thefinancialdaily-epaper-31-07-2011

International Karachi, Sunday, July 31, 2011, Shaban-ul-Muazzam 28, Price Rs12 Pages 8

Sharif flays govt for disobeying judiciary See Page 8 Economic Indicators $18.30bn 13.92% $24.83bn $40.41bn $(15.59)bn $542mn $11.20bn $1.92bn Rs 1598bn $59.54bn Rs 5957bn $758mn -2.28% 4.20% $1,051 176.77mn

Forex Reserves (23-July-11) Inflation CPI% (Jul 10-Jun 11) Exports (Jul 10-Jun 11) Imports (Jul 10-Jun 11) Trade Balance (Jul 10-Jun 11) Current A/C (Jul 10-Jun 11) Remittances (Jul 10-Jun 11) Foreign Invest (Jul 10-Jun 11) Revenue (Jul 10-Jun 11) Foreign Debt (Mar 11) Domestic Debt (Jun 11) Repatriated Profit (Jul 10 - Jun 11) LSM Growth (May 11)

GDP Growth FY12E Per Capita Income FY10 Population

Portfolio Investment SCRA(U.S $ in million)

-46.49 -46.49 -3.90 2768

Yearly(Jul, 2011 up to 29-Jul-2011) Monthly(Jun, 2011 up to 29-Jul-2011) Daily (29-Jul-2011) Total Portfolio Invest (16-Jul-2011)

NCCPL (U.S $ in million)

FIPI (29-Jul-2011) Local Companies (29-Jul-2011) Banks / DFI (29-Jul-2011) Mutual Funds (29-Jul-2011) NBFC (29-Jul-2011) Local Investors (29-Jul-2011) Other Organization (29-Jul-2011)

01, 2011.

This was announced by Yaseen Anwar, Acting Governor, State Bank of Pakistan, while unveiling the Monetary Policy Statement at a press conference held at SBP, Karachi on Saturday.

The key parameter in this assessment is the outlook of inflation that indicates that average inflation in FY12 is expected to remain in line KARACHI: The State Bank of its policy rate by 50 basis points to with the announced target, he said, Pakistan (SBP) has decided to reduce 13.5 per cent with effect from August adding that no adjustment in the inter-

13.53% 13.78% 13.92% 13.50% 13.79% 13.63% 13.81% 14.15% 14.25% 13.91% 13.92% 14.01% 14.24% 14.32% 14.41%

T-Bills (3 Mths) 27-Jul-2011 T-Bills (6 Mths) 27-Jul-2011 T-Bills (12 Mths) 27-Jul-2011 Discount Rate 30-Jul-2011 Kibor (1 Mth) 30-Jul-2011 Kibor (3 Mths) 30-Jul-2011 Kibor (6 Mths) 30-Jul-2011 Kibor (9 Mths) 30-Jul-2011 30-Jul-2011 Kibor (1 Yr) 30-Jul-2011 P.I.B (3 Yrs) 30-Jul-2011 P.I.B (5 Yrs) 30-Jul-2011 P.I.B (10 Yrs) 30-Jul-2011 P.I.B (15 Yrs) 30-Jul-2011 P.I.B (20 Yrs) 30-Jul-2011 P.I.B (30 Yrs)

Commodities Crude Oil (brent)$/bbl Crude Oil (WTI)$/bbl Cotton $/lb Gold $/ozs Silver $/ozs Malaysian Palm $ GOLD (NCEL) PKR KHI Cotton 40Kg PKR

116.74 95.70 101.77 1,631.20 40.11 1,050 44,844 5,894

Open Mkt Currency Rates Symbols

Buy (Rs)

Sell (Rs)

Australian $ 94.10 Canadian $ 89.60 Danish Krone 16.25 Euro 123.30 Hong Kong $ 10.85 Japanese Yen 1.091 Saudi Riyal 22.88 Singapore $ 71.00 Swedish Korona 13.40 Swiss Franc 100.00 U.A.E Dirham 23.38 UK Pound 140.80 US $ 86.15

95.10 90.80 16.60 124.50 11.00 1.116 23.08 72.00 13.60 101.00 23.59 142.20 86.45

Inter-Bank Currency Rates Symbols

Buying

Selling

TT Clean

TT & OD

Australian $ 94.94 95.16 Canadian $ 90.37 90.58 Danish Krone 16.70 16.74 Euro 124.21 124.49 Hong Kong $ 11.08 11.10 Japanese Yen 1.115 1.117 Saudi Riyal 23.03 23.08 Singapore $ 71.73 71.89 Swedish Korona 13.76 13.79 Swiss Franc 109.81 110.07 U.A.E Dirham 23.51 23.56 UK Pound 141.77 142.10 US $ 86.45 86.63 Weather Forecast Cities

Islamabad Karachi Lahore Faisalabad Quetta Rawalpindi

Max-Temp Min-Temp

35°C 35°C 33°C 34°C 37°C 36°C

20°C 29°C 29°C 30°C 15°C 20°C

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est rate would have entailed further tightening of monetary policy in real terms, which is not warranted given the decline in private investment.

Anwar said that despite fiscal slippages, the government has adhered to restricting the stock of its borrowings from SBP to Rs1155 billion (on cash basis). 'In fact, the government retired these borrowings compared to both the end-June 2010 level as well as See # 3 Page 7

Gilani launches sale of plots

Govt plans 277 new units in Textile City

GDR update

Money Market Update

See Page 8

Figures say inflation expected to remain within target announced for FY12; Govt committed not to borrow from SBP this fiscal

Change 92.32 68.32 130.49 12.32 13.42 7.05 58.02 96.87

$.Price PKR/Shares Symbols 112.38 MCB (1 GDR= 2 Shares) 2.60 142.98 OGDC (1 GDR= 10 Shares) 16.54 43.22 UBL (1 GDR= 4 Shares) 2.00 36.74 LUCK (1 GDR= 4 Shares) 1.70 39.21 HUBC (1 GDR= 25 Shares) 11.34

See Page 8

China, India oil demand spurring price: US

Acting Governor announces MPS for Aug-Sept:

0.16 -7.66 8.11 1.15 -0.42 -1.29 -0.05

Close 12,190.37 9,833.03 22,440.25 18,197.20 2,627.99 2,701.73 5,815.19 12,143.24

See Page 8

Justice Javed rejects clash of State organs

SBP cuts key rate by 50bps to 13.5pc

Global Indices Index KSE 100 Nikkei 225 Hang Seng Sensex 30 ADX SSE COMP. FTSE 100 Dow Jones

UN adds Pakistani Taliban to ban list

KARACHI: Prime Minister Syed Yousuf Gilani addressing the launching ceremony of Pakistan Textile City at Governor House. -APP

KCR comes to life as Japan OKs $1.8b KARACHI: Practical work on the much delayed Karachi Circular Railway (KCR) project may start from September this year as the Ministry of Finance has resolved the issue of "re-lending" of around $1.58 billion by the Japanese government.

The project which was feared to be unviable under a proposed way of releasing funds to the project from Japan while facing almost an 18 per cent reduction under the head of various charges, has been saved by the ministry, sources said.

The release of funds from the federal government to Karachi Urban Transport Corporation (KUTC), the vehicle for the implementation of KCR project, was feared to face a 6.8 per cent "risk rate" cut and an almost 12 per cent "interest

rate" cut, making the total deduction 18 per cent from the approved fund of $1.58 billion, which could make the project unviable. However, the ministry, as it was proposed by experts, has now decided to transfer the foreign funds through Pakistan Railways (PR), a federal subject to avoid the 6.8 per cent risk rate.

According to sources the technical issue was resolved in a meeting held in the ministry this month.

According to sources, after the fresh development, a Japanese team would visit the city in September to finalise the preparation to relocate the thousands of affected of the project to a new location in Malir area.

Though there was an easy way to save the huge amount See # 6 Page 7

China to invest into Pak energy ISLAMABAD: Pak-China Joint Energy Working Group (JEWG) will discuss 19 energy projects in order to enhance cooperation in the energy sector between the two countries and to meet the future energy, water and power requirements in Pakistan.

The first meeting of JEWG will be held in Beijing on August 01 and Aug 02. Federal Minister for Water and Power, Syed Naveed Qamar, who is Chairman of the JEWG from Pakistan side, will lead the Pakistani delegation for this important inaugural session.

According to a press release issued here on Saturday, an Energy Working Group was constituted pursuant to an MoU between Pakistan and China to promote cooperation in the field of energy.

Under MOU, which was proposed by National Energy Administration of China to

establish bilateral energy cooperation mechanism, the Energy Working Group was assigned the task of carrying out cooperation in the areas including oil and gas, coal, conventional power, nuclear and renewable energy etc.

Moreover, during the visit of the Chinese Premier Wen Jiabao in December 2010, under Energy Cooperation mechanism, it was decided that China will provide financing and cooperation for conventional, renewable and civil nuclear energy projects, to be identified by Pakistan.

Both the countries have termed JEWG as an important opportunity which will further strengthen the bilateral relations between Pakistan and China.

The Pakistani delegation led by Syed Naveed Qamar will discuss four power generation See # 8 Page 7

11 killed in Quetta sectarian attack QUETTA: Gunmen opened fire on a vehicle in Quetta on Saturday, killing 11 people and wounding three in a suspected sectarian attack, police said.

A woman was also among the dead in the attack in Quetta, the provincial capital of Balochistan.

"The vehicle was passing by a bus stand when gunmen riding in another car opened fire, killing at least 11 people and wounding three," city's police chief Hamid Shakeel told Reuters. Another police official said it appeared to be a sectarian attack as all those killed were Shi'ite Muslims.

Saturday's attack came a day after eight people were killed and about 25 wounded in See # 7 Page 7

KARACHI: Prime Minister Syed Yousuf Raza Gilani has said that the government recognizes the pivotal role of the textile sector plays in Pakistan's economy.

"As the largest industry, it constitutes about sixty percent of our exports and provides jobs to more than fourteen percent of the workforce", he said this while addressing the ceremony, marking the launch of sale of plots at the Pakistan Textile City -Karachi.

Removal of the quota system

by WTO opened business opportunities for the global textile sector, he said, adding that, regional textile exporting countries like China, India and Bangladesh increased their market shares significantly, while Pakistan has yet to capitalize on these opportunities.

We are blessed with natural resources, cotton crop, unique geo-political location, a rich history of quality textile products and a large labour force to place ourselves as a global leader, in this sector, Gilani said. Problems facing our industry include supply of cheap contamination-free cotton, low skill levels of labour force, power shortages and above all inadequate infrastructure, he said.

Infrastructure development, he said, therefore, is critical for growth and acts as a catalyst for generating economic activity.

The absence of reliable infrastructure offering un-interrupted utilities has been one of the

Gilani phones Altaf Hussain

PM urges parties to help restore peace KARACHI: Prime Minister Syed Yousuf Raza Gilani reiterated that all the political forces of the country must strive together for peace and security throughout the country in order to create conducive environment to step up the pace of development.

The people, he added, are looking towards the elected representatives to help resolve their problems and it is only possible by adopting a collective approach.

See # 4 Page 7 major causes of decline in textile exports, especially valueadded items in the post-WTO era.

It is imperative to offer the textile sector modern reliable infrastructure at par with international standards, Gilani said.

Pakistan Textile City is being established as a bench-mark industrial zone providing stateof-the-art infrastructure to the value-added textile sectors, he added.

WAH, Heavy Industries Textila Pak, US, Afghan talks Pak arms dealers on August 2 ISLAMABAD: The tripartite talks among Pakistan, Afghanistan and the US would be held on August 2 (Tuesday) in Islamabad.

According to media reports, President Obama's Special Representative for Pakistan and Afghanistan Mark Grossman would participate in the talks, while Foreign Minister Hina Rabbani Khar would represent Pakistan and Afghan deputy foreign minister would participate on behalf of his country.

The issues like US forces pullout from Afghanistan and dialogue with the Taliban would be discussed during the tripartite talks.

The militants' attacks in Pakistani areas from Afghanistan's side would also come under discussion during the talks. Mark Grossman would also meet Pakistan's political and military leadership, including the Prime Minister and Chief of Army Staff.

seek fiscal liberty

ISLAMABAD: Three important defense institutions, supplying equipment to country's armed forces are facing financial crunch and their bosses have demanded administrative and financial autonomy from federal government.

Pakistan Ordinance factory WAH, Heavy Industries Taxila and others important institutions were heading to financial crunch just because of some ban slapped by federal finance ministry on them to export defense equipment, sources informed Online.

The boss of these institutions has demand of the Government to given administrative and financial autonomy to them to overcome financial crisis.

Chairman National Assembly Standing Committee on Defense Production Sheikh Aftab when contacted said that

"Once fully operational, it would help increase our exports significantly as more than 277 new units will be established in 1250 acres of the Textile City, he added.

Moreover, Pakistan Textile

unnecessary ban slapped by finance ministry was the biggest hurdle in Performance of these defense institutions.

He also backed the demand of these institutions to give them financial and administrative autonomy.

The institutions should be given incentives to export equipment, he said. If free hand was not given to these institutions then they can not move forward and can not overcome financial crisis, he added.

Replying to a question, he said, Karachi Ship Yard has managed to overcome its financial crunch. Another shipyard, he said, should be constructed alongside Port Qasim because the existence space was very short there, he said, there is a dire need of construction of shipyard at Gwadar, he added. Agencies

City would provide an ideal synergistic environment to local players in the industry to join hands with international partners for establishing joint ventures and benefit from the strategically located facilities at Port Qasim, he said.

Some of the direct impacts of the Textile City on our economy will be direct employment to over 80,000 people at full capacity; Investment of around See # 5 Page 7

USAID to help Pak saving 1000MW electricity ISLAMABAD: United States Agency for International Development (USAID) has launched Tube-well Efficiency Improvement Programme (TWEIP) that can save about 1000 MW electricity in Pakistan. USAID is providing 50 per cent financial assistance to replace highly inefficient irrigation tube-well motorpumps with more energy efficient motor-pumps to reduce demand and save energy.

USAID's Acting Deputy Director John Morgan while launching the public campaign for TWEIP project for Agriculture sector here today said that the campaign is sponsored by the US Government as part of its commitment to support Pakistan's energy sector.

John Morgan said about See # 9 Page 7

2

Sunday, July 31, 2011

NTC to hold hearing on tariff protection to ETP ISLAMABAD: The National Tariff Commission (NTC) would hold a public hearing regarding the Tariff Protection to the Indigenous Industry Manufacturing Electrolytic Tinplate (ETP) here on August 10.

According to a press release issued by the NTC here, Siddique Sons Tinplate Limited Karachi (applicant), a manufacturer of Electrolytic Tinplate (ETP) had approached the Commission for tariff protection through reduction of customs duty and sales tax on import of raw material i.e. Tin Mill Black Plate (TMBP) (PCT No. 7209.1810) used by the applicant.

The applicant's request is based on the following grounds: That Custom duty on secondary quality ETP is 20% and its major raw material i.e. secondary quality Tin Mill Black Plate (TMBP) is subject to

15% custom duty.

This differential of 5% does not provide required protection to the applicant's industry, which has to bear additional cost due to its locational disadvantage.

It added that there is also an anomaly in case of levy of Sales Tax which is levied 19.5% omni-port of applicant's major raw material, TMBP while on the finished goods the same is levied 16%.

In the light of the above, the applicant has requested for reduction of customs duty on import of TMBP from 15% to 0-5% and sales tax from 19.5% to 16%.

Accordingly, as per the Public Notice dated July 23, 2011, NTC has initiated an inquiry and would welcome views, suggestions and proposals from all parties having an interest in the business relating to or associated with the imports, manufacturing and marketing of

Electrolytic Tinplate.

The NTC advised the concerned parties for their views /suggestions may be sent within fifteen days of publication of this press release in newspapers, to the Secretary, National Tariff Commission.

The NTC added that a public hearing on the issue is scheduled to be held on August 10, 2011 at 11.00 a.m. in the Committee Room of National Tariff Commission, Islamabad.

Further, all parties having an interest in the business relating to or associated with the imports, manufacturing and marketing of Electrolytic Tinplate are hereby advised to get themselves registered with NTC latest by August 05, 2011 for participation in the public hearing by providing names of the participants with their telephone numbers (Cell/LL) and fax numbers to the Director (Inv-1) on fax No. 0519221205.-APP

PTA demands ban on livestock exports KARACHI: The Chairman Pakistan Tanners Association (PTA) Aziz Ahmed has demanded of the government to ban livestock export for an indefinite period in order to save leather sector in Pakistan and stabilize meat prices.

While welcoming the decision by ministry of commerce to ban exports of livestock until Eid-ul Azha, said that banning livestock exports for about three months is appreciable but it's not enough to stabilise the prices of mutton and beef which have already crossed all barriers.

He pointed out that meat prices have soared to double in just one year's time and if the uncontrollable exports and smuggling would be continued, the day is not too far when consumers would be facing the prices of mutton skyrocketing at Rs 1000 per kg.

He said that due to unabated export and smuggling of livestock from Pakistan to Iran, UAE, Afghanistan, etc. has created acute

shortage of raw material for not only leather industry but woolen industry, milk and dairy industry, footwear industry and other allied industries are being deprived off raw material "The exports of leather and leather goods have declined to over 30 per cent during current fiscal year and the declining trend id continuing and seems that country may be not able to cross $1 billion exports of leather during next fiscal", Aziz warned.

The vast scale smuggling as well as export of live animals is hitting hard the tanner industry of the country by declining 30 per cent of the leather goods export since 2007 and the live animals were primarily being smuggled to Iran and Afghanistan, as well as to Dubai under the garb of live animals export, allowed by the government.

He said that as many as 200,000 live animals were being smuggled per month, which was ultimately making it

very difficult for the leather industry to meet the leather goods' export orders. The smuggling, that has also caused abnormal raise in the meat/beef prices.

He said the leather goods export had been declined from $1.22 billion in fiscal year 2007-08 to $ 867 million in 2009-10.

Some 63 per cent decrease had been recorded in annual animal hides collection on the eve of Eid-ul Azha during last five years, as only 6 million hides had been collected in 2010 as against 16 million hides in 2006, he maintained.

He pointed out that regular supply of hides/skins from routine slaughtering showed a steep decline of 66 per cent during last five years.

The declining trend in the leather industry had also deprived 200,000 individuals of their jobs during the year as many tanneries have closed down or reduced their production to about 50 per cent, he added. -Online

SESSI spends over Rs1.87bn on health TV PROGRAMMES SATURDAY Time Programmes 7:00 8:00 9:05 11:05 12:00 13:05 14:00 14:05 15:00 16:00 17:30 18:00 19:05 20:03 21:00 22:03 23:00 23:05

News News Subah Savere Maya Kay Sath News Beat (Rpt) News Crime Week (Rpt) News Meri Kahani Meri Zabani (Rpt) News News Samaa Metro News Zer-e-Bahas Newsbeat News Faisla Aap Ka News Interrogation

KARACHI: Sindh Labour Minister, Amir Nawab Khan has said that Sindh Employees' Social Security Institution (SESSI) is spending an amount over Rs 1.87 billion, which is 72 per cent of its budget, on provision of medical facilities.

Amir Nawab Khan said the focus is also on medical centers in the Development Program and an amount of more than Rs 230 million are spent of medicine procurement.

He said up-gradation and extension of all social security hospitals are also being executed on urgent basis and it is glad that

the development projects are being finalised.

He said industrial development largely depends on healthy and devoted labourers and their satisfaction would help establishment of peace and stability in the society.

He informed that SESSI is spending more than 72 per cent of its budget on provision of medical facilities which amounts more than Rs 1.87 billion.

Earlier, Commissioner SESSI, Ejaz Ahmed Memon presented a briefing about facilities and capacity of the Kulsoom Bai Valika Hospital of SESSI. -APP

Quit Tobacco seminar held KARACHI: A quit-tobacco seminar was held at Ojha Institute of Chest Diseases, with collaboration of OICD and Pakistan chest society Sindh chapter.

Renowned chest physician gave awareness to audience about hazards of tobacco use and ways to get rid of this bad habit.

Prof Jawwad khan of Agha Khan University Hospital, speaking the audience told that some smokers may have with drawl symptoms like irritability, anger, restlessness insomnia etc, these can be easily controlled by will power. He assured that the withdrawal symptoms would remain only for few weeks.

He said that fasting can be helpful in quieting bad habits especially tobacco use. Dr Nadeem Rizvi, of JPMC told that second hand smoking is the main cause of infant death, premature labor etc.

Dr Nadeem further said that 28 % of infant and child death caused by second hand smoking.

Dr Shahina Qayyom of OICD informed about smokeless tobacco use she said use of Tobacco in Pan, Gutka, and Mawa, Is increasing in Karachi especially in adolescent and younger population she said that is why mouth and throat cancer is prevalent among younger generation. -NNI

AIOU places results on website ISLAMABAD: "Allama Iqbal Open University (AIOU) has placed the assignments result of all Postgraduate programmes MA/ MEd, MBA, MSc, MPhil & PhD for the Semester Autumn, 2010 on its website www.aiou.edu.pk.

According to press release issued here on Saturday, purpose of placing the assignments result on website is to rectification the discrepancy if found in it before the announcement of the result of final examinations" this was announced by Hafizullah, Controller of Exams, AIOU. Controller of Exams further said that assignments results of Matric, PTC/CT and BEd programs have already been placed on website of the University from the last week of the previous month, he advised all the students of these programs across the country to check their assignment's results from website www.aiou.edu.pk of the University and report immediately to Controller of Exams in case of any discrepancy so that to correct it in due course of time. -APP

Wasan phones Altaf KARACHI: Sindh Home Minister Manzoor Wasan Saturday thanked Muttahida Qaumi Movement (MQM) chief Altaf Hussain for his efforts in connection with restoring peace in the metropolis.

Talking to Muttahida chief Altaf on phone, provincial Home Minister Manzoor said he was impressed by the former's opinions, adding his efforts for peace were quire appreciable.

Addressing Altaf Hussain as his elder brother, Manzoor Wasan stressed his (Altaf's) good wishes and guidance were vital to re-establish peace in the province.

MQM chief Altaf Hussain observed, "I will not flinch back from giving my life for peace in the province and the rights of people here, if needed."

Muttahida chief further said to Wassan, "Nine Zero is your house and its doors are always open for you." NNI

MULTAN: Dera Ghazi Khan Muhammad Nawaz Warraich distributing prize among constables during passing out parade at Police Training School. Staff Photo

Speakers calls for ensuring pro-women policies ISLAMABAD: There is a need for taking concerted efforts on part of civil society and strong political will to ensure implementation of women friendly policies in the country.

These views were expressed by speakers at a rountable on "Women's Economic Empowerment and their Protection at Work" held here on Saturday.

The roundtable was arranged by Viquar Society for socioeconomic development and Legal Aid (SSEDLA) in collaboration with the US Department of State.

Addressing the participants, Parliamentary Secretary Dr Zil-e-Huma, as a chief guest, said that the present government has expressed strong commitment toward envisaging women friendly laws and policies, following the vision of Shaheed Mohtarma Benazir Bhutto.

Shaheed Mohtarma Benazir Bhutto took a number of initiatives for the women empowerment including establishing First Women Bank, Women Police Stations and introducing the concept of Lady Health Workers.

The government has planned to expand the network of crisis centres across the country to provide shelter to the women in distress, she said.

Dr Zil-e-Huma termed Protection Against Harassment of Women at Workplace Act as a major achievement of the government and civil society organizations and its implementation is now a challenge for both.

She said that the Implementation Watch Committee of National Commission on Status of Women (NCSW) was strictly monitoring the implementation of the anti-harassment law.

Devolution of the ministries was the longstanding demand of the provinces to get autonomy and now it is the responsibility of the provinces to ensure maximum opportunities to the women for contributing in the national development, she said.

Former Member Planning Commission, P&D Division Dr Syed Asad Ali Shah said that the emphasis must be plsced on bringing more women in the workforce, providing them conducive working environment.

He said civil society must join the hands with the government to change the feudal mindset which is the main hurdle in the way of women' progress.

Rule of law must be ensured for every one as it is the first step toward progress, he said.

Dr Syed Asad pointed out that there is need to educate the men who are the part of decision making process to create more avenues for the women, enabling them to contribute for the welfare of society.

He said that strong political will was needed to implement the harassment law in public departments especially those which are reluctant to comply.

Representative of Cultural Section US Embassy Robert Keith assured US government support for the people of Pakistan in empowering women folk.

President Pakistan-US Alumni Network (PUAN) Samina Imtiaz said that everyone has to understand his responsibilities regarding implementation of the existing laws and policies in letter and spirit.

A large number of participants attended the roundtable. -APP

PNCA to organize puppet show ISLAMABAD: Pakistan National Council of the Arts (PNCA), Ministry of Culture has scheduled free puppet show on Monday here at National Art Gallery, F-5/1 at 5 pm.

National Puppet Theatre would present Folk Tales, Skits to provide entertainment and education about social problems like Health, Education and Environment etc.

Children along with parents were invited to see the show.

Puppet show would be presented every Monday at the same venue and time. NNI

FUUAST extends registration date KARACHI: The Federal Urdu University of Arts, Science and Technology (FUUAST) has extended the date in registration for BA, BCom, MA, Madaris and homeopathy.

This was announced by the Controller of Examinations of FUUAST, Dr Waqar ul Haq, here on Saturday.

The registration date has been extended from August 1 to 10 with a late fee of Rs 1000.

There will be no further extension in the registration date and that the students who have passed up to 2009 would be eligible for the registration. -APP

Doctors' strike continues at PIMS LAHORE: Former Federal Secretary Dr.Gulfaraz Ahmed speaks as keynote speaker on ownership and management of natural resources at a meeting of Punjab Policy Advisory Group on Federalism, arranged by the Centre for Civic Education Pakistan and Forum of Federations. Dr. Pervez Tahir and Mr. Zafarullah Khan are also seen in the picture. Staff Photo

Turkey to build houses for affected people ISLAMABAD: Pakistan will surpass all challenges to its security, as did Turkey in the near past.

This was stated by Turkish Consul General in Karachi, Fethi Ethem, who during his farewell visit to Federation of Pakistan Chambers of Commerce and Industry, after having completed his tenure of three years in Pakistan.

"Turkey is building 5000 houses for flood affected people of Pakistan", in a statement issued by the FPCCI here on Saturday said.

Ethem was welcomed at Federation House by Dawood Usman Jakhura, Vice President-FPCCI,

Amjad Rafi, Chairman PakTurkey Business Council and leading members of the business community.

In his welcome remarks, Jakhura conveyed his satisfaction at the level of the trade volume between Pakistan and Turkey, which currently stood at US$1 billion and anticipated that this figure would increase to $2 billion with the development of further commercial ties between the two countries.

He thanked the Turkish government for invaluable support rendered during the disastrous floods last year, and expressed hope that the Train project initiated

between Turkey, Iran and Pakistan would take off commercially sooner than expected.

The issue of high rates of safeguard duty imposed on the imports of Pakistani textile products into Turkey announced in January 2011 was also brought up during the discussion. Ethem clarified that the safeguard duty was not Pakistan-specific, and that the matter was being sorted out by Turkey on a country-by-country basis.

Amjad Rafi commended the Consul General for very efficient visa processing for Pakistan businessmen during his tenure.-APP

ISLAMABAD: A strike was observed by doctors in the Out-Patient Department (OPD) of Pakistan Institute of Medical Sciences (PIMS) for the 12th consecutive day on Saturday to press for their demands.

This strike was observed on the appeal of Young Doctors Association (YDA).

President of YDA Dr. Sajjid Abbasi told APP that the YDA Islamabad Chapter was observing strike for not meeting their demands of pay raise and service structure.

He said the doctors only performed duties in the Emergency Ward of the hospital while other services remained closed including the OPDs, operation theaters and other departments.

He said it seemed that authorities were not taking steps for the resolution of doctors' problems and urged them to resolve their demands as early as possible so that doctors could do their job with peace of mind.-APP

3

Sunday, July 31, 2011

Skyfire Microsoft: Tax Nokia slips unveils app for Flash review may have from 1 to 3 in videos on iPhone significant impact smartphone sales HELSINKI: Apple and Samsung Electronics ended struggling Nokia's 15-year reign at the top of the smartphone sales rankings in the second quarter, researchers said on Friday.

Nokia has dominated the smartphone market ever since its 1996 launch of the Communicator model, but competition from its two nearest rivals and a slump in its own sales sent it straight from first to third place in the three months to June as growth in

has proven popular, especially the high-tier S2 Android model," said Neil Mawston, analyst at Strategy Analytics."

Strategy Analytics estimated smartphone market volume grew 76 percent from a year ago in the second quarter. ABI Research was somewhat more cautious estimating market grew 62 percent.

SLOWDOWN WORRIES Growth on the overall cellphone market slowed too in the April-June period, as sales of basic phone models

LOS ANGELES: Microsoft Corp warned on Thursday that a government review of its U.S. tax obligations in past years could significantly affect its financial statements if not resolved in its favor.

The Internal Revenue Service has looked at Microsoft's use of transfer pricing, among other things, or methods of booking prices and sales between subsidiaries -often leading to opportunities to report earnings in lower-tax jurisdictions.

Companies routinely and legally book profits overseas to enjoy lower tax rates and avoid stumping up a hefty 35 percent levy on profits in the United States.

But with the United States shouldering a high jobless rate and big budget deficit, there have been increasing calls in Washington for a simplified tax code with a lower corporate tax rate and fewer loop-

Microsoft did not offer specifics on how it employed cash earned abroad, but reinvestments could encompass anything from buying office equipment to parking it in a bank. While stashing money overseas avoids the repatriation tax, it also means companies have a lot less flexibility in using the money to invest in the United States or other purposes such as dividend payments.

In Thursday's filing, Microsoft said the IRS had issued a Revenue Agent's Report after an examination of the 2004-2006 tax years, but Microsoft was appealing several adjustments cited in the report.

It did not offer details. The company also said it remained subject to IRS examination for the 2007 to 2010 tax years.

"We do not agree with the adjustments in the RAR, and we have filed a protest to initi-

proved adept at shrinking its tax bill, and the company itself states that it employs lowertax foreign jurisdictions.

Microsoft said its lower taxes in the recent quarter were "primarily due to a higher mix of earnings taxed at lower rates in foreign jurisdictions resulting from producing and distributing our products and services through our foreign regional operations centers in Ireland, Singapore and Puerto Rico, which are subject to lower income tax rates."

The details of precisely how it does this have not been disclosed. U.S. companies do not have to break out earnings in foreign subsidiaries, making it hard to determine from financial filings how much tax they are saving through each jurisdiction.

In response to stock regulators' requests, Microsoft also took the extra step of breaking out sales by region and prod-

holes. There has also been pressure from major companies on U.S. President Barack Obama's administration to let profits parked offshore be brought home at very low tax rates, to boost investment and jobs.

On Thursday, the world's largest software company said it had accumulated $44.8 billion of non-U.S. earnings -reinvested abroad -- as of June 2011, translating into deferred taxes of about $14.2 billion.

That marked a sharp jump from the $29.5 billion permanently reinvested overseas as of the end of 2010, meaning gic asset. Alipay will also pay royalties and other fees to $9.2 billion in deferred taxes.

Alibaba -- prior to a liquidity event, according to the deal.

Investors had also been hoping for Taobao to go public, which would unlock more value for Yahoo. But Alibaba finance chief Joe Tsai all but ruled that out.

"You should take the Taobao liquidity event assumption off the table," Tsai told analysts on the call.

JP Morgan said the agreement over Alipay was "better WILMINGTON: Rovi Corp than nothing, but not that sued Hulu, accusing the online great." Ultimately, Alibaba, video site of infringing patents which used to own all of that cover electronic program Alipay, has effectively seen its guides. stake reduced, which hurts Rovi, created from Yahoo, the investment bank Macrovision Corp's acquisition said. of Gemstar-TV Guide In May, Yahoo claimed it International Inc in 2008, prohad been blindsided by vides technology that powers Alibaba's restructuring of Alipay, an online e-commerce the streaming services provided payment akin to eBay Inc's by Blockbuster On Demand PayPal. Ma took control of the and Best Buy Co Inc's company, which edged Yahoo CinemaNow, according to the complaint, filed on Friday . out of the equation.

Rovi licenses its technology Ma had said the move was necessary to comply with to Apple Corp, Microsoft Corp Chinese law and to ensure and Comcast Corp, among othAlipay could continue operat- ers, and said Hulu's infringeing. Alibaba countered that ment "presents significant and Yahoo was aware of the trans- ongoing damages to Rovi's action by virtue of having a business." board seat, held by former Rovi said it is seeking comYahoo chief executive and pensation for lost license revdirector Jerry Yang.

Softbank, another large enue and treble damages.

Hulu did not immediately shareholder in Alibaba group, was also part of the agreement. reply to a request for a comSoftBank owns 42 percent of ment. Hulu has been put up for Yahoo Japan, while Yahoo sale by its owners, which owns 35 percent of that com- include Walt Disney Co, News pany, another one of its most Corp, Comcast Corp's NBC attractive assets.

Universal and Providence Shares of Alibaba.com, the Equity Partners. listed unit of Alibaba, dipped A dozen potential buyers 0.1 percent in Hong Kong. have entered preliminary sale SoftBank stock fell 3.5 percent talks, including Google Inc and on the Tokyo Stock Exchange. Microsoft, a source familiar -Reuters with the situation told Reuters.

ate the administrative appeals process," Microsoft said in an exchange filing. "The proposed adjustments are primarily related to transfer pricing and could have a significant impact on our financial statements if not resolved favorably.

"However, we believe our existing reserves are adequate."

Part of the IRS issue for the 2004-2006 years was resolved last quarter in Microsoft's favor, with the company recording a $461 million refund.

A DEFT HAND Experts say Microsoft has

uct, providing a more detailed snapshot of its business.

It said 46 percent of its sales came from outside the United States, or about $32 billion, in fiscal 2011, up from 42 percent in 2010.

However, pre-tax profits booked overseas nearly tripled over the past six years, to $19.2 billion in the fiscal year that just ended, from $6.8 billion in the year ended in June 2006, according to company filings. In contrast, its U.S. earnings have dropped, to $8.9 billion from $11.4 billion in the same period. Foreign earnings now make up 68 percent of overall income. -Reuters

total market stood at 374 million phones.

IDC said sales of simpler socalled feature phones fell 4 percent from a year ago due to conservative spending and continued shift to smartphones, most visible in developed markets, such as the United States, Japan and Western Europe. ?The shrinking feature phone market is having the greatest impact on some of the world's largest suppliers of mobile phones," analyst Kevin

P

the sector starts to slow.

Apple sold a record 20.3 million iPhones in the quarter despite the fact that its iPhone 4 model is now more than a year old. Usually success of smartphone models does not last so long.

Apple unveiled its sales last week, but on Friday analysts also estimated Samsung sold 19 million smartphones in the quarter, well ahead of Nokia's 16.7 million as it was able to benefit from booming demand with smartphones using Google's Android software.

"Samsung's Galaxy portfolio

dropped for the first time in seven quarters due to consumers reining in spending, research firm IDC said on Friday.

IDC said strong smartphone demand boosted the market to still grow 11.3 percent from a year ago to 365.4 million phones, but this was a clear slowdown from the 16.8 percent growth seen in the previous quarter.

Strategy Analytics estimated the total market at 361 million cellphones in the quarter.

In a Reuters poll, 29 analysts' average forecast for the

Restivo said in a statement.

Stalwarts such as Nokia are losing share in the feature phone category to low-cost suppliers such as Micromax, TCL-Alcatel and Huawei."

Struggling Nokia, still the world's largest phone maker by volume, saw its phone sales shrinking 20 percent from a year ago. This helped Samsung to close the gap to the Finnish firm in the overall cellphone market to the lowest level ever. Some analysts already forecast for Samsung to become the world's largest cellphone vendor next year.

rivate-equity backed video technology firm Skyfire, best known for its mobile browser, has unveiled an application for watching Flash videos on Apple's iPhones.

Apple has been a strong opponent of Adobe's Flash technology, criticizing its power management, among other things, and it has embraced a newer set of tools for building web applications known as HTML 5.

Many Internet pages running applications using Flash technology have had to create special versions for Apple devices.

Users of Skyfire's new VideoQ application can send links to videos from their browsers to watch them in the app, which Skyfire hopes to build into a video entertainment hub.

VideoQ will at first be available in North America only, but Skyfire plans to expand its reach later.

California-based Skyfire, whose investors include Lightspeed Venture Partners, Matrix Partners and Trinity Ventures, said its mobile browser has been downloaded 8 million times so far.

Yahoo gets short end of stick in Alibaba deal NEW YORK: Yahoo Inc got short-changed -- that's the view of analysts picking apart the complex deal it announced on Friday with Alibaba Group and SoftBank Corp over Chinese e-payments unit Alipay.

The trio struck an agreement after months of wrangling over the lucrative asset, under which Alibaba gets up to $6 billion if the mobile payments firm goes public or gets sold.

But their solution bothered investors and reinforced perceptions on Wall Street that Yahoo has little control over Alibaba, the e-commerce company founded by Jack Ma and which is 43 percentowned by Yahoo.

The conflict between the Chinese Internet firm and its two major shareholders started after Alibaba transferred Alipay to a separate company controlled by Ma. Yahoo has said that went on without its knowledge.

Now, under the agreement, Alibaba would receive $2 billion to $6 billion of the proceeds of an Alipay IPO or sale, based on 37.5 percent ownership of the mobile payments service.

That capped the potential amount that Alibaba -- and hence Yahoo or SoftBank -could receive from the sale of a lucrative company of which it was once the sole owner. It may have represented a compromise over a matter in which Yahoo executives found they had little say.

"This deal just repairs a problem, but the value transfer that occurred gave Yahoo the short end of the stick," said BGC Financial analyst Colin Gillis.

"The key thing here is that

they got the deal done," Gillis said. "But it doesn't fix the issue of how Yahoo can take this paper holding in Alibaba Group and turn it into cash on its balance sheet."

The agreement values Alipay between $5.3 billion and $16 billion, according to Jefferies Equity Research.

Shares of Yahoo initially jumped on the deal but

reversed course to close about 3 percent lower at $13.10 on Friday, after analysts pressed Yahoo's finance chief on a conference call about its grip on its prized Asian assets.

The months-long fight put additional strain on an already troubled relationship between Alibaba and Yahoo after CEO Carol Bartz was brought in to try to rekindle growth at the once-dominant U.S. Internet player.

WHERE'S BARTZ? Yahoo's relationship with Alibaba is on the top of investors' minds because the U.S. company's Asian investments are deemed its most valuable asset. Stifel Nicolaus analyst Jordan Rohan said the deal "may have stirred up the emotions of an investor base that has taken a lot of body blows this year."

The lack of details on how Yahoo could access funds from any eventual Alipay IPO or sale, highlighted how Ma and his team called all the shots, and will keep doing so.

"Some fears remain that this could happen again," Rohan said. "The mechanism for Yahoo to extract value from those assets is as murky as it has ever been."

During the public spat between the companies, the hedge fund Greenlight Capital, which is run by investor David Einhorn, dumped its sizable position in Yahoo, and others followed suit.

It was telling that Bartz and Ma, the China-based CEO of Alibaba, were both absent from a conference call with analysts.

Apart from the Alibaba spat, Bartz is dealing with her own issues back home, with Yahoo trying to arrest a continued slide in revenue and reverse a stock decline of more than 21 percent in 2011 alone.

Under the agreement, Alipay will keep providing payment processing to Alibaba's e-commerce platform, Taobao, on "preferential terms." Much of Alipay's value lies in the payment systems it provides to Taobao, Alibaba's most strate-

Hulu accused of infringing program guide patent

Samsung profit outlook weakens on chips, mobiles trong SEOUL: Samsung Electronics Co is relying on the smartphone market to boost group profits after its flat screen unit reported a second quarter of losses and the mainstay chip business struggled.

The South Korean technology conglomerate joins a host of global companies in warning that fragile consumer demand is hurting sales of TVs, flat screens, computers and semiconductors.

"Samsung's earnings momentum will revive in Q3, but the recovery will not be strong because of weak economies in the U.S. and Europe," said Lee Dong-Jin, fund manager at KTB Asset Management." There are also no new IT applications that can drive demand as Apple's iPhone and iPad did."

Samsung, which reported operating profit fell 25-percent from a record, warned of a challenging business outlook.

Falling chip prices are the biggest concern for the South Korean company as it earned half of its profit from semiconductors in the second quarter.

On Thursday, Sony Corp and Panasonic Corp also warned of

weak TV sales, especially in the United States and Europe, following Philips and Corning Inc in highlighting anemic demand.

Samsung is however betting big on its mobile phone business as it rolls out new versions of tablets and phones, helping it capture market share from Research in Motion and Nokia.

Research firm Strategy Analytics said Samsung sold 74 million handsets including 19 million smartphones, replacing Nokia to become the world's No.2 smartphone vendor after Apple.

Samsung's shares, which hit a record high in late January, have lost 12 percent so far this year, while the broader KOSPI has gained 5 percent.

Samsung, also the world's No.2 maker of mobile phones, reported a 3.75 trillion won ($3.6 billion) operating profit for April-June, versus the consensus forecast for a 3.7 trillion won profit according to Thomson Reuters I/B/E/S. The result was broadly in line with Samsung's estimate earlier this month for an operating profit of between 3.5 trillion won and 3.9 trillion won. -Reuters

4 Sunday, July 31, 2011

The Financial Daily International Vol 4, Issue 267

Publisher & Editor-in-Chief: Amir A. Ashary Editor: Shakil H. Jafri Executive Editor: Manzar Naqvi Honorary Advisory Board

Balochistan Can Be Saved Lubna Umar & Farooq-uz-Zaman

hat governance has never been our forte is a fact that is evident Asim Abbas Ashary, CPA from the extravagance with Khurram Shehzad, CFA which incidents of violence are surAkhtar M. Zaidi, FCA Prof. Zakaria Sajid (KU) facing in Balochistan. Despite special Dr. A. Hadi Shahid, FCA Zahid Bukhari SVP HBL (retd) efforts being directed towards it by the Muhammad Arif government and the armed forces, the Ismat Sabir Head office province successfully remains grossly underdeveloped and backwards. In 111-C, Jami Commercial Street 11, Phase VII, DHA Karachi this backdrop it becomes essential to Telephone: 92-21-35311893-6 Fax: 92-21-35388428 analyze the unrest and the factors URL: www.thefinancialdaily.com Email Address: editor@thefinancialdaily.com responsible for such a state that perpetuate and subsequently lead to Lahore office demands of an 'independent' 24- Peshawar Block, Fortress Stadium, Lahore Balochistan.

Telephone: 92-42-6675595 Fax: 92-42-6664349 Despite severe economic setbacks Email Address: editor@thefinancialdaily.com there have been no cuts in the allocation of funds for the province. In the fiscal year 2010-11 Balochistan alone received Rs152bn which amounts to Rs100bn increase from that of the financial year 2004-05. Furthermore, a 4% increase in Balochistan's share from the Divisible Pool has been a landmark of the NFC Award along Two of the incidents reported in the international with a 12-year installment of gas charges of a total sum of media should be eye-opener for the Muslim development Rs120bn. An additional Rs10bn grant Ummah. In the first incidence the pipeline supply- was also released by the federal government in 2009. The shift of GST ing Iranian gas to Turkey has been blown up, (General Sales Tax) to the provinces resulting in temporary disruption in gas supply. It became another significant feature has been mentioned that the explosion occurred that turned into a major source of revenue generation for Balochistan. near the Bazargan border crossing, close to the city It is an enigma why the province is of Maku in Iran's West Azarbaijan province. It is experiencing yet another upheaval despite soaring of funds and not the first time gas supply to Turkey has been dis- resources. The age old grievances, it rupted. In the summer of 2010, the pipeline was appears, are being exploited for the wrong ends. Why has the provincial damaged twice, for which separatists Kurdish government not been able to make a rebels were blamed. Iran has the second-largest difference in the lives of the people? are the funds not being utilized? proven gas reserves in the world after Russia. It Why This underutilization of resources exports about 30 million cubic meters of gas to surely offers no genuine prospect for any miraculous improvement, thus Turkey annually. becoming instrumental in maintaining According to the Iranian news agency, the export the status quo.

Haseeb Khan, FCA

S. Muneer Hussain Rizvi

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Time to show unity

of gas to Turkey has been temporarily halted after the explosion in pipeline located in the Northwestern part of Iran, said spokesman for the National Iranian Gas Company Majid Boujarzadeh. He assured that repair work is under way and expressed hope for a speedy resumption of the gas supply. The bombing which left no casualties has been attributed to the Zionist and American mercenaries by Maku Governor, Hamid Ahmadian.

This carries some weight because if till yesterday Iran was at the hit list of the United States for continuing its uranium enrichment program, Turkey has become a thorn in the eyes of Israel after the failed attempt to stop the flotilla carrying goods for those stranded in Gaza stip. Since Turkey has been paying a pivotal role in highlighting the atrocities against those who have also been forgotten by many Arab countries, its move was not approved by those who don't want any Muslim country to proper.

The second incident, rather unique in the history of turkey is the resignation of the top brass of Turkish military command. While the two incident seem completely disjointed, linking the blast with the resignation of top brass of Turkish military command gives a new dimension to the turmoil being created in the country. Turkey's army chiefof-staff and the entire military command have resigned in a row with the government over promotions for generals held in an alleged anti-government plot, as reported in the media.

General Isik Kosaner stepped down after several meetings in recent days with Turkey's Prime Minister Tayyip Erdogan, ahead of an early August meeting of the army's high command which decides on promotions for senior officers. As well as Kosaner, the commanders of the army, air force and navy also quit, which is unprecedented in Turkey.

The dramatic mass resignation has particular resonance in Turkey, which endured military coups followed by periods of repression in 1960, 1971 and 1980. In 1997, an army-led campaign forced the resignation of the country's first Islamic-led government.

The authorities are holding 42 officers, including several generals, as part of an investigation into an alleged plot to overthrow the ruling Justice and Development Party (AKP), the moderate offshoot of a banned Islamic movement.

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.

The virtual indifference of the state apparatus has forced the people to lead a nomadic life in the post modern age when education and technology ought to have turned the dry barren land into an oasis of prosperity.

Concentrating on trivial matters of personal interest, almost every government has leased the entire province to the sardars, who have kept strict control over the local populace turning the province into an example of personal fiefdom to maintain their power politics.

The question that needs to be asked here is who are these self appointed custodians of the Baloch people? Have they actually been chosen by the locals and have all the attributes to be classed as their true representatives? Are they actually advocating the Baloch case or once again, fueling discord? Who benefits from the formation of an independent Balochistan State? Where does the change in leadership guarantee a distinct improvement in the lives of the masses?

Will the wealth that actually belongs to the citizens be made accessible to them at all or will the same exploitation perpetuate with a changed set of hands.

Background interviews with a number of prominent figures both at provincial and federal level, formerly or currently involved in the administrative or security affairs of the province almost commonly suggest that unless a massive development work is started on district levels, under a well-coordinated contingency plan, the situation cannot be turned to normal. Furthermore, cognizance of the threat of a big magnitude at national level is missing; the province can be saved from slipping into hands of insurgents if the entire nation, government, security apparatus, intelligentsia and civil society join don't stand together. In words of former DG FC, "Pakistanis are a nation that can do wonders."

The ability to perform miraculously, however, has been marred by the pre-

dominant sardari control over the lives of the people. These sardars can be easily classed as a growing 'beggar mafia' with only one vocation; to sell their grievances and collect money from both the Centre and foreign forces. Thus, development of any sort would prove detrimental to this lucrative career which virtually thrives on violence and bloodshed. This turbulence and the tribal culture keep the law enforcers at bay, resulting in a huge security gap that benefits the separatist agenda.

The resultant void thus spells the need for the Frontier Corps as the only effective law enforcement agency to enter the province with the full support of the government. What was primarily the responsibility of the state was shifted conveniently to the shoulders of the FC and along with it the right to be criticized for every ill that befalls the province. Therefore, the entire security and safety aspect of the province including that of cities, borders, developmental projects etc was undertaken by the FC. According to the data provided by the FC a total of 1,623 illegal immigrants have been checked by the law enforcement agencies in the past six months and handed over to the police for interrogation. Among them 14 were from Iran, 15 from Bangladesh and the rest Afghan citizens who had entered Balochistan illegally.

One is compelled to ask what is the apparent attraction these foreign individuals have for coming to Balochistan?

Is it vacationing or sightseeing that they seek to indulge in? With an increase in violence against the state and law enforcement forces one needs to ask from where the insurgents acquire the relentless supply of arms and ammunition. Could these illegal entrants have something to do with it?

In the past six months Balochistan has witnessed around 107 incidents of attacks on gas installations, 6 on rail-

ways and railway tracks, 43 rocket attacks along with 64 incidents of targeted killings and 142 abductions by insurgents. The security forces are surely not spared by the insurgents as a total of 2,000 FC soldiers have lost their lives in these attacks so far.

With the rapidly deteriorating law and order situation the societal practices and responses have also altered visibly. It wouldn't be entirely incorrect if we state that the society is acting as a resistant force against the fight to curb terrorism.

This demoralizes the security forces that are under great duress from the threat they face from insurgents while facing an increased criticism directed towards them from within the society.

Most of us have forgotten or maybe never realized that we are at war where we have multiple enemies that can strike from every direction at any time. To end this agonizing era we have to play an equal and constructive part along with those who are fighting to keep the pieces of our land together.

The Balochistan turmoil needs to be viewed in a larger perspective that includes the economic, political and cultural context of the province in view.

Where, the tribal social organization proves to be the major hindrance in exploiting available funds and resources for maintaining hegemony and perpetuating existing power paradigms. Strongholds of tribal ethnic politics over people need to be deconstructed and restructured to empower the masses.

For this state to materialize, however, coordination between all the operating forces in Balochistan is the only formula. The politicians, administration, judiciary, the society and the law enforcing agencies need to strike harmony with each other to augment their functional potential to bring long lasting peace and resolve age old issues. Peace in Balochistan is certainly not a mission impossible.

Turkish govt strengthens control on military he resignations of Turkey's top four military commanders will enable the ruling AK Party to consolidate its power over the armed forces, reinforcing its gains in a decade-long struggle to exert control over the once-omnipotent military.

The cost of that victory will be heightened polarisation in Turkey between the government, which has roots in political Islam, and its staunchly secularist opponents. Such a prospect may further unsettle already fragile financial markets.

With 250 military personnel, including dozens of generals, in jail on charges of conspiring against Prime Minister Tayyip Erdogan's government, the resignations will also fuel concerns about the operational efficiency of NATO's second-biggest army.

Subordination of the military to greater civilian control will be welcomed by many as a sign of growing democratisation in the European Union-candidate country, but will stir fears that Erdogan is gaining excessive power over state institutions.

"We've got a situation in Turkey where we've had over the last few years almost a de-institutionalisation of the Turkish state, where everything has become more politicised and it is a danger for any state," said security analyst Gareth Jenkins.

The armed forces, which have staged three coups and pushed Turkey's first Islamist-led government from power in 1997, are no longer seen as able or willing to intervene in politics. New government plans to boost the role of the police in the fight against Kurdistan Workers Party (PKK) guerrillas have also pointed to a scaling-back of the military's power.

Fresh from a resounding election victory in which

T

the AKP won a third term in office with 50 percent of the vote, Erdogan is well placed to push ahead with plans to overhaul a constitution written under military tutelage after a 1980 coup.

CAMPAIGN TO DISCREDIT MILITARY? AK Party critics see moves to weaken secularist institutions such as the army as a factor behind investigations into the alleged "Ergenekon" and "Sledgehammer" plots to overthrow the government.

The generals' sudden departure, ahead of a next week's key meeting of the Supreme Military Council (YAS) to decide on military promotions, will inflame public suspicions about the motives behind these long-running court cases. "The people will hold the political authorities responsible, because there is a widespread belief that an operation has been conducted to discredit the Turkish Armed Forces in the course of the Ergenekon and Sledgehammer investigations," said Gungor Mengi, the chief columnist in Vatan newspaper. Outgoing armed forces commander General Isik Kosaner took a similar line in a farewell message to "my esteemed comrades in arms".

"They tried to create the impression that the Turkish Armed Forces was a criminal organisation and ... the biased media encouraged this with all kinds of false stories, smears and allegations," Kosaner wrote.

Erdogan has moved quickly to pick Kosaner's successor, naming paramilitary Gendarmerie commander General Necdet Ozel as new head of land forces and acting deputy chief of general staff.

Disputes over army appointments are seen as a factor in the generals quitting and the government is likely to further assert its will in other promotions at

Monday's YAS meeting. In the past civilian leaders have just rubber-stamped army proposals.

"Just as commanders who fail to greet the prime minister are retired, generals who refuse to shake the hand of the president's (headscarved) wife miss out on promotion," said Ergun Babahan from the pro-government Star newspaper.

"This is a turning point in the history of Turkish democracy and of unprecedented importance in terms of the civilian will standing up against military resistance," he said. The dwindling power of the generals and the prosecution of hundreds of officers has hit morale in the armed forces as they face an upsurge in clashes in the 27-year-old conflict with the PKK which has killed 40,000 people.

"They have taken in so many (generals) that it has had a devastating impact on morale and a very bad impact on the operational efficiency of the Turkish military," Jenkins said.

The PKK threat was underlined two weeks ago when the rebels killed 13 Turkish soldiers in an ambush in the southeastern province of Diyarbakir.

The generals' decision is likely to be applauded by the officer corps who will see it as an honourable stand against the prosecution of their comrades.

"For them I think it is these four commanders falling on their swords and it is seen from the Turkish military corps' perspective as a very honourable thing to do," Jenkins said.

However, he said the court investigations have made military personnel reluctant to communicate with each other for fear of being monitored -- an operational handicap. -Reuters

For Breivik, insanity tough to prove, hard to fake ssessing whether Norway's confessed mass killer Anders Behring Breivik is insane, as his lawyer asserts, will take months of observation, interviews and analysis -and experts say it's hard to fake mental illness.

Forensic psychiatrists who analyse the minds of murderers point to clear patterns of behaviour that can date far back and may give vital clues to Breivik's mental state when he killed at least 76 people in a shooting spree and bomb attack on July 22.

Breivik's lawyer Geir Lippestad has already said "this whole case indicated that he is insane" , but experts point to some key factors that might suggest a different view.

They say the most likely final outcome is that Breivik, 32, will be jailed or kept in a secure mental hospital until he is at least in his early fifties, and any release beyond that would be allowed only if a parole board thinks it is safe - unlikely given the scale and severity of his crimes.

"The insanity defence is about whether someone understands what they're doing, and if they do..whether they realise it is legally wrong," said

A

Seena Fazel, a clinical senior lecturer in forensic psychiatry at the University of Oxford.

"If you think when you're attacking somebody that you're actually attacking a piece of bread...and if you had no idea what you did was legally wrong...then people would consider that as part of an insanity defence," he told a briefing in London.

These elements also play into another key consideration for insanity -whether the killer had the capacity to form intent.

"A high degree of planning and premeditation, and an ability to see through to the consequences of your actions in a rational way, imply some capacity to form intent," Fazel said Breivik's copious writings some of which appear in diaries and a 1,500page "manifesto" in which he wrote of himself as a righteous crusader on a mission to save European "Christendom" from a tide of Islam suggest he planned his attacks months in advance, gradually gathering the tools and the expertise he needed.

His diary entry on April 27 reads: "I made the order for the fertilizer which were to be delivered a week later. Prior

to making this order I had officially registered my company as an agricultural entity."

He adds: "The last week in the capital I spent a lot of time with friends, partying and attending various social events. I knew that it would be the last chance for a very long time."

On July 4 he wrote: "Began the preparations for a trip to extract the armour cache I had dug down a year ago..."

Fin Larkin, a consultant psychiatrist familiar with making assessments of offenders' minds, said they "have to be pretty patently mentally unwell" to successfully claim insanity.

"It's not impossible...but it's actually quite difficult to fake," he said.

Larkin, who works in the personality disorder section of Britain's Broadmoor high-security psychiatric hospital, which has housed and treated some of its most notorious killers, said psychiatrists making such assessments take as their starting point that everything the defendant says is a lie.

"They've often got strong motivation not to tell the truth, they may be very well researched, they may have planned things for quite a while, they

may be good mimics who have spent time with mentally ill people," he said.

Experts say that while there are some common factors that often crop up in the backgrounds of mass killers -- a difficult childhood, a lack of empathy, sadistic behaviour and difficulties forming and maintaining relationships -- these on their own offer few clues for a mental illness diagnosis.

For a proper assessment, offenders should ideally be admitted to a highsecurity hospital where psychiatrists and other specialists monitor them day and night to observe their reactions to people, situations and the stresses of daily life.

This could and should take several months, Fazel said, and should be combined with a detailed search of the offender's life course -- including interviews with family, old friends, online contacts, analyses of diaries, and going back to school reports and earlier notes from doctors or other professionals.

"It's too early at the moment to say much about this man in terms of diagnosis, but it's very important to read his writings, interview informants, friends and family and get as much objective information as possible." -Reuters

5

Sunday, July 31, 2011

Screening has little impact on breast cancer eaths: study LONDON: Falling breast cancer death rates have little to do with breast screening but are down to better treatment and health systems, scientists said on Friday, in a study likely to fuel a long-running row over the merits of mammograms.

Researchers analyzed data from three pairs of countries in Europe and found that although breast cancer screening programs had been introduced 10 to 15 years earlier in some areas than in others, declines in death rates were similar.

The findings suggest that "improvements in treatment and in the efficiency of healthcare systems may be more plausible explanations" for falling deaths rates from breast cancer, they wrote in a study in the British Medical Journal.

World Health Organization (WHO) data show that deaths from breast cancer are decreasing in the United States, Australia, and most Nordic and western European countries but breast screening is a hot topic among experts who disagree about whether nationwide mammogram programs do more harm than good.

The fear among some is that overdiagnosis -- when screening picks up tumors that would never have pre-

sented a problem -- may mean many women are undergoing unnecessary radical treatment, suffering the physical and psychological impact of a breast cancer diagnosis that would otherwise not have come up.

But sweeping changes in U.S. guidelines two years ago that scaled back recommendations on breast screening caused an uproar among patient and doctors groups who said they put women at risk. That was swiftly followed by two conflicting European studies which further fueled the row.

The first, by Danish scientists, found that breast cancer screening programs of the type run by health services in Europe, the United States and other rich nations do nothing to reduce death rates from the disease, while the second, by a British team, found "substantial and significant reduction in breast cancer deaths" due to screening.

Then last month, researchers who conducted the longest ever breast cancer screening said it showed that regular mammograms prevent deaths from breast cancer, and that the number of lives saved increases over time.

Every year, breast cancer kills

around 500,000 people globally and is diagnosed in close to 1.3 million people.

For this study, researchers from Britain, France and Norway used WHO data to compare trends in breast cancer death rates within three pairs of countries - Northern Ireland versus Republic of Ireland, the Netherlands versus Belgium and Flanders, and Sweden versus Norway. Each pair had similar healthcare services and similar levels of risk factors for breast cancer mortality, but were different in that mammography screening was implemented about 10 to 15 years later in the second country of each pair.

The team, lead by Philippe Autier of the International Prevention Research Institute in Lyon, France, said they expected that reductions in breast cancer death rates would show up earlier in countries where screening was introduced sooner, but their analysis in fact showed little difference. The findings showed that from 1989 to 2006, deaths from breast cancer fell by 29 percent in Northern Ireland and 26 Percent in the Republic of Ireland; by 25 percent in the Netherlands, 20 percent in Belgium and 25 percent in

Flanders; and by 16 percent in Sweden and 24 percent in Norway.

"Trends in breast cancer mortality rates varied little between countries where women had been screened by

mammography for a considerable time compared with those where women were largely unscreened," Autier's team wrote.

"This is in sharp contrast with the tem-

poral difference of 10 to 15 years in implementation of mammography screening and suggests that screening has not played a direct part in the reductions of breast cancer mortality." -Reuters

Obama unveils sharp increase in auto fuel economy WA S H I N G T O N / D E T R O I T: Several major auto makers on Friday embraced the Obama administration's proposal to push the industry further away from oncedominant gas guzzlers to more lean and efficient vehicles.

The proposal, which is the result of months of negotiations between the Obama administration and auto

makers, would require the companies to reach an average fuel efficiency across their U.S. fleets of 54.5 miles per gallon by 2025.

"This agreement on fuel standards represents the single most important step we've ever taken as a nation to reduce our dependence on foreign oil," Obama said at an event announcing the new standards.

Flanked by top auto maker executives, Obama said the new rules would lower the country's oil use by 2.2 million barrels a day over the next 15 years.

The rules will cut more than 6 billion tons of carbon emissions for the duration of the program.

"Can we do it? Well, we put a man on the moon; of course we can do

this," said Fadel Gheit, senior analyst covering the oil and gas sector at Oppenheimer. "If the will is there, we will be successful and this is the best way to achieve this by pushing and cajoling."

While fleets would be required to reach corporate average fuel economy, or CAFE, standards of 54.5 mpg, under real world driving conditions that can sap fuel economy, consumers will likely get fewer miles per gallon in many cases.

The goal is still a major step up from current standards that require auto makers to achieve 35.5 mpg by 2016.

"Many OPEC oil ministers are now having sleepless nights, because of the millions of barrels of oil ... the U.S. will now not be importing," Democratic Congressman Edward Markey told Reuters in a telephone interview.

Markey was co-author of the law that mandated higher fuel economy standards.

CHALLENGE FOR TRUCKS The biggest auto sellers -General Motors, Ford Motor Co, Chrysler, which is run by Italy's Fiat, Toyota Motor Corp and Honda -- have all backed the administration's plan.

The new program includes average increases in fuel economy of 5 percent for cars and 3.5 percent for

light trucks through 2021, with a 5 percent increase for all vehicles after that.

"We have a challenge on trucks, but we think this is a fair way to handle it," Sue Cischke, Ford vice president for sustainability and the environment, told reporters at the event.

Mercedes-Benz, the luxury car line owned by German car and truck maker Daimler, did not back the new program, saying it "clearly favors large SUVs and pickup trucks."

To meet the new targets, auto makers will have to cut weight from their vehicles, develop smaller engines and boost fuel efficiency through direct injection, start-stop technology and turbochargers.

The Center for Automotive Research projected bringing cars and trucks to a 56 miles per gallon CAFE standard would cost about $6,700 per vehicle. The study has been criticized for overestimating the cost of technologies.

"I have to really question the sanity behind that," Dennis Virag, president of Automotive Consulting Group Inc, said of the new CAFE standard. "It's going to be a very difficult mark to achieve and I think it's going to be very costly."

The Obama administration declined to release any estimates on Friday about how the proposal will

impact the retail costs of vehicles. It said it is still studying potential impacts and will release details later.

The Environmental Protection Agency and Department of Transportation, the agencies developing the new standards, will release the full details of the program by the end of September.

The agencies have pledged to undertake a comprehensive midterm evaluation of the standards before finalizing the targets for cars and light duty trucks after 2021.

They are also considering implementing incentive programs to promote electric and plug-in hybrid vehicles, and plan to propose credits for efficiency improvements for air conditioners.

For more than 20 years, aluminum producers have been working with U.S. automakers to design more of the light weight metal into cars to lower emissions.

Following Obama's announcement, Randall Scheps, chairman of the Aluminum Association's Aluminum Transportation Group said in a statement, "Vehicles downweighted with aluminum are inherently more fuel efficient than heavier ones made from steel. Several leading vehicles use all-aluminum bodies, and we will see more vehicles go all aluminum in the next 10 years." -Reuters

Flu “super antibody� may bring universal shot closer LONDON: Scientists have found a flu "super antibody" called FI6 that can fight all types of influenza A viruses that cause disease in humans and animals and say their discovery may be a turning point in the development of new flu treatments.

Researchers from Britain and Switzerland used a new method aimed at beating "needle-in-ahaystack-type-odds" and managed to identify an antibody from a human patient which neutralizes both main groups of influenza A viruses.

Although it is an early step, they said, it is an important one and in time may pave the way for the development of a universal flu vaccine.

Vaccine makers currently have to change the formulations of their flu shots every year to make sure they protect against the strains of the virus circulating. This is a cumbersome process which takes time and

money, so the goal is come up with a universal flu vaccine that could protect people from all flu strains for decades, or even for life.

Dozens of companies make influenza vaccines, including Sanofi, GlaxoSmithKline, Novartis, AstraZeneca and CSL. "As we saw with the 2009 pandemic, a comparatively mild strain of influenza can place a significant burden on emergency services. Having a universal treatment which can be given in emergency circumstances would be an invaluable asset," said John Skehel of Britain's National Institute for Medical Research, who worked on the study with colleagues from the privately-owned Swiss firm Humabs.

Antonio Lanzavecchia, Humabs' chief scientific officer and director of the Swiss Institute for Research in Biomedicine, said high rates of seasonal flu and the unpre-

dictability of possible future pandemics underlined the need for better treatments that target all flu viruses.

When someone is infected with the flu virus, their antibodies target the virus' hemagglutinin protein, the researchers explained in their study, which was published on Thursday in the journal Science.

Because this protein evolves so rapidly, there are currently 16 different subtypes of influenza A, which form two main groups. Humans usually produce antibodies to a specific subtype, and new vaccines are made each year to match these strains.

To make progress toward a universal shot that could be used every year, scientists need to identify the molecular signatures that prompt the development of broadly neutralizing antibodies.

Previous research work has found antibodies that work in

Group 1 influenza A viruses or against most Group 2 viruses, but not against both.

This team developed a method using X-ray crystallography to test very large numbers of human plasma cells, to increase their odds of finding an antibody even if it was extremely rare. When they identified FI6, they injected it into mice and ferrets and found that it protected the animals against infection by either a Group 1 or Group 2 influenza A virus.

"As the first and only antibody which targets all known subtypes of the influenza A virus, FI6 represents an important new treatment option," Lanzavecchia said in a statement. Researchers in the United States said last year they were having some success with another possible approach to developing a universal flu shot, using a two-step system of a vaccine using DNA to "prime" the immune system and then a traditional seasonal flu shot.

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International

Sunday, July 31, 2011

Turkey’s Gul says no crisis as top generals quit

ISTANBUL: Turkey's President Abdullah Gul speaks during a joint news conference with Bulgaria's President Georgi Parvanov (not pictured) after their meeting in central Sofia. -Reuters

Ultraconservative Muslims dominate Egypt protest CAIRO: Tens of thousands of ultraconservative Muslims in long beards, robes and prayer caps thronged Cairo's central Tahrir Square in a massive show of force on Friday, calling for the implementation of strict Islamic laws and sparring with liberal activists over their visions for a post-revolution Egypt.

According to the media reports, tt was the first rally with religious overtones in Egypt, and one of the largest, since the uprising that forced president Hosni Mubarak to step down in mid-February.

The strong showing by the Islamists demonstrated their powerful organisational abilities, which will likely help them in Parliamentary Elections later this year.

"Islamic. Islamic. Not Western or Eastern. No liberal or secular," chants of Salafis, who follow a strict form of Islam, echoed through the square. Others shouted: "With our soul and blood we defend you Islam."

They unfurled an Egyptian flag, removing the central emblem of an eagle and replacing the Islamic slogan: "There is no god but God and Muhammad is his prophet," similar to the insignia on the Saudi flag.

The youth activists who have been at the helm of mass protests calling for faster change from the country's interim military rulers withdrew from the rally soon after Friday prayers, accusing the Islamists of violating an agreement to avoid divisive issues.

"While the civil organisations are trying to respect the effort to complete the revolution by unifying the ranks, the Islamic groups insisted on breaking the unity and assisting the military council in a deal that I think will divide this country in two," said liberal activist Mustafa Shawki.

"This is what we were afraid of."

Several hundred protesters, mainly liberal and leftist groups, have camped out at the square for more than three weeks, demanding swifter justice for those blamed in the killing of nearly 900 protesters during the 18-day uprising and more measures to ensure Mubarak loyalists are purged from the government. It was a crowd vocally critical of the military council, which they accused of protecting Mubarak's regime.

Most of the Islamic groups, however, say the military needs time to break with the past.

The decision by the Salafis and the Muslim Brotherhood, Egypt's best organised political force, to participate significantly boosted the turnout.

But instead of a day of unity as had been advertised, the Islamists decided to flex their muscle, using the epicentre of the protests to press demands for a strict version of Islamic law.

Some Salafi Islamist groups mobilised their members to the square to oppose the adoption of a set of guidelines for drafting a new Constitution after Parliamentary Elections later this year. Buses from a number of cities transported followers, many who were in the square for the first time.

Liberal parties are worried religious groups will win a large share of Parliament and force an Islamic influence on the Constitution. The Islamists say nothing should restrict the newly elected Parliament's right to oversee the process of drafting the document.

"The liberals are talking about a civil state. This won't work in Egypt," said Tarek Shaheen, a 31-year-old resident of Ismailiya. "We want to prove to the outside world even before domestically that Egypt is Islamic, that it has a large Islamic trend and that we are not terrorists."

While opposing the measure, Muslim Brotherhood members did not press the issue Friday sticking to the agreement.

Salafis are ultraconservatives, close to Saudi Arabia's Wahhabi interpretation of Islam and more radical than the Brotherhood. They seek to emulate the austerity of Islam's early days and oppose a wide range of practices like intermingling of the sexes that they view as "un-Islamic".

Many also reject all forms of Western cultural influence, and preach that authorities must be respected.

Mubarak's regime cracked down heavily on Islamic groups, specifically the politicised Brotherhood, arrested thousands of its members.

Salafi groups are new to the political scene in Egypt.

Many like Shaheen felt that Egypt's Islamic identity is threatened, reflecting the growing mistrust between the different groups only months before the first Parliamentary Elections, the first after Mubarak's ouster.

Egypt's Constitution, which has been suspended by the military rulers, set Islamic law as the basis for legislation and nobody has proposed changing that clause. But some Islamic groups believe the liberal groups will use the guidelines to introduce what they perceive as Western values.

"Our religion is the Constitution," said Saber Mohammed, a 27-year-old Cairene wearing a short white robe and head cap, sporting the traditional bushy beard of a Salafi.

Ultraconservative Muslims dominate Egypt protest Nourhan Zamzam, a 29-yearold banker who supports the call for a civil state, said the ultraconservative Islamist groups are vying for influence but have little experience.

For her, the Salafi stance only undermines pressure on the military by dividing the

efforts of the protesters.

"This is actually a message to us, the revolutionaries, who are critical of the military council," she said. "This is a message to scare us: look infighting between groups is coming."

By sundown, a large number of Islamists began leaving the square peacefully and the sitin continued.

It was more tense in other cities.

In the southern city of Assiut, Salafist protesters beat up a group of protesters from the Communist party trying to join their demonstration, deputy police chief Yosri elGammasi said. At one point, some in the crowd yelled back at a speaker who criticized the idea of constitutional guidelines.

In the Sinai city of el-Arish, government troops clashed with Islamic militants firing rocket-propelled grenades and other heavy weapons outside a police station. Four people were killed, including a military officer and three civilians, and 18 people injured.

South of the capital in Minya province, gunmen fired on a car carrying Christians, killing two and injuring two, a military official said. It was the second killing in two weeks in the predominantly Christian village of Roman. While the motive was unknown, similar events have sparked religious violence in the past.

Officials spoke on condition of anonymity because they weren't authorized to brief the media. Friday's rally came a day after Egypt's Justice Ministry said Mubarak, along with his two sons, his former security chief and seven others, will be tried on Wednesday at a Cairo convention centre.

Mubarak, 83, faces charges of corruption and ordering the deadly use of force against protesters. -Online

ISTANBUL: President Abdullah Gul denied on Saturday that Turkey faced a crisis after the resignation of the country's four most senior military commanders, but acknowledged this had created an "extraordinary" situation.

The departure of the generals has caused turmoil in the military, giving Prime Minister Tayyip Erdogan an opportunity to extend his authority over the once-dominant armed forces, the second biggest in NATO. Chief of General Staff General Isik Kosaner stepped down on Friday evening along with the army, navy and air force commanders in protest over the detention of 250 officers on charges of conspiring against Erdogan's government.

In a farewell message to "brothers in arms," Kosaner said it was impossible to continue in his job as he could not defend the rights of men who had been detained as a consequence of a flawed judicial process.

Relations between the secularist military and Erdogan's socially conservative Justice and Development Party (AK) have been fraught since it first won power in 2002, due to mistrust of the AK's Islamist roots.

While the departures are embarrassing, they could give Erdogan a decisive victory over a military that sees itself as guardian of the secularist state envisioned by the soldier statesman and founder of modern Turkey, Mustafa Kemal Ataturk.

Analysts perceive little political threat to Erdogan's supremacy. AK won a third consecutive term, taking 50 percent of the vote, in a parliamentary election in June.

"Nobody should view this as any sort of crisis or continuing problem in Turkey," Gul, a former top AK member, told reporters on Saturday.

"Undoubtedly events yesterday were an extraordinary situation in themselves, but everything is on course."

Erdogan designated Kosaner's successor on Friday, as his office put out a statement naming paramilitary Gendarmerie commander General Necdet Ozel as new head of land forces and acting deputy chief of general staff, effectively making him next in line when Kosaner handed over the baton.

In years gone by, Turkey's generals were more likely to seize power than quit. They have staged three coups since 1960 and pushed an Islamist-led government from power in 1997.

Some founders of AK, including Erdogan, were members of the Welfare Party, an Islamist party whose coalition was forced out 14 years ago. But as prime minister, Erdogan has ended the military's dominance through a series of reforms aimed at advancing Turkey's chances of joining the European Union.

FOUR-STAR EARTHQUAKE "Four-star earthquake," a headline in Sabah newspaper said of the generals' decision, while papers also highlighted Kosaner's criticism of media reporting on the military.

"They tried to create the impression that the Turkish Armed Forces were a criminal organisation and ... the biased media encouraged this with all kinds of false stories, smears and allegations," Kosaner's statement said. -Reuters

US House and Senate divided over debt ceiling issue WASHINGTON: The US Congress has split along party lines as it seeks a solution to an ongoing deadlock over raising the nation's debt limit.

The House of Representatives passed a Republican bill proposed by Speaker John Boehner, but that was quickly killed by the Democratic-led Senate, BBC reported.

Senate leader Harry Reid is now seeking a vote on a rival plan he proposed.

The US risks defaulting on its financial obligations if a federal budget deal is not struck by 2 August.

Harry Reid: ''It's time to come to together and compromise'' The Boehner plan includes some $900bn of spending cuts and would raise the debt ceiling by a similar amount.

However it would require another vote during mid-2012 and includes language in support of a so-called "balanced budget amendment" to the US constitution - both rejected by the White House and the Senate leadership.

The House vote was delayed from Thursday after Mr Boehner struggled to win over a number of staunchly conservative Republicans, including newly elected representatives who back the Tea Party.

The plan eventually passed the House by 218-210, with 22 Republicans and every Democrat voting against.

Before the vote, Mr Boehner said the plan advanced the "great cause" of a balanced budget amendment.

Mr Boehner appeared heated in front of his colleagues in the House, slamming his fist on a podium on Friday evening and calling for lawmakers to pass his proposal. Mr Boehner said Republicans had tried their "level best" to reach a deal. "I stuck my neck out a mile to get an agreement with the president of the United States," Mr Boehner said, referring to negotiations with President Barack Obama that twice broke down.

"My colleagues, I can tell you I have worked with the president and the administration since the beginning of this year to avoid being in this spot," he added. A lot of people in this town can never say yes," Mr Boehner said.

Shortly after the House passed its bill, the Democratic-led Senate voted to reject the Boehner plan in a late-evening vote on Friday.

Senate Majority Leader Harry Reid accused the Republicans of seeking to filibuster, or delay, proceedings by forcing a vote on his rival plan to achieve a 60-vote "supermajority" before passing.

Speaking after the Senate adjourned for the night, he accused his Republican counterpart of not being willing to negotiate.

"Unless there is a compromise, or they accept my bill, we're heading for economic disaster," he said.

The US government will start running out of money to pay all its bills unless a $14.3tn (?8.79tn) borrowing limit is increased by Tuesday.

Democrats say the Republican bill as passed would cause immeasurable damage to the economy because it would force Congress to vote on another extension of the debt ceiling early in 2012, a time when presidential election campaigns will be in full swing.

'Out of time' The White House quickly responded to the passage of Mr Boehner's bill, calling for a "compromise that avoids default and lays the basis for balanced deficit reduction".

Earlier, the White House said Mr Boehner was taking a dangerous approach with his proposal.

"Amend the constitution or default is a highly dangerous game to play," White House spokesman Jay Carney said.

Meanwhile, Mr Obama accused House Republicans of pursuing a partisan bill that would force Washington into another debt limit fight within months. -Reuters

Libya conflict: Nato targets TV satellite dishes TRIPOLI: Nato says it has disabled three Libyan state TV satellite transmission dishes in the capital, Tripoli, through a "precision air strike".

It said the operation was intended to stop "inflammatory broadcasts" by Col Muammar Gaddafi's regime.

Nato said it was in the process of assessing the effect of the strike.

Coalition forces began operations in Libya in March, under a UN mandate authorising military action for the protection of civilians.

Libyan rebels began an uprising against Col Gaddafi in February. Despite Nato's intervention, they have struggled to break a military deadlock.

A Nato statement said the strike was "performed by Nato fighter aircraft using state-ofthe-art precision guided munitions", and that there had been "due consideration and careful

planning to minimise the risks of casualties".

"Our intervention was necessary as TV was being used as an integral component of the regime apparatus designed to systematically oppress and threaten civilians and to incite attacks against them," it said.

It said the strike would "reduce the regime's ability to oppress civilians" but also "preserve television broadcast infrastructure that will be needed after the conflict".

Libyan state TV was still on air following the Nato statement. Reports from Tripoli said a series of loud explosions were heard in the city centre late on Friday evening.

Libyan state TV reported that civilian targets had been hit, though this could not be verified. The Libyan capital has been a regular target for Nato air strikes in recent weeks. -Online

Asia-Pacific states seek UN help to ease obstruction on trading NEW YORK: Government representatives from some 30 countries in the AsiaPacific region sought United Nations assistance in their efforts to have bottlenecks to intra-regional trade and investment removed to foster growth, particularly in the poorest nations.

At the end of a three-day meeting in Bangkok of the Committee on Trade and Investment, a regional policymakers' forum convened biannually by the UN Economic and Social Commission for Asia

and the Pacific (ESCAP), delegates also highlighted the need for UN support to help developing countries realize their huge potential for trade and investment in low-carbon goods, technologies and services.

Discussions focused on how developing countries in the Asia-Pacific region can take advantage of emerging opportunities to maintain the growth in trade and investment that has played a key role in the global economic recovery over the past year.

Measures recommended by the forum for ESCAP action range from simplification of trade procedures, compliance with agricultural product standards, to ensuring that small and medium-sized enterprises have a greater share in international trade.

The discussions were informed by the findings of the ESCAP Asia-Pacific Trade and Investment Report released earlier this week, which highlighted the need for the region to reduce export reliance on developed world markets, and to ensure that all

countries in the region have an adequate share in its fast-growing trade and investment.

The committee emphasized the importance of trade facilitation to reduce the cost of transit, documentation, customs clearance and other non-tariff barriers, including cumbersome standards and certification requirements. To facilitate crossborder trade, the committee called for a regional agreement on electronic trade data and document exchange for the Asia-

Pacific region.

Countries in the region agreed that trade and investment in low-carbon goods, services and technologies can help in the mitigation and adaptation to climate change, but also took note of the constraints faced by developing countries in that regard.

Governments have an important role in providing policy support, in particular, high quality regulatory framework to attract climate-friendly investment, the delegates stressed. -Online

International & Continuations

Sunday, July 31 , 2011

Libyan rebel leader killed by allied militia BENGHAZI: Libyan rebels say the gunmen who shot dead their military chief were fighters allied in their struggle to overthrow Muammar Gaddafi, raising questions over divisions and lawlessness within rebel ranks.

The assassination of Abdel Fattah Younes, apparently by his own side, has hurt the opposition just as it was winning broader international recognition and launching an offensive against Gaddafi's forces in the west of the country.

After 24 hours of confusion, rebel minister Ali Tarhouni said Younes had been killed by fighters who went to fetch him from the front and that his bullet-riddled and partially burned body was found at ranch near the rebel capital of Benghazi.

Tarhouni said a militia leader had been arrested and had confessed that his subordinates had carried out the killing.

"It was not him. His lieutenants did it," Tarhouni told reporters late on Friday, adding that the killers were at large.

Younes had been part of Gaddafi's inner circle since the 1969 coup that brought the Libyan colonel to power and was interior minister before defecting to the rebels in February.

Many rebels had been uncomfortable working under a man who had been so close to Gaddafi for 41 years, and rebel sources said on Thursday Younes had been recalled over suspicions that he or his family were secretly in contact with Gaddafi.

Rebels were divided over who had killed Younes, some suspecting his execution was ordered by rebel leaders for treason, many believing he was killed by Gaddafi supporters who had infiltrated rebel ranks and still others suggesting a

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rebel splinter group had acted alone.

Whatever the truth, the killing deepens concerns among the rebels' Western backers, keen to see them prevail in a five-month-old civil war but frustrated by their lack of unity and nervous about the influence of Islamists.

The United States, which like some 30 other nations has formally recognized the opposition, called for solidarity.

"What's important is that they work both diligently and transparently to ensure the unity of the Libyan opposition," State Department spokesman Mark Toner said in Washington.

REBELS TARGET GADDAFI STRONGHOLD Rebels who rose up against Gaddafi in February have seized swathes of the country but remain poorly equipped and are still far from ousting him, despite support from NATO airstrikes.

Anti-Gaddafi forces said on Saturday they had encircled the Libyan leader's last stronghold in the Western Mountain region and hoped to seize it soon. Rebel tanks fired at Tiji, where an estimated 500 government troops are stationed, and said the blasts could be heard from the nearby town of Hawamid, which was captured on Thursday.

"We have Tiji surrounded and we hope to take it by the end of the day," rebel commander Nasir al Hamdi, a former colonel in Gaddafi's police force, told Reuters as gunfire crackled in the distance and he surveyed a battleground scattered with tankshell casings and government anti-aircraft bullets.

NATO airstrikes continued in western Libya overnight.

NATO said it had bombed three satellite dishes in Tripoli to stop "terror broadcasting",

but Libyan state TV remained on the air.

In the east, confusion reigned over who had killed Younes.

Rebel fighters said members of the February 17 Martyrs' Brigade, a rebel group that fights on the front and helps enforce security in the rebelheld east, had collected Younes from the frontline near the oil town of Brega on Thursday.

Younes knew and trusted the men who came to fetch him and went without a struggle when they explained they had a judge's order to take him to Benghazi for questioning, the rebels said.

The February 17 Martyrs Brigade is made up largely of civilian volunteers led by military commanders and is widely used by the Transitional National Council for some policing duties.

However, Tarhouni, the rebel minister, said it was not this group but another militia, the Obaida Ibn Jarrah Brigade, who had killed Younes.

Locals said the Obaida Ibn Jarrah Brigade was mainly comprised of former prisoners of Gaddafi's notorious Abu Salim prison in the capital Tripoli, who had always distrusted Younes.

Named after one of the companions of Islam's Prophet Mohammed, the group is likely to have Islamist leanings.

One rebel commander, who asked not to be named, said Islamists whom Younes had targeted as interior minister may have killed him in retaliation.

"Some of those Islamists are now fighting with the rebels and they have always refused to fight under Younes's command and have always viewed him with suspicion," he said.

"I don't think the investigation will lead anywhere. They don't dare to touch the Islamists."-Reuters

Continued from page 8

government's stance on judicial decisions were discussed during the meeting.

Prior to this meeting, the PML-N chief met prominent Khyber-Pakhtunkhwa politician and former ANP leader Fareed Toofan who said that in the present situation, the people of the country are looking towards Nawaz Sharif.

Meanwhile addressing a gathering in Abbottabad "Former dictator Pervez Musharraf trampled the judiciary and arrested respectable judges to get his powers strengthened, but he could not succeed.

Today, president Zardari is pursuing the same path," the PML-N chief said while addressing a public meeting at Shangila Gali of Abbottabad city. -Agencies

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Continued from page 8

profits and put that money toward clean energy research, which would really make a big difference."

Obama further stated that in the long run they'll "have to harness the potential of start ups and clean energy companies across America."

"We've set an aggressive target, and the companies here are stepping up to the plate. By 2025, the average fuel economy of their vehicles will nearly double, to almost 55 miles per gallon," Obama said. -INP

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Continued from page 1

the mutually agreed limit of end-September 2010 level,' he added.

He said the government has also expressed its commitment to continue with a stance of zero borrowings from SBP in yearly flow terms in FY12, which bodes well for anchoring inflation expectations. He, however, observed that the developments related to expected financial inflows and pattern of government borrowings from scheduled banks will need to be monitored closely to assess potential risks for macroeconomic stability.

SBP Acting Governor said that a relative decline in average CPI inflation compared to earlier projections and a gradual buildup of foreign exchange reserves provide a modicum of macroeconomic stability as the economy begins a new fiscal year.

Anwar noted that expectations of inflation are fairly entrenched in the economy. 'Thus, a meaningful reduction in inflation would require consistent and credible implementation of monetary and fiscal policies,' he added.

He observed that acknowledging the persistence of inflation, the government has announced an inflation target of 12 percent for FY12. 'The government has also provided in the Medium Term Budgetary Framework (MTBF) a desired path of inflation of 9.5 percent and 8 percent for the subsequent two years,' he said, adding that conditional upon factors such as adjustments in the administered prices of electricity and oil and a projected broad money (M2) growth of 15 to 16 percent, SBP's forecast of average inflation ranges between 11 and 12 percent during FY12.

'The underlying reasons of growing government borrowings are structural and not specific to FY11 though it must be acknowledged that FY11 was a difficult year given floods and other pressing spending needs. The consolidated fiscal data has not been released, however, provisional estimates from the financing side indicate that the fiscal deficit in FY11 may have reached close to Rs1127 billion or 6.2 percent of GDP. Excluding the one-off payment of Rs120 billion to partially settle the circular debt in the energy sector, the fiscal deficit in FY11 comes down to 5.6 percent of GDP,' he added.

Anwar underscored the need to accelerate the implementation of fiscal reforms currently being considered by the government. He observed that a path of fiscal deficit in the next three fiscal years has been provided in the Medium Term Budgetary Framework (MTBF), which shows a budget deficit target of 4 percent for FY12. 'Moreover, the government is planning to reduce the revenue deficit to zero in FY12 with a projected surplus in the following two years. This assumes an ambitious increase in tax collection by the Federal Board of Revenue (FBR),' he said, adding that an effective implementation of fiscal reforms, especially those related to broadening of the tax base, and better coordination with the provinces are urgently required to implement this plan.

He said that unlike fiscal accounts, the position of the external current account improved considerably in FY11 and contrary to earlier projections, a surplus of $542 million has been realized. 'A significant and unexpected growth of 29.4 percent in exports and a robust growth in workers' remittances, which now stand at $11.2 billion, are the primary factors responsible for this improvement,' he said and added that fragile global economic conditions and dominance of price effect in both exports and imports, which was more pronounced in H2-FY11, has increased exposure of the economy to movements in international commodity prices.

SBP Acting Governor observed that the external current account is expected to show a modest deficit of 0.8 percent of GDP in FY12. 'Given an increase in debt obligations and continued suspension of IMF's Stand-By Arrangement (SBA) financing even a small external current account deficit could pose challenges in terms of maintaining an upward trajectory of SBP's foreign

7

SSudan says Khartoum drops transit fee demand JUBA: South Sudan has agreed with Khartoum that it will a pay a pipeline transit fee for its oil in line with international standards after the north dropped its demand for a "discriminatory" $22.8 a barrel, a senior southern official said on Saturday.

The comments could ease tensions between the two countries after the South, the newest African nation, accused Khartoum on Monday of "broad daylight robbery" and starting an economic war.

South Sudan became independent from Sudan on July 9, taking with it 75 per cent of the African country's 500,000 barrels a day of oil production -the lifeline for north and south.

South Sudan will have to pay Khartoum a fee to carry its oil through a pipeline to the countries' only Red Sea port but the two have yet to agree on how to divide oil revenues that have so far been split equally.

Khartoum has withdrawn an earlier request for a pipeline fee of $22.8 per barrel -- about 20 per cent of the oil's export value -- said Pagan Amum, secretary general of the ruling southern Sudan People's Liberation Movement (SPLM).

Both sides agreed at talks in Ethiopia that the South would pay a fee in line with international norms, Amum said after his return from Addis Ababa, without being specific.-Reuters

ARGHANDAB : US troops from the Combined Task Force 1-67 under Afghanistan's International Security Assistance Force patrol with armored vehicles.-Reuters

Billionaire Ross bets on v-shaped Irish recovery DUBLIN: Positive news from Ireland is prompting a growing number of investors to look at the troubled euro zone economy, said billionaire Wilbur Ross, who this week invested 300 million euros in its largest lender.

Ross surprised many by joining Canadian firm Fairfax Financial and California's Capital Group in a 1.1 billion euro ($1.6 billion) investment in Bank of Ireland (BKIR.I), the first significant foreign investment in Ireland's banking sector since it collapsed in 2008.

Ross said the deal was fueled by positive news from Ireland that indicate it is breaking away from its troubled peers in

southern Europe and embarking on a solid recovery.

These include the government's announcement it was ahead of target to bring its budget deficit under control, lack of protest against a harsh austerity program, and the European Union's decision this month to ease the terms of an 85-billioneuro international bailout.

"The macro picture of Ireland ... is clearly headed in the right direction and will very likely have a more vshaped recovery than most other European countries," Ross told Reuters in a telephone interview late on Friday.

"We have gotten a lot of

inquires from other investing institutions that know us, asking about Ireland and suggesting that they at least are now willing to take a much better look than they were prior to all of this."

Irish sovereign debt prices staged an impressive rally this week in spite of growing bond market volatility elsewhere in the euro zone, in part due to the vote of confidence from the investment in Bank of Ireland.

Although Ireland is mid-way through an unprecedented eightyear cycle of austerity, social unrest is almost non-existent and unlike Greece and Portugal, Ireland is expected to return to growth this year.-Reuters

aexchange reserves,' he added.

He noted that the main risk in external accounts emanates from the declining capital and financial flows, which have dropped to $1.8 billion in FY11 from $5.3 billion in FY10. 'The perceived high country risk, relative to other emerging market economies, is the main factor underlying the reluctance of private foreign investors to invest in the country,' he said, adding that the delays in implementation of economic reforms, on the other hand, resulted in shortfalls in estimated foreign loans. Nonetheless, by end-June 2011, SBP's liquid foreign exchange reserves have increased to $14.8 billion from $13.0 billion at end-June 2010.

Anwar said that the gross fixed capital formation by the private sector contracted by 3.1 percent, leading to a decline in total gross investment to 13.4 percent of GDP; the lowest level since FY74. He, however, observed that due to strong growth in real consumption expenditures, aggregate domestic demand grew by 5.9 percent.

He said that at the same time, national savings have increased to 13.8 per cent of GDP, mainly due to net factor income from abroad.

'Consequently, the gap between national savings and investment as a percent of GDP has turned marginally positive,' he added.

'Against this backdrop, SBP has decided to reduce the policy rate by 50 basis points to 13.5 percent effective 1st August 2011,' he concluded. -Online

No #4

Continued from page 1

Prime Minister was talking to the Governor of Sindh Dr Ishrat-ul Ebad and the Chief Minister of Sindh Syed Qaim Ali Shah, soon after his arrival at Governor's House here on Saturday.

The prime Minister emphasized that Parliament is the right forum to deliberate upon all significant national issues and propose solutions for redressal.

The Prime Minister appreciated the solidarity and support expressed by the Quaid of MQM Altaf Hussain for the AMN-RALLY organized by the Pakistan People's Party. This gesture he said reflect the political maturity of MQM leadership which would help to establish peace and security in Karachi which is the economic hub of the country.

Earlier both the Governor and the Chief Minister of Sindh briefed the Prime Minister on the political and security situation in Karachi and other parts of the province.

They also apprised him of the progress of development work in different parts of Sindh. They also appreciated Prime Minister's efforts for developing reconciliation among political forces. -NNI

No #5

Continued from page 1

US $ 250 million in the value added textile sector and Increase in exports of over US $ 3 billion per annum, Gilani claimed.

He added that the indirect benefits would generation of additional demand for cotton, yarn and cloth, increased demand for cement, steel and construction material, increased revenue from movement of goods and transport activities and creation of a large number of indirect jobs during the construction stage. We realize that we need to create an investor-friendly environment to encourage economic development, with special focus on skill development, productivity, quality assurance and compliance needs, he said.

Today, market shares depend greatly on price and quality advantages driven by efficiency, he added. Pakistan Textile City, the Premier said, will alow entrepreneurs to focus on developing skills in manufacturing and marketing of their quality products and they will not have to worry about matters such as water supply, power outages and security.

"Pakistan must take full advantage of the opportunities that are available. We have ample labor force. What we need is investment in developing our marketing abilities and enhancement of skills of our labor force.

He invited the textile community of Pakistani businessmen and investors to come forward and avail the world class infrastructure facilities which the Textile City is offering. It is our combined duty to be part of Pakistan's march towards becoming a hub of quality textile products, he said.

No #6

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as there would be no risk rate reduction if the foreign fund was managed to be transferred to KUTC through Pakistan Railways (PR), high-ups in the KUTC were reluctant to make the indirect transfer.

Despite technical hindrances, the issue was unresolved for the last 18 months thus further delaying the project.

The project had already gone through different studies like Environmental Impact Assessment Study (EIAS), resettlement action plan etc. under the aegis of Japan External Trade Organization (JETRO). It is to mention here that the KCR project, initiated to mitigate traffic problems in the metropolis, was to be funded by the Government of Japan through the Japan Bank of International Cooperation (JBIC). Tokyo has commissioned 100 per cent funding for the project under "STEP Loan" at 0.2 per cent markup rate for a 40-year payback time, including a 10-year grace period.

No #7

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two separate bomb and gun attacks in two districts of Baluchistan.

Baluch nationalists have waged a low-scale insurgency for decades but Taliban militants with links to al Qaeda have also been active in Baluchistan, the largest but poorest of Pakistan's four provinces, and home to the country's largest gas and oil reserves. -Agencies

No #8

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rojects of about 2297 MW, one coal power project of 405 MW, one project for development of infrastructure and mining and power generation of Thar coal, four projects of small and medium dams, five projects of transmission lines and power distribution, one project of alternative energy and two projects of geological survey of Pakistan seeking technical assistance, financing and Engineering Procurement Contract. Minister for Water and Power, Syed Naveed Qamar has said that through the JEWG, Chinese government, companies, investors and entrepreneurs will be invited and encouraged to participate in various initiatives of the Government of Pakistan undertaken for the development of power sector.

The Government will facilitate and provide incentives to the Chinese for investment in the water, power, and other energy sector projects. The government has always encouraged and welcomed participation of Chinese entrepreneurs, business houses and investors to participate in the development of all sectors of our economy including the power sector.

The government is fully committed in resolving the prevalent energy shortages in the country and achieving energy security objectives on sustainable basis, he added. He expressed with hope that his visit to Beijing to lead JEWG will be fruitful and the country will get more cooperation from China in the energy sector. Mr. Qamar will reach Beijing on Sunday to attend JEWG to be held on 1-2 August. NNI

No #9

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230,000 tube-well pumps in Pakistan are connected to the national power grid and consume 10 percent of electricity. He said, "Most of these pumps are highly inefficient and if all of those pumps are replaced, Pakistan can save approximately 1,000 MW of electricity." This would significantly reduce energy shortages in the country, he added.

He said Pakistan is the world's fourth largest user of ground water for irrigation. The agriculture sector is the third largest consumer of energy in Pakistan and tube-well pump sets are a major component of this demand for electricity, he added.

John Morgan said through these programs the US Government is now working with Pakistan to reduce energy transmission losses, improve energy production, and increase efficiency.

"The campaign will inform farmers around the country how they can help reduce energy use and how they can save costs for themselves," he added. John Plunger, Chief of the project said that six leading and ISO certified motor-pump suppliers companies have been engaged for the project in which USAID will provide 50 per cent subsidy.

The farmers just have to call the center in Lahore on the following number 111-749-260.

A well placed audit system has been introduced to ensure accountability of the project. So far 7,010 farmers have shown interest for this project including 2,557 who have deposited Rs 1500 as initial payment.

Energy audit teams have conducted 5,565 energy audits and audit work for 3,819 had been completed at the end of June 2011. Furthermore 703 have made payments and 628 motor-pumps sets have been installed while other applications are in process. -Agencies

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8

Judiciary-Executive wrangling

PM to brief MPs over govt stance ISLAMABAD: The government has summoned the National Assembly (NA) to meet on Monday to discuss the critical situation arising from the recent tussle between executive and judiciary during which the Prime Minister

ment regarding endorsement of powers of the Prime Minister.

The resolution would be supported by all allies of the PPP. Prime Minister would place the whole situation in front of the parliament and his address would focus on powers of PM

Sharif flays govt for disobeying judiciary MURREE: The Pakistan Muslim League-Nawaz (PMLN) chief Nawaz Sharif said on Saturday that there is no doubt about the supremacy of parliament but the government will not be allowed to jeopardise judiciary.

Addressing a high-level consultative meeting of the PMLN, Nawaz Sharif said the government would have to abide by the orders of the judiciary.

He said Pakistan's future is linked with supremacy of law and that the PML-N would never disappoint the nation in this regard.

The PML-N chief said his party did not believe in person-

al or party approach, adding that the PML-N will continue to raise its voice for the rights of the people. "We will not allow the parliament to safeguard corruption, neither we will allow anyone to attack the parliament," he said.

According to sources, the PML-N consultative meeting decided that the party would stick to its principled stance of implementation of the verdicts of judiciary. The overall political situation in the country, new parliamentary session starting tomorrow (Monday) various cases under process in the Supreme Court and See # 1 Page 7

would take on board the parliamentarians regarding the executive stand.

The session had been summoned by President Asif Ali Zardari on the advice of Prime Minister Yousaf Raza Gilani.

According to sources, during the session the federal government is expected to get a resolution passed from the parlia-

which have been delegated to him by the parliament and it is his right to run the administrative affairs as chief executive.

The powers of judiciary and executive are well defined and no other authority can use the authority of Chief Executive and if this is done than it would be an insult to the parliament.

Source said the speech of the

RIAZ NEWS AGENCY Cell # 0333-5373137

Sunday, July 31, 2011

prime minister will be polite and will give a message to the judiciary and other organs of the state that all institutions should work under their ambit and the legal and constitutional framework.

Sources said that the PPP will also ask Parliament to lend suggestion to normalize current situation in the country.

The President, sources added, was also mulling to convene senate session to the powers between the judiciary and executive.

Sources further said that after his address the government and his allied parties would hold a debate on powers of PM after which a resolution is likely to be passed through the National Assembly.

While on the other hand PMLN sources told Online that it would not support any resolution which would be against the judiciary while JUI-F and MQM would keep a safe distance from this scenario.

However, the next assembly session summoned by the government would likely see a fresh showdown between the treasury and the opposition sides.

On the other hand, Islamabad police have made elaborate security arrangements for the session of parliament to be held today (Monday). Sources said it has been decided to enhance mobile patrolling in the city and strict checking is also being ensured at all the entry and exit points of the Capital. -Online

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China, India oil demand spurring price: US WASHINGTON: US President Barack Obama said that the increasing demand of oil in countries like India and China is leading to the rise in oil prices.

"For decades, we've left our economy vulnerable to increases in the price of oil. And with the demand for oil going up in countries like China and India, the problem is only getting worse," Obama said in his speech on fuel efficiency standards for cars and light-duty trucks location.

"The demand for oil is inexorably rising, far faster than supply. And that means prices will keep going up unless we do something about our own dependence on oil. That's the reality," he said.

However, he added that there is no quick fix to the problem.

"There's no silver bullet here.

But there are steps we can take now that will help us become more energy independent."

"So I've laid out an energy strategy that would do that. In the short term, we need to increase safe and responsible oil production here at home to meet our current energy needs.

And even those who are proponents of shifting away from fossil fuels have to acknowledge that we're not going to suddenly replace oil throughout the economy. We're going to need to produce all the oil we can," he said.

He added, "While we're at it, we need to get rid of, I think, the $4 billion in subsidies we provide the oil and gas companies every year at a time when they're earning near-record See # 2 Page 7

KARACHI: Workers of PPP, MQM and other parties holding each others hands to show solidarity during peace rally organized by government of Sindh. -Online

Justice Javed rejects clash of State organs LAHORE: Justice Javed Iqbal, senior most judge of Supreme Court (SC) has said that there in no clash between government and judiciary and judiciary has no desire for power.

He said this while talking to media men here Saturday. He held SC works within constitutional parameters.

SC has said in its decisions that parliament is supreme; he said adding SC has also said in its verdicts that powers for appointment and transferring the officers rest with the executive. SC belongs to Pakistan and government also belongs to Pakistan, he remarked. It has to be seen what is in the

interest of Pakistan, he underlined. If any hard decision from the SC will be in the national interest, he added.

Responding to a question he said it is not correct that government is not implementing court's decisions.

Government has implemented all vital decisions of SC, he added. One or two decisions have been reviewed and verdict has yet to come, he held.

Government gets time till the announcement of decision, he added.

Government has never said that it will not implement court's decisions, delay has occurred but the right to review the decisions

is enshrined in the constitution.

He underscored judiciary was exercising the powers which have been spelt out in the constitution.

All should be proud of armed forces, he said.

Certain occasions came when a lot could happen if armed forces wanted so.

But it will never happen so because SC had stemmed it no one can abrogate constitution. Democracy is in place in the country and it will gain strength, he observed.

Steps taken by SC against corruption have led to remarkable decline in corruption, Justice Javed Iqbal observed. -Online

Mullen uncertain over troops pay if US defaults KANDAHAR: It is unclear if the United States will be able to pay troops on time in the event of a debt default, the top US military officer told troops in Afghanistan on Saturday.

Admiral Mike Mullen, chairman of the US military's Joint Chiefs of Staff, said Pentagon officials were working hard to plan for a potential default but cautioned that the circumstances were extraordinary.

"So I honestly can't answer that question," he told troops at Kandahar air base in southern Afghanistan, as several expressed anxiety over budget wrangling in Washington.

Potentially suspending pay to US forces waging wars in Afghanistan and Iraq is an extremely sensitive subject in the United States and Mullen acknowledged that many troops lived paycheck to paycheck.

"So if paychecks were to stop, it would have a devastating impact," Mullen said, answering questions

from troops.

"I'd like to give you a better answer than that right now, I just honestly don't know," he said.

The United States has warned that it will run out of money to pay all of its bills after August 2 without a deal from Congress to raise a $14.3 trillion debt ceiling. Where US troops fall in priority for payment in a default has not been made clear.

With $172 billion of revenue between August 3 and August 31, the US Treasury could fully fund Social Security payments, Medicare and Medicaid, interest on the debt, defence vendor payments and unemployment insurance, found a study by the Washingtonbased Bipartisan Policy Center.

But that would leave entire government departments - such as Labour, Commerce, Energy and Justice - unfunded, and many others unpaid, like active-duty troops and the federal workforce.

Mullen said he believed that troops would be paid eventually, and added that there was an expectation US forces, seen as essential to national security, would need to show up for work.

"I have confidence that at some point in time whatever compensation you were owed you will be given," he said.

"But I don't know mechanically exactly how that would happen.

And it is a huge concern."

While a group of congressmen pushed forward a bill this week to ensure that the active military servicemen still get paid in the case of default, there's no firm plan yet.

The White House hasn't made any assurances and neither has the Treasury Department. Some financial organisations that service military clients, like USAA and the Andrews Federal Credit Union, have stepped up to say that they will advance pay if there is a default. Reuters

UN adds Pakistani Taliban to ban list UNITED NATIONS: The UN Security Council has slapped sanctions, including an assets freeze and travel ban, on the al Qaeda linked Pakistani Taliban, which is believed to be behind a string of terror attacks in that country and last year's botched bombing attempt on New York's Times Square.

The powerful council on Friday put the Tehrik-e-Taliban Pakistan (TTP) on its international anti-terrorism sanctions list, a move highlighting the terrorist group's growing capacity to strike.

The decision to target the Pakistani Taliban comes at a time when the UN is seeking to encourage the Afghan Taliban to pursue peace talks with the government there, a prelude to a US withdrawal from the war-ravaged

country.

The UK welcomed the TTP's addition to the sanctions list.

The move "sends a powerful signal of the international community's solidarity and resolve in the fight against the TTP and international terrorism," said Mark Lyall Grant, the UK's envoy to the UN. "It (the group) has clear links to al Qaeda at an operational level.

Designating TTP under the sanctions regime will help to reduce its ability to operate effectively and perpetrate terrorist attacks."

The UN anti-terrorism blacklist imposes financial and travel ban aimed at restraining the extremists' capacity to strike.

According to the Obama administration, Faisal Shahzad, a naturalised US citizen of Pakistani

origin who planted the Times Square car bomb, had acknowledged that he was trained in Waziristan, a stronghold for alQaeda and Pakistani Taliban.

The Pakistani Taliban, thought to be behind a number of terror attacks in Pakistan that killed hundreds of people, was formally established in 2007 and is headed

by Hakimullah Mehsud.

On the other hand, US has welcomed the inclusion of Tehrik-ETaliban Pakistan to the UN sanctions list.

According to a state department statement issued from Washington, the UN Security Council ban on the terrorists' organization is a clear indication for terrorists' aides and supporters that the global body has zero tolerance for such acts. -Agencies

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