Pak share in world cotton output falls: The News

By By Mansoor Ahmad
LAHORE: Pakistan’s share in world cotton production has dropped by 10 per cent since 2004, making it an importer while India has boosted its cotton output by 25 per cent to become a leading exporter of the commodity.

Data received from the United States Development Agency reveal Pakistan continued to boost its share in world cotton production for three decades, increasing it from 4.8 per cent during 1970-74 to 8.8 per cent in 2000-03. Its growth in cotton crop was much higher than that of India during these three decades as Delhi, which produced 8.5 per cent of global cotton, could enhance its share to only 11.6 per cent.

Agricultural planners in Pakistan then lost the way as after achieving a share of 9.1 per cent in global cotton production the decline started which they could not stop. That took the country’s cotton production share to 8.2 per cent.

Indian agricultural planners, in contrast, gave their country a giant leap and the country now produces 19.6 per cent of the total cotton produced globally. Availability of local cotton has provided the Indian textile industry with a huge price advantage as their share in world exports has increased from 0.6 per cent during 1970-74 to 12.2 per cent now.

Pakistan’s share in global cotton exports has fallen from 2.9 per cent during 1970-74 to merely 0.6 per cent. Even this cotton is exported to keep its rates high in Pakistan.

Pakistan, in fact, remained self-sufficient in cotton till the period from 1985 to 1989 and then cotton imports started increasing and currently 5.8 per cent of world cotton exports are destined for Pakistan.

Cotton imports in India are only 1 per cent of total global cotton trade. India consumed 11 per cent of the cotton produced in the world during 1990-94 against 8 per cent by Pakistan. Currently, cotton use in India accounts for 15 per cent of total global consumption against 10 per cent in Pakistan.

For more on this article, please click on the following link: Pak share in world cotton output falls: The News

US senator under fire over drone facility in Pakistan remarks: Daily Times

LAHORE: Republican members of the House Intelligence Committee have asked the Obama administration to conduct an inquiry into comments by Senator Dianne Feinstein that appeared to confirm the existence of a secret US facility inside Pakistan used to carry out drone attacks in the Tribal Areas. Amid growing concern inside Pakistan over the strikes, Newsweek reported that the unusual request by the Republicans sought a ‘damage assessment’ into the remarks by Feinstein, the new chairwoman of the Senate Intelligence Committee.

For more on this article, please click on the following link: US senator under fire over drone facility in Pakistan remarks: Daily Times

Pakistan's PTCL net profit 5.3 bln rupees: Reuters

KARACHI, Feb 26 (Reuters) - Pakistan Telecommunication Co. Ltd. (PTCA.KA) (PTCL) reported on Thursday a net profit of 5.3 billion rupees ($66.45 million) in the first half of the 2008/09 fiscal year (July-June).

This compared with a net loss of of 9.54 billion rupees in the first half of the 2007/08 fiscal year.

PTCL incurred a one-time restructing cost of 23.163 billion rupees in first half of the 2007/08 fiscal year because of a voluntary redundancy programme which resulted in it shedding 45 to 50 percent of its workforce.

The result was below a net profit forecast range of 6.86 billion rupees to 6.63 billion rupees estimated by four analysts surveyed by Reuters.

"The result was below expectations because PTCL's finance costs rose significantly," said Umer Pervez, an analyst at AKD Securities Ltd.

For more on this article, please click on the following link: Pakistan's PTCL net profit 5.3 bln rupees: Reuters

Royal Bank of Scotland Looks To Sell Pakistan Operations: Easy Bourse

KARACHI -(Dow Jones)- The Royal Bank of Scotland Group PLC (RBS) - which Thursday announced a major restructuring of the company - said in a separate statement that it is looking at the possibility of selling its wholly-owned Pakistan unit because of financial difficulties caused by the global economic meltdown.
"RBS has announced its intention to explore new ownership for the retail and commercial operations in Pakistan," the bank said in a statement to the Karachi Stock Exchange.
"We are unable to confirm the details surrounding the potential sale but we can confirm that it has generated considerable interest from potential purchasers, reinforcing the value and potential of the business in Pakistan," RBS Chief Executive Stephen Hester said in the statement.
The statement said also that the company is unable to invest in its Pakistan business due to capital constraints and because of the need to reduce the size of its balance sheet.
No financial details were given.
On Sept. 30, 2008, RBS' assets in Pakistan totaled PKR112 billion ($1.4 billion) while deposits were PKR86 billion and advances PKR70 billion. It has around 80 branches across the country.

For more on this article, please click on the following link: Royal Bank of Scotland Looks To Sell Pakistan Operations: Easy Bourse

Asian Development Bank offers to double Pakistan's aid: Monsters and Critics

Islamabad - The Asian Development Bank (ADB) on thursday offered cash-strapped Pakistan to double its annual assistance to three billion dollars during the incoming fiscal year staring on July 1, a senior official of the bank said.

'We can double Pakistan's assistance up to three billion per annum provided Islamabad makes a request and the funds available to ADB are increased,' the bank's vice president Zhao Xiaoyu told reporters in Islamabad.

For more on this article, please click on the following link: Asian Development Bank offers to double Pakistan's aid: Monsters and Critics

Kerry to move bill for tripling non-military aid to Pakistan: NDTV

Chairman of Senate Foreign Relations Committee John Kerry has said that he would soon be introducing a legislation in the US Congress to triple the non-military aid to Pakistan to avert an economic meltdown.

Speaking after the release of a report on Pakistan by the prestigious Atlantic Council at the Capitol Hill on Wednesday, Kerry said it is time that the international community should come together to help Pakistan come out from its present economic mess.

The report, released jointly by Senators Kerry and Chuck Hagel, asks for an additional USD4-5 billion of immediate financial aid for Pakistan to avert an economic meltdown.

If the US and its Atlantic partners do not provide Pakistan with this assistance, the country may be placed on a downward trajectory whose consequences will be dire, the report said.

He said he would soon be introducing a legislation in the US Congress to triple the non-military aid to Pakistan.

For more on this article, please click on the following link: Kerry to move bill for tripling non-military aid to Pakistan: NDTV

Trickle Down Economics: Remittances: Economist

Migrants are less fickle sources of cash than foreign creditors

QUEUES of migrant workers waiting to send money to their families hardly present globalisation at its most glamorous. But such remittances made up more than a fifth of the GDP of some countries such as Jamaica, Jordan, Lebanon, Moldova and Tajikistan in 2007.

Data compiled by researchers at the World Bank suggest that remittances may have another virtue that is less widely appreciated. Although they are likely to fall as a result of the slumping world economy, they may be less fickle than more publicised private-capital flows, such as equity and lending by foreign banks.

Private-capital flows have plunged in the past year, and are continuing to fall. The Institute of International Finance (IIF), a global banking body, reckons that net private-capital inflows into emerging economies fell from $929 billion in 2007 to $466 billion in 2008, a drop of nearly 50%. And 2009 will see only $165 billion flow to emerging economies, according to the IIF.

For more on this article, please click on the following link: Trickle Down Economics: Remittances: Economist

Global slowdown seen hitting BD remittances: The News

DHAKA: The global economic crisis is likely to halve Bangladeshi expatriate remittances and the number leaving to work abroad this year, a top recruiter said on Monday.

“Due to the global slowdown, recruitment (for overseas jobs) and (expatriate) remittances will fall at least by 50 per cent,” Golam Mostafa, president of the Bangladesh Association of International Recruiting Agencies (BIRA) told a news conference.

State-managed BIRA is the principal agent in the country recruiting Bangladeshi workers for foreign employment.

For more on this article, please click on the following link: Global slowdown seen hitting BD remittances: The News

Pakistan Can Export Ample Milk To Malaysia: Bernama

KUALA LUMPUR, Feb 25 (Bernama)-- Pakistan, one of the world's largest milk producers, will be able to meet Malaysia's need for milk as it produces more than 34 million tonnes annually, the Pakistan High Commission's commerce counsellor, Majid Qureshi, said today.

The imported milk could either be fresh or in powdered form, he told Bernama on the sidelines of the Business Leaders Meetings in conjunction with the D8 Ministers' Meeting on Food Security conference here today.

Currently, Malaysia imports about eight million tonnes of milk and milk powder annually from other countries, particularly New Zealand and Australia.

Qureshi said Malaysian companies with technical expertise and funds could invest in Pakistan to further develop the sector.

He also said that Pakistan would be able to provide ample Halal meat to Malaysia.

For more on this article, please click on the following link: Pakistan Can Export Ample Milk To Malaysia: Bernama

Senator Lugar confident of 1.5 $ billion economic assistance bill for Pakistan: APP

WASHINGTON, Feb 24 (APP): U.S. Senator Richard Lugar, a seasoned member of powerful Foreign Relations Committee, has voiced the confidence in early progress towards a landmark legislation that would authorize at least $ 1.5 billion annually in economic development assistance for Pakistan over 10 years. “We want to show to the Pakistani people that the United States attaches importance to their economic uplift,” he told APP.

The Republican senator, who last year co‑sponsored the bill with the then Senate Committee chairman and now U.S. Vice President Joseph Biden, was hopeful of reintroduction of the measure in the chamber in the near future. Senator John Kerry, chairman of the Foreign Relations Committee, and Senator Lugar, the Ranking Member, are working on the measure, which is now to be commonly known as Kerry‑Lugar Act.

For more on this article, please click on the following link: Senator Lugar confident of 1.5 $ billion economic assistance bill for Pakistan: APP

Scope for Pakistan rate cuts if inflation falls-IMF: Reuters

WASHINGTON, Feb 25 (Reuters) - Pakistan's monetary policy is appropriate but there would be room to lower interest rates if inflation declined, the International Monetary Fund said on Wednesday.

In a statement following a 12-day staff mission to review a $7.6 billion stand-by lending program, the IMF said it was "impressed" by Pakistan's resolve to sustain prudent policies, strengthen the social safety net and pursue reform.

For more on this article, please click on the following link: Scope for Pakistan rate cuts if inflation falls-IMF: Reuters

Progress of Islamic banking highlighted: The News

KARACHI: State Bank of Pakistan in collaboration with the Islamic Financial Services Board (IFSB) has organised a three-day workshop (from Feb 23 to Feb 25, 2009), as a part of its capacity building initiative for the Islamic banking industry.

Speaking at the inaugural session of the workshop held at the Learning Resource Centre of SBP here on Monday, Khawla Al-Nobani, Assistant Secretary General of the IFSB, said that she felt encouraged at the healthy growth of the Islamic banking industry of Pakistan.

She appreciated SBP’s role in providing an enabling environment to the industry through the provision of suitable regulatory and supervisory framework. She expressed confidence that the workshop would prove to be very beneficial for the industry players and the supervisory agency in adoption/adaptation of the standards in the country, said an SBP release here.

While inaugurating the workshop, Pervez Said, Director Islamic Banking Department of the State Bank, appreciated the significant role that the IFSB is playing as an international standard setting body thereby helping the Islamic financial services industry to grow worldwide on a sound and stable footing.

He also praised IFSB for the hard work being put in for preparing various standards wherein best international practices are followed through an exhaustive process involving thorough research, discussions, public hearings, workshops/seminars etc. In Pakistan, he pointed out, SBP’s five-year strategy for the development of Islamic banking industry, envisaged rolling out of various international prudential standards developed by IFSB as an important pillar.

SBP has accordingly seized the opportunity by capitalising on IFSB’s expertise through holding such workshops at this juncture, he added. Participants from the local Islamic banking industry and various regulatory and supervisory departments of the State Bank are attending the workshop which is focusing on issues like risk management, corporate governance and supervisory review process.

For more on this article, please click on the following link: Progress of Islamic banking highlighted: The News

Govt likely to pocket Rs100bn from low crude prices: The News

By Mehtab Haider

ISLAMABAD: The government is all set to break the record of last 60 years by earning substantial revenues of over Rs100 billion by not passing on full benefits of reduced prices of crude oil in the international market to domestic consumers, it is learnt.

The government is reluctant to cut prices because it wants to meet the fiscal deficit target of 4.2 per cent of gross domestic product (GDP), equivalent to Rs562 billion. In the remaining four months (March to June) of the current fiscal year, the government has no plan to pass on benefits of reduced prices in POL products to the consumers due to a substantial revenue shortfall being faced by the Federal Board of Revenue (FBR).

The Nawaz Sharif government in 1998-99 had collected Rs72 billion by not passing on low prices of crude oil in the international market to the local consumers when prices had tumbled to $10 to $15 per barrel.

“So far the government has earned Rs55 billion by pocketing around Rs15 billion per month,” a high-level official in the finance ministry said while talking to The News here on Monday. According to the official data obtained by The News, the monthly oil import bill stood at $1.319 billion in September 2008, which declined to $403.6 million in Dec 2008.

The government is saving around $900 million a month because of reduced POL prices in the international market. According to Adviser to the Prime Minister on Finance Shaukat Tarin there was a need to keep in focus the whole picture of economy as defence expenditures have gone up and FBR revenues have fallen.

For more on this article, please click on the following link: Govt likely to pocket Rs100bn from low crude prices: The News

Government urged not to seek more loan from IMF: Online News

ISLAMABAD: Acting President, Islamabad Chamber of Commerce and Industry (ICCI), Shaban Khalid has urged the government not to seek more loan from IMF as it would have devastating effects on the economy in the long run.

Acting President ICCI was commenting on the statement of Advisor for Finance Mr. Shaukat Tareen that a Pakistani delegation was holding talks with IMF officials in Dubai for seeking 4.5 billion dollars new loan.

Pakistan’s external debt and liabilities have surged to $50.85 billion during the second quarter of current fiscal year from $45.50 billion and the main contributor to this rise in foreign debt was $3.1 billion obtained from International Monetary Fund in November 2008, Acting President ICCI observed.

He underlined that in coming days, the annual debt payments would further increase as a result of surge in external debt and liabilities which will put more burdens on our scant financial resources.

Shaban Khalid said our foreign debt and liabilities have risen by $15.01billion during last three and a half years from $35.834 billion at the end of June 2005 while additional IMF loan will further enhance our debt servicing obligations squeezing our resources for developmental projects.

He said we should learn from the history as the history of IMF relationship with countries shows that IMF loaning facilities always proved harmful to people as well as to business entities.

He said IMF prescriptions to borrowing countries like eliminating all subsidies on utilities and agriculture inputs, slashing government spending and raising taxes made conditions tougher for general public and businessmen.

For more on this article, please click on the following link: Government urged not to seek more loan from IMF: Online News

Google Earth reveals secret history of US base in Pakistan: Times Online

The US was secretly flying unmanned drones from the Shamsi airbase in Pakistan's southwestern province of Baluchistan as early as 2006, according to an image of the base from Google Earth.

The image — that is no longer on the site but which was obtained by The News, Pakistan's English language daily newspaper — shows what appear to be three Predator drones outside a hangar at the end of the runway. The Times also obtained a copy of the image, whose co-ordinates confirm that it is the Shamsi airfield, also known as Bandari, about 200 miles southwest of the Pakistani city of Quetta.

An investigation by The Times yesterday revealed that the CIA was secretly using Shamsi to launch the Predator drones that observe and attack al-Qaeda and Taleban militants around Pakistan's border with Afghanistan.

US special forces used the airbase during the invasion of Afghanistan in 2001, but the Pakistani Government said in 2006 that the Americans had left. Both sides have since denied repeatedly that Washington has used, or is using, Pakistani bases to launch drones. Pakistan has also demanded that the US cease drone attacks on its tribal area, which have increased over the last year, allegedly killing several “high-value” targets as well as many civilians.

For more on this article, please click on the following link: Google Earth reveals secret history of US base in Pakistan: Times Online

Cork, Bayliss urge wavering nations to play in Pakistan: AFP

KARACHI (AFP) — Former England paceman Dominic Cork and Sri Lankan coach Trevor Bayliss on Monday urged foreign teams to play in Pakistan, where three major events were cancelled over security fears last year.

Australia refused to go on a scheduled Test and limited over match tour in March last year.

They agreed to reschedule the tour and visit for one-day internationals in 2009 and Tests in 2010.

But earlier this month they forced Pakistan to play the one-day series at the neutral venues of Dubai and Abu Dhabi in April-May this year after the Australian government refused permission to tour.

Australia, who also played Pakistan in three Tests at neutral venues of Colombo and Dubai in 2002 over security fears, have not toured here since 1998.

India also refused to send its team across the border amid heightened tensions in the wake of attacks on Mumbai, which New Dehli blamed on militants based in Pakistan.

The International Cricket Council (ICC) was forced to move out the Champions Trophy after three top teams pulled out, saying touring Pakistan was a high risk for their players.

For more on this article, please click on the following link: Cork, Bayliss urge wavering nations to play in Pakistan: AFP

Captain Khan leads Pakistan comeback in first cricket test: Canadian Press

KARACHI, Pakistan — New captain Younis Khan led the comeback with a patient century as Pakistan reached 296-3 against Sri Lanka on the third day of the first cricket Test Monday.

Khan kept experienced Sri Lanka spinners Muttiah Muralitharan and Ajantha Mendis at bay throughout the day in scoring an unbeaten 149 off 282 balls. Misbah-ul-Haq was batting on 20 at stumps.

The Pakistan captain's job is far from over as the home team requires a further 149 runs to avoid the follow-on. Sri Lanka declared its first innings at an imposing total of 644-7.

Sri Lanka captain Mahela Jayawardene and Thilan Samaraweera both scored double-centuries Sunday and combined for a record-breaking 437-run partnership for the fourth wicket in the visitors' highest ever total in an innings against Pakistan.

"Last night before going to sleep I thought if Mahela could score a double-century, I should do the same for my team," Khan said. "It was actually good (to score a century) because if a captain performs like that the whole team follows him."

For more on this article, please click on the following link: Captain Khan leads Pakistan comeback in first cricket test: Canadian Press

Profit on POL products crosses Rs.55 bln: The News

ISLAMABAD: The profit, earned by government on the petroleum products, has crossed fifty-five billion rupees excluding taxes, industry sources said on Saturday.

According to sources, the government has been collecting the difference between actual prices and selling prices of petroleum products since October 2008.

Sources added in every 15 days, profit estimated at 7-8 billion rupees is being accumulated in national treasure.

For more on this article, please click on the following link: Profit on POL products crosses Rs.55 bln: The News

Textile exports drop creating fear of big layoffs: Dawn

By Mubarak Zeb Khan

ISLAMABAD: The export of non-textile products soared by 24.5 per cent in the first seven months of the current fiscal year to $5.062 billion as against $4.066 billion over the last year mainly on the back of massive export of rice.

Though the export of these traditional products are on the higher side but exports on the whole decelerated sharply owing to decline in export of carpets and leather products during the period under review, suggested data of federal bureau of statistics.

The upward trend in the export of non-textile products has been witnessed since July 2008 indicating a natural diversification of the export base, owing to the highest ever depreciation of Pak rupee, which was highly concentrated in a few textile-based products.

But the export proceeds of carpets and leather products have witnessed a declining trend since December 2008 owing to higher cost of doing business and high competition from Chinese and Indian exporters.

The data released here revealed that the textile and clothing exports dipped by 3.79 per cent to $5.827 billion in July-January this year as against $6.056 billion over last year despite depreciation of rupee, which should have made Pakistan’s textile and clothing products more competitive.

It is also clear (from the fact that the import of textile machinery also dropped by over 41 per cent during the period under review over last year) that textile tycoons were not making any investment to improve the competitiveness of their products.

For more on this article, please click on the following link: Textile exports drop creating fear of big layoffs: Dawn

Excavation work for hydropower project starts: The News

LAHORE: Excavation of a 47km-long network of tunnels, one of the main works for the 969-megawatt Neelum Jhelum Hydroelectric Project (NJHEP), has started at the project site near Muzaffarabad in Azad Jammu and Kashmir.

The tunnel network is meant for diversion of Neelem river water to outfall into the Jhelum river near Chattar Kalas. A statement issued here said NJHEP General Manager Hasnain Afzal and a representative of Islamic Development Bank witnessed the blasting of rocks for excavation.

The Neelum Jhelum Hydroelectric Project is of immense importance as it would inject low-cost hydel electricity into the national grid. The IDB and other Middle Eastern donors have already agreed to finance the project.

For more on this article, please click on the following link: Excavation work for hydropower project starts: The News

Pakistan takes on Sri Lanka: The Hindu

KARACHI: Pakistan captain Younis Khan believes his team must quickly adapt to a new-look line-up as it prepares to play its first Test in 14 months when it takes on Sri Lanka from Saturday.

Pakistan will be without Mohd. Yousuf — out of the side for signing with the Indian Cricket League — fast bowler Shoaib Akhtar (fitness problems) and Shahid Afridi, who was dropped from the squad for the first Test. The Pakistan Cricket Board appointed Younis as captain, replacing Shoaib Malik, after last month’s one-day series against Sri Lanka.

“It’s true that few of the seniors are not with us but these seniors won’t be with us forever,” Moin said on Friday.

For more on this article, please click on the following link: Pakistan takes on Sri Lanka: The Hindu

Armed forces alarmed over construction of dams on River Indus: The News

By Khalid Mustafa

ISLAMABAD: Armed forces got alarmed over the construction of three dams by India on River Indus and asked the authorities concerned to look into it in detail and chalk out a modus operandi to reduce the impact of the said establishments on Pakistan’s interests. “Pakistan’s authorities concerned including the officials of General Headquarters (GHQ), (National Engineering Services of Pakistan) NESPak, Wapda, Irrigation Department of Punjab and Pakistan Commission of Indus Water would assemble in Lahore today (Saturday) to discuss the fallout impacts on Pakistan’s water and defence interests of the ongoing construction of three dams in Ladakh region on River Indus,” a senior official told The News.

“In addition, the participants would also figure in the Kishanganga hydropower project as Permanent Commission of Indus Waters has failed to resolve this issue. The participants are likely to recommend that this issue should be taken up at government level and if the dispute remains unresolved by both the governments, then neutral expert should be moved.”

The meeting, the official said, would also recommend to the government to take action against India for violating the treaty during the filling of Baglihar Dam, resultantly Pakistan experienced a massive dip in Chenab water that inflicted damage to the sowing process of wheat.

Earlier, it was proposed that the government would write a letter to the Indian government registering severe protest on the Chenab water ‘theft’, but the government of the day did not send a letter for unknown reason. The Punjab government then wrote a letter to the Centre in this regard, asking for required action for Chenab water dip. The federal government remained unmoved.

Syed Jamaat Ali Shah, Commissioner of Pakistan Commission of Indus Water, would chair this crucial meeting. The News in Feb 9 issue disclosed that India has initiated the construction of three dams on River Indus. “India is constructing large dams on River Indus, which include Nimoo Bazgo with a height of 57-metre, Dumkhar of 42 metres height and Chutak dam of 59 metres height to basically generate hydropower.

The three dams on River Indus in the Ladakh region will harness 219 megawatt (MW) of hydropower. “Yes, I have convened a meeting of all stakeholders to discuss the issues including the construction of dams on Indus,” Syed Jamaat Ali Shah, said when contacted by The News.

For more on this article, please click on the following link: Armed forces alarmed over construction of dams on River Indus: The News

‘Kashmir be given to Pakistan’: Slipper thrown at Arundhati Roy: Daily Times

LAHORE: A slipper thrown at Arundhati Roy when she visited the Delhi University on February 13 was auctioned for Rs 101,000 on Thursday, Hindustan Times reported. Asif Kumar, a member of the Youth Unity for Vibrant Action, threw his slipper at the acclaimed author in protest against her statement that “Kashmir should be given to Pakistan”, an official of the student group told the newspaper. daily times monitor

For more on this article, please click on the following link: ‘Kashmir be given to Pakistan’: Slipper thrown at Arundhati Roy: Daily Times

Pakistan repays maturing $500 mln Eurobond: Reuters

KARACHI, Feb 19 (Reuters) - Pakistan fully repaid a maturing $500 million euro bond, plus $17 million interest, on Wednesday, the central bank said on Thursday.

"We fully paid the amount yesterday," central bank spokesman Syed Wasimuddin told Reuters, referring to the bond which was issued in 2004 and matured on Thursday.

For more on this article, please click on the following link: Pakistan repays maturing $500 mln Eurobond: Reuters

Pakistan may export flour on surplus wheat: The News

Friday, February 20, 2009
SINGAPORE: Pakistan will likely produce more wheat from its bumper crop than a government target of 25 million tonnes this year, paving the way for more exports from South Asia which could further dent world prices.

“There is no fear of any shortfall. It should meet our requirement, we should have some surplus,” Muhammad Saeed, chairman of the Trading Corp of Pakistan, told Reuters.

“We are looking into exports. We will do value addition and send wheat flour to Afghanistan. Depending on the market conditions, we may export to the Middle East.”

Pakistan joins India in producing a record crop which may allow wheat exports from South Asia, adding pressure to the already depressed global wheat prices.

India, the world’s second-biggest wheat producer, is expected to export the grain for the first time in six years after a near record harvest of 77.8 million tonnes that is likely to boost stocks.

Wheat prices have dropped 62 per cent to $5.12-ž per bushel since peaking on the global benchmark Chicago Board of Trade in February 2008, pressured by rising global supplies amid an economic slump.

For more on this article, please click on the following link: Pakistan may export flour on surplus wheat: The News

‘Coalition support arrears for war on terror have reached $1.5bn’: Daily Times

By Sajid Chaudhry

ISLAMABAD: Arrears of coalition support for the war on terror have increased to $1.5 billion since May 2008, Finance Adviser Shaukat Tareen said on Thursday.

“We have asked them to at least release $100 million per month and scrutinise the remaining claim of $50 million for subsequent disbursement and they have termed it as a good suggestion,” he told reporters after inaugurating a one-day workshop on the Medium Term Budget Framework (MTBF).

He said that Pakistan would forward its formal request for additional $4.5 billion to bridge the financing gap owing to losses of the war on terror to the International Monetary Fund (IMF) authorities at the IMF-World Bank annual meeting in April.

Responding to a question on the IMF review of Pakistan’s economy underway in Dubai, he said that review is going well and there would be positive a outcome.

For more on this article, please click on the following link: ‘Coalition support arrears for war on terror have reached $1.5bn’: Daily Times

Islamic Banking and Finance: Historical Perspective and Future Prospects: Economistan

PROFITING FROM PROPHETIC TEACHINGS

Islamic banking and finance had its major beginnings in the year 1975 with the establishment of the Islamic Development Bank. Islamic banking has flourished in various countries since then with Malaysia, Indonesia, UAE, Pakistan and Saudi Arabia being in the forefront. Islamic banking has also recently done rather well in non-Muslim countries with the reported size of UK Islamic banking overtaking that of majority Muslim countries like Pakistan. Islamic banking assets are thought to be anywhere from 700 billion dollars to 900 billion dollars as of 2009. The credit crunch that has affected much of the western world has not taken its toll on the Islamic Banks, mainly because of the nature of the underlying transactions which admonish Riba and encourage instead a partnership based approach. The result is that the actual profit or loss is shared with the shareholders rather than an arbitrary number called Riba or “interest” which they have to come up with to please the investors regardless of the market situation. In this way, Islamic Banking also helps in depicting the true state of the economy.

Islamic indices historically have also been outperforming the other indices with the Dow Jones Islamic Developed World Index outperforming the MSCI World Index consistently over the past few years. Growth in Islamic banking has also been stellar and it has been growing at a healthy rate of 15-20% per year according to estimates. Moody’s has projected that Islamic banking would expand to a total value of $4 trillion dollars in another five years. The reason to this growth can also be attributed to the western banks taking interest in the Islamic banking instruments. Lloyd’s bank in the UK spread Islamic instruments to all of its two thousand branches in 2006 from five branches a year earlier. HSBC, Standard Chartered and Citigroup are some of the conventional western banks which have invested in Islamic banking.

Islamic bonds called Sukuk have been....

For more on this article, please click on the following link: Islamic Banking and Finance: Historical Perspective and Future Prospects: Economistan

‘IT industry could touch $10bn export in next 5 years’: The News

By M Farhan Zaheer

KARACHI: Adnan H Lawai, who came to Pakistan after working in Silicon Valley, San Francisco, United States for 12 years in the field of Information Technology (IT), is now running a fast growing IT company in Pakistan that he set up with his friend three years back.

Adnan H Lawai, CEO of folio3 is a Karachi-based IT company, said I and my partner Umair (who is in USA) started folio3 three years ago with most of our customers from USA.

After completing my college education there, I worked as an IT professional for 12 years in Silicon Valley. We both had some good contacts in US especially in the field of technology because we have been working with some prestigious companies there. The company grew at a tremendous speed and expanded its operations more than three times in last 3 years.

In late 90s, there was a boom in the field of technology all over the world and people thronged this field, the same was the phenomenon in Pakistan. But in 2001 and 2002, it collapsed and the same results were also felt here in Pakistan. We took this as an opportunity in disguise and started our operation in Pakistan. We could afford to hire people and could get very good talent, so we accepted that challenge. We were among the very few of IT companies that started hiring in that difficult time.

The year 2005 brought positive signs for the country’s IT sector and it again started booming and this time we went to universities and hired best talent directly. Later in 2006 when we started this company, we faced a very tough competition. But fortunately by then, we had established a very good reputation in the market, the environment was good and fresh university graduates were coming to us.

In Karachi, we retain some 90 employees. Another branch of our company is in Sofia, Bulgaria where we have one dozen Bulgarian employees because if you look for experienced people you will not find here in Pakistan. But there you will find specific field experts unlike Pakistan. Second reason, why we went to Bulgaria, is that we have a trusted friend in Bulgaria who established all in Sofia. Karachi is home to many IT companies but these companies are relatively smaller to those that are working in Lahore. From 2002 up to date, IT industry has witnessed massive growth and our software exports are growing at a rate of 50 per cent.

For more on this article, please click on the following link: ‘IT industry could touch $10bn export in next 5 years’: The News

Islamic finance accelerates into motor policies: The Independent

Muslim insurance could prove popular with other drivers too, says Chiara Cavaglieri

First it was Islamic current accounts, then mortgages and investment funds, and now we have a motor insurance product that conforms to Islamic law, or sharia.

This move will be welcomed by many of the two million British Muslims looking to buy insurance cover aligned with their faith. But it could also prove popular for non-Muslims who find the notion of an ethical or co-operative insurance product appealing.

Unlike conventional insurance, where risk is transferred from the policyholder to the insurance company, halal [permissable] insurance, or takaful ("guaranteeing each other"), requires all participants to share risk equally. Instead of premiums, participants pay contributions which, as with ordinary insurance, are calculated on the presumed risk of the individual and how likely they are to claim. These contributions are then pooled in a takaful fund which is invested in strictly halal activities. There is also a Shariah Supervisory Committee, made up of sharia scholars, to oversee all activities and to ensure that the whole process is consistent with Islamic principles.

Interestingly, once the fund has been used to pay for any valid claims, any surplus money is redistributed to participants at the end of the year in the form of discounted premiums, which come in addition to any no-claims bonuses.

"What is unique is the ethical nature of what we do," says Bradley Brandon-Cross, the chief executive of Salaam Halal Insurance. "It's a transparent process and the opportunity to get something back is attractive to customers, both Muslims and non-Muslims alike."

But there is no guarantee that there will be any surplus money to share out. Motor insurance firms have been making underwriting losses in recent years: there was a recorded deficit of £267m in 2007 and £204m in 2006.

For more on this article, please click on the following link: Islamic finance accelerates into motor policies: The Independent

China to bear 85pc cost of Chashma power projects: The News

By Mehtab Haider

ISLAMABAD: China will provide 85 per cent cost for construction of Chashma Nuclear Power Projects (C3 and C4) by extending suppliers’ credit, paving the way for generating additional electricity up to 680 megawatt over the next seven years to overcome energy shortages in Pakistan, it is learnt.

According to highly placed official sources, Pakistan and China are going to finalise the modalities of the supplier credit for two more nuclear power reactors (Chashma 3 and Chashma 4) in the upcoming visit of President Asif Ali Zardari, who is visiting Beijing from Feb 20.

During the last visit of President Zardari, China and Pakistan had signed a deal for C3 and C4 and now finalisation of related modalities will be on the agenda of the upcoming highest level visit of Pakistani authorities during this ongoing week.

In the Public Sector Development Program (PSDP) for 2008-09, the government had estimated the cost of C3 and C4 worth Rs129.905 billion, with foreign currency component of Rs80.360 billion. The government has allocated Rs220 million for the C3 and C4 in the current fiscal year 2008-09. “The cost of the C3 and C4 has already gone up from Rs129 billion to over Rs140 billion mainly because of depreciation of rupee against dollar in the ongoing fiscal year,” a high-level official in the Planning Commission confirmed while talking to ‘The News’ here on Monday.

China has already installed a 325-megawatt reactor at Chashma and is currently working on another with the same capacity that is expected to begin producing by 2009-10. Pakistan is facing a deficit of 4,000 to 5,000 megawatts, resulting in torturous load-shedding for hours in a day.

For more on this article, please click on the following link: China to bear 85pc cost of Chashma power projects: The News

Unplanned cement capacity expansion: Dawn

By Engineer Hussain Ahmad Siddiqui

CURRENTLY, cement is a 2.50 billion tons global business and its consumption is expected to increase to 3.13 billion tons by 2015. Many countries are engaged in expanding their production capacities in a big way and large-size greenfield cement plants are being installed.

World’s largest plant in Missouri (US) with a capacity of 12,000 tons of clinker per day, or four million tons of cement annually, is to be commissioned in third quarter of 2009.

Following the international trend, the Pakistan Board of Investment (BoI) is promoting investments in large-size cement plants, of the capacity of 10,000 ton per day, a greenfield project costing around $234 million. Whether or not it is viable under local conditions, major producers are moving ahead without proactive planning.

Large-scale capacity expansion is being undertaken by many cement companies to capitalise on projections of high cement demand, particularly in the export markets. Fauji Cement Co Ltd has announced construction of a new plant of 7,200 tons of clinker per day to go on stream by early 2010. This will increase Fauji Cement’s annual installed capacity about three times--from existing 1.165 million to 3.27 million tons.

Lucky Cement has emerged as the largest cement producer, with an installed capacity of 6.55 million tons per annum, by adding two plants of 8,400 ton per day capacity each.
DG Khan Cement, second largest, has 4.21 million tons annual capacity. A company, which operates a 10,000 ton per day cement plant, is implementing another expansion plan. This will enhance its total installed capacity in the range of 6.32 to 7.99 million tons annually by 2010.

Over the last four years, cement industry has witnessed remarkable expansion, from 16.93 million tons per annum in 2003-04 to 37.16 million tons in 2007-08. By the year 2010, the total annual cement capacity is planned to be around 51 million tons. Per capita annual consumption of cement is 131 kg, in comparison to world average of 273 kg. Thus, there appears to be promising potential for increased consumption in future, justifying the planned large capacity expansion.

For more on this article, please click on the following link: Unplanned cement capacity expansion: Dawn

Insurgency takes heavy toll on Pakistani police: Tampa Bay

By Vanessa Gezari, Times Correspondent

Most days, the police chief of Pakistan's North West Frontier Province feels more like the commander of an unwieldy counterinsurgency than a cop. In the last year, Taliban militants have overrun the territory his men patrol, a province of 23 million that skirts Pakistan's lawless tribal belt along the Afghan border. Kidnappings, beheadings and suicide attacks have grown common. • One morning last month, Inspector General Malik Naveed Khan leaned back in a leather armchair in his office and lit a Dunhill. As a boy he'd been drawn to the glamor of the gun and the badge; 36 years he'd been doing this, he said with amazement, exhaling smoke. Then a yellow telephone near his right hand rang. • "Hello," he said. "Oh God. Oh God. Okay." • A police sub-inspector had picked up an oilcan full of explosives, but it had slipped from his hands and detonated, killing him. In 2007, Khan's force lost 72 police. In 2008, the number more than doubled, with more than 500 injured, often seriously, losing legs and eyes. In the first few weeks of 2009, more than a dozen police have been killed and wounded in bomb blasts or kidnapped by insurgents. Several nights a week, Khan is awakened by one of his aides and told of another attack, another dead officer. "It's like losing a part of your body," he said. • The insurgency's toll on the police is a sign of its evolution from a border uprising — confined to Pakistan's lawless tribal areas and targeting U.S. and international troops fighting in Afghanistan — to one that preys on the country's urbane middle class.

For more on this article, please click on the following link: Insurgency takes heavy toll on Pakistani police: Tampa Bay

EU garment-makers eye Pakistan for joint ventures: The News

By By our correspondent

KARACHI: Federal Textile Adviser Dr Mirza Ikhtiar Baig, on his return from European Union countries, has said EU garment manufacturers are seriously looking to Pakistan to form joint ventures for supplying products to their chain of stores. The interest was prompted by current recession and increasing cost and wages, he said.

According to a spokesman for the adviser, during the visit Baig met Senior Executive Werner International Nice (France) Nicola Monti. It was one of the largest and renowned textile consultants of the world having more than 40 years of experience in dealing with textile and apparel industry of Pakistan, India, China and 65 other countries.

Monti told Baig that EU garment units were moving from the US and Europe to China and India and brand manufacturers were looking for more routes for supplies and were interested to have joint ventures in Pakistan.

Baig said Pakistan had achieved high growth in textiles and apparels but had a low share in the international market. China topped the US market with a share of 36 per cent followed by Bangladesh 21 per cent, India 18 per cent, Morocco 19 per cent and Pakistan 13 per cent. South Korea has lost 20 per cent of the US market.

In the European market, China topped again with a share of 29 per cent, Vietnam 28 per cent, India 19 per cent and Pakistan only 1.5 per cent while the Philippines had lost 11 per cent of the market.

Monti informed Baig that Pakistani garment manufacturers could cut their cost up to 45 per cent in sewing by improving efficiency.

For more on this article, please click on the following link: EU garment-makers eye Pakistan for joint ventures: The News

Pakistan Energy Yearbook FY08: Dependence on imported energy products increasing: Daily Times

By Muhammad Yasir

KARACHI: The country’s dependence on imported energy products has risen by five percent in the last four fiscal years on its growing demand by power plants and transport sector.

The Pakistan Energy Year Book FY08, released by Hydro Carbon Development Institute, showed that the share of imported energy has risen to 35 percent in FY08 against 30 percent in FY04. This is mainly due to higher import of refined petroleum products, crude oil and Liquefied Petroleum Gas (LPG) for meeting the local demands of various sectors. During last four fiscal years (FY04-08), the energy consumption grew by 8 percent according to Compound Annual Growth Rate (CAGR), whereas energy supplies have risen by 5 percent with significant shift in energy supply mix from gas to oil.

According to the report, the energy consumption of the country stood at 39.4 million tonnes with gas and oil’s share in energy consumption at 40.3 percent and 29.3 percent, while that of, electricity, coal and LPG at 15.2 percent, 13.7 percent and 1.5 percent respectively.

The oil contribution doubled during the last 4 years with consumption reaching 44.7 percent. In FY04, gas share in thermal power generation was 77.5 percent , whereas oil had a share of 21.9 percent. Owing to rising gas shortage and availability of alternative fuel like furnace oil (FO), gas supply to power plants declined annually by 3 percent during the said period. Besides these factors, phenomenal increase in CNG consumption (43 percent CAGR) during this period also confined gas supplies to power sector. In terms of fuel mix, gas remains the primary contributor to thermal power generation with consumption of 8.5 million tonnes (54.9 percent share).

The report said the country’s primary energy supplies posted 23.8 percent growth in FY08 and stood at 62.9 millon tonnes (tons of oil equivalents) versus 50.8 million tonnes in FY04. In FY04-FY08, the average growth of supplies stood at 5 percent with 3.8 percent growth posted in FY07, 9.31 percent growth in FY05 and 8.06 percent in FY04.

For more on this article, please click on the following link: Pakistan Energy Yearbook FY08: Dependence on imported energy products increasing: Daily Times

Nato is deeper in its Afghan mire than Russia ever was: Guardian

Two decades after the Soviet withdrawal, ever more resources are being poured into a war with scant chance of success
Jonathan Steele

Twenty years ago tomorrow the last Soviet units left Afghanistan after a nine-year intervention that took 15,000 soldiers' lives. As they crossed the river Oxus I was in the air above them, the only foreign journalist to fly to Kabul that day.

Russian friends in Moscow, where I was this newspaper's correspondent, doubted my sanity, convinced a bloodbath was bound to follow the Soviet exodus. I disagreed. The secular regime under Mohammed Najibullah that the Kremlin left behind had a firmer base than many outsiders realised, thanks in part to support from Kabulis who feared chaos and blood-letting if the mujahideen won the civil war.

Two decades later the ironies of America's war in Afghanistan are telling. When Richard Holbrooke, the new US envoy to the region, visited the country this week he may not have been aware of the Soviet anniversary. But the US-led intervention is already almost as long. At this stage of their war the Russians were preparing to leave. Now the US and Nato want to get further in, and if Barack Obama's plans for 30,000 extra US troops are met, along with efforts to get more from Nato, coalition forces will almost equal the 115,000 troops the Russians had at their peak.

For more on this article, please click on the following link: Nato is deeper in its Afghan mire than Russia ever was: Guardian

Military Laptops For Sale on Pakistan's Black Market: Wired

By Nathan Hodge

Peshawar, Pakistan, has always had a reputation as a smuggler's paradise, the perfect place to score a 3,000 rupee Kalashnikov knockoff, a rusty Lee-Enfield or a nice block of hash. And as GlobalPost correspondent Shahan Mufti discovered, it's also a place where you can buy some off-the-shelf U.S. military equipment.

Mufti recently paid a visit to the Sitara Market on the city's western edge, and was able to pick up a ruggedized U.S. military laptop for $650. The laptop, which looks like it is part of a vehicle diagnostics kit, came with clear U.S. military markings. According to the story, the laptop also stored "identities of numerous military personnel and information about weaknesses and flaws in American military vehicles being employed in the war in Afghanistan."

For more on this article, please click on the following link: Military Laptops For Sale on Pakistan's Black Market: Wired

Pakistan hopes to attract $5bn investment by expats: Daily Times

* Law to protect investments by overseas Pakistanis soon

Daily Times Monitor

LAHORE: A new law protecting investments by overseas Pakistanis may attract as much as $5 billion, Federal Minister Farooq Sattar said on Wednesday.

The minister said in an interview, “If the international corporate sector can get sovereign guarantees, then why not overseas Pakistanis. Once we introduce legislation – within the next four months – it will give them confidence.”

The minister said the investment was needed to revive the economy that had slumped last year after seven years of high growth. Last year, overseas investment dropped by a steep 38 percent.

Waqar Ahmed Khan, the minister for investments, had said in an interview last month, the government planned to raise $10 billion in foreign direct investment by December.

For more on this article, please click on the following link: Pakistan hopes to attract $5bn investment by expats: Daily Times

Japan extends US $ 27 million to Pakistan for promotion of economic structural adjustment : APP

ISLAMABAD, Feb 13 (APP): The government of Japan has extended an amount of Japanese Yen 2.5 billion or approximately US $ 27 million, as Non Project Grant Aid to Pakistan for support and contribution to the promotion of the economic structural adjustment efforts by the government as well as mitigation of Pakistan’s economic difficulties including indebtedness and balance of payments.

The official Exchange of Notes (E/N) to this effect were signed by Ambassador of Japan to Pakistan, Chihiro Atsumi on behalf of his country and Farrukh Qayyum, Secretary Economic Affairs Division (EAD) signed the agreement on behalf of the Government of Pakistan.

According to the agreement the grant shall be used by the government of Pakistan for the purchase of products from eligible source countries to be mutually agreed upon between the authorities of the governments and services incidental to such products.

It was agreed that the government of Pakistan and Japan shall consult each other about the details of the utilization of the funds.

For more on this article, please click on the following link: Japan extends US $ 27 million to Pakistan for promotion of economic structural adjustment : APP

KSE recovers following SECP’s relaxation in accounting treatment: The News

By By Salman Siddiqui
KARACHI: Relaxation from market regulators on ‘accounting standards’ in accordance with the local demand helped the Karachi bourse bounce back on Friday.

KSE 100-share index posted a notable recovery of 226.54 points or 4.20 per cent and closed at 5,625.90 points. Its junior partner, the 30-share index, rose by 283.26 points or 5.25 per cent and concluded at 5,681.89 points.

Analysts said the notifications from the Securities & Exchange Commission of Pakistan (SECP) and the State Bank of Pakistan (SBP) to allow companies listed at the local bourses to show impairment-losses on bourses in ‘equity held for sale’ instead of showing them in ‘net profit & loss accounts’ for one year period revived positive sentiments.

The notification helped turn the stock market indicators into positive, as the day turnover, positive closing stocks, market capitalisation and indices-points; all turned higher. Trading activity jumped up by 81 per cent to 162.430 million shares on the ready market as compared to 89.798 million shares changed hands a day earlier. However, no activity was seen in the future market as usual. The overall market capitalisation increased by Rs66 billion and stands at Rs1,766 billion as compared to Rs1,700 billion yesterday. Moreover, out of total 267 actives, the number of positive closing companies stands at 203 against 43 fell in red regions, while the value of 21 stocks closed unchanged.

Ahsan Mehanti at Shahzad Chamdia Securities said intense buying was witnessed following the SECP relaxed treatment for impairment of capital losses & its direct change to equity instead of profit & loss account. Investors sentiment remained positive throughout the trading session as the improved profitability is likely to be witnessed after amendment made by the SECP, he added.

For more on this article, please click on the following link: KSE recovers following SECP’s relaxation in accounting treatment: The News

Pakistan says economic problems easing: Forbes

Economic woes complicating Pakistan's struggle against Islamic militants are easing thanks to a tough rescue plan backed by the International Monetary Fund, but the program needs more than a year to succeed, the country's finance chief said Friday.

The perilous state of Pakistan's economy - which faced trouble even before the global economic crisis - is raising concern that unemployment and inflation will destabilize the nuclear-armed nation's pro-Western government and fan Islamist violence.

Shaukat Tarin told reporters the country's budget and trade deficits have already narrowed considerably.

The government's budget deficit will decline from 7.4 percent of gross domestic product in the past fiscal year, when ended in June, to between 4 percent and 4.2 percent in the current year, Tarin said.

For more on this article, please click on the following link: Pakistan says economic problems easing: Forbes

China Mobile to invest another $500 mln in Pakistan: Chinaview

ISLAMABAD, Feb. 13 (Xinhua) -- China Mobile Communications Corporation (China Mobile) will invest another 500 million U.S. dollars in Pakistan during the year 2009, the company's subsidiary in Pakistan disclosed on Friday.

The money will be earmarked for building new network capacity and other infrastructure, the CM Pak Ltd. (CM Pak), China Mobile's wholly-owned subsidiary in Pakistan said in a statement.

The Federal Minister for Investment, Senator Waqar Ahmed, Ambassador at large Khalil Ahmed, Advisor to the Prime Minister on Water Resources Majidullah Kamal and Chinese Ambassador Luo Zhaohui visited the head office of CM Pak and were briefed about the performance of the company.

Qian Li, Chief Executive Officer of CM Pak, known in Pakistan as ZONG, introduced the operations of the company and also informed the visitors of the failure of the company to get the (Long Distance International) LDI license despite of the approval from the Prime Minister and the cabinet.

For more on this article, please click on the following link: China Mobile to invest another $500 mln in Pakistan: Chinaview

SECP launches online company registration: The News

By Jawwad Rizvi

LAHORE: The Securities and Exchange Commission of Pakistan (SECP) has introduced online company registration in order to promote a hassle-free and paperless system.

The News has learnt that the SECP has issued an SRO 119 (I)/2009 dated February 6 for company’s registration fee for submission of documents both online and physically. In order to promote a paperless system, the SECP has fixed about half of the registration fee for online process in every category.

The SECP notified registration fee of Rs2,500 for online submission of documents for a company with nominal share capital up to Rs100,000. In case the nominal share capital crosses Rs100,000, Rs100 to Rs500 would be added to the fee.

For registration of an increase in share capital which came after the first registration of the company, the amount to be paid would be equal to the difference between the amount which would have been payable on registration of the company by reference to the increase in capital and the amount which would have been payable by reference to its capital immediately before the increase, calculated at rates given under clause 2.

For registration of any existing company, except for such companies exempted from payment of fee in respect of registration under the ordinance, the fee will be the same as for registering a new company.

For more on this article, please click on the following link: SECP launches online company registration: The News

Japan aims to assist Pakistan to boost economy: Envoy: Daily Mail

By Adnan Rafique

ISLAMABAD—Japanese Ambassador to Pakistan, H.E. Mr. Chihiro Atsumi held a meting with Federal Minister for Planning and Development here Tuesday and exchange views on regarding matters of bilateral interest, regional importance and global significance.
Makhdoom Shahabuddin apprised the Japanese Ambassador that despite economic challenges, Pakistan's economy had set its momentum in the right direction, as all key indicators were pointing upwards. He also informed that inflation had been contained, law and order situation would ultimately improve and democracy had started to function, adding that these indicators were satisfactory not only for Pakistan but also for the relevant international financial institutions.
Makhdoom Shahabuddin further stated that the Government of Pakistan accorded great importance to the economic assistance provided by the Government of Japan and pointed out that a number of opportunities existed for Japanese investment in Pakistan especially for public-private partnerships and Direct Foreign Investments (D.F.Is).

For more on this article, please click on the following link: Japan aims to assist Pakistan to boost economy: Envoy: Daily Mail

India relying on 70% outside sources to meet defence equipment: Antony: APP

NEW DELHI, Feb. 10 APP Indian Defence Minister A K Antony said on Tuesday India was relying on 70% outside sources to meet its requirement of defence equipment.

He said change in internal policies of the countries from where the equipment was imported could pose strategic problems for India.

Indigenous defence production capability is the only way to overcome this difficulty, he said while addressing a foundation‑stone laying ceremony for BrahMos Missile Integration Complex at the BrahMos Aerospace in Thiruvananthapuram, South India.

For more on this article, please click on the following link: India relying on 70% outside sources to meet defence equipment: Antony: APP

A Pakistani Attack On US Drones?: Daily.pk

Written by www.daily.pk
Tuesday, 10 February 2009 19:01

Here is a 7-point Parliament resolution authorizing Pakistan Air Force to shoot down CIA drones coming from Afghanistan and killing innocent Pakistani citizens. U.S. might expand its war into Pakistan. This is a time for concrete action. It’s now or never. If we have to then we must remove this government and install an interim technocrat based government until the situation in the country improves. We the people of Pakistan must demand these actions from this government and must not fall into the disguised rhetoric of our corrupt leaders.

It’s time Pakistan said farewell to the disastrous journey that we embarked upon right after 9/11. We must at all cost liberate ourselves from the yoke of Yankee slavery. This is the time we seek examples of other world rulers who are taking stand against U.S. hegemony. The Pakistani parliament must get together and get the following resolutions passed from the house:

1. Pakistan must pass a bill in the parliament that must authorize Pakistan Air Force to retaliate against deadly U.S drone attacks.

2. Pakistan must ask U.S. to pack up its military bases from Pakistani soil, since there was no open agreement between Pakistan government and U.S. All agreements done between Pakistan and the U.S. under President Musharraf must be made public and cancelled. If there is a need to continue with any one of those agreements with the U.S., they must be renegotiated in a manner that ensures Pakistan’s territorial sovereignty.

For more on this article, please click on the following link: A Pakistani Attack On US Drones?: Daily.pk

London emerges as leading centre for Islamic finance: The News

By Aamir Ghauri

LONDON: London has emerged as a leading world centre for Islamic finance in the last few years and despite the financial crunch provides an example how Islamic banking can provide a safer alternative to conventional financial models.

The global market for Islamic financial services rose by 37 per cent to $729bn at the end of year 2007.

In 2008, International Financial Services London’s Islamic Finance report notes that the industry has felt the influence of the credit crunch and downturn in the global economy, Sukuk issuance has more than halved and the value of equity funds has fallen.

Islamic banks, however, have been less affected than many conventional banks as they are prohibited from activities that have contributed to the credit crunch, such as investment in toxic assets and dependence on wholesale funds.

London has been consolidating its position as the key western centre for Islamic finance in 2008.

Two Islamic banks, Gatehouse Bank and European Finance House, have been granted licences bringing to five the number of fully Shariah compliant banks in the UK.

For more on this article, please click on the following link: London emerges as leading centre for Islamic finance: The News

Problems with Islamic Finance: Dawn

By Syed Imad-ud-Din Asad

ISLAMIC banking has accomplished growth rates that tremendously outpace conventional banking. While there are banking norms common to both — Islamic and western financial systems — certain norms are exclusive to Islam. Some of the Islamic restrictions render certain western banking practices and transactions void.

The main prohibition are riba and gharar. Most of the present-day Islamic scholars are of the view that riba includes both interest and usury. Gharar signifies ambiguity, uncertainty or lack of specificity in the terms of a financial contract.

As riba is prohibited, suppliers of capital become investors instead of creditors. Also, investment can only be made in permitted commodities and activities. For instance, one cannot deal in import and export of alcohol and narcotic substances. Similarly, money is not allowed to be invested in a casino.

A variety of Islamic banking instruments and transactions are available in different markets. These may be classified as equity, debt or fee based services/ products. The first includes musharaka and mudaraba; the second consists of salam, istisna, istijrar, qard, murabaha, ijara, bai-bithaman-ajil, bai-al-einah, bai-al-dayn, and tawarruq; the third comprises services based on wakala and kafala.

For more on this article, please click on the following link: Problems with Islamic Finance: Dawn

Govt to build 15-day furnace oil stock: The News

By Khalid Mustafa

ISLAMABAD: The government has decided to minimise power disruption across the country for which furnace oil stock will be increased to 10 to 15 days from existing nine days, which is not sufficient to ensure planned thermal power generation, a senior official told The News.

“For increasing furnace oil stock a decision will be taken in a meeting of the Economic Coordination Committee here on Tuesday,” he said. Overall average stock of petroleum products has already increased from 12 to 16 days.

The Pakistan Electric Power Company (PEPCO) needs 30,000 tonnes of furnace oil to run its power houses at 100 per cent capacity. Presently, the stock is available for nine days and the Ministry of Water and Power wants it to be raised from nine to 15 days. This means that reserves should be at 500,000 tonnes.

If this is ensured, then PEPCO would be able to tackle current electricity loadshedding, which has already been reduced.

For more on this article, please click on the following link: Govt to build 15-day furnace oil stock: The News

Plan for offshore oil exploration unveiled: Dawn

SINDH is the largest producer of oil and gas with 72 per cent of gas and 57 per cent of oil production in the country.

Efforts are being made to explore and exploit more onshore and offshore reserves of oil and gas in the province. The government is also planning a new hydrocarbons policy with more incentives for domestic and foreign investors.

The ministry of petroleum and natural resources has signed a number of joint exploration and production sharing agreements (EPSAs) for offshore oil exploration in the Arabian Sea touching Badin, Karachi and Thatta.

The Arabian Sea was declared as Zero Zone which comprised of Indus North, Indus X, Indus Y and Indus Z. Approximately an area of 4,170sq km was given to different multinational companies including British Petroleum (blocks U, V, and W in Indus Delta), ENI (blocks M, N and C), PETRONAS ,with partners like TOTAL 40 per cent, OMV 30 per cent, MGCL 10 per cent and subsidiary PETRONAS Carigali Pak Ltd, Tullow and OGDCL (blocks G and H.). It was claimed that an investment of $3.19 million is envisaged during the first two years of the project, but no official estimates of the blocks’ reserves have been released.

For more on this article, please click on the following link: Plan for offshore oil exploration unveiled: Dawn

Macroeconomic Conditions signal turbulence: Dawn

A.B. Shahid

THE recent monetary policy announcement by the new State Bank governor sends a clear message: that there is little in terms of improvement in the state of the economy to warrant the much demanded monetary loosening.

Based on traditional logic, the stance is correct; while fiscal, trade and current account deficits are already high there may be further slippages. First, with Federal Board of Revenue (FBR) collecting only Rs544 billion in first half of FY09, the full-year Rs1.36 trillion tax revenue target may not be met. Impliedly, public borrowing could stay high squeesing credit to the private sector, which won’t help contain the economic downswing.

Second, anticipated decline in trade deficit (courtesy falling imports) may be less than expected since: (i) export growth may decelerate due to global recession and infrastructure bottlenecks causing intermittent power and gas supply shortages; (ii) anticipated decline in oil import bill may turn out to be less than its projection.

Besides, deceleration in Consumer Price Index since September 2008 was moderate relative to Sensitive and Wholesale Price Indices, while Core Inflation Index (the peg for interest rates) remains what the governor called ‘stubborn’. According to him, ‘this signifies that demand pressures have not completely dissipated despite a slow down in economic activity.’

For once, SBP explicitly accepted that accumulation of excess demand since 2004 prepared the slope for inflation to slip uncontrollably, and in 2008 it caused multiple deficits, raised production costs all round, and blunted growth. To limit its fallout, SBP considered it expedient to continue its tight policy stance and to keep its discount rate unchanged at 15 per cent.

For more on this article, please click on the following link: Macroeconomic Conditions signal turbulence: Dawn

Trade deficit at $10.72 bln in 7 months: The News

ISLAMABAD: Trade deficit of the country was recorded at 10.72 billion dollars in the first 7 months of the current fiscal year.

According to the figures released by the Federal Bureau of Statistics, country’s exports increased by 8 percent to 10.95 billion dollars compared to the same period last year.

The imports were recorded at 21.66 billion dollars which is 5.77 percent higher than the previous year.

For more on this article, please click on the following link: Trade deficit at $10.72 bln in 7 months: The News

Britain's Islamic finance sector: Telegraph

By Martin Beckford, Religious Affairs Correspondent

The study says that the UK has by far the largest number of banks for Muslims – whose products prohibit interest payments and investment in alcohol or gambling firms – of any western country.

There are now five "fully Sharia-compliant" banks in the UK while another 17 leading institutions including Barclays, RBS and Lloyds Banking Group have set up special branches or subsidiary firms for Muslim clients.

The $18billion (£12bn) in assets of Britain's Islamic banks dwarf those of some states where Islam is the main religion, including Pakistan, Bangladesh, Turkey and Egypt.

In addition, there are 55 colleges and professional institutions offering education in Islamic finance in Britain – more than anywhere else in the world.

The growth of the UK as a centre for Islamic finance has been helped in recent years by the Government, according to the new report by International Financial Services London, which has extended tax relief on Sharia-compliant mortgages to companies and made the trade in "Sukuk" bonds easier.

For more on this article, please click on the following link: Britain's Islamic finance sector: Telegraph

Congress to consider tripling Pakistan aid soon: Kerry: Dawn

WASHINGTON, Feb 6: Within weeks, a new bill will be introduced in the US Congress which will seek to more than triple US economic aid to Pakistan, says Senator John Kerry, chairman of the Senate Committee on Foreign Relations.

In an interview to Dawn and another news outlet, Mr Kerry also assured Pakistan that no new restrictions would be imposed on US military assistance to that country. However, the existing restrictions will remain.

The committee Senator Kerry chairs will play a crucial role in passing the bill, which was introduced in the previous Congress but now has to be reintroduced. The measure already enjoys bipartisan support, the senator said.

For more on this article, please click on the following link: Congress to consider tripling Pakistan aid soon: Kerry: Dawn

Pakistan targets 130 bln rupees in T-bill auction: Reuters

KARACHI, Feb 9 (Reuters) - Pakistan's central bank will auction 130 billion rupees ($1.64 billion) worth of 3-, 6-, and 12-month Treasury bills on Wednesday.

Settlement will be due the following day, the State Bank of Pakistan said.

The central bank said in December it would auction 565 billion rupees ($7.12 billion) worth of 3-, 6-, and 12-month T-bills up to the end of March. SBPK11.

For more on this article, please click on the following link: Pakistan targets 130 bln rupees in T-bill auction: Reuters

Malaysia to help Pakistan in edible oil refining: Pakwatan

KARACHI, The Malaysian Palm Oil Board (MPOB) has agreed to extend technical co-operation to Pakistan's edible oil refiners during next five years to help the 'infant' industry maximise its yield by 94 percent. In this regard, a Memorandum of Understanding (MoU) was signed between Pakistan Edible Oil Refiners Association (PEORA) and MPOB at a local hotel on Saturday.

The deal, under which the Malaysian Board would send its technical experts every year, in May or June, to train Pakistani 'Process Engineers' in the edible oil refineries, was signed by PEORA Chairman Muhammad Hanif and MPOB Country Manager Esa Bin Mansoor.

With Port Qasim Authority (PQA) Chairman Afsar Din Talpur as chief guest, the MoU signing ceremony was attended by Malaysian Consul-General Khalid Abbasi, Ports and Shipping Director General Vice Admiral Asad Qureshi and officials from KPT, PQA and executive members of PEORA.

According to PEORA Vice Chairman A Rasheed Janmohammad, the agreement would help the refiners in Pakistan, which imports 2.5 million tons raw palm oil/refined palm oil/olien/crude soyabean oil, and produces a meagre 0.5 million tons locally to meet its 3 million tons demand, to improve their yield and ensure that their losses could not exceed from 1 percent. He said Pakistan also imports about one million ton oilseeds, which gives about 0.4 million tons soft oil.

He said since the concept of continuous edible oil refinery plant is relatively new, such technical support from Malaysia would be very instrumental in efficiently running the refinery plant in Pakistan.

For more on this article, please click on the following link: Malaysia to help Pakistan in edible oil refining: Pakwatan

Smuggled antique pottery handed over to Pakistan: APP

LONDON, Feb 09 (APP) ‑ The British government on Monday returned 198 pieces of antique pottery to Pakistan, said to be about 4,000 years old, which were smuggled to the UK two years ago.

The million dollar worth antique pieces were categorised as ‘ordinary pieces of pottery’ with a value of about 100 dollars when they were smuggled out of Pakistan via Dubai in 2007.

But they were seized by the UK’s Customs Department at Heathrow Airport.

Subsequently, the Pakistan High Commission in UK started negotiating with the British authorities for their return.

A handing over ceremony was held on Monday at the Pakistan High Commission where Director, UK Border Agency Tony Walker formally returned these invaluable antiques to High Commissioner Wajid Shamsul Hasan.

The artefacts were seized in 2007 by Custom officer Anil Rajput when the consignment arrived at the Heathrow and roused his suspicion on checking the papers.

The Custom officer, on realising that the pottery was not ordinary, seized the consignment which were then despatched to the British Museum for examination where the experts determined that the items were about 4000 years old and originated from South West Pakistan.

For more on this article, please click on the following link: Smuggled antique pottery handed over to Pakistan: APP

Pakistan's Jan trade gap narrows to $1.17 bln: Reuters

KARACHI, Feb 9 (Reuters) - Pakistan's trade deficit narrowed to $1.17 billion in January from $2.05 billion in January 2008, but rose from a deficit of $815.92 million in December, the Federal Bureau of Statistics said on Monday.

The deficit in the seven months from July through January of the 2008/09 fiscal year widened to $10.7 billion as compared with $10.4 billion in the corresponding period last year, the data showed.

Exports stood at $1.36 billion in January as compared with $1.31 billion in December and they fell 7.1 percent against January 2007.

For more on this article, please click on the following link: Pakistan's Jan trade gap narrows to $1.17 bln: Reuters

India constructing three dams in held Kashmir: The News

Khalid Mustafa

ISLAMABAD: India has started construction of three dams on the Indus River — the lifeline of Pakistan. The construction of these dams is part of the Indian plan to generate 2,060 MW of electricity.

According to the latest study titled ‘Mountains of Concrete: Dam Building in the Himalayas’, Pakistan is on the brink of water disaster and its availability would plunge to 800 cubic meters per capita annually by 2020 from the current 1,200 cubic meters. Just 60 years ago, 5,000 cubic meters of water was available to every Pakistani citizen.

Keeping in view the appalling water situation in the country with only two big water reservoirs — Tarbela and Mangla — the Indian move could prove disastrous for Pakistan.

India has already constructed and made the Baglihar power project operational at the Chenab River and it is also building more dams on the Chenab River such as Uri-1, Uri-2 projects. India plans to construct 10-20 more dams on the Chenab River alone. On the Jhelum River, India is already constructing the Kishanganga Hydropower project.

The construction of these dams in Ladakh region to produce 219 megawatt of electricity has already started in clear violation of the Indus Water Treaty and ignoring the fragile environment of Ladakh region to meet the demand of the Indian Army deployed at Siachen glacier.

Indus River has a total length 3,180 kilometres from Tibet and to Arabian Sea. It runs 404km in China and 395km in Ladakh.

This information has been faxed in a letter written by Arshad H Abbasi, visiting research fellow SDPI Islamabad to Prime Minister Yousuf Raza Gilani seeking timely action to foil the Indian move to strangulate Pakistan’s agriculture sector. He has also sent copies of the letter to federal ministers of water & power and environment.

For more on this article, please click on the following link: India constructing three dams in held Kashmir: The News

Value of textile exports plunge during 1HFY09: Alibaba

The value of local textile products fell sharply in the first half of current fiscal year primarily because of economic slowdown in the world particularly in USA and Europe-the top export markets of Pakistan.

During July-December 2008-09, the volume of the textile products export rose substantially, however, due to the eroding purchasing power of the consumers in the west, the value of these products nose-dived compared to the corresponding period of previous year.

"The financial crisis in USA and Europe has a spiral impact and Pakistani textile products are no exception to this global issue," Federal Textile Commissioner, Mohammad Idris remarked and said that even India and China saw the value of their products plunging during the period under review.

However, it is heartening to note that domestic products were able to keep their share in these market, he pointed out and stated: "It is now more about keeping the share in these markets intact than the value because of the gloomy situation, which appears to continue for the next two years."

On the other hand, exporters also blame the economic crisis in the western world as the prime factor for fetching less unit price of these products. However, the rupee depreciation helped the local exporters to make-up for the losses.

A glance on the values of the textile products showed that almost all the categories suffered in terms of a fall in their values.

The value of raw cotton plunged by 9.25 percent by fetching $975.4 per metric tonne during first six months of current fiscal compared to $1074.71 per metric tonne in the corresponding period previous year.

For more on this article, please click on the following link: Value of textile exports plunge during 1HFY09: Alibaba

ADB to provide $1.5b loan to Pakistan: The Nation

By HAQ NAWAZ submitted 2 days 11 hours ago

ISLAMABAD - Asian Development Bank (ADB) will provide US $ 300 million under multi-financing facility (MFF) to improve quality, continuity and coverage of urban services in the second tier-cities of Sindh province.
According to an agreement, signed by the government of Pakistan, Sindh government and the ADB here on Friday, the bank will give the said amount to Pakistan for the improvement of basic needs in the urban cities of Sindh.
Under this programme, over the next 10-years, the multi-financing facility will finance for improving basic urban services (water supply, sanitation, drainage and solid waste management) for nearly 4 million people of 20 towns in Sindh.

For more on this article, please click on the following link: ADB to provide $1.5b loan to Pakistan: The Nation

Pakistan expected to get $750m IMF loan in March: Daily Times

By Sajid Chaudhry

ISLAMABAD: Pakistan is likely to receive a $750 million loan from the International Monetary Fund (IMF) by the end of March, after the successful completion of the first review of the two parties’ standby agreement.

Sources in the Finance Ministry told Daily Times the first review of the standby agreement with the IMF would be conducted in Dubai between February 14 and 24.

They said the key performance benchmark was a budget deficit at or below 4.2 percent of the Gross Domestic Product (GDP) during the current fiscal year.

The other important benchmark, they added, was to maintain State Bank borrowing at Rs 258 billion at the end of each quarter.

They said Pakistan’s budget deficit had been estimated at around two percent of the GDP, much less than the target agreed upon with the IMF. Similarly, they added, the State Bank borrowing had been maintained at the agreed upon level so both conditions had been met successfully.

For more on this article, please click on the following link: Pakistan expected to get $750m IMF loan in March: Daily Times