Containing a Nuclear Iran

The Changing Face of Iran (Photographs by Paolo Pellegrin)

It is time to clarify the debate over Iran and its nuclear program. It's easy to criticize the current course adopted by the United States and its allies, to huff and puff about Iranian mendacity, to point out that Russia and China won't agree to tougher measures against Tehran, and to detail the leaks in the sanctions already in place. But what, then, should the United States do? The critics are eager to denounce the administration from the sidelines for being weak but rarely detail what they would do to be "tough." Would they attack Iran today? If not, then what should we do? It is time to put up or shut up on Iran.

There are three basic options that the United States and its allies have regarding Iran's nuclear program. We can bomb Iran, engage it diplomatically, or contain and deter the threat it poses. Let me outline what each would entail and then explain why I favor containment and deterrence.

Iran's nuclear ambitions are a problem. Nuclear proliferation in the Middle East is a danger, and the Iranian regime's foreign policy—which has involved support for militias and terrorist groups—make it a destabilizing force in the region. The country has a right to civilian nuclear energy, as do all nations. But Tehran has signed the Nuclear Non-Proliferation Treaty, submitting itself to the jurisdiction of the International Atomic Energy Agency. The IAEA says Iran has exhibited a pattern of deception and non-cooperation involving its nuclear program for 20 years—including lying about its activities and concealing sites. In that context, it makes sense to be suspicious of Iran's intentions and to ask that the IAEA routinely verify and inspect its facilities. Unless that can be achieved, Iran should pay the price for its actions. Washington's current strategy is to muster international support to impose greater costs, while at the same time negotiating with Iran to find a solution that gives the world greater assurance that the Iranian program is purely civilian in nature.

It is an unsatisfying, frustrating approach. The Russians and Chinese want to trade with Iran and will not impose crippling sanctions. (Nor would India or Brazil, nor most other major developing countries.) Even if there were some resolution, it would depend on inspections in Iran, and the Iranians could probably hide things from the inspectors and cheat. They do occasionally make concessions, including significant ones last week—to open the newly revealed Qum facility to inspectors and to send uranium to Russia for enrichment (which Tehran announced just as columnists were declaring that negotiations were sure to lead to nothing). But there will be setbacks as well. The cat-and-mouse game will continue.

One way to get instant gratification would be military force. The United States or Israel could attack Iran from the air. To be effective, such an attack would have to be large-scale and sustained, probably involving dozens and dozens of sorties over several days. The campaign would need to strike at all known Iranian facilities as well as suspected ones. Such an attack would probably not get at everything. Iran's sites are buried in mountains, and there are surely some facilities that we do not know about. But it would deal a massive blow to the Iranian nuclear program.

The first thing that would happen the day after such an offensive begins would be a massive outpouring of support for the Iranian regime. This happens routinely when a country is attacked by foreign forces, no matter how unpopular the government. Germany invaded Russia at the height of Stalin's worst repression—and the country rallied behind Stalin. The Iranian regime itself was in deep trouble in 1980, facing internal dissension and mass dissatisfaction, when Saddam Hussein attacked, throwing a lifeline to the mullahs. Recall that George W. Bush's approval rating on Sept. 10, 2001, was about 40 percent. After 9/11, it quickly climbed to 93 percent. The -Iranian dissident Ali Akbar Mousavi Khoeini said to me, "If there were an attack, all of us would have to come out the next day and support the government. It would be the worst scenario for the opposition." Last week opposition candidate Mir Hossein Mousavi warned that tightening sanctions would hurt ordinary people and turn them against the United States, not the regime. Link...

Eight U.S. Troops Killed In East Afghan Battle

KABUL (Reuters) - Insurgents stormed remote outposts in eastern Afghanistan killing eight Americans in the deadliest battle in more than a year, the U.S. military said on Sunday.

Afghan provincial authorities said they had lost contact with scores of Afghan policemen after the day-long attack on Saturday and did not know whether they were dead or alive. NATO said at least two Afghan soldiers were killed.

The fighting in the Kamdesh district of eastern Nuristan was in an area from which U.S. forces had already announced plans to withdraw as part of commander General Stanley McChrystal's strategy to focus his forces on population centres.

Militia from a local mosque and a nearby village launched the attacks on two joint NATO and Afghan outposts, the NATO-led International Security Assistance Force said. The NATO troops in the area are American.

"My heart goes out to the families of those we have lost and to their fellow soldiers who remained to finish the fight," Colonel Randy George, commander of the U.S. force in the eastern mountain area bordering Pakistan, said in the statement.

"This was a complex attack in a difficult area. Both the U.S. and Afghan soldiers fought bravely together. I am extremely proud of their professionalism and bravery."

A Taliban spokesman, Zabihullah Mujahid, said the movement was behind the attack. He claimed that dozens of Afghan soldiers and police were killed along with Western troops.

The province's deputy police chief Mohammad Farooq said the fate of an entire 90-strong police force in the Kamdesh district was unknown.

NATO said its troops had inflicted heavy casualties on the attackers, but did not say how many.

NEW STRATEGY

The NATO statement said "coalition forces' previously announced plans to depart the area as part of a broader realignment to protect larger populations remains unchanged."

The attack was the deadliest for U.S. forces since nine were killed in a July 2008 battle in nearby Kunar province, which the U.S. military is investigating as a debacle that will teach its forces how to understand the demands of combat in Afghanistan.

U.S. forces have suffered some of their worst casualties in the mountains of eastern Afghanistan, where they have been trying to control remote passes used by Taliban fighters as infiltration routes from Pakistan.

Under McChrystal's new counter-insurgency strategy they are supposed to move into more heavily populated areas to protect the population and reduce the influence of insurgents, while abandoning efforts to defend remote locations.

The war in Afghanistan has reached its most violent phase this year, eight years after the Taliban were ousted, with attacks by fighters spreading from traditional strongholds in the south and east to once-peaceful western and northern regions.

McChrystal, who now commands more than 100,000 troops, two thirds of them American, has requested tens of thousands more to implement his new strategy, warning that without them, the eight-year-old war will probably be lost.

U.S. President Barack Obama, who already ordered 21,000 extra troops to Afghanistan this year, is re-evaluating his overall strategy for the region before considering whether to send more troops.

Some in his administration are advocating the opposite strategy -- reducing force levels and switching to a counter-terrorism strategy limited to strikes on bases of al Qaeda fighters blamed for attacks on the West. Link...

The Czechs who stand between the EU and the Lisbon Treaty

As one of the last voices now remaining against the Lisbon Treaty, Jaroslav Kubera makes his case against a European superstate from beneath a thick and defiant pall of cigarette smoke.

Czech mayor Jaroslav Kubera Photo: CTK

The chain-smoking Czech mayor, who describes himself as not so much a 20-a-day man as a "20-an-hour man", has a sign taped to his parlour door declaring it the sole "smoking room" in a otherwise cigarette-free town hall.

Yet the considerable fug over his desk makes his point clearly: at the moment, it is Czech politicians like him who decide when and where people can light up in public; in a post-Lisbon Treaty future, it may be some unknown Eurocrat.

Hence his decision last week, as part of a group of 17 Eurosceptic Czech politicians, to launch what may prove - in the light of Friday's Irish "Yes" vote - to be one of the treaty's final hurdles. The group, mainly from the right-wing Civic Democratic Party, have filed a challenge in the Czech constitutional court, complaining that the document violates national sovereignty by handing over too much power to Brussels.

Nobody, not even Mr Kubera, thinks their complaint stands much chance of being upheld, especially given that a previous, similar suit failed. But they hope it might at least delay the final Czech go-ahead for the treaty - which only awaits president's signature - in the Czech Republic until next summer, by which time their friends in Britain's Tory Party may have won power, ushering in a David Cameron prime ministership.

Mr Cameron has said that if the treaty is not yet fully ratified elsewhere - the Czech Republic is now the last country where it remains in question - he will order a referendum in Britain, a commitment he reiterated in a recent letter to the Czech president Vaclav Klaus, who himself opposes the treaty.

"We have launched this action because we really believe that the Lisbon Treaty is just a cosmetically reworked version of the rejected European constitution," said Mr Kubera, sticking the stub of a Davidoff cigarette into an overflowing glass ashtray and lighting up yet another.

"It is not that I am against the European Union itself - far from it. It is just that it you look at the historical experiences of big empires, they always end up collapsing, and the more you try to integrate Europe, the more likely it is to collapse."

Like many Czechs, big empires are something of which Mr Kubera, 62, had bad memories. As a young man, he fell foul of the authorities for his role in Prague's anti-Soviet protests in 1968. While he does not seek to compare post-Lisbon Europe with Warsaw Pact Europe, he says the treaty's centralising tendencies remind him of life in the Russian empire.

"According to the text of the Lisbon Treaty, qualified majority voting can be used for various 'aims of the European Union', which is a very wide-ranging, non-specific term," said Mr Kubera, who is mayor of Teplice, a smart spa town just outside Prague, and is also a senator in the Czech upper house.

"Unlike many other European countries, we Czechs lived through totalitarianism, and with the European Union currently dominated by socialist parties, I fear that the socialism that we kicked out the door back then will return to us in another way."

Such views are widely expressed among the Czech Republic's 10 million people, for whom support for the Lisbon Treaty has been more controversial than elsewhere in Eastern Europe. Many fear that as well as halving their voting clout, it will affect their freedom to be economically competitive, and lead to loss of control over immigration, an issue that until now has not been much of a problem.

Distrust of Brussels is also a personal bugbear of President Klaus, the country's leading Eurosceptic, who refused to fly the EU flag over his office in the elegant 9th century Prague Castle during his recent tenure of the rotating EU presidency.

In May of this year, however, the Czech parliament voted in the treaty's favour, with then prime minister, Mirek Topolanek, another Eurosceptic, saying it was the price of belonging in the European club. But President Klaus has since refused to deliver the final required signature, saying that he wanted to wait until the outcome of Friday's re-run Irish vote, which he saw as simply an attempt to overturn the previous 'no' verdict.

His stubborn stance has incensed Europhile politicians continent-wide, but has been backed by his own supporters, who feel he has done a good job of standing up to outside pressure from France and Germany.

With Ireland now having returned a 'yes' vote, though, the outside pressure on Mr Klaus to sign will intensify once more. This will increase yet further if the constitutional court throws out the challenge from Mr Kubera and his fellow senators within weeks rather than months, as many predict it will. Last week, the German ambassador to the Prague held a private meeting with the court's senior judge, which angry Eurosceptics claim was an attempt by Berlin to hurry the process along.

Assuming it is thrown out, it will then be President Klaus alone who is holding up the ratification - something that may be politically difficult to sustain right through until such time as Mr Cameron might take office. It will also be easy for supporters of the treaty to portray him as thwarting the popular will - precisely the kind of swipe Euro-sceptics regularly aim at Brussels.

That is a criticism that Mr Kubera accepts, although he does point out that unlike most Czechs, and indeed many MPs who voted for the treaty, he has actually taken the time to read all 277 pages of it.

"The basic answer why people have supported it is because they haven't read it," he said.

"That is the problem with the whole European Union - people are too busy with their own lives, and they don't read these things because they don't think it will directly affect them." Link...

Typhoon kills 17 in Philippines

MANILA, Oct 4 (Reuters) - A powerful typhoon slowly moved out to sea on Sunday after slamming into the remote northeastern Philippines and killing 17 people, but damage and flooding, while extensive, were less widespread than feared.

Typhoon Parma, the strongest typhoon to hit the country since 2006, was north of the main Luzon island and was moving northwest very slowly, the weather bureau said.

It had weakened, with maximum sustained winds of 120 kph (75 mph) and gusts of up to 150 kph.

Authorities in Taiwan have issued a warning as Parma could either enter its southern waters or blow west into the South China Sea.

"The destruction in our infrastructure and agriculture is huge," said Alvaro Antonio, the governor of the northern Cagayan province that bore the brunt of the storm. "Wide areas are still under water, including ricelands about to be harvested."

The system brought rain across Luzon on Saturday but not as heavily as expected, especially along the densely populated west coast where floods in and around Manila from Typhoon Ketsana eight days ago killed nearly 300 people.

Officials had feared rain would spark fresh floods in Manila since reservoirs and dams around the capital are full and the sewage system is inundated with mud and rubbish brought by the previous week's deluge.

But rains in Benguet province set off landslides in which at least 12 people were killed, police said. The victims included seven small-scale miners who were sleeping in a shelter when they were buried by one landslide, said provincial police chief Loreto Espeneli.

Five people were killed elsewhere.

Fallen trees and floods cut off roads in Cagayan and neighbouring Isabela province. Soldiers, in rubber boats and armed with chain saws, started to clear roads and rescue marooned communities, officials said.

STRONG WINDS

Antonio said many areas remained inaccessible due to power outages and disruption in communications.

"Winds are still strong, but no more rains. Our relief works are ongoing," he said.

About 5,000 people remained in temporary shelter areas. More than 130,000 people in the country's eastern seaboard had fled their homes ahead of typhoon Parma.

Local government officials reported more than 100 million pesos ($2.1 million) in crop damage, particularly in rice and corn farms in Isabela and Cagayan.

Agriculture Secretary Arthur Yap said on Sunday the country may import more rice to fill its needs for the first half of 2010 following hefty damage to crops. [ID:nMAN473995]

While there were enough stocks of the national staple until year-end, output for the first two quarters of 2010 may be affected by the heavy rain and flooding brought by the two typhoons, said Yap.

Officials said some 5.5 billion pesos in crops, mostly rice about to be harvested, were damaged by Ketsana last week. The damage to bridges and roads was estimated at 1.6 billion pesos.

President Gloria Macapagal Arroyo declared a nationwide calamity on Friday to allow local governments to access emergency funds and cap the prices of essential goods.

She also ordered a one-year deferment in repayment of loans provided by state pension funds, part of liquidity-boosting measures to protect the economy following the massive typhoon devastation. [ID:nMAN401408]

The Asia-Pacific region has been hit by a series of natural disasters, including Ketsana that killed more than 400 in the Philippines, Cambodia, Laos, Thailand and Vietnam.

Tens of thousands also were displaced in southern Laos and flash floods were reported in northern Thailand.

Two powerful earthquakes rocked the Indonesian island of Sumatra, with the death toll likely to be in the thousands, and a tsunami battered American and Western Samoa, killing nearly 150. Link...

Israeli planes strike Gaza

GAZA CITY — Israeli warplanes carried out three air strikes in the Gaza Strip over the weekend, without causing casualties, the army and Palestinian witnesses said on Sunday.

They said two of the raids targeted the south of the Palestinian territory while the other hit Gaza City.

"Our planes on Friday night attacked a structure in Gaza City being used to build weapons and carried out a twin raid on Saturday night on tunnels in the south of the territory" on the border with Egypt, an army spokesman said.

The air strikes came after Palestinian militants in Gaza fired a rocket and a mortar shell against southern Israel, the spokesman said, also without causing casualties. Link...

Landslides kill 20 in Sicily, 30 still missing

Rescuers remove debris a day after mudslides hit the village of Giampilieri near the Sicilian city of Messina October 3, 2009. The death toll from rainstorms and landslides in Sicily rose to 20 on Saturday and Prime Minister Silvio Berlusconi said the number of victims could more than double as 30 people were still missing. (Xinhua/Reuters Photo) Photo Gallery>>> ROME, Oct. 2 (Xinhua) -- The Italian government declared a state of emergency on Friday after flash floods and mudslides hit the southern town of Messina in Sicily leaving at least 20 dead and 35 missing, local media reported. The storm, starting Thursday night, lasted till Friday morning flooding the entire area. The rains dumped 230 cm of water in less than an hour knocking down houses in the city's districts and nearby towns. Link...

Mubarak urges Israel to reconsider its Mideast policies

CAIRO — Egyptian President Hosni Mubarak on Saturday urged Israel to reconsider its Middle East policies, warning that any bid to impose "a fait accompli" solution would not bring peace to the region.

"Israel must reconsider its policies and its way of treating the Palestinians and Arabs," Mubarak said in an interview with the armed forces magazine, on the occasion of the anniversary of the 1973 Israeli-Arab war.

"If (Israel) chooses the path of peace... this will encourage the Arabs to have confidence in its intentions," he said.

"This is the core of the Arab peace initiative, which proposes normalisation by Arab states of relations with Israel in exchange for a comprehensive peace which establishes an independent Palestinian state linked to the withdrawal by Israel from all Arab lands it has occupied since 1967."

Mubarak insisted that peace could not be achieved "by one party imposing its will on another party or by imposing a fait accompli."

He said he was "optimistic" over the latest efforts by the United States to revive stalled peace talks between Israel and the Palestinians, adding that he believed "urgent and serious action as well as concrete measures" were needed to get the peace process going again.

"I am optimistic because I heard from (US) President (Barack) Obama when I met him about positive positions... and I believe that the weeks to come will see the beginning of an opportunity for real peace," Mubarak said.

He stressed the need for "political will, in particular from the Israeli leaders."

Egypt has been Israel's main Arab interlocutor since the two signed a peace treaty in 1979, but the neighbours remain at odds over the peace process.

Obama last month held inconclusive three-way talks in New York with Israeli Prime Minister Benjamin Netanyahu and Palestinian leader Mahmud Abbas. He told them to stop stalling and open talks on a comprehensive deal to halt an "endless cycle" of conflict and suffering.

Final status issues include the fate of Jewish settlements in the occupied West Bank, the borders of an eventual Palestinian state, the status of Jerusalem and the right of return of Palestinian refugees.

Netanyahu has rejected a total freeze on all settlement construction in the West Bank and east Jerusalem ahead of renewed peace talks, insisting on the need to guarantee "normal life" in settlements where 500,000 Israelis live. Link...

Sri Lanka protest Clinton's rape remark

COLOMBO — Sri Lanka lodged a protest over US Secretary of State Hillary Clinton's remarks that rape had been used as a war tactic on the island, officials said Saturday.

Colombo's displeasure over a statement by Clinton to the United Nations Security Council was conveyed to US diplomats in the Sri Lankan capital, a foreign ministry official said.

"We have given a note of protest" to the US embassy, the official, who asked not to be identified, said.

In a statement to the Security Council, Clinton last Wednesday made a passing reference to Sri Lanka.

"We've seen rape used as a tactic of war before in Bosnia, Burma and Sri Lanka and elsewhere," Clinton said during a resolution calling for an end to sexual violence in armed conflict.

The remark was contained in a transcript of the statement Clinton made to the UN Security Council that was given to AFP in Colombo by the US embassy.

The state-run Daily News in Colombo reported that Clinton had suggested that Sri Lankan security forces used rape in their battle against Tamil rebels.

The US embassy would not comment on the newspaper's allegations.

Sri Lanka's defence spokesman Keheliya Rambukwella said it was the first time that the island was accused of using rape as a tool of war against Tamil Tiger rebels who were crushed in May after decades of fighting.

"We vehemently reject and condemn the irresponsible statement made by US State Secretary Hillary Clinton," Rambukwella was quoted as saying in the state-run newspaper.

Sri Lanka faced condemnation for its handling of the final stages of the war against Tiger rebels and managed to stave off a Security Council resolution calling for war crimes investigations thanks to the vetoes of China and Russia.

The UN has said that over 7,000 civilians perished in the first four months of intense fighting this year.

Sri Lanka is now facing international pressure to free 250,000 ethnic Tamil civilians who managed to escape the fighting but are now held in internment camps while they are screened to see whether they were rebels. Link...

Italians rally for press freedom

Italian media unions organised the mass rall Tens of thousands of Italians have protested in Rome against what they say are threats to press freedom by Prime Minister Silvio Berlusconi. They say his decision to sue newspapers for their coverage of alleged scandals involving young women reveals his contempt for free speech. Demonstrators also allege Mr Berlusconi has too much control over the media. Mr Berlusconi called the protest a farce, saying press freedom was greater in Italy than any other Western nation. Organisers said more than 300,000 people took part in the protest in Rome's central Piazza del Popolo, although city officials put the figure at nearer 60,000. Slogans "Berlusconi is bad for Italy's health," read one banner, while a slogan on some protesters' T-shirts said: "Now you can sue me too". "We ask the prime minister to stop the campaign of accusations against journalists and to tell the truth," Franco Siddi, head of the Italian Press Federation, told the rally. Prime Minister Silvio Berlusconi dismissed the protest as a farce The BBC's Duncan Kennedy in Rome says concerns about Mr Berlusconi's influence on Italian media are not new but reaction to it on the scale of Saturday's protest is. In August, the prime minister launched legal action against media outlets across Europe for their coverage of his private life. Mr Berlusconi, who owns three of Italy's seven free-to-air TV channels, has also urged businessmen to stop placing ads in newspapers and magazines that attack him. His critics say he also exerts considerable influence over state television RAI. In its 2009 survey, media research group Freedom House downgraded Italy to the "partly free" category and placed it 73rd out of 195. Press freedom watchdog Reporters Without Borders, which publishes its own survey this month, says Italy is faring worse than any other EU country. Link...

Three Andhra towns, 200 villages still under flood waters

The flood situation in Andhra Pradesh continued to be grim Sunday as three towns and over 200 villages in the worst hit districts remained under water.

Though the inflows into Krishna and Tungabhadra rivers have slightly reduced, this has not ended the misery of people in Kurnool and Mahbubnagar, the two worst affected districts due to unprecedented floods over the last three days.

Most parts of Nandyal town in Kurnool district were inundated due to the overflowing Kondu River. There is five to 10 feet water in the town as local authorities began efforts to rescue people trapped on rooftops.

The floods triggered by heavy rains under the influence of a deep depression in the Bay of Bengal inundated 400 villages and affected over 1.8 million people in five districts, rendering 400,000 people homeless and damaging thousands of houses. The floods also destroyed standing crops, civic infrastructure, electricity and telecom facilities and paralysed road and rail transport.

Without food and water for the last three days, hundreds of people remained trapped in floodwaters. In Kurnool town, a large number of people remained marooned for the third day. The authorities have so far evacuated over 100,000 people in the town and surrounding areas.

The town, about 250 km from here, was flooded due to the overflowing Tungabhadra and Hundri rivers and the backwaters of Srisailam dam across the Krishna river.

The floods also ravaged the temple town of Mantralayam in Kurnool district. Rescue workers found bodies lying at several places.

Officials said the floods have so far claimed 33 lives but unofficial reports put them at 50. Dinesh Kumar, commissioner (disaster management), said 15 people were killed in Kurnool district while 13 died in Mahbubnagar. The remaining deaths were reported from Nalgonda, Guntur and Krishna districts.

The exact death toll would be known only after the water recedes completely in the affected towns and villages.

The water level at the Srisailam dam continued to be 10 feet above its capacity of 885 feet. Chief Minister K. Rosaiah, who stayed at the secretariat for the second successive night to monitor the situation, told reporters Sunday that there was no threat to the dam.

"There is also no threat to Nagarjuna Sagar and Prakasam barrage," he said.

As massive inflows are reaching Prakasam barrage, authorities in Vijayawada city and low-lying villages in Krishna and Guntur districts went on high alert. The chief minister said people were being forcibly evacuated to save their lives.

He appealed to people in the two districts to cooperate with the authorities by moving to safer places. "This is required for the safety of the people and also for the safety of the dams," he said.

Authorities have evacuated 89,000 people in Krishna district while another 130,000 people need to be evacuated. In Guntur district, 40,000 people were shifted to relief camps while another 48,000 would be shifted Sunday.

Meanwhile, army, navy and air force personnel stepped up rescue and relief operations. Using the Hyderabad-Bangalore highway at Beechpally in Mahbubnagar as their air base, four Indian Air Force helicopters were dropping food and water sachets in the marooned areas. Authorities are also using 257 boats to rescue people. Link...

RPPs project may be delayed: Ashraf

Water and Power Minister Raja Pervaiz Ashraf.-APP file

ISLAMABAD: Installation of some rental power plants (RPPs) may be delayed because of opposition by some political parties and investors’ fear about political uncertainty in the country, Water and Power Minister Raja Pervaiz Ashraf said on Saturday.

Talking to journalists after chairing a meeting of the Private Power and Infrastructure Board (PPIB), the minister alleged that 'undue criticism' was scaring away some investors.

'Political opposition should not harm the national interest and efforts to attract investment in the power sector are needed for development of the country,' he said.

However, he said that 2,000MW would be added to the national grid by June next year, including 1,600MW from RPPs.

The government has allowed installation of RPPs of up to 2,250MW.

The PPIB meeting reviewed the status of power projects under process, based on site visits by PPIB/WPPO teams. An inter-ministerial committee has been formed to look into the policy of oil logistics for all future power plants.

'The most important task for the government today is to overcome the energy crisis which has badly affected routine life of the masses,' the minister said.

The meeting was attended by Water and Power Secretary Shahid Rafi, Planning Commission Secretary Ashraf M. Hayat, Additional Secretary of the Ministry of Petroleum and Natural Resources Mohammad Ejaz Chaudhry, Member Federal Board of Revenue Zafarul Majeed and PPIB Managing Director Fayyaz Elahi.

Meanwhile, another meeting of the Ministry of Water and Power decided to carry out maintenance all public sector electricity generation plants (Genco). The plants have not undergone maintenance for 10 years.

The meeting was informed that the plants were not operating at optimum level because of various reasons, including forced outages. The minister asked the authorities concerned to initiate short-term measures to avert forced outages.

'The plants should work on maximum capacity and scheduled maintenance of plants should be completed before December next year,' Mr Ashraf said.

The meeting was attended by Pepco managing director, Irsa chairman and senior officials of petroleum companies and CEOs of Gencos.

The meeting decided to complete upgradation of the Guddu thermal power station before December next year. The upgradation will increase its generation capacity by 225MW.

At present the country is facing an electricity shortfall of 3,059MW. The demand is 15,757MW and the generation 12,679MW. The generation includes 6,280MW from hydel sources, 2,335MW from Gencos and 4,063MW from IPPs. Link...

Pakistan, US lost track of Osama, says Musharraf

Former president Pervez Musharraf.-AP file

WASHINGTON: Pakistan and the United States were closing in on Osama bin Laden about five years ago, but suddenly lost him, says former president Pervez Musharraf.

'It was some five years back when there was some intelligence that got picked up of a broad location,' Mr Musharraf told a near-capacity crowd at a college in Sioux Falls, South Dakota.

'Then suddenly, we lost track.'

The former president described this as a failure of Pakistani and US intelligence and said that now they did not know whether Osama was dead or alive.

Mr Musharraf, 66, conceded that he committed several blunders in the years leading up to Sept 11, but he also took credit for several accomplishments, including improving the nation’s economy and introducing 'an essence of democracy' to Pakistan.

'This gives me pride to say, that although I was a military man -– a man in uniform -– I did believe in real essence of democracy,' he said.

'I take pride in declaring that I introduced the essence of democracy in Pakistan.'

He did this, he said, by empowering citizens. Women, he said, gained political power and were given more seats in the local and national levels of government -– a comment that drew a standing ovation from the crowd.

Mr Musharraf is currently in the United States on a lecture tour.

On Tuesday, Mr Musharraf was invited to Capitol Hill to share with both Republican and Democrat lawmakers his thoughts on the current situation in the Afghanistan-Pakistan region and the way forward.

'Mr Musharraf provided his personal and candid insights on Afghanistan and Pakistan and shared his perspective for strategies to stabilise the region,' said Congressman Steve Buyer after the meeting.

'President Musharraf’s thoughts will be very helpful to us as Congress works with the administration in crafting a successful way forward in Afghanistan.'

The congressional meeting came on the eve of the crucial 'situation room' meeting of the US President Barack Obama with his top policy advisers on Afghanistan and Pakistan.

As the administration continues to consider a new strategy in Afghanistan, which could include an increase in US troops, hearing 'Mr Musharraf’s insight will help us make the necessary decisions to support a successful strategy with the ultimate goal of finding sustained peace and stability in the region,' Congressman Buyer said.

Talking to Pakistani journalists during his Washington visit, Mr Musharraf said he would defend himself in Pakistani courts and his lawyers were reviewing the detailed verdict of the Supreme Court regarding his imposition of emergency rule on November 3, 2007.

The former president said he was ready to face all charges levelled against him in courts, as he commented on the Supreme Court terming his November 3, 2007 actions unconstitutional and unpardonable.

Also, former Pakistan Cricket Board chairman and close Musharraf confidant Dr Nasim Ashraf told reporters that Mr Musharraf had decided to defend himself if a case was registered against him.

Mr Ashraf said President Asif Ali Zardari had not met Mr Musharraf, either in New York or Washington. Link...

SJC refers judge’s case to president

Chief Justice of Pakistan Iftikhar Mohammad Chaudhry.-AP file photo

ISLAMABAD: The Supreme Judicial Council sent to President Asif Ali Zardari on Saturday its findings suggesting removal of a sitting judge of the Sindh High Court on charges of misconduct under Article 209 of the Constitution.

The decision was taken after Justice Mohammad Afzal Soomro, who is facing two references under Article 209, did not appear before a meeting of the council to explain his position.

The meeting, presided over by Chief Justice Iftikhar Mohammad Chaudhry, was attended by Justice Javed Iqbal and Justice Sardar Muhammad Raza Khan of the Supreme Court, Chief Justice Tariq Pervez of the Peshawar High Court and Chief Justice Khawaja Muhammad Sharif of the Lahore High Court. Supreme Court Registrar and SJC Secretary Dr Faqir Hussain were also present.It formed a unanimous opinion after deliberations on complaints against Justice Soomro and decided to submit a report to the president.

Earlier, the SJC had issued notices to Justice Soomro as well as the complainant to appear before it in person. The last meeting was also adjourned after the judge did not appear before the SJC.

Justice Soomro had dismissed the notice as 'obviously biased' and 'prejudiced'. His remarks had led to a bar by the SJC on the media from commenting on its proceedings, except for information given by the council itself. Link...

No place to keep surrendering Taliban: Gilani

* 3,000 terrorists have already surrendered, another 2,000 likely to do so
* Ministers’ resignation will not resolve power crisis

By Irfan Ghauri

ISLAMABAD: Following the successful military operation in Swat, Malakand and their surrounding tribal areas, the government is now having trouble accommodating the thousands of Taliban who have surrendered to security forces, said Prime Minister Yousaf Raza Gilani on Friday.

Addressing the Senate, he said 3,000 terrorists had surrendered to the government already and another 2,000 were expected to surrender in the coming weeks. However, he added, there was no room to house all these prisoners. Discussing law and order, he said the government had successfully brought the situation under control with the help of the nation and its political leadership.

Similarly, the premier noted, the government had taken an initiative to revive the economy and had brought it back on track. He said the national economy had been buoyed by the government’s stringent fiscal policy, adding the country’s foreign exchange reserves stood at $14.7 billion today.

No solution: Gilani said overcoming the power crisis was the government’s priority and assured the nation there would be no load shedding next year. He said the power outages would subside when demand reduced after November, adding the new power projects would be operational by next year. He said the opposition’s demand for the resignation of the Water and Power minister or any other cabinet member would not solve anything. “If the issue could be resolved through the resignation of any minister or even the prime minister, the government is prepared to do that,” he added. The prime minister also informed the Senate that the problems surrounding the Thar coal project had been amicably resolved. He said a Thar Coal Energy Development Board had been set up by the federal government under the chairmanship of the Sindh chief minister to oversee the project. The Planning Commission has signed an agreement with a private party to establish a 3000MW power station in the Thar region, which would be completed within three years, he added. Gilani said it was unfortunate the 1.8 trillion tonnes of Thar coal – one of the largest reservoirs in the world – had not been properly exploited. He said the government would generate electricity and produce diesel oil from these coal reserves.

Responding to a point of order, the premier informed the House that the foreign minister would brief the Senate on the Kerry-Lugar bill as soon as US President Barack Obama approved it. Link...

China pivotal for peace in the region: President Zardari

ISLAMABAD: President Asif Ali Zardari has said that China was vital for peace in the region and strengthening of ties with China was the core of Pakistan’s foreign policy.

Addressing a reception hosted at the President House to celebrate China’s 60th anniversary, President Zardari said this.

Prime Minister, Yusuf Raza Gilani, federal cabinet, parliament members, Chinese ambassador, former foreign minister, diplomats of different countries and persons from different segments of the society attended the ceremony.

President Zardari said that Pakistan and China were in harmony in their stands on terrorism, global financial crisis and several other issues. The president said that the entire world today availing the benefits of Chinese progress.

President Zardari said that Pakistan-China historical relations have to be turned into strong economic ties. Pakistan has always been with the people of China, while the people of Pakistan would always remember the wholehearted support of China. Link...

PM hosts pilgrims freed by S. Arabia

Pakistanis returning from Saudi Arabia are warmly received at Chaklala airbase on Friday.—Tanveer Shahzad

ISLAMABAD: The four-month saga of five Pakistanis arrested in Saudi Arabia in connection with a drug smuggling case ended on Friday when they returned to the country by a special plane provided by the Saudi government.

The five, Mohammad Anis, his wife Rabia and his mother Zohra Moosani and Arif Chohan and wife Shumaila, were received at the Chaklala Airbase by Interior Minister Rehman Malik and their relatives amid touching scenes.

They were taken to the Prime Minister’s House to meet Prime Minister Yousuf Raza Gilani. They praised efforts made by the government for their release.

‘We are thankful to the government, president, prime minister, interior minister and the nation who supported us and made our return possible,’ Mr Anis said.

He also thanked the Saudi authorities for providing justice and facilitating their

return to the country.

They were also allowed to perform Umra.

The three women, who were overcome by emotion, avoided talking to journalists at the airport.

‘Our aim was to bring them back unconditionally and the credit goes to all who worked for this purpose,’ the interior minister said, adding that the prime minister took special interest in the matter.

The five people were released after the real culprits who had placed narcotics in their belongings were arrested in Pakistan.

‘Your innocence has added to the country’s pride,’ the prime minister told them. He thanked the Saudi government for their release. Mr Gilani praised the efforts made by the ministries of interior and religious affairs to resolve the matter. He directed the Ministry of Foreign Affairs to intensify diplomatic efforts for the release of other innocent Pakistanis detained abroad.

The five Pakistanis were earlier scheduled to return on Sept 28, but because of some legal formalities their arrival was delayed. When they were released on Wednesday they requested the Saudi authorities to allow them to perform Umra which they could not do because of their arrest.

They were among eight Pakistanis who were arrested at Jeddah airport on June one after narcotic drugs were found concealed in their slippers provided by a travel agent in Karachi. During interrogation, three of them confessed to the crime and are now facing death sentence under the Saudi laws.

Three main accused, travel agent Syed Sarvat Hussain, his wife Safia and Faraz Hussain, who had allegedly concealed heroin in the sleepers they provided to the Umra visitors, are in police custody and being tried under Pakistani laws. Haji Abdul Jabbar Tonyo, the man allegedly behind the crime, is at large. Link...

PML like-minded announces to participate in Gilgit-Baltistan elections

ISLAMABAD: PML-Q like-minded has announced to participate in Gilgit Baltistan elections.

The decision was taken in party meeting held here Saturday under secretary general Humayun Akhtar. Senior party leaders including Iqbal Dar, Fakir Bokhari and others attended the meeting.

Referring to Gilgit-Baltistan elections, Iqbal Dar told the real Muslim Leaguers were with them and they were eager to contest elections from the platform of Muslim League.

The meeting demanded of the government to ensure holding of elections in transparent manner.

Party secretary general Humayun Akhtar told people had become disgusted with the incumbent rulers and his party would achieve victory in the elections. Party leadership would soon visit Gilgit, Baltistan, he told. Link...

Four of a family among 16 killed in Bara

BARA: Sixteen people, including four members of a family and 11 militants, were killed in mortar shelling and rocket attacks in the Bara subdivision of the Khyber Agency on Saturday.

The four family members, including a woman and three children, were killed and four others injured when a mortar shell fired by security forces hit a house in Akakhel Ghalmay area. People said the area often came under mortar attacks since the launch of the military operation here. The shells were usually fired by security forces from the Speena Thana area, they added.

Militants fired 17 rockets at the Camp Fort Salop, manned by soldiers of the Frontier Corps, killing one soldier and injuring five others. In retaliation, security forces targeted the militants’ positions with artillery guns in Dora, Landi Killay and Sasoki. Military helicopters also pounded the suspected hideouts of the militants in these areas. Security sources said several hideouts of the militants were destroyed. The forces also claimed to have killed 11 militants, including a would-be suicide bomber, in the Gurgura area, besides destroying four vehicles. One of the vehicles was stuffed with explosives. Link...

ISI Chief Discusses Situation in Pak-Afghan Region

ISI chief Lt Gen Ahmed Shuja Pasha discussed the situation in Pakistan and Afghanistan with top security officials in the US and apprised them of Pakistan's views about the new American strategy for the region.

Pasha, currently on a visit to the US, met CIA Director Leon Panetta, President Barack Obama's National Security Adviser Gen James L Jones and National Intelligence chief Dennis Blair, diplomatic sources were quoted as saying by 'Dawn' newspaper today.

"They discussed the current security situation in the Pak-Afghan region... Gen Pasha informed his US counterparts how Pakistan views the new policy debate in Washington," said a diplomatic source.

Last week, Gen Stanley McChrystal, the top US and NATO commander in Afghanistan, submitted a report to the White House warning that the US risks losing the Afghan war if it does not send more troops to that country.

The report sparked a debate in the US and Obama met his senior security advisers, including Vice President Joe Biden and Jones, on Tuesday to discuss the report. American media reported that Biden opposed sending more troops and instead urged increasing targeted attacks on suspected terrorist hideouts.

A US journalist, who interviewed Pasha last week, reported that ISI too opposed a troop surge in Afghanistan and was appealing to the US to work with Afghan President Hamid Karzai despite his "imperfections."

The ISI fears a US military surge in Afghanistan will be counter-productive. The ISI also believes that a US pullout will endanger Pakistan.

According to the report, the ISI is keenly debating the new US strategy for Afghanistan proposed by McChrystal.

The ISI leadership thinks the US cannot afford to lose in Afghanistan and it fears that a security vacuum there will endanger Pakistan. ISI officials believe the US should be realistic about its war objectives, Dawn reported.

If victory is defined as obliteration of the Taliban, the US will never win, the report said. But the US can achieve the more limited aim of rough political stability if it is patient, it added. Link...

Cotton export may rebound to 14 LT in 2009-10 season: ICAC

NEW DELHI: Cotton exports may rebound to 14 lakh tonnes in the 2009-10 season as a recovery in the global market is expected to boost demand for the fibre, the International Cotton Advisory Committee (ICAC) has said.

"Exports from India could rebound to 14 lakh tonnes (LT)," ICAC said in a statement issued on October 1.

India's cotton season runs from October to September. The current signs of recovery in the global market is likely to boost demand and cotton exports may touch the level (14.45 LT) achieved in 2007-08 season, industry experts said.

Cotton exports of India, the world's second largest producer of the fibre, had plummeted 55 per cent to 6.4 LT in 2008-09 season compared to 14.45 LT in the previous season due to global economic slowdown and high domestic prices.

ICAC said that global trade in cotton is seen to be up by 5 per cent at 69 LT even as the world production is forecast to be down by one per cent at 231 LT in 2009-10 season.

Cotton consumption is forecast to start recovering in the top three consuming countries, China, India and Pakistan, after a decline in the last season, it said.

China is forecast to import 16 LT in 2009-10 season, about 8 per cent more than last season, it said, adding that Pakistan, Turkey, Bangladesh, Indonesia, Thailand, and Vietnam are also expected to import more this year.However, cotton exports from the US are projected to be down by 20 per cent to 24 LT due to increased competition from other countries, ICAC added.

India's cotton production was about 49.3 LT in 2008-09 season, down by 4.25 LT over the previous year, according to the official data. Link...

Country can produce 100,000MW of hydropower: WAPDA

LAHORE: Pakistan has the potential to generate around 100,000 megawatts of hydropower and WAPDA has started field and engineering studies for some of the projects, mostly run-of-the-river, with a combined capacity of over 26,000MW.

WAPDA Chairman Shakeel Durrani, talking to The News in an interview, said after the Water and Power Development Authority was split into two, the onus of thermal power generation and electricity distribution had been passed on to the Pakistan Electric Power Company (PEPCO).

“This has provided WAPDA a chance to concentrate on irrigation and hydroelectric projects.”

He said the hydroelectric generation potential, which a few years ago was estimated at 56,000MW, had increased to over 100,000MW due to new studies and latest technology which facilitated more power generation.

With the help of new technology, he said, power could be generated not only from run-of-the-river feasible sites but also from existing canals where water fall was available and even from running canals without water fall.

For instance, he said, earlier studies estimated power generation from Dasu, a run-of-the-river hydroelectric project, at 3,000MW, however with the application of new technology the same site could produce 4,320MW.

Feasibility study of the project had been completed and Request for Proposals for detailed design and tender documents had been issued.

Similarly, he added run-of-the-river hydroelectric potential at Bunji on River Indus at Gilgit had been revised to over 7,100MW from the original estimate of 4,000MW. “Work on a detailed engineering design of the project is in progress.”

He said WAPDA would add 900MW of electricity from Tarbela in the next three years, adding required infrastructure including tunnel was already in place and the authority had to install power generators.

Durrani said WAPDA had accelerated work on small dams. In the first phase, 12 small dams would be built at a cost of $1.026 billion.

“China has agreed to provide finances worth $700 million for these projects which have cumulative capacity to store 2.5 million acre feet of water. Besides, these dams will produce 20.85MW of electricity as well.”

He said construction work on six of these dams would start in the next three months. These included Hingol Dam, Winder Dam, Pelar Dam and Garuk Dam in Balochistan which had cumulative capacity to store over 300,000 acre feet of irrigation water and produce 2.74MW of electricity.

He said Nai Gaj Dam having capacity of 80,000 acre feet of irrigation water and Darawat Dam having capacity of 50,000 acre feet of irrigation water were in Sindh. Work on the remaining six dams would start by July next year.

The WAPDA chairman said the remaining funds of $300 million for the small dams would be provided by the federal government.

“The beauty of these small dams is that these are located in regions where irrigation water from the existing canal system is not available. These dams will increase cultivation area in the country.”

The use of water from these dams, he added, would be most efficient as the farms falling under these dams would be irrigated through sprinkle or drip irrigation system which would save up to 60 per cent of water. Link...

Price of dry milk increased in September

By Tanveer Sher

KARACHI: After recent massive increase in prices of tea and sugar, importers of dry milk have followed suit and announced upward revision in price of the commodity which may overburden buying powers of general consumers. This step was taken to fully exploit the lethargic nature of the concerned authorities.

The increase came into affect from Thursday on Milac brand of dry milk at all wholesale and retail outlets of Karachi. It would now be available at Rs 375 per kg compared to old rates of Rs 355 to Rs 360 per kg. Increased prices of rest of the popular brands are due to follow in next few days.

This is a second increase on dry milk witnessed during the current year, as earlier in the month of March similar increase had been announced by the importers in the garb of rise in the rates of the commodity in the international market.

However, during June and July and when substantial slump was witnessed in the global markets, no benefit was extended to the dry milk consumers.

Talking to the scribe, Fareed Qureshi, General Secretary Karachi Retailer and Grocer Group verified about the latest increase on milk rates claiming that in next few days, one kg of NIDO packet will be available to buyers at Rs 390 while one kg of popular brand Every Day milk would be sold to customers at Rs 345 per kg. Replying to a question he said that price of dry milk after fresh enhancement would be at Rs 290 per kg at retail outlets, compared to old price of Rs 275 to Rs 280 per kg.

Already the demand of all brands of tea along with sugar has plunged in the wake of massive upward revision in their rates, as witnessed during the current month while jacked up rates of dry milk by the importers would further restrict buying capacity of overwhelming segment of the population. Link...

METALS-Copper closes at 2-month low after U.S. jobs data

 NEW YORK/LONDON, Copper prices closed on
Friday at their lowest level since early August after weak jobs data
from the United States eroded confidence in demand prospects and
reinforced worries about the pace of economic recovery.

 Copper for December delivery HGZ9 on the New York Mercantile
Exchange's COMEX division sank 5.55 cents, or 2 percent, to finish
at $2.6815 a lb, its lowest level on a settlement basis since July
31.

 On the London Metal Exchange (LME), benchmark copper MCU3 shed
$106 to end at $5,879 a tonne, after sinking earlier to a session
trough at $5,810, its lowest since Aug. 3.

 The metal used in power and construction is down about 10
percent since a 10-month high of $6,549 on Aug. 28.

 Latest U.S. jobs data showing employers cut a deeper-than-
expected 263,000 jobs in September fueled fears that a weaker labor
market could derail the economy's recovery from its worst recession
since the Great Depression. [ID:298878]

 "These numbers tell me that we're going to, very quickly and
quite easily, break that ceiling of double-digit unemployment," said
Michael Pento, chief economist with Delta Global Advisors.

 The weaker-than-expected jobs figure capped a week of poor data
-- most notably, a surprise dip in Institute for Supply Management
manufacturing index, unexpectedly weak September Chicago Purchasing
Managers Index data, and 23 percent drop in September auto sales.

 "What we're seeing from the data is that all of this recovery
was artificial," Pento said. "The V-shaped recovery will be one
quarter. We'll see a Q3 print of around 3 percent, and I think it
will be a one quarter wonder."

 Sentiment took a further hit after data showed U.S. August
factory orders record their first drop in new orders in five months.
[ID:nN01278237]

 "There are fears creeping into the U.S. economy and there is
nervousness over the continuation of Chinese stimulus  packages,"
said Sucden Financial analyst Steve Hardcastle. But he added copper
is still underpinned by labor problems at mines.

 These include a worker stoppage at the northern Chilean port of
Antofagasta and a decision by workers at Chile's Spence copper mine
to strike. [ID:nN01295665] [ID:nN01410494]

 ALCOA PRICE HIKE

 Three-month aluminum MAL3 ended at $1,804 a tonne from $1,858
on Thursday.

 The average forecast for the aluminum market surplus this year
is about 1.7 million tonnes, according to a Reuters survey of
analysts in July. COMMODITYPOLL01

 That surplus could be revised up if auto industry conditions
deteriorate further, but some believe the outlook for aluminum is
improving.

 "We note with interest Alcoa's increase in U.S. rolled product
conversion prices as we believe this is yet further evidence of
improving domestic demand," Barclays Capital said in a note.
[ID:nN30227862]

 Battery material lead MPB3 fell to a two-week low of $2,070 a
tonne, before settling down $80 at $2,115 a tonne.

 Stainless steel ingredient nickel MNI3 ended down $135 at
$17,290 a tonne, while zinc MZN3 eased $33 to finish at $1,880.
Tin MSN3 closed up $75 at $14,275 a tonne.

 Tin earlier fell to a one-month low of $13,700 on market talk
that a dominant position controlling more than 90 percent was
perhaps being scaled back. 

 Easing worries about nearby supplies were also reflected in the
premium for cash material over the three-month contract MSN0-3,
down at around $550 a tonne from $730 last week.

 For a factbox on LME investigations click: [ID:nLU103114]

 Metal Prices at 1847 GMT
Metal            Last      Change  Pct Move   End 2008   Ytd Pct

                                                         move
COMEX Cu       267.20       -5.35     -1.96     139.50     91.54
LME Alum      1817.00      -41.00     -2.21    1535.00     18.37
LME Cu        5897.50      -87.50     -1.46    3060.00     92.73
LME Lead      2156.00      -39.00     -1.78     999.00    115.82
LME Nickel   17390.00      -35.00     -0.20   11700.00     48.63
LME Tin      14200.00        0.00     +0.00   10700.00     32.71
LME Zinc      1885.00      -28.00     -1.46    1208.00     56.04
SHFE Alu     14835.00      130.00     +0.88   11540.00     28.55
SHFE Cu*     48190.00     1720.00     +3.70   23840.00    102.14
SHFE Zin     15330.00      240.00     +1.59   10120.00     51.48
** 1st contract month for COMEX copper * 3rd contract month for
SHFE AL, CU and ZN SHFE ZN began trading on 26/3/07

Link...

SME Corp To Clear Backlog Of 5,000 Applications By End-November

KUALA LUMPUR, Oct 2 (Bernama) -- SME Corp Malaysia, formerly known as the Small and Medium Industries Development Corporation (SMIDEC), is optimistic of clearing about 5,000 backlog applications for grants by November.

Its Chief Executive Officer Datuk Hafsah Hashim said out of that figure, 1,800 applications were for claims while the remainder were new applications.

"To date, about 1,000 odd applications have been cleared. This is the first time we recorded a backlog of applications due to the overwhelming response received from small and medium entrepreneurs reeling from the economic crisis," she told reporters on the rebranded entity's first day of operations.

SMIDEC was rebranded as SME Corp to better coordinate functions of 14 ministeries and 60 agencies involved in small and medium-scale industries.

Hafsah said applications for grants increased tremendously this year following the pressing need by SMEs to ease their financial burden.

She said between January and August, SME Corp received about 7,982 applications for grants, which amounted to a monthly average of 998 applications compared with an average of 300 applications received before the financialcrisis began.

Hafsah said the government has committed to release RM3.04 billion in SME grants for 2009 and the total grants disbursed for the year would be announced by Prime Minister Datuk Seri Najib Tun Razak in December.

Commenting on the SME Competitive Rating for Enhancement Programme (SCORE), she said SME Corp has sucessfully reviewed 2,500 SMEs.

"Twenty-eight per cent of them have been accorded three-star ratings and above and are ready to venture abroad.

"Many ministries and agencies are interested to emulate our SCORE module including the United Nations Development Programme," she added.

SCORE, initiated in 2007, is used to track the performance of SMEs in operation management, technology adoption, certification intiatives, financial and marketing capabilities. Link...

Sell Sugar at Rs 40 Per kg: Supreme Court

ISLAMABAD : The Supreme Court of Pakistan on Friday dashed all hopes of sugar millers for a reprieve. Not only has the apex court adopted the Lahore High Court (LHC) decision of fixing sugar prices at Rs 40 per kg, it extended the scope of the judgement to the entire country. It also established a one-man commission to be headed by the reinstated Chairman Competition Commission of Pakistan (CCP) despite reservations of the government.

– “Price fixation is not the duty of the court, if government had performed its due function, we [the Supreme Court] would not have passed this order”.

Chief Justice Iftikhar Muhammad Chaudhry said in the order, “for the time being we direct that sugar be sold at Rs 40 per kg in retail in all provinces and in order to achieve this objective the federal government is required to issue a notification under Section 6 of Price Control and Hoarding Act 1977. We are of the considered opinion that by issuing such notification rates would be maintained in all provinces temporarily till CCP submits a detailed report on the subject”.

“We expect the issuance of notification by the government as early as possible and utilisation of all recourses for the implementation of the order passed by the court”, the order further says. A three-member bench of the apex court comprising Chief Justice Iftikhar Muhammad Chaudhry, Justice Ghulam Rabbani and Justice Jawwad S. Khawaja observed in its order: “Price fixation is not the duty of the court, if government had performed its due function, we would not have passed this order”.

The court authorised the Competition Commission of Pakistan headed by Khalid Mirza to call on any person for his/her input, including the Federal Board of Revenue (FBR) for calculating tax due (GST, tax paid per kg) for the determination of price after hearing all the stakeholders such as millers, federal and provincial governments, representatives of consumers (Advocate Shafqat Chohan, Advocate Farooq Bajwa) and others.

The court asked the commission to work out the cost of production of sugar and to determine the profits earned through this commodity. “If the commission faces any difficulty in exercising its function, it can approach the SC for passing an appropriate order under the circumstance,” said the Chief Justice to forestall any effort to block commission’s working. The court asked the one-man commission to submit its report within two weeks before the next date of hearing.

The court directed the federal and the provincial governments to regularise distribution of sugar by appointing duly recognised dealers. The order explained further that “there are federal and provincial laws on the subject, reference was made to Section 3 of the Sugar Products Control Ordinance 1948 which specifies that only those recognised or specially authorised can acquire sugar”.

The court passed this direction being cognisant of the fact that there is a lack of mechanism for the purpose of supply to the consumer and presence of middlemen who act as profiteers. In order to ensure sugar supply in all provinces, the court said: “If no laws are available, then recognised dealers can be appointed by the provincial governments in different areas who are registered under Sales Tax Act and have independent income tax numbers”.

Giving reference of Article 190 of the Constitution which reads “all executive and judicial authorities throughout Pakistan shall act in aid of the Supreme Court” the court directed all government functionaries including Chief Secretaries, Home Secretaries, IGs and other law enforcing agencies to implement the order.

The court also noted that sugar crisis had cropped up on account of non-adherence to relevant laws on the subject and concession extended by the financial institutions to mill owners by extending the period of payment of outstanding amounts. Earlier, Iskander Khan, president Pakistan Sugar Mills Association (PSMA) told the court that he would convene a general body meeting of the association and take every step for the implementation of the court orders in letter and spirit.

The court referred the matter of PSMA to Securities and Exchange Commission of Pakistan (PSMA) when Javed Kiani (acting Chairman of PSMA who was found to have signed a fake document) informed the court that the association was lacking the minutes of the meeting which passed a resolution to challenge the LHC decision. Advocate Shafqat Mehmood Chohan voted for the establishment of an independent commission and suggested registration of sugar dealers.

This would not curb the hoarding but also bring the dealers in tax network, he added. Advocate Khawaja Haris, counsel for the Punjab government, pleaded for bringing prices of sugar at par in all the provinces saying Punjab was ready to sell sugar at Rs 40 per kg. He said that if the commodity is sold at higher rates in other provinces, then there would be acute shortage in Punjab because profiteers would take all steps to export sugar to other provinces. Link...

WEEKLY REVIEW: Unchanged discount rates keep KSE in the red

KARACHI: The Karachi stock market faced bearish trading sessions during the week due to State Bank of Pakistan’s move to keep the discount rates unchanged in the monetary policy review, which forced investors to offload their holdings.

The Karachi Stock Exchange (KSE) 100-share index shed 209.10 points or 2.2 percent to close at 9,455.15 points as compared to 9,664.25 points of the previous week.

Other major factors that influenced the market activities negatively included investors concern over high inflation, high leverage cost and continuation of the unchanged rates of National Savings Schemes up to December 31.

The turnover was recorded at 199.77 million shares as compared with 450.99 million shares of the previous week, reflecting a decline of 55.70 percent.

“The Index lost 2.6 percent on the opening day of the week on back of an unproductive Firiends of Democratic Pakistan meeting in New York, said analyst at JS Research Market Mustafa Bilwani. “SBP also announced the Monetary Policy Statement this week, deciding to keep the policy rates unchanged at 13 percent.”

The wait and see approach was due to the consideration of inflationary risks, resolution of electricity tariff, timing of foreign inflows and in turn risk related to fiscal consolidation, he said and added that the bank also kept cash reserve ratio unmoved at 5 percent.

The prime minister this week approved increase in power tariffs by 6 percent as part of the agreement with the International Monetary Fund, World Bank and Asian Development Bank. The government plans to raise tariffs further in January and then again in March 2010.

Analysts believe that this move would help minimise the risk of circular debt in the future.

Furthermore, petroleum prices were reduced in the range of 3.6-6 percent for October to adjust with the decline in the international oil prices. This should help offset inflationary expectation, he added.

Foreigner’s continued to be on the buying side this week, as they bought shares worth $37 million while selling shares worth $23 million, resulting in net buying of $14 million. Interestingly, National Clearing Company of Pakistan Limited from October 1 has started releasing further break up of investment portfolio figures according to which in the first two days of the month mutual funds and individuals were net sellers of $2 million and $3 million, while companies bought shares worth $5 million.

“Non-availability of leverage products, fall in local oil prices, rumours on RBS and MCB deal approval by SBP and institutional profit-taking kept the market in the red zone, said analyst at Shahzad Chamdia Sec Ahsan Mehanti. Link...

KESC disconnects power supply to Pakistan Steel Mills

KARACHI: The Karachi Electric Supply Company has finally disconnected its power supply to Pakistan Steel Mills (PSM) as a part of an aggressive recovery drive launched Saturday, KESC said.

Chief Executive Officer, KESC, Naveed Ismail said in a media briefing that PSM has not paid Rs 120 million bill after several notices and warning, therefore, the power supply to PSM had been disconnected on Saturday afternoon as it failed to meet its deadline.

Naveed said that KESC was still ready to settle down a payment plant with PSM in order to recover its unpaid bills but there could be no compromise over the current bill.

“The Metropolis has been facing load-shedding only because a big number of consumers are accustomed of not paying their current bills. Today, they owe us Rs 36 billion and our modest appeals have been ignored several times,” he said.

The media and the general public blame us for being soft towards them. “If a consumer does not pay the bill, they will face disconnection,” he declared. “PSM has its own power plant and utilizes its power for running of its whole machinery,” official sources told Daily Times. They said that plant produces 110MW power to run the mill on its full capacity, even PSM also supplies power to the city sometimes.

It is pertinent to mention that the PSM has been facing serious financial crisis, as it’s sales and production are gradually decreasing for last few months and sales have remained below Rs 2 billion since last one month. The production of state-own largest steel producer has almost stopped after acute shortage of raw materials and malfunctioning of its plants. Recently, PSM administration had requested Ministry of Industry and Production for a bailout of Rs 10 billion immediately to help it come out of crisis. Link...

US soldiers’ data being downloaded overseas

Experts say availability of such data increases threat of identity theft, retaliation against troops on sensitive missions

LAHORE: The personal data of tens of thousands of US soldiers continue to be downloaded by unauthorised computer users, the Washington Post has reported, despite the US army’s assurances that it would try to fix the problem.

Tiversa, a private firm that scours the Internet for sensitive data, says it discovered the fact while conducting research for private clients. It found, as recently as this week, documents containing Social Security numbers, blood types, cell-phone numbers, e-mail addresses, and the names of soldiers’ spouses and children.

Experts say the availability of such data exacerbates the threat of identity theft and retaliation against troops on sensitive missions. In addition to using the information to drain financial accounts, hackers could pose as soldiers in an effort to ferret out sensitive data, including passwords to government systems.

House Oversight and Government Reform Committee Chairman Rep Edolphus Towns said such disclosures represented a “major security risk” to the service members and the military

The company found the sensitive documents by using “peer to peer” file-sharing software, which can be easily downloaded on the Internet and which allows computer users to share music or other files. Many computer users do not realise that it can make the contents of their computers available to others.

Towns, who is drafting legislation to address the problems raised by the peer-to-peer technology, said what was striking about these file-sharing leaks “is that these aren’t one-time events. Once this software is installed and files are leaked, the leaking is continuous”.

In 2003, the army instituted policies barring the unauthorised use of peer-to-peer software. The Pentagon did it in 2004, and defence contractors have followed suit. But critics say policies often are not enforced.

Of particular concern to security experts is the discovery of personal information about soldiers whose mission area is Africa.

A spokeswoman for the Army Special Operations Command confirmed the data breach but described it as an isolated incident.

Tiversa saw Special Forces data on servers in Pakistan in May and immediately notified military investigators.

In April 2008, it spotted spreadsheets from Army master sergeants’ promotion lists containing the personal data of 60,000 soldiers, downloaded in foreign countries.

Gary Tallman, an Army spokesman, said it was “troubling” that personal information continued to appear on file-sharing networks. Steven Shirley, head of the Defence Department’s Cyber Crime Centre, said “even very tech-savvy organisations... have issues with peer-to-peer applications”.

Towns’s committee found that contractor documents on major weapons programmes such as the F-35 Joint Strike Fighter had found their way onto these networks and have been accessed by computer users in China and other countries.

Some of these documents, while not marked “classified,” were restricted under the Arms Export Control Act of 1976, or the International Traffic in Arms Regulations (ITAR), which prohibit release of the information to unauthorised foreigners. Violation of ITAR can result in a fine of up to $1 million or 10 years in prison or both, and a civil penalty of up to $500,000 for each violation.

Industry has long complained that ITAR is too broad.

Jeffery Adams, a spokesman for Lockheed Martin, which is building the Air Force’s Joint Strike Fighter, said the company is “aware of the vulnerabilities peer-to-peer networks present to the corporation”, and so prohibits employees from using such networks on company systems. He declined to comment on the F-35 documents. Link...

New online map draws on population

LONDON: A new world atlas which concentrates on population rather than land mass has been published.

Researchers from the University of Sheffield created the online atlas of 200 maps that have been redrawn to show, at a glance, which cities are the largest, how all urban areas compare, and whether many or few people live in the countryside.

The images, which were created as part of a Leverhulme Trust project to remap the world and extend the Worldmapper project, have been created using population distribution data so viewers can understand how many people make up each nation.

The new world guides break with the 500-year tradition of conventional cartography which shows compass directions as straight lines.

Benjamin Hennig, a postgraduate researcher at the University's Department of Geography, was part of the team that created the maps by using the gridded population of the world database of the Global Rural-Urban Mapping Project.

Mr Hennig said the new projections give an "interesting insight into different countries".

He added: "The map of Afghanistan, for example, shows a country dominated by Kabul and a few other urban centres.

"The UK on this new global projection is a tale of London and the other cities.

"The United States, on the other hand, has much more variety to its human geography, while the new projection of China shows a sea of humanity bubbled up into a thousand cities in the Eastern part of the country." Link...