Pakistan general condemns US drone attack that kills more than 30



Pakistan's army chief has condemned a US drone attack that killed more than three dozen people, saying the missiles struck a peaceful meeting of tribal elders.

Civilians and police were among those killed when missiles fired by a drone ploughed into a militant training compound in Datta Khel town, 40 kilometres west of Miranshah, the main town in tribal North Waziristan.

"Chief of army staff General Ashfaq Kayani strongly condemns the Predator strike carried out today in North Waziristan resulting into loss of innocent lives," the military said in a statement.

"It is highly regrettable that a jirga [council] of peaceful citizens including elders of the area was carelessly and callously targeted with complete disregard to human life." it said.

Initially, Pakistani intelligence officials said the unmanned aircraft fired four missiles into a building where dozens of suspected militants were meeting yesterday, killing more than 30 of them in a strike close to the Afghan border.

The strikes took place in an area regarded as the main sanctuary for al Qa'eda and Taliban fighters along the Afghan border, said the officials.

The roughly three dozen suspected militants at the meeting were allied with Hafiz Gul Bahadur, a powerful Pakistani Taliban commander in the area, who has focused his efforts on fighting foreign troops in Afghanistan, the officials said. The insurgents were discussing plans to send new groups of fighters across the border.

The most senior militant killed in the attack was Sharabat Khan, Bahadur's top commander for the Datta Khel area, who was leading the meeting, the officials said. Several foreign militants were also killed, they said.

The United States began firing missiles at militant targets in Pakistan in 2004, but the pace of the attacks picked up dramatically in 2008. Last year, there were about 120 strikes, which are believed to be carried out by unmanned drone aircraft either from Afghanistan or from inside Pakistan. There have been about 20 so far this year.

Most of the strikes this year and last year have been in North Waziristan.

Washington does not acknowledge firing the missiles and reporters are barred from visiting the area, meaning it is hard to verify who is being killed. Pakistani leaders formally protest against the strikes, but its intelligence agencies are widely believed to co-operate in some of them.

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Europe’s rearming plan
  • Suspend strict budget rules to allow member countries to step up defence spending
  • Create new "instrument" providing €150 billion of loans to member countries for defence investment
  • Use the existing EU budget to direct more funds towards defence-related investment
  • Engage the bloc's European Investment Bank to drop limits on lending to defence firms
  • Create a savings and investments union to help companies access capital

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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