
Big shift brews in India's neighbourhood: Pak, China prepare ground for an alternative to SAARC
SAARC falls out of favour
Live Events
Decoding the proposed new arrangement
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
In a significant diplomatic development with big likely implications for India's immediate neighbourhood, Pakistan and China are reportedly advancing plans to establish a new regional organisation aimed at enhancing cooperation in South Asia , PTI reported on June 30. This initiative comes as a response to the prolonged stagnation of the South Asian Association for Regional Cooperation ( SAARC ), which has been inactive largely due to tensions between India and Pakistan, the report said.PTI cited Pakistan's Express Tribune newspaper to report that discussions between Islamabad and Beijing are progressing, with both nations recognising the necessity for a fresh platform to boost regional integration and connectivity.As the new situation develops, the implications for regional politics and economics could be significant. If realised, this new initiative may redefine the landscape of South Asian cooperation, fostering closer ties among member nations while providing an alternative to the now-defunct SAARC framework, the report said.The coming months will be crucial as discussions progress and the vision for this new entity takes shape, it added.SAARC, which includes India, Afghanistan, Bangladesh, Bhutan, the Maldives, Nepal, Pakistan, and Sri Lanka, has not convened since its last summit in Kathmandu in 2014.The 2016 summit scheduled in Islamabad was cancelled after India withdrew its participation following the terrorist attack in Uri. This incident led Bangladesh, Bhutan, and Afghanistan to also decline attending, effectively placing SAARC in a state of suspension.The proposed new organisation aims to fill this void, providing a space for dialogue and collaboration among South Asian nations.The recent trilateral meeting involving Pakistan, China, and Bangladesh in Kunming was a pivotal moment in these discussions.While Bangladesh's interim government has dismissed the notion of a formal alliance, saying that the meeting was not political in nature, sources indicate that the proposed organisation would extend invitations to other South Asian countries previously involved in SAARC.Notably, India is expected to be included, along with Sri Lanka, the Maldives, and Afghanistan. The new organisation is being seen as a potential vehicle for enhancing trade and connectivity across the region, addressing the current gaps left by SAARC.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Mint
14 minutes ago
- Mint
India's GST collections hit all-time high of ₹22.08 lakh crore in 2024-25, a 9.4% growth YoY — Details here
India's gross collection of goods and services tax (GST) hit an all-time high of ₹ 22.08 lakh crore in the financial year 2024-25, marking a 9.4 per cent year-on-year (YoY) growth compared to the previous financial year, according to an official statement on Monday, 30 June 2025. 'In 2024–25, GST recorded its highest-ever gross collection of ₹ 22.08 lakh crore, reflecting a year-on-year growth of 9.4 per cent. The average monthly collection stood at ₹ 1.84 lakh crore,' said the government in a press note. The data also showed that gross collections doubled in the last five years, compared to ₹ 11.37 lakh crore in the 2020-21 fiscal year. The monthly average collection of GST was ₹ 95,000 crore during that time. As of 30 April 2025, there are more than 1.51 crore active GST registrations in India, with over 1.32 crore as normal taxpayers, 14.86 lakh composition taxpayers, and 3.71 lakh as Tax Deducted at Source (TDS) among other taxable portions. 'In 2020–21, the total collection was ₹ 11.37 lakh crore, with a monthly average of ₹ 95,000 crore. The following year, it rose to ₹ 14.83 lakh crore, and then to ₹ 18.08 lakh crore in 2022–23. In 2023–24, GST collections reached ₹ 20.18 lakh crore, showing consistent growth in compliance and economic activity,' said the government in the release. On 1 July 2025, India will mark the completion of eight years since the implementation of the GST. The gross GST collections for May 2025 witnessed a 16.4 per cent rise to over ₹ 2.01 lakh crore, reported news agency PTI, citing government data on 1 June 2025. In May 2025, gross revenues from domestic transactions increased 13.7 per cent to ₹ 1.50 lakh crore, while GST revenues from imports rose 25.2 per cent to ₹ 51,266 crore. According to the agency report, the gross central GST revenues stood at ₹ 35,434 crore, while the State GST revenues were ₹ 43,902 crore. The Integrated GST for May 2025 was ₹ 1.09 lakh crore.
&w=3840&q=100)

First Post
15 minutes ago
- First Post
How did Pakistan get picked to lead the UN Security Council?
In July 2025, Pakistan assumes the rotating presidency of the UN Security Council, a position it takes on as part of its two-year term as a non-permanent member. The presidency rotates monthly among the Council's 15 members based on English alphabetical order. Pakistan last held UNSC membership in 2012–13, and has served seven times since 1952 read more Pakistan's Permanent Representative to the United Nations, Asim Iftikhar Ahmad, speaks during a meeting of the United Nations Security Council at UN headquarters in New York City, US, June 20, 2025. File Image/Reuters The Islamic Republic of Pakistan will take over the presidency of the United Nations Security Council (UNSC) for the month of July 2025. This role falls within Pakistan's current two-year tenure as a non-permanent member of the Council, which commenced on at the start of this year. Ambassador Asim Iftikhar Ahmad, Pakistan's Permanent Representative to the United Nations, will lead the Council throughout the month. He recently met with UN Secretary-General António Guterres to outline the Security Council's agenda during Pakistan's presidency. STORY CONTINUES BELOW THIS AD This marks the eighth time Pakistan has served on the Security Council, having previously held non-permanent membership in 1952–53, 1968–69, 1976–77, 1983–84, 1993–94, 2003–04, and 2012–13. The presidency offers Islamabad a platform to steer discussions and spotlight key international issues. Pakistan is expected to convene at least two open meetings during its presidency of the United Nations Security Council (UNSC) in July, with indications that it may bring up topics such as Operation Sindoor and the situation in Jammu and Kashmir. According to a source speaking to The Print, there is a prevailing view within the Indian establishment that Islamabad could use its current seat on the UNSC — where India is not presently represented — to spotlight regional South Asian matters on the global stage, particularly in the context of recent developments following Operation Sindoor. During its presidency, Pakistan will also reportedly convene two major high-level signature events. One will focus on multilateralism and the peaceful settlement of disputes, while the second will examine cooperation between the United Nations and the Organisation of Islamic Cooperation (OIC). How is the UNSC presidency determined? The presidency of the Security Council rotates monthly among its 15 members, according to Rule 18 of the Security Council's Provisional Rules of Procedure, which states: 'The presidency of the Security Council shall be held in turn by the members of the Security Council in the English alphabetical order of their names. Each President shall hold office for one calendar month.' This rotation includes both permanent and non-permanent members and follows a fixed alphabetical order to ensure equity. STORY CONTINUES BELOW THIS AD In 2025, Pakistan's presidency follows Guyana (June) and precedes Panama (August). Earlier in the year, Algeria (January), China (February), Denmark (March), France (April), and Greece (May) held the presidency. Later months will see the Republic of Korea (September), the Russian Federation (October), Sierra Leone (November), and Slovenia (December) take on the rotating role. The monthly presidency allows each Council member, regardless of permanent or elected status, to chair meetings, steer the Council's agenda, and represent the body publicly. Although largely procedural in nature, it grants the presiding country notable visibility and agenda-setting influence. How are UNSC members chosen? The UNSC is composed of 15 member states: five permanent members (China, France, Russia, the United Kingdom, and the United States) and ten non-permanent members elected for two-year terms. These non-permanent members are chosen by the General Assembly and must secure a two-thirds majority in a secret ballot, in accordance with Rule 83 of the Assembly's rules of procedure. Notably, there are no formal nominations, and retiring members are ineligible for immediate re-election as per Rule 144. The criteria for election to the Security Council include a country's contribution to the maintenance of international peace and security — often demonstrated through leadership in regional peace initiatives, troop contributions to peacekeeping missions or financial support — as well as equitable geographical distribution, which was formalised through a 1963 amendment to Article 23 of the UN Charter. STORY CONTINUES BELOW THIS AD That amendment came into force in August 1965 and expanded the number of non-permanent members from six to ten. As per the General Assembly's Resolution 1991 A (XVIII), the distribution of non-permanent seats follows this pattern: Five from African and Asian states One from Eastern European states Two from Latin American states Two from Western European and other states An informal agreement ensures that one of the Asian or African seats is always held by an Arab country, alternating between the two regions. What does the Security Council do? The Security Council is the UN's chief organ for international peace and security. It is empowered to make decisions that are binding on all 193 UN member states. It can impose sanctions, authorise peacekeeping missions and even permit the use of military force to address conflicts. The Council's authority stems from Chapter VI and Chapter VII of the UN Charter. Chapter VI encourages peaceful resolution through dialogue, arbitration or mediation, while Chapter VII provides for stronger measures — including coercive sanctions or military intervention — if peaceful means fail. Over the decades, the Council has dealt with a wide spectrum of global crises: civil wars, nuclear proliferation, humanitarian disasters, terrorism, and more. Yet its effectiveness has increasingly come under scrutiny, particularly when the interests of its five permanent members diverge. The permanent members, collectively known as the P5, hold veto power — any one of them can block the adoption of any substantive resolution. STORY CONTINUES BELOW THIS AD This has repeatedly led to stalemates, especially on high-profile matters such as Syria, Ukraine and Palestine. For instance: Russia (including during the Soviet era) has used the veto 158 times, making it the most frequent user. The United States has used the veto 92 times, including to block a resolution in April 2024 supporting Palestinian statehood. China has increasingly exercised its veto rights, often aligning with Russia—more than three-quarters of China's vetoes have had Russian support. France and the UK have not used the veto since 1989 and have called for restraint in its usage. Despite structural limitations, the Council remains central to multilateral diplomacy. It oversees 11 peacekeeping operations as of 2024, with nearly 100,000 uniformed personnel deployed across three continents. These missions range from traditional peacekeeping to more robust interventions that include civilian protection, electoral assistance and legal institution-building. Why aren't other global powers involved actively in the UNSC? Criticism of the UNSC's composition and effectiveness has grown louder in recent years. While the last structural reform occurred in 1965, many argue that the Council no longer reflects today's geopolitical realities. Global powers like India, Brazil, Germany, Japan, Nigeria and South Africa have long pushed for a more inclusive Security Council — either through permanent seats or an expansion in elected membership. There have also been suggestions that France could relinquish its seat in favour of the European Union, particularly after Brexit. In 2019, France and Germany took the unprecedented step of jointly presiding over the Council for two months. In 2021, the UK publicly supported Germany's bid for permanent membership. More recently, in January last year, UN Secretary-General António Guterres expressed hope that Africa would receive permanent representation, citing support from each of the five permanent members. Despite such advocacy, progress remains slow. With every structural change requiring the approval of the current P5 — who are unlikely to dilute their power — UNSC reform continues to be one of the most contentious and unresolved issues in international governance. STORY CONTINUES BELOW THIS AD Also Watch: With inputs from agencies


Time of India
23 minutes ago
- Time of India
Indian banking sector robust with record-high capital buffers, non-performing loans ratios at multi-decade lows: RBI
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel The Reserve Bank of India on Monday in its Financial Stability Report said that India's banking system has remained robust with capital buffers reaching record high, non-performing loans ratios at multi-decadal low, and improved operational performance. Macro stress tests reaffirm the resilience of banks to adverse scenarios. The resilience of the NBFC sector is bolstered by enhanced asset quality and healthy capital buffers. Interconnectedness among financial sector entities, as reflected in their bilateral exposures, continued to grow in double-digits," said the RBI in its banks' gross bad loan ratio will remain close to multi-decade lows if economic growth holds steady as projected, a report published by the central bank on Monday Reserve Bank of India forecasts growth at 6.5% and 6.7% in fiscal 2026 and gross bad loan ratio of 46 banks was at 2.3% in March 2025 and is seen rising only marginally to 2.5% by March 2027, the RBI said in the Financial Stability gross bad loan ratio is the proportion of bad assets of a lender to total loans.