International Karachi, Sunday, June 19, 2011, Rajab-ul-Murajjab 16, Price Rs12 Pages 8
Pir Mazhar says no one is immune from critique See on Page 2 Economic Indicators Forex Reserves (11-June-11) Inflation CPI% (Jul 10-May 11) Exports (Jul 10-May 11) Imports (Jul 10 - May 11) Trade Balance (Jul 10 - May 11) Current A/C (Jul 10- May 11) Remittances (Jul 10 - May 11) Foreign Invest (Jul 10-May 11) Revenue (Jul 10 Apr 11) Foreign Debt (Mar 11) Domestic Debt (Apr 11) Repatriated Profit (Jul- Apr 11) LSM Growth (Apr 11)
GDP Growth FY10E Per Capita Income FY10 Population
$17.52bn 14.00% $22.45bn $36.55bn $(14.11)bn $205mn $10.10bn $1.74bn Rs 1147bn $59.54bn Rs 5617bn $649.9mn 0.88% 4.10% $1,051 176.37mn
Portfolio Investment SCRA(U.S $ in million)
246.04 1.02 0.30 2859
Yearly(Jul, 2010 up to 17-Jun-2011) Monthly(Jun, 2011 up to 17-Jun-2011) Daily (17-Jun-2011) Total Portfolio Invest (11-Jun-2011)
NCCPL (U.S $ in million)
FIPI (17-Jun-2011) Local Companies (17-Jun-2011) Banks / DFI (16-Jun-2011) Mutual Funds (17-Jun-2011) NBFC (17-Jun-2011) Local Investors (17-Jun-2011) Other Organization (17-Jun-2011)
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Rs0.141tn nodded for Cabinet Div
CIA to be stonewalled in Pak: Malik
See on Page 8
Commonman will have his day: PM
See on Page 8
Syria blasts village near Turkish border
See on Page 8
ISLAMABAD: Pakistan’s Ambassadors designate to Singapore, Iran and Tajikistan called on President Asif Ali Zardari at Aiwan-e-Sadr.-APP
Mandviwala sees $10bn NA OKs over Rs500bn for Defence Division Pak-Ind ISLAMABAD: The National cut motions. but was a burden on national Assembly Saturday approved Opening the debate on cut exchequer also. trade 20 demands for grants worth motions, PML-N Central leader PML-N lawmaker, Zahid Rs0.141 trillion for the Cabinet Division with majority of votes while rejecting 144 cut motions presented by the Opposition. Finance Minister Dr Hafeez Shaikh presented the demands of Cabinet Division in the House while the Opposition members Shireen Arshad Khan, Tahria Aurangzaib, Malik Shakir Basir, Raja Muhammad Asad, Saira Afazal, Nuzhat Sadiq, Asia Nasir, Anusha Rehman, Khalida Mansoor, Shahnaz Salim, Parveen Masood Bhatti, Arshad Laghari, Chaudhary Saood Majeed, Qudsia Arshad and Akhtar Kanju submitted their
Sardar Mehtab Ahmed Khan Abbasi alleged that Cabinet Division was not working properly under rules and regulations. He said that sufferings of people have increased manifold due to poor performance of the division. He criticised Capital Development Authority (CDA) for becoming the den of corruption and suggested that a high powered committee should be formed to look into its affairs. He said that contracts were being awarded to blue-eyed people by violating the rules and regulations while the authority was bringing not only a bad name to the government
Hamid said that size of federal cabinet was too large as compared to the other countries. He alleged that performance of federal cabinet was not up to the mark despite 45 ministers and demanded that the size of cabinet should be reduced keeping in view the current crisis situation. PML-N lawmaker Shahid Khakan Abbasi said that it was ironic that the government has allocated Rs98 million for purchasing helicopters while a meager amount of Rs0.4 million has been earmarked for making Urdu our official language. See # 3 Page 7
Lead manager, book runner(s) wooed for PPL’s 2nd public offer ISLAMABAD: The Privatisation Commission (PC) is inviting Expressions of Interest (EOI)s from Lead Manager/Book Runner(s), for the Secondary Public Offering of Pakistan Petroleum Limited (PPL) approximately 2.5 per cent (21,105,688) shares through domestic stock exchange(s). Presently, GoP holds 70.56 per cent of PPL shares. Pakistan Petroleum Limited (PPL) is a frontline supplier in energy sector, contributing almost 25 per cent of the country's total natural gas supplies besides producing crude oil, natural gas liquid and liquefied petroleum gas. Its proven recoverable reserves are 2.87 Tcf of natural gas, 14.8bbl of oil/NGL and 316,000 tonnes of LPG.
PPL is listed on all three stock exchanges in Pakistan. Lead Manager/ Book Runner (s) who has recognised equity sales and distribution capabilities and demonstrable track record of successfully managing and executing similar transactions will manage the Transaction. In addition to the public offer for sale, the appointed Lead Manager/Book runner(s) may recommend other suitable capital market structural alternatives under the prevailing capital market conditions in order to maximise value extraction for GOP and bring long term benefits to PPL. The interested Parties (IPs) have been advised to submit EOIs along See # 4 Page 7
Karzai confirms US in talks with Taliban KABUL: The United States is in contact with the Taliban about a possible settlement to the near decade-long war in Afghanistan, Afghan President Hamid Karzai said on Saturday, the first official confirmation of US involvement in negotiations. Karzai said that an Afghan push toward peace talks had not yet reached a stage where the government and
Says solar energy to
No strike at field offices, FBR clarifies ISLAMABAD: A spokesperson of the Federal Board of Revenue (FBR) Saturday said no strike was being observed at field offices. FBR spokesperson Riffat Shaheen Qazi in a statement issued here clarified reports appeared in a section of the press that FBR officials at some field locations have gone on strike to press their demands for upgradation of posts of Income Tax Inspectors to BS 16. She said the FBR management had it verified that no officials were on strike at the reported field formations. There was normal working there. The employees, she said, had also strongly refuted such news or rumours of strike and reiterated their commitment to achieve the assigned revenue targets during the current month. See # 7 Page 7
Power demand jumps to 18,000MW
insurgents were meeting, but their representatives had been in touch. "Peace talks are going on with the Taliban. The foreign military and especially the United States itself is going ahead with these negotiations," Karzai said in a speech in Kabul. "The peace negotiations between (the) Afghan government and the ISLAMABAD: The present See # 5 Page 7 demand of electricity reached 18,000 megawatt, while the country's generating capacity is 13,240 megawatt resulting in a shortfall of 4,760 megawatt. According to Pakistan Electric Power Company, the reason behind the current shortfall is the reduction in the prodomestic users soon duction of electricity the ment and workers union would soon Independent Power Producers reach an amicable agreement to end (IPPs) due to the shortage of oil the crisis. and gas supply. Earlier, Farooq Sattar of Muttahida A private channel reported as Qaumi Movement (MQM) urged the the electricity demand goes up government to constitute a committee in Lahore, an increase has also comprising federal ministers and rep- occurred in the unscheduled resentatives to resolve the KESC load shedding. The city is facissue. ing a load shedding of 10 to 12 He said," At the time when we are hours a day. talking about budget and economic The scheduled electricity load management, it is imperative that we shedding in Karachi is 10 hours paid heed to the energy issue that is but the power has been suspended for 14 hours a day in the city. vital for industrial growth". See # 8 Page 7 See # 6 Page 7
KESC issue shouldn't be politicised: Qamar ISLAMABAD: Minister for Water and Power Syed Naveed Qamar Saturday said the government was making all out efforts to resolve the issue of Karachi Electric Supply Company (KESC), which should not be politicised. Responding a Point of Order raised by Parliamentary Leader of MQM Dr Farooq Sattar, Naveed Qamar said that the Prime Minister had already taken notice of the matter and various meetings have been held to resolve it amicably. He hoped that the KESC manage-
ISLAMABAD: Pakistan and India can increase trade volume up to $10 billion by removing barriers and reducing additional costs and also reduce dependence on other global sources of trade which are relatively costly. Chairman of Board of Investment (BOI) Saleem H Mandviwala this said during a meeting with Indian Commerce Minister Anand Sharma on the sidelines of International Economic Forum in St Petersburg. The BOI Chairman on a three-day visit to Russia to attend the Forum, said a message received here from St Petersburg on Saturday. See # 2 Page 7
Case against Rangers party in-charge on cards
Sarfaraz case challan in ATC's court KARACHI: The challan in the case of unarmed Sarfaraz Shah's killing by Rangers personnel was presented before an Anti Terrorism Court (ATC) on Saturday, local media reported. Public Prosecutor, Irshad Iqbal Cheema submitted the challan which includes statements of 46 witnesses, two of them eye witnesses. Fourteen pieces of evidence in connection with the case have been gathered including a weapon, blood-soaked clothes (of Sarfaraz Shah) and a cell
phone belonging to one of the Rangers personnel. On the other hand the two cases against Sarfaraz Shah have been discarded while a fresh case of carrying illegal arm against the Rangers' part in-charge under Section 13-D has been registered. According to police, on Wednesday, June 8, Sarfaraz Shah was shot at and then left to die by the Rangers personnel in the Shaheed Benazir Bhutto Park within the jurisdiction of See # 1 Page 7
Some departments to stay with Fed: Hina Khar
Provinces-bound ministries slected depts to get funds ISLAMABAD: Minister of State for Foreign Affairs and Economic Affairs Division Hina Rabbani Khar Saturday told the National Assembly that additional funds had been allocated for some departments of the ministries being transferred to provinces under 18th Amendment. Winding up debate on cut motions about the Cabinet and Establishment Division, Hina Khar said the 18th Amendment was passed by the Parliament and the ministries were transferred to the provinces with consultation of the political parties. However, some of their attached departments would remain with the federal government under the decision of 18th Amendment Implementation Commission. She said some members of the National Assembly (MNAs) had questioned the
large size of Cabinet during the budget debate which was wrong. She clarified that presently there were only 29 federal ministers, nine ministers of state, four advisors and three special assistants to the Prime Ministers and no one else was taking such benefits. She said that a question was also raised in the House that the developing countries were minimising their cabinet expenditures. It is a matter of pleasure that Pakistan is also among such countries with cutting its expenditures by 18 per cent reducing its Cabinet Division budget from Rs 224 million to Rs180 million. The Minister of State said that the basic reason of increase in expenditures of the Cabinet Division was raise in the salaries of government employees.-APP
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Sunday, June 19, 2011
Pir Mazhar says no one is immune from critique
LAHORE: Poor nomadic children wash their clothes in rainwater accumulated at roadside on Saturday. -Online
KPT terminals now able to handle 12.5m draft vessels KARACHI: Karachi Port Trust, in line with rising shipping demands, has enabled container terminals located at Karachi harbour to handle ships of draft 12.5 meters. It is a quantum leap and is bound to provide enormous benefits to ship owners who could now avail discounts through deployment of mother vessels and can also take the benefits of economy of scales. Karachi Port Trust is continuously working to achieve a depth of 14 meters which is the maximum for the vessels calling in the region. Besides this, KPT has taken the initiative to reduce port charges for regular caller vessels. KPT has also introduced a special tariff for Pakistani flag vessels and a special port tariff for employing Pakistani Officers and Crew. The port authority has successfully negotiated an unprecedented reduction in the Karachi Dock Labour Board Cess charges by 20 percent. The evening gathering was hosted to mark the deepening of terminal draft to 12.5 meters which was well attended by
official of various sector from ports and shipping industry. Speaking on the occasion the chief guest, Chairperson KPT, Mrs. Nasreen Haque said that the current trend of revamping and modernizing ports and port related facilities has become a global imperative. "We at KPT are acutely aware of this phenomenon and endeavour diligently to keep pace with it, she added. She stressed upon the singular interest which centres around the quick turnaround and ability to match the ever deepening draft of modern post Panamax ships and that KPT under her watch has along bee cognizant of this vital development which has become an integral part of our conceptual vision. Presenting the statistics she said that the cargo handling by KPT in 2004-2005 was over 28 million tonnes while in 2009-2010 it rose to 41 million tonnes showing a whopping increase of more than 45%. Haque said that KPT handled similarly 0.9 million tonnes of con-
tainers (TEU) in 2004-2005 which grew to over 1.47 million tonnes in 2009-2010. She said further that our progress does not end here but the competent services and facilities has led to an increase in ship calls from 1768 ships in 2004-2005 to 2146 ships in 2009-2010 and similarly gross registered tonnage (GRT) of ships has increase from 34 to 55 million during the same period. With regards to the deepening of Karachi Harbour, the chairperson termed the deepening of two meters as a milestone achievement and vowed to keep the trend in continuum foreseeing shipping demands. She said that this 12.5 meters depth will allow 300 meters length over all (LOA) ships to call on Karachi Port. She said opined that in line with our set goals we are forging ahead and will be able to welcome deeper draft vessels in 6 weeks time which was well applauded by the shipping community gathered on the occasion to conclude the proceedings of the day. NNI
NBP’s human resourcing sets some new standards KARACHI: Considering the importance of inclusion of young blood in different functional areas of the Bank, NBP has hired young, energetic and fresh graduates as Management Trainee Officers (MTOs) under the umbrella of its Management Trainee Program. The newly hired Management Trainees have joined General Banking, Human Resource, Information Technology and Audit. With the current induction of 256 Management Trainees, the Bank has so far hired 1,400 plus high caliber business graduates on merit through rigorous selection process under the auspices of the Institute of Bankers Pakistan. Dr Mirza Abrar Baig, Group Chief Human Resource
Management & Administration while addressing the new inductees of Batch XIV under the Management Trainees program said that the team work and positive attitude are at the heart of career building efforts of any young graduate. These two elements will help in achieving goals and meeting the challenges to come, he said. " Like any other progressive and dynamic corporate entity NBP is also strengthening its employee base in line with best international HR practices. We are focused on capacity building of the bank through induction of high caliber talent from the market and strengthening the functional areas after their comprehensive training. This
will help improve the customer service and internal controls in the bank going forward. Dr. Abrar encouraged the induction of females as Management Trainees through open competition and assured that female empowerment shall continue to be substratum of NBP policy", he said. NBP possess a progressive development plan for high caliber business graduates who want to make their career in banking, he said. He said that through its Management Trainees Program the Bank strives to tap young and dynamic talent and looks forward to impart all the desired capabilities to groom them into a pool of talented future leaders and growth engines for the Bank. NNI
FAISALABAD: People enjoy at the Chenab River side during pleasant weather on Saturday. -Online
PTCL takes 1LINK into corporate customer's portfolio KARACHI: PTCL turned another milestone by the entry of 1LINK (Guarantee) Limited in its corporate customer's portfolio. In this regard, PTCL will provide Data Centre services, MPLS connectivity for 30+participant banks and long-haul connectivity. 1LINK (Guarantee) Limited is a consortium of major banks that owns and operates the largest representative shared financial services network of Pakistan. The synergy of financial institutions working together for a common goal has steadily increased the strength and services of 1LINK (Guarantee) Limited. 1LINK (Guarantee) Limited has become a widely acknowledged brand with an increasing number of member banks. The company is serving as a catalyst for the development of e-Banking in the country. PTCL, the largest telecommunication service provider in the country is pleased to provide this prestigious institution a bouquet of its services. These services offer secure, reliable and integrated end to end connectivity solutions to cater 1LINK's requirements. PTCL further aspires to equip 1LINK (Guarantee) Limited with its state of the art services. The agreement signing ceremony was held at PTCL's Data Centre, CTHBuilding, I. I. Chundrigar Road, Karachi on June 16, 2011. The event was graced by the presence of Chief Executive Officer Mr. Khayyam Mehmood Butt and Vice President Head of Technology & Operations Mr. Akber Sultan from 1LINK Guarantee Limited, Senior Executive Vice President (South) Mr. Abdullah Yousef, Executive Vice President CS&PD Mr. Niaz .A. Malik, General Manager Corporate Sales Mr. Kamran Mehmood, Senior Manager Corporate Sales Mr. Salman Saad Khan and Key Account Manager Mr. Javaid Bhatti from PTCL. SEVP BZS Mr. Abdulla Yousef said "PTCL is heavily investing in ICT assets on behalf of our customers so that they can focus on their core competencies. PTCL is deeply committed to provide technology of international standards to Government, Financial and Enterprise markets so that it can play a major role in the development of the country". -APP
KARACHI: Sindh Education Minister, Pir Mazharul Haque has said that the provincial government has allocated an amount Rs7 billion in the annual budget for education besides introducing a few reforms in education sector. Addressing at a dinner hosted by local entrepreneur Hanif Gohar to honor business leader and President, Pak-India Chamber of Commerce and Industry, S M Muneer at a local hotel wherein President, Pakistan Businessmen and Intellectuals Forum (PBIF), Mian Zahid Husain and Chairman, Korangi Association of Trade and Industry, Syed Johar Ali Qandhari were the guests of honor, minister said that his government is making various measures to improve standard of government schools in the province. He pointed out that during democratic regime a total of 1,100 ghost schools were detected and their premises have been vacated from local landlords who made them their 'Auta'aq'. He stressed the need to continue democratic process and those generals who broke the constitution should be taken to task. "The nation should hang those generals who dare to break Pakistan 's constitution", minister said adding that no one has immunity from criticism whether they are generals or politicians. While paying glowing tributes to S M Muneer for his services to the business community and general masses he invited business representatives to his native city Dadu where Muneer would be honored by the residents of Dadu and present him the key of the city. Speaking on the occasion the President, Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Senator Haji Ghulam Ali said that the business community has saved Pakistan from default by continuing industrial activities and generating huge revenue to run the government but it's a pity that present government is not further squeezing businessmen for more taxes but strangulating them in order to destroy the local industry and creating more and more unemployment.
Citing the example of present government of Turkey and its Prime Minister, Tayyiap Erdogan who by giving business community top priority, has made Turkey Europe's most progressive economy. He lamented the government for fighting USA 's so-called war on terror, said that we are still looking towards USA without realizing the fact that USA is the biggest enemy ofPakistan . S M Muneer while speaking on the occasion categorically rejected the imposition of sales tax on import of machinery and said that business community would never accept it and fight its levying until the government withdraws it. He expressed his sheer concern over the deteriorating law and order situation and worsening condition of trade and industry due to uncontrollable load-shedding and power outages due to ongoing confrontation between KESC management and unions. He said that Karachi 's situation has now become unbearable and government should immediately take stringent action to restore power supply and maintain law and order. Mian Zahid Husain has expressed his dismay over curtailing development budget under PSDP (Pakistan Special Development Program). "Government should not compromise with the most important sector in the budget as only development budget can ensure trade and industrial activities in the country. He said that FBR should bring more and more people into tax net but it should be through proper check and balance. Johar Ali Qandhari emphasized that education sector should have been given first priority in the budget. He showed dismay over government's decision not to bring agriculture sector into tax net. He pointed out that agri-sector has paid only a meager amount of Rs300 million. "I am sure that this amount is generated by Korangi Industrial Area generates on daily basis". Vice President, FPCCI, Khalid Tawab, Mirza Ikhtiar Baig, MPA, Amanullah Masood and Hanif Gohar also spoke on the occasion. NNI
PMN, IMSciences, ink MoU to set up academic linkages ISLAMABAD: The Pakistan Microfinance Network (PMN) and Institute of Management Sciences (IMSciences), Peshawarhave signed a Memorandum of Understanding, initiating the PMN Academic Linkages Program at the prestigious university. The Memorandum was signed by Syed Mohsin Ahmed, CEO of PMN, and Dr. Nasser Ali Khan, Director of IMSciences, marking the beginning of a collaborative relationship between the two organizations. In the MoU, PMN agrees to share microfinance data and opportunities with IMSciences students, where they will be informed of projects, internships and job vacancies at all PMN member organizations. IMSciences will reciprocate by informing PMN of applicants for jobs and projects and allow microfinance material to be displayed and distributed on the campus. The Academic Linkages Initiative by PMN is part of the Network's capacity building objective. Since its inception, capacity building has been one of the Network's primary concerns, taking into account both the training and non-training needs of its members. Building academic linkages will allow PMN to draw quality human resource and build knowledge platforms through contributions from both the practitioner and academic realms. The two organizations will also encourage an exchange of dialogue and information by facilitating research forums and participating at lectures and conferences arranged by the other. IMSciences will coordinate with PMN in inviting guest speakers on microfinance related subjects to the campus.
PMN collaborates with practitioners to collate and compile discourse on microfinance, adaptable across business programs in the country. Inserting a body of knowledge at the level of the academic institution will translate into a healthier turn out of interns, employees, researchers and instructors for the industry in the future while increasing options for the students and faculty. PMN is an association of 26 retail microfinance providers (MFPs) and represents approximately 95% of the microfinance market in Pakistan. It is positioned to engage with and facilitate the stakeholders in the industry and focuses on serving as an information hub, promoting an enabling environment and building the capacity of stakeholders. The Institute of Management Sciences, Peshawar, is an innovative, and enterprising business school dedicated to providing management education based in cutting-edge research and comprehensive training. Unlike conventional academic institutes, IMSciences broadens its educational focus in response to new trends in the developing field of management. Based on the social values of integrity, honesty, professional excellence and a broad vision of life, the Institute aims to provide educational experience that transforms its students into business leaders at par with international managers, executives, and entrepreneurs. Since its inception in 1995, the school's academic rigor and avant-garde approach to management education have produced alumnae that shape the world of business at regional, national, and international level. NNI
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Sunday, June 19, 2011
“Very slow� live cruise show a hit on Norwegian TV
Google backed Xunlei postpones up to $200mn Nasdaq IPO
HONG KONG: Xunlei Ltd, a Chinese Internet platform company in which Google Inc has a small stake, decided to postpone its initial public offering orn out by a fast-paced life and show running on the NRK2 channel. They were informed about the live- of up to $200 million in the faster-paced television shows but "It is the opposite to everything else on broadcasting plan by mail and in meetings United States because of unfalack a vacation budget? Take a TV -- that's why it stands out and why, after boarding in Bergen on Thursday. vorable market conditions, IFR five-day cruise along Norway's scenic apparently, people want to watch." "Some say it's like watching paint dry but reported on Friday, quoting a fjords, all free and streamed live on Preliminary viewing data is encouraging, it's so fun to sit in the master control room Norwegian public television. Moeklebust told Reuters, with 1.3 million and mix the cameras," said Moeklebust, For 8,040 minutes straight -- including of Norway's 4.9 million residents at least adding that 22 NRK crew were aboard the all the boring bits -- viewers can follow the "stopping by" NRK2 between 8 p.m. and 3 vessel providing the non-stop coverage. Hurtigruten MMS Nordnorge cruise ship a.m. on the first day. Moeklebust said the idea for the cruise and its roughly 670 passengers and crew as With a peak audience of 325,000 and livecast came after the success of his previthe vessel steams north along Norway's some 160,000 glued to the broadcast for ous minute-by-minute coverage from a jagged coastline. the entire 7-hour period, the "live docu- train making a 7-hour trip between Oslo The "minute-by-minute" coverage start- mentary" grabbed more viewers than and Bergen, which was viewed at least in ed on Thursday and includes all on-board NRK2's usual programing. part by 1.2 million people in 2009. announcements and views from 11 camPassengers, mostly from Norway and "That night we realized just how much source with knowledge of the eras focusing on the spectacular fjords, Germany, booked tickets for the 1,460 nau- people wanted to see TV like this and we decision. boat traffic around the ship, officers on the tical mile voyage from Bergen to Kirkenes, started thinking about what would be the Shenzen, China-based Xunlei bridge and the mostly elderly passengers a Barents Sea port near the Russian border ultimate Norwegian voyage," he said. "For had planned to start meetings strolling the decks and taking in the deep in the Arctic, without knowing they many Norwegians, this is the most impor- on June 17 with investors to scenery. would be part of what NRK said is set to be tant trip of their lives... which tells the story gauge demand for its IPO, said "It is slow, it is very slow," said Rune the world's longest uninterrupted live of their coastline and shows its fantastic IFR, a Thomson Reuters publiMoeklebust, the project manager for the broadcast. scenery." cation. The decision comes as a slump in global equity markets has forced several companies to postpone or cancel their IPO plans. Companies delaying or cancelling IPOs include U.S. lender Ally Financial Inc, Australian mining start-up Resourcehouse Ltd and arry Potter creator J.K. Rowling has is all we are permitted to say at the moment." launched a new website called "Pottermore," Rowling and Potter studio Warner Bros. have Chinese auto parts company but fans of the boy wizard will have to wait to never shied away from building up the hype Nanning Baling Technology Co Ltd. see what it entails as the entry page says simply ahead of key releases in the series. Contributing to the weak "Coming Soon...." The Harry Potter novels have sold more than The site, www.pottermore.com, was launched 400 million copies worldwide, while the seven market sentiment are recent a month ahead of the release of the eighth and movies released so far have grossed some $6.4 allegations that U.S.-listed final Potter movie on July 15. billion in ticket sales. Rowling has been billed Chinese companies have used fraudulent accounting to inflate Some Potter fan sites, which have been instru- the "world's first billionaire author." Oracle Corp is seeking damA spokeswoman for Rowling confirmed that their books as they joined U.S. ages "in the billions of dol- mental in generating a large and loyal fan base exchanges via reverse lars" from Google Inc in a for the movies and seven-book series on which the site was genuine. "We can confirm that takeovers. patent lawsuit over the smart- they are based, were given a sneak preview of Pottermore is indeed the name of J.K. Rowling's Harbin Electric was the latest new project. She will be announcing it soon," phone market, according to a the mysterious new website. "It is, in a word, breathtaking," wrote Leaky she said. "It is not a new book, but we won't say to be fall under a cloud of court filing. doubtful accounting. Its shares The disclosure on Thursday Cauldron, one of the leading Potter sites. "That more than that!" collapsed on Thursday after a was the first time either side report from a short-seller led publicly mentioned the investors to bail out of the U.S.cumulative scale of Oracle's listed Chinese maker of electric damages claims. motors. Oracle sued Google last "I think it's more because of year, claiming the Web the (weak) sentiment and the search company's Android volatility in the market," said mobile operating technology Linus Yip, chief strategist at infringes Oracle's Java First Shanghai Securities. Anonymous gained notoriety Hackers struck Malaysian space borders. patents. Oracle bought the "Concerns about corporate "Our focus now is to halt the when it temporarily crippled governance among Chinese Java programing language websites for a second day on through its acquisition of Sun Friday, an Internet regulator attack and to help the victims the websites of MasterCard companies is only one of the Microsystems in January said, as the country scrambled to get their websites up and and Paypal that cut off finan- many factors that is dampening to bring its government portal running as usual," Husin said cial services to WikiLeaks, the the already weak sentiment on 2010. back online after the latest out- in a statement. "The attack is website that aims to hold gov- IPOs market both locally and in break in a cyberwar waged by still ongoing but at a reducing ernments and corporations to the U.S," Yip said. account by leaking secret docrate compared to yesterday." online activists. Sean Shenglong Zou, Husin did not say how many uments. Hackers have also Xunlei's co-founder, is the The attacks followed a warning by Internet vigilante group websites were attacked on struck multinational firms and company's biggest shareholder Anonymous, which said it Friday. Local media reported institutions, from the U.S. with a 27.5 percent stake, while planned to target the Malaysian that Malaysian hackers also Central Intelligence Agency to Google owns 2.8 percent of the government's official portal participated in the attack that Citigroup to the International shares. The company had filed to list www.malaysia.gov.my to pun- was first announced this week Monetary Fund. Anonymous members crip- its shares on the Nasdaq under ish it for censoring WikiLeaks. by Anonymous, which freSome see the lawsuit as a In the attacks, which started quently tries to shut down the ple websites by overwhelming the symbol "XNET." Xunlei sign of a growing business in the early hours of Thursday, websites of businesses and them with traffic in what are planned to use proceeds from rivalry between the two com- 91 Malaysian websites were other organizations it opposes. commonly known as "denial of the offering to invest in technology, infrastructure and prodpanies. Husin said police had identi- service" attacks. The hacking hit, including 51 government The case is also part of a webpages. Fewer attacks were fied some of the hackers but group has also brought down uct development and to acquire digital media content, accordwider web of litigation reported on Friday. gave no further details. Police websites in Syria, Tunisia, ing to its IPO prospectus. among phone makers and The official government officials were not immediately Egypt and India for political The amount of money a comsoftware firms over who website was back online on available to comment. reasons. pany says it plans to raise in its owns the patents used in Friday and most other websites The spate of attacks by first IPO filings is used to calState news agency Bernama smartphones and tablets, as had recovered, said Husin quoted Science, Technology Anonymous and other groups culate registration fees. The rivals aggressively rush into Jazri, chief executive of and Innovation Minister has raised concerns that govfinal size of the IPO can differ. a market in which Apple CyberSecurity Malaysia, Maximus Ongkili as saying 90 ernments and the private sector JPMorgan and Deutsche jump-started with iPhone and which is responsible for pro- percent of the hackers were may unprepared to defend Bank were hired as lead underiPad. themselves. tecting the country's cyber- Malaysians. writers for the offering. Barring any settlements, a trial between Oracle and Google is expected to begin by November. Google has called an Oracle damages report "unreliable and results-oriented," and asked a U.S. judge in San Francisco to ignore it, court documents show. In disputing Oracle's methodology, Google also asked the court to keep private some damicrosoft Corp made available on ages information Google disThursday a Windows 7-compatible closed in a court filing. test version of the software behind its Oracle then accused Google of trying to conceal the fact hit Kinect motion-sensing game device, in the Oracle's damages claims in hope that developers will invent a host of the case are in the billions, "hands-free" features for standard PCs. according to a document filed Microsoft's Kinect, launched last year, is a on Thursday. Oracle said it sensing camera and microphone device that did not object to having the plugs into the Xbox 360 console, allowing information about its damusers to play games purely with gestures and ages become public. Due to Oracle's stance, U.S. voice commands. The hugely successful device is seen by some District Judge William Alsup ordered Google on Thursday as a blueprint for future computing, and was to make public the damages immediately attractive to hackers who devised ways of making it work on standard computers. information by Friday. A Google representative Microsoft was at first hostile to such attempts, declined to comment. but by releasing a beta version of the Kinect The case in U.S. District software development kit is showing that it is Court, Northern District of interested to see what developers will make of California, is Oracle the technology. The software kit, which America, Inc v. Google Inc, Microsoft insists is for noncommercial use at 10-3561. this point, can be downloaded here .
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Oracle JK Rowling launches new seeks Harry Potter website billions in lawsuit H against Google
Hackers strike Malaysian websites for a second day
Samsung, other Asian tech shares tumble on earnings worries
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amsung Electronics and other Asian technology stocks tumbled on Friday on fears the sputtering global economy will crimp demand for computers and TVs and hurt earnings at chip and panel makers for the rest of the year. Investors, who had expected Japan's earthquake three months ago to lift prices of memory chips and flat screens, dumped shares of tech firms in South Korea, Taiwan and Japan. The tech sector serves as the bellwether for global consumer demand and its outlook has been soured by the debt crisis in Europe and sluggish U.S. job and housing markets. "The tech momentum appears to be dead," said Cha Kyung-jin, a fund manger at Golden Bridge Asset Management, which owns Samsung shares.
Hynix. The regional MSCI technology index lost 1.8 percent on Friday. The U.S. Philadelphia Semiconductor Index shed 1.1 percent on Thursday, and has fallen 16.5 percent in four months. LOWERED EARNINGS OUTLOOK Global PC shipments, which in recent years grew by double digits annually barring 2009 and serve as a key growth driver of the memory chip industry, are set to grow by only 5 percent this year as consumers opt for popular tablets and smartphones. Samsung, which is set to update the market with its second-quarter earnings estimates in the first week of July, declined to comment on the current quarter's results. "Second-quarter is a typically weak season but the market condition was slightly worse
"Expectations have been lowered on the global economy and tech earnings in the second half." Shares in Samsung Electronics, the world's biggest technology firm by revenue, slid 3.4 percent in its biggest daily decline in three months. Hynix Semiconductor, the world's No.2 memory chipmaker, skidded 6.1 percent, and LG Display, which vies for the world's top flat-screen maker title with Samsung, tumbled 6.8 percent, amid lowered earnings expectations. In Japan, Elpida Memory lost 2.8 percent and Taiwan's Nanya Technology dropped 7 percent, while AU Optronics and Chimei Innolux lost 5.1 percent and 4.1 percent, respectively. "There are concerns that tech firms may see little earnings recovery in the second half after posting poor secondquarter earnings. There is traditionally high demand in the second half, but seasonality may be weak this year because of macroeconomic difficulties," said Park Jong-min, a fund manager at ING Investment Management. "Businesses are reluctant to build up inventory because of macroeconomic uncertainties and as they have already piled up components after the March 11 quake on fears of a parts shortage," he said. ING owns shares of Samsung and
than usual because tightness that many people had expected after the quake didn't really happen due to weak demand," said a senior executive at a major Korean electronics firm. The official declined to be named because he was not authorized to speak to the media. Analysts' expectations for a recovery in the loss-making flat screen businesses of Samsung and LG Display have now been pushed back from the second quarter as TV sales remain weak. Samsung' second-quarter operating profit is forecast to be around 4 trillion won ($3.66 billion), Thomson Reuters I/B/E/S data showed, compared to 5 trillion won a year ago. Earnings expectations were being downgraded further. "We recently lowered our second-quarter operating profit forecast on Samsung Electronics to 3.6 trillion won," said Jin Seong-hye, an analyst at Hyundai Securities. Hynix is seen posting a 553 billion won operating profit for the quarter ending in June, according to Thomson Reuters I/B/E/S, compared with a 1 trillion won operating profit a year earlier. "I cut my consensus forecast (for Hynix's second-quarter earnings) to 420 billion won, but I am also hearing talk in the market of 360 billion won," said James Song, an analyst at HI Investment & Securities.
Microsoft releases Kinect software for developers
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Sunday, June 19, 2011
The Financial Daily International Vol 4, Issue 226
Publisher & Editor-in-Chief: Amir A. Ashary Editor: Shakil H. Jafri Executive Editor: Manzar Naqvi Honorary Advisory Board Haseeb Khan, FCA
S. Muneer Hussain Rizvi
Asim Abbas Ashary, CPA
Khurram Shehzad, CFA
Akhtar M. Zaidi, FCA
Prof. Zakaria Sajid (KU)
Dr. A. Hadi Shahid, FCA
Zahid Bukhari SVP HBL (retd)
Muhammad Arif
Ismat Sabir Head office
111-C, Jami Commercial Street 11, Phase VII, DHA Karachi Telephone: 92-21-35311893-6 Fax: 92-21-35388428 URL: www.thefinancialdaily.com Email Address: editor@thefinancialdaily.com
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Avoiding complete blackout According to the latest report electricity shortfall in the country has reach 5,000MW and this menace could be attributed to non-availability of adequate quantity of fuel with the power plants. Added to this has been the closure of the IPPs as they were not being paid in time. They had initially expressed the intention to call the sovereign guarantees, but on the second thought considered it more apt to contain generation rather than creating an embarrassing situation for the government. Earlier the experts had warned the Government of Pakistan (GoP) to avoid such a situation by the whiz-kids have no tradition of listening to the experts and they also believe they can make any one and everyone accept their terms. However, they don't understand the basic point 'no fuel no generation'. Be it the state owned utility or the IPPs if they don't have the funds to buy the fuel how can they continue generation. Many of the citizens were shocked to read the news like power plants have to stop generation because of non-availability of fuel or water level in dams dropping to dead level because Pakistan faced historic devastations from floods in August 2010. They wonder where all that water has gone. This ghastly situation has emerged only because Pakistan has failed in constructing any other dam after completion of Tarbela in 1976. Ideally, since then four dams with an aggregate capacity of 20,000MW should have been built. Failure in constructing new dams can be attributed to lack of political will, inability to solicit financing and above all the perception that since little water is available there is no need to construct the reservoirs. The reduced availability of water is mainly due to failure of Pakistan in stopping India from constructing dams on the rivers ultimately supplying water to Pakistan. Experts are of the view that the devastation from last year's flood could have been less severe had there were enough facilities for storing water. They also warn that due to climate change Pakistan is likely to witness both the extremes, deluge and drought. This adversity could only be minimised by constructing dozens of smaller water storage facilities along with hydel power generation plants. Lately, thermal power plants were being run on lower capacities to overcome cash crunch. The time has come to give exemplary punishment to consumers indulging in pilferage. If timely recovery is ensured cash flow of power distribution companies can be improved substantially. According to the experts reducing of one per cent of T&D losses can improve cash flow by Rs2 billion. At present T&D losses of distribution companies hover above 30 per cent, excluding technical losses. Catch the thieves plunging the country into the darkness before it is too late.
Disclaimer:
All reports and recommendations have been prepared for your information only. Summary and Analysis are not recommendation to buy or sell. This information should only be used by investors who are aware of the risk inherent in securities trading. The facts, information, data, indicators and charts presented have been obtained from sources believed to be reliable, but their accuracy and completeness cannot be guaranteed. The Financial Daily International and its employees are not responsible for any loss arising from use of these reports and recommendations.
Hungary’s Revolution & the Arab Spring Chrystia Freeland
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ometimes the conventional wisdom is right. The Arab Spring really is the most important political event since the 1989 revolutions in Eastern Europe. So it makes sense to find out what the East Europeans make of the uprisings in the Middle East and North Africa
The Arab Spring really is the most important political event since the 1989 revolutions in Eastern Europe. So it makes sense to find out what the East Europeans make of the uprisings in the Middle East and North Africa and to ask what they think it will take to transform the promise of these rebellions into a lasting political transformation. and to ask what they think it will take to transform the promise of these rebellions into a lasting political transformation. A good place to look for those answers this week was Budapest, where Central European University, one of the intellectual centers of the region's political and economic transition, is celebrating its 20th anniversary. The scholars and activists who gathered here to toast those two decades strolled along the sunny banks of the Danube, listened to a special concert of Liszt and Mahler and spent a lot of time debating the lessons of their revolution for the Arab Spring. Here are four of them:
- The first is that selling democracy has become harder now than it was 20 years ago. That's because, as Aryeh Neier, the human rights activist and head of the Open Society Foundations, explained, the equation of prosperity and democracy, which was universally acknowledged in 1989 and the period that followed, has broken down today. "In 1989, the US had succeeded in conveying the view that economic prosperity and political freedom go hand in hand," Mr. Neier said. "That is by no means so certain today. The rise of China and the difficulty the West continues to have in recovering from the financial crisis have broken the link between prosperity and freedom." - A second big idea was that while technology has probably made it easier to rebel against authoritarian governments, it has also made it tougher to build enduring, deeply rooted democratic polities to replace them. Ivan Krastev, a Bulgarian political scientist and one of the world's leading thinkers about democracy and authoritarianism, argued that the communication revolution had created a "fragmentation of the public space." Instead of all of us being part of a single public debate, the Internet and social media have allowed us all to consume only "the information that confirms our biases." That may be useful when you are trying to bring together a crowd to topple a tyrant, but, as Krastev explained, it makes constructing the common civic space upon which a functioning democracy depends much harder. - The third big idea was a historical one. Wanda Rapaczynski was one of the leading creators of Poland's vibrant free press. But she identified a critical external force in her explanation of what made the revolutions in Poland, Hungary and the Czech Republic succeed: Europe and the promise of membership in the European Union. "How did we get so lucky?" Rapaczynski asked. "The most important role was played by our aspiration to join NATO and the EU. We had to carry out reforms in accordance with EU guidelines and deadlines. We made tremendous progress." Rapaczynski described the reforms
that preceded membership in the European Union as a period of "sponsored transformation" and pointed out that "once the pressure of the beauty contest was off, the pace of reform slowed." At a moment when many are questioning the value and the durability of the European experiment, Rapaczynski's reminder of the positive power the European idea has had in the eastern half of the Continent is timely. - The fourth lesson of Central Europe for the Arab Spring came from the founder and chief benefactor of Central European University: George Soros. Soros, who fled Budapest as a teen-ager and made his fortune in the United States, suggest-
That long view may be one of the greatest gifts Central Europe has to offer Egypt, Tunisia and their neighbors. Pretty soon, we will start to write the obituaries of the Arab Spring. We will begin to talk about how the promise of Tahrir Square has been squandered by the chaotic and corrupt governments the brave people on the street propelled into office. But, as with 1956 in Hungary, 1968 in Prague and 1980 in Gdansk, revolutions can be successful even if it takes decades for their promise to flower. Listening to these friends and patrons of Central Europe's successful revolutions prompted one big question. It was left unspoken - and
Listening to these friends and patrons of Central Europe's successful revolutions prompted one big question. It was left unspoken - and that is probably appropriate, since it is most properly asked on the banks of the Nile, not the banks of the Danube. It is this: Where is the European Union and where is the George Soros for the Middle East and North Africa? ed that the history of his homeland offered an example for the Arab revolutions that was both cruelly realistic and ultimately inspiring. "Reflecting on the Arab revolutions, one very important factor is that people were willing to sacrifice their lives for a common cause," Soros said. "That is a memory, a historic event, that will change those countries forever. It is irreversible." That's the positive part of Soros's lesson. But here is the dark cloud to that silver lining: "Revolutions are rarely successful. They often end in tragedy. But they change the behavior of that country afterwards. The 1956 Hungarian Revolution was repressed. But it carried with it the seeds of the successful revolution in 1989." At a time when many of us in the West - and on the Arab street - are looking for instant results from the Jasmine Revolution, Soros's conclusion is both heartening and frightening. Sometimes, as with Hungary's 1956 uprising, a successful rebellion can take 33 years to work.
that is probably appropriate, since it is most properly asked on the banks of the Nile, not the banks of the Danube. It is this: Where is the European Union and where is the George Soros for the Middle East and North Africa? The party this week in Budapest was a testament to the power of smart, committed outsiders to help a revolution deliver results in less than three decades. The European Union can still help, by admitting Turkey, not a participant in the Arab Spring, but an essential example for the Muslim world. As for Soros, it is probably asking too much to expect this octogenarian to be the patron saint of the Arab Spring, as he was for the revolutions of 1989. But the Arab world, too, has its democracy-loving billionaires. It is time for them to step up to the plate. Come visit Budapest - where one professor told me this week, "I may be the only academic in town who didn't study on a Soros scholarship" - to appreciate how rich the reward could be.-Reuters
How will Afghan Women fare in Taliban Reconciliation? Amie Ferris-Rotman
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he gaggles of giggling schoolgirls in their black uniforms and flowing white hijabs seen across Afghanistan's cities have become symbolic of how far women's rights have come since the austere rule of the Taliban was toppled a decade ago. While women have gained back basic rights in education, voting and work, considered un-Islamic by the Taliban, their plight remains severe and future uncer-
"Women are at risk of losing everything they have regained," she told Reuters in her office at the All Afghan Women's Union, the country's most prominent women's rights group that she set up 20 years ago. The dangerous business of fighting for women's rights in Afghanistan highlights just how precarious their situation is. Parlika said Taliban militants have tried to kill her eight times. In the latest attempt, gunmen tried to shoot her through a window at her home but
While women have gained back basic rights in education, voting and work, considered unIslamic by the Taliban, their plight remains severe and future uncertain as Afghan leaders seek to negotiate with the Taliban as part of their peace talks. tain a s Afghan leaders seek to negotiate with the Taliban as part of their peace talks. The United States and Nato, who have been fighting Taliban insurgents for 10 years in an increasingly unpopular war, have repeatedly stressed that any peace talks must abide by Afghanistan's constitution, which says the two sexes are equal. But President Hamid Karzai's reticence on the matter, constant opposition by the Taliban, and setbacks even at the government level cast a shadow on the prospects of equality for the 15 million women who make up about half the population. "I am not optimistic at all," said Suraya Parlika, 66, a Nobel Peace Prize nominee and member of the upper house of the Afghan parliament. "We do not know the agenda of the talks and this worries all women in Afghanistan."
missed and blew a hole in the wall. Others, such as the headmaster of a girls' school near Kabul, are not so lucky. He was gunned down by the Taliban last month for educating girls. MIXED MESSAGES Washington and Nato have backed Karzai's peace plan, which includes reintegrating mid-level Taliban fighters and reconciling with some leaders as well as talks. One of the main conditions in the talks is that insurgents renounce al Qaeda. The Taliban have rejected any talks until all foreign troops have left the country. US President Barack Obama has said US troops, who make up 100,000 out of around 150,000 foreign forces, will begin to come home gradually from July, with Nato eyeing a full handover of security responsibilities to the Afghans by the end of 2014.
"What they (women) fear is a powersharing agreement between leaders that does not take their interests into account," said Martine van Bijlert, codirector of the Afghanistan Analysts Network in Kabul. "At the moment there is no one standing up as a guarantor of the process, no one who says it's really important this is done well. There are a lot of mixed messages," she told Reuters. Some have accused Karzai of holding back on women's rights to curry political support in the more conservative sections of society. One example is his passing of a family law in 2009 that legalised marital rape for Shi'ites, who make up 15 per cent of the population. In March, Karzai sacked the deputy governor of southern Helmand province after two women performed without headscarves at a high-profile concert. Parlika said physical attacks on female lawmakers, and internal pressure from their male counterparts not to press women's issues, mean their presence in government is more about symbolism than actual change. "The situation surrounding women can get very dark indeed," said one Western official who spoke on condition of anonymity. "There are lots of challenges that need to be overcome and the international community must stay focused to make sure women are protected," said the official, an adviser in the talks. RURAL VS. URBAN Underlying the rights women have regained on paper since US-backed forces overthrew the Taliban are the enormous social and economic hurdles they face in a country where more than 40 per cent live below the poverty line. Rights groups and Western officials warn of a "rural versus urban" split, saying the vast economic and religious
divide means women in the countryside have not benefited from the end of Taliban rule and continue to live much as they did before. Some warn this paves the way for women's rights being forgotten in the event of Taliban peace talks. "Afghanistan is totally male-dominated, women suffer terribly, and this is worse in rural areas where they are economically dependent on men and where they cannot express their own will," Parlika said. Ancient traditions such as 'baad', when a woman is given as compensation for crimes, are common in the countryside, where female illiteracy is over 90 per cent and child marriages are still widespread despite being illegal. In the Taliban strongholds of the south and east, many women still seek permission from a male relative to leave their homes, and the rule of law is upheld either by Taliban "courts" or by tribal elders, which almost always favor men. For Hasina Aimaq, the manager of an eponymous fashion house sponsored by a non-governmental organisation for women, finding seamstresses for her business in northern Baghlan province is a constant struggle. "There are always problems with the father, always. They would even prefer them to beg than earn money from work as they think learning a skill is bad," Aimaq told Reuters next to a collection of high-heeled shoes with geometric silk patterns. Aimaq said her 75 teenage female workers, who make velveteen purple jackets and delicate floral scarves, regularly receive written threats from the Taliban, urging them to quit working. "They tell us to stay at home, but we will keep coming to work and keep sewing," she said, adjusting her navy blue hijab.-Reuters
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Sunday, June 19, 2011
Australia fears even ‘worse’ carbon Ian A
ustralia's power industry has voiced fears the government could hatch a new carbon-reduction plan that is even worse for generators than its first proposal, which had sparked warnings of bankruptcies, shutdowns and electricity market chaos. The Energy Supply Association of Australia, which represents coal-fired, gas and renewable energy suppliers, backs the concept of imposing a cost on carbon emissions but is lobbying Canberra hard for safeguards against sudden industry turmoil. Association chief executive Brad Page said there was greater risk this time around of political miscalculation in finalizing the policy, saying clumsy design and implementation could cause a cascading series of asset write-downs and debt defaults. "We think it has the potential to be worse," Page told Reuters in a phone interview on Wednesday, just a few weeks before the government is due to unveil its revised scheme. "What we saw from our modeling (on the original plan) was that about 15 percent of the installed capacity of electricity on the east coast would close prematurely," he said, noting the additional potential for turmoil in traded electricity prices. Page said the original plan would have led to around $10 billion in asset write-downs, delivering a shock to the industry that even renewable energy providers -- among the main beneficiaries of a carbon-reduction scheme -would dread. "I think the companies see that for the whole of the industry to make that transition, it needs a fair bit of care with all the elements of it," he said. The government wants to cut national carbon emissions by at least 5 percent by 2020, from 2000 levels. The precise target might not be decided for a few years, but it plans to move ahead anyway and impose a tax on carbon emissions from 2012, followed within three to five years by the introduction of national trading of carbon pollution permits. It is expected by the end of this month to announce the level of the tax, expect-
ed to be around A$20 ($21) per tonne of carbon emitted, as well as compensation for households and worst-affected industries, such as coal-fired power stations. Coal accounts for 54 percent of Australia's energy production and electricity generation in turn makes up 37 percent of national emissions, helping to put Australians among the rich world's worst greenhouse-gas polluters per head. Coal-fired power plants generate about 80 percent of Australia's electricity, with brown-coal plants the dirtiest, and the higher the pollution per unit of power, the higher the carbon cost. Uncertainty over future carbon costs, and therefore power prices, clouds investment plans. BLACK BOX The government's original plan, rejected by the previous parliament, was similar in its basic architecture to the current plan -- at least a 5 percent reduction target, and transitioning from an effective tax to a carbon market -- but the power lobby fears the devil could be in the detail of the revised version. Page notes that since the original scheme's demise, the government has come to rely on Green lawmakers to ensure its legislation is passed, injecting a new element of uncertainty. He noted that the government had given the Greens a strong role in formulating the new scheme by appointing
them to a policy committee that would need to sign off on it. "I regard that as a black box," Page said, referring to the Multi-Party Climate Change Committee (MPCCC), which is operating as a quasi sub-committee of cabinet. "There is a big risk at that MPCCC stage that the right deal does not come out the other end." Page was also critical of recommendations made by Canberra's official climate-change adviser, Ross Garnaut, who recently recommended the government offer guarantees on power-company debt rather than hand out compensation such as free permits. Under the original plan, generators would have received free permits worth A$6 billion, covering 13 percent of the coal-fired sector's emissions over the first five years of the scheme and then 9 percent over the following five years. But with Garnaut and the Greens opposed to that kind of compensation, the industry is again ratcheting up its warnings about the likely fallout for Australia's energy security. COST OF UNCERTAINTY The Greens accuse the electricity sector of special pleading, and Garnaut also suggests it is being overly alarmist, but the government's own energy regulator said in a report leaked on Thursday that Garnaut's assessment was flawed.
Bankers advising the industry are also concerned. David Roseman, global head of infrastructure, utilities and renewables for Australian bank Macquarie Group, agrees that political uncertainty is a problem for the industry, especially for future investments. "You are partly dependent on government decisions. You are dependent on carbon pricing and government regulations," Roseman told Reuters this week. "That's a very big cloud hanging over any investment decisions." The electricity industry, including generation and transmission, will need up to A$82 billion in new investment by 2030, according to government estimates, though Garnaut argues that a carbon price will simply skew investment to low-carbon alternative energy sources such as gas and renewables. Even after the government unveils its carbon tax, and overall compensation arrangements for industry and households, industry uncertainty could continue. With investment horizons spanning 20 years or more, generators will need to hedge their exposure to major movements in electricity prices, but this may not be possible until the industry knows some crucial policy details which, according to the government, may not be forthcoming for some years. Page said a trajectory for annual reduction targets would need to be decided before instruments such as futures contracts could be developed, as well as the amount of international carbon credits that could be brought into the country once the scheme moved from a tax to carbon trading. Carbon trading firm COzero agrees with the power lobby, saying market and investment uncertainty are likely to remain in the electricity sector until such details are known. "The market needs to know the supply and demand fundamentals and without a (specific) target there's really no way of setting a forward price," COzero chief executive Nicholas Armstrong said, referring to a forward carbon price. "It makes our job very, very risky, and I would hate to be running a A$1 billion company that had to make 20-year investment decisions.
Study questions extra folic acid need for women
Cancer death rates continue drop: report US cancer death rates are continuing to fall, but not all segments of the population are benefiting, the American Cancer Society said Friday. Overall, the group predicts 1,596,670 new cancer cases in the United States and 571,950 deaths in 2011. Death rates for all cancer types fell by 1.9 percent a year from 2001 to 2007 in men and by 1.5 percent a year in women from 2002 through 2007. Steady overall declines in cancer death rates have meant about 898,000 who would have died prematurely from cancer in the past 17 years did not, the organization said. Americans with the least education are more than twice as likely to die from cancer as those with the most education, according to the group's annual cancer report. Death rates for all cancer types have fallen in all racial and ethnic groups among both men and women since 1998 with the exception of American Indian/Alaska Native women, among whom rates were stable. Black and Hispanic men have had the largest annual decreases in cancer death rates since 1998, falling by 2.6 percent among blacks and 2.5 percent among Hispanics. New cases of lung cancer among women fell after rising steadily since the 1930s. The decline comes more than a decade after lung cancer rates in men started dropping and
reflects differences in smoking trends among U.S. men and women, who took up smoking later in the last century than men. Lung cancer is expected to account for 26 percent of all cancer deaths among women in 2011 and remains the No. 1 cancer killer of both men and women in the United States. Breast cancer comes in No. 2 for women. Prostate cancer is the second most common killer of men, and colon cancer is the third-leading cause of cancer deaths for both sexes. These four cancers account for almost half the total cancer deaths among men and women. Cancer rates vary considerably among racial and ethnic groups. For all cancer types, black men have a 14 percent higher rate of new cases and a 33 percent higher death rate than white men, while black women have a 6 percent lower rate of new cancer cases and a 17 percent higher death rate than white women. The report found cancer rates in the least educated were 2.6 times higher than in the most educated. This was most pronounced in lung cancer, reflecting higher smoking rates among those with less education. Thirty-one percent of men with 12 or fewer years of education are smokers, compared with 12 percent of college graduates and 5 percent of men with advanced degrees.
Japan plant starts clean-up of radioactive water he operator of Japan's crisis-hit nuclear power plant said it started an operation to clean up radioactive water later Friday, T after several glitches that delayed the plan.
Large and growing pools of radioactive water were in danger of spilling into the sea within a week unless the plan got under way, officials had said earlier this week. Tokyo Electric Power Co, known as Tepco, has pumped massive ince 1998, the U.S. has required that grain prod- more work is done, they should continue to follow this folic acid supplements at least four days per week amounts of water to cool three reactors at the Fukushima Daiichi ucts be fortified with the B vitamin folic acid to important recommendation to reduce their risk of hav- around the time of conception. But their risk of having plant that went into meltdown after a March 11 earthquake and help prevent certain birth defects. Now a new ing a baby with a neural tube defect," Dr. Deborah L. a baby with spina bifida was the same as that of women tsunami disabled cooling systems. study questions the need for women to get even more O'Connor, of the University of Toronto and Hospital who hadn't used supplements. "Our study findings raise for Sick Children in Ontario, Canada, said in an email. the possibility that supplementation with folic acid durfolic acid from a pill. In a recent study, O'Connor and her colleagues found ing the months immediately preceding neural tube cloIn a study of nearly 6,400 U.S. women who gave birth between 1998 and 2008, researchers found that that less than 1 percent of Canadian women were able sure does not offer further benefit in reducing the risk as the women's intake of folic acid from food rose, to get the recommended 400 micrograms of folic acid of a spina-bifida-affected pregnancy," Werler and her there was a steady decline in their risk of having a from food alone. (Canada also requires that folic acid colleagues conclude. There are major caveats, though, baby with spina bifida -- a serious birth defect of the be added to grain products.) A number of studies have the researchers say. One issue is that women were spine. However, there was no evidence of a further found that since the U.S. began requiring folic acid for- asked to recall their diets and supplement use. It's posbenefit when women took folic acid in pill form -- tification of flours, breads, cereals, pasta and other sible that, knowing folic acid is linked to spina bifida, whether in a multivitamin or a single supplement -- grain products, rates of neural tube defects have waned. some women with affected infants said they took suparound the time of conception. The findings "raise the In 2005, according to the Centers for Disease Control plements when in fact they had not. O'Connor agreed. "It is very possible that there was possibility" that in the era of fortified grains, folic acid and Prevention, about 18 per 100,000 live newborns recall bias in the study among women who had a baby supplements offer no added protection against spina had spina bifida, the lowest rate ever reported. For the new study, Werler's team wanted to know with a neural tube defect who felt uncomfortable bifida, Dr. Martha M. Werler and her colleagues at Boston University report in the journal Epidemiology. whether, in the era of fortified grains, additional folic acknowledging they did not regularly consume a folic That would stand in contrast to current recommenda- acid from supplements seems to further cut the risk. acid supplement as recommended." It would also be tions for women of childbearing age. Experts advise They compared 205 mothers who gave birth to a baby difficult, she noted, for the mothers to accurately them to get 400 micrograms of folic acid per day -- with spina bifida between 1998 and 2008, with 6,357 recall their pre-pregnancy diets. O'Connor also pointbefore conception, as spinal cord defects take shape mothers who had a healthy baby. All of the women were ed out that in the early days of fortification, manufacvery early, before many women know they are preg- asked whether they had used folic acid supplements in turers added more folic acid to their products than But managing the radioactive water has become a major nant. And to get that much folic acid, they would need the two months before and after conception. They also they do now. "The amount of fortification has come completed questionnaires on what their diet habits had down over the years and is likely to come down fur- headache as the plant runs out of places to keep it. Around to take supplements as well as eat fortified foods. The recommendation is aimed at preventing neural been before pregnancy. Overall, the researchers found ther as manufacturers become more comfortable with 110,000 tonnes of highly radioactive water -- enough to fill 40 tube defects, severe malformations of the brain and that for every 100 micrograms of folic acid that women how much needs to be added to food to meet label Olympic-size swimming pools -- is stored at the plant. Tepco, with help from French nuclear group Areva, U.S. firm spine. They include spina bifida, where the spine fails to consumed from food each day, the risk of having a baby claims," she said. The bottom line, according to close during early fetal development, and anencephaly, with spina bifida dipped by 13 percent. That included O'Connor, is that women who might become pregnant Kurion and other companies, has been test-running a system in a usually fatal defect where much of the brain never folic acid in fortified grains, as well as folate (the natu- should continue to follow current folic acid recom- which radioactive water is decontaminated and re-used to cool the forms. And the current findings should not deter women ral form of the B vitamin) in foods like spinach, aspara- mendations. "As a rule I hope women appreciate they reactors. But in a setback that delayed the plan by about a week it from taking supplements to get the recommended gus, dried beans and peas, and orange juice. However, should not discount well-established health recom- said water had leaked from a facility used to absorb cesium on mendations based on a single study," she said. "More Thursday. Tepco official Junichi Matsumoto told reporters that the amount of folic acid, according to a researcher not folic acid from pills was not linked to a benefit. Overall, 41 percent of the women said they'd used work in this area needs to be done." -Reuters involved in the study. "I hope women realize that until operator was aiming to use some of the cleaned water to cool the reactors within the next few days, which would not require the pumping in of fresh water. DUMPED IN OCEAN In early April, the utility dumped about 10,000 tonnes of water egotiators made scant progress emitting fossil fuels since the 18th cen- ted targets by major emerging emitters United Nations was scrambling to with low-level radioactivity into the ocean, prompting criticism toward salvaging theUnited tury Industrial Revolution. such as China and India and would cost muster cash to hold a new U.N. session, from neighbors Chinaand South Korea. Nations' Kyoto Protocol for The alliance says its members are on U.S. jobs. Washingtonsays it will not as hoped by many delegates, before Even if the water treatment is successful, Tepco would next face fighting climate change beyond 2012 at the front line of climate change, includ- join. Advances in Bonn were largely on annual talks among environment minis- the problem of dealing with highly radioactive sludge that will be two weeks of talks ending on Friday, ing more powerful storms, droughts, technical issues, such as working out ters in Durban, South Africa, in left over from the decontamination process. It is unclear where the delegates said. floods and rising sea levels. Developing new ways of sharing clean energy tech- November and December. Many sludge will be stored in the long-term. "When you look at the progress ...it is nations say that the rich must take the nologies or setting up a green fund to nations have been reluctant to pay. Despite the mounting challenges, Tepco aims to complete initial very uneven," said Adrian Macey lead and extend Kyototo unlock action aid developing nations. Little headway The meeting had opened with calls steps to limit the release of further radiation from the plant 240 km ofNew Zealand, chairing a session of by the poor. was made on broader issues of emis- for swifter action after the International (150 miles) northeast of Tokyo and to shut down its three unstatalks among 180 nations in Bonn about Japan, Canada and Russia have said sions cuts or cash. Energy Agency said that global carbon ble reactors by January 2012. the Kyoto Protocol, which risks dying they will not make cuts in an extended In talks about slowing deforestation, dioxide emissions rose by 5.9 percent in Tepco announced Friday, as expected, that it had not made sigbeyond 2012 due to lack of support. Kyoto and are instead demanding a new for instance, the text agreed to ask for 2010, to a record level, despite promis- nificant changes to its timeline. Developing nations accused rich global deal with greenhouse gas curbs new ideas by a September 19 deadline. es of cuts. The operator said that storing high radiation sludge likely to nations of reneging on promises to to be observed by all, including big "That's a step forward," saidDonald "The contrast between what's happen- result from the treatment of contaminated water and improving extend Kyoto, which now binds almost emerging nations led by China and Lehr of the Ecosystems Climate ing with emissions and the pace of talks the conditions for their workers during the approaching summer 40 nations to cut emissions until 2012. India. And Kyoto backers led by the Alliance. "But it's not enough. It's too here is alarming," said Samantha Smith, were extra areas it was looking into. Kyoto's future has become the main European Union say they are unwilling slow." The talks also postponed deci- of the WWF Internationalconservation Measures for the workers include access to more doctors and focus after a U.N. summit in 2009 to go it alone and will extend the pact sions on four separate items meant to group. Still, she said that there were body counters that measure exposure to radiation and new resting failed to agree a new treaty. only if all major emitters sign up for speed up and expand the clean develop- examples of progress around the world, areas away from the summer heat, Tepco said. "Progress in Bonn has been hampered curbs. ment mechanism, which allows rich such as programs by Brazil and The ultimate goal is to bring the reactors to a state of "cold shutby parties with the biggest historical UNITED STATES nations to invest in emission-cutting Indonesia to slow deforestation, backed down," where the uranium at the core is no longer capable of boilresponsibility for emissions," the Further complicating Kyoto's fate, the projects such as wind or solar power in by donors led by Norway. "The process ing off the water used as a coolant. That would allow officials to Alliance of Small Island Statessaid of United States never ratified the 1997 poor nations. has produced successes, but not here," move on to cleaning up the site and eventually removing the fuel, rich nations that have burned carbon- U.N. deal, arguing that it unfairly omitAs the final sessions were held, the she said. a process that could take more than a decade.
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Sunday, June 19, 2011
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INDONESIA CLERIC'S JAILING FAILS TO EASE FIGHT ON TERROR Diverse groups united on Islamist agenda n Militants switching tactics from Western to local targets n Investors see govt as weak, but still bet on economy n
JAKARTA: While Indonesia's most notorious Islamist was sitting in a cell awaiting his fate, militants linked to his supposedly peaceful Jema'ah Ansharut Tauhid group shot policemen while trying to rob a bank and wounded 30 people in a suicide bombing at a police mosque. The attacks could signal further mergers of militant splinter factions with Islamist groups not previously involved in terror as they recruit young men left behind by a booming economy and unite in their opposition to minorities, non-Muslims and pluralism -- the bedrock of the world's largest Muslim community. Judges on Thursday jailed frail cleric Abu Bakar Bashir, 72, the spiritual leader behind the 2002 Bali bombings, for 15 years for aiding a group that planned to kill President Susilo Bambang Yudhoyono. It was effectively a life sentence. "There's the potential for small cells forming for joint actions at a local level, and it's not a good development," said Sidney Jones, an expert on Islamic militancy at the International Crisis Group in Jakarta. These militant groups are showing a shift in tactics, away from Western targets such as luxury hotels and night clubs towards domestic institutions such as the police, and symbols of pluralism, in their push for an Islamic state. A move towards Islamic law would worry investors such as consumer giantUnilever and threaten the long-
term unity of an archipelago with sizeable Christian populations in the east. The country was riven by violent sectarian conflict early last decade, so at stake is continued political and social stability that has encouraged foreign direct investment to pour into the country in recent years. There has been an escalation of attacks and religious intolerance this year, with police failing to stop mob beatings of the minority sect Ahmadi, the burning of two churches and an attack on a court after demands for a stiffer sentence against a Catholic man guilty of distributing anti-Islamic material. "The Islamic militant network used to be moved by the international Muslim agenda, but now it is motivated by the dynamics of the Islamic movement in Indonesia," said Andi Widjajanto, a terrorism expert from theUniversity of Indonesia. While previous militant groups such as Jemaah Islamiah, seen as an arm of al Qaeda and whose goal was a pan-Southeast Asian caliphate, were influenced by issues such as the U.S. presence in the Middle East and attacked Westerners, the new ones are domestically focused on makingIndonesia more Islamic. A series of parcel bombs was sent to police and proponents of pluralism in Jakarta, while groups have used anti-Ahmadi sentiment to whip up popular support, according to the head of the country's anti-terror agency, Ansyaad Mbai.
Police said they found similarities in the parcel bombs to those used by Islamic groups a decade ago in sectarian conflicts in far-flung eastern provinces. "These are new methods, but we suspect a connection with old players," said police spokesman Boy Rafli Amar. The nervous mood in the capital was highlighted by a advertising stunt that backfired when a firm sent coffins and notes saying "your time has come" to media organisations to promote a book -- only for jumpy editors to call the police. Militants exploited this by a fake threat to explode 36 bombs when Bashir's verdict was announced, prompting a security clampdown across the capital. "This is a campaign of fear that at the same time is exhausting the police," said Widjajanto. IMPUNITY The changing nature of the militant threat was highlighted at the trial of Bashir, which regularly attracted crowds of not only his supporters, but also members of the FPI -- a Muslim vigilante group mostly known for smashing up bars. Yudhoyono called this month for adherence for the national pluralist ideology and has called for groups using violence to be disbanded, but none has been so far and few arrests made. An FPI member, Munarman, who is also a lawyer for Bashir, told reporters outside the court that if Yudhoyono kept pushing pluralism and the disbanding of Islamic
groups, then Muslims were ready to "Ben Ali" Yudhoyono -- a reference to deposed Tunisian President Zine al-Abidine Ben Ali. Such comments in public show the apparent impunity that such groups have, and analysts say the lack of action against them highlights the president's ineffectiveness. "A feeble response from the administration highlights the president's wariness of irking Islamic parties, as well as weaknesses within the cabinet," said Jakarta-based risk analyst Kevin O'Rourke. Bashir labelled his 15-year sentence un-Islamic, striking to the heart of an argument the government does not want to have, since being seen as un-Islamic would be a vote loser as parties start to jockey for the 2014 elections. These issues are also likely to distract the government from planned reforms on land acquisition, infrastructure and labour laws, which investors say are already long overdue. There are no signs portfolio investment flows have been affected by recent attacks or religious intolerance, with many investors bullish on aG20 economy that could win an upgrade to an investment grade sovereign rating in the next year. "I think the market has already priced in the threat of terrorism," saidEugene Leow, economist at Southeast Asia's top bank DBS. "It is simply a cost of doing business in Indonesia."
China doubts high, short sellers descend on hong kong HONG KON: To bet against Chinese equities after the country's main stock index has been in a bear market for 3-1/2 years requires strong conviction. After a two-month steep decline in Hong Kong's market, some hedge funds and other investors have been ignoring bargain prices in some sectors and what still appears to be a generally positive outlook onChina's economy, and are increasingly putting on short positions on Chinese stocks. From macro-focused funds to fast money chasing momentum, Hong Kong speculators are now joining the likes of high profile hedge fund managers such as Jim Chanos and Hugh Hendry by shorting China. They suspect that talk emanating from the West of a Chinese internet bubble and questions about China Inc's corporate governance following controversies surrounding Sino-Forest and Harbin Electric will keep the bear market going long enough to profit on their strategies, which often depend on momentum and historical price trends. "The overseas paranoia on China has heightened considerably after the accounting issues and Sino-Forest right now is creating a lot of uncertainty," said a Hong Kongbased hedge fund manager, who spoke on condition of anonymity because he is not authorized to speak to the media. The investor, who employs a market neutral strategy
meant to benefit from both rising and falling prices, has short positions in Hong Kong-listed stocks in the gaming and property industries, both fairly liquid segments of the market. Casino stocks have been big outperformers so far this year. For example, Wynn Macau is up 30 percent year-todate and Sands China is up 11 percent, compared with a 5.1 percent drop in the benchmark Hang Seng Index . THE SHORT OF IT The Hong Kong market has seen a ramp-up in shortselling activity and there may be more to come with the Hang Seng falling to new lows for the year this week. Short-selling in Hong Kong has picked up to levels not seen in about eight months by some measures, with the average daily turnover on the short side this month 35 percent higher than that seen over the past three months. Short-selling in Chinese shares listed in Hong Kong, called H-shares, has also ramped up in the past several weeks, even in the widely-owned banking sector where valuations on some of the most well capitalised financial institutions are close to historic lows. On Wednesday a fifth of the turnover generated by trading of China Construction Bank , Agricultural Bank of China and Industrial & Commercial Bank of China -which are some of China's largest banks -- was shorted. These stocks are trading at forward 12-month price-to-
earnings ratios, significantly below their long-term averages, according to Thomson Reuters StarMine. But funds are setting aside the fundamentals of Chinese banks, often considered a proxy for the economy, and targeting them for shorting opportunities partly because they tend to be less volatile than other sectors and borrowing their relatively liquid stocks is easy. Short interest in China Construction Bank, China's top mortgage lender, has spiked. While the average daily short-interest this past quarter has been around 4 percent, in June that has tripled. According to DataExplorers, only 3.1 percent of the stock available to lend is currently out on loan, suggesting there is ample supply for anyone looking to go short. COVERING CALLS Many investors are not necessarily going structurally short on China, but there is growing demand for strategies that will protect their portfolios. "What we are seeing when it comes to Hong Kong and China long/short hedge funds are actively looking at short-term, stock-specific tactical strategies," said Nicolas Boulay, head of Asia Pacific equity derivative sales at Deutsche Bank in Hong Kong. One example is call overwriting on sectors that have significantly outperformed the broader market and where market players believe the upside is limited, such as Chinese cement makers and Macau casino operators, said Boulay. In such a strategy, rather than an outright short,
investors who are long certain shares sell call options - the right to buy a security for a fixed price at a later date - to generate additional income and get some protection in case the shares slide. Despite the Hang Seng getting knocked down 10 percent in the past two months, implied volatility -- the likely future price fluctuations that factors directly into the cost of buying options -- has remained relatively flat. That means investors could still look to buy puts going out three months at the index level in Hong Kong that are still relatively cheap, said Boulay. While some economists are trimming growth forecasts for China, it is still expected to expand at more than 9 percent this year, with strong profit growth. However, worries over corporate governance in China prompted by a spate of controversies involving reverse mergers and creative accounting, stubbornly high inflation and a red hot property market, combined with the escalating euro zone debt crisis, have made foreign investors cagey. With these risks not about to go away anytime soon, short sellers in Hong Kong may be getting comfortable. "In all my years of investing, there has always been a divergence betweenChina bulls and bears, but the divergence has never been so huge," saidMark Matthews, Asia head of research at Julius Baer, in Hong Kong at an event hosted by the Swiss private bank. "Bears are firmly in the driver's seat."
India, Hotel operators invest, Educate n Hilton coaches Indian hotel owners n Equity is sometimes the price to pay for entry n Accor has $250mn in India NEW YORK: In the United States, big hotel chains get to float above the fray. India brings them down to earth. At home, and in some markets abroad, companies like Marriott International, which owns the Courtyard and Fairfield brands andStarwood Hotels & Resorts, owner of Sheraton and W, have virtually eliminated real estate risk. They have sold all or most of their own hotels, and instead make money by franchising their well-known names. This business strategy of minimizing in-house resources is known as "asset-light." But in India, hotel companies are finding it hard to grow without getting bogged down in bulky assets like land and, well, hotels. (For a graphic: http://r.reuters.com/jyr22s )
"All the brands, they still want to do the asset-light model, but they understand in some cases the price to pay for entry is to put some capital, some equity into it," said Sri Sambamurthy, whose real estate firmWest Point Partners is investing in India. Sambamurthy used to manage global real estate projects for Barry Sternlicht's Starwood Capital. Rapid expansion in China lends credence to the lodging industry's claim that its future lies mainly in emerging markets. But in India, growth will be slower, and more expensive. CRITICAL MASS In India, foreign operators see providing affordable lodging for middle-class domestic tourists and business travelers as the best growth opportunity, as the country already
has a longstanding luxury hotel tradition. The key to developing mid-level product lies in quickly building enough properties that consumers become familiar with the brand and confident that they will find the hotels where they need them. Investment helps speed things up, said Christian Karaoglanian, chief development officer for French hotelier Accor, which has put $250 million into the country. "In China, it's easy to be asset-light. They're building hotels and they're looking for managers," Karaoglanian said. "In India, we like to be a part-owner. The only way to grow, and to grow fast, is to invest." Family-owned Carlson, which owns the Radisson and Park Plaza brands, acquired one of its Indian partners outright and owns
24 percent of another venture, said Chief Executive Officer Hubert Joly. COMPROMISES Karaoglanian believes that other operators looking to tap demand fromIndia's middle class will increasingly need to invest in order to stay competitive. Even Starwood is not ruling out investing its own equity. Distribution is key to the growth of brands in the middle of the market, said Dilip Puri, managing director in India for Starwood. Marriott recently announced a joint venture with hotel developer SAMHI to build a portfolio of 15 Fairfield by Marriott hotels targeting the Indian business traveler. Marriott has invested $30 million in the effort. "It's not our business model to own hotels or to put equity into hotels. That's not to say that if our equity is required to make a project work
we won't put equity in," said Navjit Ahluwalia, senior vice president of development in India. Some companies, like Hilton Worldwide and Wyndham Worldwide, maintain they are exporting their asset-light model to India despite others' insistence that it will not work there. Even Hilton acknowledges that expansion in India requires more investment in staffing and support to owners, said Abhijit Das, who directs development there for the company. Hilton does not intend to actually invest in any of the Indian properties that carry its brands. But doing business in India still implies an unusual degree of commitment from foreign brands, Das said. "We have to do a lot more education in India," he said. "We have to walk the developers through international standards."
China russia gas deal still in the Pipeline BEIJING: The failure of China and Russia to clinch a gas pipeline deal on Friday is unlikely to be the end of the story as the world's top producer and consumer of energy can both see a pact makes sense. After years of negotiations and increasingly optimistic rhetoric that a deal would be struck before or during a visit by China's President Hu Jintao to the St Petersburg economic forum, the bubble of belief in a deal appears to have burst. The stumbling block? Price. The two sides had long said the price of gas to be delivered -- via two pipelines, then one, and now two again -- was the sole remaining obstacle. But they seemed to wave away the seriousness of the divide by promising the deal would be finalised in mid-2011. The fact that President Hu went to St Petersburg with his foreign ministry trumpeting the near-certainty of a deal appears to suggest it was the Russians who pulled the plug on the provisional agreement.
Russia may be betting that China, which is facing its worst power shortages in seven years this summer, cannot afford to say no to 68 billion cubic metres of Russian gas to feed its burgeoning gas market annually from 2015. But Hu may console himself that if Russia's Gazprom won't deal, there are many other wannabe suppliers queueing up to talk to Beijing. OTHER SUPPLIERS China already has a 30 bcm pipeline bringing gas from Turkmenistan and may build a smaller pipe from Myanmar. China's triumvirate of state oil firms is also planning a rash of gas import terminals that will pop up alongChina's coast, to be supplied by ships arriving from Australia, Qatar and elsewhere. That smorgasbord of suppliers gives Hu the confidence that he can walk away from St Petersburg without a deal, whereas Russian PresidentDmitry Medvedev, like Vladimir Putin before him, has very few export options
beyond increasing dependence on Europe -- exactly the problem the China deal was meant to solve. China also holds a wild card in the shape of its own gas industry which could be gigantic, if some experts' predictions about the potential of shale gas are realised. In that case, China's reserves would rival Russia's, andMoscow would have to kiss goodbye to any chance of selling to China. But that remains a pipe dream because shale gas development has barely begun in China, and in the short term President Medvedev, and Gazprom's export chief, his namesake Alexander Medvedev, may both be banking on Hu feeling the heat at home this summer. China's latest electricity crisis has rammed home the importance of finding alternatives to coal, easily China's dominant fuel. China is already placing huge expectations on hydropower, nuclear and wind, and gas could be the best available option. The failure to sign in St Petersburg will rekindle memories of past mutual suspicion, and again raise
uncomfortable questions about why the two countries -- one a huge seller and one a huge buyer of natural resources -punch so far below their weight in bilateral trade. The only major ventures the former Cold War frenemies have undertaken together have been two long-term oil deals, both struck at moments where Moscow had little choice but to accept Beijing's terms. One was $6 billion to help Russia break up the defunct YUKOS oil firm, and which funded six years of cheap oil shipments to China. The second was a $25 billion lifeline to Russia's economy in the depths of the global financial crisis for oil to be supplied along the East Siberia-Pacific Ocean (ESPO) pipeline, a route that opened last year. The fact that the ESPO pipeline got built shows that politicians in both camps can see the strategic importance of the bigger picture, and for the same reason a gas deal is likely, one day.
Sunday, June 19, 2011
Pfizer stop-smoking pill raises heart risk: FDA n Pfizer's
Chantix linked to more heart attacks FDA n Pfizer must test cardiovascular safety of Chantix FDA n Chantix already linked to psychiatric side effects WASHINGTON: Pfizer Inc's (PFE.N) stop-smoking drug Chantix can lead to a small increase in cardiovascular problems such as heart attacks for patients who already have cardiovascular disease, U.S. drug regulators said on Thursday. The Food and Drug Administration is changing the label for Chantix after reviewing the results of a clinical trial. An independent randomized trial of 700 smokers with cardiovascular disease who were treated with Chantix or a placebo showed that Chantix was effective in helping paients quit smoking for as long as one year. However, patients who took the pill were also slightly more likely to have a heart attack or
other adverse cardiovascular event versus patients on a placebo. Many smokers who try to quit do so to prevent the risk of heart attacks, which may now be associated with Chantix. "The known benefits of Chantix should be weighed against its potential risks when deciding to use the drug in smokers with cardiovascular disease," the FDA said in a statement. The FDA said it is also requiring Pfizer to evaluate the cardiovascular safety of Chantix by conducting a large, combined analysis of randomized, placebo-controlled trials. Pfizer's non-nicotine pill has already come under fire for psychiatric side effects, which have crimped global sales and
prompted the FDA to issue a restrictive "black box" warning label for the drug. Investors had high hopes for the drug -- called Champix in Europe -- when Pfizer first launched its smoking-cessation aid in 2006, but reports of serious side effects have prevented strong sales growth. Annual sales are now about $800 million, making the pill a moderate-sized product for the world's biggest drug maker. Chantix has been associated with agitation, depression and suicidal thoughts, and, in clinical trials, linked with nightmares. Psychiatric symptoms have occurred in people without a history of mental illness and have worsened in people who already had mental illness.
UCB to pay $34.4 mln over illegal drug promotion n Illegal drug promotion occurred in 2004 in US n UCB to pay $25.8 mln to settle parallel civil case The American unit of Belgian pharmaceutical company UCB SA (UCB.BR) pleaded guilty on Thursday and will pay $34.4 million to settle criminal and civil charges that it illegally promoted a drug for migraines. The company pleaded guilty to one count of promoting the epilepsy treatment drug, Keppra, in the United States in 2004 for
migraine treatment without the necessary approval from the Food and Drug Administration, the U.S. Department of Justice said. The drug was only approved by the FDA to help treat those who have seizures from epilepsy. "Today's guilty plea and UCB's $34 million payout should remind drug companies that try to cleverly
Moody's sees increased pressure on EU drug prices LONDON: Pressure on drug prices in Europe is likely to intensify, especially in countries with big budget deficits, ratings agency Moody's said on Wednesday in a downbeat assessment of the global pharmaceuticals industry. "National health programmes in these countries may seek to impose further drug price cuts to help repair public finances, adding to the negative pressure on pharmaceutical companies' cash flows," senior analyst Marie Fischer-Sabatie said. Drug prices were in the firing line for most of 2010 as European governments tackled runaway budget deficits, with expensive medicines proving a common target for countries including Greece, Spain andGermany. Since the beginning of 2011, governments have announced fewer measures to reduce their medicines bills, but Moody's said pricing pressure had not gone away. "Further price cuts are likely in the future, especially in countries that are facing sovereign debt crises or very large budget deficits," FischerSabatie said. Such measures are likely, on balance, to spur the use of generic drugs, especially since some European countries grappling with major deficits, such as Spain and Portugal, use far fewer generics compared with the United States and even other parts of Europe, she added. Overall, Moody's said its outlook for the global pharmaceuticals industry was negative, with earnings growth expected to slow in 2011 and pressure on profits likely to increase in 2012. -Reuters
7 Takeda shares down after FDA warning on top drug n US
regulator says Actos drug can raise risk of bladder cancer warning should be added to label n France, Germany last week suspended sales of the drug n Says
n Takeda
shares down 1.1 percent vs 0.9 percent fall in Nikkei
TOKYO: Japan's Takeda Pharmaceutical Co shares fell after U.S. regulators said Takeda's Actos diabetes drug can raise the risk of bladder cancer if used for more than a year and that a warning should be added to the top-selling drug's packaging. Last week, France and Germany suspended sales of Actos over similar fears, and attention had shifted to the U.S. Food and Drug Administration, which oversees the biggest market for Actos. "The FDA's action is extremely mild, when compared with the measures taken by France or Germany," said Jefferies analyst Naomi Kumagai. "The FDA is not taking Actos off the shelves or asking doctors to stop prescribing
it. It is merely telling professionals to inform patients of the risk-benefit balance." "This on its own will not have an immediate impact on sales. Still, it is certainly not a positive," she said. Takeda's shares were down 1.1 percent at 3,670 yen after flirting with a three-month low, against the Nikkei's 0.9 percent fall. The FDA, which is conducting an ongoing 10-year study of Actos, said that patients who had the highest cumulative dose of the drug had an increased risk of bladder cancer, but that Actos did not lead to an increased risk of bladder cancer in the study overall. Takeda is set to lose patent protection for Actos in the U.S. market soon, and will
be exposed to competition from generic pills next summer. It said in a statement that it would add the appropriate warnings. Actos, which has captured close to $5 billion in worldwide sales for Takeda, is also under review by the European Medicines Agency, based in London. Its decision could have an impact on the FDA, analysts said. Actos competes with Merck and Co's Januvia and Janumet, which uses a different mechanism. Actos belongs to the same drug class as GlaxoSmithCline's Avandia, which was pulled from the European market and had its use restricted in the United States last September, after studies linked it to heart risks.
split the U.N. sanctions list for Taliban and al Qaeda figures into two, which envoys said could help induce the Taliban into talks on a peace deal in Afghanistan. But despite hopes that talks with the Taliban could provide the political underpinning for the US staged withdrawal from Afghanistan, the discussions are still not at the stage where they can be a deciding factor. Diplomats admit there have been months of preliminary talks between the two sides, but the US has never confirmed any contacts. And so little is known about the exchanges that they have been open to widely different interpretations. There are also many Afghans, among them women's and civil society activists, who fear talks with the insurgents could undo much of the progress they have made since the 2001 ouster of the Taliban design off-label marketing government. The closest anyone in the US establishment has come to publicly acknowledging schemes that we will not efforts to kick-start talks was when Defense Secretary Robert Gates said this month there could be allow them to compromise political talks with the Taliban by the end of this year, if the NATO alliance kept making military patient safety," said U.S. advances on the ground. Attorney Ronald Machen. Afghanistan's neighbors are nervous about plans for a strategic partnership with the United States, The case is the latest settlewhich may include long-term bases on Afghan soil, Karzai also warned. "The issue of strategic partment by a major pharmaceunership deal with US has caused tensions with our neighbors," Karzai said. "When we sign this tical company over touting strategic partnership, at the same time we must have peace in Afghanistan." drugs in the United States for That is unlikely however, as the deal is expected to be concluded in months, and even the most uses that have not been optimistic supporters of talks expect the process to take years. approved by the FDA, If successful, the deal might ease worries among those Afghans who fear the United States will known as off-label promopull out too quickly, leaving a weak, impoverished government to fend off militants, and those who tion. worry the foreign forces they see as occupiers will never leave. President Barack Obama is expected to announce next month how many troops he plans to withdraw from Afghanistan as part of a commitment to begin reducing the US military presence from July and hand over to Afghan security forces by 2014. The United States is on the verge of announcing a "substantial" drawdown of American troops from Afghanistan, Senate Majority Leader Harry Reid said on Friday. "There's going to be a drawdown. I am confident that it will be one that's substantial. I certainly Continued from page 1 No #3 He said that Rs220 million have been allocated for the mainte- hope so," the leading Senate Democrat said during an interview with PBS Newshour. There currently are about 100,000 US troops fighting in Afghanistan, up from about 34,000 when nance of the parliament building whereas just Rs156 million were allocated for Board of Investment. Similarly instead of construct- Obama took office in 2009.-Reuters ing additional parliament lodges, the government should spend Continued from page 1 No #6 the amount for constructing offices for parliamentary members. He said that the government should take immediate measures to resolve the issue as early as possiMoreover the Lower House also approved eight demands for ble. Qamar also told the house that the government and the private sector have launched a number of grants of over Rs505 billion for the Defence Division with major- programmes to provide solar energy to the domestic consumers living in remote areas of the country. ity of votes while rejecting all cut motions, presented by the Responding to a call attention notice moved by Syed Zafar Ali Shah and others, the Federal Opposition. Finance Minister Dr Hafeez Shaikh presented the Minister said that under the Alternative Energy Development Board solar energy has been extended demands of Defence Division in the House. In his cut motion, to Thar and certain areas of Balochistan. PML-N leader Sardar Mehtab Ahmed Khan Abbasi said Pakistan He said that a non-governmental organisation has also solar electrified fifteen hundred homes at needed a competitive defence system. He said resolution of issues Noshki and Dalbadin. He, however, said that the solar energy is only feasible in the areas which are was the preferable way, he added. off-grid and where the transmission lines cannot be taken.-Agencies He opposed the construction of the GHQ in the Capital city. Continued from page 1 No #7 Shahid Khaqan Abbasi said as compared to other sectors, allocation of Rs500 billion for defence was excessive. The spokesperson further said the issue of upgradation of posts was under consideration by a high Ashan Iqbal said over Rs1,800 billion spending on defence and powered committee comprising senior members of Federal Board of Revenue.-APP debt servicing would not lead the country towards progress and prosContinued from page 1 No #8 perity. He said that the nation was proud of soldiers who were sacriThe Karachiites are also facing an acute water shortage due to the absence of electricity. ficing their lives in defending the country's borders. He, however, The daily power outage increased up to 16 hours a day in rural areas of the country. NNI stressed the need for setting objectives of national security for which,
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the Boat Basin police station. Afsar Khan later filed an FIR against Sarfaraz accusing him of attempting robbery and resisting against police. The case was proved wrong and dismissed after the investigations. Police sources said that Sarafarz was carrying an artificial pistol but another FIR was registered against him that stated that he was carrying a real illegal gun. However, after the recovery of artificial pistol, the second FIR was also discarded. In the recent developments, preparations have been made to register a case against the Rangers' party in-charge, SubInspector Rehman for providing original arm to Rangers under Section 13-D. The already arrested accused Afsar Khan, in his earlier recorded statement to the police, said that Shah was trying to rob CID policeman Alam Zaib and his family inside Shaheed Benazir Bhutto Park before he was killed by the Rangers personnel. Zaib, however, told the police that the victim was not trying to rob him or his family and Khan registered a fake case against him, police sources said. At the time of incident, Alam Zaib was present in the park with his girlfriend and not wife, and the two exchanged harsh arguments for the same reason. The investigation and joint interrogation teams have also recorded separate statements of Alam Zaib and his girlfriend. Rangers' sub-inspector and the primary petitioner are already facing charges for registering a fake case against Sarfaraz under Section 182 and 211.-Agencies
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The International Economic Forum is one of the world's leading discussion forums, bringing together prominent politicians, corporate executives and experts to deliberate on key issues of the global economy. During the meeting both the sides agreed to resolve the major defiance of illegal trade between the two countries. The BOI chief opined," The trade which is taking place through informal channels adds additional costs to the traders which are ultimately borne by the end consumers of both the countries". Talking about the reluctance of business community's interaction, the Indian minister stated that this is due to the misperceptions which are impeding such direct contacts which should be cleared through encouragement to the business communities by the leaders of both sides. He also expressed that the visa policies should also be revised to facilitate and encourage the investors. Mandviwala said "We should revive our relations in the context of major economic developments currently taking place in the world and in view of Russia's growing dependence on the eastern world". He added it was essential to increase economic relations with Russia in such a way that the countries of South Asia become an essential part of the revising economic strategy of Russia. The BOI head stated that the trade communities of both sides should have a closer interaction with each other to explore the opportunities in the field of trade and investment. Anand Sharma stated that business communities were encouraged to realise that Pakistan has revised its long positive list of imports other than smaller negative list thereby increasing the opportunities of trade with India. He added that economic prosperity in two countries would bring peace and India wants to see Pakistan a stable and strong country. The BOI chief invited the Indian Commerce Minister to visit Pakistan and encourage Indian business community to come to Pakistan. In the end both sides assured that the initiatives taken by both side in the field of investment and trade will be realized with enthusiasm and warm response.-APP
he said the government should initiate dialogue with all stakeholders. "We have to introduce world-recognised management practices in army as well as civilian organisations to ensure transparency and good performance", he said. He suggested that Survey of Pakistan should be brought under either the Agriculture Ministry or the Meteorological Department. He said that $5 billion could be earned if GHQ land in Islamabad was auctioned. As well three demands for grants worth Rs5.7 billion for the Communication Ministry were also approved with majority of votes while rejecting 29 cut motion presented by the Opposition. Finance Minister Dr Hafeez Shaikh presented the demands in the House while the Opposition members Dr Nelson Azeem, Chaudhry Saeed Majeed, Qudsia Arshad and others submitted their cut motions. Opening the debate on cut motions, PML-N's Ahsan Iqbal said that National Highway Authority (NHA) has failed to provide modern communication facilities to the masses. He suggested that effective system should put in place to check overloading on all highways. PML-N Chaudhry Saood Majeed said that the government should devise a concrete policy for communication in the country as it was pivotal for progress and prosperity of the country. He said that National Highway Authority (NHA) has been affected due to corruption and added accountability system should be devised to check this problem. Shahnaz Salim said that recruitments in NHA were not being made on merit and people were appointed on hefty perks and privileges with out following set procedure. She alleged NHA awarded toll plazas contracts to blue-eyed people.-APP
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with non-refundable processing fee of $2,500 or equivalent Pakistani Rupees containing no more than 15 pages, a statement of technical qualifications comprising experience of equity research, sales and distribution capabilities, commitment to Privatisation Program, knowledge of the Oil & Gas Industry and PPL, advisory to entities for domestic & international listings, competence and commitment of the team. The Request For Proposal ("RFP") package inviting Technical and Financial proposals would be dispatched/e-mailed to the IPs as and when EOIs are received. The last date for the submission of the Technical & Financial proposals is July 20, 2011.-NNI
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Taliban movement are not yet based on a certain agenda or physical (meetings), there are contacts established." The US Embassy in Kabul declined immediate comment. Karzai was speaking the day after the U.N. Security Council
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staying not far from there on the Syrian side of the border with Turkey. He said those refugees were relying on a bakery in Bdama forto feed themselves. Abdul-Rahman said now the refugees will not be able to go to Bdama to get bread. The uprising has proven to be the boldest challenge to the Assad family's 40-year dynasty in Syria. Assad, now 45, inherited power in 2000, raising hopes that the lanky, soft-spoken young leader might transform his late father's stagnant and brutal dictatorship into a modern state. But over the past 11 years, hopes dimmed that Assad was a reformist, but rather a hardliner determined to keep power at all costs. On Friday, 12 people were killed in the central city of Homs, two in the eastern town of Deir elZour and two in the Damascus suburb of Harasta, one in the northern city of Aleppo. A boy believed to be 16 years old, who was in the streets protesting, and another person died in the southern village of Dael, the Local Coordination Committees said.-Reuters
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and failed than not to have tried at all. And do not become jaded like people of my generation instead, be optimistic and challenge conventional thinking." He noted that finance/capital was not a constraint. "It is the limitations of our imagination and willingness to take a risk. Of course, you need a lucky break but a brilliant idea will invariably get one', the SBP Governor added. Mr. Kardar observed that it was a special breed of people that voluntarily takes risk. 'Such a career will not be easy to launch as you may end up following many dead leads; you will have to do a lot of leg-work, and there is no guaranteed reward; you will not have the luxury of going into the same office every morning, but will have to explore a new path every day, he said. It might sound positively intimidating but this can be the difference between living a life that means something and living a life with nothing more than good means, he said. He said that it was the difference between walking down the road less travelled as opposed to a well-trodden path; of taking risks over tip-toeing around life'. SBP governor told his audience to "never lose faith". Even if you have no connections; talent, energy and ability to work hard are the best cards that you will be holding even in this society in which we know connections are more potent factor for personal progress. For ensuring success you need to back it up with hunger coupled with a determination to defy the social and economic factors that discourage or fail to facilitate development of entrepreneurial behavior." He stressed upon the young graduates to work hard to earn the respect of their peers and subordinates, especially in an increasingly competitive environment. "'It is hard work that can even turn failure into success. With sheer determination you can take on challenges, unfazed', he said, adding that there were no short cuts in life", he said. SBP governor observed that life was about making choices involving trade-offs without any guarantees of success. 'But there is nothing like making it in your own homeland - that is where you get a real kick. That is why even those who have done well across the seas yearn for recognition here. Exploit the spate of opportunities available to you if you look around', he added. Kardar expressed the hope that the young LUMS graduates would remain in Pakistan to serve their country. 'This may not seem very exciting at this point, but once you get a better sense of the economic and political challenges facing the developed world in the next 18 months, Pakistan will end up looking really good', he added. 'You have a wonderful start to life, and you owe this to yourself and let me use a hackneyed term, your country, that gave your parents the ability to give you this start. Now it's time to give back. This country and its less fortunate people need you,' the SBP governor added.-NNI
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Malik says CIA to be stonewalled in Pak Says drug, land mafias responsible of unrest in Karachi Says 5,000 passports stolen in Khi cancelled ISLAMABAD: Zhang Hongwei, Chirman Orient Group of China met Federal Minister for Finance Abdul Hafeez Shaikh in Finance Ministry.-APP
Gilani OKs appointment of Hamad Ghazavi as Deputy MD, PTV
Commonman to have his day: PM ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani has said that the government is committed to provide relief to the common people and the Budget for the fiscal year 2011-12 has been prepared on this line. He said that the public and media have acknowledged it as a balanced and pro-people Budget. According to press release issued here, the Prime Minister was talking to Khawaja Muhammad Khan Hoti, MNA who called on him at PM's House on Saturday. The Prime Minister said that the additional allocation of
resources to the provinces would be spent on the public welfare schemes to address the pressing problems of the common man. He hoped that the Opposition would appreciate positive steps of the government taken in the larger interest of the country. Khawaja Muhammad Khan Hoti, MNA thanked the Prime Minister for his keen interest in the public welfare. He also discussed the debate and suggestions put forth by the parliamentarians on various budgetary proposals. Overall political situation was also discussed in
the meeting. Meanwhile Prime Minister approved the appointment of Hamad Ghazavi as Deputy Managing Director of PTV. PM while interviewing Hamad Ghaznavi at PM House Saturday morning for the post of Deputy MD, PTV has said that public media organisations have to adopt modern and innovative methods of broadcasting to enhance their reach to the masses. The Prime Minister approved his appointment after the interview, according to PM House spokesman.-Online
Syria blitzes village bordering on Turkey BOYNUYOGUN REFUGEE CAMP, Turkey: Syrian troops backed by tanks and firing heavy machine guns swept into a village near the Turkish border Saturday, the latest in a series of intensified army operations in the northwest where there have been heavy clashes between loyalist troops and defectors. The Local Coordination Committees, a group that documents anti-government protests, said troops backed by six tanks and several armored personnel carriers, entered Bdama in the morning. The village is about 12 miles (20 kilometers) from the Turkish border. The British Foreign office urged Britons in Syria to leave the country "immediately." In a statement posted on the website of the British Embassy in Syria, the Foreign Office said Britons should leave "now by commercial means while these are still operating." It said those who chose to remain in Syria should know
30-year rainfall record broken ISLAMABAD: Heavy rain blessed the twin cities of Rawalpindi and Islamabad, Lahore, AJK and different areas of the country on the night between Friday and Saturday, bringing a pleasant change in the weather to some extent. According to Metrological Department, the recent showers in different areas of the country have broke 30 years old record of rainfall in the month of June. 53 millimeter rain was recorded in Lahore. There were also reports of rain in Faisalabad, Balakot, Jhelum, Sialkot, Kotli, Mangla, Murree, Kakol and Rawlakot. Highest level of 59mm of rain was recorded in Syedpur area of Islamabad. The rain had also disturbed flight schedule in Lahore and Islamabad. According to PIA authorities, most flights bound for Lahore were re-scheduled or sent to Islamabad, causing problems for the passengers. A flight bound for Bangkok took off one hour late and another flight for Islamabad had been canceled.-Online
the British Embassy in Damascus would be able to provide a normal consular service in the event of a "further breakdown in law and order." Britain, France, Germany and Portugal are also sponsoring a draft resolution at the U.N. Security Council to condemn Syria. The attack on Bdama came a day after Syrian forces swept into Maaret al-Numan, a town on the highway linking Damascus, the capital, with Syria's largest city, Aleppo. Saturday's assault on Bdama was about 25 miles (40 kilometers) to the west. Also Saturday, the committees raised the death toll in Friday's anti-govnerment protests to 19. The three-month uprising has proved stunningly resilient despite a relentless crackdown by the military, pervasive security forces and pro-regime gunmen. Human rights activists say more than 1,400 Syrians have been killed and 10,000
detained as President Bashar Assad tries to maintain his grip on power. Bdama is adjacent to Jisr alShughour, a town that was spinning out of government control before the military recaptured it last Sunday. Activists had reported fighting in Jisr al-Shughour between loyalist troops and defectors who refused to take part in a continuing crackdown on protesters seeking Assad's ouster. The fighting in the area, that started nearly two weeks ago, displaced thousands of people including some 10,100 who are sheltered in Turkish refugee camps. On Friday, U.N. envoy Angelina Jolie traveled to Turkey's border with Syria to meet some of the thousands of Syrian refugees. Rami Abdul-Rahman of the Syrian Observatory for Human Rights told The Associated Press that the takeover of Bdama will affect about 2,000 Syrian refugees who are See # 9 Page 7
26/11 case trial put off for a wk RAWALPINDI: The trial of LeT's Zakiur Rehman Lakhvi and six other suspects charged with involvement in the Mumbai attacks was adjourned on Saturday for a week as no judge was available to conduct proceedings in the Rawalpindibased anti-terrorism court hearing the case. Rana Nisar Ahmed, who had been hearing the case since he was appointed judge of Rawalpindi's anti-terrorist court no. III in November 2010, was transferred shortly after the last hearing on June 11. No new judge has been appointed for the court though a hearing was scheduled for today, sources told PTI. The case was placed before a duty judge, who adjourned it till June 25, they said. The sources said it was expected that a new judge would be appointed before the next hearing. Ahmed's transfer marked the fourth change of the judge conducting the trial of the suspects. Ahmed had also been conducting the trial of five suspects charged with involvement in the 2007 assassination of for-
mer premier Benazir Bhutto. He was transferred hours after he issued a permanent arrest warrant for former President Pervez Musharraf for failing to cooperate with investigators probing Bhutto's assassination. Ahmed had constantly pushed prosecutors to ensure Musharraf's appearance in court. Experts said Ahmed's sudden transfer could affect proceedings in the Mumbai attacks case as any new judge will need time to acquaint himself with the details of the complex case. The trial has been marred by delays and technical hitches since proceedings began in 2009. At least one of the three judges who previously heard the case was changed after he received threats from militant groups, sources said. Shahbaz Rajput, one of the lawyers defending the seven suspects, said the repeated changes of the judge was affecting proceedings and delaying the case. "The accused are suffering for no reason," he told PTI.-Online
SC roster for next week's hearings issued ISLAMABAD: Supreme Court (SC) has issued roster in respect of the cases to be taken up for hearing during the next week from June 20 to 24. As per media reports 2 benches will hear the cases at Islamabad, 2 in Lahore registry and one bench in Peshawar. Islamabad Bench No 1 will comprise Chief Justice of Pakistan (CJP) Iftikhar Muhammad Chaudhry, Justice Tariq Pervez and Justice Amir Hani Saleem and Islamabad Bench No 2 will be consisting of Justice Javed Iqbal and Justice Nasirul Mulk. Lahore Bench No 1 will include Justice Mehmood Akhtar, Justice Shahid Siddiqui and Justice Asif Saeed Khosa while Lahore Bench No 2 will comprise Justice Arif Hussain Khilji and Justice Saqib Nisar. Peshawar bench will consist of Justice Anwar Zaheer Jamali and Justice Ghulam Rabbani.-Online
Kardar tells new generation to take risk KARACHI: Governor State Bank of Pakistan (SBP) Shahid H Kardar has advised the new generation of Pakistan to take risk, be an outlier and 'make your mark' in society. Speaking at the Convocation of the Lahore University of Management Sciences (LUMS) on Saturday, he observed that those who have a fire in their belly and the urge and determination to pursue their dreams and take on the world rather than simply play safe would be the great achievers. 'However, whichever path you choose to traverse, remember, in this highly competitive age of specialization you can take up any profession and be a success, provided you are the best at it There is always room at the top - at the bottom you get trampled over', he told the LUMS graduates. Kardar opined that "outliers change society and history, and often for the better. 'Yes, not all of you can become outliers, but some of you will." It takes the strength of one's conviction to veer away from the beaten path and explore; and when you explore something new, you learn much more,' he added. He advised the graduating students of LUMS, "do not be daunted by risk or the fear of failure - it is better to have tried See # 10 Page 7
Indian High Commission vehicle hits, injures youth ISLAMABAD: Reportedly Indian High Commission's car has hit and injured a youngster here on Saturday. The injured youngster namely Amir Shahzad was immediately rushed to PIMS hospital for first aid treatment. According to media reports, Shehzad was walking down the Nazim Uddin road in sector F6/1 when the car of Second Secretary of Indian High Commission hit him.-Online
ISLAMABAD: Federal Interior Minister Rehman Malik has made it clear that no foreign agency including United States Central Intelligence Agency would be allowed to operate in the country, adding that, Supreme Court's verdict on Saleem Shahzad and Sarfraz Shah would be implemented. While talking to media men outside the Parliament house, the minister said, drug and land mafias are responsible for unrest in Karachi. Those involved in Karachi unrest will be taken to task. The Rangers including Former DG Rangers have played an important role to clean Karachi from target killings and crime. During last 5 months, 48 Police officers lost their lives in target killings. The media should portray our brave soldiers as heroes, he said. The minister while condemning the murder of
Saleem Shahzad, a journalist, said that the agencies and law enforcement agencies should not be criticised without any justification. The date of Saleem Shahzad's cell phone was not erased and it cannot be deleted, he said. The case of Saleem Shahzad murder was in the Supreme Court and its verdict would be obeyed. Replying to a question, he said, no foreign agency would be allowed to operate in any area of the country. Pakistan is a sovereign state, he said, adding that, no compromise would be made on national security. Foreigners residing illegally in Pakistan are being expelled, he said. Over 5000 Passports, which were stolen from Karachi office, were cancelled to avoid the possibility of these passports falling into the wrong hands, he said. Investigation with regard to stolen of
Passports is underway, he added. Malik said that those passports could have been used by terrorists and smugglers. Yesterday Malik directed Director General of Immigration and Passport to terminate the stolen passports. He ordered probe into alleged involvement of staff and other security aspects. The Interior Minister also called for reports into possession of passports without deploying security. He feared that these passports could fall into the hands of militants. No progress had been made so far regarding theft of over 5, 000 passports from KTAA on June 5. Out of these, 25 passports were of foreigners. When asked about Former Home Minister Sindh Dr Zulfiqar Mirza, he said, he is a brave man and he respects him.-Agencies
Abbottabad commission likely to be restructured ISLAMABAD: After severe criticism of PML-N and other opposition parties and refusal of Justice (retd) Fakhruddin G Ibrahim to become part of commission the government has decided to reconstitute the commission to make it viable. According to reliable sources, the government had constituted a five members commission headed by Supreme Court Judge Justice Javed Iqbal in the light of the joint resolution passed in the incamera session of the parliament to probe the Abbottabad incident in which Osama Bin Laden was killed in a unilateral US action. The commission consisted of Justice (Retd) Fakhruddin G Ibrahim, Lt Gen (retd) Nadeem Ahmed, Abbas Khan and
Ashraf Jahnagir Qazi. However after severe criticism by PML-N and other opposition parties and refusal of Fakhruddin Ibrahim to become part of the commission the commission was shelved. Govt technocrats held several sessions and analysed various suggestions by PPP senior members and reached to the conclusion that the commission must be reconstituted. Sources said that prior to the forming of new commission the opposition leader Ch Nisar would also be consulted after which the commission would conduct its probe and would present is report and recommendations to the govt. Sources told that PML-N
wants inclusion of Justice (retd) Bhagwan Das and SCBA Chairperson Asma Jahangir into the commission and have started lobbying in this regard. In this regard Federal Law Minister Maula Baksh Chandio said that government is continuing consultation regarding forming of new commission. He said that Abbottabad operation and attack on PNS Mehran base are not regular incidents and they should be probed and their inquiry would be completed. In response to a question he said that Abbottabad commission is not yet completed but it would be completed and if deemed necessary consultation with Chief Justice of Pakistan would also be held.-Online
Record cotton reckoned in yr ISLAMABAD: Pakistan's Ambassador to China Masood Khan on Saturday said Pakistan was expecting record cotton production of over 15 million bales in the 2011-12 crop year as farmers were sowing in a wider area after domestic prices doubled a year ago. In an interview with China Textile News, a Chinese language daily which focuses on textile related matters, the Ambassador said Pakistan achieved record cotton production of 14.6 million bales in 2004-05, but the output fell sharply after that until now. The ambassador said the government was targeting a sowing area of 8.5 million acres, up by 8 per cent from the last year, working out a plan to prevent pest and virus attacks, and ensuring seed availability. He said Pakistan was the fourth largest producer and third largest consumer of cotton. The textile sector contributed 60 per cent to the total earnings of the country, accounts for 46 per cent of the manufacturing and provides employment to 38 per cent of the manufacturing labour force. Cotton and textile account for about two-thirds of the country's exports and they provide livelihood to more than 10 million families, he added. Ambassador Khan said increased cotton production was necessary to achieve 4.2 per cent growth rate target in
the next financial year starting in July 2011. "Our growth rate slipped to 2.4 per cent last year due to the huge losses suffered by our economy on account of massive floods. Gains in cotton can redeem the economy," he said. "The good news is that Pakistan's textile industry had made its mark in the global market in the past six decades; and it has proved its continued strength even in the post-quotas era. "Remarkably, it has survived two serious challenges - the international financial crisis and the devastating floods last year," he said. The Ambassador emphasised that in order to ensure robust growth of our textile industry, the government was paying attention to the development of support industries of machinery, dyes and chemical. Talking about PakistanChina bilateral trade, Ambassador Masood Khan said it has seen positive trends on all fronts. Last year, for instance, the overall volume rose to $8.7 billion registering a cumulative year on year growth of 28 per cent -Pakistan's exports increased by 37.44 per cent. "We want to move forward with speed and efficiency to achieve the overall target of $15 billion in the next three to four years. Secondly, we are taking measures to reduce the trade deficit of $5.2 billion in China's favour. For that pur-
pose, we have invited official Chinese purchase missions to visit Pakistan and place orders for Pakistani products for Chinese market," he said. In 2009, he said, the global shortage of cotton caused by a shortfall in Chinese crops led to an exponential growth in the external demand for Pakistan cotton yarn. China itself procured huge quantities of yarn from Pakistan. This trend continued in 2010 though at a slightly lower pace. He said overall, textile related exports to China are 65 per cent of the total Pakistani exports to China. In 2010, for instance, Pakistan exported cotton yarn, fabrics, cotton, cotton wastes, home textiles, garments, knitted fabrics, and carpets to China in big quantity. He said agreements have been signed between Pakistani and Chinese institutions for development of hybrid cotton seeds, including of BT cotton, to improve the yield and quality of cotton in Pakistan. Ambassador Khan said next year, Pakistan is launching the next Five Year (2012-1216) Pak China Development Programme on Trade and Economic Cooperation (FYDP). This programme includes collaboration on an Institute of Textile and Clothing. Ambassador Masood Khan said Pakistan and China face similar challenges related to higher labour wages and procurement of raw material.-NNI
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