Try Pakistan’s M2 motorway: The Gazette

ISLAMABAD - If you want a slice of peace and stability in a country with a reputation for violence and chaos, try Pakistan’s M2 motorway.

At times foreign reporters need to a give a nation a rest from their instinctive cynicism. I feel like that with Pakistan each time I whizz along the M2 between Islamabad and Lahore, the only motorway I know that inspires me to write.

Now, if the M2 conjures images of bland, spotless tarmac interspersed with gas stations and fast food outlets, you would be right. But this is South Asia, land of potholes, reckless driving and the occasional invasion of livestock.

And this is Pakistan, for many a "failed state". Here, blandness can inspire almost heady optimism.

Built in the 1990s at a cost of around $1 billion, the 228-mile (367-km) motorway -- which continues to Peshawar as the M1 -- is like a six-lane highway to paradise in a country that usually makes headlines for suicide bombers, army offensives and political mayhem.

For more on this article, please click on the following link: Try Pakistan’s M2 motorway: The Gazette

Pakistan has Given Reverse Aid to the US Worth $5.1 Billion Since 2006: Economistan

Much hue and cry has been made out of the Aid US has given to Pakistan over the years. However, all this Aid amounts to pittance when we realize that US has given Pakistan over a period of 60 years only $8.9 billion dollars in economic assistance. This amount is less than even the remittances that Pakistanis would send this year which would amount to a little more than $9 billion dollars. The military aid that the US has given to Pakistan over the past 62 years amounts to $14.7 billion, which includes $5 billion dollars which were given to Pakistan during the Zia years to drive the Soviets back from Afghanistan thus signaling the end of the Cold War. In short, Pakistan won the war for the US for just $5 billion which speaks volumes about the efficiency and determination of Pakistan Armed Forces.

This $5 billion not only covered the cost of arming and training Afghan fighters and the supply of stinger missiles which were instrumental in bringing down Russian air power but also helicopters and other weapons and fuel needed to defeat the Soviets. It was a war in which many Pakistani fighter pilots also laid down their lives in an effort to drive the Russians away from Afghanistan.
The US basically used Pakistan to win its war against Russia and dubbed the Foreign Direct Investment in this Cold War as US Aid. Paying another country to fight its own war should not be called as Aid but wages for fighting the war. Again during so the called “War on Terror”, the US has enrolled its old and forgotten partner to do all the work for it and given Pakistan a little more than $ 9 billion as Coalition Support Funds (or “Military Aid”) to win the war.

A major portion of these Coalition Support Funds however, also includes the cost of fuel that Pakistan supplies to the US forces based in Afghanistan. In effect the US calls the money it gives to Pakistan for the fuel that the US itself uses in Afghanistan as “Military Aid”. There are also reports that Pakistan is supplying the fuel to the US below cost. The Coalition Support Funds and Security Assistance almost entirely are composed of fuel plus the military hardware costs that the US has supplied to Pakistan. Given below is a complete breakdown of the so called “Military Aid” since 911 to Pakistan,

“Military Aid” to Pakistan since 911
Coalition Support Funds	$5.6 b
Security Assistance	$1.8 b
Budget Support	$1.6 b
Development	$0.9 b

The breakdown of the total aid given to Pakistan by the US is as follows,

Total US Aid to Pakistan in past 62 years($ millions)
	Military	Economic
1950-1964	700	2500
1965-1979	26	2550
1979-1990	5000	0
1991-2000	5	429
2001-2009	9000	3500
Total	$14.731 billion	$8.979 billion

Ken Stier writes in an article on aid to Pakistan writes,

“Currently, 70 to 80 cents of every dollar allocated in aid comes back to the U.S. instead of staying in the country it is meant to benefit because of USAID's dependence on contractors.”

The US is using US companies and contractors to channel this so called “Aid” which is used to support US companies presently operating in Pakistan against Chinese firms along with the construction of infrastructure projects like the building and expansion of the $One billion dollar US Embassy in Pakistan. Under the same token if Pakistan spends some money from its exchequer to build part of its embassy in the US, would that also be termed as Pakistan’s aid to the US? or for that matter if Pakistan purchased any military hardware from the US would it be termed as Pakistan’s aid to the US? Under the current US definition of “aid” it would. If so then it would not be wrong to say that Pakistan has given the US aid worth $5.1 billion since 2006 because of the money it spent for the purchase of F-16s from the US. Well the logic behind the Kerry-Lugar bill is the same. This so called aid is not really aid at all instead it is US Foreign Direct Investment in Pakistan to accomplish its nefarious designs such as expansion of US military infrastructure in Pakistan through use of private military contractors and blacklisted companies like Black Water and stationing of US marines and hardware in Pakistan through overt and covert means.

The funny thing is that this so called US Aid is spread over many years comes with harsh conditions. The US just playing with terminologies and fooling the people of Pakistan into thinking that the money US is using in supporting US companies in Pakistan and building its own embassy is aid. It is about time for Pakistan to wake up and aggressively address the issues of the sovereignty in Pakistan and excessive US interference in Pakistan’s internal affairs in the garb of this so called aid. Pakistan would also be well served to reject this so called aid and closely scrutinize all of this “Foreign Direct Investment” from the US which it calls aid to Pakistan. Pakistan should require the US to give a detailed list of each and every item that is purchased through this money in Pakistan and which US companies, contractors and concerns are the beneficiaries of the so called “aid”.

Pakistan's Aid to the US since 2006
Item 1: 36 New F-16 Block 50/52s – $3 billion	$ 3 billion
Item 2: Weapons for the New F-16s – $650 Million	$ 650 million
Item 3: F-16A/B Mid-Life Update Modification Kits – $1.3 billion	$ 1.3 billion
Item 4: F-16A/B Engine Modifications & UP/STAR – $151 Million	$ 151 million

Thanks to the billions of dollars that overseas Pakistanis have sent to Pakistan just this year($ 9 billion), the current account deficit of the current financial year for Pakistan has reduced to a mere $462 million dollars which bodes well for Pakistan. Pakistan’s stock market is also in recovery mode and rose by 2.4% to 9,374 points since Sept 24. It is about time Pakistan reconsidered its partnership with the US and called the US military aid or foreign direct investment in Pakistan “US military expense” and the US economic assistance to Pakistan over the last 62 years of $ 8.9 billion dollars what it is, a “Pittance”.

For more on this article, please click on the following link: Pakistan has Given Reverse Aid to the US Worth $5.1 Billion Since 2006: Economistan

About Those Billions: Newsweek

By Katie Paul

It was with the best of intentions that the U.S. funneled nearly $5.3 billion to Pakistan during the Soviet occupation of Afghanistan in the 1980s. After all, that money helped strike down a Cold War adversary. But there were unintended consequences too—namely, the Taliban. Since 9/11, the U.S. has turned on the spigot again, sending more than $15 billion in assistance to Pakistan. President Barack Obama just approved another $7.5 billion this month, which triples aid while committing to another five years of funding. It also bolsters development efforts, which, according to bill coauthor Sen. John Kerry, will "build a relationship with the people [of Pakistan] to show that what we want is a relationship that meets their interests and needs."

But how effective will this round of money be? Officials at the U.S. Embassy in Islamabad have alleged that Pakistan misspent some 70 percent of the U.S. funds that paid the Pakistani military to run missions in the unwieldy provinces along the Afghan border. U.S. officials accuse Pakistan of running a double game with the money, keeping the Taliban at bay just enough to persuade American benefactors to keep their wallets open, thereby ensuring a lifeline for the country's mangled economy. All of which raises the question: will any amount of money produce results?

A big part of that answer lies in determining how much bang the United States has gotten for its buck so far—whether or not some of the money was siphoned off along the way to fund Army generals' new houses or Taliban elements. Here's an accounting of aid sent over from the United States to Pakistan in recent decades, divided into eras based on the ebbs and flows of assistance. (Figures are in historical dollars.)

1950-1964: As the Cold War heated up, a 1954 security agreement prompted the United States to provide nearly $2.5 billion in economic aid and $700 million in military aid to Pakistan.

1965-1979: With the Indo-Pakistani hostilities in the late 1960s, the United States retreated. Between 1965 and 1971, the U.S. sent only $26 million in military aid, which was cut back even further to $2.9 million through the end of the decade. Meanwhile, economic aid kept flowing, totaling $2.55 billion over the 15 years. Everything came to a halt in 1979, however, when the Carter administration cut off all but food aid after discovering a uranium-enrichment facility in Pakistan. Pakistani leader Gen. Mohammad Zia ul-Haq refused $400 million, split for economic and military aid from President Jimmy Carter, calling it "peanuts." The following year, he was rewarded with a much more attractive offer.

1979-1990: The Soviet invasion of Afghanistan changed everything. Pakistan's ISI security apparatus became the primary means of funneling covert U.S. assistance to anti-Soviet forces in Afghanistan. From 1980 to 1990, the United States ramped up its contributions for both development and military purposes, sending more than $5 billion over the course of the decade.

1991-2000: But even while Pakistan was serving a strategic Cold War purpose, concerns persisted about the country's nuclear ambitions. That gave President George H.W. Bush an easy out from the massive funding commitments in 1990, after the fall of the Soviet Union. Aid over the next decade withered to $429 million in economic assistance and $5.2 million in military assistance, a drop-off Pakistanis still cite bitterly, accusing the United States of leaving them high and dry during the decade.

2001-2009: Since 9/11, the United States has once again bolstered its funding commitments, sending nearly $9 billion in military assistance both to aid and reimburse Pakistan for its operations in the unwieldy border regions with Afghanistan. Another $3.6 billion has funded economic and diplomatic initiatives. But U.S. officials and journalists' accounts have raised concerns that such funds are not being used as intended, and not just because of the typical concerns about corruption. Documented military and civilian government deals with Taliban elements, like a 2004 agreement with Waziri militant leader Nek Mohammed, have confirmed that money intended to fight the Taliban is, in many cases, being used instead to pay them off. (Islamabad is currently battling Taliban fighters in Waziristan.) When the deals fall through, as rapidly shifting alliances in Pakistan's tribal regions often do, that money ultimately ends up funding the insurgency. U.S. officials have expressed particular concerns about the Pakistani government's links to the Haqqani network in North Waziristan, which reportedly has ties to Al Qaeda. At the same time, former president Pervez Musharraf has recently admitted to using U.S. military funding to strengthen defenses against India.

For more on this article, please click on the following link: About Those Billions: Newsweek

Pakistan's July-Sept c/a narrows to $462 mln: Reuters

KARACHI, Oct 21 (Reuters) - Pakistan's current account deficit in the first three months of the 2009/10 fiscal year was a provisional $462 million compared with a deficit of $4.26 billion in the same period last year, the central bank said.

Pakistan recorded a provisional current account surplus of $174 million in September, compared with a revised current account deficit of $19 million the previous month, the bank said.

"The reason for the narrowing of the deficit is a combination of a lower trade deficit and higher remittances," said Khalid Iqbal Siddiqui, director of research at Invest & Finance Securities Ltd.

The trade deficit narrowed to $897 million in September compared with $2.03 billion in September last year. The deficit was $1.04 billion in August. [ID:nISL21660]

Pakistan entered a $7.6 billion emergency International Monetary Fund (IMF) programme last November to avert a balance of payments crisis. The loan was increased to $11.3 billion in July, of which the IMF has disbursed more than $5 billion.

For more on this article, please click on the following link: Pakistan's July-Sept c/a narrows to $462 mln: Reuters

Kerry-Lugar Bill: the army’s objections —Shaukat Qadir: Daily Times

Does no one understand that they can only be strong if they enjoy the support of the people of Pakistan and, if they do, no army can ‘subvert the judicial and political processes’ in Pakistan?

Many analysts in Pakistan find nothing wrong with the Kerry-Lugar (K-L) Bill. Some feel that Pakistan is so desperately in need of assistance that the bill should be accepted at any cost — preconditions or consequences notwithstanding. The President is firmly behind it; the Prime Minister expressed concerned initially, but soon fell in line behind the president. The opposition seems to consider this a golden opportunity to take on the government on its continued submission to the United States at the cost of our sovereignty, and while prepared to tear the government apart on the issue, is carefully refraining from criticising the US.

However, surprisingly, the army, which has been at pains to establish the principle of civilian supremacy, has not only discussed the subject in its annual corps commanders’ conference, but has thereafter issued a public statement to the effect that it “has concerns...the details of which will be conveyed to the government...Pakistan is a sovereign state and has all the rights to analyse and respond to the threat in accordance with its own national interests...in the considered opinion of the forum, it is parliament that would deliberate on the issue to enable the government to develop a national response.”

What does this statement by the army imply?

Obviously, it has reservations about the government’s unconditional acceptance of the bill. It is almost certain that, having conveyed its concerns to General Stanley McChrystal, the US commander in Afghanistan, during his visit, the army must also have conveyed these to the government, but was dissatisfied with its response and, consequently, decided to express these publicly, without specifying the ‘concerns’.

Moreover, it has publicly implied its dissatisfaction with government policy on this issue and, while announcing its acceptance of the supremacy of parliament, it seeks a ‘national consensus’.

From a totally apolitical, democratic army chief, who has ensured so far that the army visibly stays out of politics and has attempted to erase the view that the army will always have political clout in Pakistan, this is a most unusual and unexpected move. In effect, he has reasserted the army’s political role; knowing him, as I do, there must have been very compelling reasons for him to do so.

For more on this article, please click on the following link: Kerry-Lugar Bill: the army’s objections —Shaukat Qadir: Daily Times

Pakistan's Sept trade deficit narrows to $897 mln: Reuters

ISLAMABAD, Oct 12 (Reuters) - Pakistan's trade deficit narrowed to $897 million in September compared with $2.03 billion in September last year, the Federal Bureau of Statistics said.

The deficit was $1.04 billion in August.

Exports stood at $1.52 billion in September, against $1.77 billion in the same month last year. Imports were worth $2.41 billion in September compared with $3.80 billion in the same month last year, the bureau said on its web site.

For more on this article, please click on the following link: Pakistan's Sept trade deficit narrows to $897 mln: Reuters

Australia doubles aid package for Pakistan: Brisbane Times

MATT WADE

ISLAMABAD: Like the US, Australia is about to ramp up its aid to Pakistan, but questions are being raised about how it will ensure the money is well spent.

Australia will double its development assistance to Pakistan to almost $60 million, in addition to the $23 million in emergency assistance recently provided to families displaced by fighting in the north-west.

Most of the money will be directed to basic education and maternal and child health, and a large slice of the cash will fund scholarships for Pakistanis to study in Australia.

When asked if Australia had put any conditions on its aid, the Government agency AusAID said only that the aid program ''is conditional upon annual budget deliberations by the Australian Government''.

Australian aid to Pakistan and neighbouring Afghanistan is set to keep rising. The Government has pledged $650 million for development assistance over the next four years in the two countries, on top of military spending and assistance.

Last month the Prime Minister, Kevin Rudd, said Australia was doubling its military training to the Pakistani Army.

Much of Australia's aid is channelled through organisations such as the World Food Program, partnerships with other donor governments and non-government organisations.

For more on this article, please click on the following link: Australia doubles aid package for Pakistan: Brisbane Times

Strings may force Pakistan to reject US aid: Peninsula

ISLAMABAD: The debate on stringent conditions attached by the Obama Administration to the Kerry-Lugar Bill of aid is giving an option to Pakistan’s economic managers from barring the US to provide its aid in such a way where major chunk on the development projects — in the range of 50 to 60 percent of the $1.5bn per annum — is being spent and sent back to US in the name of consultancy and intermediatory costs.

All kinds of tough conditions have been incorporated in the Kerry-Lugar Bill to ensure strict audit in the name of transparency but it never touches the spending of money by the United States on consultancy, salaries and other intermediately costs to run the USAID funded projects inside Pakistan.

A relevant authority having knowledge on Pakistan’s economy is of the view that the US wanted to spend major chunk of the aid in its own bureaucratic way which in some cases rose to 65 to 70 per cent and certain projects currently being executed by USAID could be cited on this count.

For more on this article, please click on the following link: Strings may force Pakistan to reject US aid: Peninsula

Are Development Dollars in Pakistan Being Well Spent?: Time

By Ken Stier

To development experts who have long called for a shift in strategy in the Muslim world, it would seem like cause for celebration. After years of devoting the bulk of U.S. aid to Pakistan to military assistance, Washington is about to shift that equation. Under legislation approved by the Senate last week and by the House on Wednesday, Pakistan can expect to receive $1.5 billion of non-military (or civilian) aid for each of the next five years, which triples previous levels and will roughly balance out the amount of military aid the U.S. gives to Pakistan.

But getting the money is only half the battle; how well it works — and whether it helps to change strong anti-American sentiment — depends on getting it to the right people and projects on the ground. That job principally falls to the U.S. Agency for International Development (USAID), and many critics say its performance isn't very encouraging. "When you are spending large amounts of money at arm's length, operating in hostile environments, it is very easy for money to get spent corruptly and/or badly, and that is what I have seen in our health programs," says Roger Bates of the American Enterprise Institute, a trenchant USAID critic.

One early effort in education already appears to be a cautionary tale. Improving schooling in the country has been a key focus of U.S. development efforts, both to undermine the need for and appeal of religious schools (or madrasahs) and to advance literacy, which is 43% among adults; two-thirds of Pakistani women cannot read or write. In long, jargon-filled reports, the principal USAID contractor on an $83 million, five-year education-sector reform project, North Carolina–headquartered RTI (also known as Research Triangle Institute), claims to have "positively impacted" more than 400,000 students (out of 70 million school-age kids) through strengthening policy and planning, teacher and school-administrator training, and youth and adult literacy. But when USAID's inspector general sent a team over in August 2007 to check on the progress, it could not validate the claims because the USAID mission in Islamabad "did not require RTI to adhere to reporting requirements critical to monitoring the program performance." The problem was serious enough for RTI, which derived close to 40% of its $710 million in revenues last year from USAID, to be disqualified from follow-on contracts on this particular project.

For more on this article, please click on the following link: Are Development Dollars in Pakistan Being Well Spent?: Time

Pakistan army anger over $1.5bn US aid deal: Times

By Saeed Shah in Islamabad

The row pits the Pakistan's powerful armed forces against the fragile civilian government of the Pakistan Peoples Party, which championed the US assistance deal.

The military is about to begin a Western-backed offensive against the Taliban and al-Qaida in Waziristan, the epicentre of Pakistani extremism and an important refuge for Afghan insurgents.

Conditions that come with the Kerry-Lugar Bill, passed by Congress late last month, have caused a political storm in Pakistan, with the military now joining the parliamentary opposition in hostility to the aid package.

The Bill, which was supposed to symbolise US commitment to Pakistan, requires monitoring and certification of Pakistan's action against terrorism. It also requires the country to work to prevent nuclear proliferation and show that the military is not interfering in the political process.

According to critics of the legislation, the conditions imply that Pakistan sponsors terrorism and nuclear proliferation, and they resent the intrusion into affairs of the military.

The army's top brass met on Wednesday to consider the Kerry-Lugar legislation at corp commanders' conference at the military headquarters at Rawalpindi.

A statement issued after the corp commanders meeting said: "Chief of army staff, General Ashfaq Kayani, reiterated that Pakistan is a sovereign state and has all the rights to analyse and respond to the threat in accordance with her own national interests.

For more on this article, please click on the following link: Pakistan army anger over $1.5bn US aid deal: Times

No oversight of transfers, promotions in army: Kerry: Dawn

By Anwar Iqbal

WASHINGTON: The Kerry-Lugar bill contains ‘absolutely no requirement or desire’ for US oversight on promotions and other internal operations of the Pakistani military, says Senator John Kerry, one of the co-authors of the proposed legislation.

This was the second statement in less than a week from the senator who, as chairman of the Senate Committee on Foreign Relations, played a key role in getting congressional approval for the bill.

Kerry worked hard with his colleagues in the House of Representatives to soften some of the harsh conditions proposed in the House version. The bill passed by the both chambers was a compromise version, which included some restrictions proposed in the House while others were watered down.

The Pakistani response to the bill, however, has hurt Pakistan’s supporters both in the House and the Senate.

Even Congresswoman Sheila Jackson Lee, co-chair of the Pakistani Congressional Caucus, is astonished at the Pakistani reaction.

She believes that the bill was a ‘tribute to the resilience of the Pakistani people’ and extended a promise of long-term relationship between Pakistan and the United States.

The most stunning reaction, however, came from Congressman Gary Ackerman, who co-chairs the Indian caucus.

He said that he had no interest in a partnership with Pakistan which is characterised by ‘suspicion, resentment and political manipulation’.

For more on this article, please click on the following link: No oversight of transfers, promotions in army: Kerry: Dawn

Bolivia buys six Pakistan-made aircraft: Dawn

LA PAZ: The Bolivian government has approved the 57.8-million-dollar purchase of six planes made in Pakistan with Chinese technology for use in anti-drug operations, media here reported Friday.

The deal was finalized Wednesday in consultations with ministers and stipulates that the aircraft will provide a 'contribution to the regional battle against narcotrafficking, ensuring requisite control of national air spaces and areas prone to and affected by this problem,' reported local independent media agency Fides.

The government has not explicitly confirmed the deal but 'the president will announce it on October 10,' according to Defense Minister Walker San Miguel, who was cited by La Razon newspaper.

The K-8, or Karakorum, plane is a light fighter jet jointly developed by China and Pakistan in the early 1990s.

It is used primarily as a training aircraft, but can also be used for airfield defense.

Bolivia is also waiting for five US-made Huey helicopters to be delivered by Brazil. Bolivian President Evo Morales said Thursday that the delivery was being delayed by the United States, which has yet to give the project a green light.

For more on this article, please click on the following link: Bolivia buys six Pakistan-made aircraft: Dawn

Umpires say sorry to Umar: The News

By From Abdul Mohi Shah
JOHANNESBURG: Umpires Simon Taufel (Australia) and Ian Gould (England) said ‘sorry to Umar Akmal’ after their sub-standard and biased umpiring in the Champions Trophy semifinal lead to Pakistan’s unexpected defeat against New Zealand on Saturday.

A source in the International Cricket Council (ICC) confirmed to ‘The News’ that heated arguments were exchanged between Pakistan coach Inrtikhab Alam and the umpires during a hearing conducted after the semifinal at Wanderers. Match referee Javagal Srinath called up Umar and Intikhab for a hearing after the match, over what umpires blamed the batsman for showing dissent over the lbw decision. Taufel ruled Umar lbw at a time when he had played the ball on to his pads. Umar’s fall at a crucial stage robbed Pakistan of a chance to post a big total.

The Pakistan camp defended Umar and was very critical of the umpiring standard during the match. Srinath repeated the slides in front of field umpires and later conducted a separate hearing with the umpires.

According to the sources, the match referee later cleared Umar of showing any dissent and conveyed that the umpire who had made the decision said ‘sorry’ to Umar for the wrong judgment.

That was not the only biased decision by the umpires who faltered on no less than four occasions to help New Zealand make it to the final. Grant Elliott, who went on to play a match-winning knock was let off twice during his stay at the wicket. Shahid Afridi almost got him when he was new at the crease. Rana Naveed had him plumb on a full toss when again he was ruled not out. Even Daniel Vettori got a lucky break off Saeed Ajmal.

The worst of all that the two field umpires were so strict on Pakistan bowlers that they ruled most of short pitched deliveries as wide ball and at the same time extended full luxury to New Zealand bowlers to hurl such deliveries.

For more on this article, please click on the following link: Umpires say sorry to Umar: The News

Pak troika in rigging row: Statesman

KARACHI, 6 OCT: The spectre of match-fixing has returned to haunt Pakistan cricket with the country's parliamentary committee on sports summoning the Pakistan Cricket Board chief, Mr Ijaz Butt, captain Younus Khan and the coach, Mr Intikhab Alam, to seek an explanation for the team's Champions Trophy loss to Australia following allegations of deliberate under-performance.
A senior parliamentarian, who heads the national assembly's standing committee on sports, has accused the team of deliberately losing to Australia in the Champions Trophy in a group match.
Mr Jamshed Khan Dasti said the standing committee would summon Mr Butt, Younus and Mr Alam shortly to explain the team's performance in the Champions Trophy.
“There is evidence that the team lost the match to Australia on purpose. They under-performed. Then, against New Zealand too, there are signs the team didn't want to win,” Mr Dasti alleged.
“We have been told by some respected and senior people and we are trying to collect evidence that there might have been some dirty dealings involving the matches against Australia and New Zealand,” Mr Dasti claimed.
Pakistan's last-ball defeat by Australia put India out of the Champions Trophy while their loss to New Zealand in a semi-final came as a surprise to many. Mr Dasti lashed out at Mr Butt and the team for disappointing the nation.
“I can say we lost to Australia on purpose. And the team's performance against New Zealand was zero. We will get to the bottom of this whole affair and find out the truth,” he said.
Mr Dasti said the standing committee would not allow corruption in cricket.
“We want to see changes in the board and Mr Butt must go because, as it is, he is too old for this job,” he added.

For more on this article, please click on the following link: Pak troika in rigging row: Statesman

PCB to push for video referrals in ODIs: The News

By By Khalid Hussain
KARACHI: Pakistan are likely to push for the umpire referral system to be implemented in One-day Internationals also in a bid to avoid 'appalling decisions' like the ones that blew their team's chances of reaching its first ever Champions Trophy final in South Africa last weekend.

Sources in the Pakistan Cricket Board (PCB) informed 'The News' that the national team management as well as some senior Board officials were left fuming after some bad calls by umpires Simon Taufel and Ian Gould dogged Pakistan in their Champions Trophy semifinal against New Zealand.

According to the sources, the PCB is now planning to push for the implementation of referrals in one-dayers. Video referrals have been permanently implemented in Test cricket from this month.

Pakistan were favourites to beat underdogs New Zealand and reach the final for the first time but were undone by the Kiwis, who recorded a five-wicket triumph to set a date with Trans-Tasmanian rivals Australia. The Aussies hammered New Zealand by six wickets in the final to defend the Champions Trophy crown.

Some experts in Pakistan believe that Pakistan were undone by the umpires. They believe Australia's Taufel and England Gould gave some appalling decisions in the semifinal.

Taufel adjudged promising youngster Umar Akmal lbw though television replays confirmed later that the ball deflected off the batsman's bat before hitting the pads. Umar was batting at 55 and his dismissal ended hopes of a big Pakistani total. Taufel and Gould also turned down a series of confident appeals when the New Zealanders were chasing the target.

Sources told this correspondent that the Pakistan team management wrote a stinging post-match report against the standard of umpiring in the semifinal and described it as 'pathetic'.

For more on this article, please click on the following link: PCB to push for video referrals in ODIs: The News

Pakistan's economy and monetary policy: Reuters

By Faisal Aziz

Reuters - Pakistan's central bank is scheduled to announce its monetary policy for October-November on Tuesday. Here are some facts about the State Bank of Pakistan's monetary policy and the economy.

* In the previous policy review on Aug. 15, the central bank cut its key policy rate by 100 basis points to 13 percent -- the second rate cut since January.

* As part of an understanding with the International Monetary Fund, the central bank also announced in August an interest rate corridor, with the policy rate serving as the "ceiling" and the "floor" set 300 basis points below that.

* The frequency of monetary policy reviews was also increased to six a year from four, which was also part of the IMF deal.

* Pakistan is being propped up with a $7.6 billion IMF loan running for two years that was agreed in November. The IMF increased the loan by $3.2 billion in July.

* GDP growth slid to 2 percent in 2008/09, about the same as population growth. The government expects growth of 3.3 percent in the fiscal year to the end of June 2010. The Asian Development Bank expects growth of 2 percent in 2009, rising to 3 percent in 2010.

* Steady improvements in key economic indicators have encouraged the central bank to cut rates and provide impetus for growth, but concern about the fiscal side and risks of growing price pressures have prevented a big expansionary policy.

For more on this article, please click on the following link: Pakistan's economy and monetary policy: Reuters

Pakistan yet to exploit alternative energy resources: The News

By Mansoor Ahmad
LAHORE: Despite an acute energy shortage and worsening environmental pollution, Pakistan has not exploited the vast potential of environment-friendly alternative energy resources which could add billions of dollars to the economy in the form of carbon credit.

Besides developed countries, many developing economies are adopting alternative methods to produce energy from sources other than fossil fuel. Pakistan, on the other hand, has almost doubled its fossil fuel consumption in order to generate electricity.

Pakistan having a breezy and long coastline has the potential to churn out over 50,000 megawatts of electricity from wind, but at present it hardly produces 100 megawatts.

India and China are among top 10 producers of wind energy. Total installed wind power capacity of China is 12,210MW, of which 6,300MW was added in 2008. In India, total installed wind energy capacity is 9,645MW, of which 1,800MW was added in 2008.

Pakistan’s solar energy potential is also unlimited but no credible progress has been made except for importing some solar-powered geysers from China, which enjoys 66 per cent of global solar water heating capacity. It is followed by Turkey with a 5.8 per cent share. India is also among top 10 countries in solar water heating system with a global share of 1.2 per cent. Pakistan’s share in this area is zero.

Ethanol production in the world increased by 34 per cent in 2008 to 67 billion litres, in which Brazil’s share was 27 billion litres, which make up more than 50 per cent of its non-diesel fuel consumption.

The US was the top ethanol producer with 34 billion litres. India has made it mandatory to add 20 per cent ethanol to motor gasoline. In Pakistan, the first petrol pump started selling ethanol-blended fuel in Islamabad five years ago. However, only a few fuel stations have been added during this period at an average of one outlet per year.

The World Bank’s solar home system projects in Bangladesh and Sri Lanka remained continued, with cumulative installations in 260,000 households by 2008 in Bangladesh and 125,000 households in Sri Lanka. There are not more than 500 residences in Pakistan which have this facility.

The world has made progress in generating energy from waste which Pakistan currently dumps in low-lying areas, polluting the environment. Electricity is being produced through biomass around the world. Though most sugar mills in Pakistan produce electricity from biomass, the government is reluctant to buy this cheap power. The Alternative Energy Development Board has so far signed agreements to buy this electricity with only two out of 73 sugar mills.

For more on this article, please click on the following link: Pakistan yet to exploit alternative energy resources: The News

Pakistan Petroleum to Increase Output From Manzalai, CEO Says: Bloomberg

By Farhan Sharif

Sept. 29 (Bloomberg) -- Pakistan Petroleum Ltd., the nation’s biggest gas producer, plans to increase output from the Manzalai area of the Tal block this year, after missing earlier targets.

“Because of certain delays, production facilities will be in place by November and we hope to increase output to 250 million cubic feet a day,” Chief Executive Officer Khalid Rahman said in an interview in Karachi today.

Pakistan Petroleum needs to compensate for a decline in production from the biggest Sui field in the southwestern province of Baluchistan. Production from Sui, which began in 1955, is declining by as much as five percent a year, according to the company.

The company had planned to increase production from the North West Frontier Province based-Manzalai, which has reserves of 1.3 trillion feet, to 250 million cubic feet a day by June, from 39 million cubic feet, Rehman said in an interview in February.

For more on this article, please click on the following link: Pakistan Petroleum to Increase Output From Manzalai, CEO Says: Bloomberg

Australia, Italy pledge more aid to Pakistan: Dawn

ISLAMABAD: Australia will provide more development aid to Pakistan while Italy has promised a 20-million-euro soft-term loan for training in the marble sector in the NWFP and Balochistan.

The increase in Australian aid and military cooperation was announced by Australian Prime Minister Kevin Rudd and Foreign Minister Stephen Smith after the Friends of Democratic Pakistan summit in New York.

According to a statement issued by the Australian High Commission on Monday, the aid package included doubling of military training slots for Pakistan Army to 140 and establishing defence post-graduate scholarships, making Australia the second largest provider of overseas military training to Pakistan after the United States.

It also included expanding strategic dialogue, establishing an Australia-Pakistan development partnership focusing on health reforms, reconstruction of the Malakand region, promoting democratic governance and economic reforms and providing 100 agricultural scholarships.

Over the past couple of years Australia has increased defence and law-enforcement assistance, doubling development aid to $120 million for two years and contributing $23 million in humanitarian support since last year.

For more on this article, please click on the following link: Australia, Italy pledge more aid to Pakistan: Dawn

Seafood exports rise despite EU ban: The News

By Shahid Shah

KARACHI: Pakistan’s seafood exports increased in August compared to the same period last year after measures taken to improve the condition of harbour and that of boats used in catching fish and shrimp.

According to data, seafood exports rose to 5,327 tons in August against 5,032 tons in August last year. Value of exports also increased to $9.653 million from $9.104 million.

Director General Marine Fisheries Department and Chief Executive Officer Fisheries Development Board, Mohammad Moazzam Khan, told The News several steps had been taken for making improvements at the harbour and modifying boats, which led to increase in seafood exports.

Sources said the exports rose after efforts made by the government which was serious about livestock and dairy development and get the EU ban on seafood exports lifted.

A European Union delegation is likely to visit Pakistan in October to inspect the Karachi Fisheries Harbour.

The EU de-listed all Pakistani seafood exporters in April 2007 and the ban has not yet been lifted. Out of 28 seafood processing units, 11 had been exporting to the EU.

When an EU mission visited the harbour in 2007, it found deficiencies both at the harbour and processing units. Expressing concern, the EU’s Directorate of Food and Veterinary submitted its 25-page findings to Pakistani authorities.

For more on this article, please click on the following link: Seafood exports rise despite EU ban: The News

Saudi Arabia gives $100mln aid to Pakistan: Reuters

By Corinne Scotland

LONDON (AlertNet) - Saudi Arabia has pledged $100 million to Pakistan to help about 2.7 million people who fled their homes during fighting between government forces and the Taliban, the United Nations has said. So far Pakistan has received about $374 million in aid from more than 20 countries, private individuals and organisations. "This contribution from the Kingdom of Saudi Arabia is the single largest contribution received for the vulnerable populations of Pakistan," said Martin Mogwanja, Humanitarian Coordinator for Pakistan.

For more on this article, please click on the following link: Saudi Arabia gives $100mln aid to Pakistan: Reuters

Hinopak to export buses from Pakistan to ME and Africa: Daily Times

KARACHI: Hinopak is Pakistan's first automobile company to export its buses to Middle East and African countries in early 1990's and once again Hinopak would take a gigantic leap in the international market by starting export of buses to Middle East and Africa, a statement released on Friday said. In the statement Mohammad Irfan Shaikh, Director Sales and Marketing, Hinopak stated that it is proud to mention that Hinopak has been chosen as a hub by its principal Hino Motors, Ltd., Japan for manufacturing Hino buses for export to Middle East and Africa. In this regard the first meeting with Hino distributors from Middleast and Africa was held in November last year, where Hino distributors showed their keen interest in Hino buses because of their quality which is not less than any international bus.

Irfan also congratulated the CDGK to start the pilot project by inducting CNG buses in the Karachi transport system. He further added that it is one such step which would augurs well for the citizens of Karachi and would provide impetus for the future induction of both new CNG and Diesel buses in Karachi and also in other cities of Pakistan especially in Punjab. He mentioned that, in Punjab more than 1500 urban buses are successfully operating on the roads and facilitating the commuters. He also urged the government of Punjab to start the operation of locally produced CNG buses which would definitely modernize the existing urban transport system.

For more on this article, please click on the following link: Hinopak to export buses from Pakistan to ME and Africa: Daily Times

Pakistan's forex reserves rise to $14.48 bln: Forbes

KARACHI, Sept 24 (Reuters) - Pakistan's foreign exchange reserves rose to $14.48 billion in the week that ended on Sept. 19 compared with $14.36 billion the previous week, the central bank said on Thursday.
Reserves held by the State Bank of Pakistan rose to $10.94 billion from $10.84 billion a week earlier, while those held by commercial banks also edged up to $3.54 billion from $3.52 billion a week earlier, the central bank said in a statement.
For more on this article, please click on the following link: Pakistan's forex reserves rise to $14.48 bln: Forbes

Pakistan Chief of Army Staff in list of "50 People Who Matter Today": Sify

Pakistan Chief of Army Staff (COAS) Ashfaq Kayani has been ranked higher than Pope Benedict XVI and UK Prime Minister Gordon Brown in a list published by a British political magazine, which highlights 50 individuals who have been instrumental in having an impact in today's scenario around the world.
New Statesman's list of "50 People Who Matter Today", has the Obamas as the most influential people in the world, while Kayani has been ranked at 24th position, way ahead of the Pope or Brown, The Daily Times reports.

For more on this article, please click on the following link: Pakistan Chief of Army Staff in list of "50 People Who Matter Today": Sify

Blackwater: Widening the rift: Dawn Blog

Conspiracy theories have always had high currency in our part of the world and ritual cynicism towards America is quite usual. Recent reports claiming the presence of CIA’s contractual army – Blackwater – in Pakistan have bolstered concerns within the Pakistani public about US involvement in this country’s affairs. It’s high time, though, that the government came clean with the public about the extent of US involvement in this country’s security affairs.
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Blackwater is a private mercenary company which is known to have worked with the CIA on various occasions, including the Iraq war. Rumours claiming that Pakistan is its new home have triggered quite a lot of commotion. It all begin with reports claiming that Blackwater (now known as Xe) had been operating in Pakistan as a vital tool for America’s counterterrorism program.

Jeremy Scahill, the author of Blackwater: The Rise of the World’s Most Powerful Mercenary Army, recently wrote an elaborate piece on the possible involvement of Blackwater inside Pakistan. Scahill talks about the notorious history of the organisation and goes on to suggest that it has been playing a vital role in Afghanistan and Pakistan since 2002, acting as a key player in arming drone aircrafts.

Scahill also quotes former employees who claim that Blackwater’s owner, Prince Erik, ‘views himself as a Christian crusader tasked with eliminating Muslims and the Islamic faith from the globe.’ The allegations quite literally portray Blackwater as a Christian Al Qaeda. Not surprisingly, the presence of such a force in Pakistan is disturbingly provocative.

The speculations relate back to last September, when the Marriott Hotel blast occurred in Islamabad. Various reports suggested that an undercover operation by US marines was being planned when the attack happened. However, such allegations have been repeatedly denied.

For more on this article, please click on the following link: Blackwater: Widening the rift: Dawn Blog

Pakistan government keen on medical tourism: IMTJ

A sudden government interest in health tourism to prop up a national tourism industry with problems is an increasingly familiar refrain. The latest in this growing list of countries with little existing inbound medical tourism is Pakistan.

More than 2,000 people have been killed in Taliban-linked attacks across Pakistan in the last two years, scaring away all but the most intrepid foreign tourists. Pakistan earned $200 million from 800,000 visitors in 2007. Fewer than 400,000 visitors came in 2008, and the numbers are expected to be even lower this year.” Terrorism has really affected us a great deal,” admits Tourism Minister Ataur Rehman.The Pakistan government hopes that medical tourists can help revive the country’s troubled tourism industry in a big way, which is why the main focus of their new tourism policy will be on health tourism.

Rehman says that his ministry is in consultation with the provincial tourism departments, travel agencies, airlines, businessmen, and other stakeholders on the new policy of providing foreigners with quality healthcare at a price far less than what they pay in Western countries, “The introduction of health tourism will not only bring in foreign tourists but will also help develop health infrastructure on modern lines, create job opportunities, generate greater revenues and most importantly, cast off the country’s negative image of being an unsafe destination.”

He argues that the country has internationally acclaimed doctors and world-class medical facilities, with Pakistani hospitals and doctors being at par with their Western counterparts in specialising in the fields of heart surgery, eye care, cancer therapy, dentistry and diagnostics, at a fifteenth of the cost overseas.

Rehman says a new plan to revive the tourism industry is essential as there has not been a fully new one for two decades. The aim is engage the private sector in developing the tourism infrastructure to attract locals and foreigners.

The minister criticises international newspapers and TV channels, for inflicting considerable damage on the country’s tourism industry and substantially reducing numbers, by generalising a bad law and order situation

For more on this article, please click on the following link: Pakistan government keen on medical tourism: IMTJ

US sold $4.5 bn worth arms to Pakistan in three years: Report: Hindustan Times

The United States sold arms worth $4.5 billion to Pakistan between 2005 and 2008, says a Congressional report even as Washington has expressed concern about reported diversion of military equipment away from the war on terrorism to fight India.

An updated Congressional report released last month says Washington signed arms transfer agreements with Pakistan in excess of $3.5 billion in the year 2006 alone, "ranking Pakistan first among all arms clients of the United States during that calendar year".

Last week, former Pakistan president Pervez Musharraf confessed that bulk of US military aid to Pakistan had been diverted for fighting India. However, he later backed out as Washington expressed concern.

For more on this article, please click on the following link: US sold $4.5 bn worth arms to Pakistan in three years: Report: Hindustan Times

Pakistan to receive $780 million loan for energy efficiency: Energy Efficiency News

The Asian Development Bank (ADB) is to lend Pakistan $780 million to support energy efficiency projects aimed at stabilising power supplies and reducing reliance on fossil fuels.

The country currently suffers from regular and lengthy power cuts because of the gap between its energy supply and demand.

The multitranche financing facility will release funds in tranches to support the Pakistani government’s 10-year energy efficiency investment plan.

The funds will initially support short to medium term energy efficiency projects such as the replacement of incandescent light bulbs with compact fluorescent lamps.

For more on this article, please click on the following link: Pakistan to receive $780 million loan for energy efficiency: Energy Efficiency News

Italy, Pakistan sign debt-swap agreement: Daily Times

ISLAMABAD: Italy on Friday agreed to convert Pakistan’s $100 million debt into aid for development projects in the social sector as part of the commitments made at the donor’s conference in Tokyo earlier this year. A debt-swap agreement was signed at the Economic Affairs Division, under which the development projects would be sponsored by the federal, provincial and local governments, non-governmental organisations or channelled through the relevant UN organisation.

For more on this article, please click on the following link: Italy, Pakistan sign debt-swap agreement: Daily Times

Afghanistan should not be allowed to destabilise Pakistan: Kerry: PakTribune

WASHINGTON: Describing Pakistan’s stability as a vital US national interest, top American Senator John Kerry has advocated that Afghanistan should not be allowed to destabilise its neighbour and the region.

Chairing a Senate Foreign Relations Committee hearing on strategy for Afghanistan, Kerry called for setting realistic goals in the insurgency-hit country. “The purpose of our mission should be to prevent Afghanistan from becoming a safe haven for al-Qaeda and a destabilising force in the region, especially Pakistan,” the Democratic lawmaker said in his opening statement at the hearing, held to explore various scenarios for the US involvement in Afghanistan.

“We also need to consider our mission in Afghanistan in the context of a highly volatile and strategically vital region, where permeable borders are straddled by clans, ethnic groups, and militants, where what happens in one country can have profound implications for the security of its neighbors.

“The continued stability of Pakistan, a nuclear armed nation in an existential struggle with extremists and insurgents, remains a vital national interest,” he added. Kerry said he did not believe that the United States was in Afghanistan to create a carbon-copy of American-style democracy, or impose a strong central government in a nation that had never had one.

For more on this article, please click on the following link: Afghanistan should not be allowed to destabilise Pakistan: Kerry: PakTribune

Pakistan's July-August c/a deficit narrows to $527 mln: Forbes

KARACHI, Sept 17 (Reuters) - Pakistan's current account deficit in the first two months of the 2009/10 fiscal year was a provisional $527 million, compared with a deficit of $2.68 billion in the same period last year, the central bank said.

Pakistan recorded a current account surplus of $82 million in August, compared with a current account deficit of $606 million in July, the bank said.

A lower trade deficit and record remittances accounted for the swing, according to Asif Qureshi, director at Invisor Securities Ltd.

Pakistan's trade deficit narrowed to $1.04 billion in August, compared with $1.89 billion in August last year. The deficit was $1.15 billion in July.

Pakistan entered a $7.6 billion emergency International Monetary Fund (IMF) programme last November to avert a balance of payments crisis. The loan was increased to $11.3 billion in July, of which the IMF has so far disbursed over $5 billion.

For more on this article, please click on the following link: Pakistan's July-August c/a deficit narrows to $527 mln: Forbes

China, Pakistan To Jointly Build $222 Million Satellite: NASDAQ

ISLAMABAD -(Dow Jones)- Pakistan said Friday its space agency will build a communication satellite jointly with a Chinese state-run company.

"The project costs $222 million," a statement from Pakistan's economic affairs division said.

China has agreed to fund this project with a 20-year loan, it said.

Pakistan Space and Upper Atmospheric Research Commission and China Great Wall Industry Corp. will jointly develop the PAKSAT-IR satellite in about three years.

For more on this article, please click on the following link: China, Pakistan To Jointly Build $222 Million Satellite: NASDAQ

Pakistan got 970-mn dollars and not 3-bn dollars from US: Sify

The United States has provided 970 million dollars in aid to Pakistan since the PPP-led Government came to power and not three billion dollars as claimed by US Ambassador Anne Patterson, a Pakistani Finance Ministry official has said.

The statement of US Ambassador to Pakistan, Anne Patterson, about giving 3 billion dollars assistance to the Zardari Government even surprised the top economic managers of the country. They were completely clueless about the figure of 3 billion dollars floated by the US.

"Out of the total 970 million dollars funding, a major chunk of 550 to 600 million dollars was in shape of the Coalition Support Fund (CSF) as it was the money which was spent by Pakistan on military's movement and it took several months for clearance from the US authorities," The News quoted a a senior official of the Finance Ministry, as saying.

The US has provided less than one billion dollars to Pakistan since the PPP-led government came into power, he said.

The US provided 497 million dollars in shape of CSF in May 2009. Earlier, the US provided around 100 million dollars on the same head a couple of months back - at the end of last financial year.

For more on this article, please click on the following link: Pakistan got 970-mn dollars and not 3-bn dollars from US: Sify

Visa denial to US citizens earns Pak bad name: Haqqani: The News

WASHINGTON: Pakistani envoy to United States Husain Haqqani has written a letter to Secretary Foreign Office and Director General ISI Ahmed Shuja Pasha on Saturday, Geo news reported.

According to sources, the letter pointed out events occurred with US citizens over denial of Pakistani visas to them on July 28.

The letter also said, denying Pakistani visas to US nationals besides harassing them, has adversely distorted Pakistan image and heavy costs will have to be paid in exchange of such events.

Meanwhile, the spokesman Pakistan Foreign Office (FO) has declined statement over the letter, saying that it is against country’s interest to discuss matters relating to national secrets.

Pakistan has blacklisted US media personalities and NGOs perceived to be critical of its national security objectives and policies.

The list includes Newsweek magazine’s photojournalist Kate Brooks and news channel CNN’s Pakistan correspondent Riza Sayah.

Punitive measures against them include denying a visa or cancelling an approved one, along with rigorous surveillance of those already in Pakistan.

For more on this article, please click on the following link: Visa denial to US citizens earns Pak bad name: Haqqani: The News

Legal spanner thrown in US plan: Nation

LAHORE - A petition has been submitted to the Supreme Court seeking to restrain the Americans from getting further 18 acres of land over and above the 38 acres already acquired by them, for expansion of the US Embassy in Islamabad.
The petitioners, Watan Party and Barrister Zafarullah Khan, have also urged the Apex Court to prevent the Americans from hiring as many as 250 offices in Islamabad and that no diplomatic mission may be allowed to get on lease or through sale land more than the requirement of the diplomatic mission. It has also been sought that the Pakistan government be asked to fulfil their responsibility towards providing security to the diplomatic missions as per international law. The petitioners have further urged the court for directing the government that surveillance of all communications and monitoring of all kind of telecommunication services may be stopped forthwith.
The petitioners argue that contrary to the trend, set by the age of communication, of cutting down the staff, America is extraordinarily enhancing the presence of its staff in Islamabad, which may also include 1000 marines with latest equipment, which may be a means to ‘bring us down on our knees’ and to ‘capture our nuclear facility’ so that Pakistan could get the same treatment America meted out to South Korea, Taiwan, Iraq, and Afghanistan.

For more on this article, please click on the following link: Legal spanner thrown in US plan: Nation

Expansion of US embassy challenged in SC : Dawn

LAHORE: The expansion of the US embassy in Islamabad has been challenged in Lahore Registry of the Supreme Court by Barrister Zaffar Ullah.

According to a private TV channel, the petition maintained that the United States acquiring 56 acres of land and converting its embassy into an army cantonment, is against the sovereignty of Pakistan.

The petition stated that the expansion of the embassy over 56 acres of land equals to the area of an airport. It was also maintained that Pakistan's nuclear assets would also be in danger in the presence of a US military base.

For more on this article, please click on the following link: Expansion of US embassy challenged in SC : Dawn

OGDC hits oil in Karak: The News

KARACHI: The Oil & Gas Development Company (OGDC), operator of Nashpa E.L., together with its joint venture partners i.e. PPL and GHPL, has discovered hydrocarbon reserves in the Lockhart Zone of recent discovery made in Nashpa 01 well located in District Karak of NWFP province.

According to a press statement, Nashpa 01 well was spuded on June 29, 2008 and drilled down to the depth of 4,384 M. Initially, one of the potential zones, middle Lockhart was tested on August 31, 2009 which flowed 3,000 bbls/day of crude oil and 9.7 mmscfd of gas.

For more on this article, please click on the following link: OGDC hits oil in Karak: The News

More oil, gas reserves found in Attock: The News

KARACHI: The efforts to discover the oil and gas reserves in the country are afoot, as more reserves of oil and gas have been found in District Attock, Geo News reported Tuesday.

According to a notice issued to Karachi Stock Exchange (KSE) by Oil and Gas Development Company Limited, the discovery was made in Well-11 in Attock.

According to preliminary research, 95 barrel of oil and 3.6 million cubic foot of gas would be acquired from this well.

For more on this article, please click on the following link: More oil, gas reserves found in Attock: The News

Trade deficit narrows by 39pc: The News

By Aftab Maken

ISLAMABAD: The negative growth in exports and imports in the first two months of new financial year has also registered a negative trade deficit of nearly 40 per cent when compared with the corresponding period of last year.

The trade deficit for the first two months of current fiscal stood at $2.19 billion registering a decrease of around 39 per cent than $3.56 billion recorded in the same period of last fiscal, the Federal Bureau of Statistics (FBS) said on Friday.

The shortage of major commodities and the imports of the commodities at relatively higher prices will definitely push the trade deficit and it would also be again in double digit, fears a trade analyst.

The government last week announced importing of nearly one million tons raw sugar for building its strategic reserves because of anticipated shortfall of nearly 1.5 million tons sweetener for the coming season, which starts from October. The Ministry of Food & Agriculture has also recommended import of 0.4 million tons urea fertilizer for Rabi crops. The current pace of the exports clearly reveals that the $18.84 billion export target for 2009-10 is unlikely to be achieved and the country’s exports will hover around the last year’s figure of $17.78 billion, the analyst added.

During July-August 2009, Pakistan’s exports registered the double digit negative growth totaling $2.96 billion while the imports of $5.16 billion against $3.44 billion and $7.00 billion, have been recorded respectively during the same period last year, said the data, adding that imports were 26.32 per cent less than the same period of last fiscal, while exports also registered a negative growth of 13.78 per cent.

For more on this article, please click on the following link: Trade deficit narrows by 39pc: The News

WB okays $300m for Pakistan’s projects: The News

KARACHI: The World Bank has approved two projects worth $300 million to help Pakistan strengthen its social safety nets and improve higher education.

While fighting a Taliban insurgency in the northwest, Pakistan is struggling with a weak economy and over a third of its people live in poverty.

The World Bank said $200 million was being allocated for the Pakistan Social Safety Nets Development Policy Credit to establish an effective framework.

“Pakistani households are highly vulnerable to income shocks, and existing social assistance programmes cover only a very small fraction of the poor,” Yusupha Crookes, the country director for Pakistan, said in a statement received on Friday.

For more on this article, please click on the following link: WB okays $300m for Pakistan’s projects: The News

Pakistan demands release of $1.6bn from US: Dawn

ISLAMABAD: Pakistan on Thursday once again demanded from the US to immediately release $1.6 billion under the Coalition Support Fund.

According to sources in the Ministry of Finance, US has to pay Pakistan money under the Coalition Support Fund and the payment of money by the US is quite sluggish but Pakistan cannot wait very long because the country’s economy is in a sensitive state.

Pakistan needs the funds to cater to its deteriorating economy and to fulfil the requirements of its defence and armed forces.

Sources say expenditures worth $100 million are being carried out every month in the war on terror and the funds provided by the US are quite slim as compared to the expenditures.

For more on this article, please click on the following link: Pakistan demands release of $1.6bn from US: Dawn

Eight Years Later, War's End Not in Sight: CBS

It was supposed to be swift and decisive response to the Sept. 11 terrorist attacks: Operation Enduring Freedom, the U.S. led invasion of Afghanistan, launched less than a month after the attacks and designed to destroy al Qaeda and the Taliban government that harbored the group.

Eight years later the conflict continues -- and the endgame seems elusive. Insurgent Taliban forces have gained ground; coalition troop casualties have steadily risen; and Americans have grown increasingly weary of the war, which some critics have begun to describe as a potential quagmire.

Criticism of U.S. policy on Afghanistan from the president's own party, meanwhile, has grown louder. Wisconsin Democratic Sen. Russ Feingold is calling for a "flexible timetable" for bringing the troops home, arguing that "we've become embroiled in a nation-building experiment that may distract us from combating al Qaeda and its affiliates." House Appropriations Committee Chairman David Obey of Wisconsin, another Democrat, said Congress could cut war funding in the spring if things haven't gotten significantly better.

And the criticism is not confined to the left. Last week, conservative columnist George Will offered a much-discussed column calling for the U.S. to pull troops out of Afghanistan and instead "do only what can be done from offshore, using intelligence, drones, cruise missiles, airstrikes and small, potent Special Forces units."

For more on this article, please click on the following link: Eight Years Later, War's End Not in Sight: CBS

Dr. Wilmer Leon: Afghanistan a New Vietnam?: HNN

Under the pretext of responding to the September 11, 2001, attacks in America, the United States and Great Britain invaded Afghanistan on October 7, 2001, under the banner of Operation Enduring Freedom. President Bush 43 told the American people that the US strikes were "... designed to disrupt the use of Afghanistan as a terrorist base of operations, and to attack the military capability of the Taliban regime ... As we strike military targets, we will also drop food, medicine and supplies to the starving and suffering men and women and children of Afghanistan ..."

During the 2008 presidential campaign, candidate Obama promised to immediately withdraw troops from Iraq in order to bolster the forces in Afghanistan in order to defeat the Taliban and al-Qaeda. "It's time to refocus our attention on the war we have to win in Afghanistan." This approach was taken in order to placate the anti-Iraq war contingent of the American electorate on the left while not leaving candidate Obama vulnerable to the "soft on defense" hawkish argument from the right. As a campaign tactic, this proved to be successful. As American foreign policy, this is proving to be one of the greatest miscalculations President Obama has made. Could Afghanistan become President Obama's Vietnam?

President Obama has taken ownership of this war and now calls this a "war of necessity" that is fundamental to the "defense of our people." In order to convince the American people that more troops are necessary to achieve the desired result, the president says as President Bush 43 said, the mission is to "disrupt, dismantle and defeat al-Qaeda and its extremist allies".

For more on this article, please click on the following link: Dr. Wilmer Leon: Afghanistan a New Vietnam?: HNN

Car sales rose 11pc in August: The News

KARACHI: After a steep decline in FY09, domestic passenger car sales are once again showing signs of improvement on monthly basis. New fiscal year has started off on an optimistic note for the auto industry.

Car sales continued to progress on path of recovery as August sales depicted a growth of 11 per cent, month on month basis, to 8,441 units as against 7,614 units in the previous month, a sixth consecutive month on monthly rise, as revealed by Pakistan Automotive Manufacturing Association (PAMA).

Some of the reasons for improved car sales are decline in automobile prices, higher taxes on imported cars and economic stability. The situation appears even more stable on year on year basis with strong improvements of 31 per cent. However, because of a lower count in the similar month last year, the numbers portray massive growth in the month.

Importantly, during the first three months of FY09, car sales numbers were unusually low due to phase-out of Corolla’s previous model. In 1Q of FY09 (JulñSept), corolla’s sales averaged at 640 units as against 2,760 units in rest of the period of FY09.

Economic slowdown, limited avenues for auto leasing and record domestic inflation had hit the consumers hard, mostly affecting the lower-end cars. However, with the recovery in domestic economy along with the price cuts by PSMC (dominant player in 850cc segment with 85 per cent market share) the demand for low-end cars has improved. In addition to this, high-end segment cars are becoming less affordable.

For more on this article, please click on the following link: Car sales rose 11pc in August: The News

Pakistan to address Chinese concerns over US Marines: Khabrein

ISLAMABAD, Sept 5 (KUNA) -- Pakistan Saturday said that it will address the Chinese concerns over the expansion of the US embassy in the heavily-guarded capital. Talking to reporters in eastern Multan city, Foreign Minister Shah Mehmoud Qureshi said that China is an old and trusted friend. "There is nothing to worry about and we will take steps to address concerns if any," he said while responding to a query about Chinese concerns.

The American embassy had invited Islamabad press and shared the whole plan with them, he said while rejecting that a large number of US Marines will be deployed in Pakistan.

For more on this article, please click on the following link: Pakistan to address Chinese concerns over US Marines: Khabrein

Dr. Pervez Hoodbhoy Responds to Nature Article on Pakistan’s Higher Education Reform: ATP

Adil Najam

Dr. Pervez Hoodbhoy, one of Pakistan’s preminent intellectuals and someone who I and ATP holds in the highest esteem (here and here), has written a letter to the editors of Nature in response to the recent article (of which I was a co-author) on Pakistan’s higher education reform experiment.

I just wrote to Pervez requesting that in the interest of greater discussion on this important issue, he allow us to reproduce the letter here at ATP. He has graciously agreed.

We reproduce his letter, in full, here:

“Pakistan’s Reform Experiment” (Nature, V461, page 38, 3 September 2009) gives the impression of providing a factual balance sheet of Pakistan’s higher education under General Pervez Musharraf’s former government. Unfortunately, several critical omissions indicate a partisan bias.

Mention of the billions wasted on mindless prestige mega-projects is noticeably absent. Example: nine new universities were hastily conceived and partially constructed, but abandoned and finally scrapped after it became obvious that it was impossible to provide them with the most crucial ingredient - trained faculty. Similarly, fantastically expensive scientific equipment, imported with funds from the Higher Education Commission, remain hopelessly under-utilized many years later. They litter the country’s length and breadth. For instance, my university has been forced to house a “souped-up” Van de Graaf accelerator facility, purchased in 2005 with HEC funds. A research purpose is still being sought in 2009.

For more on this article, please click on the following link: Dr. Pervez Hoodbhoy Responds to Nature Article on Pakistan’s Higher Education Reform: ATP

'Foreigners-only' eatery draws flak in Pakistan: TOI

LONDON: A French restaurant in Pakistan’s capital Islamabad has drawn flak after it put up a notice saying "foreigners only".

Islamabad police said it has also received complaints regarding such notice being put at the front window of the Cordon Rouge restaurant, which is situated close to embassies and government buildings in the city’s heavily guarded diplomatic enclave.

However, the owner of the food joint, Jean-Luc Hue brushed aside the accusations, saying the notice has been “misunderstood”. Hue admitted that he fumbled with the selection of words for the notice. “This is just a misunderstanding. I only put the sign up for the month of Ramzan,” the BBC quoted Hue, as saying.

For more on this article, please click on the following link: 'Foreigners-only' eatery draws flak in Pakistan: TOI

Pakistan to lend 700,000 acres farmland to Arab states: Dawn

ISLAMABAD: The ministry of investment has decided to lend 700,000 acres of farmland to Arab countries on the basis of long-term investment.

An official of the ministry said, the decision has been taken keeping in view the interest of Arab countries in agricultural land of Sindh and Punjab. The government is also working to remove reservations of persons associated with the agriculture sector, a private news channel reported.

Investment Minister Waqar Ahmed Khan said if the government successfully achieves its objectives; it will pave the way to get the latest technology for the agriculture sector in the country.

‘Over the past few weeks, the Saudi government has been in talks with us to lease 700,000 acres of farmland; and we are currently in the process of locating which land we could give them,’ Tauqir Ahmad Faiq, regional secretary, Ministry of agriculture, said in an interview.

For more on this article, please click on the following link: Pakistan to lend 700,000 acres farmland to Arab states: Dawn

Pakistan Government To Launch Two Mutual Funds In Next Few Weeks: NASDAQ

KARACHI -(Dow Jones)- Pakistan's state-run mutual fund, National Investment Trust, will launch two funds in a few weeks, its chairman and managing director said Monday.

"The government has allowed to launch the new funds," Tariq Iqbal Khan told Dow Jones Newswires.

The NIT-Government Fund, which will invest in government securities such as treasury bills and bonds, will be launched by September end and the Income Fund is expected to be launched by next month, he said.

For more on this article, please click on the following link: Pakistan Government To Launch Two Mutual Funds In Next Few Weeks: NASDAQ

World Bank to consider US$250Mln loan for Pakistan: Pakistan Times

ISLAMABAD: A session of the World Bank’s Board of Directors will consider the proposal of granting US$ 250 million loan to Pakistan on September 10 in Washington.

Sources in Economic Affairs Division say that the session would also consider giving US$150 million for the Benazir Income Support Program.

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Role of remittances: The News

By Dr Ashfaque H Khan
Remittances constitute one of the largest and more resilient sources of foreign exchange earnings for developing countries including Pakistan. The flow of workers' remittances to developing countries has grown steadily over the past three decades – rising from $18 billion in 1980 to $328 billion in 2008; approximately an 18-fold increase. Within developing countries, South Asia accounted for 23 per cent, that is, $74 billion. India alone accounted for 70 per cent ($52 billion) remittances in South Asia followed by Bangladesh (12 per cent or $9 billion) and Pakistan (9.5 per cent or $7 billion). These three countries together accounted for almost 92 per cent or a remittance inflow of $68 billion in South Asia in 2008.

Workers' remittances in Pakistan continued to exhibit a rising trend over the last one decade (1999/00-2008/09). These have grown eight fold in 10 years – rising from $984 million to $7.8 billion. United States, UAE, other GCC countries and Saudi Arabia accounted for over 79 per cent of total inflow of remittances.

The surge in remittances flows in Pakistan during 2008-09 has surprised many analysts. In the midst of the global economic meltdown and rise in unemployment, remittances grew by over 21 per cent in 2008-09. This surge in inflow was not only limited to Pakistan but South Asia as a whole registered an increase of 33 per cent. Why did remittances surge in South Asia in general and Pakistan in particular during the outgoing fiscal year? There are several views in this respect. Firstly, migrants may have lost their jobs in host countries and have returned with their savings; hence, the jump in remittances flows. Secondly, Saudi Arabia, UAE and other GCC countries are major destinations for the Pakistani migrants. It appears that these countries have not sent Pakistani workers back home in large numbers. Thirdly, falling property prices, rising interest rate differentials and a sharp depreciation of exchange rate may have played important roles in attracting large remittance inflows for investment purposes as opposed to consumption purposes.

Why are remittances important for developing countries like Pakistan? The developmental impact of remittances is widespread as it affects various sectors of the economy and helps improve living standards; these are non-debt creating inflows and help in developing the financial sector in recipient countries.

In particular, remittances improve households' welfare by lifting recipient families out of poverty and insulating them against income shocks. These flows serve as a means to increase recipient families' income, ease credit and liquidity constraints and allow them to improve their consumption and living standards. The increase in recipient families' consumption leads to an increase in the demand for goods and services which encourages entrepreneurs to invest more. This leads to an expansion of markets, increase in output, higher economic growth, and rise in employment opportunities. Higher consumption expenditure and greater demand for goods and services may increase tax revenue through consumption-based taxes. These additional resources can be used by the government by allocating more resources for strengthening the country's physical infrastructure and for alleviating poverty. Remittances also improve a country's debt sustainability level. Empirical evidence suggests that the recipient country of remittances can sustain higher levels of future debt. Empirical evidence also suggests that remittances have a positive and significant impact on investment and economic growth.

For more on this article, please click on the following link: Role of remittances: The News

India quits IPI pipeline deal, says Pak envoy: Daily Times

LAHORE: India has definitely quit the IPI (Iran-Pakistan-India) gas pipeline deal, Pakistan’s Ambassador to Iran Muhammad Bux Abbasi said on Monday. A private TV channel quoted him as saying that India had exited the tri-nation gas pipeline deal, also known as the ‘Peace Pipeline’, it had earlier planned with Iran and Pakistan. However, Iranian officials said India had not yet officially declared its exit from the IPI gas pipeline project.

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How Afghanistan Can Avoid Becoming Another Vietnam: Huffington Post

Though the dreaded Taliban leader, Baitullah Massoud, may have been killed, the Taliban is still very much in control.

The various groups collectively known as the Taliban are deeply entrenched in much of the Eastern Afghanistan and Western Pakistan even after the recent killing of Taliban leaders, the offensive by the US military in Afghanistan's Helmand Province, the additional deployment of 21,000 troops to the region, the replacement of General David McKiernan by General Stanley McChrystal, the naming of Pakistan as well as Afghanistan as a war zone, the persistence of unmanned predatory drone attacks in Pakistan's sovereign territory, and an economic and social development package of $2.8 billion for Afghanistan and $1.5 billion per year for Pakistan.

Despite all this, the persistent claims by the Pentagon that they see light at the end of the tunnel remind us that Afghanistan is beginning to look a lot like Vietnam. Once again the name of a country has become a symbol, not of a proud people and an ancient tradition, but of a conflict the US should never have entered and a war that it does not know how to end.

Like the North Vietnamese, many Afghan activists --and an increasing number of Pakistanis -- are motivated to fight against US presence because of their love of freedom. They see the US military, like the Soviet forces before them, as a foreign occupying power. The Taliban, as draconian as they may be, are seen as enemies of the enemy: us. It is the US military presence, paradoxically, that is uniting the Taliban and marshalling wide public support behind it.

For more on this article, please click on the following link: How Afghanistan Can Avoid Becoming Another Vietnam: Huffington Post