June 4, 2024
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Al Marri affirms UAE’s commitment to sustainable aviation

Al Marri stressed that the UAE is at the forefront of the shift forward to a low carbon economic model, with aviation as a key component…reports Asian Lite News

UAE Minister of Economy, Abdullah bin Touq Al Marri has underscored the UAE’s unwavering commitment to ensuring sustainable aviation growth while addressing climate challenge.

In his keynote address at the 80th IATA’s Annual General Meeting (AGM) and World Air Transport Summit, convening in Dubai from 2nd to 4th June 2024, Abdullah bin Touq said the air transport sector has a long history of fostering partnership that drives change, connects people and supports economies and communities around the world. “It’s also one of the most challenging sectors to decarbonise. Aviation accounts for 2.5% of global CO2 emissions, but has contributed around 4% of global warming to date.”

As climate concerns reach a boiling point, he continued, achieving sustainable air travel is no longer optional, it’s essential. “That’s why sustainability is at the forefront of our agenda today.”

To truly make a difference, the minister explained, the aviation industry urgently needs a collective effort. “We need increased support from both governments and the private sector, particularly in funding and infrastructure development. This will unlock the production and deployment of sustainable aviation fuels and other promising alternatives.”

He stressed that the UAE is at the forefront of the shift forward to a low carbon economic model, with aviation as a key component, diversifying away from oil and tackling climate change is among top priorities of the UAE leadership, and “we are making tremendous efforts to accelerate transition to a low carbon economy.”

The non-oil sector represents more than 74% of our GDP in 2023. Moreover, he added, the UAE is one of the first countries to adopt sustainability agenda and consider the environmental impact of the aviation sector. “We actively participated in all negotiations launched by the International Civil Aviation Organisation and endorsed all international decisions supporting sustainability.

“Furthermore, we aim to decarbonise the aviation sector and position the UAE as a regional hub for low carbon aviation fuel. This is why we have launched the National Sustainable Aviation Fuel Roadmap, setting an ambitious goal to produce up to 700,000,000 litres annually by 2030. This initiative is expected to reduce up to 4.8 million tonnes of CO2 emissions.”

The minister explained that COP28 highlighted the need for technological advancements within the aviation sector. “This includes developing more fuel efficient aircraft and exploring alternative propulsion systems such as electric and hybrid electric engines and of course, the use of hydrogen.”

As one of the leading economies in travel and tourism in aviation, the UAE, he added, is committed to being a part of the solution to climate crisis and to decarbonise the industry. “We believe that partnership and collaboration with the private sector are crucial to achieving our economic sustainability goals. And the UAE views the private sector as a key driver of growth.”

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Pakistan Risks Overstretching Itself in Yemen War

Pakistan’s expanding military role in Saudi Arabia amid the Yemen conflict could strain its defence resources and fragile finances…reports Asian Lite News Desk Pakistan’s military involvement in the war in Yemen may prove unsustainable because of mounting financial pressures and competing security demands, according to a new report. Islamabad’s growing military presence in Saudi Arabia risks stretching its defence resources while exposing the country to greater strategic and economic challenges. An article by Andrew Wilson in One World Outlook describes Pakistan’s involvement as a case of “fiscal and strategic overreach”, arguing that the country lacks the financial flexibility to sustain an expanded military commitment. Pakistan’s external finances depend heavily on an International Monetary Fund (IMF) programme, financial support from Gulf countries and remittances from Pakistani workers in the region. The report argues that deeper military involvement in the conflict could place additional pressure on these sources of financial stability. It also warns that deploying troops and military equipment abroad could weaken Pakistan’s capacity to address security challenges along its eastern border and deal with two domestic insurgencies. The move could also draw Islamabad into a conflict it has sought to approach cautiously. A Reuters report in May, citing Pakistani security and government sources, said Islamabad had deployed around 8,000 troops, a squadron of approximately 16 aircraft, mostly JF-17 fighter jets, two drone squadrons and a Chinese HQ-9 air-defence battery to Saudi Arabia. According to those sources, Riyadh was financing the deployment, with Pakistani personnel operating the equipment. The sources also said a confidential agreement contemplated the possibility of deploying up to 80,000 troops. Islamabad has not confirmed those figures, although it has acknowledged its military presence in Saudi Arabia, including the deployment of fighter jets at King Abdulaziz Air Base from April. The One World Outlook article argues that Saudi financial support can cover allowances and operating expenses but cannot easily replace military equipment needed elsewhere or resolve the political and strategic challenges of participating in the Yemen conflict. Pakistan’s defence budget is another concern. For the 2026-27 financial year, the federal government allocated PKR 3 trillion, or approximately $10.8 billion, to defence services. The allocation represents an 18 per cent increase from the original PKR 2.55 trillion provision and amounts to around 2.1 per cent of projected gross domestic product (GDP). Defence spending accounts for approximately 16 per cent of the federal government’s PKR 18.8 trillion expenditure. Military pensions are budgeted separately at PKR 822 billion, while debt servicing costs stand at approximately PKR 8 trillion, more than two-and-a-half times the defence allocation. The report argues that these competing financial obligations leave little room for additional military expenditure without placing further pressure on public finances. Pakistan’s reliance on IMF assistance also limits its fiscal flexibility. The country must meet the conditions attached to the programme, including a primary budget surplus target of 2 per cent of GDP and continued restraint on development spending. According to the article, these requirements make it difficult for Islamabad to finance an additional military commitment without compromising other budgetary priorities. Pakistan’s economic indicators offer limited reassurance. Economic growth for the 2025-26 financial year is estimated at between 3.6 and 3.7 per cent, while inflation reached approximately 10.3 per cent in September following an energy price shock. Foreign exchange reserves stood at around $21.5 billion at the end of September. Although this marks an improvement from the low levels recorded in 2023, the report notes that the reserves cover only a few months of imports. Financial assistance from Gulf partners remains central to Pakistan’s external stability. The article says Islamabad holds approximately $8 billion in Saudi deposits at its central bank. In July, the State Bank of Pakistan said Riyadh had extended the maturity of $5 billion in deposits to December 2028, easing the country’s immediate external financing requirements. A further $3 billion deposit was also extended in the spring. However, the article argues that these arrangements provide temporary relief rather than long-term financial independence, particularly as regional conflict threatens the stability of the Gulf economies on which Pakistan relies. The report concludes that Pakistan faces a difficult balance between supporting Saudi Arabia militarily and preserving the financial and military resources needed to address its domestic and regional challenges.

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