Pakistan invites Saudi Arabia to be third partner in CPEC (GS-2) (Page-12) Saudi Arabia will be the third "strategic partner" of the $50 billion China-Pakistan Economic Corridor (CPEC), a senior Pakistani Minister announced on Thursday, soon after Prime Minister Imran Khan returned from his first foreign trip to the cash-rich kingdom.The CPEC is the flagship project of the multi-billion dollar Belt and Road Initiative (BRI), a pet project of Chinese President Xi Jinping, aimed at enhancing Beijing's influence around the world through China-funded infrastructure projects. Addressing a press conference here on Mr. Khan's two-day visit to Saudi Arabia and UAE, Minister of Information Fawad Chaudhry said Pakistan's main interest lies in cooperation with Saudi Arabia on matters of trade and security. Pakistan has invited Riyadh to join the CPEC as the third "strategic partner", The News quoted him as saying. Saudi's Finance and Energy Ministers will visit Pakistan in the first week of October, Mr. Chaudhry said. He said the projects that Saudi Arabia would be investing in in the CPEC will be smoothed out during the Saudi delegations visit. China has rejected accusations that its financial backing for the CPEC was a "debt trap" that could compromise cash-strapped Pakistan's sovereignty.
The CPEC is the fastest-moving and flagship project of President Xi's global Belt and Road Initiative (BRI). The CPEC aims to construct and uPgrade the transportation network, energy projects, a deep-water port at Gwadar and special economic zones to eventually support Pakistan's industrial development as a manufacturing hub by 2030. Mr. Chaudhry said that Prime Minister Khan has assured Riyadh that Pakistan will stand with Saudi Arabia. Promise of security We have also assured the Saudi leadership that we will continue to provide security to their country and provide strategic support wherever needed," he said on the close defence partnership between the close allies. He also said that a high-level coordination committee has has been constituted [to look into matters of trade and commerce] and it has the complete backing of Saudi King Salman bin Abdul Aziz Al-Saud and Prime Minister Khan.
Preventive vigilance is key to good governance in PSEs: Patel (GS-3) (Page-13) Reserve Bank of India Governor Urjit Patel emphasised on preventive vigilance for improving governance standards in public sector enterprises (PSEs) and said punitive vigilance may not achieve the desired results. "Reserve Bank of India considers preventive vigilance measures as the lynchpin of its efforts for good governance," Dr. Patel said during a speech at the Central Vigilance Commission, New Delhi. He said preventive vigilance takes centre stage and becomes a key effective tool of governance in a public sector institution "When lapses can arise due to background noise outside of the employee control (which is often the case in public sector due to the complexity of the interaction with a multitude of other public sector entities), punitive vigilance becomes even less attractive due to further demotivation that it might induce; in turn, so does detective vigilance" he said.
Effective mechanism 'While not taking away from the need to engage in some detective and punitive vigilance, preventive vigilance is conceptually likely to be the most effective governance mechanism at public sector institutions," he added. The Governor said that punitive vigilance was difficult in a public sector institution for several reasons, adding the rewards were low to start with, thereby limiting the possibility of downward revisions Given this constraint, Dr. Patel said disciplinary actions that limit the chances of career progression were often the preferred punishment. . "However, this has the misfortune of demotivating employees beyond the point of their career when punitive vigilance action is undertaken. This could, in principle, be dealt with a golden handshake'; however, the insurance that public sector jobs offer is often a key attractive feature of these jobs given the lack of significant upside financial rewards," he said.
Merged bank could see rise in NPAs: India Ratings (GS-3) (Page-13) The proposed merger of three public sector banks, Bank of Baroda,Vijaya Bank and Dena Bank, is expected to result in better operating efficiency in the long run but there could be an increase in slippages in the short-term, India Ratings said on Thursday. The rating agency said the merged entity may see reduced operating costs, lower funding cost and strengthened risk management practices apart from increasing the scale and reach moderately. "However, in the short-term, the slippages could increase as recognition of non-performing assets is harmonised and accelerated," it said. Management bandwidth India Ratings said the proposed merger would require significant bandwidth of management along with deft handling so that operational aspects such as business growth and resolution of large stock of delinquent assets continue receiving adequate attention. It also said the asset-liability mismatch of the smaller banks (Vijaya and Dena Banks) can be better addressed at the consolidated level
The success of the proposed merger could impact the incremental capital ask from the government as efficiencies improve, resulting in stronger internal accruals and may act as a roadmap for further consolidations in the public sector banking space," India Ratings said. India Ratings further said the consolidated entity's core equity tier 1 capital is about 9.3% and that Dena Bank's lower capital buffers are offset by Vijaya's higher capital buffers.
Graduate in Economics. Gold medal in Dissertation, Prepared various documents on Demonetisation and GST, Share-trading and many more