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Pakistan and Bangladesh Discuss Fighter Jet Deal Amid Warming Ties
The air force chiefs of Pakistan and Bangladesh have held detailed discussions on a possible agreement for the sale of JF-17 Thunder fighter jets to Dhaka, Pakistan’s military said, marking a significant step in Islamabad’s bid to expand its defence exports and strengthen ties with Bangladesh.
Talks Focus on JF-17 and Training Support
The talks in Islamabad brought together Pakistan’s Air Chief Marshal Zaheer Ahmed Baber Sidhu and Bangladesh Air Chief Marshal Hasan Mahmood Khan. According to a statement from Pakistan’s Inter-Services Public Relations (ISPR), the two sides explored the potential procurement of the JF-17 Thunder, a multi-role combat aircraft jointly developed by Pakistan and China.
The ISPR added that Pakistan had pledged to “fast-track delivery of Super Mushshak trainer aircraft, along with a complete training and long-term support ecosystem.” The Mushshak trainers are a key part of Pakistan’s export portfolio and are already in use by several air forces in the Middle East and Africa.
The meeting comes as Pakistan seeks to leverage its recent military success in last May’s confrontation with India the worst fighting between the two nuclear-armed neighbours in nearly three decades to boost the global appeal of its home-grown defence technology.
Relations Improve After Diplomatic Freeze
The discussions also reflect a sharp improvement in relations between Islamabad and Dhaka after years of tension. Ties began to thaw following mass protests in Bangladesh in August 2024 that forced former Prime Minister Sheikh Hasina to flee to India, effectively rupturing Dhaka’s relations with New Delhi.
“The visit underscored the strong historical ties between Pakistan and Bangladesh and reflected a shared resolve to deepen defence cooperation and build a long-term strategic partnership,” the Pakistani military said in its statement.
Since Hasina’s ouster, the two countries have resumed direct trade for the first time since the 1971 war that led to Bangladesh’s independence. Their military officials have also held multiple rounds of talks aimed at expanding defence and economic collaboration.
Bangladesh is currently under an interim government led by Nobel laureate Muhammad Yunus and will hold general elections on 12 February. The upcoming vote could see the political return of the once-banned Jamaat-e-Islami party, which has long maintained ideological ties with Pakistan.
Expanding Pakistan’s Defence Export Ambitions
The JF-17 Thunder has become the centrepiece of Pakistan’s weapons development programme. The aircraft has already featured in deals with Azerbaijan and in a $4-billion weapons agreement with the Libyan National Army.
Pakistan’s Defence Minister Khawaja Asif said on Tuesday that the country’s growing weapons industry could soon play a pivotal role in its economic revival. “Our aircraft have been tested, and we are receiving so many orders that Pakistan may not need the International Monetary Fund in six months,” Asif told broadcaster Geo News.
Analysts say a potential aircraft deal with Bangladesh would not only symbolise a diplomatic reset but also enhance Pakistan’s position as an emerging defence exporter in Asia.
with inputs from Reuters
G7 Finance Ministers to Meet in Washington to Discuss Rare Earths Supply
Finance ministers from the Group of Seven (G7) nations are scheduled to meet in Washington on 12 January to discuss rare earths and other critical mineral supplies, three sources familiar with the plans said on Tuesday.
Price Floors on Agenda
One of the sources said the ministers are expected to debate possible price floors for rare earth elements an issue gaining traction as industrial nations seek to diversify supply chains and reduce dependence on China. The meeting will also cover broader strategies for securing access to key materials vital for clean energy technologies and high-end manufacturing.
G7 economies, except Japan, remain heavily or entirely reliant on China for rare earth magnets, battery metals, and other critical resources essential to electric vehicles, renewable energy systems and defence industries.
Drive to Reduce Dependence on China
In June last year, G7 leaders agreed on an action plan aimed at strengthening supply chain resilience and boosting investment in alternative sources. Since then, officials have been examining pricing mechanisms to make mining and processing projects outside China economically sustainable.
The United States took an early step by introducing a minimum price in a government-backed contract for domestic rare earth supplies in 2024. That initiative is viewed as a model for future cooperation among G7 members, which also include Canada, France, Germany, Italy, Japan, and the United Kingdom.
Economic and Strategic Context
The discussion reflects growing concern among Western nations about China’s dominance in critical minerals a sector Beijing has occasionally used as leverage in geopolitical disputes. Establishing price floors could encourage long-term investment in mining and refining projects in partner countries, ensuring stable access to these strategic materials.
A spokesperson for the U.S. Treasury, which will host the meeting, did not immediately respond to a request for comment. The upcoming talks are expected to produce a joint statement outlining next steps in implementing the G7’s supply chain diversification plan.
with inputs from Reuters
South Korea’s President Lee Seeks Xi’s Mediation in North Korea Dialogue
South Korean President Lee Jae Myung said on Wednesday that relations between Seoul and Beijing had entered a more positive phase, with “much progress” made in rebuilding trust. Speaking at a press conference in Shanghai after his meeting with Chinese President Xi Jinping, Lee said he had asked Xi to play a mediating role in efforts to restart dialogue with North Korea.
Lee Appeals for China’s Help on North Korea
Lee described his talks with Xi as constructive, noting that the Chinese leader had responded with caution regarding North Korea. “President Xi acknowledged our efforts so far and said patience is needed,” Lee told South Korean media during his televised remarks.
Seoul has repeatedly sought to resume talks with Pyongyang aimed at easing tensions on the Korean peninsula, but those overtures have so far been met with silence. Lee said he had presented Xi with a full account of his administration’s efforts to engage North Korea and appealed for China’s help in mediating future dialogue.
Beijing remains North Korea’s most important political and economic partner, and its cooperation is seen as critical for any progress in inter-Korean diplomacy.
Warming Ties After Years of Strain
Lee’s visit to China marks his second meeting with Xi in less than three months, underscoring his determination to “open a new phase” in bilateral ties after several years of diplomatic chill. Relations deteriorated sharply following the 2017 deployment of a U.S. missile defence system in South Korea, which prompted Beijing to restrict Korean cultural and business activities in retaliation.
According to Lee, Xi emphasised that while “talk is easy, action is not so easy,” stressing the need for sustained effort to rebuild trust. Lee said he agreed, noting that “diplomatic relations are inherently complex in balancing each other’s key national interests.”
Regional Balance and Hopes for Stability
Lee also expressed hope that rising tensions between China and Japan could be managed constructively, saying that South Korea values both relationships equally. “We consider our ties with Japan as important as our relations with China,” he said.
The South Korean president’s visit forms part of a broader diplomatic effort to strengthen Seoul’s regional standing while maintaining its strategic balance between China, Japan, and the United States. His outreach to Xi signals a pragmatic approach aimed at reviving dialogue and reducing tensions on the peninsula through diplomatic engagement rather than confrontation.
with inputs from Reuters
Beijing Bans Two Taiwanese Ministers, Escalating Cross-Strait Tensions
Beijing on Wednesday barred two senior Taiwanese ministers and their families from entering China, Hong Kong, and Macau, accusing them of promoting “Taiwan independence.” The move, which Taipei condemned as intimidation, marks another escalation in the already strained cross-strait relationship.
Beijing Targets ‘Die-Hard Secessionists’
China’s Taiwan Affairs Office labelled Taiwan’s Interior Minister Liu Shyh-fang and Education Minister Cheng Ying-yao as “die-hard Taiwan independence secessionists.” The decision extends to their relatives and follows a growing list of officials Beijing has blacklisted over what it calls separatist activities.
Mainland Affairs Office spokesperson Chen Binhua said the list now includes 14 individuals, among them Taiwan’s Vice President Hsiao Bi-khim, National Security Council head Joseph Wu, and Defence Minister Wellington Koo. Beijing has also accused Chen Shu-yi, a prosecutor with Taiwan’s High Prosecutors Office, of acting as an accomplice in separatist activities and vowed to hold her “accountable for life.”
Chen urged the public to submit evidence about Chen Shu-yi’s alleged actions, promising “severe punishment,” though he did not specify what form that might take. He added that Beijing’s actions targeted only “a small number of Taiwan independence die-hards” and were intended to “safeguard national sovereignty and territorial integrity.”
Taipei Condemns ‘Threats and Intimidation’
Taiwan’s Mainland Affairs Council issued a firm protest, calling Beijing’s actions politically motivated and counterproductive. It said the bans severely undermined cross-strait relations and would only “provoke anger among the public.”
“The Chinese Communist authorities are attempting to create a chilling effect beyond the named individuals, coercing Taiwanese people into abandoning their determination to uphold democracy and the status quo,” the council said. It accused China of trying to assert “long-arm jurisdiction” by treating the issue as a domestic criminal matter, despite Taiwan’s separate legal system.
“Threats and intimidation will never shake the resolve of the Taiwanese people to uphold democracy and freedom,” the council added, warning that Beijing must bear “all serious consequences” arising from its actions.
Military Pressure and Broader Context
The announcement comes just a week after China carried out its largest-ever military exercises around Taiwan, firing dozens of rockets and deploying warships and aircraft near the island. The drills disrupted dozens of flights in Taiwan and drew concern from regional allies and Western governments.
Beijing continues to claim Taiwan as part of its territory and has not ruled out the use of force to bring the island under its control. Taipei rejects China’s sovereignty claims, insisting that only the Taiwanese people can determine their future.
The latest bans reflect China’s broader strategy of political, military, and legal pressure on Taiwan, even as it denies targeting ordinary Taiwanese citizens. Analysts say the campaign underscores Beijing’s intent to isolate Taipei internationally while tightening its grip over the narrative on cross-strait relations.
with inputs from Reuters
Yemen’s STC Leader Al-Zubaidi Fled Country, Saudi-Backed Coalition Says
The leader of Yemen’s Southern Transitional Council (STC), Aidarous al-Zubaidi, failed to board a plane set to take him to Riyadh and fled instead to an unknown destination, the Saudi-backed coalition in the country said on Wednesday.
The remarks came amid efforts to end fighting that erupted last month between the STC, backed by the United Arab Emirates, and Yemen’s Saudi-backed internationally recognised government, which has triggered a major feud between the Gulf allies.
Zubaidi was set to travel to Saudi Arabia days after Yemen’s government said it had asked Riyadh to host a forum on the southern issue.
In a statement, coalition spokesperson Turki al-Maliki said a flight carrying a large number of senior leaders of the separatist group departed after a delay of more than three hours without Zubaidi, and with no information on his whereabouts.
During the delay, “information became available indicating that he had moved large forces,” Maliki added, citing “calls for mobilisation and the movement and arming of factions with light and medium weapons”.
The feud between the UAE and Saudi Arabia has fractured a coalition originally created to fight the Iran-aligned Houthis, who are still the dominant military force in Yemen.
The Houthis seized the Yemeni capital of Sanaa in 2014, and Gulf countries intervened the following year in support of the internationally recognised government, splitting Yemen into rival zones of control.
Strikes In Al-Dhalea
The coalition also said it carried out limited pre-emptive airstrikes in Yemen’s southern province of al-Dhalea after monitoring the movements of armed forces that had left their camps.
Domestic sources and sources within the STC reported more than 15 strikes in the province, the birthplace of Zubaidi.
Following the developments, the Saudi-backed presidential council stripped Zubaidi of his membership and referred him to the public prosecutor on charges including high treason, state news agency SABA said.
The decision, issued by council chairman Rashad al-Alimi, accused Zubaidi of inciting armed rebellion, attacking constitutional authorities and committing abuses against civilians in southern Yemen.
For years, the STC has been part of Yemen’s internationally recognised government.
(with inputs from Reuters)
Chinese War Games Try To Undermine Global Support For Us, Says Taiwan
China’s war game exercises around Taiwan last week were part of a campaign to counter growing international support for the island and an attempt to divert attention away from Beijing’s economic troubles, Taiwan’s top security agency said on Wednesday.
As part of its exercises, called “Justice Mission 2025,” China fired dozens of rockets towards Taiwan and deployed a large number of warships and aircraft near the island. That caused dozens of domestic flights in Taiwan to be cancelled and drew concern from allies in the region and the West.
“The Taiwan-focused drills carried clear political intent: to push back in the international arena against democratic partners’ support for Taiwan,” the National Security Bureau said in a report to Parliament. A copy of the report was reviewed by Reuters.
The drills, China’s most extensive war games to date by coverage area, were also meant to “redirect public anger over economic setbacks and social disorder at home into nationalist sentiment framed as ‘resisting external interference,'” the report said.
‘Hybrid’ Campaign
The report said China has been ramping up a “hybrid” campaign to pressure Taiwan militarily and economically, drawing resistance from democratic partners in the U.S. and Europe.
The report also pointed to a comment from Japanese Prime Minister Sanae Takaichi about Taiwan late last year. She said a Chinese attack on democratically governed Taiwan could be deemed an existential threat to Japan. The report said the comment underscored how security in the Taiwan Strait was viewed as directly linked to stability in the Indo-Pacific and international order.
China’s Taiwan Affairs Office did not respond to a request for comment on the report.
Speaking at a regular press conference on Wednesday, the office said recent military drills around Taiwan, including those held last week, were intended to “staunchly defend national sovereignty and territorial integrity.”
The exercises were also aimed at “upholding the shared interests of compatriots on both sides of the strait and the fundamental interests of the Chinese nation,” it said.
Beijing claims Taiwan as its own territory and has not ruled out the use of force to bring the island under its control. Taipei strongly objects to China’s sovereignty claims and says only Taiwan’s people can decide their future.
China’s Aggression
The report said that during the drills, China used state media, artificial intelligence-generated content and online “troll armies” to amplify its narratives, cast doubt on the Taiwanese military’s capabilities and undermine trust in President Lai Ching-te and the U.S.
Some 19,000 “controversial messages” were pushed out across several social media platforms by 799 accounts in the span of five days, the report said.
On the first and second days of the drills, Taiwan’s government received more than two million cyberattacks, the report said. It named the People’s Liberation Army‑linked hacking groups APT24 and BlackTech as being among the most active participants.
China’s armed forces have been synchronising hacking campaigns with military drills around Taiwan to “disrupt the island’s cybersecurity environment and unsettle public morale,” the report said.
China has routinely denied being involved in hacking attacks.
(with inputs from Reuters)
Is Tarique Rahman More Wealthy Than He Actually Claims?
“The Liberation War is the foundation of Bangladesh as a state and its politics. The country’s very existence cannot be imagined without 1971.”
This is not the first time BNP acting chief Tarique Rahman has spoken about the war with Pakistan that saw the emergence of Bangladesh. With him expected to formally take over as party chief amid the countdown to elections next month, Rahman appeared to be signalling that the BNP was not like the Jamaat-e-Islami, which sided with Pakistan.
Does that suggest there will be no electoral understanding? Difficult to say, but a recent opinion poll gave the BNP a decisive edge over the Jamaat. So BNP strategists may be thinking that the party should go it alone.
But public perception is something he will have to quickly deal with: his announcement that he will fund the party’s election campaign has raised eyebrows. In tandem with reports that he and other candidates have underreported their income, there is an issue that needs to be addressed without delay and in a credible manner.
Rahman has disclosed an annual income of 6.75 lakh Bangladeshi Taka, but the math doesn’t add up: his projected campaign spending is nearly nine times his total declared annual earnings.
Financial disclosures have been a longstanding problem in Bangladesh, especially with Tarique Rahman ’s family. Khaleda Zia’s wealth was often the subject of political controversy. In 2017, the Awami League alleged that the Zia family had invested nearly $12 billion across 12 countries, including Saudi Arabia and Qatar, while revealing a much lower income.
The Jamaat, too, shares these discrepancies. While Ameer Shafiqur Rahman’s salary has been declared as Tk 3.6 lakh and his campaign expenditure will come from party funds, a Prothom Alo report quoting from his affidavit revealed that he owns a duplex house on 11.77 decimals of land. The acquisition value of the land and the house combined is shown as Tk 2.7 million.
Those familiar with the market believe that the current value of such a house would be no less than several crore taka, highlighting a discrepancy between actual and declared income.
In a post-Hasina Bangladesh that demands transparency and change, the affidavits with income declarations are a stark reminder that while Zia and Hasina are out, old patterns remain.
Trump To Sell 50 Mln Barrels Of Venezuelan Oil Amid Talks With Caracas
President Donald Trump on Tuesday unveiled a plan to refine and sell up to 50 million barrels of Venezuelan oil that had been stuck in Venezuela under U.S. blockade, in a further sign that Washington is coordinating with the Venezuelan government since capturing President Nicolas Maduro.
Maduro is in a New York jail awaiting drug charges after the Saturday morning raid that the U.S. estimates killed about 75 people, according to a Washington Post report citing officials familiar with the matter.
The U.S. has yet to report a death toll from an operation that reasserted U.S. willingness to intervene in Latin America with perhaps its most dramatic military operation since the 1989 invasion of Panama that seized Panamanian leader Manuel Noriega.
Nor has Caracas given a number for those killed, but the army posted a list of 23 names of its dead. Venezuelan officials have said a large part of Maduro’s security contingent was killed “in cold blood,” and Cuba has said 32 members of its military and intelligence services in Venezuela were killed. Venezuela’s interim President Delcy Rodriguez on Tuesday declared a week of mourning for members of the military killed in the raid.
The operation brought condemnation from Russia, China and Venezuela’s leftist allies, while allies of the United States have urged adherence to international law.
Maduro, 63, pleaded not guilty on Monday to narcotics charges. He said he was a “decent man” and still president of Venezuela, while standing in a Manhattan court shackled at the ankles and wearing orange and beige prison garb.
U.S. To Take Venezuelan Oil
While Venezuela’s political future remains uncertain amid U.S. claims that it will be running the South American country, for now, Trump appears to be working with Rodriguez and other senior officials from Maduro’s government, disappointing the opposition that had hoped to play a larger role.
Trump on social media announced that Venezuela would sell 30 million to 50 million barrels of sanctioned oil that would be shipped directly to the United States under a plan to be executed immediately by Energy Secretary Chris Wright.
“This Oil will be sold at its Market Price, and that money will be controlled by me, as President of the United States of America, to ensure it is used to benefit the people of Venezuela and the United States!” Trump said. Based on recent prices for Venezuelan oil, the deal could be worth up to $1.9 billion.
U.S. officials have yet to outline a legal framework for seizing Venezuelan oil, though the U.S. has accused Venezuelan tankers of breaking U.S. sanctions to ship Iranian and Venezuelan oil.
Trump has also suggested the U.S. would help rebuild the country’s oil infrastructure to benefit oil majors such as Exxon Mobil XOM.N and ConocoPhillips COP.N, which were affected by a Venezuelan oil nationalisation by former President Hugo Chavez, and Chevron Corp CVX.N, which has continued to operate there.
U.S. oil chief executives are expected to visit the White House as early as Thursday to discuss investments in Venezuela, according to three sources familiar with the planning.
Opposition Seeks Role
With the U.S. as its main ally, Venezuela would become the energy hub of the Americas, restore the rule of law, open markets and bring home exiles, opposition leader and Nobel Peace Prize winner Maria Corina Machado said in an interview on Monday with Fox News.
Trump has, however, been told by the CIA that Rodriguez and other senior officials from Maduro’s government are the best bet to maintain stability, sources said. The classified assessment was one reason why Trump decided to back Rodriguez instead of opposition leader Machado, the sources said.
Machado, who said she wants to return to Venezuela to lead the country, said Rodriguez was “nothing like a moderate,” and had been one of the main architects of Venezuelan repression.
“I think it’s evident the United States has instructed her to take certain actions regarding further dismantling of the criminal structure as a path forward towards a complete transition to democracy in Venezuela,” Machado told CBS News in a separate interview on Tuesday.
The Trump administration has put hardline Interior Minister Diosdado Cabello on notice that he could be at the top of its target list unless he helps Rodriguez meet U.S. demands and keep order, according to three people familiar with the matter.
Cabello, who controls security forces accused of widespread human rights abuses, is one of a handful of Maduro loyalists that Trump has decided to rely on as temporary rulers to maintain stability during a transition period, said one source briefed on the administration’s thinking. Cabello has been on the streets of Venezuela, patrolling with security forces.
“Always loyal, never traitors. Doubt is betrayal!” they chanted in one of several overnight social media posts by the Venezuelan government.
The U.S. is also pressuring the interim Venezuelan government to expel official advisers from China, Russia, Cuba and Iran, the New York Times reported, citing anonymous U.S. officials. Secretary of State Marco Rubio listed the Trump administration’s demands in a classified meeting on Monday with senior congressional leaders, the Times said. Reuters could not immediately verify the report.
Since the seizure of Maduro, Venezuelan authorities have ordered the arrest of anyone who collaborated.
Fourteen media workers were briefly detained covering events in Caracas on Monday, and shots were fired on Monday night into the sky above the city, which a Venezuelan official said came from police to deter unauthorised drones.
“There was no confrontation; the entire country remains completely calm,” Vice Minister of Communications Simon Arrechider told reporters.
(with inputs from Reuters)
Japan: China’s Dual-Use Export Ban ‘Unacceptable’; Rare Earths In Crosshairs
Japan’s top government spokesperson said on Wednesday that China’s ban on exports of dual-use items to the country was “absolutely unacceptable and deeply regrettable”, as a diplomatic dispute between Asia’s top two economies ramped up.
Dual-use items are goods, software or technologies that have both civilian and military applications, including certain rare earth elements that are essential for making drones and chips.
Takaichi’s Remarks
Japanese Prime Minister Sanae Takaichi touched off the dispute with Beijing late last year by saying a Chinese attack on democratically governed Taiwan could be deemed an existential threat to Japan. China regards Taiwan as part of its territory, a claim the island rejects.
Beijing has demanded she retract the remarks, which she has not done, prompting a series of countermeasures, the latest of which was Tuesday’s ban on exports of dual-use items for military use.
“A measure such as this, targeting only our country, differs significantly from international practice, is absolutely unacceptable and deeply regrettable,” Japan’s Chief Cabinet Secretary Minoru Kihara told a daily press conference on Wednesday.
He declined to comment on the possible impact on Japanese industry, saying it remained unclear exactly what items would be targeted.
The reaction from markets to the news was relatively muted, though Japanese shares were lower on Wednesday, bucking a global trend that carried U.S. and European benchmarks to record highs.
Japan’s broad Topix gauge of equities slid 0.55%, with a subindex of mining shares leading declines, down 3.2%.
Rare Earth Restrictions Next?
China Daily, a newspaper owned by the ruling Chinese Communist Party, reported on Tuesday that Beijing was considering tightening the license review of rare earth exports to Japan more broadly, citing sources with knowledge of the matter.
Such a move could have sweeping implications for the manufacturing powerhouse, including its key automotive sector, analysts say.
While Japan has sought to diversify its supply of rare earths since China last throttled exports of the minerals in 2010, around 60% of its imports still come from China.
A three-month curb on Chinese exports of rare earths, like that seen during 2010, could cost Japanese businesses 660 billion yen ($4.21 billion) and shave 0.11% of annual gross domestic product, Nomura Research Institute economist Takahide Kiuchi said in a note on Wednesday.
A year-long ban would knock 0.43% off GDP, he added.
So far, China Customs data has shown no sign of a decline in rare earth exports to Japan, though the data is released with some delay. In November, the latest month for which there was data, exports grew 35% to 305 metric tons, the highest tally last year.
(with inputs from Reuters)
Iran: Rights Groups Say At Least 25 Dead In Protests
At least 25 people have been killed in Iran during the first nine days of protests that started in the bazaar of Tehran over the plunging value of the currency and soaring inflation, according to rights groups.
The protests have spread to some cities in western and southern Iran but do not match the scale of unrest that swept the nation in 2022-23 over the death of Mahsa Amini, who died in the custody of Iran’s morality police for allegedly violating the Islamic Republic’s strict dress code.
However, even though smaller, these protests have quickly expanded from an economic focus to broader frustrations, with some protesters chanting against the country’s clerical rulers.
Over 1,000 Arrested
Iran also remains under international pressure, with U.S. President Donald Trump threatening on Friday to come to the aid of protesters in Iran if security forces fired on them. In response, Iran’s Supreme Leader Ayatollah Ali Khamenei vowed not to “yield to the enemy”.
Hengaw, a Kurdish Iranian rights group, put the death toll at 25, including four people under 18. It said more than 1,000 people had been arrested. HRANA, a network of rights activists, said at least 29 had been killed, including two law enforcement agents, in addition to 1,203 arrests, as of January 5.
Reuters has not been able to independently verify the numbers. Iranian authorities have not given a death toll for protesters, but have said at least two members of the security services have died and more than a dozen have been injured in the unrest.
“While drawing a distinction between protesters and rioters, law enforcement has dealt with strength against rioters by arresting them on the scene or later following identification by intelligence units,” Iran’s police chief Ahmadreza Radan was quoted by state media on Tuesday as saying.
“I pledge that we will deal with the last of these rioters. It is still time for those who were deceived by foreign services to identify themselves and draw on the Islamic Republic’s greatness.”
Government Promises Reforms
HRANA said that during the protests, slogans have gone beyond economic demands and included criticism of governance and calls for justice. Protests have so far occurred in 27 provinces out of 31 and expanded to smaller cities, it said.
Authorities have acknowledged economic hardships but accused networks linked to foreign powers of “pushing economic protests toward chaos and disorder”, with the judiciary chief pledging to have no mercy toward “rioters”.
President Masoud Pezeshkian has urged dialogue and promised reforms to stabilise the monetary and banking systems and protect purchasing power.
The government has announced a subsidy reform, removing preferential currency exchange rates for importers in favour of direct transfers to Iranians to boost their purchasing power for essential goods. The measure will come into force on January 10.
The central bank chief was also replaced on December 29.
The rial fell further to 1,489,500 on Tuesday, representing a 4% fall since the protests started.
(with inputs from Reuters)