LATEST NEWS UPDATE: 18.12.2012

 Pentagon to reimburse $688mn to Pakistan

WASHINGTON: The Pentagon quietly notified Congress this month that it would reimburse Pakistan nearly $700 million for the cost of stationing 140,000 troops on the border with Afghanistan, an effort to normalize support for the Pakistani military after nearly two years of crises and mutual retaliation, The New York Times reported.
According to the report, the United States also provides about $2 billion in annual security assistance, roughly half of which goes to reimburse Pakistan for conducting military operations to fight terrorism.
Until now, many of these reimbursements, called coalition support funds, have been held up, in part because of disputes with Pakistan over the Bin Laden raid, the operations of the CIA, and its decision to block supply lines into Afghanistan last year.
The $688 million payment - the first since this summer, covering food, ammunition and other expenses from June through November 2011 - has caused barely a ripple of protest since it was sent to Capitol Hill on Dec 7.
The absence of a reaction, American and Pakistani officials say, underscores how relations between the two countries have been gradually thawing since Pakistan reopened the NATO supply routes in July after an apology from the Obama administration for an errant American airstrike that killed 24 Pakistani soldiers in November 2011.

Altaf seeks advice over his future

KARACHI: Muttahida Qaumi Movement chief Altaf Hussain has appealed to the party’s workers and sympathisers to give their opinion whether he should quit the leadership and leave politics if they thought the situation may further deteriorate in the wake of his decision to face ‘every challenge’.
According to an MQM statement released from London on Monday evening, Mr Hussain said that he was consulting legal experts after the issuance of a contempt notice by the Supreme Court.
Talking to members of the MQM coordination committee and constitutional experts, he said he was not afraid of anyone but Almighty Allah.
The way MQM workers and sympathisers had expressed their love and registered their protest after the issuance of contempt notice against him was commendable, Altaf Hussain added.
He said he was aware of their emotions, but despite this he was asking for their opinion whether he should quit the party leadership and leave politics.
“I will submit your opinion to the coordination committee and decide about my future in the light of public opinion.”

LATEST/BRIEF  NEWS:

PAKISTAN (Brief News):

o   Two more gunned down in Karachi

o   Tattoos form of identification: Iftikhar

o   'Altaf faces unnatural threats in Pak'

o   Workers appeal Altaf not to quit party leadership

o   MQM workers, supporters gather outside Nine Zero

o   China major concern, Pakistan not: Indian FM

o   Raisani to inaugurate Reko Diq project next month

WOLRD(Brief News):

Funerals begin for Newtown victims as schools confront tragedy Syrian vice president says neither side can win war Taliban say suicide bomber targeted U.S. company in Kabul Apple's iPhone 5 starts strong in China but shares pressured Egypt opposition calls for protests against basic law Japan's next PM piles pressure on BOJ, vows to resolve China row Armed with rocket and maybe heir, Kim Jong-un remembers father Two police stations targeted in Libya's Benghazi U.N. chief alarmed by escalating violence in Syria Boehner opens door to tax hikes, shifts fiscal cliff talks Egypt's Islamists aim to build on constitution vote At memorial, Obama pledges effort to reduce gun violence AIG to raise up to $6.5 billion through AIA share sale: sources Syrian VP says neither side can win war: newspaper Connecticut gunman had hundreds of rounds; Obama to console Newtown Analysis: Boehner opens door to tax hikes, shifts fiscal cliff talks Japan's next PM Abe must deliver on economy, cope with China

WOLRD BUSINESS(Brief News):

o   Stock futures mixed; Apple under $500 in pre-market

o   Strong exports, slight wage rises offer euro zone hope

o   KKR raises $6 billion Asia fund, region's largest ever: sources

o   First Quantum goes hostile with sweetened bid for Inmet

o   Tanzania Nov inflation falls to 12.1 pct - stats office

o   Zambia to convert $425 mln ZCCM-IH debt into equity

o   AIG to raise up to $6.5 billion through AIA share sale: sources

o   UBS faces $1 billion day of reckoning over interest rate rigging

o   Dollar surges on Japan vote, U.S. budget weighs

o   GDF Suez sells stake in Canadian wind, solar projects

o   Mitsubishi Heavy CEO calls for nuclear restarts in Japan

o   Centamin says Egypt mine to restart in days

o   Kenyan shilling steady vs dollar, seen firmer on remittances

o   Eni to invest $8 bln to boost Libya production

o   Brent stays above $108, China hopes support; US talks eyed

Business News:

Dollar reaches close to Rs100

KARACHI: The immediate impact of the interest rate cut slashed the rupee’s value by a great margin on Monday as the open market reached close to Rs100 to the dollar, which led the central bank to call an urgent meeting with the exchange companies to keep the local unit away from reaching triple digits.
Before the Monetary Policy was announced, fears were high in the currency market, both inter-bank and open, that a further cut in the interest rate could trigger the rupee depreciation against the US dollar. The interest rate was reduced by 50 basis points to 9.5 per cent on Friday evening.
The US dollar was traded as high as Rs98.35 in the inter-bank market but settled slightly at a lower price of Rs98.26 in the second session.
“Demand for greenback is high and supply is not up to mark. It created gap of which the cost was high for the local currency,” said Atif Ahmed, currency dealer in the inter-bank market.
He said the dollar gained at least 50 paisa on Monday. The inter-bank market did not see any intervention or injection of dollars by the State Bank which had been a practice till recent past to support the local currency.
Dealers said the shrinking foreign exchange reserves did not allow the central bank to use its precious currency for supporting the rupee.
The open market was more bullish as it pushed the dollar rate close to Rs100 and traded as high as Rs99.70.
However, the dollar price declined particularly after the meeting of exchange companies with the Governor State Bank and Minister of State for Finance.
Banking sources said the State Bank did not want to see dollar at Rs100 which could have a psychological impact on the market.
However, the Chairman Exchange Companies Association of Pakistan Malik Bostan who met the Governors and others leading a delegation in the State Bank said he made it clear that exchange rate should be controlled in the inter-bank market. He said the open market is simply a reflection of inter-bank market.
Exchange companies and currency dealers in the bank said the US dollar is also being smuggled to other countries and Dubai is the main destination for the currency.
“At least $5-$7 million is being smuggled out. We used to receive $10-$12 million per day now we receive in the range of $5-$7 million per day reflecting volume of smuggling,” said Malik Bostan.
He said the State Bank should monitor some banks which have made a cartel and are responsible for the abrupt increase in the dollar price.
However, analysts had predicted that any cut in the interest rate would boost the dollar demand and thus prices. Many termed the decision of interest rate cut at the time of general elections political rather than economic.

Pakistan

EXCHANGE FOR CURRENCY NOTES:

U.S.A              98.58

S.Arabia         26.29

U.K                 159.32

Japan              1.1730

Euro               129.68

U.A.E             26.84

BULLION RATES IN RUPEES PER 10 GRAMS

KARACHI

Gold Tezabi (24-ct)     Rs 54,000 Silver Tezabi                Rs 985.71
Mon, 17 Dec 2012
-	Dollar reaches all time high of Rs99.25 b
-	Asian markets mixed, Tokyo up on election result HONG KONG: Asian markets began Monday mixed on concerns at the lack of progress in US talks aimed at averting the
-	Crude up in Asia on China demand hopes SINGAPORE: Oil was up in Asia Monday on trader expectations of a hike in  Chinese crude demand after a key survey s
-	FSD: Gas suspension enters 10th day FAISALABAD: The industrial sector of Faisalabad region has come to a halt as gas supply has been suspended for industry
-	Microsoft, Motorola file to keep patent case details private SEATTLE: Microsoft Corp and Google Inc s Motorola Mobility unit have requested a federal judge in Seattle to keep
-	Faisalabad: Gas suspension enters 8th day FAISALABAD: The industrial sector of Faisalabad region has come to a halt as gas  supply has been suspended for industry
-	PTA, Transparency International sign MoU for 3G bidding ISLAMABAD: Pakistan Telecommunication Authority (PTA) and Transparency International Pakistan (TIP) have signed a
-	Karachi stocks rise in cautious trading KARACHI: Stocks rose on Friday, but the market remained dull as investors waited for a monetary policy announcement
-	State Bank policy rate down at 9.50 percent KARACHI: The State Bank of Pakistan (SBP)Friday reduced the interest rate by 50 basis points bringing it down to 9
-	Sindh consumers set to face 24hr CNG closure midnight
-	CNG station owners submit audited accounts to OGRA ISLAMABAD: All Pakistan CNG Association (APCNGA) on Friday said that over 1,000 owners of the CNG stations have su
-	Crude up in Asia on positive China data SINGAPORE: Crude prices were up in Asia on Friday after a closely watched survey showed Chinese manufacturing hitt
-	Faisalabad workers, industrialists resent gas holidays FAISALABAD: The workers as well as the industrialists in the city here strongly resented forced holidays due to we
-	Yen weak in Asian trade ahead of Japan elections TOKYO: The yen was under pressure in Asia on Friday ahead of weekend elections expected to usher in a new government
-	Import payments weigh down on rupee The rupee

MOHAMMED SALEEM MANSOORI