Thursday, 7 July 2011

DAILY BUSINESS NEWS AND IN BRIEF: 08.07.2011



Pakistan relations with US back on track.
ISLAMABAD: Pakistan said on Thursday the difficult phase in ties with the United States was over and relations between the two countries were back on track.
Speaking at a press briefing, Foreign Office spokesperson Tehmina Janjua acknowledged that there had been difficulties in Pak-US relations in the recent past, but said that “through deep discussions with the US, we have tried to address those difficulties as far as possible”.
She, however, said it was an ongoing process.
The statement was contrary to that of Prime Minister Yousuf Raza Gilani who warned the US on Wednesday against pursuing “narrow interests” that hurt Pakistan’s sovereignty and recent remarks by US Ambassador Cameron Munter that relations with Pakistan were going through “rough patch”.
Ms Janjua said the two countries were trying to work on the strategic dialogue process and referred to the recent meeting on law-enforcement and counter-terrorism. “We are constructively engaged on many tracks. We hope that the power of good and innovative ideas and the strength inherent in our joint determination will further facilitate this process.”
She said there was recognition on the part of the US administration of the importance of relationship with Pakistan. “So instead of commenting on negatives, we intend to focus on the positives in the relationship. And the positives are many.”
The spokesperson admitted that the US was in control of the Shamsi airbase, but said it had never been given access to the airbase for carrying out drone attacks. She said the previous government had given access to the base for surveillance purpose.
Ms Janjua said the matter of Washington’s control over the base had been taken up with the US government at the highest level.
CROSS-LoC CBM: She said the current month was significant for Pakistan’s engagement with India, adding that the working group on cross-LoC confidence-building measures would meet in New Delhi on July 18.
About Indian Prime Minister Manmohan Singh’s statement advising Pakistan to forget Kashmir and concentrate on its internal problems, she said Pakistan wanted a constructive, open and result-oriented dialogue with India on all issues and this had been reciprocated by India.
CROSS-BORDER RAIDS: Answering a question, Ms Janjua said cross-border raids were a subject of ongoing discussions on diplomatic and military tracks between Pakistan and Afghanistan.
On Wednesday, Prime Minister Gilani called Afghan President Hamid Karzai to express Pakistan’s concern over militants’ activities along the border. He told Mr Karzai that despite repeated cross-border raids from the Afghan side, the Pakistan army was exercising utmost restraint keeping in view the close brotherly relations.
Ms Janjua said Pakistan had asked ISAF to immediately convene a meeting of regional commanders to defuse the tension.
About reports that Afghanistan is set to convene a Loya Jirga to decide on the question of permanent US bases in Afghanistan, she said: “As far as the jirga is concerned or any discussions with the US on issues that are internal to Afghanistan or bilateral between Afghanistan and the US, we believe that it is up to the people of Afghanistan and their government to take decisions in this regard”.


Karachi 34 die in killing.
KARACHI: Karachi remained in grip of violence for the third consecutive day on Thursday and another 34 people, including a six-year-old girl, were killed in armed attacks on buses and houses.
The death toll in three days of violence rose to 63 with the security administration appearing to be completely paralysed and unable to quell violence.
City Police Chief Saud Mirza said that 18 people were killed in armed attacks in Qasba Colony and parts of Orangi Town, which remained the worst affected areas.
At least 12 people were killed and over 30 injured in attacks on two passenger buses in the areas.
After keeping quiet for the whole day, the political administration came up with a late-night announcement that 1,000 personnel of the Frontier Constabulary had been deployed, but the authorities denied planning any ‘major operation’ in the strife-torn areas.
“Let me make it very clear that there is no operation planned,” Interior Minister Rehman Malik, who arrived here after midnight on instructions of the prime minister, told reporters at the Quaid-i-Azam International Airport.
“But definitely there will be targeted actions in the affected areas and I have ordered deployment of 1,000 FC troops to enforce law in the city.”
Answering a question, he did not blame any party for the worst cycle of ethnic violence in Karachi in many years, but called upon Muttahida Qaumi Movement chief Altaf
Hussain and the Awami National Party to play their role to restore peace in the city.
“Karachi is in a sensitive situation, but we have all the information, we know where the planning was done to start violence, we know who are the elements behind it and we are determined to take action against them,” he added.
Earlier, Sindh Chief Minister Syed Qaim Ali Shah presided over a meeting on the law and order situation.
The meeting, attended by police and Sindh Rangers authorities, ended with shoot-at-sight orders to enforce the writ of the government. It also agreed to move against ‘armed miscreants’ on Friday.
“During the past two days we pointed out strife-torn areas and gathered intelligence,” City Police Chief Saud Mirza told Dawn.
“Now we will definitely move against them (terrorists) with credible information in hand. I can assure you that the situation will start turning better from Friday.”
The bus attacks on Friday targeting mainly Urdu-speaking passengers appeared to be in retaliation of the killing of five Pakhtuns whose bullet-riddled bodies were found in a minibus on Thursday.
Forex: Reserves touch record $18bn.
KARACHI, July 7: Foreign exchange reserves for the first time crossed $18 billion mark on Thursday mainly on account of inflows from World Bank and the Asian Development Bank.
The State Bank said the reserves rose to $18.25 billion after an inflow of $400 million as loans from ADB and WB during this week.
The reserves were mainly helped by the record remittances of $10.1 billion during the 11 months of the previous fiscal, while 23 per cent increase in export also strengthened the external account.
The fiscal year 2011, which ended on June 30, was significant in view of the current account surplus after seven years of deficits.
However, many analysts said inflows of export proceeds would drop this fiscal, FY-12, as the cotton products, which fetched very high price last year, are facing stiff competition in the US and European market and the prices are falling.
The government hopes that the remittances could touch over $11 billion for the whole fiscal 2011. The cumulative figure of remittances for the entire fiscal year is expected in few days.


Mohammed Saleem Mansoori

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