LATEST NEWS UPDATE: 01.06.2012

US hopes to resolve Pakistan land routes issue soon

WASHINGTON: The United States continues to work with Islamabad towards restoration of Pakistani routes for Nato supplies into Afghanistan and hopes to resolve the issue soon, a State Department spokesman said.
“We do remain engaged with Pakistan on reopening these ground lines of communication. We want to and think that opening them would obviously be an important demonstration of Pakistan’s commitment to the international effort to ensure a prosperous, peaceful Afghanistan. So we are working diligently trying to make progress,” Deputy Spokesman at the State Department Mark Toner said.
He spoke amid media reports that a senior US official may next week join the American team in Islamabad that is negotiating a resolution to the six-month old issue with their Pakistani counterparts.
Pakistan shut down the key supply routes in November 2011, after 24 of its soldiers deployed on two posts along the Afghan border, were killed in Nato cross-border warplane strikes.
Questioned if there is a timeline on these negotiations for reopening the overland routes into landlocked Afghanistan, or the talks can go on indefinitely, the spokesman responded: “I mean, we certainly hope to reach a resolution very soon.”
Toner said that Washington is discussing a broad range of issues with Islamabad.
“We are continuing to meet in Islamabad to talk over these issues as we are discussing a broad range of issues with Pakistan. But you are right. It’s slow going, but we are making progress,” he remarked.
He said that the United States wants Pakistan to be a stable, prosperous democracy that’s helping its neighbors also become stable democracies.
Regarding sentencing of Shakil Afridi, aPakistani who worked for CIA but has been imprisoned for 33 years on charges of aiding a militant organisation, the spokesman said the United States is seeking clarity on the basis of his conviction.
The spokesman said the United States is in touch with Pakistani officials both in Washington and Islamabad to clarify the issue.
Toner spoke after reports, citing a tribal court judgment document, said the doctor was jailed not on account of his work for CIA against al Qaeda but for his links with a banned militant organization, Lashkar-i-Islam.
‘No, we are actually seeking clarity on those latest reports.
“I am aware of what you are talking about, so we have raised those with the Government of Pakistan. It seems to us to contrast previous reports about his conviction    and the basis of it, so we are trying to get clarity,” Toner replied, when asked if Washington was clear about the charges, which became basis for Afridi’s sentencing by a Pakistani tribal court.
The spokesman said he was unsure whether family of Dr Afridi, who worked for CIA in running a sham vaccination campaign to get DNA samples of al Qaeda chief, has asked for US assistance.
“I am actually not sure that they have actually approached us requesting assistance. I mean, other than raising it very publicly, as we have done via Secretary Clinton, and raising it consistently in our meetings with Pakistani Government officials, it’s unclear to me what else we could do for his case,” Toner said in answer to a question about a reported statement by    Afridi’s brother that the doctor was not being helped.
“But we certainly take it very seriously. The US Secretary of State Hillary Clinton was very clear in her remarks, saying that there is not any basis for holding Dr Afrid,” he added.

IT exemption limit raised to Rs50,000

ISLAMABAD: The government is expected to announce in the federal budget-2012-13 several reliefs in income tax, federal excise duty and sales tax on Friday evening here, Geo News reported.
Besides providing relief in income tax, a uniform sales tax at 16 percent has been proposed.
Geo News has obtained a copy of the federal finance minister’s budget speech to be made this evening, which proposes that the income tax exemption limit be raised to Rs50,000 i.e. annual income of Rs4,00,000 and above would be taxable from now on. Five slabs has been suggested for the purpose of income tax, while an amount of Rs1000 per annum would be recovered from persons drawing salary of Rs35,000 on account of income tax.
Tax payer honour card has been introduced, which would entitle the taxpayers to certain facilities. Turnover tax rate is being cut to a half. The government wants to gradually eliminate the presumptive tax system in three years. Five percent tax on importers is being reduced to 3 percent, while 1 percent tax on exporters will be reduced to 0.5 percent. Withholding tax exemption limit of Rs25,000 on withdrawal of cash from banks is being raised to 50,000. Different rates of general sales tax to be done away with the imposition of a uniform 16 percent sales tax.
Sales on locally produced paper and canola ghee being declared zero rated. Sales tax on tea proposed to be reduced to 5 percent from 16 percent.
Custom duty highest rate instead of 35 will be reduced 30 percent. Besides custom duty on pencil, copy ink etc. is being abolished. Federal excise duty on cement is being reduced by Rs100 per ton. Custom duty on scrap used as fuel in cement factory will be reduced to 10 percent from 20. Custom duty on 94 items of pharmaceutical raw materials is being abolished.
Excise duty on mobile oil, base oil, lubricant is being lifted, Federal excise duty on livestock insurance is being done away, while federal excise duty of asset management companies also being abolished.
Electricity for steel mills would be costlier, as sales tax on per unit electricity to this sector has been proposed to be raised to Rs8 from Rs6.

FDI fell by 48.4 percent in FY12

ISLAMABAD: The Foreign Direct Investment (FDI) in Pakistan stood at $666.7 million during July-April (2011-12) as against $1,292.9 million last year.
According to Economic Survey of Pakistan 2011-12, FDI showed decline of 48.4 percent.
Oil and Gas Exploration remained the major sector for foreign investors, which stood at 69.8 percent.
The pre-budget document, however maintains that Pakistan will certainly attract foreign direct investment with the resolution of energy shortage and improvement in the law and order situation.
It added that the Board of Investment (BoI) is making efforts to provide increasing investment friendly environment to investors.
The Survey added that efforts are being made to facilitate foreign investors with improved infrastructure and a better working environment so that the favourable business climate may induce investors to initiate new investment projects in the country. (APP)

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Business News:

  

Fri, 1 Jun 2012
-	Oil slides on eurozone, US demand worries SINGAPORE: Oil prices fell to a fresh seven-month low in Asian trade Friday as eurozone debt worries and signs of
-	Foreign direct invsetment fell by 48.4 percent in FY12 ISLAMABAD: The Foreign Direct Investment (FDI) in Pakistan stood at $666.7 million during July-April (2011-12) as
-	Pakistan: Rupee hits historic low vs US dollar KARACHI: The rupee sank to its lowest level against the dollar Thursday amid panic in the country s fragile forex
-	KSE: Crashing rupee knocks local stocks down ISLAMABAD: Stocks at the main market fell on Thursday with investors concerned about continued pressure on the rupee
-	Pakistan pulls curtain on Economic Survey 2011-12 ISLAMABAD: Federal Minister for Finance, Dr. Abdul Hafeez Shaikh on the eve of historic "election budget" for the
-	Pakistan facing no risks in repaying IMF: SBP chief KARACHI: Governor, State Bank of Pakistan SBP Yaseen Anwar says Pakistan will "not face any risk in making repayment
-	Price of petroleum products decreased ISLAMABAD: Government of Pakistan has decreased the price of petroleum products following a fall in the international
-	PPL wins Iraq oil exploration deal BAGHDAD: Iraq on Thursday closed a landmark auction of energy exploration blocks with just three contracts awarded
-	Economic Survey 2011-12 to be launched today Federal
-	Iraq wraps up energy auction after slow first day BAGHDAD: Iraq will hold the second and final day of an auction for a dozen oil and gas exploration blocks on Thurs
-	Asian markets, euro hit by Spain fears HONG KONG: Asian markets tumbled for a second day and the euro sank to new lows as Spain s banking crisis threaten
-	Euro under pressure on Spain worries TOKYO: The euro plumbed two-year lows in Asia on Thursday as nervous traders ditched the single currency for safer
-	Oil stays below $90 as Spain worries intensify SINGAPORE: Oil extended losses in Asian trade Thursday, with prices hitting multi-month lows as Spain s banking world
-	Bears rule supreme at Islamabad Stock Exchange ISLAMABAD: Islamabad Stock Exchange (ISE-10) here on Wednesday witnessed bearish trend as the index was down by 32
-	Local gold down at Rs 47,314/10gm KARACHI: Gold slipped by 171 to close at Rs 47,314 per 10 grams in the local market Wednesday as its international

MOHAMMED SALEEM MANSOORI