Morning Brief: Yunus Throws Tantrum As Army Demands Elections; India’s Port Ban Deepens Pakistan’s Economic Crisis; Net FDI Falls 96 Per Cent Despite Surge In Gross Inflows

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Yunus Threatens To Resign As Pressure To Hold Election Grows

Muhammad Yunus, head of Bangladesh's interim government, has threatened to resign amid escalating protests by the Bangladesh Nationalist Party (BNP) and a warning from Army Chief General Waker-Uz-Zaman demanding elections by December. Holding elections will end Yunus' regime in Dhaka, which he has preserved by allowing Islamists a free hand and keeping them satisfied by banning the Awami League of former Prime Minister Sheikh Hasina.

Nahid Islam, a student leader and convenor of the National Citizen Party (NCP), said Yunus felt "held hostage" and unable to work, urging political unity. The BN, seeking power with the Awami League sidelined, demands a clear election roadmap, wary of delays favoring the NCP, which is led by students who were the face of the protests that led to Hasina's ouster last year.

India's Port Ban Deepens Pakistan's Economic Crisis

India has blocked transshipments of cargo from Pakistani ports like Karachi and Qasim, prompting most shipping lines to suspend direct services to Pakistan and switch to feeder vessels, causing delays and increased costs. This disruption is severely impacting Pakistan’s trade, especially as the country relied on India’s Mundra Port for shipments to Europe.

In response, shipping companies are rerouting via Colombo, Salalah, and Jebel Ali, while also imposing emergency surcharges and higher insurance premiums, adding to Pakistan's financial strain. The resulting trade backlog, especially in grains and textiles, is worsening Pakistan’s economic challenges, which include a weakening rupee and dependence on imports. Meanwhile, the disruption is boosting Indian rice exports, with basmati prices rising sharply due to Pakistan's reduced competitiveness.

Net FDI Down 96 Per Cent Despite Surge In Gross Inflows

Net foreign direct investment (FDI) into India plunged by 96.5 per cent to a record low of $353 million in FY25, compared to $10 billion in FY24, according to the Reserve Bank of India (RBI). The sharp drop was driven by heavy repatriation of $49 billion, strategic investment withdrawals, and increased outward FDI by Indian firms, even as gross FDI rose 13.7 per cent to $81 billion.

A booming IPO market allowed major exits for private equity and venture capital investors in companies like Swiggy, Hyundai, and Vishal Mega Mart, with PE/VC exits totalling $26.7 billion. The RBI noted that net FDI was significantly lower than volatile portfolio flows, which stood at $2.67 billion. Experts see the trend as a sign of market maturity, with strong gross inflows and increased global investments by Indian companies.

Other Developments

Jaishankar Refutes Trump’s Mediation Claims 

External Affairs Minister S Jaishankar clarified that the ceasefire between India and Pakistan was a direct bilateral decision, dismissing claims of foreign mediation, including by the United States. In an interview with Dutch broadcaster NOS, Jaishankar stated that it was the Pakistani Army that initiated the move to halt firing, and India responded accordingly.

He emphasised that while US officials, including Secretary of State Marco Rubio and Vice President JD Vance, contacted Indian leaders to express concern, they did not mediate the process. Jaishankar responded sharply to US President Donald Trump's recent claim of having mediated the ceasefire, asserting that any talks were strictly between India and Pakistan. "The US was in the United States," he said.

Pakistan Hires Trump-Linked Lobbyists

Pakistan has engaged two US lobbying firms, Javelin Advisors and another led by Trump associates Keith Schiller and George Sorial, to bolster its image and foster economic ties with the US amid ongoing tensions with India.

This move is seen as influencing President Donald Trump’s recent stance equating India and Pakistan, particularly in trade discussions. The lobbyists aim to secure US investments in Pakistan’s mining sector and strengthen government and private sector connections.

India’s Ministry of External Affairs noted that hiring lobbyists is a decades-long practice for many countries, including India, which has engaged firms since the 1950s, notably during the 2007 Nuclear Deal. Such engagements are legal, standard among embassies in Washington, DC, and are publicly disclosed.

Trump Blocks Harvard From Enrolling International Students

The Trump administration has revoked Harvard University's certification to enrol international students. The decision impacts over 6,700 international students and has triggered widespread anxiety and uncertainty on campus, especially as many near graduation. Homeland Security Secretary Kristi Noem has issued a warning to other academic institutions, while Harvard has vowed to fight back.

This development is part of a broader clash between the administration and elite universities, with Harvard facing investigations, demands to reform policies on hiring and antisemitism, and threats to its tax-exempt status and federal funding. The university maintains that it has addressed concerns over antisemitism and views the administration’s actions as an attempt to exert political control.

From The States

Telangana To Launch Backwardness Index Based On Caste Data

The Telangana government’s expert group, led by Justice Sudarshan Reddy (Retd.), is developing a first-of-its-kind Composite Backwardness Index (CBI) to assess disparities among 243 sub-castes using data from the 2024 SEEEPC caste survey.

The index will be calculated using 43 parameters across seven categories, including education, income, and living standards, and will offer a comprehensive ranking of each sub-caste’s relative backwardness.

Convenor Praveen Chakravarty said the statistical analysis is complete and the final report will be submitted to the state within a month. The group also proposed creating an AI-powered natural language interface to make aggregate SEEEPC data publicly accessible for research, without compromising individual privacy.

J&K: Chargesheet Against Satya Pal Malik In Corruption Case

The CBI has filed a chargesheet against former Jammu and Kashmir governor Satya Pal Malik and six others over alleged corruption in awarding a Rs 2,200-crore contract for the Kiru Hydroelectric Power Project in Kishtwar. The investigation follows Malik’s 2021 claim that he was offered Rs 300 crore in bribes to clear files, including one involving an RSS leader, which led to the CBI registering cases and conducting multiple searches.

The contract was improperly awarded to Patel Engineering after the project tender was cancelled and then revived without transparency, fuelling suspicions of corruption. Malik’s accusations and his comments against the Modi government appear to be part of a broader attempt to deflect attention from his own complicity, reports says.

You’re all caught up—until next time.