Talks with IMF clear hurdles

ISLAMABAD: The government hinted on Thursday that a breakthrough had been made in its talks with a visiting mission of the International Monetary Fund (IMF) by resolving key economic issues to pave the way for consideration of its case by the fund’s executive board for the release of the next tranche of $1.7 billion.
An official said the government and the IMF had agreed on a revised federal budget envisaging a fiscal deficit of 4.7 per cent, 13.5 per cent inflation and 2.8-3 per cent economic growth rate.
“We have handed over revised budget estimates with a 4.7 per cent fiscal deficit target and they were satisfied with it,” said Additional Secretary for Finance Rana Asad Amin, who headed the government team on budget-related issues.
He told reporters that the original budget deficit target was four per cent of the GDP, but it had now been increased with mutual understanding to 4.7 per cent in view of the changed situation after the floods.
Mr Amin said the finance minister and the secretary had gone to Karachi for consultations with President Asif Ali Zardari and things had been settled.
He said the minister would hold a final round of policy-level talks with the IMF team on Friday and provide a roadmap for introduction of reformed general sales tax (RGST) and power sector reforms, including tariff and subsidy issues.
The official said the RGST law was likely to be approved during the ongoing session of the National Assembly.
In reply to a question, Mr Amin said the IMF wanted to know how the government would carry out commodity operations loaded as it was with a Rs436 billion circular debt, but it did not give policy directives on such issues.
The additional secretary said that about Rs200 billion would be repaid to the State Bank on account of commodity operations and the amount would recycle into fresh operations during the coming crop season.
Rana Asad Amin did not say if all issues had been resolved for the release of the remaining $3.6 billion, out of the $11.3 billion standby arrangement, but said the final discussions would be held on Friday.

FO expects Obama to raise key issues in Delhi

ISLAMABAD: President Obama will disappoint Pakistan if he fails to push India during his visit to resolve outstanding disputes with Pakistan, particularly the longstanding Kashmir issue.
Foreign Office Spokesman Abdul Basit was asked several questions at his weekly briefing about President Obama’s visit to India starting from November 6, but the common dot in his replies was that Pakistan was expecting the US president to “help promote peace and stability in South Asia” a euphemism for resolution of Indo-Pak disputes among which Kashmir is central.
At one point, however, he said: “We hope the US president’s visit to India will contribute towards promoting peace and stability in South Asia. In case the US shows total indifference to issue central to peace in the region, then, we will obviously be concerned.”
President Obama’s visit to India is taking place against the backdrop of revived uprising in Occupied Kashmir, which has left about 120 dead during the past four months.
However, the repression in the Valley has escaped the watchful eyes of the West, which appears to be more concerned about ties with India.
There was, however, cautious optimism in Basit’s statement. He said: “We are confident that President Obama is conscious about that (the importance of resolution of Kashmir issue for the stability of the region).”
The best Pakistanis can expect, analysts said, was that Mr Obama in his private discussions with the Indian leadership nudges them to address the problem.
Mr Basit reminded the West of the need to resolve the dispute that threatened the peace of South Asia.
“We urge the international community, especially the major powers, to take strong notice of the prevailing situation in Jammu and Kashmir and contribute effectively, and I underline contribute effectively, towards resolution of the dispute. A just settlement of this long-standing dispute is also essential for lasting peace and stability in South Asia.”
In the broader context of growing Indo-US ties, Mr Basit emphasised that Pakistan would not be worried about them as long as they ensured a peaceful and stable region.
He cautioned against defining Pak-US relations from the prism of Indo-US ties.
“Our relations are independent of what is happening in US-India relations.”
Even though President Obama has ruled out supporting India’s bid for permanent membership of UN Security Council, Islamabad is still wary about efforts to get India included in elite nuclear clubs like Nuclear Suppliers’ Group, Wassennar Arrangement and Australia Group, which could give Delhi respectability and legitimacy in the nuclear world.
The spokesman said: “We strongly believe that there should be a level-laying field. You know Pakistan fully deserves to also benefit from civil nuclear cooperation with countries around the world.”
REPATRIATION OF PAKISTANIS: The spokesman said of the 7,000 Pakistani prisoners languishing in jails abroad, 932 had been repatriated—66 from Afghanistan, 800 from UAE, 46 from Greece and 20 from Yemen.
Separately, eight Pakistani prisoners in Thailand are being transferred to Pakistan under the Transfer of Offenders Agreement and another 20 will be repatriated from Sri Lanka soon.

Russia closes its airspace to PIA flights

ISLAMABAD: Russia has closed its airspace for Pakistan’s national flag carrier because of PIA’s failure to get the required authorisation timely renewed.
The restriction came at a time when Russia had liberalised its airspace through historic relaxation of its airspace regulations.
The Public Relations Department of PIA confirmed the closure of the Russian airspace for the airline, but did not specify the reason.
However, sources told Dawn that PIA had not applied for renewal of permission in time and in a proper manner, leading to the ban.
Russian airspace, aviation sources say, is the shortest route for Europe and North America.
The move will result in 15 to 20 minutes of extra flying time for most of the flights from Pakistan to Europe, the United States and Canada and back and increase the cost of flights. About 80 flights a week using Russian airspace for overflight will be affected.
Although calculation of the increase in the cost of flights is a complicated matter, the extra flying time, conservative estimates show, will cost the financially-crippled carrier an additional Rs120 million a week in fuel expenses.
Prima facie it appears to be a case of negligence, but a senior pilot said it could be an action of commission rather than omission.

PML-N steps back, MQM sticks to guns in NA

ISLAMABAD: The opposition PML-N seemed stepping back in the National Assembly on Thursday from suggestions for mid-term elections that had angered Prime Minister Yousuf Raza Gilani but his ally MQM stuck to a boycott of the house for the second day running, leaving a gaping hole in the government’s southern flank.
Opposition leader Chaudhry Nisar Ali Khan denied that his party wanted mid-term elections or to destabilise the PPP-led coalition government, which he, however, severely criticised for its alleged failure to tackle corruption and price hike and for what he called its “anti-people policies”.
The prime minister, in a speech to the assembly on Tuesday, had dismissed what he called a talk of mid-term elections or any possibility of martial law that could force such a course after Chaudhry Nisar told reporters a day before that he was hearing “voices coming from streets” to get rid of the present government and that mid-term elections could be an option, and a call inside the house by a lower-ranking PML member before Mr Gilani spoke that “mid-term elections must be held next year”.
“We are not talking of mid-term elections, we are not talking of any martial law,” the opposition leader said while speaking on a point of order on Thursday.
Though he vowed his party would block every government move to “marginalise the parliamentary mode of governance”, he said: “We don’t want to destabilise you. People have given you the right to govern.”
While Chaudhry Nisar’s assertions seemed aimed at dispelling some latest tension between the government and the largest opposition party due to remarks about mid-term elections, the government suffered an embarrassment as the 25-member MQM — one of its key allies — did not return to the house after its Wednesday’s announcement of a boycott that it said would continue until the latest increases in petroleum prices were withdrawn.
There seemed little chances of this demand being met immediately, although the house has admitted four opposition adjournment motions for a debate on oil prices and the general price hike.
The day saw another walkout on Thursday by the opposition PML-Q to protest against the higher oil prices, which the party’s parliamentary leader Faisal Saleh Hayat said should have been approved by the house.
Chaudhry Nisar, in his speech, disputed the prime minister’s assertion in some of his recent statements that his government had implemented 80 per cent of the landmark Charter of Democracy (CoD) signed by assassinated PPP leader Benazir Bhutto and PML-N leader Nawaz Sharif in 2006 and said the implementation was “not even 70 per cent” and could be as low as “20 to 25 per cent”.
PPP chief whip Khurshid Ahmed Shah invited his anger when in a rejoinder to the opposition leader he said that “we will be thankful to them” if the PML-N could implement as much of the CoD in the Punjab province that it rules with PPP as a coalition partner as done by federal government.
Chaudhry Nisar challenged the PPP to withdraw from the Punjab government if it was dissatisfied in the same way as the PML-N had quit the PPP’s federal government after six months of association.
But despite such hot exchanges, the government did not seem displeased with the PML-N stance on the day, with Law and Parliamentary Affairs Minister Babar Awan saying that there was “difference in perception but not of thinking” as he assured the house of an early presentation of the stalled new accountability law.
Before adjourning until 10am on Friday, the house quickly passed three bills — seeking to further amend the State Bank of Pakistan Act of 1956 to facilitate the central bank’s working in conformity with the present-day international practices, reorganisation and conversion of the Industrial Development Bank of Pakistan into a public limited company, and constitution of a Pakistan Institute of Fashion and Design to be based in Lahore.

South Africa hold nerve to clinch tense win

DUBAI: Opener Hashim Amla hit a fighting century and paceman Morne Morkel took four wickets as South Africa pulled off a narrow two-run win over Pakistan in the third day-night international here on Tuesday.

South Africa, put into bat by Pakistan, owed it to the 27-year-old Amla who carried his bat through the innings with a resolute 119 and helped his team to a defendable 228-9 before surviving another scare by Pakistan who managed 226-9.

It was the bearded right-hander’s sixth one-day hundred — his fifth this year — which brought South Africa back in the match after they struggled initially on a tricky Dubai Stadium pitch.

South Africa, who lost the second match in Abu Dhabi by one wicket after Abdul Razzaq’s incredible 72-ball 109 not out, this time negated Fawad Alam’s brilliant 59 not out which almost turned the tables again.

Rusty Theron kept his nerves to defend 12 runs in the last over as Pakistan lost two wickets and managed just nine runs.

Paceman Morne Morkel (4-47) had derailed Pakistan after opener Imran Farhat (47) and Asad Shafiq (43) added 85 for the third wicket to put Pakistan on course for a win, chasing just over four an over.

Farhat, who hit only one boundary off 86 balls, and Shafiq helped Pakistan recover the early loss of opener Mohammad Hafeez (four) and Younis Khan (nought) with the total on 13.

But both Farhat —brought in place of Misbah-ul-Haq as the only change — and Shafiq were run out in sloppy manner to spoil the run-chase.

And when Shahid Afridi (seven) and Abdul Razzaq (12) fell, Pakistan had all but lost the match.

Alam then added 33 for the eight wicket with Wahab Riaz (21) to revive Pakistan’s hopes of an unlikely win but South Africa overcame last match jitters in the end.

Alam hit three boundaries off 67 balls.

South Africa were once again without their captain Graeme Smith who failed to fully recover from a hand injury sustained during his team’s eight wicket win in the first match at Abu Dhabi on Friday, but all-rounder Jacques Kallis was included after recovering from injury.

Both captains praised Amla’s knock. “To keep it simple his was the best knock I have seen,” said Johan Botha.

“Amla was in total control on a pitch where others struggled and he gave us the sort of score which we thought was defendable.” Pakistan captain Afridi said Amla and his team’s poor fielding were the difference.

“Amla was stubborn and we once again showed flaws in our fielding and gave away 30 extra runs which proved decisive in the end,” said Afridi.

Amla put on a valuable 59-run fourth wicket stand with Jean-Paul Duminy (26) after Pakistani paceman Shoaib Akhtar put them on the back foot by dismissing Kallis (nought) and in-form Colin Ingram (four) early.

Amla, who has so far scored 986 runs in 13 one-day matches this year, held one end during his 126-ball knock, hitting nine boundaries to carry his bat through the innings.

Pakistani spinners – Shahid Afridi and Mohammad Hafeez – also benefitted from the slow turn as they captured four wickets between them and never allowed South African batsman any room for free strokeplay.

Afridi had the dangerous-looking AB de Villiers and Albie Morkel – who both scored 19 each – during his 2-53 off ten overs, while Hafeez (2-34) accounted for Duminy and David Miller (6).

Amla added another valuable 38 with Johan Botha (15) before Akhtar dismissed Botha to finish with 3-39.

Both teams play two Tests —one each in Dubai and Abu Dhabi —after the one-day series.—Agencies

Film giant MGM strikes bankruptcy rescue deal

NEW YORK: James Bond seems set to live another day after debt-ridden film giant MGM secured a deal to end months of financial deadlock, which put the latest 007 movie on ice along with the studio’s fate.

Metro-Goldwyn-Mayer, whose catalogue includes the Bond franchise as well as the “Pink Panther” and “Rocky” series, announced a debt-restructuring rescue deal late Friday while rejecting an offer from billionaire Carl Icahn.

In a statement the legendary studio, famous for its trademark roaring lion logo, said its lenders had “overwhelmingly approved its proposed plan of reorganization” with US firm Spyglass Entertainment.

Spyglass was favored over a rival offer by Icahn, who reportedly owns about 800 million dollars of MGM’s debt, to merge the studio with film producer Lionsgate in which he is the largest shareholder.

“MGM will now move expeditiously to implement that plan, which will dramatically reduce its debt load and put the company in a strong position to execute its business strategy.

“MGM is appreciative of the lenders’ support,” said the MGM statement.

The studio, with a 4,000-strong back catalogue that also includes “The Wizard of Oz” and “Singin’ in the Rain,” has been struggling for the last few years, and its owners put it up for sale a year ago.

Several candidates emerged, including US-Canadian studio Lionsgate, as well as America’s Liberty Media, Australian-born US media tycoon Rupert Murdoch’s News Corp, and India’s Reliance Entertainment.

If the plan announced late Friday is approved, MGM is expected to emerge from bankruptcy with 95 percent of its capital in the hands of creditors led by US bank JPMorgan Chase.

The remaining five percent would be held by Spyglass, which notably produced Clint Eastwood’s last film “Invictus”.

In April, uncertainty over the debt-ridden studio’s future forced the suspension of work on the latest James Bond movie, the 23rd in the long-running franchise.

The British production company behind the project said they had put work on hold “indefinitely” after MGM failed to attract a buyer. There was no immediate word on when filming could resume. -AFP

LPG price hits record Rs 95,000 per ton

KARACHI: The price of imported liquefied petroleum gas (LPG) has surged by Rs 12,000 to hit record high at Rs 95,000 per tons as Saudi Aramco contract price (CP) climbed by $ 93 to touch $788 in the international market.

This was stated by the chairman of FPCCI Standing Committee on LPG and All Pakistan LPG Distributors Association Hadi Khan in a statement here Monday.

He said that though the imported price of LPG has registered the unprecedented rise in the local market, the importers did not raise its retail prices.

Hadi urged the government to ensure that local producers should not raise the price of locally produced LPG in proportion with Saudi Aramco.

He also urged the government to remove 17 percent sales tax on the import of LPG to ensure that its prices are not enhanced and in the country.

The local retail prices of LPG will be increased to unprecedented level, discouraging its general consumers to quite its use for good, he noted.

Hadi pointed out the consumption of LPG in the winter has been enhanced from 1900 tons to 2000 tons per day whereas local producers were still producing 1400 to 1500 tons per day, creating a huge gap of 500 ton between the demand and supply.

There is an urgent need to discourage the opportunity created for profiteering in LPG business. The withdrawal of sales tax on imported LPG is must to reduce the difference between LPG’s demand and supply and to facilitate its import, he observed.

Hadi said that a total of 48,152 tons of LPG has been imported between the first ten months of current year starting from January to October 31, 2010.

This is the reason why the LPG prices are still stable in the country, he added.