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.

For more on this article, please click on the following link: World Bank to consider US$250Mln loan for Pakistan: Pakistan Times

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.

For more on this article, please click on the following link: India quits IPI pipeline deal, says Pak envoy: Daily Times

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

Pakistan-China sign $1 billion accord: Dawn

ISLAMABAD: Pakistan and China have signed a $1 billion accord to construct 12 dams in Pakistan in all the four provinces.

A Chinese import/export bank would furnish $700 million loans, while the remaining $300 million would be taken care of by the Planning Commission (PC).
Sources say WAPDA had prepared a feasibility report, according to which 650,000 acres of land would be brought under irrigation. An MOU has been signed in this regard between WAPDA and Axiom Bank (import/export) of China.

For more on this article, please click on the following link: Pakistan-China sign $1 billion accord: Dawn

"Pentagonisation" of Pakistan!: The Nation

The speed at which the US is being allowed to spread its tentacles in Pakistan is simply alarming. There has been a spate of rumours regarding the unquestioned expansion of the US embassy in Islamabad with the prospect of stationing a fair number of marines in the federal capital so much so that China is reported to have raised objections to the prospect. Though denied by the foreign minister of Pakistan at one level, there have also been reports that the Chinese fears would be addressed in this regard. It is like Pakistan is being systematically converted into becoming an extension of Pentagon!

There are good reasons for the ruling conglomerate to be doing so. In the first instance, the PPP leadership owes it to the US to be residing in the corridors of power today. Raising the catchy and marketable slogan of "reconciliation", the PPP leadership cleverly manipulated the cards it had to have the National Reconciliation Ordinance (NRO) promulgated by a sitting dictator, thus granting it immunity from all cases that were registered against it irrespective of their gross seriousness. But, this right to rule Pakistan could not have come without its pound of flesh. What we are witnessing today in terms of a gradual ceding of the writ of the state to outside players, most notably the US, is an unsophisticated manifestation of this compromise. The problem is that, once set into motion, this slide to subservience is difficult to contain either by way of its nature or its attending consequences which could be extremely damaging for Pakistan's inherent national interests. The reported statement of Mr Zardari that Pakistan would further expand the theatre of war in the restive tribal areas if it were given more funds is reflective of a servile mindset that is tuned to furthering the interests of its masters irrespective of the damage it may accrue to Pakistan's sovereignty considerations.

For more on this article, please click on the following link: "Pentagonisation" of Pakistan!: The Nation

Ugly American redux: U.S. in Pakistan: Globe and Mail

Saeed Shah

After Pakistani television broadcast image of the homes of so-called U.S. “spies,” bloggers called on people to kill the occupants. The TV programs insisted they were CIA, FBI or private-security operatives – and the Pakistani media's separate outing of a U.S. aid worker as a secret agent took the rising vilification of the United States to a new level. According to the U.S. embassy, American lives are now being put at risk.
For weeks, the lively Pakistani media have overflowed with dark stories of undercover American agents operating in the country, tales of a huge contingent of U.S. Marines planned for the embassy and private security personnel running amok. Armed Americans have supposedly harassed and terrified residents and police officers in Islamabad and Peshawar.
The country is reacting to what many see as an “imperial” American presence, echoing Iraq and Afghanistan, with Washington dictating to the Pakistani military and the government, analysts say. Polls show that Pakistanis regard the United States, formally a close ally and the country's biggest donor, as a hostile power. Even the Pakistani government has joined the criticism.
Much of the hysteria was based on a near $1-billion (U.S.) plan to massively expand the embassy in Islamabad, signalling to Pakistanis that the United States plans an extensive and long-term presence in the country.
The U.S. mission put on three briefings for Pakistani journalists last month to try to dampen the highly charged stories, which could undermine U.S.-Pakistani relations just as Washington is preparing to triple civilian aid to Islamabad, to $1.5-billion a year. During this past weekend, an embassy spokesman had to deny suddenly renewed stories that the United States was behind the mysterious death of former military dictator General Mohammed Zia-ul-Haq in 1988.

For more on this article, please click on the following link: Ugly American redux: U.S. in Pakistan: Globe and Mail

Anti-Americanism rises in Pakistan over U.S. motives: Miami Herald

By SAEED SHAH
McClatchy Newspapers
ISLAMABAD, Pakistan -- For weeks now, the Pakistani media have portrayed America, its military and defense contractors in the darkest of lights, all part of an apparent campaign of anti-American vilification that is sweeping the country and, according to some, putting American lives at risk.
Pakistanis are reacting to what many here see as an "imperial" American presence, echoing Iraq and Afghanistan, with Washington dictating to the Pakistani military and the government. Polls show that Pakistanis regard the U.S., formally a close ally and the country's biggest donor, as a hostile power.
U.S. officials have either denied the allegations or moved to blunt the criticism, but suspicions remain and relations between the two countries are getting more strained.
The lively Pakistani media has been filled with stories of undercover American agents operating in the country, tales of a huge contingent of U.S. Marines planned to be stationed at the embassy, and reports of Blackwater private security personnel running amok. Armed Americans have supposedly harassed and terrified residents and police officers in Islamabad and Peshawar, according to local press reports.
Much of the hysteria was based on a near $1 billion plan, revealed by McClatchy Newspapers in May and confirmed by U.S. officials, to massively increase the size of the American embassy in Islamabad, which brought home to Pakistanis that the United States plans an extensive and long-term presence in the country.
The American mission in Islamabad was forced to put on three briefings for Pakistani journalists in August trying to dampen the highly charged stories, which could undermine U.S.-Pakistani relations just as Washington is preparing to finalize a tripling of civilian aid to Islamabad, to $1.5 billion a year. Over this last weekend, an embassy spokesman had to deny suddenly renewed stories that the U.S. was behind the mysterious death of former military dictator General Zia ul Haq back in 1988.
Pakistan is a key priority for the United States because of its nuclear weapons and its potential usefulness in taking on al-Qaida within its borders and ending the safe haven for the Afghan Taliban.
"I think this recent brouhaha over the embassy expansion has been difficult to beat back," said Anne Patterson, the U.S. ambassador, in an interview last week. "I can't really understand what's behind this because what we're doing is actually quite straightforward. We've tried to explain it carefully to the press, but it just seems to be taken over by conspiracy theories."

For more on this article, please click on the following link: Anti-Americanism rises in Pakistan over U.S. motives: Miami Herald

Malaysian-Based Renexus To Build 160,000 Houses In Pakistan: Bernama

KUALA LUMPUR, Aug 20 (Bernama) -- Renexus, a world renowned Malaysian construction company, has submitted a formal proposal to the Pakistan Government for the construction of 20,000 low-cost houses in each of the eight major towns.

Pakistan High Commissioner to Malaysia Lt-Gen (Rtd) Tahir Mahmud Qazi said the state land in major towns -- Lahore, Rawalpindi, Multan, Bahawalpur, Faisalabad, Sargodha, Gujaranwala and Sialkot would be utilised to build quality houses through private sector participation and financial institutions.

Describing Renexus' proposal as the beginning of a mutually beneficial cooperation between the two countries in the housing sector, Qazi invited other Malaysian companies to take full advantage of the Pakistan government's vision to provide decent housing to low-and middle-income families.

"The supply and demand gap in the housing sector will be met by public and private partnerships wherein the government will serve as the enabler, regulator and facilitator," he said in a statement.

For major investments, Qazi said it would be tapped from the private sector, both local and foreign and financial institutions.

For more on this article, please click on the following link: Malaysian-Based Renexus To Build 160,000 Houses In Pakistan: Bernama

Pakistan's forex reserves surge to $12.96 bln: Forbes

KARACHI, Aug 20 (Reuters) - Pakistan's foreign exchange reserves jumped by $1.11 billon to $12.96 billion in the week that ended on Aug. 15 as a new tranche of an IMF loan arrived, a central bank spokesman said on Thursday.

The State Bank of Pakistan's reserves rose to $9.47 billion from $8.36 billion a week earlier, while reserves held by commercial banks were unchanged at $3.49 billion, said central bank chief spokesman Syed Wasimuddin.

'Reserves rose because of the $1.2 billion received from the International Monetary Fund during the week,' he said.

For more on this article, please click on the following link: Pakistan's forex reserves surge to $12.96 bln: Forbes

China to Build Dam in Pakistan’s Northern Area: Khaleej Times

ISLAMABAD — Pakistan and China have signed a memorandum of understanding for construction of Bunji dam in Northern Areas that will produce 7000 megawatt power.

The agreement was signed by Saleem Mandviwala on behalf of Pakistan’s Ministry of Water and Power and Yang’an, Chairman of China’s Three Gorges Project Corporation. The ceremony was also attended by President Asif Ali Zardari, who is currently visiting China.

Earlier, addressing a business forum in Zhejiang, President Zardari offered transit facility to Chinese companies, saying Pakistan’s ports would benefit Chinese firms by giving them easy access to outside world. He sought Chinese assistance in hydel, thermal and solar power generation and invited Chinese companies to carry out feasibility studies.

For more on this article, please click on the following link: China to Build Dam in Pakistan’s Northern Area: Khaleej Times

Pakistan’s new satellite PAKSAT-IR to be launched in 2011: APP

KARACHI, Aug. 24 (APP): Pakistan’s new and powerful communication satellite PAKSAT-IR will be launched in the year 2011.This was stated by the General Manager PAKSAT International, Amir Hussain, here on Monday.In a statement he said that the countdown has begun towards this launch and that its development work is progressing with full swing.

It was pointed out that the PAKSAT-IR will replace the existing satellite PAKSAT-I at 38 degree East, which will remain operational till the end of 2011 ensuring service continuity to current PAKSAT customers till PAKSAT-IR becomes operational.

For more on this article, please click on the following link: Pakistan’s new satellite PAKSAT-IR to be launched in 2011: APP

Pakistan launches new remittances order: Gulf Times

The State Bank of Pakistan has announced ‘Payment and Settlement’ systems of home remittances under Pakistan Remittances Initiative (PRI), the central bank said in a note yesterday. The SBP note carries objectives of establishing the automatic delivery of home remittances in the beneficiary’s account and over the counter system in real time; and generating confirmation by text message to the remitter and the beneficiary.

For more on this article, please click on the following link: Pakistan launches new remittances order: Gulf Times

Pakistan to begin co-production of Falco UAV: Flight Global

By Greg Waldron

The Pakistan Aeronautical Complex (PAC) is about to begin the co-production of Selex Galileo's Falco unmanned air vehicle at its facilities in Kamra.

The Falco will be the first military UAV to be produced in Pakistan, says the nation's air force, which expects the first example to be rolled out in the "near future". The type will be used primarily for surveillance missions, says air force chief of staff Air Marshal Farhat Hussain.

PAC engineers have spent two years on the project, which represents a "major step toward the goal of self-reliance in military aviation", says Hussain. "The Falco UAV will greatly enhance the air force's operational capability," he adds.

For more on this article, please click on the following link: Pakistan to begin co-production of Falco UAV: Flight Global

Are we paying too much for cell service?: MSNBC

By Dan Richman

msnbc.com contributor

updated 8:57 a.m. ET Aug. 27, 2009

Do Americans overpay for cellular service?

Six consumer-oriented organizations answered a forceful "yes" in a July federal filing with the Federal Communications Commission. Backing their assertions is an international study concluding Americans pay the world's highest cell phone rates. And a U.S. senator is examining whether text messaging is priced out of line.

The cellular industry is vigorously refuting assertions it's anticompetitive, in pricing or other respects.

"It's not business as usual for the cellular industry," said Charles Golvin, a principal analyst for Forrester Research. "A number of vocal inquiries are being raised these days about many issues: handset exclusivity, phone applications, messaging prices and pricing in general."

Paul Orchard, 33, a self-described "cellular power-user" living in Seattle, said he sees American cellular service as reasonably priced overall, but limited.

"I've researched it thoroughly, and even though good prices can be found, some aspects of our service aren't as good as elsewhere in the world," he said. "Most countries charge only for outgoing calls, not incoming calls, and some allow minutes to be bought and sold by individuals. Our service is less flexible, which makes it not as good a deal."

For more on this article, please click on the following link: Are we paying too much for cell service?: MSNBC

Pakistan in US missile refit row: BBC

Washington has accused Pakistan of illegally modifying a US-supplied anti-ship missile, US media say.

The US believes the Harpoon, sold to Pakistan by the Reagan administration, has been altered for land-based use, the New York Times reported.

Islamabad says the accusations are "incorrect and based on wrong intelligence", Pakistani media say.

The US protested to Pakistan's PM in June, the Times said, fearing increased tension with Pakistan's rival, India.

'Secret test'

The Times quoted a senior US administration official as saying: "The focus of our concern is that this is a potential unauthorised modification of a maritime anti-ship defensive capability to an offensive land-attack missile."

The paper said it had been told there was a secret missile test on 23 April.

For more on this article, please click on the following link: Pakistan in US missile refit row: BBC