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

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

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

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

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

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

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

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

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

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

What does this statement by the army imply?

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

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

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

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

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

The deficit was $1.04 billion in August.

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

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Australia doubles aid package for Pakistan: Brisbane Times

MATT WADE

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

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

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

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

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

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

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

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

Strings may force Pakistan to reject US aid: Peninsula

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

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

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

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Are Development Dollars in Pakistan Being Well Spent?: Time

By Ken Stier

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

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

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

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

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

By Saeed Shah in Islamabad

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

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

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

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

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

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

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

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

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

By Anwar Iqbal

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

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

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

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

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

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

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

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

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Bolivia buys six Pakistan-made aircraft: Dawn

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

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

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

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

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

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

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Umpires say sorry to Umar: The News

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

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

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

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

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

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

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Pak troika in rigging row: Statesman

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

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PCB to push for video referrals in ODIs: The News

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

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

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

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

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

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

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

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