DAILY BRIEFNEWS UPDATE: 20.01.2012

Obama wants US, Pakistan to work together

WASHINGTON: US President Barack Obama wants the United States and Pakistan to continue to work together for achieving their common goals of defeating terrorism and building a stable and peaceful Pakistan, says the White House.
A brief statement, issued by the White House on Thursday, said Mr Obama conveyed this message to Pakistan’s new Ambassador Sherry Rehman who presented her credentials to the US president on Wednesday.
The White House statement pointed out that usually it did not provide readouts of such formal meetings but it was making an exception because of the media’s interest in Ambassador Rehman’s meeting with the president.
‘The president welcomed Ambassador Rehman to Washington and expressed his desire that our two governments continue to work closely together towards our shared objectives of defeating Al Qaeda, combating violent extremism, and supporting a stable and peaceful Pakistan, Afghanistan and wider region,’ the statement said.
The brief statement covers almost all significant points of a relationship which has continued to strain since the May 2 US raid on Osama bin Laden`s compound in Abbottabad and received another major jolt on Nov 26 when Nato aircraft bombed Pakistani military posts and killed 24 soldiers.
After the attack, Pakistan ordered a parliamentary review of its relations with the United States, but Ambassador Rehman has dismissed suggestions that the review would have a negative impact on bilateral relations.
“The review will present an opportunity for both countries to reset ties on more consistent, transparent and predictable lines,” she said.

Business News  Fri, 20 Jan 2012 -Oil mixed in Asian trade SINGAPORE: Oil prices were mixed in Asian trade Friday as traders weighed news of weakening demand for petrol in t  -Euro steady amid respite in Europe debt crisis TOKYO: The euro held steady against the dollar and yen in Asia on Friday after rising in New York on hopes for pro  -SBP reschedules MPS announcement KARACHI: The central board of directors of the State Bank of Pakistan (SBP) has decided to reschedule its meetings  -Local gold zooms to Rs48,514 Gold zooms to Rs48,514 KARACHI: Bullion gained Rs172 to finish at Rs48,514 per 10 grams in the local market  -Karachi capital market ticks down KARACHI: Local capital market ended lower on Thursday as investors booked profit in blue chip companies such as Oil  -Rupee gains against greenback KARACHI: In the currency market, Thursday, the rupee ended firmer at 90.00/10 to the dollar, compared to Wednesday  -Euro edges down after mixed Australian jobs data TOKYO: The euro eased against the dollar in Asia on Thursday as mixed Australian jobs data rekindled risk aversion  -Asian markets rise on IMF crisis-fighting plan HONG KONG: Asian markets rose in early trade Thursday, tracking gains on Wall Street amid positive US economic data  -Oil prices higher in Asian trade SINGAPORE: Oil prices were higher in Asian trade Thursday, supported by news that the International Monetary Fund  -CNG stations reopen in Lahore region LAHORE: All CNG stations in Lahore region reopened at 6am today (Thursday) after three-day closure, Geo News report  -KSE vaults to one-and-a-half month high KARACHI: Energy stocks such as Oil and Gas Development Co Ltd (OGDCL) on Wednesday pushed the benchmark 100-Index  -Rupee strengthens; o/n rates tick up KARACHI: In the currency market, Wednesday, the rupee ended firmer at 90.21/28 to the dollar, compared to Tuesday  -Rupee strengthens; o/n rates tick up KARACHI: In the currency market, Wednesday, the rupee ended firmer at 90.21/28 to the dollar, compared to Tuesday  -CNG shutdown prolonged in Punjab LAHORE: CNG stations in Punjab will not open at scheduled 8:00 PM Wednesday, Geo News reported. The compress  -Asian markets mostly up but Europe weighs HONG KONG: Asian markets were mostly higher in early trade on Wednesday, extending the previous day s rally thanks Monetary policy schedule changed KARACHI: The State Bank of Pakistan (SBP) has changed the schedule of its monetary policy announcement in order to consider inflation data before formulating the policy. `The Central Board of Directors of SBP have decided to reschedule the meetings on monetary policy from the last week of the alternate month to the first half of the following month during a calendar year,` a press release issued by the SBP stated. The SBP said this change in the schedule of board meetings has been made in order to take into consideration the latest data on inflation released by the Pakistan Bureau of Statistics (PBS). The data now becomes available at the beginning of a month instead of the second week.The board meetings on monetary policy, which were earlier scheduled to be held in the last week of January, March, May, July, September and November, have now been shifted to the first half of February, April, June, August, October and December. The announcement of the Monetary Policy Statement in February and August will be made through a press conference by the Governor, State Bank while the other four monetary policy decisions in April, June, October and December will be announced through press releases. Governor SBP Yaseen Anwar, will unveil the next Monetary Policy Statement for the months of February and March 2012 at a press conference on February 11. Govt considering going to IMF for fresh package ISLAMABAD, Jan 19: The government is likely to approach the International Monetary Fund (IMF) in about two months` time for a fresh bailout package as continued rise in international oil prices and limited foreign inflows threaten Pakistan`s balance of payments position, informed sources told Dawn. With a positive revision in economic growth estimate to 4 per cent, the Monetary and Fiscal Coordination Board on Thursday noted with concern that a rising trend in international oil prices and challenging foreign inflows could threaten country`s balance of payments position. The meeting presided over by Finance Minister Abdul Hafeez Shaikh was attended by the commerce minister, deputy chairman Planning Commission, Governor State Bank of Pakistan and Secretary Finance. The meeting was convened to share assessment of the current economic situation and bring consistencies in economic tar-gets and optimal utilisation of policy measures. Secretary Finance Dr Waqar Masood Khan who briefed the meeting said the GDP growth rate was expected to move up to about 4 per cent from an earlier estimate of 3.6 per cent. This was mainly because of a better crop position and improved largescale manufacturing growth in the first six months of the current fiscal year. The board noted with concern that rising international fuel prices could affect balance of payments and deteriorate the external position. The estimate was that oil prices could touch $130 per barrel in view of tension in the Middle East region from existing rate of about $112 per barrel. The meeting identified energy shortages and mobilisation of foreign financing as some of the key challenges and noted the requirement for more foreign resources to reduce burden of government borrowing on domestic sector even though the economicoutlook of Pakistan was stable despite challenges, an official statement said. The meeting was informed that government`s facilitation in the agriculture sector, improvement in supply situation, reduced budget deficit and borrowing from the SBP had helped bring inflation down to single digit or.9.7 per cent in December 2011, while food and non-food inflation also stood at 9.5 and 9.9 per cent respectively. The Wholesale Price Index (WPI) and Sensitive Price Index (SPI) were also in single digit at 8.3 and 3 per cent, respectively. Core inflation was declining but remained at 10.1 per cent, the meeting was told. Dr Khan said external sector was showing positive growth as remittances increased by 19.5 per cent to $6.3 billion in first six months of the fiscal year when compared with same period last year while the exports grew by 9.1 per cent to reach $12.1 billion over the six months last year as imports increased to $19.7 billion. Likewise, the current account balance posted a surplus of $160 million in December 2011. The revenues showed a healthy growth of 27 per cent to Rs840 billion in first half of the year while government efforts for expenditure management, austerity measures, reforms in public sector enterprises would have positive impact on economy going forward. The meeting was informed that overall expenditure in first six months was contained at 45 per cent of budgeted allocations. The improved revenue and expenditure performance helped contain fis-cal deficit at 2.6 per cent of GDP against a revised annual target of 4.7 per cent which was slightly lower than last year`s half year deficit of 2.9 per cent. A cause of concern for the policy board was a provincial deficit of Rs5 billion in first six months against last year`s same period surplus of Rs76 billion or 0.4 per cent of GDP. The meeting noted that central bank`s decision to reduce policy rate to 12 per cent was showing signs of private sector investment as credit expansion to private sector stood at Rs169.3 billion in first six months against Rs123.2 billion same period last year. The finance secretary said the government borrowing from the State Bank at Rs120 billion at the close of first half was temporary and will soon be retired.Net foreign financing to budget has been positive at Rs20 billion but more foreign resources were required to reduce burden of government borrowing on domestic sector. The board noted that renewal of growth, decline in inflation, contained fiscal deficit, a healthy balance of payments position and continuation of reforms especially in the power sector has stabilised the economy. It said the key foreign flows relating to auction of 3G telecom licence, coalition support fund receipts and privatisation proceeds on account of PTCL would be realised during the second half and cover the foreign financing gaps despite a $1.2 billion repayment due to IMF in the second half of the year. SECP relaxes licence condition ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) has relaxed the condition of issuing licences to nonprofit associations under section 42 of the Companies Ordinance, 1984. A press release issued by the SECP stated that as per the amendment, now investment in associated companies can be made after prior approval of the SECP. The amendment reads as follows: `The Association shall make no investment, whatsoever, in its associated companies except with the prior approval of the Commission and subject to such conditions as it may deem fit to impose. Previously, the condition required that the `not-for-profit` association will make no investment, whatsoever, in its associated companies. The condition was originally imposed to restrict improper use of funds by the associations. `However, it has been observed that the condition was causing problems for transactions backed by genuine reasons. SECP hopes that the amendment would facilitate genuine transactions by the not-for-profit associations, which was earlier not possible,` the statement added.

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Mohammed Saleem Mansoori