afghanistan-
Pakistan border and Afghan Taliban
support for the Tehreek-e-Taliban Pakistan
(TTP) have caused tensions.
If no resolution is reached on these issues,
this could cause a rift in relations with
significant consequences for both Pakistan's
national security and regional stability.
In early September, while the Taliban was
deliberating the makeup of its government,
Pakistan's former intelligence chief
Lieutenant General Faiz Hameed paid a
visit to Kabul. According to Afghan and
Pakistani sources, Hameed was able to
influence the decisions on the final makeup
of the interim cabinet to favour pro-
Pakistani figures from the Haqqani
Network and prevent Mullah Ghani
Baradar from taking the head of
government position.
Bardar, a prominent Taliban leader, is
perceived to harbour hostility towards
Islamabad, given his imprisonment by the
Pakistani authorities between 2010 and
2018. A government headed by him would
not have been as friendly to Pakistan. By
contrast, the Haqqani Network, which took
key cabinet portfolios, including the
ministries of interior, communications,
education and refugee and repatriation, are
considered close to Islamabad. While
Pakistan's ability to sway the Taliban
government formation process reflects the
extent of its influence in Kabul, it has also
caused resentment among certain circles
within the leadership of the group.
This was made apparent in late December
and early January when Afghan border
guards forced Pakistani workers to stop
fencing the border between the two
countries. The incident was followed by an
exchange of public statements by Afghan
and Pakistani officials.
"The issue of the Durand Line is still an
unresolved one, while the construction of
fencing itself creates rifts within a nation
spread across both sides of the border. It
amounts to dividing a nation," Afghan
Information Minister and Chief Spokesman
Zabihullah Mujahid said in an interview for
a Pashto-language YouTube channel,
referring to the Pashtun community, the
biggest ethnic group in Afghanistan and the
second-biggest one in Pakistan.
In response, Pakistan military
spokesman, Major General Babar Iftikhar
said during a press conference, "The blood
of our martyrs was spilled in erecting this
fence. It is a fence of peace. It will be
completed and will remain [in place]."
The Durand Line was demarcated
RAzA KHAN
between British-ruled India and
Afghanistan in 1893 by the then-Afghan
ruler Amir Abdul Rahman and British
Indian Foreign Secretary Mortimer
Durand. Since the establishment of
Pakistan in 1947, Kabul has not only
objected to the border demarcation, but has
also challenged the inclusion of Pashtun
tribal areas within Pakistani borders.
In recent years, the problem has
persisted, with both former Afghan
presidents, Hamid Karzai and Ashraf
Ghani, reaffirming the Afghan rejection of
the Durand Line. The Taliban has stuck to
A ceasefire between the armed group and the Pakistani military
negotiated with the help of the Afghan Taliban government in
November was short-lived. The TTP resumed their attacks in
December against security forces and civilians, even as secret talks
with representatives of the Pakistani government have continued.
the same traditional stance and is showing
no signs of making concessions to Pakistan.
In recent days, engagement between the
two sides failed to make any progress on the
issue. In late January, Pakistan's National
Security Adviser Moeed Yusuf visited Kabul
but was only able to negotiate a bilateral
coordination mechanism to facilitate
border crossing movement and trade; the
border fence issue remained unaddressed.
Another source of tensions between
Kabul and Islamabad has been the TTP. The
armed group fought alongside the Afghan
Taliban against the US and its allies for
years and the two have a strong bond. When
the Taliban took power on August 15, they
set free hundreds of TTP men, including
some prominent leaders, incarcerated in
Afghan jails. Much of the TTP leadership is
based in Afghanistan and many members,
according to Afghan and Pakistanis
journalistic sources, are receiving support.
Since it was founded in 2007, the TTP has
been responsible for deadly violence in
Pakistan, attacking both security forces and
civilians. The Pakistani authorities believe
that the TTP, along with al-Qaeda and some
affiliated groups, has so far killed more than
80,000 Pakistanis and inflicted economic
losses of more than $150bn.
In 2014, the Pakistani army launched a
major offensive against the TTP, forcing
many of its members to flee to Afghanistan.
After an initial lull in violence, the TTP
started to escalate its attacks again in recent
years. In 2021, as the Taliban advanced in
Afghanistan, TTP fighters intensified their
assaults in Pakistan. There were at least two
attacks also targeting Chinese workers and
the Chinese ambassador to Pakistan, which
unsettled Beijing, a close ally of Islamabad.
Before the Taliban takeover of Kabul last
year, Pakistani officials repeatedly argued
that the presence of the US and its allies in
Afghanistan fed the TTP insurgency. But
recent events have shown that the victory of
the Afghan Taliban has only emboldened
the TTP.
A ceasefire between the armed group and
the Pakistani military negotiated with the
help of the Afghan Taliban government in
November was short-lived. The TTP
resumed their attacks in December against
security forces and civilians, even as secret
talks with representatives of the Pakistani
government have continued. So far, the
mediation of the Afghan Taliban has not
produced any significant results and its
support for the TTP continues. If violence in
Pakistan escalates, that could put more
strain on Kabul-Islamabad relations. And
such an escalation is quite likely.
Source: Al Jazeera
50 years of Germany-Bangladesh relations
February 4, 2022, marked the 50th
anniversary of Germany-
Bangladesh bilateral relations. For
the last 50 years, the two countries have
maintained sound diplomatic relations
with few significant disputes.
Bangladesh is currently in a transition
phase from Least Developed Country
(LDC) to Developing Country (DC), while
Germany is performing a leadership role
in the European Union. Over the decades,
the two countries have bolstered their
relations in various aspects, including
political, economic, and cultural
exchanges.
At this auspicious moment, assessing
the events of the past 50 years suggests
that they can advance ties to new heights
by addressing mutual interests.
Bangladesh emerged as a sovereign
state on December 16, 1971. West
Germany was the first European country
to recognize Bangladesh, in 1972. West
Germany then started to expand its
cooperation with Bangladesh, starting
with the adoption of "war babies" by many
German families.
The relationship further cemented
when West German chancellor Willy
Brandt and his government played an
instrumental role in brokering peace
between Bangladesh and Pakistan in a
dispute over prisoners of war. In later
years, both countries established
embassies in their respective
counterparts.
As the relationship advanced, high-level
visits took place between the countries,
starting with a nine-member German
parliamentary delegation visiting
Bangladesh in February 2004. In 2011,
Bangladeshi Prime Minister Sheikh
Hasina paid a visit to Germany. In the
same year, then-German president
Christian Wulff also visited Bangladesh.
Even after the Rohingya refugee crisis,
Germany supported Bangladesh
politically and financially to maintain the
refugee camps.
The growing relationship resulted in
growing bilateral trade also. In 2018,
bilateral trade was worth about €6.6
billion (US$7.56 billion). Bangladesh
exports textile products, frozen goods, and
leather products to Germany, while
Germany exports machinery, chemicals,
and electrical goods to Bangladesh.
It is worth mentioning that Germany is
one of the largest textile export
destinations for Bangladesh, and 90% of
Bangladesh's total export to Germany is
textile products. Apart from commercial
relations, the two countries also conduct
development cooperation. Between 1972
and 2020, Germany provided €3.03
billion as a part of a financial and technical
cooperation commitment.
The priorities of German development
cooperation with Bangladesh include
climate and energy, good governance,
displacement and migration, vocational
skill development, sustainable supply
chains, and humanitarian assistance to
Rohingya camps.
During the Covid-19 pandemic,
Germany provided €340 million to
Bangladesh for development projects
including in energy, urban development,
good governance, displacement, and
training. Apart from that, as a part of
MD MUFASSIR RASHIDS
Covid aid, Germany donated 8 million
doses of AstraZeneca vaccine to
Bangladesh.
The two countries have also secured a
trajectory for growing people-to-people
connections over the years. In the Global
Soft Power Index 2021, Germany has
secured the top position. And evidence of
this achievement is visible in Bangladesh.
German non-governmental
organizations including Friedrich
The priorities of German development cooperation with
Bangladesh include climate and energy, good governance,
displacement and migration, vocational skill development,
sustainable supply chains, and humanitarian assistance to
Rohingya camps.
Naumann and Friedrich-Ebert-Stiftung
(FES) are working in Bangladesh, with
visible impacts.
Apart from NGO activities, as the crossculture
connection increases, German
culture and language have gradually
become popular in Bangladesh. The
Goethe Institute and German language
departments in public universities have
facilitated that path. German
philosophies, literature, sports, and music
are also becoming popular among the
youth of Bangladesh.
Meanwhile, Bangladesh's culture is also
finding its way into Germany. The famous
German broadcaster Deutsche Welle
(DW) now hosts programs in Bengali.
Over the past decade, it has also dedicated
many of its programs in the Bengali
language. DW also covers news in Bengali.
The Bangladeshi diaspora community is
also growing in Germany. According to an
unofficial source, 20,000 Bangladeshi
citizens are living in Germany. These
DR. MOHAMED RAMADY
Bangladeshi nationals contribute to
Germany's economy and send back
remittances to their home country.
One of the significant aspects of crosscultural
relations between Germany and
Bangladesh is growing academic
relations. Germany has announced many
scholarships, including DAAD, for
aspiring Bangladeshi students. Every
year, many Bangladeshi students go to
Germany after securing these
scholarships and availing themselves of
the tuition-free German university
system, resulting in know-how exchange
and cross-culture experience.
All in all, it seems that for Germany-
Bangladesh bilateral relations, the
potential is vast, and there are hardly any
significant challenges apart from the
current student-visa problem and illegalimmigrant
problem.
Because of Covid-19, aspiring
Bangladeshi students are currently facing
visa problems at the German Embassy in
Dhaka, which should be solved as soon as
possible. Foreign Minister A K Abdul
Momen recently urged resolution of this
issue at a meeting with German
Ambassador Achim Tröster. Meanwhile
in Germany, illegal migration from
Bangladesh has become an issue.
Both countries should make extra
efforts to address these temporary and
easily solvable concerns.
In conclusion, an assessment of 50 years
of bilateral relations suggests that both
countries are on the right track to achieve
their national objectives. It is hoped that
both countries will understand their
mutual interests and undertake initiatives
to take bilateral ties to new heights in
celebration of this auspicious milestone.
Source: Asia times
GCC corporate tax rates are still attractive to foreign companies
Offshore centers have always
competed with each other to attract
business based on location, the ease
of doing business and the cost of doing
business. The last involves the rate of taxes
levied on profits. The news that the UAE will
introduce a new 9 percent corporation tax
on business profits above 375,000 dirhams
($102,096) effective from June 1, 2023, has
not come as a surprise. However, the UAE's
planned corporation tax will still be lower
than the other five GCC countries, which
range from 10 percent for Qatar, 15 percent
for Oman and Kuwait, and 20 percent for
Saudi Arabia. All these are still below other
tax jurisdictions. The average top corporate
tax rate among EU countries is 21.3 percent,
23.04 percent among OECD countries, and
69 percent in the G7, according to the USbased
Tax Foundation.
UAE authorities seem confident that the
planned corporate tax levy, with its long
implementation time frame, will not
undermine the attraction of the Emirates as
a low-tax haven, and that the move is in line
with the general trend in the Gulf
Cooperation Council countries to diversify
their source of revenues away from
hydrocarbon income dependency, and
follows on the introduction of Value Added
Taxation in Gulf countries.
In fact, it was the UAE along with Saudi
Arabia that first introduced VAT in 2018 on
most goods and services at a standard rate of
5 percent, followed by a 20 percent tax on
branches of foreign banks operating in the
Emirates, along with a significant 55 percent
levied on the concession agreements profits
in the oil and gas sector.
Saudi Aramco does not operate such a
concession agreement with foreign energy
companies. But businesses in the UAE will
still be exempted from paying taxes on
capital gains and dividends from
shareholders. Corporate tax incentives
offered to free zone businesses that do not
conduct business onshore are unaffected.
Withholding taxes on domestic and cross
border payments will not be imposed.
Foreign investors who do not carry on
business in the UAE will not be subject to
the new taxes. Saudi Arabia introduced its
VAT at 15 percent from July 1, 2020.
These two major GCC economies have left
intact the exemption for individual income
tax on foreigners, which is welcomed by the
large expatriate labor force in both
countries, despite those arguing for some
form of tax-on remittances above certain
levels but exempting most lower-level
remittances.
The UAE has extensive double tax treaties
with other countries to ensure that the new
proposed corporate tax is not unfairly levied
and that the UAE remains a world-leading
hub open for business, as the lack of double
tax agreements in some GCC countries had
blunted their attractiveness. But taxation
levels alone will not attract world-class
business to locate to the Gulf as this requires
transparent legal, accounting and regulatory
frameworks in operation, especially if the
aim is to promote this Gulf country as a
world-class financial center. The key for
success for these competing GCC financial
centers is to differentiate themselves instead
of cloning each other.
Some believe that financial centers such as
London have grown because of the innate
skills of its financial labor force, but in
essence, London flourished in recent years
because it attracted the best financial players
from the world, as foreign banks and
financial institutions were drawn to London
as a convenient and cost-effective place to do
business.
Source: Arab news