Pak system neither presidential nor parliamentary: PM

ISLAMABAD: Prime Minister Syed Yousuf Raza Gilani Sunday said the prevalent system in the country is hotchpotch of systems, terming it neither parliamentary nor presidential, in response to a query by a student.Addressing the ceremony of convocation of International Islamic University, he said the constitutional reforms are being effected in the constitution, vowing to restore the 1973 constitution after introducing proper amendments in it.‘We believe in democracy and there is no restriction on media in the country,’ he added saying the government will not slap any constraint on media.“We believe in freedom and democracy.”He said if all the institutions function properly, there could not be any clash.‘It is only Education with which the problems facing the nation could be braved.’The real reason behind extremism and terrorism is lack of education, Gilani said adding the extremists are working on foreign agenda and foreign powers are employing them for their ulterior motives.The PM Gilani said the stable Afghanistan is in the interest of Pakistan; therefore, we will make efforts for stability there.

SC verdict: govt in daze to fill Rs122bn gap

ISLAMABAD: The Supreme Court’s interim order to suspend the imposition of carbon surcharge on petroleum products has put the IMF programme of $7.6 billion loan at stake because the government will have to find ways and means to fill the revenue gap of Rs122 billion during the fiscal year 2009-10. Not filling this gap would mean increasing fiscal deficit by almost 0.8 per cent of the GDP, jacking it up to 5.7% from the existing target of 4.9%, which the IMF will not allow at any cost.“It is not possible to stick to the budgetary measures for fiscal 2009-10 if carbon surcharge is not to be collected. So all budgetary targets will have to be revised,” a senior official of the finance ministry said while talking to The News on phone from abroad soon after the announcement of interim order issued by the Supreme Court on Tuesday.When contacted for comments, Minister of State for Finance and Economic Affairs, Hina Rabbani Khar said that obviously the government could not raise question on the order announced by the Supreme Court but at the same time opined that it was an interim order.She admitted that it would put the government in a difficult situation because there are few alternatives to fill this huge gap of Rs122 billion. The options are limited to cutting down on the Public Sector Development Programme (PSDP) or printing more notes, which will be inflationary, she added. Acting Secretary Finance Ayub Tarin along with OGRA high-ups will submit the government viewpoint before the apex court tomorrow (Thursday), she added. She said the expenditures for running the government increased by 3 percent in the budget 2009-10 compared to revised estimates for 2008-09.Defending the imposition of carbon surcharge, she said that the government introduced transparent mechanism and the prices of POL products might have come down next month keeping in view the declining trend in international market. Another finance ministry official was of the view that the IMF considers the fiscal deficit target as sacrosanct and any deviation from the set target might put the whole programme in jeopardy. The $7.6 billion IMF programme has envisaged 4.9 per cent fiscal deficit target for 2009-10 and the suspension of carbon surcharge will create a huge gap of Rs122 billion, which will not be possible to fill either by reducing expenditures or increasing revenues. During the budget-making exercise, the finance ministry officials has expressed apprehensions that the Supreme Court might even block the Petroleum Development Levy (PDL) because the government continued to charge this amount from the masses on the basis of an ordinance promulgated in 1961. “The double taxation such as sales tax as well as PDL was considered the most difficult issue to be defended before the Supreme Court,” said an official. He said the government by imposing fixed carbon surcharge tried to achieve two objectives: to ensure uninterrupted stream of revenue and to achieve parliament’s support. It was the view of the budget-makers that with carbon surcharge becoming part of the budget, the Supreme Court would not block the way of the government to generate Rs122 billion in the fiscal year 2009-10.

Congress sends $106 billion war-spending bill to Obama

WASHINGTON ( 2009-06-19 09:55:26 ) :US lawmakers late Thursday sent President Barack Obama a 106-billion-dollar emergency bill to fund the wars in Iraq and Afghanistan, fight swine flu, aid Pakistan and boost IMF loans to poor nations.
The Senate voted 91-5 for compromise legislation that cleared the House of Representatives by a 226-202 margin on Tuesday.
The measure will fund US efforts in both conflicts until fiscal year 2010 begins on October 1, at a time when Obama has charted a course for withdrawal from Iraq and an escalation in Afghanistan.
The new president has vowed to end the practice of using emergency spending bills to pay for the wars in Iraq and Afghanistan and instead fund US efforts there in the regular yearly appropriations process.
Among other budget items, the measure provides 79.9 billion dollars for Iraq and Afghanistan, as well as 7.7 billion dollars to combat the A(H1N1) flu virus.
The bill also includes eight billion dollars for the International Monetary Fund and a 100-billion-dollar US line of credit for the IMF to help developing countries combat the impact of the global recession.
And it comprises 400 million dollars to help build up the Pakistani security forces' ability to wage counterinsurgency warfare at a time when US lawmakers worry about the nuclear-armed ally's stability.
The measure includes one billion dollars to foster economic development and democratic governance in Afghanistan and 433 million for US diplomatic operations and facilities there.
For Pakistan, the bill includes 707 million dollars for boosting agriculture and food security, assist displaced residents, boost democratic governance, and improve education.
Another 900 million dollars would go to building a new secure US embassy and consulates in Pakistan, and 700 million more dollars for counterinsurgency funding starting September 30.
For Iraq, the bill includes 472 million dollars to continue stabilization programs, and strengthen governance and rule of law; and 486 million for diplomatic operations.
The legislation also calls on Obama to submit periodic reports detailing the progress achieved by his new strategy for Afghanistan and Pakistan.
The bill does not include the 80 million dollars Obama had sought to close the Guantanamo Bay detention facility for suspected terrorists.
The measure includes 660 million dollars in economic, humanitarian and security assistance for the West Bank and Gaza; 300 million dollars for Jordan, 310 million for Egypt, and 69 million dollars for Lebanon.
It includes 555 million dollars of Obama's 2.775 billion dollar request for security aid to Israel.
The bill provides one billion dollars for the so-called "cash for clunkers" program to stimulate the struggling auto industry, paying car buyers cash if they trade in their old gas-guzzling cars for newer more fuel-efficient models.

Zardari avoids Sharm El Sheikh meeting with Singh

ISLAMABAD, June 19: President Asif Ali Zardari has dropped his plan to attend the 15th Non-Aligned Movement summit in Egyptian resort of Sharm El Sheikh where, according to an announcement, he was to meet Indian Prime Minister Manmohan Singh. The Pakistan delegation to the summit will now be led by Prime Minister Syed Yousuf Raza Gilani. ‘Our prime minister will be attending the NAM summit,’ Foreign Office spokesman Abdul Basit said.

The plan was changed after the Yekaterinburg meeting between President Zardari and Prime Minister Singh on the sidelines of the Shanghai Cooperation Organisation (SCO) summit which, according to diplomatic sources, became ‘unpleasant’ at the outset because of Mr Singh’s ‘rude’ remarks.

Before the start of the ice-breaking meeting, the Indian premier bluntly told President Zardari in presence of reporters that his mandate was limited to telling Pakistan that it should not allow its soil to be used for terrorism against India.

The remark irked President Zardari who immediately asked the media to be escorted out of the conference room. In a press statement issued after the meeting, President Zardari’s office had announced that the two leaders would get together again in Sharm El Sheikh.

Foreign Minister Shah Mehmood Qureshi had also confirmed the Sharm El Sheikh meeting between the two leaders. Sources here claimed that the president had decided to skip the Sharm El Sheikh trip to avoid another encounter with Mr Singh.

The FO spokesman played down Mr Zardari’s decision not to attend the summit and said: ‘It was agreed that there will be another meeting of the political leadership of the two countries during NAM summit.’

The FO spokesman said Pakistan was satisfied with the outcome of the Yekaterinburg meeting between President Zardari and Prime Minister Singh and it had never expected the interaction to lead to immediate resumption of composite dialogue between the two countries.

‘From our perspective, the SCO summit in Russia provided a good opportunity for Pakistan and India to break the ice,’ he said at his briefing on Thursday, adding that Pakistan had gone to the meeting with all sincerity and seriousness.

Pakistan now appears to be pinning hopes on the secretaries’ level talks and wants them to be ‘result oriented’. ‘We are looking forward to a productive meeting between the foreign secretaries. Normal relations between our two countries, free of disputes and conflict and embedded in the principles of non-interference, equality and mutual respect, are indispensable for peace, security and prosperity in our region,’ said Mr Basit.

APP adds: The spokesman said Pakistan had suffered the most because of extremism and terrorism, adding that there had been 22 terrorist attacks in various parts of the country over the past one year, claiming 300 lives.

Answering a question about shifting of troops, the spokesman said: ‘It is incorrect that troops have been withdrawing from the eastern border for deployment on the western border.’

Clinton asks India to back Pakistan’s efforts to combat terror

WASHINGTON, June 19: Two days after Prime Minister Manmohan Singh talked tough with Pakistan President Asif Ali Zardari, US Secretary of State Hillary Clinton hoped that India and the US will both support Pakistan’s efforts as it works to take on terrorists in its own country.

The US, she told the US-India Business Council’s (USIBC) Synergies Summit here Wednesday, also welcomed a dialogue between India and Pakistan, but it was for the two countries to decide the pace, scope and character of the dialogue.

"Of course, we believe that India and Pakistan actually face a number of common challenges, and we welcome a dialogue between them," Clinton said. "As we have said before, the pace, scope and character of that dialogue is something that Indian and Pakistani leaders will decide on their own terms and in their own time."

"But as Pakistan now works to take on the challenge of terrorists in its own country, I am confident that India as well as the United States will support those efforts," she said.

Clinton said India and the US "have a common interest in creating a stable, peaceful Afghanistan, where India is already providing $1.2 billion in assistance to facilitate reconstruction efforts.

"United States is committed to the task ahead in Afghanistan, and I hope India will continue its efforts there as well," she said.

India already is a major player on the world stage, Clinton said "and we will look to cooperate with New Delhi as it shoulders the responsibilities that accompany its new position of global leadership."

Manmohan Singh and Zardari met Tuesday on the sidelines of a regional summit in the Russian city of Yekaterinburg during which the Indian leader bluntly said that Islamabad should demonstrate concrete steps to rein in anti-Indian terrorists before their conciliation talks can resume.

UN staff security increases across Pakistan

SLAMABAD, June 19: The United Nations (UN) upgraded its staff and offices security to grade three across the country.

UN sources told Geo News that families of foreign staff have been directed to leave the country and staff should restrains their activities.

UN had raised the security level to phase three in Peshawar and Islamabad after suicide attacks on Rescue 15 and PC hotel. After reviewing the situation, UN security officials have decided to implement phase three across the country. The staff has directed to limited their activities and movements as families of foreign staff have urged to leave Pakistan.

Pakistan Tops Dollar Bond Performance in Asia

Despite continued uncertainty, the world's largest dollar bond investors are continuing to maintain holdings in Pakistan. According to HSBC, Pakistani bonds have returned 35 percent this year, the best performance in Asia among dollar debt indexes compiled by London-based HSBC. ING Groep NV, Erste Sparinvest KAG and HSBC Holdings Plc, which oversee more than $800 billion in assets, are maintaining holdings of Pakistan’s dollar bonds as almost $13 billion in assistance from the International Monetary Fund and aid pledges help the country stave off default. Pakistan’s 6.875 percent dollar bond maturing in June 2017 yielded 18.62 percent yesterday, versus a record high of 26.30 percent on Nov. 3, 2008, according to data compiled by Bloomberg. The Karachi stock index is up 27 percent this year, compared with a 12 percent gain in MSCI’s emerging-market stock index. Pakistan also won promises this month for $5.3 billion in aid from more than 20 countries to help shore up its economy and combat al-Qaeda and Taliban militants.