International

Contract of Dr Samar Mubarak extended for 2yrs

UK MPs upbeat over Pak future See on Page 8

PR workers stand against selling-off See on Page 8

Crude Oil (brent)$/bbl 99.42

Crude Oil (WTI)$/bbl 89.34

Cotton $/lb 164.75

Gold $/ozs 1,341.70

Silver $/ozs 27.92

Malaysian Palm $ 1,208

GOLD (NCEL) PKR 36,341

KHI Cotton 40Kg PKR 11,574

Yearly(Jul, 2010 up to 28-Jan-2011)

Monthly(Dec, 2010 up to-28-Jan-2011)

Daily (28-Jan-2011)

Total Portfolio Invest (21 Jan-2010)

198.29

2.90

0.55

3065

1.13

5.97

-1.29

2.06

-0.65

-4.82

-2.40

SCRA(U.S $ in million)

Portfolio Investment

FIPI (28-Jan-2011)

Local Companies (28-Jan-2011)

Banks / DFI (28-Jan-2011)

Mutual Funds (28-Jan-2011)

NBFC (28-Jan-2011)

Local Investors (28-Jan-2011)

Other Organization (28-Jan-2011)

(U.S $ in million)

NCCPL

GDR update

Commodities

Forex Reserves (22-Jan-11)

Inflation CPI% (Jul 10-Dec 10)

Exports (Jul 10-Dec 10)

Imports (Jul 10-Dec 10)

Trade Balance (Jul 10-Dec 10)

Current A/C (Jul 10- Dec 10)

Remittances (Jul 10 - Dec 10)

Foreign Invest (Jul 10-Dec 10)

Revenue (Jul 10 Dec 10)

Foreign Debt (Sep 10)

Domestic Debt (Dec 10)

Repatriated Profit (Jul- Dec 10)

LSM Growth (Nov 10)

GDP Growth FY10EPer Capita Income FY10Population

$17.30bn

14.61%

$10.98bn

$19.13bn

$(8.15)bn

$26mn

$5.29bn

$1.05bn

Rs 638bn

$58.41bn

Rs 5497.4bn

$323.6mn

-4.69%

4.10%

$1,051

175.01mn

Economic Indicators

Symbols

MCB (1 GDR= 2 Shares)

OGDC (1 GDR= 10 Shares)

UBL (1 GDR= 4 Shares)

LUCK (1 GDR= 4 Shares)

HUBC (1 GDR= 25 Shares)

$.Price

2.60

18.51

2.00

1.70

11.39

PKR/Shares

111.40

158.62

42.85

36.42

39.04

T-Bills (3 Mths)

T-Bills (6 Mths)

T-Bills (12 Mths)

Discount Rate

Kibor (1 Mth)

Kibor (3 Mths)

Kibor (6 Mths)

Kibor ( 9 Mths)

Kibor (1Yr)

P.I.B ( 3 Yrs)

P.I.B (5 Yrs)

P.I.B (10 Yrs)

P.I.B (15 Yrs)

P.I.B (20 Yrs)

P.I.B (30 Yrs)

26-Jan-2011

26-Jan-2011

26-Jan-2011

29-Nov-2010

29-Jan-2011

29-Jan-2011

29-Jan-2011

29-Jan-2011

29-Jan-2011

29-Jan-2011

29-Jan-2011

29-Jan-2011

29-Jan-2011

29-Jan-2011

29-Jan-2011

13.67%

13.71%

13.88%

14.00%

13.64%

13.80%

13.90%

14.24%

14.34%

14.20%

14.22%

14.21%

14.62%

14.81%

14.98%

Money Market Update

Symbols Buy (Rs) Sell (Rs)

Australian $ 84.60 85.60

Canadian $ 85.80 86.80

Danish Krone 14.00 14.70

Euro 116.20 117.90

Hong Kong $ 10.90 11.00

Japanese Yen 1.031 1.057

Saudi Riyal 23.25 23.50

Singapore $ 66.60 67.60

Swedish Korona 12.00 12.10

Swiss Franc 85.70 86.30

U.A.E Dirham 23.25 23.50

UK Pound 136.20 137.70

US $ 85.95 86.25

Open Mkt Currency Rates

Symbols Buying Selling

TT Clean TT & OD

Australian $ 85.13 85.33

Canadian $ 85.49 85.69

Danish Krone 15.63 15.67

Euro 116.52 116.79

Hong Kong $ 10.99 11.02

Japanese Yen 1.044 1.046

Saudi Riyal 22.82 22.88

Singapore $ 66.60 66.76

Swedish Korona 13.11 13.14

Swiss Franc 90.85 91.06

U.A.E Dirham 23.52 23.57

UK Pound 135.82 136.13

US $ 85.69 85.88

Inter-Bank Currency Rates

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Weather Forecast

Index Close Change

KSE 100 12,462.70 14.30

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Global Indices

See on Page 8

Hafeez sizzles asPak crush Kiwis

Karachi, Sunday, January 30, 2011, Safar-ul-Muzaffar 25, Price Rs12 Pages 8

ISLAMABAD: The UnitedStates Embassy in Pakistan hascalled for the immediate releaseof a US diplomat detained byauthorities in Lahore.

Calling for immediate releaseof the US citizen the USembassy in a press statementdubbed the detention as"unlawful" and said that thedetainee is a diplomat, assignedto the US Embassy inIslamabad and he has a USdiplomatic passport andPakistani visa valid until June2012.

On January 27, the diplomatacted in self-defense when con-fronted by two armed men on

motorcycles.The diplomat had every rea-

son to believe that the armedmen meant him bodily harm.

Minutes earlier, the two men,

who had criminal backgrounds,had robbed money and valu-ables at gunpoint from aPakistani citizen in the

See # 9 Page 7

US pressurises Pakto let diplomat go

NA body summons US Consulate

ISLAMABAD: PresidentAsif Ali Zardari said that pres-ent government is seriouslyconcerned and working on pri-ority basis to improve political,economic, administrative andlaw and order situation inBalochistan.

He expressed these viewswhile meeting separately withDeputy Chairman Senate MirJan Muhammad Jamali andSardar Muhammad SalehBhootani, former caretaker

chief minister of Balochistanon Saturday at the Aiwan-e-Sadr.

Developmental issues relat-ing to their areas were dis-cussed during their separatemeetings with the President.

The President said that pres-ent government is seriouslyconcerned and working on pri-ority basis to improve political,economic, administrative andlaw and order situation in theprovince. He reiterated com-

mitment of the government toalleviate the sense of depriva-tion of the people ofBalochistan and bring theprovince at par with other partsof the country in terms ofdevelopment.

Deputy Chairman Senate JanMuhammad Jamali and SardarMuhammad Saleh Bhootanithanked the President for hispersonal interest to resolve theproblems and issues of the peo-ple of Balochistan. -Online

Balochistan prosperitypriority no 1: President

Depurty Chairman Senate calls on President

DAVOS: Leading tradingnations agreed Saturday toconclude negotiations for a

free trade deal by July,European TradeCommissioner Karel De

Gucht said on the sidelines ofthe World Economic Forum.

"Everybody agreed that weare in the endgame that weshould get a deal in July," saidDe Gucht, after a meeting withhis trade counterparts, includ-ing US Trade RepresentativeRon Kirk and ChineseCommerce Minister ChenDeming.

"There is much work to bedone, and we will draft a textin March," he added.

Launched in the Qatari capi-tal in 2001, the Doha Round oftalks for a global trade pact hasrepeatedly missed deadlines

amid disagreements betweendeveloping and developednations on the levels of cuts tobe imposed on industrialgoods tariffs and agriculturesubsidies.

On Friday, British PrimeMinister David Cameron andGerman Chancellor AngelaMerkel made a plea for therapid conclusion of the deal,saying that it would amount toa cost-free stimulus for theeconomy.

Cameron made a strong pushfor negotiators to move towardsa deal this year before the

See # 10 Page 7

Doha Deal Deadline Declared

Staff Reporter

KARACHI: The State Bank ofPakistan Saturday has decidedto keep its policy rateunchanged at 14.0 per cent.

This was announced by ShahidH Kardar, Governor, State Bankof Pakistan, while unveiling theMonetary Policy Statement forFeb-March at a press conference.

"SBP is also aware of the del-

icate balance that needs to bestruck between risks to inflationand economic growth andtherefore has decided to keepthe policy rate unchanged at 14per cent for the time being,"Kardar said while explainingthe rationale behind keeping thepolicy rate unchanged.

The future course of policyaction would be contingentupon expected progress of key

areas of concern to State Bank,he stressed.

Kardar listed the followingthree developments that pro-vide comfort to the State Bank:-

First, SBP anticipates that thecurrent shift away from SBPfinancing will be consolidatedsince an understanding has beenreached with the governmentthat it will restrict its borrow-ings from the SBP to below theend September stock of Rs1290billion.

Second, an external currentaccount surplus in H1-FY11 issomewhat rare in Pakistan andis a marked improvement overearlier projections. This indi-cates that the risk of fiscal prob-lems slipping into externalaccount has not materialized sofar, thereby providing an oppor-tunity to address the persistentfiscal issues.

Third, SBP is optimistic thatthe recent multi-partisan effortswill improve fiscal revenues

and curb current spending (one-off and continuous).

Talking about current state ofthe economy, SBP Governorsaid that delays in crucial eco-nomic reforms had increasedchallenges for the managementof the economy.

Despite high interest rates,the fiscal deficit and borrow-ings from the banking systemwas continuing to stoke infla-tionary pressures, he said andadded that this was impedingeconomic recovery and increas-ing the debt burden of the coun-try.

However, an improvedexternal current account andstable financial markets allowfor some optimism, he said."Under these challenging cir-cumstances, a proactive mon-etary policy is necessary butnot sufficient to tackle highand persistent inflation,"Kardar said.

See # 5 Page 7

Discount rate status-quoedMPS for Feb-Mar announced; Policy rate unchanged at 14pc

Govt borrowing reduced Rs230bn in one month; C/A surplus after 7yrs

ISLAMABAD: Minister forInformation and BroadcastingQamar Zaman Kaira Saturdayexpressed surprise on the recentstatement of PML-N leaderMian Nawaz Sharif in which heclaimed that federal governmenthad wanted to implicate himand his younger brother in theassassination case of PunjabGovernor Salman Taseer whilePrime Minister Syed YousufRaza Gilani came to their res-cue.

"The statement is really puz-zling," said Kaira.

He said that according toArticle 90 of the Constitution asamended through the 18thAmendment, Prime Ministerand ministers together consti-tute the Federal Governmentand if Gilani "rescued" theSharifs, then it meant FederalGovernment rescued them.

"This government is led byPrime Minister Syed YousufRaza Gilani, it is surprising,therefore, to dangerously allege

that the government is doingone thing while the Premier isdoing another", he added.

Kaira said that the PPP-ledgovernment did not believe invictimisation of its opponents.

He said that there was nopolitical prisoner in the countrytoday and the credit for thisgoes to the reconciliatory poli-tics of Shaheed MohtarmaBenazir Bhutto, President AsifAli Zardari and Prime MinisterGilani.

"The PPP believes in politicsof peaceful coexistence andacross the board reconciliation.The government is taking alongpeople and political parties ofall shades and opinion", headded. He urged Nawaz Sharifto avoid issuing such statementsin future.

The minister said thatGovernor Taseer was a politicalpersonality and holding a politi-cal office and was killed onpolitical basis.

See # 11 Page 7

Taseer murderis political,says Kaira

ISLAMABAD: The SenateSubcommittee of the StandingCommittee on Communicationson Saturday directed theMinistry of Finance andPlanning Commission to releasesufficient funds for ongoingNational Highway Authority(NHA) projects in Khyber-Pakhtunkhwa as many roadprojects were being delayed dueto scarcity of funds.

The subcommittee which metunder the convenorship ofSenator Zahid Khan here issuedshow-cause notices to PrincipleSecretaries to President andPrime Minister on their failureto attend the sub-committeemeeting.

However the subcommitteewhich had also decided to issueshowcause notice to SecretaryPlanning Commission SohailAhmed, decided not to do so onthe recommendation of IsmailBuledi.

Senator Zahid Khan said thatduring past few months 3.7 bil-lion have been allocated forroad projects being built underMultan package but meagerfunds were released for LowariTunnel, Peshawar Northern By-pass and Hassanabdal-Mansehra Highway project.

He also said that in his areaTimargarra-Chakdara road wasin dilapidated condition and thepeople of the area were veryunhappy over apathy of theNHA.

Minister for CommunicationsArbab Alamgir asked the com-mittee to give some time so thathe could visit Finance Ministryfor allocation of Rs2 billion forNHA projects in Khyber-Pakhtunkhwa.

The officials of Finance andPlanning Division promised torelease sufficient funds for roadprojects in next week.

See # 6 Page 7

MoF directed torelease KP fund

Consensusfor issues resolution

soughtISLAMABAD: ChairmanSenate Standing Committee onDefense and Defense Production,Lt Gen (Retd) Javed Ashraf Qazihas said that parliamentary over-sight of the executive ensurestransparency and promotes goodgovernance besides enabling thegovernment to devise popularpolicies to achieve the goal ofdevelopment and social emanci-pation of common man.

He said that the role ofParliament was of utmostimportance in achieving con-sensus on issues of immensepublic significance.

See # 2 Page 7

No diplomat has immunity to kill: Pak

LAHORE: Punjab Law Minister Rana Sanaullah has said thataccording to the United Nation and Geneva resolutions, no diplo-mat has immunity to kill the innocent citizens of any country.

He said that Punjab Government will take legal action againstUS national Raymond Davis. He said that USA should accept thecourt decision.

Taking to a private TV channel, he observed that he wrote a let-ter to USA consulate and demanded of See # 8 Page 7

WoW

Inflation

falls 0.91pc ISLAMABAD: Sensitive PriceIndicator (SPI), for the weekended on January 27, for the low-est income group up to Rs3000,has registered decrease of 0.91per cent over the previous week.

The SPI for the week underreview in the above mentionedgroup was recorded at 297.34points as against 300.06 points reg-istered in the previous week,according to provisional figures ofFederal Bureau of Statistics (FBS).

The weekly SPI was comput-ed with base 2000 2001=100covering 17 urban centers and53 essential items for allincome groups and combined.

The SPI for the combinedgroup also decreased by

See # 7 Page 7

2 Sunday, January 30, 2011

TV PROGRAMMES

SUNDAY

Time Programmes

8:00 News

9:05 I Samaa (Rpt)

9:30 Taxi News (Rpt)

10:10 The Reema Show

(Rpt)

11:10 Awam Ki Awaz

(Rpt)

12:00 News

13:10 Faisla Aap Ka (Rpt)

14:10 Tafteesh (Rpt)

15:00 News

16:00 News

17:00 News

18:00 News

19:30 i Samaa

20:05 The Reema Show

21:00 News

22:03 Faisla Aap Ka

23:05 Crime Week

KARACHI: Sindh Chief Minister Syed Qaim Ali Shah presiding over a meeting of Sindh Cabinet at

Sindh Secretariat. -APP

ISLAMABAD: Director General Radio PakistanMurtaza Solangi giving certificates to the

participants during the concluding ceremony of“TOT for PBC Radio producers on Radio for peace

Building” at a local hotel.- Online

HYDERABAD: Deputy Speaker Sindh Assembly Shehla Raza distributingprizes among the participants during a ceremony in connection with

Shah Latif Day organized by Institute of Modern Sciences & Arts.- Online

LAHORE: LCCI office-bearers snapped with FPCCI leaders Tariq Shafi andChoudhry AAmir Atta Bajwa. -Staff Photo

KARACHI: CEO Gillette Pakistan Saad AmanullahKhan announcing the results of the lucky draw at

its iconic display at Metro Cash and Carry,Karachi. Staff Photo

Staff Correspondent

ISLAMABAD: TheSenate Sub-Committee ofthe Standing Committeeon Communications onSaturday directed theMinistry of Finance andPlanning Commission torelease sufficient funds forongoing NationalHighway Authority (NHA)projects in KhyberPukhtoonkhaw as manyroad projects were beingdelayed due to scarcity offunds.

The sub-committeewhich met under the con-venorship of SenatorZahid Khan here issuedshow-cause notices toPrinciple Secretaries toPresident and PrimeMinister on their failure toattend the sub-committeemeeting. However the sub-committee which had also

decided to issue show-cause notice to SecretaryPlanning CommissionSohail Ahmed,decided notto do so on the recommen-dation of Ismail Buledi.Senator Zahid Khan saidthat during past fewmonths 3.7 billion havebeen allocated for roadprojects being built underMultan package but mea-ger funds were released forLowari Tunnel,PeshawarNorthern By-pass andHassanabdal-MansehraHighway project.

He also said that in hisarea Timargarra-Chakdararoad was in dilapidatedcondition and the peopleof the area were veryunhappy over apathy ofthe NHA.

Minister forCommunications ArbabAlamgir asked the com-mittee to give some time

so that he could visitFinance Ministry for allo-cation of Rs2 billion forNHA projects in KhyberPukhtoonkhaw.The offi-cials of Finance andPlanning Division prom-ised to release sufficientfunds for road projects innext week. On this assur-ance convener of the sub-committee Zahid Khanpostponed the meeting tillFriday next with the direc-tion that funds should bereleased positively for theKhyber Pukhtoonkhawprojects.

The meeting was attend-ed by Senator IsmailBuledi,Secretay,PlanningCommission SohialAhmed,Acting ChairmanNHA Muhammad Junaidand senior officials ofMinistry ofCommunications,Financeand Planning Commission.

Senate committeefor funds to NHA

ISLAMABAD: Using itsefficient ComplaintsRedressal System,National Database andRegistration Authority(NADRA) has effectivelyand transparently resolved151,220 complaints fromflood affected populationwho had been facing dif-ferent problems in gettingWatan cards.

This was stated byDeputy ChairmanNADRA Mr. Tariq Malik.The system's objectivewas to address the com-plaints from genuine bene-ficiaries which wereunable to get registered forWatan cards.

He said "We believe thatwe have successfully madean effective and adequate

mechanism that yieldstransparent delivery of reliefand rehabilitation aid to theaffected population".

The NADRA has so farissued around 1.48 millionWatan Cards successfullydisbursing approximatelyRs.27.5 billion to floodaffected families of differ-ent parts of the country, hesaid.-NNI

NADRA resolves

complaints of Watan Cards

KARACHI: The PakistanTelecommunication Limited(PTCL) has turned anothermilestone with the entry ofKarachi Stock Exchange(KSE) in its Tier 3 CertifiedData Centre.

The KSE, the leadingfinancial institution regardedas the hub of capital forma-tion is hosting its criticalapplications at PTCL Tier 3Certified Data Centre, says apress release.

The PTCL Data Centerservices are an ideal choicefor enterprises, especiallyfinancial enterprises, whowant the flexibility to housetheir Primary, DisasterRecovery and/or BusinessContinuity sites and choosefrom a variety of cost reduc-ing services as their business

demands. The data center is part of

the overall PTCL ManagedServices approach whichprovides our corporate cus-tomers not only reducedcosts, but also improve-ments in the availability,performance, resilience andsecurity of an organization'sIT systems. The KSE willalso utilize PTCL's data andinternet connectivity forproviding a fault resilientinfrastructure to its users sothat financial trading isavailable 24 hours a day, 7days a week. KSE's utiliza-tion of PTCL's Tier 3Certified Data centre is fur-ther evidence that presti-gious institutions like theKSE has turned to PTCL toprovide it services that are

not only best in class butalso follows internationalstandards and practices at afraction of the cost.

SEVP BZS Abdallah Yusufstated that PTCL is heavilyinvesting in these ICT assetson behalf of our customers sothat they can focus on theircore competencies. Gettingour Data Centers certified isfurther evidence that PTCLis committed to provide tech-nology to the Governmentand Enterprise markets ofPakistan of internationalstandards. PTCL is the onlyunified service provider inPakistan, able to service allcustomer segments includingconsumers, enterprise andcarries with a comprehensiveportfolio of services to caterfor all their needs. -NNI

KSE hosts disaster recovery

at PTCL data centre

Staff Correspondent

LAHORE: The LahoreChamber of Commerceand Industry Saturdaytook FPCCI onboard onall its major initiativesplanned for the year 2011and discussed threadbarepros and cons of each andevery project.

The LCCI PresidentShahzad Ali Malik andSenior Vice PresidentSheikh MohammadArshad gave presentationto the FPCCI delegationled by its Zonal ChairmanTariq Shafi and RegionalVice President Ch AmirAtta Bajawa. LCCI VicePresident Sohail Azhar,former LCCI PresidentsMian Tajammal Hussain,Iftikhar Ali Malik, MianAnjum Nisar, MianMuzaffar Ali and formerLCCI Vice PresidentShafqat Saeed Pirachaalso spoke on the occa-

sion.FPCCI's Zonal

Chairman Tariq Shafiappreciated the initiativesof the Lahore Chamber ofCommerce and Industryand assured his total coop-eration for the success ofthe projects.

Tariq Shafi said thatLCCI projects are greatinitiatives of nationalimportance that wouldrightly address the ques-tion of our economic sur-vival and sustainability.

The LCCI PresidentShahzad Ali Malik saidthat the sole objective ofhaving another Dry Port isto make the trade andindustry competitive byreducing delivery time andcost. He said that the proj-ect was well on way and itwould be a fully equipped,State-of-Art Dry Port thatwould be ensuring cost-effective and efficientlogistic solutions to pro-

mote economic activitiesin the region.

The LCCI President saidthat the successful modelsof private sector-managedDry Port already exist inthe shape of FaisalabadDry Port and Sialkot DryPort.

He informed the partici-pants that Faisalabad DryPort has a capacity to han-dle 33,000 export cargocontainers. It can handleas many as 5500 importconsignments per annum,having a value of over Rs80 billion. Same way, theLCCI President said, theSialkot Dry Port can han-dle up to 29000 exportcargo containers worthover Rs 46 billion.

Shahzad Ali Malik saidthat the proposedSheikhupura Dry Portwould be catering to thetrade and industry inLahore, Sheikhupura andGujranwala.

LCCI takes FPCCIonboard all its

initiatives

Staff Reporter

KARACHI: Halal FoodAuthority, UK in collab-oration with Bhombaland Company, Pakistanorganized a seminar on"Halal FoodAwareness", at BeachLuxury hotel Saturday.

Anjum Nisar, theFormer PresidentKarachi Chamber ofCommerce and Industry(KCCI) and ViceChairman BMG (KCCI)was the chief guest ofthe seminar and MasoodKhawaja, President,Halal Food Authority,UK, Muhammed SaeedBhombal CEO,Bhombal Group, A QKhalil FormerPresident, KCCI, HamidMaker Chairman,Helpline Trust, Ateeq urRehman Advisor, KCCI,Asad Sajad, CEO, Halal

Development Council,Tariq S Bhombal,Bhombal and Companyalso spoke at the semi-nar.

The Speakers intensi-fied the efforts for HalalFood, written off widespread suspicion andrectified the ongoingfrustration on Halal cer-tification.

There are around 1.3billion Muslims in theworld and 1.5 billionHalal consumers, whichmeans that one out ofevery four humanbeings consumer Halalproducts. The differ-ence of 0.2 billionbetween the Halal con-sumers and Muslims isaccounted for by non-Muslims living inMuslim majority coun-tries where most foodsare Halal, the seminarwas told.

1.3bn Muslims,1.5bn Halal

consumers in world

Deputy

Chairman

Senate calls

on PresidentISLAMABAD: DeputyChairman Senate Mir JanMuhammad Jamali andSardar Muhammad SalehBhootani, former caretakerchief minister ofBalochistan Saturday sepa-rately called on PresidentAsif Ali Zardari at theAiwan-e-Sadr here.

According to a pressrelease, the developmentalissues relating to theirareas were discussed dur-ing their separate meetingswith the President.

The President said thatpresent government is seri-ously concerned and work-ing on priority basis toimprove political, econom-ic, administrative and lawand order situation in theprovince. He reiteratedcommitment of the govern-ment to alleviate the senseof deprivation of the peo-ple of Balochistan andbring the province at parwith other parts of thecountry in terms of devel-opment.

Deputy Chairman SenateJan Muhammad Jamali andSardar Muhammad SalehBhootani thanked thePresident for his personalinterest to resolve the prob-lems and issues of the peo-ple of Balochistan.- NNI

Gas major

issue of

leather

industryStaff Reporter

KARACHI: The Chairman,Pakistan Tanners'Association, Khurshid Alamhas strongly condemned in apress statement issued today,the gas suspension in Punjabdespite all assurances madeby the Prime Minister ofPakistan, Governor Punjaband other concernedGovernment departments forthe restoration of gas supplyto the tanning units located inPunjab to make them able torun their factories smoothly.

The Chairman PTA strong-ly criticized the Governmentpolicy causing great hard-ships to the leather industryof Pakistan and in result ofthat already lost precious for-eign exchange in terminationof export orders owing toinability of timely deliveryby our members speciallylocated in Punjab to the for-eign buyers/customersbecause of the gas interrup-tion at Punjab's leather.

Lube base

oil prices

increasedStaff Reporter

KARACHI: The AttockRefinery Ltd has increasedby Rs6.50 per litre the pricesof lube base oil.

According to the Chairman,All Pakistan LubricantsManufacturers Association(APLMA) Mian ZahidHusain refineries haveincreased prices of lube baseoil by 15 per cent in the pastfour months. The newincrease would result into Rs8to Rs10 per litre in all lubri-cants. He said that sinceDecember this is third timethat base oil prices have beenincreased without any justifi-cation or taking lubricantsmanufacturers into confi-dence. He pointed out that theprices increase in base oil wasbeing linked with the pricefluctuation in the internation-al market but at the time whenthe prices of POL have gonedown to $87 per barrel.

SBP to

issue 2nd

installment

of mark-up

rate subsidyStaff Reporter

KARACHI: Th e StateBank of Pakistan hasadvised banks, develop-ment finance institutions(DFIs) and microfinancebanks (MFBs) to submitclaims for second install-ment of mark-up rate sub-sidy with respect to FiscalRelief Package of theGovernment of Pakistanfor the beneficiaries of eli-gible sectors other thantextiles in KhyberPakhtunkhwa, Federallyand ProvinciallyAdministered Tribal Areas.

According to a Circular(SMEFD Circular LetterNo. 3) issued Saturday, theMinistry of Finance hasadvised to release secondinstallment of the subsidyunder the Scheme for theperiod from 01-07-2010 to31-12-2010 to the benefici-aries of other eligible sec-tors.

It may be mentioned herethat the State Bank ofPakistan had alreadyadvised banks/DFIs to sub-mit their claims for secondinstallment for the benefi-ciaries of textile sectorthrough a circular onJanuary 15, 2011.

According to theCircular, under the modusoperandi of the Scheme therate of mark up differentialfor second installment, forsix months ending on Dec31, 2010, has been workedout at 5.32%. Banks/DFIshave been advised to sub-mit duly completed claimsat SBP-BSC (Bank),Peshawar for reimburse-ment for the period 01-07-2010 to 31-12-2010 latestby February 28.

However, MFBs mayclaim mark up rate differ-ential to the extent of22.5% p.a. i.e. differentialbetween 7.5% p.a. andWeighted Average LendingRates of MFBs i.e. 30%p.a. or actual rate whichev-er is lower, the Circularadded.

winnersof Gillettelucky drawannounced

Staff Reporter

KARACHI: GillettePakistan, the premium worldrenowned male groomingbrand, today announced theresults of the lucky draw atits iconic display at MetroCash and Carry, Karachi.This one-of-its kind displaysets a record in the rich histo-ry of Gillette as it measuresan astounding 199 feet inlength carrying GilletteMach3 razor packs, car-tridges and shave care prod-ucts.

The contest which waslaunched earlier this monthby Gillette in collaborationwith Metro culminated andSaad Amanullah Khan, CEOGillette Pakistan, conductedthe lucky draw ceremony atMetro.Cash and Carry amidstexcited shoppers and media.Saad announced the names of10 lucky draw winners whowon Gillette gift hampers.

AHF

announce

monthly

dividendsTFD Report

KARACHI: The ChiefExecutive on behalf of theBoard of Directors of ArifHabib Investments Limited(AHI) - the ManagementCompany, has announcedmonthly dividends for two ofits funds. Pakistan IncomeEnhancement Fund (PIEF)has announced an interim div-idend of Re 0.43 per unit. Aninvestor holding 100 units asof Jan 25 get 0.8466 units onthe ex-bonus price of Rs50.79 per unit, the proportion-ate apply to actual holdings.The highest rated MoneyMarket Fund, Pakistan CashManagement Fund (PCF) hasannounced a bonus distribu-tion of Re 0.42 per unit. Aninvestor holding 100 units asof Jan 25 get 0.8347 units onthe ex-bonus price of Rs50.3193 per unit, the propor-tionate apply to actual hold-ings. The entitlements arepaid to the Unit holderswhose names appeared in theregister of unit holders onJanuary 25, 2011.

PIEF delivered annualizedYTD (Year-to-Date) return of9.68% against the industryaverage of -4.30% inAggressive Income FundsCategory, translating into anoutperformance of 13.98%against its peer group andPCF delivered annualizedYTD (Year-to-Date) return of11.41% against the industryaverage of 10.99% in MoneyMarket Category, translatinginto an outperformance of0.42% against its peer group(as of Jan 26). Such returnsin both funds have beenachieved with highest creditquality portfolios and proac-tive fund management strate-gy. AHI's fund managementteam includes specialists foreach sub asset class.

Car could look

like in 22nd

CenturyJust imagine what cars will look like 100 years

from now! This is what engineer Peter Maskushas attempted to do. Maskus has worked atBMW, Porsche, and Ferrari, and has now startedhis own company in Switzerland called Acabion.

Hands on with

Swiftpoint MouseFor those who don’t remember, the

Swiftpoint mouse is a tiny mouse that isdesigned to be the size of your thumb. The pur-pose of the tiny mouse is to use that space youdon’t use on your laptop as a mousepad.

As many of you know, I have to have amouse, but I have been in situations where Idon’t have enough space and had to resort tothe trackpad. I can’t stand the trackpad, but Ihad no problem using the Swiftpoint Mouse.

Sunday, January 30, 2011

Latest Gadgets Ricoh does

digital picture

with new CX5Ricoh knows that the market for digital cam-

eras is huge, and they have just revamped theirrange with the new CX5 digital camera modelwhich boasts a wide-angle, high magnification10.7× optical zoom (28–300 mm) lens that willin turn deliver a higher autofocus speed courtesyof Ricoh’s new hybrid AF system.

Sony NewPortable console

ready to rockSony has got your back covered with the

latest and greatest, the company has justannounced their latest addition to themobile gaming scene – the NextGeneration Portable. For folks who stakedtheir house on the name PSP2 being thesuccessor to the hugely popular PSP,you’re out of luck, although we do admitthat Next Generation Portable (NGP)sounds a whole lot lamer.

iPhone

Desktop

HandsetiPhone Desktop Handset will turn

your compatible iPhone into a desk-top handset, as long as it remainsdocked. The desktop handset iscapable of navigating through theiPhone’s plethora of applications,where among them include calen-dars, e-mail and the Internet.

Corp plans to begin offer-ing game titles playableon smartphones and

tablet computers equipped withGoogle Inc's Android operatingsystem, reaching out beyond itsPlayStation machines to chal-lenge Nintendo Co.

The PlayStation Store willallow users of Android-pow-ered handheld devices tod o w n -load andp l a yt i t l e smade bySony andt h i r d -p a r t ydevelop-ers asearly asthis year, the Tokyo-basedcompany said in a statementyesterday. The games will alsowork on Sony's newPlayStation Portable handheld,it said.

The move builds on Sony'spartnership with Google inInternet-enabled TVs and dif-fers from practices at Nintendoand Microsoft Corp., whichdevelop titles exclusively fortheir own platforms. More than16 years after entering thegame industry, Sony isresponding to the popularity ofproducts such as Apple Inc.'siPhone and iPad among casualgamers, said Jack Tretton, headof the Japanese company's U.S.operations.

Sony aims to turn the gamebusiness profitable in the yearending in March for the firsttime in five years. The compa-ny's Networked Products &Services group, which com-prises PlayStation games, Vaiocomputers and Walkman mediaplayers, was Sony's biggestmoney-losing division last fis-cal year.

'Heresy'

Nintendo President SatoruIwata has dismissed selling thecompany's software separatelyfrom its consoles and hand-helds, referring to the idea as"heresy."

Sony, the world's second-largest maker of portable gameplayers after Nintendo, saidyesterday it will offer the newmodel of the PSP by the year-

end hol-i d a yseason.T h ed e v i c ew i l lo f f e ra c c e s sto third-genera-t i o n

wireless networks and havefront and rear touch pads, itsaid.

Casual gamers "This is an opportunity to go

to where casual gamers areemerging, introduce them tothe PlayStation brand andmaybe migrate them back to amore sophisticated devicedown the road," Tretton said inan interview in Tokyo yester-day.

Introduced in late 2004,Sony's PSP has failed to matchthe popularity of Nintendo'sDS touch-screen player. Sonyhad sold 64 million PSPsworldwide as of Sept. 30, whileNintendo has sold 135.6 mil-lion DS players, according tothe two companies.

'Rocket Start' Nintendo reiterated a

September plan to ship 4 mil-lion 3DS units in the firstmonth to prevent shortages.Iwata earlier this month pre-dicted a "rocket start" to U.S.sales of the player, boosted bythe device's high-definitiongraphics and titles that show-case its features.

Sony gamescoming onAndroid

Global cellphone salessurged 18 percent from ayear ago in October-

December, boosted by stronggrowth of North American smart-phone vendors Apple and RIM.

"Mobile phone users are eagerto swap out older devices for onesthat han-dle data aswell asv o i c e ,which isd r i v i n gg r o w t ha n drep lace-m e n tcyc le s , "IDC ana-lyst Kevin Restivo said in a state-ment.

The phone market has recov-ered from a slump in 2009 whenthe global economic slowdowndampened demand for the latestgadgets. Demand has surged fornew smartphones like Apple'siPhone 4 and Samsung's GalaxyS. All vendors in total sold 401million phones in the quarter,

IDC said. Strong sales also of cheaper

cellphones in China, Africa andLatin America helped to liftChina's ZTE Corp to the fourth-largest position -- following onlyNokia, Samsung and LG -- forthe first time ever, IDC said.

"Whilemost of itsshipmentshave his-toricallyconcen-trated one n t r y -level andmid-rangedevices,some of

its recent success is directly attrib-utable to its rapidly expandingsmartphone line," the researchfirm said.

Among top phone vendorsNokia, LG, Motorola Mobilityand Sony Ericsson all reporteddeclining sales for the quarter,losing market share to smart-phone vendors Apple and RIM onthe high-end of the market.

Mobile market:

Winners and losers

Sales of Microsoft Corp'sWindows software fellshort of outsized expec-

tations, rekindling fears thatthe spread of mobile gadgetswill erode its main PC-focusedbusiness.

Microsoft surprised WallStreet with a better-than-expected profit, helped byresurgent corporate spendingafter the belt-tightening of pastyears. But its shares stayed flatas investors expressed concernabout the weakness of overallcomputer sales amid a falteringU.S. recovery.

The world's largest softwaremaker, whose Windows oper-ating system runs on 90 per-cent of the world's computers,is heavily dependent on PCsales, which grew only 3 per-cent in the quarter. Now it isstarting to feel the heat frominvestors eyeing the phenome-nal take-up of Apple Inc's iPad.

"Outstanding numbers whenyou take a first look at it, butwhen you delve into them,Windows missed expectationsby $300 million," said Brendan

Barnicle, analyst at PacificCrest Securities.

Sales of smartphones andtablets are expected to growmuch more quickly than PCsover the next few years, posing

a threat to Microsoft's key mar-ket.

"We've gotten over 300 mil-lion Windows 7 licenses sold. Imean, PCs are not disappear-

ing. Put that into perspectivewith 7 million tablets sold lastquarter from Apple," said BGCFinancial's Colin Gillis.

"Clearly there are disruptionsin the landscape, but some of

the negative viewpoints areoverblown."

Microsoft stock is downabout 3 percent over the past12 months, compared with a 24percent gain for the tech-heavyNasdaq. Apple shares are up 65percent over the same period.

EARLY RELEASEThe results surprised the

market after being discoveredonline by data search firmSelerity, which posted profitand revenue numbers onTwitter at 2:50 p.m. EST.

Trading in Microsoft's sharesspiked just under an hour later,after blogs and news agenciesstarted reporting the earningsfrom the web page discoveredby Selerity, sending the sharesup as much as 2 percent to$29.46. They ebbed back to$28.87 at the close, a 0.3 per-cent gain for the day. Theydrifted slightly lower in after-hours trading.

Windows disappointson lukewarm PC sales

Google has partneredwith Israel’s YadVashem museum, tohelp digitise the largestcollection of Holocaustphotos and documentsin the world, to markInternationalHolocaustRemembrance Day.

The search giant is work-ing with the Jerusalem-based archive to proper-

ly index and store in Google’scloud 130,000 photographs,some of which are currentlyavailable on Yad Vashem’swebsite, but until now havebeen difficult to locate and dis-

cover online.Google is also applying the

same indexing and opticalcharacter recognition (OCR)technology to lots of docu-ments, ranging from visas to

survivor testimonials, in orderto help people locate more eas-ily online.

The project, which is not afinancial agreement, wasannounced yesterday, on the

eve of HolocaustRemembrance Day, which is aglobal day of remembrance forthe six million JewishHolocaust victims.

“There are many importantstories outthere,” said YossiMatias, directorof research anddevelopment forGoogle Israel.“If we don’t cap-ture them, theycould be lost.”

This is just thebeginning of the

partnership between Googleand Yad Vashem – which willbe working together to digitiseand index many more photo-graphs and documents over thecoming months and years.

Google launches

Holocaust archive

Facebook has ‘no plans

to introduce additional

app security measures’,

despite internet experts’

warnings.

Dan Rose, Facebook’shead of platform mar-keting said the compa-

ny was happy with the securitytools it had place to prevent‘rogue apps’ from spamming

users across Facebook.Responding to a question at

UK press conference atFacebook’s European head-quarters, about whether thesocial network would considerintroducing vetting measuressimilar to Apple’s App Store,which forces third party devel-opers to jump through severalsecurity loops before admittingtheir app to the shop, Rosereplied: “The tools we have inplace which stop apps from

spamming users have becomemore sophisticated…theactions we have taken havereduced the level of spamacross Facebook.”

However according toSophos, an internet securityfirm, Facebook is plagued byrogue applications which solelyexist to post spam links tousers' walls, point users to sur-vey scams that earn them com-mission - and sometimes eventrick users into handing overtheir mobile numbers to signthem up for a premium rateservice.

The issue of security andusers’ privacy came back intothe spotlight last week. AfterFacebook was forced to disablea new feature which allowedthird party app companiesaccess to people’s personal con-tact details, after negative feed-back from security experts andusers.

Facebook has no plansfor extra security apps

1202 2,100

1203 2,050

1208 2,300

1209 2,250

1280 2,075

1616 2,450

1800 2,700

2220 Slide 4,500

2330 Classic 4,400

2600 Classic 4,950

2690 5,200

2700 Classic 6,900

2730 Classic 7,500

3600 slide 12,900

3610 Fold 9,600

5030 3,100

5130 8,300

5220 10,400

5230 13,600

5250 13,600

5233 11,500

5310 12,400

5320 14,900

5530 17,200

5630 17,200

5730 23,000

5800 22,000

6120 12,000

6220 Classic 17,900

6300 10,800

6303 11,300

6303i 11,000

6600 Slide 18,900

6600 Fold 17,800

6700 Classic 20,300

6720 Classic 19,800

6730 Classic 15,200

6760 Slide 18,800

7210 8,550

7230 10,750

7310 11,000

7510 14,000

7610 13,200

C1-00 3,000

C3 11,500

C5 14,200

E5 21,300

E52 21,200

E55 23,000

E63 16,800

E66 20,000

E71 21,300

E72 27,500

E75 24,000

N78 19,800

N79 26,300

N8 40,000

N82 26,000

N85 8GB 22,800

N86 31,500

N97 39,000

N97 mini 33,000

N900 37,000

X2 9,400

X3 12,000

X3 02 Touch and Type 15,900

X6 16GB 28,000

X6 48,000

T303 8,700

T707 16,800

W302 9,600

W380i 8,800

W350i 7,700

W395 9,700

W595 13,200

W705 19,000

W980 18,200

W902 43,500

W995 25,600

F305 9,400

S302 8,200

C510 12,700

C901 14,800

C902i 15,600

C903 16,100

C905 21,400

G502 14,500

G700 12,800

Aino 30,800

Jalou 17,300

U100 Yari 18,700

Satio Idou 38,700

Xperia X1 33,000

Xperia X10 47,000

B130 2,050

B220 Guru 3,900

B300 3,600

B3210 CorbyTXT 8,700

B3410 9,500

B3410W Chat WIFI 13,400

B5722 15,400

B7300 OMNIALite 24,000

B7320 Omnia PRO 19,200

Guru B100 2,450

E1080 2,200

E1100 2,450

E1125 3,200

E2125 6,050

E250 5,200

D980 (Dual Sim) 20,300

J150 6,550

J700 7,550

M150 5,100

M200 6,200

M620 6,250

M3510 Beat b 9,200

M3710 Corby Beat 12,700

M7500 Armani 30,300

M7603 Beat DJ 32,000

M8910 Pixon 12 40,600

C3010S 5,700

C3053 6,000

C3200 Monte Bar 6,900

C3212 7,300

C3303k Champ 7,600

C3510 Genoa 8,800

C5212 DUOS 9,800

S3310 7,900

S3653 Corby 10,600

S3653 WIFI 10,800

Star S5230 11,000

S5230W Star WIFI 12,300

S5350 Shark 12,000

S5550 Shark 2 14,500

S5560 Marvel 15,600

S5620 Monte 15,500

S7220 Ultra b 21,000

S7350 Ultra s 22,100

S8003 Jet 24,000

S8300 Tocco Ultar Edition 28,200

S8500 Wave 29,900

I900 Omnia 42,500

i5700 Galaxy Spica 25,000

i8000 Omnia II 49,500

i8510 INNOV8 37,000

i8910 Omnia HD 43,700

i9000 Galaxy S 16GB 49,000

Q3i 5,999

E900 6,999

Bold 9000 33,000

Curve 8900 30,900

Peral Flip 8220 30,000

Pearl 8120 27,000

Curve 8310 29,000

ALI ZHORAIZ JAFFRI

Nokia

Mobile Prices

Updated on 29 January, 2011

Sony Ericsson

Samsung

BlackBerry

QMobile

NOTE: Always visit your local shop for the exact

Mobile phone prices.

3

Want to

Track People?

There's an

App for That

A new program analyzesiPhone apps and findsthe ones that are grab-bing your data.

More than half of alliPhone apps collectand share a unique

code that could be used to trackusers without their knowledge,according to a recent study.

Manuel Egele, a doctoral stu-dent at the TechnicalUniversity of Vienna, and threeother researchers examinedhow more than 1,400 iPhoneapps handle user data. Only asmall number blatantly com-promised privacy: 36 accessedthe device's location withoutfirst informing the user; anoth-er five mined data from theuser's address book withoutpermission. The research willbe presented at the Networkand Distributed SystemSecurity Symposium in earlyFebruary.

However, more than half ofthe iPhone applications studiedcollected the device ID—a 40-digit hexadecimal numberidentifying a particular phone.More than 750 of the appsstudied used some sort oftracking technology. In about200 cases, the developer creat-ed a way to track a device'sidentifier code; the other appsused this functionality fromadvertising or tracking soft-ware library. Egele's researchwill be presented at theNetwork and DistributedSystem Security Symposium inearly February.

"There is a potential forcompanies who are not toolegit to build profiles of theirusers," Egele says. "The iden-tifier [code] is not tied to ausername, but you could link itto a Facebook account, andthat would give you a lot ofinformation on the user,including—most of the time—their real name."

Disclaimer:All reports and recommendations have been prepared for your information

only. Summary and Analysis are not recommendation to buy or sell. This

information should only be used by investors who are aware of the risk inher-

ent in securities trading. The facts, information, data, indicators and charts

presented have been obtained from sources believed to be reliable, but their

accuracy and completeness cannot be guaranteed. The Financial Daily

International and its employees are not responsible for any loss arising from

use of these reports and recommendations.

Rattling

Muslim

countriesHaving remained involved in bizarre war in

Iraq and Afghanistan for nearly one decade thesole surviving super power has started a newgame, this time it is without using forces butcyber network. The US government failed in ini-tiating a similar demonstration in Iran in thename of rigged election.

This time the initial play was in Tunis and top-pling the government of Bin Ali proved too easy.This gave the courage to initiate similar sort ofdemonstration in Yemen, Egypt and Jordan.Looking at the atlas gives a feeling that it is thepreface of start of similar campaigns in theArabian Peninsula, mostly under the monarch.

The US has coined a term 'change of regime'and tries to sell the theme that the autocratic sys-tem is of no good and there is a need to inculcatedemocratic regimes in these countries. Many ofthe ignorant buy the theme and resort to destroy-ing their own national wealth. The assets beingburnt are not owned by the dictators but thatcountry.

The prime reasons given for the attacks on Iraqand Afghanistan have proved hoax calls.Examining the events unfolding in Egyptreminds that Sadam Husain was supported by theUS in ravaging a war on Iran and was alsoencouraged to attack Kuwait. When the agentbecame redundant his regime was toppled andhanged in the name of committing heinouscrimes that he had been committing under thepatronage of the US, claiming to be the largestdemocracy in the world.

Anwar Sadat, the man who toppled the govern-ment of Gamal Abdul Nasir was trapped to rec-ognize Israel in Camp David but soon assassinat-ed while taking salute in his own country. HosniMubarak replaced Anwar Sadat and ruled Egyptfor three decades but none of his acts annoyed thedemocracy lovers, instead he was showered bil-lions of dollars aid to give Israel the time to gainstrength, ensure creation of settlements and con-tinue occupation of the Arab areas.

As the ground realities are changing in Lebanonand the designate prime minister is being sup-ported by Hizbullah, the arch opponent of Israelsome new drama has to be staged in countrieshaving common borders with Israel i.e. Egyptand Jordan. Since Egypt is stronger as comparedto Jordan it has been selected as the first test case.

Yemen has often been accused of hibernatingmilitant groups and used as a tool to frightenSaudi Arabia, the largest producer of crude oil. Inthe worst scenario experts don't rule out a warbetween Yemen and Saudi Arabia, an actionreplay of Iraq's attack on Kuwait.

All this should be an eye opener for the citizensof Muslim countries. Though, the countries aregiven millions of dollars the benefit hardly trick-les down to the general public. The frustrated cit-izens fall prey to hoax calls and start a campaignagainst the rulers in the hope of getting somerelief, which they never get.

4Sunday, January 30, 2011

Publisher & Editor-in-Chief: Amir A. Ashary

Editor: Shakil H. Jafri

Executive Editor: Manzar Naqvi

Honorary Advisory Board

Haseeb Khan, FCA

Asim Abbas Ashary, CPA

Akhtar M. Zaidi, FCA

Dr. A. Hadi Shahid, FCA

Muhammad Arif

S. Muneer Hussain Rizvi

Khurram Shehzad, CFA

Prof. Zakaria Sajid (KU)

Zahid Bukhari SVP HBL (retd)

Ismat Sabir

Head office

111-C, Jami Commercial Street 11, Phase VII, DHA KarachiTelephone: 92-21-35311893-6 Fax: 92-21-35388428

URL: www.thefinancialdaily.comEmail Address: editor@thefinancialdaily.com

Lahore office

24- Peshawar Block, Fortress Stadium, Lahore

Telephone: 92-42-6675595 Fax: 92-42-6664349

Email Address: editor@thefinancialdaily.com

The Financial Daily InternationalVol 4, Issue 166

Japan and the United Statesfaced new pressure to con-front their swollen budget

deficits as the IMF and ratingagencies demanded more evi-dence they can bring their publicdebts under control.

The International MonetaryFund said the G7's two biggesteconomies needed to spell outcredible deficit-cutting plansbefore the markets lose patienceand dump their bonds.

Last Friday, Japan's PrimeMinister Naoto Kan vowed topush ahead with tax reformsaimed at curbing the country'sdebt, but an uncooperative oppo-sition and divisions within hisown party on policy make thechances of success slim.

"The important thing is to main-tain fiscal discipline and ensuremarket confidence in Japan's pub-lic finances," Kan, who took overin June as Japan's fifth premiersince 2006, told parliament'supper house.

Ratings agency Standard &Poor's cut Japan's long-term debtrating last Thursday for the firsttime since 2002, and hours laterMoody's Investors Servicewarned the risk of the UnitedStates losing its top AAA rating,although small, was rising.

Bond markets reacted calmly,but the latest warnings about thecolossal liabilities piled up by thetwo countries raised fears of ris-ing borrowing costs that couldhamper attempts to restore fiscaldiscipline and consolidate a frag-ile recovery.

"In advanced economies wherefiscal sustainability has not been amarket concern, credible plansgoing well beyond 2011 need tobe put in place urgently to lock inbenevolent market sentiment," theIMF said in its "Fiscal Monitor"report.

The 2007/08 financial crisisprompted a dramatic rise in devel-oped world debt, as governmentsspent billions of dollars propping

up sinking economies and bailingout the stricken banks.

In the United States, outstandingpublic debt has ballooned to morethan 60 percent of total outputsince the financial crisis, and,with a record $1.5 trillion budgetdeficit expected this year, is set togrow further.

Japan is in an even worse posi-tion. Its debt has been growing foryears as it tried to revive the econ-omy from a huge asset bubbleburst in the 1990s and outstanding

long-term government debt nowstands at around 180 percent ofGDP.

Kan has made tax and socialsecurity reform, including a futurerise in the 5 percent sales tax, apriority given the rising costs ofJapan's fast-aging society and apublic debt that is the biggestamong advanced nations.

POLITICAL CONCERNSIn Europe, where Greece and

Ireland have been driven by bondmarket pressure to take bailouts,many governments have adoptedausterity measures to cut theirdeficits.

But the IMF said new tax cuts inthe United States and increasedspending in Japan had set backprogress in rich nations more gen-erally. Ratings agencies frettedthat politics is making reining inthe deficit harder for both coun-tries.

Moody's worried that a U.S.Congress where the Republicannow control the House ofRepresentatives might fail to con-sider and pass some of the deficit-reducing measures proposed by apanel mandated by DemocraticPresident Barack Obama.

S&P, which cut Japan's long-term sovereign rating to AAminus, voiced similar concernsabout Tokyo.

"In our opinion, the DemocraticParty of Japan-led government

lacks a coherent strategy toaddress these negative aspects ofthe country's debt dynamics, inpart due to the coalition havinglost its majority in the upperhouse of parliament last summer,"the agency said.

The debt fears hanging overmuch of the developed worldunderlined the two-speed recov-ery from the financial crisis,which has seen emergingeconomies rebound strongly,especially in Asia, while the tradi-tional powers struggle.

"People are realizing thatemerging markets are not as dan-gerous as other places, in light ofwhat has happened," MarkMobius, chairman of FranklinTempleton's Emerging MarketsGroup, told Reuters in Singapore.

"Emerging markets are stillcheaper than developed marketsdespite the run up, and we see

continuing flows into emergingmarkets."

NO CRISIS YETThe reaction of bond markets

indicated there is no immediatecrisis on the horizon for theUnited States or Japan, with theformer protected for now by itsstatus as issuer of the globalreserve currency, while Japan issheltered by the fact its sovereigndebt stock is overwhelminglyheld by domestic investors withample savings.

Japanese government bondsgained on Friday, recovering froma dip after the S&P downgrade,although the Nikkei share averagefell 1 percent.

"The immediate impact of thedowngrade is negligible. It haslong been accepted that Japan isin an unenviable fiscal situation,"said Nobuto Yamazaki, an execu-tive fund manager at DIAM AssetManagement.

"But the downgrade highlightedthe fact that the government'sability to follow through with itspolicies is being questioned. Thiscould be a negative factor waitingto kick in if the government startsrunning into trouble trying topush through budget-relatedissues."

U.S. Treasuries were littlechanged in Asian trade, with thebenchmark 10-year note up 1/32in price to yield 3.41 percent,down a basis point from late U.S.trade.

"I don't think there is any riskthat U.S. Treasuries will have dif-ficulty finding a home and at areasonable price at the moment.Particularly ... when the Fed isbasically giving out money forfree right now," said RolandRandall, senior strategist at TDSecurities in Singapore.

"There is a bigger picture of aslow decline in the perception thatpeople have of whether the U.S. isa safe store of wealth or not. Butthat's a big long-term picture."-Reuters

US & Japan:

Time is Running Out

In Europe, where Greece

and Ireland have been

driven by bond market

pressure to take bailouts,

many governments have

adopted austerity measures to

cut their deficits.

“

The ultra-loose monetarypolicy of the United Statesis setting the stage for "a

world credit war," a Chinese ratingagency said last Friday, in the latestwarning against soaring debt bur-dens in developed economies.

The Beijing-based DagongGlobal Credit Rating firm tookconcerns about a world currencywar to a higher level as it suggest-ed China and other emerging mar-ket countries may need to reducetheir U.S. Treasury holdings to"avoid unpredictable losses on theirown interests."

It also said in its 2011 SovereignCredit Risk Outlook that quantita-tive easing by the U.S. FederalReserve has "eroded the legitimacyof the global monetary system thattakes the dollar as the key reservecurrency."

The policy easing was "bringingthe U.S. dollar's credit-worthinessto a vulnerable position," the rat-ings group added.

"I think they're aligning somevery real threats," said JonathanMasse, who helps manage $616million at AlphaShares, aCalifornia-based money manager.

"Even if our outstanding debtremains constant over the longerrun, the real threat is the interestrate rising. If our credit ratingdrops, and we end up paying high-er rates, there would be less moneyavailable to some of these bigplans" that President Obama hasoutlined.

The U.S. Treasury declined tocomment on Dagong's report,which followed warnings by theInternational Monetary Fund andMoody's Investors Service on lackof government action on the U.S.

growing budget deficit.In Davos, however, U.S. Treasury

Secretary Timothy Geithner saidthere was a growing recognitionthat the U.S. fiscal position isunsustainable. He said political willto put it back on track "is not fullymanifest at the moment but it'scoming."

Dagong has been rating Chinesecorporate bonds since 1994, but itis a relative newcomer to sovereign

debt ratings. It created a splash byrating the United States at AA,below China's AA-plus, in July2010.

It downgraded the U.S. sovereigncredit rating last November, fol-lowing the Fed's decision to pumpmore dollars into the U.S. econo-my.

DIVERSIFYING OUT OFTREASURIES?

Although Dagong's statementdoes not fully represent Beijing'sview, it was in line with the govern-ment's unhappiness with the U.S.policy easing, which has beenblamed by Chinese officials forfueling global inflation risks.

As China's $2.85 trillion foreignexchange reserves are mainlydenominated in U.S. dollars,Chinese Premier Wen Jiabao hadpublicly voiced concerns about the

assets.President Hu Jintao told a recent

Group of 20 nations summit inSeoul that China wanted "an inter-national reserve currency systemwith stable value, rule-basedissuance and manageable supply."

Other emerging market power-houses, such as Brazil, have beenaccusing the United States of trig-gering a world currency war withits easy-money monetary policy.

Dagong said in the English-lan-guage report that the United Statesis trying to "haircut" its creditors bypermitting a weakening currency.

"The behavior that the UnitedStates ignores international credi-tors' legitimate interests indicates adramatic decline of the country'swillingness to repay the debt,"Dagong said.

In defining the "credit war,"Dagong said "it aims at encroachon other countries' intereststhrough continuous depreciatingthe actual value of the currency;and it arouses all the countries inthe world to take various creditresources as a financial weapon tosafeguard the national interests."

It said capital flows into emerg-ing economies stemmed fromcheap dollars and is "a destructivefactor to the healthy economic

development in different coun-tries."

For full version of Dagong'sreport, see http://www.dagongcred-it.com/dagongweb/english/pr/show.php?id=86&table=web_e_zxzx

PORTUGAL AND SPAIN Dagong added the sovereign debt

crisis in the euro zone countrieswould intensify in 2011, and it maydowngrade sovereign credit ratingsof Portugal and Spain.

"Countries, such as Portugal andSpain, will have to ask for bailoutsin 2011," it said.

Earlier this month, China reaf-firmed a commitment to buyingSpanish bonds, while newspapersin December said Beijing wasready to buy Portuguese debt tohelp it through Europe's spreadingdebt crisis.

Echoing the InternationalMonetary Fund and western ratingagencies, Dagong also warned thatthe governments in the UnitedStates, Japan and Germany willface higher pressure on debt repay-ment in case of inflation, economicdownturns or if investors startdumping their bonds.

Ratings agency Standard &Poor's cut Japan's long-term debtrating on Thursday for the first timesince 2002, and hours laterMoody's Investors Service warnedthe risk of a negative outlook on theUnited States' top AAA rating,although small, was rising. A nega-tive outlook means a credit down-grade is more likely in 12 to 18months.

The IMF said the G7's twobiggest economies needed to spellout credible deficit-cutting plansbefore the markets lose patienceand dump their bonds. -Reuters

China rating agency

blames US for credit war

"The behavior that the UnitedStates ignores international

creditors' legitimate interestsindicates a dramatic decline of

the country's willingness torepay the debt."

5Sunday, January 30, 2010

Anew University of Haifa studyhas suggested that watchingTV coverage of terrorist events

can lead to deterioration of psycholog-ical resources, such as commitmentand a sense of success.

It may also lead to feeling threat-ened, which in turn can result in loss ofresources and other negative affects.

"Mass media plays a central role inreporting on terrorism and politicalviolence. The present study shows thatwatching this type of coverage on tele-vision has negative effects, even forsomeone who was not at all involvedin an event being viewed," said MosheZeidner, who headed the study.

The current research, which Zeidnerconducted with Hasida Ben-Zur andShlomit Reshef, set out to examinewhether exposure to televisionreportage of terror events or politicalviolence toward Israelis could posesome form of "indirect threat" on theviewer, even if he or she had noinvolvement in the event.

As many as 78 students took part inthe study, out of which 39 watched

video clips of terror attacks or politicalattacks on Israelis, as broadcast in thenews over the past decade. The controlgroup watched same-length videosshowing non-violent everyday eventsas they appeared in the news.

The results showed that the studentswho had viewed terror events feltmore personally threatened and report-ed a significantly lower level of psy-chological resources (such as theirsense of success, importance and com-mitment) after watching, compared tothe control group.

The first group also reported higherlevels of negative feelings and mood.

The researchers noted that earlierstudies that examined first-hand expo-sure to threats showed that compro-mised psychological resources andheightened levels of negative feelingscan trigger secondary trauma and post-trauma symptoms.

"It is early yet to relate to the long-term effects of viewing terror events inthe mass media, but the current studydoes show that there are definite short-term effects," noted the researchers.

Penn State sociologists have found that teenage girls whothink they are overweight, but are not, are at more risk fordepression than girls who are overweight and know it.

"Parents often worry about overweight girls'' mental health, butour findings show that it is girls who have a healthy weight but per-ceive being overweight who are most likely to feel depressed," saidJason N. Houle, graduate student in sociology and demography.

The researchers found that female weight pessimists -- girls whothought they were overweight but were normal weight -- or boys whowere actually under weight were at high risk for depressive symptoms.

"For boys it is slightly different. There is a similar pattern withweight pessimists, but underweight boys are extremely distressed.Underweight boys are far more likely to be distressed than boyswho are heavier," said Houle.

The researchers looked at data from 6,557 male and 6,126female participants who were part of the Wave II of the NationalLongitudinal Study of Adolescent Health.

The study has been reported in the current issue of the Journalof Health and Social Behavior.

Weight worries

can cause

depression

For many children in poornations, a simple pair ofglasses can be out of reach.

But a new study suggests relativelycheap specs that people can adjustthemselves hold some promise.

The study, reported in the journalOphthalmology, looked at the use-fulness of "self-refracting" glassesfor adolescents with vision prob-lems, mostly nearsightedness.

The glasses are designed so thatthe wearer can adjust them to theright strength without the need foreye professionals, who are scarce indeveloping parts of the world. Inparts of sub-Saharan Africa, forexample, there is just oneoptometrist for every 1 million peo-ple.

Made under the name Adspecs,the glasses are already in use.About 30,000 adults in developingnations have received them so far,according to the Center for Visionin the Developing World -- a groupdirected by Adspecs inventor Dr.Joshua D. Silver, a physicist atOxford University in the UK.

But it hadn't been clear whetherchildren and teenagers could feasi-bly use the specs. So in the newstudy, Silver and colleagues inChina, the UK and US had 554Chinese students aged 12 to 17years try them out.

The researchers compared thestudents' ability to self-correct theirvision -- under the supervision oftheir teachers, who had been shownhow to use the glasses -- against theresults of a professional eye exam.

The adjustable glasses work viaspecial lenses made of a clear mem-brane filled with silicon oil and heldbetween two plastic discs. Thewearer can change the amount ofoil in the lenses using a removablesyringe and dial that attach to theglasses' frame. Adding or removing

oil changes the curvature of thelenses, which alters their strength.

Among kids in the current study,just over 92 percent were able tocorrect their nearsightedness usingthe glasses. That compared with anearly 100-percent rate when thestudents were given professionaleye exams.

"What we have proven is thebasic principle," said Silver in an e-mail to Reuters Health. "The largemajority of teenaged children in anarea where poor vision from uncor-rected refractive error is commoncan achieve vision sufficient tomeet the demands of the class-room."

But many questions remain, theresearchers say -- including howwell the glasses would work forchildren in the real world, over thelong term.

The specs also have their limits.For example, they cannot correct

astigmatism, a common eye prob-lem that is usually mild but cancause blurred vision in some cases.Nor are they known for their stylishlooks: They are large, round, thick-framed and vaguely Harry Potter-esque -- although Silver's Centerfor Vision says the aestheticsshould improve as the technology

does.And that is a major barrier to the

glasses being put into wide use fornow, according to Dr. Thomas S.Shane, an eye doctor with BascomPalmer Eye Institute in Miami whowas not involved in the study.

"The obstacle we'd have is gettingkids to wear them," Shane said."They're big, they're bulky, they'renot stylish."

For the adjustable glasses tobecome everyday specs, they willneed to be made considerablylighter and more attractive, accord-ing to Shane, who has been

involved in projects to get visionscreening and inexpensive, ready-made eyeglasses to people in Haitiand Belize.

However, Shane told ReutersHealth, the adjustable glasses couldoffer a simple, cheap way to assesskids' vision and determine the levelof correction they need. Right now,one way of doing that in the devel-oping world is with portabledevices called auto-refractors.

But auto-refractors are expensiveand require someone trained inusing them. Adspecs, by contrast,are $19 per pair, and can apparentlybe used by kids as young as 12.

"I think the best thing to comefrom this study is that it's feasiblefor kids to use these as a sort of'field refractor,'" Shane said.

He and his colleagues at Bascomare beginning a study where theywill have people use the adjustableglasses to self-correct their ownvision, then give them inexpensiveready-made glasses based on thosemeasurements.

While many people in wealthiernations see eyeglasses as a basiccommodity, they are scarce in otherparts of the world.

It's estimated that about 150 mil-lion people worldwide haveimpaired vision but no access toglasses. And 90 percent of thosepeople live in developing nations,Shane noted. (Impaired visionmeans vision poor enough that, inthe US, you could not drive withoutcorrective lenses.)

Silver has said his goal is to getthe Adspecs price down to $1 a pair,and distribute 1 billion pairs world-wide by 2020.

"A key part of further work willbe the creation and test of designswhich are appealing to kids andwell-suited to the rough-and-tum-ble of daily life," he said.-Reuters

Can adjustableglasses help children?

Since vaccine, fewer hospitalized forS

ince the US began routinechickenpox vaccination in1995, the number of

Americans sent to hospitals by theinfection each year has dropped bymore than two-thirds, governmentresearchers reported Monday.

Studies have shown that after vac-cination against the varicella virusthat causes chickenpox became stan-dard, yearly rates of chickenpoxinfections in the US fell by 80 per-cent to 90 percent over the nextdecade.

For the new study, researchers atthe Centers for Disease Control andPrevention (CDC) looked at howrates of chickenpox-related hospital-izations have changed.

While most cases of chickenpoxsimply make people feel miserable -- with symptoms including an itchy,blister-like rash, fever, headache and

fatigue -- some people do developpotentially serious complications.

They include skin infections, vom-iting that leads to dehydration, pneu-monia and inflammation of the brainknown as encephalitis.

The CDC researchers found thatbetween 2000 and 2006, the yearlynumber of hospitalizations for chick-enpox complications stood at 0.1 forevery 10,000 (or one in 100,000)Americans. That compared with arate of 0.4 per 10,000 people eachyear between 1988 and 1995 --before the varicella vaccine wasintroduced.

Overall, hospitalizations fell by 71percent over the study period. Theresearchers estimate that chickenpoxvaccination prevented a total of50,000 hospitalizations between2000 and 2006.

"This further supports what we've

been seeing -- in that there have beengreat declines in severe (chicken-pox) disease," said lead researcherAdriana S. Lopez.

In an interview, Lopez noted thatmany people see chickenpox as amild illness. But, she said, parentsshould be aware that complicationscan occur. She added that eventhough hospitalizations are down,children age 4 and younger still havethe highest rates of illness severeenough to require hospital care -- at0.7 per 10,000 children between2000 and 2006.

"It's still important for parents tohave their children vaccinated,"Lopez said. During the period Lopezand her colleagues studied, childrenroutinely received one dose of thevaricella vaccine between the agesof 12 months and 18 months. In2007, a second dose was added to

the schedule, to be given betweenthe ages of 4 and 6.

Adults and teenagers who hadalready gotten the vaccine were alsoadvised to get the second dose.(While chickenpox most ofteninfects children, the vaccine is rec-ommended for teens and adultswho've never had chickenpox andtherefore lack natural immunity.)

The second dose was addedbecause one dose of the vaccine pre-vents chickenpox in only 80 percentto 90 percent of recipients --although people who are infectedafter getting just one vaccine doseusually have only a mild case of thedisease.

An important finding of the cur-rent study, according to Lopez'steam, is that chickenpox hospitaliza-tions declined by more than two-thirds in each age group the

researchers considered, includingadults.

"It's great to see that in adults,"Lopez said, noting that this is a signof "herd immunity" -- when wide-spread vaccination in a populationhelps limit disease transmission, pre-venting infections even in peoplewho are not immune.

The varicella vaccine can haveside effects. But according to theCDC, they are usually mild: about20 percent of people have swellingor soreness at the injection site, andup to four percent develop a mildrash and some skin bumps thatresemble chickenpox

Serious side effects, the agencysays, are rare -- rare enough that it isnot clear whether the vaccine itself isalways responsible. Fewer than onein 1,000 recipients suffer fever-induced seizures, and problems like

encephalitis and pneumonia havebeen reported for about two of every100,000 doses of the vaccine.

"This is a very safe vaccine,"Lopez said.

The current study did not look atthe cost-effectiveness of the chick-enpox vaccination program. Thevaccine, made by Merck & Co.,costs consumers about $84 per dose.

In a 2008 study, however, the CDCestimated that widespread vaccina-tion is saving money when all "soci-etal" costs are considered. Thatincludes doctor visits and other med-ical expenses, plus costs like parents'time lost from work and spending bylocal health departments to managechickenpox outbreaks.

The CDC estimated that for everydollar spent on the vaccination pro-gram, more than four are saved.-Reuters

Watching

terror coverage

psyches you out

Anew study has revealed that garlic has enormous potentialto prevent cardiomyopathy, a form of heart disease that isa leading cause of death in people with diabetes.

Wei-Wen Kuo and colleagues note that diabetics have at leasttwice the risk of death from heart disease as others, with heart dis-ease accounting for 80 percent of all diabetes-related deaths.

Especially dangerous is diabetic cardiomyopathy, whichinflames and weakens the heart's muscle tissue.

The study results indicated that garlic might help control theabnormally high blood sugar levels that occur in diabetes. Theyfound that rats given garlic oil experienced beneficial changesassociated with protection against heart damage. The changesappeared to be associated with the potent antioxidant properties ofgarlic oil, the scientists say, adding that they identified more than20 substances in garlic oil that may contribute to the effect.

"In conclusion, garlic oil possesses significant potential for protect-ing hearts from diabetes-induced cardiomyopathy," the report said.

The find appears in ACS' bi-weekly Journal of Agricultural andFood Chemistry.

Garlic oil

prevents heart

diseaseHave you tried out every trick in the book to lose weight - crash diets, gyms, or simply starving

yourself?Now, try a simple trick - drink a glass or two of water before meals, as that's the best way to curb

appetite and shed those pounds - says a new research. Scientists have reported that just two 8-ounceglasses of water taken before meals, can lead to weight loss.

"In this study, we found that over the course of 12 weeks, dieters who drank water before meals,three times per day, lost about 5 pounds more than dieters who did not increase their water intake,"said Brenda Davy of Virginia Tech in Blacksburg.

The simple reason is that it fills up the stomach with a substance that has zero calories. People feelfuller as a result, and eat less calorie-containing food during the meal.

And it gets even better if you replace sweetened calorie-containing beverages with it.Although there's no exact amount of water one should drink, experts advise that most healthy peo-

ple can simply let thirst be their guide. The general recommendations for women are about 9 cupsof fluids - from all beverages including water - each day, and men at about 13 cups of fluids.

Drinking

water before

meals good

Commonly used in our daily cooking, coriander has many health benefits. It is known for build-ing the stomach and promoting digestion.

Adding one or two teaspoons of coriander juice to fresh buttermilk is ideal for treating nausea anddysentery. Dry coriander treats diarrhoea.

n It is also beneficial for women especially those suffering from a heavy menstrual flow. Six grams ofcoriander seeds should be boiled in 500 ml water and afteradding sugar, it can be consumed while warm.

n For those with arthritis problems, coriander has manyanti-inflammatory properties. Boil ground coriander seedswith water and drink the concoction.

n Coriander is known to lower blood sugar by stimulatingthe secretion of insulin. It has also been called as an 'anti-dia-betic' plant. It helps the heart by lowering bad cholesterol andraising good cholesterol.

n This herb is also great for the skin. Its juice mixed withturmeric powder can help treat pimples and blackheads

Benefits of Coriander

6 Sunday, January 30, 2011Analysis & Feature

DAVOS: Even after theirannual Alpine get-together,global policymakers can-not agree which of the risksfacing the world economyare most pressing let alonedecide how to tackle them.

While there was broadagreement that the worst ofthe euro zone debt crisishas passed, countless paneldiscussions and bilateralmeetings at the WorldEconomic Forum in Davosdid little to narrow differ-ences of opinion over thethreat of inflation to theglobal recovery and theimbalances associated withdeficits and exchangerates.

The financial crisisforced policymakers tolook into the abyss andwork together to preventthe global economy going

into meltdown. The recov-ery is seeing countriesoperating more independ-ently.

"At the early stages of thefinancial crisis, at G20level, there was a lot of talkof coordination ... I thinknow everybody is goingtheir own way," TurkishFinance Minister MehmetSimsek said during one ofthe Forum's panel discus-sions.

"That's an issue, that's aproblem," he said. "Globalimbalances are there, prob-ably to grow."

Turkey is one of a grow-ing number of emergingmarket nations that haveacted to stem "hot money"inflows destabilising theireconomies. Asian andLatin American nationshave done the same, point-ing the finger at the UnitedStates for flooding theworld economy withnewly-printed money.

Much of the problem isdisagreement over priori-tising risks and not justbetween rich and emerging

nations.Take price pressures: the

United States and Franceare both leading Westerneconomies with low infla-tion rates -- running at 1.5percent and 2.0 percentrespectively -- and yet theysee the threat posed by ris-ing commodity costs verydifferently.

"I would not put inflationon a global level on the highlist of concerns," U.S.Treasury Secretary TimothyGeithner said, insteadstressing a need to improvefinancial oversight. FrenchEconomy MinisterChristine Lagarde sawthings differently: "I thinkwe should all be concernedabout the risk of risinginflation as a result of rawmaterials prices," she toldReuters Insider. "We'd bet-

ter watch out."The inflation debate

masks deeper divisionsabout the imbalances in the

world economy, centred ona rift between the UnitedStates andChina.

Washington wantsBeijing to let its yuan cur-rency rise, a developmentGeithner said would helpChina manage the infla-tionary challenges thatcome with rapid growth.Yuan appreciation wouldalso help lift U.S. exportsto China.

But China, whose econo-my continues to zoom, isconcerned loose U.S. mone-tary policy will weaken thedollar, hitting its U.S.Treasury holdings andpotentially destabilising itseconomy by choking backits exports.

"I'm worried aboutwhether China's reservesvalue will evaporate," saidYu Yongding, a formerPeople's Bank of Chinaadviser and influential econ-omist in the ChineseAcademy of SocialSciences, a governmentthink-tank.

"Definitely inflation is thebiggest concern for theChinese economy," headded.

COMMODITYBUBBLES

China's concerns areshared by other fast-grow-ing economies where risinginterest rates are drawingin capital from investorshunting for higher-yieldingbonds or commodityassets.

Columbia professor ofeconomics Joseph Stiglitzsaid ultra-loose U.S. policywas throwing the worldinto imbalance as theFederal Reserve pumps$600 billion into the U.S.economy.

"The liquidity in theUnited States isn't going toreignite the Americaneconomy," he told ReutersInsider.

"It's looking around theworld ... it's going toemerging markets thatdon't need it and it'sfuelling these bubbles. Theirony is that it might comeback and ricochet on theUnited States throughhigher commodity prices,"he said.

A weaker currency helpsa country's exporters,which is why Washingtonwants the yuan to appreci-ate and why some otherpolicymakers have bridledat the U.S. policy, whichthey see as a means of

depressing the dollar tohelping U.S. manufactur-ers.

"The problem is that noteveryone can have aweak currency simultane-ously," said NiallFerguson, a Harvard pro-fessor who specialises ineconomic history. "In thisgame of competitivedevaluation, it 's veryclear that the Chinese arewinning."

Policymakers made littleprogress at a Davos sessionon redesigning the globalmonetary system, partici-pants said.

Bank of Israel GovernorStanley Fischer recalledhow in the autumn of 2008,at the height of the global

financial crisis, it was easyto coordinate policy"because every countryagreed to expand fiscalpolicy".

"Now we're at a stagewhere some people have,in essence, to forego somegrowth in order that oth-ers may grow a bit faster,"he said. "Getting coordi-nation on that is a totallydifferent sort of problemand much harder to solve,and that includes theproblem of global imbal-ances."

French President NicolasSarkozy has some loftygoals for his chairmanshipof the G20 group this year.Davos suggests he hasmuch work to do. _Reuters

Global policymakers poles apart

LONDON: Investors snappedup emerging corporate debt inJanuary, capitalising on a yieldadvantage over unfashionablesovereigns while retaining faithin the long-term emerging mar-ket story even as local equityprices cool.

Corporate bond sales fromdeveloping economies have out-stripped emerging market sover-eign supply, with $30 billionissued so far this year -- nearly afifth of the total emerging cor-porate issuance last year.

Potential issuers are queuingup to talk to London-basedinvestors -- nine were road-showing on a single day lastweek.

Bonds have been launchedalready by, among others,

Turkey's Isbank and Russianmobile company Vimpelcom,while upcoming borrowersinclude Ukrainian steel produc-er Metinvest.

The familiar tale of a growingmiddle class in emerging mar-kets firing up demand for con-sumer goods and financial serv-ices is taking investors directlyto corporate issuance.

Unlike emerging equities,which some investors are nowstarting to see as expensive, cor-porate debt is still viewed asoffering attractive yields.

Default risk also appears to bediminishing, helped by the glob-al recovery, even as this recov-ery is making investors fretabout falling U.S. Treasurybond prices.

The corporate debt trend islikely to continue, withJPMorganforecasting more than$160 billion in emerging corpo-rate debt issuance in 2011, sim-ilar to last year's already recordvolumes.

"Emerging corporate debt isoffering a yield of around 7 per-cent for a BBB average rating --it's the best return you can see inthe fixed-income space," PolinaKurdyavko, fund manager atBlueBay Asset Management,told investors this week.

A wobbly year-end for mar-kets last year and a slow startthis year has meant emergingmarket issuance overall isdown, after a record 2010 inwhich around $300 billion wasissued in international emerging

market debt, according to bankestimates.

But investors are growingmore confident in their riskassessment of corporate bonds.

Default risk has traditionallybeen synonymous with emerg-ing corporate debt. During theglobal financial crisis, manycorporates defaulted, thoughmore in local markets than ininternational debt markets,which tend to have more strin-gent legal covenants.

As global recovery takes hold,default rates should ebb.

ING forecasts the emergingcorporate debt default rate beingcut to 0.5 percent by June, lessthan a third of the 1.6 percentrate in December.

This rising credit quality is

attracting an increasing numberof emerging market investors,and crossover investors who arelooking for yield and don't mindthe asset class.

Emerging corporate debt onJPMorgan's CEMBI index isyielding around 285 basis pointsmore than U.S. Treasuries.

Prudential InvestmentManagement has $12.5 billionunder management in emergingmarket debt, but its managerstold a briefing this week that itsaw those levels increasing dueto expansion in corporate debt.

Where investors are frettingabout possible restructuring ofeuro zone debt, for instance,Turkey's financial institutions areconsidered to have come throughthe global crisis in good shape.

Turkish bank Isbank this weekissued a 5-year dollar bondwhich is trading at a lower yieldthan a recent issue from eurozone peripheral country Spain,although Isbank has a lowercredit rating. Some investors arestarting to become more cau-tious, however, given the highlevel of issuance and tighteningyield spreads.

Any threat to the global recov-ery or a worsening of the eurozone debt crisis could derailappetite for risky corporatedebt. "Valuations are at a pre-mium over developed mar-kets," Esther Chan, emergingmarket corporate bond man-ager at Aberdeen AssetManagement, told investorsthis week.-Reuters

Investors seen rushing to emerging corporate debt

LONDON: As protests esca-late in Egypt and elsewhere,Western governments are awk-wardly trapped between strate-gic alliances, their own rheto-ric on democracy and rightsand domestic political sympa-thy for those demonstrating.

Police and demonstratorsfought running battles in thestreets ofCairo on Friday on afourth day of unprecedentedprotests by tens of thousandsdemanding an end to PresidentHosni Mubarak's three decadesof rule.

Hundreds have been arrestedfollowing mass demonstrationsinspired by events in nearbyTunisia, where President BenAli fled into exile earlier thismonth after social media-fuelled protests forced himfrom power.

Yemen's government --another key U.S. regional ally-- has also faced mountingprotests as activists across theMiddle East and elsewheregain inspiration from eachother.

Washington and others havelong quietly relied on some-times repressive regionalrulers, seeing them as a bul-wark against Islamic extrem-

ism. Now they face few goodoptions.

"They haven't managed thisbalancing act very well andnow they are caught in themiddle," said RosemaryHollis, professor of MiddleEast policy studies at London'sCity University.

"They have maintained thispolite fiction that they are infavour of democracy and open-ness but in reality they havebeen happy to allow regimes toavoid reforms."

Hollis says the strong per-formance of Islamists Hamasin 2006 Palestinian electionsin the Gaza Strip scared manypolicymakers and deterredthem from pushing for genuinedemocratic reform elsewherein the region.

U.S. officials includingPresident Barack Obama havecalled for restraint, whileSecretary of State HillaryClinton urged Cairo to engagethe Egyptian people aboutreform and seize the moment isto address aspirations.

British foreign secretaryWilliam Hague said Egypt'sauthorities should not "sup-press people's right to freedomof expression", but again

seemed keen to held back fromtaking sides.

If Western capitals voice out-right support for the demon-strators as they did duringprotests in Iran in 2009, theyrisk alienating old friends andfurther emboldening those onthe streets.

If security forces crack downbrutally, Western leaders willfear the accusation of complic-ity in rights abuses.

But if more leaders are oust-ed, a tide of unrest could bringIslamistgovernments to powerand hit regional stability.

DIFFICULT CHOICES

"It's going to be very diffi-cult for the U.S. to tack awayfrom Mubarak, even if they'recareful not to offer supportfor a crackdown," said IanBremmer, president of politi-cal risk consultancy EurasiaGroup.

Egypt is also seen as a keyally against Iran, central tolimiting weapon-smuggling toPalestinian Hamas militants inthe Gaza Strip. The SuezCanal remains crucial toEurope's imports of oil andcheap Asian goods.

"The least bad option may beto stick with nurse, for fear of

finding something worse -- butat the same time try to nudgein the direction of political andeconomic reform," said NigelInkster, a former Deputy Chiefof Britain's Secret IntelligenceService MI6 and now head oftransnational threats and polit-ical risk at London'sInternational Institute forStrategic Studies.

"Ultimately, the U.S. andEuropean powers can do littlemore than wait upon eventsand try to ensure they do notunduly antagonise whoevercomes out on the winningside."

Western leaders will also bekeeping a careful eye on theirown public opinion. Newsorganisations and a growingnumber of politically activeyoung people watch theTunisian and Egyptian protestsclosely on sites such asTwitter, and would be verycritical of perceived Westernacquiescence in bloodshed.

"Part of the political strategyin events like this has alwaysbeen about influencingWestern public and mediaopinion and therefore to anextent government policy,"said Mark Hanson, a former

new media strategist forBritain's Labour Party andLondon-based social mediaconsultant.

"These protesters are doingthat very well."

"UNTOUCHABLE COM-

PENSATION"

Leaked classified US diplo-matic cables released byWikiLeaks on Friday showeddiplomats continuing to pressMubarak and his governmenttoward democratic reform, thereduction of censorship andthe easing of a state of emer-gency.

But they also make it clearU.S. financial aid to Mubarak'sgovernment -- particularly tothe military who may prove adeciding factor if protests con-tinue to rise -- is a requirementfor good relations.

"President Mubarak and mil-itary leaders view our militaryassistance program as a cor-nerstone of our mil-mil rela-tionship and consider the $1.3billion in annual FMF (foreignmilitary funding) as untouch-able compensation for makingpeace with Israel," says aFebuary 2010 cable aimed atbriefing US Chairman of theJoint Chiefs Admiral Mike

Mullen for a visit.Egypt's army could decide

Mubarak's fate and act as king-makers if they choose not toback him, deciding whichother political forces -- rang-ing from the MuslimBrotherhood to former UNnuclear chief-turned-politicaldissident Mohamed El Baradeior Mubarak's son Gamal --might gain influence.

Gamal, 47, is seen havingallies in government and busi-ness as well as in the West butless clout with the army. BothGamal and his father deny heis being groomed for succes-sion.

"Gamal is the sort of personthey love somewhere likeDavos," saidCity University'sHollis, referring to the WorldEconomic Forum of businessand political leaders takingplace in Switzerland.

"But his last name isMubarak and that damns himon the streets. It's really thearmy that will decide. Thearmy elite is very close toWashington but you have toask how much anti-American -- and anti-Israeli -- sentimentthere might be in the lowerranks." -Reuters

Egypt protests leave West in awkward position

DAVOS: Germany's Finance Minister Wolfgang Schaeuble attends a session at the World

Economic Forum.-Reuters

Sunday, January 30, 2011 7

NEW YORK: Pfizer Inc's lossthis November of exclusive USrights to its best-selling Lipitorcholesterol treatment is one ofthe most anticipated events inthe drug industry's history, butthe initial blow to Pfizer maybe less severe than manyinvestors might expect.

Pfizer's ability to securepatents for Lipitor, which is theworld's biggest-selling drug,could allow it to retain morerevenue than is often the casewhen generic competitionarrives for a brand medicine.

One boost would come ifIndia's Ranbaxy LaboratoriesLtd, which has been long slatedas the first to sell a genericLipitor, is forced to delay itslaunch as it tries to resolve reg-ulatory issues.

Another scenario outlined byanalysts is that only a few com-panies could be marketinggeneric Lipitor within the firstyear of its launch because ofPfizer's patents.

The limited competitioncould help Pfizer retain moresales in part through a genericversion for which it willreceive royalties. With a drugLipitor's size -- set for more

than $5 billion in the US salesfor 2010 -- that is significant.

Pfizer could hang onto $1billion in Lipitor sales duringthe first year after genericsarrive, according to LeerinkSwann analyst SeamusFernandez.

"This may be a longer oppor-tunity than people are model-ing currently," Fernandez said.

Pfizer still will endure a hugehit when Lipitor goes generic,and eventually is likely to seemost Lipitor US sales evapo-rate. And no one is suggestingthe initial softer blow is reasonalone to invest in the drugmak-er, whose shares have strug-gled for years and which spentabout $67 billion to acquireWyeth to help cope with theLipitorloss.

But the situation could leavethe world's largest drugmakerwith stronger earnings andcash flow next year than someinvestors expect, a bonus thatcould soothe shareholders untilsome ofPfizer's experimentaldrugs come to market.

"It's a highly profitable prod-uct and therefore you're goingto generate excess cash flowsthan you normally would

have," said David Heupel, aportfolio manager withThrivent InvestmentManagement. "It's all gravy.The perception is 'Poof!' it goesaway when the patent expires."

Globally, Lipitor sales areexpected to still be $4 billion in2012, down from nearly $11billion in 2010, while falling to$2.4 billion in 2015, accordingto Cowen & Co. Pfizer mayhang onto sales in other geog-raphies such as emerging mar-kets.ROAD TO GENERIC LIPI-

TORThe expectation of a Nov. 30,

2011 US launch for genericLipitorhas been set since June2008, when Pfizer andRanbaxy announced they hadended years of court fights andsettled patent infringement liti-gation.

As the first to seek a generic,Ranbaxy is expected to have180 days as the lone seller ofgeneric Lipitor, whose chemi-cal name is atorvastatin. Suchexclusivity periods are grantedunder US law as an incentive tochallenge patents and can belucrative for generic drugmak-ers.-Reuters

Pfizer post-Lipitortwists could

cushion blow

LONDON/ NEW YORK:Four large US and Europeandrugmakers unveiled cautious2011 forecasts, as higher costsfrom US health reforms willfurther hurt an industry grap-pling with patent expirationsand pressure to curb prices.

The projections fromNovartis, AstraZeneca, Eli Lillyand Bristol-Myers Squibbechoed disappointing outlooksearlier in the week from diversi-fied healthcare companiesJohnson & Johnson and AbbottLaboratories.

Deutsche Bank analystBarbara Ryan said drugmakersare being cautious with their2011 forecasts because increas-ing costs of UShealthcarereform are not tax deductible,hitting their bottom lines thatmuch harder.

Astra reckoned the impact ofUS healthcare reform on saleswould be close to $700 millionin 2011. Eli Lilly said theimpact would lower 2011 rev-enue by $400 million to $500million, while Bristol cited anoverall hit of about $500 mil-lion in lost sales and fees.

"The higher taxes are creatingtougher sledding," Ryan said.

Novartis shares dropped morethan 2 percent on Thursday asthe Swiss drugmaker missedforecasts with a 10 percent dropin fourth-quarter core earningsper share and said it expected2011 sales to be lower.

AstraZeneca, which alsoannounced a $4 billion sharebuyback, andLilly reportedabove-forecast fourth-quarter

earnings, and their shares edgedhigher.

Bristol shares rose 1.5 percenteven as its profit fell short ofanalystviews, as it affirmed afloor for its 2013 earnings.Analysts said the forecast, eventhough it represents a declinefrom 2011, was reassuringgiven the expected onslaughtfrom generics expected in 2013to its top-selling Plavix blood-clot preventer.

Amit Roy, an analyst atNomura in London, said hesees pressure increasing as newproducts being launched turnout to be little better than estab-lished or generic competitors.

"We see less commercialpotential for many of the drugsbeing launched now," Roy said."They are not that differentiatedfrom what is already out there."

Figures from both Astra andNovartis were dampened com-pared with 2010, when profitswere boosted by windfall salesof H1N1 flu vaccines.

"If you look at what we're fac-ing in 2011, we have moreheadwinds than we did in2010," Novartis ChiefExecutive Joe Jimenez said."We don't have the benefit ofH1N1 and we've got more costcontainment coming from theUS as some of the healthcarereform costs kick in."

Lilly's better-than-expectedfourth-quarter sales and earn-ings were bolstered by favor-able taxes and strong sales of itsCymbaltadepression medicine.Its US rival Bristol forecastroughly flat earnings this year,

instead of the 3 percent growthWall Street expected for thedrugmaker.

Pfizer, Merck, and Roche aredue to report results next week.

PRICING PRESSUREAstra will face pricing pres-

sure this year from key com-petitor brands losing exclusivi-ty, such as Pfizer's Lipitor,which competes in the statinmarket with its blockbusterCrestor.

Sales of its Crestor choles-terol-lowering drug rose 24 per-cent in 2010 to $5.69 billion.

AstraZeneca Chief FinancialOfficer Simon Lowth saidrecent setbacks for several ofthe company's experimentaldrugs would likely put 2014sales in the middle of its $28billion-$34 billion forecast,rather than at the top end as ithad previously hoped.

Novartis said the initialdemand for multiple sclerosispill Gilenya was in line with itsexpectations, recording sales of$13 million since its launch inOctober.

The group also said its newestproducts, such as its genericversion of Sanofi-Aventis'blood thinner Lovenox andcancer drug Tasigna, whichNovartis is hoping will replaceolder blockbuster Glivec, per-formed well.

Lilly faces the US patentexpiry of its top-sellingZyprexaschizophrenia medicinelater this year, while its No. 2product, anti-depressantCymbalta, faces generics inmid-2013.-Reuters

Drugmakers see2011 pain fromreform, prices

India's

Cadila

Healthcare,

Bayer unit

to form JVMUMBAI: India's CadilaHealthcare and BayerHealthCare, unit of Bayer AG,have agreed to set up a jointventure to market productslocally, including women'shealthcare, metabolic disordersand oncology, the two firmssaid in a statement on Friday.

The equal joint venturenamed Bayer Zydus Pharmawould sourceBayer's existingproducts in India while CadilaHealthcare would contributeits healthcare drugs and diag-nostic imaging and other prod-ucts, they said.

The financial details of thedeal were not disclosed.

The venture would employabout 600 persons and wouldalso focus on sales and market-ing of future patented pipelineof pharmaceutical products.

"We expect to leverage thestrength of Bayer ZydusPharma such as the optimisedproduct portfolio and the dis-tribution capabilities toenhance the launch of newproducts and the sales of exist-ing brands," Dr. JorgReinhardt, chief executive offi-cer of BayerHealthCare AGsaid in a statement.

The joint venture would helpCadila leverage on strengthsand explore the possibility ofcreating a common platformand build a pool of expertise,said Pankaj Patel, chairmanand managing director ofCadila Healthcare in a state-ment.

At 1:44 p.m., Cadila shareswere trading at 813.05 rupees,down 1.14 percent in a weakMumbai market, which wasdown 1.6 percent.-Reuters

"Surely, there will be difficult days to come, but the UnitedStates will continue to stand up for the rights of the Egyptian peo-ple and work with their government in pursuit of a future that ismore just, more free and more hopeful," Obama said he told thelongtime leader in a phone call from the White House. -Agencies

Continued from page 8No #1

He expressed these views while addressing to a group of 45Foreign Services attaches / advisers based in Islamabad. Thegroup visited the Parliament House here on Saturday.

He briefed the group about the working and performance of theSenate and the role played by it in policy formulation.

He also informed the guests about the composition and electoralprocess of the Upper House.He said that provinces have been given equal representation in

the Senate which helps to evolve harmony and also helpful in thebalanced growth of the country.

He also dilated upon the powers and functions of the Senate andits Committees and said that Committees system in the Senate isvery vibrant and keeps a constant check on the working of theministries and the departments.

He also apprized the delegation of the working of the SenateStanding Committee on Defense and Defense Production and saidthat the Committee has played active role in scrutinizing thedefense spending and taking up other important matters related todefense of the country.

Answering various questions, Gen Qazi said that floods of lastsummer have exacerbated the economic challenges of the countrywhich directly affected all segments of the economy includingdefense.

He said that Senate is playing efficient role in redressing thegrievances of smaller provinces besides providing equal opportu-nities to all the federating units including Fata in raising theirvoice in the Parliament.

In response to another questions he said that legislation past bythe Senate has input form all the Provinces of the country includ-ing Fata and the Federal Capital Islamabad.

Earlier Special Secretary Senate, IftiKharullah Babar welcomedthe delegation to the Senate.-NNI

Continued from page 1No #2

of their enterprises therefore their struggle must be a joint one.-Agencies

Continued from page 8No #3

Umar Gul bowled really well and took it away from us."The six-match series is locked at 1-1 after New Zealand won the

first match in Wellington by nine wickets last week and the sec-ond in Queenstown was washed out on Wednesday.

Pakistan's innings had been held together by Hafeez (115), whoalso shared a 94-run partnership with Misbah-ul-haq (35) and 52runs with Umar Akmal (44). "I was just concentrating on thegame. I missed a couple of opportunities in the test series so I waslooking forward to scoring runs in this match," Hafeez said.

"We were all looking forward to winning this game… and it wasa good team effort." Afridi scored a blistering 65, which includedfive sixes and five boundaries, as he and Umar blasted a destruc-tive 69-runs off 26 balls as Pakistan made full use of the finalpowerplay, scoring 126 runs in the last 10 overs.

Afridi's half century was brought up on his 19th delivery,equalling the fastest one-day international half century scored inNew Zealand, which is also held by Brendon McCullum.

"I think you have to give credit to Shahid Afridi," Taylor added."He batted very well. The boundaries here are very small but he

cleared them with some massive sixes." -Agencies

Continued from page 8No #4

He pointed out inflationary pressures that were already high atthe beginning of FY11, and have remained at elevated levels dur-ing first half of FY11.

Continued from page 1No #5

On this assurance convener of the sub-committee Zahid Khanpostponed the meeting till Friday next with the direction that fundshould be released positively for the Khyber-Pakhtunkhwa proj-ects.

The meeting was attended by Senator Ismail Buledi, SecretaryPlanning Commission Sohail Ahmed, Acting Chairman NHAMuhammad Junaid and senior officials of Ministry ofCommunications, Finance and Planning Commission. -APP

Continued from page 1No #6

0.92 per cent as it went down from 284.42 points in the previ-ous week to 281.79 points in the week under review.

As compared to the corresponding week of last year, the SPI forthe combined group in the week under review witnessed increaseof 16.86 per cent.

As compared to the last week, the SPI for the income groupsranging from Rs.3001 5000, Rs.5001 12000 and above Rs.12000decreased by 0.94 percent, 0.95 percent and 0.80 percent respec-tively.

During the week under review average prices of 13 items regis-tered decrease, 17 increase while prices of 23 items remainedunchanged. -APP

Continued from page 1No #7

proper investigation from driver who killed a citizen. He men-tioned that USA is demanding of release Davis but it is not good.

Rana Sana said that facts will be presented before the court afterinvestigation. He said that USA national killed the two Pakistani;therefore he would face the case in Pakistan. -Agencies

Continued from page 1No #8

same area, the statement released by the embassy said."When detained, the US diplomat identified himself to police as

a diplomat and repeatedly requested immunity under the ViennaConvention on Diplomatic Relations.

Local police and senior authorities failed to observe their legalobligation to verify his status with either the US ConsulateGeneral in Lahore or the US Embassy in Islamabad.

Furthermore, the diplomat was formally arrested and remandedinto custody, which is a violation of international norms and theVienna Convention, to which Pakistan is a signatory", the state-ment said.

"We regret that this incident resulted in loss of life.We greatly value the cooperation and partnership between

Pakistan and the United States, which is vital to the interests ofboth countries.

Continued from page 1No #9

next annual Davos meeting, saying: "If we come back and we're still talking about it, then I thinkthat would be hopeless."

"This has to be the year in which it happens; we cannot go on after a decade with another year.-Agencies

Continued from page 1No #10

However, the PPP government has neither accused nor implicated the executive head of the PunjabGovernment on his "Shahadat", he added.

Kaira said that the matter was in the court of law now and everybody should facilitate the legalprocess in order to punish the culprit in accordance with the law of the land. -Agencies

Continued from page 1No #11

In December 2010, year-on-year CPI inflation was 15.5 per centwhile its average for H1-FY11 stands at 14.6 per cent, he said andadded that not only did the contributing factors of inflation con-tinued to prevail in H1-FY11, the economy also experienced anadditional shock in the form of unprecedented devastating floods.

SBP Governor said that the revised projection of average CPIinflation for FY11 falls in the range of 15 to 16 percent, along withhigh probability of double digit inflation in FY12.

"To bring inflation under better control, the critical measureswould be fiscal consolidation and reduction in fiscal deficit andgovernment borrowings from SBP," he said and added that thesemeasures would support SBP's efforts to contain monetary expan-sion and thus ease aggregate demand pressures.

SBP Governor stressed upon the federal government to spell outa clear and coherent strategy to limit fiscal slippages.

"This is all the more important given that the proposed reformsin the GST along with other tax measures have been postponed,"said and added that in January 2011, the government also reversedthe decision of increasing retail prices of petroleum products.

"Apart from adversely affecting revenue collections andincreasing expenditures on subsidies, these actions have made itdifficult to raise external resources for budget financing," headded.

The US Embassy is committed to working closely with the Pakistani government to secure theimmediate release of the diplomat, as required under Pakistani and international law", the statementsaid.

It must be mentioned here that a US consular employee was booked for murder following a com-plaint from the brother of one of the dead men after he shot and killed two men in Lahore who wereapparently trying to rob him.

Raymond Davis - had been arrested under Section 302 of the Pakistan Penal Code, which relatesto murder and was handed over to police on 6 days remand.

Meanwhile, National Assembly Standing Committee on Interior has directed Secretary Ministry ofForeign Affairs to ask the US Consulate Lahore to send their representative to attend the meetingwhich will take up the issue of killing of three persons by an employee of the US consulate Lahore.

According to official documents available with APP the meeting will be held on Jan 31 in theParliament House.

MNA Abdul Qadir Chairman NA Stranding Committee on Interior will chair the meeting.Interior minister A Rehman Malik, Secretary and other officials concerned of Interior Ministry also

have also been asked to attend the meeting, according to the document.NA Interior Committee also asked Inspector General Police Punjab to attend meeting with all con-

cerned and ensured the presence of heirs of deceased killing in Lahore by the firing of official of USConsulate.

The Committee has also directed the DCO and CCPO Lahore to attend the meeting and ensure thepresence of heirs of deceased killed in Lahore by the firing of employee of Us Consulate.

The Standing Committee on Interior has also sought report on the killing of three persons by anemployee of US consulate at Lahore.

The committee directed the authorities concerned to provide a comprehensive report on thekillings by Raymond David, an employee of US consulate at Lahore. -Agencies

Nestle CEO Paul Bulcke delivers a speech during a press conference at the Swiss Federal Institute ofTechnology (EPFL).-Reuters

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CAIRO: Egypt's cabinet offi-cially resigns during a meetingSaturday following PresidentHosni Mubarak's demand earlyin the day.

In a speech early Saturday,Mubarak said he had asked thegovernment to step down andthe new cabinet would bringmore democracy to the country,in response to nationwideprotests, a Chinese newsagency reported, but Mubarakwho has been in office as pres-ident for 30 years, refused tostep down.

Also on Saturday, hundredsof protestors resumed theirgathering in Tahrir Square indowntown Cairo, where anti-government demonstrationsstarted peacefully on Tuesdayafternoon before turning vio-lent in the following days.

Witnesses said several tankswere parked near the square,but no intervention in theprotest was seen so far.

At least several deaths werereported during recent clashesacross the country, but no con-firmation had been available sofar.

The riots, which continueunabated, have left 35 reporteddead and over 1000 wounded.Some sources are saying that

the death toll could be as highas 74 once confusion on thestreets clears up.

The protests are the mostserious challenge to Mubarak's30-year authoritarian rule. Theembattled president defendedthe security forces' crackdownon protesters, but said that hewill press ahead with social,economic and political reformsin the country.

The government's attempts tosuppress demonstrationsappeared to be swiftly erodingsupport from the United States- suddenly forced to choosebetween its most importantArab ally and a democraticuprising demanding his ouster.

Washington threatened toreduce a $1.5 billion programof foreign aid if Mubarak esca-lated the use of force.

Al Jazeera news reported thatEgyptian pro-democracyleader, Mohamed ElBaradeicalled on Mubarak to stepdown and set a framework fortransition of power as the onlyway to end street unrests thathave rocked Egypt.

The former head of theUnited Nations nuclear watch-dog told Al-Jazeera in a phoneinterview that Mubarak'sspeech on Friday, in which he

said he would form a new gov-ernment, was "disappointing"for Egyptians.

Countries across the worldhave weighed in on the crisis inEgypt and have expressed theirviews on how Mubarak shouldhandle the situation.

Iran voiced support for theprotesters, calling the massdemonstrations a "wave ofIslamic awakening."

"The protests of the Muslimpeople of Egypt is a movetowards gaining justice andrealizing their national and reli-gious will," Foreign Ministryspokesman RaminMehmanparast said.

Saudi Arabia's King Abdullahexpressed support for Mubarakon Saturday, the official SaudiPress Agency said.

"No Arab or Muslim can tol-erate any meddling in the secu-rity and stability of Arab andMuslim Egypt by those whoinfiltrated the people in thename of freedom of expression,exploiting it to inject theirdestructive hatred," SPA quotedKing Abdullah as saying.

United States PresidentBarack Obama called onMubarak on Friday to expandrights within the country.

See # 1 Page 7

Mubaraksacks cabinet,

names new PM

Protest continues; death toll passes 100

Saudi stock prices down 6.43 per cent

KABUL: Afghan Minister of Minesand Industries Wahidullah Shahranion Saturday said that government isgoing to set up a special battalion incoming months to ensure security formine industry and protect under-ground resources in the war-torncountry.

"The government has taken meas-ures to ensure security for mineralresources and mines industries and inthis regard will establish a battalionin the coming months," Shahrani tolda joint press conference with U.S.Deputy under Secretary of DefensePaul A. Brinkley here.

The initial steps to form such spe-cial force have already been taken,the Afghan minister further said.

Survey conducted by US last yearhad located 28 huge mineral sites inthe war-torn Afghanistan.

"There are some specific datawith some projections of potentialwealth," Brinkley who is alsoDirector of US Task Force forBusiness and StabilityOperations, said at the same pressconference.

"I want to emphasize that the min-eral wealth is for the people ofAfghanistan and it has potential tocreate two key changes for the peo-ple of Afghanistan -- the ability tofinance your own security and abilityto push ahead development projects,"Brinkley further said.

Exploration of natural resources

and its utilization would enableAfghans to be no longer dependenton international community andrather help them to stand on theirfeet, he added.

"Afghan Ministry for Mines andIndustries said in 2010 that the land-locked country's mineral worth ismore than 3 trillion U.S. dollars.

The government of Afghanistanhas invited national and internation-al companies to invest in the fieldsof mines and so far China'sMetallurgical Group Corporationhas invested in copper mine whilesome more firms have shown inter-est in investing in the field of miningin the militancy-plaguedAfghanistan.-NNI

New Afghan forceto safeguard mines

RAWALPINDI: Scores of Railwayworkers held a protest demonstration infront of the Rawalpindi Railway Stationagainst the proposed privatization ofPakistan Railways and warned the gov-ernment that a unified anti-privatisationmovement would be launched withworkers of other state enterprises facingprivatization including OGDCL,Pakistan Post and IESCO.

Trade union leaders of the latterorganizations were also present at thedemonstration along with activists ofthe Worker's Party Pakistan, LabourParty Pakistan, Socialist MovementPakistan, National Students Federationand Anti-Privatisation Alliance.

Speaking on the occasion, RWU gen-eral secretary Zulfiqar Khan said thatRailways was the most precious eco-nomic asset of the government ofPakistan for decades and only in recentyears has it been deliberately under-mined by a combination of administra-tive officers and the international finan-cial institutions (IFIs).

He said that Railways serves poorPakistanis in areas where no otherforms of transportation are availableand therefore should maintain its statusas a natural monopoly.

He also asserted that the creation ofthe National Logistics Cell (NLC) inthe 1980s destroyed Railways commer-

cial viability because most of the freightgoods transport has been captured bythe NLC.

Azad Qadri of the SMP, Zahoor Khanof the Worker's Party and Nisar Shah ofthe Labour Party said that the process ofprivatization is one of the biggestthreats facing Pakistan and its peopleyet most media outlets and mainstreampolitical parties are marginalizing theissue.

They said that if the process continuesunabated all of Pakistan's assets arelikely to be sold off while workers andordinary consumers will be left totallyat the whims of private profiteers whoare least concerned with the welfare ofPakistan's people and seek only toextract as much capital from the coun-try as possible.

Speaking on the occasion AliaAmirali of the NSF said that students,workers and peasants are the three pil-lars of social transformation in anycountry and in Pakistan these three sec-tors must come together if the forces ofreaction are to be defeated and the com-bination of imperialism and the militaryestablishment is to be repelled by gen-uine democratic forces.

She said that students are facing pri-vatization of educational institutionsjust as workers are facing privatization

See # 3 Page 7

PR workers standagainst selling-off

LONDON: The UKC o m m o n w e a l t hParliamentary Associationdelegation understanding ofthe depths of the challengesfacing Pakistan said that theyare optimistic about its future.

The delegation completedits visit to Pakistan the otherday. This completes a 6 dayvisit in which the delegationvisited Islamabad, Karachi,Peshawar and Lahore. Thedelegation met with a rangeof political leaders, parlia-mentarians and representa-tives from civil society dur-ing their stay in Pakistan.

The delegation left with agreater understanding of thedepths of the challenges fac-ing Pakistan, though mem-

bers also leave optimisticabout its future, says a pressstatement issued by theBritish High Commission inIslamabad.

Roger Gale MP, leader ofthe delegation said: "Over thepast 6 days we have had theopportunity to talk to manyimpressive people, both fromGovernment and civil society.Visiting 3 of the provinces aswell as the capital has shownus that although there aresome very difficult chal-lenges facing Pakistan, suchas economic reform, law andorder, and governance, thereis still reason to be optimisticabout the future.

The devolution of powerfrom the Federal to the

Provincial level has createdan opportunity for local peo-ple to reshape their politics.

Having talked to parliamen-tarians at both the nationaland local level it is clear thatdemocracy is taking hold inPakistan.

The 'Declaration ofFriendship' we signed withmembers of the NationalAssembly yesterday willstrengthen the links betweenour parliaments to reinforceits role in ensuring democra-cy takes root", he said.

He said If the future ofPakis tan rests with i tsyoung people, then thesestudents are a testament towhat Pakis tan canachieve. -Agencies

UK MPs upbeatover Pak future

EGYPT: An Egyptian man looks out onto a burning government building from a bridge in central in Cairo. -Reuters

Fake case

KP MNAarrested

SWABI: Sardar Ali Khan, amember of Khyber-Pakhtunkhwa Assembly, wasarrested on Saturday after hispre-arrest bail was cancelledby a local court in fake degreecase.

Khan was elected fromKhyber Pakhtunkhwa con-stituency PF-34 as an inde-pendent candidate.

A case was filed against theMPA for submitting fake edu-cation documents to contestthe election. On this, heobtained pre-arrest bail fromthe court.

Additional Session Judgedid not extend Khan's bail,after which he was arrestedfrom the courtroom.

Meanwhile, a fresh bailapplication was filed in theSwabi court. -Agencies

Hafeez sizzlesas Pakistancrush Kiwis

WELLINGTON: MohammadHafeez scored his first one-daycentury and Shahid Afridiblasted the equal-fastest halfcentury in New Zealand asPakistan leveled their one-dayseries against the hosts follow-ing a 43-run victory atLancaster Park on Saturday.

New Zealand never reallychallenged Pakistan's imposing293 for seven, with MartinGuptill (39), Jamie How (24)Scott Styris (46) and KaneWilliamson (42) all gettingstarts but leaving too manyruns for the lower order tooverhaul the total.

Skipper Afridi also cleverlyrotated his bowlers, whoexpertly changed their pace andangles, bowled to their fieldsand took wickets just as NewZealand's batsmen appeared setto push on.

Tim Southee (13 not out) hit asix off the last ball to drag NewZealand to 250 for nine.Hamish Bennett was withSouthee on four.

"We got a few starts and did-n't go on," New Zealand cap-tain Ross Taylor said in a tele-vised interview.

"All credit to them I think See # 4 Page 7