Daily Current Affairs- 14th May 2025

Daily Current Affairs- 14th May 2025

US and Saudi Arabia Sign Historic $142 Billion Arms Deal During Trump's Riyadh Visit

In the News: On May 13, 2025, during his visit to Riyadh, President Donald Trump announced a landmark $142 billion arms deal between the United States and Saudi Arabia. Touted as the largest defence cooperation agreement in U.S. history, the deal encompasses a wide array of military equipment and services, aiming to bolster Saudi Arabia's defence capabilities and strengthen bilateral ties.

Key Points:

• Comprehensive defence Package: The agreement includes advanced air and missile defence systems, maritime security enhancements, and cutting-edge communication technologies, involving collaborations with over a dozen U.S. defence contractors.
• Strategic Economic Partnership: This arms deal is part of a broader $600 billion investment commitment from Saudi Arabia to the U.S., encompassing sectors like energy, technology, and infrastructure, reflecting deepening economic ties between the two nations.
• Support for Saudi Vision 2030: The deal aligns with Crown Prince Mohammed bin Salman's Vision 2030 initiative, aiming to diversify Saudi Arabia's economy and reduce its dependence on oil by enhancing its defence and technological sectors.
• Regional Security Implications: The agreement is seen as a move to counter regional threats and stabilize the Middle East, with the U.S. reaffirming its commitment to Saudi Arabia's security amidst ongoing tensions in the region.
• Historical Context: This deal surpasses the previous $110 billion arms agreement signed in 2017 during Trump's first term, marking a significant escalation in defence cooperation between the two countries. 

India Rolls Over $50 Million Treasury Bill to Support Debt-Ridden Maldives

In the News: On May 12, 2025, India extended crucial financial support to the Maldives by rolling over a $50 million Treasury Bill for another year. This move, facilitated through the State Bank of India (SBI), aims to bolster the Maldivian government's efforts in implementing fiscal reforms and enhancing economic resilience amid ongoing financial challenges.

Key Points:

• Interest-Free Financial Assistance: Since March 2019, India has been subscribing to $50 million Treasury Bills issued by the Maldivian Ministry of Finance, renewing them annually on an interest-free basis. This unique government-to-government arrangement serves as emergency financial assistance to the Maldives.
• Support Amid Economic Strain: The Maldives faces significant economic challenges, with public and publicly guaranteed debt reaching $9.4 billion (over 134% of GDP) by the end of 2024. The country also grapples with declining foreign exchange reserves and reduced market access following credit rating downgrades by Fitch and Moody’s in 2024.
• Alignment with 'Neighbourhood First' Policy: India's continued financial support underscores its commitment to the 'Neighbourhood First' policy and Vision 'MAHASAGAR' (Mutual and Holistic Advancement for Security and Growth Across Regions), aiming to strengthen ties with key maritime neighbors like the Maldives.
• Acknowledgment from Maldivian Leadership: Maldivian Foreign Minister Abdulla Khaleel expressed gratitude to India, stating that the timely assistance reflects the close bonds of friendship between the two countries and supports the government's ongoing fiscal reform efforts.
• Strategic Financial Collaboration: The rollover of the Treasury Bill is part of broader financial cooperation between India and the Maldives, including previous agreements such as a $400 million currency swap and developmental assistance, aimed at stabilizing the Maldivian economy and reinforcing bilateral relations. 

Bangladesh to Receive $1.3 Billion from IMF as Reform Deal Reached

In the News: On May 14, 2025, Bangladesh secured a staff-level agreement with the International Monetary Fund (IMF) for the disbursement of approximately $1.3 billion. This marks a significant milestone in the country’s $4.7 billion loan program that began in 2023, and reflects IMF’s satisfaction with the progress of reforms undertaken by Bangladesh under the Extended Credit Facility (ECF), Extended Fund Facility (EFF), and Resilience and Sustainability Facility (RSF). The agreement is subject to approval by the IMF Executive Board.

Key Points:

• Breakup of Disbursement: The total amount includes SDR 650.5 million (approx. $874 million) under the ECF and EFF arrangements and SDR 333.3 million (approx. $448 million) under the RSF, making the combined tranche worth around $1.3 billion.
• Major Reform Measures: As part of its commitments, Bangladesh has agreed to adopt a more flexible exchange rate regime through a crawling peg mechanism, initiate tax reforms by reducing exemptions, and strengthen governance in the financial sector.
• Institutional Restructuring: To enhance revenue efficiency, Bangladesh has dismantled the National Board of Revenue and established two separate divisions within the Finance Ministry—one for tax policy and another for tax administration.
• Economic Challenges: The IMF acknowledged the macroeconomic pressures faced by Bangladesh, including slowing GDP growth (projected at 3.8% in FY25), high inflation (estimated at 8.5%), and reduced foreign exchange reserves.
• Additional Support Anticipated: Alongside IMF funds, Bangladesh is expected to receive $2 billion in budgetary support from other development partners such as the World Bank, ADB, AIIB, Japan, and the OPEC Fund. 

Anita Anand Becomes Canada’s First Hindu Woman Foreign Minister

In the News: On May 13, 2025, Anita Anand was appointed as Canada’s Minister of Foreign Affairs by Prime Minister Mark Carney, making her the first Hindu woman and the first woman of Indian origin to hold this position in Canadian history.

Key Points:

• Historic Appointment: Anand's appointment is a significant milestone, reflecting Canada's commitment to diversity and inclusion in its political landscape.
• Oath Ceremony: During the swearing-in ceremony, Anand took her oath with her hand on the Bhagavad Gita, symbolizing her Hindu faith and cultural heritage.
• Early Life and Education: Born on May 20, 1967, in Kentville, Nova Scotia, to Indian immigrant parents—her father from Tamil Nadu and mother from Punjab.
• Professional Career:
  • Before entering politics, Anand was a law professor at the University of Toronto, specializing in corporate governance and financial markets.
• Political Career:
  • Elected as Member of Parliament for Oakville in 2019.
  • Held various ministerial positions:
    • Minister of Public Services and Procurement (2019–2021), overseeing Canada's COVID-19 vaccine procurement.
    • Minister of National Defence (2021–2023), leading military reforms and support for Ukraine.
    • President of the Treasury Board (2023–2024).
    • Minister of Transport and Internal Trade (2024–2025). 

Pakistan's Balochistan Appoints First Hindu Woman Assistant Commissioner

In the News: On May 13, 2025, Kashish Chaudhary made history by becoming the first Hindu woman to be appointed as an Assistant Commissioner in Balochistan, Pakistan. At just 25 years old, she hails from Noshki, a remote town in the Chagai district, and achieved this milestone after successfully passing the Balochistan Public Service Commission (BPSC) examination.

Key Points:

• Trailblazing Achievement: Kashish's appointment marks a significant step forward for minority representation and women's empowerment in Pakistan's civil service, particularly in the underrepresented province of Balochistan.
• Dedication and Preparation: She dedicated three years to preparing for the BPSC exam, studying approximately eight hours daily, demonstrating her commitment and perseverance.
• Family Support and Recognition:n Accompanied by her father, Girdhari Lal, Kashish met with Balochistan Chief Minister Sarfaraz Bugti, who praised her accomplishment as a source of pride for both the province and the nation.
• Advocacy for Marginalized Communities:n Kashish expressed her intent to work towards the empowerment of women and minorities, aiming to serve as a voice for the underrepresented in society.
• Inspiration for Future Generations: Her success story serves as an inspiration for young women and minority communities in Pakistan, highlighting the possibilities that arise from dedication and hard work. 

Chandrayaan-5 Mission: India and Japan Enter Design Phase

In the News: The Government of India approved the Chandrayaan-5 mission, marking a significant collaboration between the Indian Space Research Organisation (ISRO) and the Japan Aerospace Exploration Agency (JAXA). This joint endeavor aims to explore the Moon's south pole region, focusing on the detection and analysis of water ice.

Key Points:

• Mission Overview: Chandrayaan-5, also known as the Lunar Polar Exploration Mission (LUPEX), is a collaborative effort between ISRO and JAXA. The mission's primary objective is to investigate the presence of water ice in the permanently shadowed regions of the Moon's south pole, which holds potential for future lunar habitation and resource utilization.
• Technical Collaboration: In this mission, ISRO is responsible for developing the lander, while JAXA will provide the rover and the H3 launch vehicle. The rover, weighing approximately 350 kg, is significantly heavier than previous Indian lunar rovers and is designed to conduct in-depth analysis of the lunar surface and subsurface.
• Scientific Objectives: The mission aims to study the quantity and distribution of water ice on the Moon, assess the feasibility of utilizing lunar resources, and demonstrate technologies necessary for sustainable lunar exploration. The data collected will also contribute to the broader goals of international lunar missions, including NASA's Artemis program.
• Timeline and Development: Currently in the design phase, Chandrayaan-5 is slated for launch no earlier than 2028. The mission follows the planned Chandrayaan-4, which is a lunar sample-return mission expected to launch in 2027. The sequential execution of these missions reflects India's strategic roadmap for advanced lunar exploration.
• International Significance: The Chandrayaan-5 mission exemplifies the growing trend of international cooperation in space exploration. By combining ISRO's expertise in lunar landings with JAXA's advancements in rover technology, the mission is poised to make significant contributions to our understanding of the Moon and pave the way for future collaborative endeavors in space.