Malik urges Taliban to disarm voluntarily

ISLAMABAD: Minister for Interior, Rehman Malik on Friday said Pakistan would not initiate a dialogue with local Taliban unless they lay down arms and give up terrorism.

A move of Taliban to end war voluntarily would be welcomed, Rehman Malik, along with United Kingdom’s Home Secretary, Theresa May told media persons after visiting Police Lines Headquarters here.

He asked them to surrender by disarming themselves and refrain from playing into the hands of the enemy.

He said Pakistan had suffered billions of dollars losses in its war against terror and the international community should realize that this war was being fought to protect the world from the ravages of terrorism and to promote peace.

He said Pakistan and United Kingdom share a powerful interest in fighting the extremism and terrorism that threatens people in both countries as well as the whole world.

Replying to a question about activities of Hafiz Muhammad Saeed, he said, there is a democracy in Pakistan and courts are free to decide independently. Hafiz Saeed has been freed by court, he added.

On a question about killing of former Afghan President, Prof Burhanuddin Rabbani, Malik said he was a friend of Pakistan and his murder was sorrowful for both Pakistan and Afghanistan.

He said Prof Rabbani was making efforts for peace and it was Pakistan’s responsibility to hunt down his killers, who had tried to disrupt the peace initiatives and damage Pak-Afghan ties.

The minister also mentioned the recent meetings of President Asif Ali Zardari and Prime Minister Syed Yusuf Raza Gilani with Afghan President Hamid Karzai in which it was decided that Pakistan would help the Afghan authorities in the investigation of his killing.

He said an Afghan delegation during its visit to Pakistan held meetings with Pakistan’s law enforcement agencies’ officials and has been assured cooperation with regard to find out killers of Prof. Rabbani.

Theresa May told media that UK recognises Pakistan’s sacrifices in fighting terrorism and would stand with Pakistan to combat terrorism and extremism.

She also expressed sympathy with the families of those who have sacrificed their lives in the war against terrorism. Around 36,000 Pakistanis including 3,500 policemen have laid down their lives in the war against terror.

Earlier, both leaders met with the families of victims of terrorism and acknowledged their sacrifices.

Upon their arrival at police lines headquarters, they were presented guard of honour and also laid floral wreath at Martyrs’ monument.

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SC dismisses govt’s review petition against NRO verdict

ISLAMABAD: The Supreme Court on Friday dismissed the government’s review petition against its ruling declaring the National Reconciliation Ordinance (NRO) illegal, FTNews reported.

The apex court ruled that the government could not make a case for reviewing the judgment.

The petition was heard by a 17-judge full court headed by Chief Justice Iftikhar Mohammad Chaudhry.

The NRO was struck down by a Supreme Court verdict on December 16, 2009.

The bench directed the authorities concerned to comply with its earlier detailed order on the issue in letter and spirit and without any delay.

Prominent lawyer and Pakistan People’s Party leader Aitzaz Ahsan told journalists outside the court building that the government was bound to implement the orders, adding that, the president, however, had immunity.

Moreover, Yaseen Azad, president of the Supreme Court Bar Association (SCBA), was of the view that the verdict should be implemented according to the court’s directions.

The court knows how to get its orders implemented, he added.

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Petition against Sherry’s appointment forwarded to LHC CJ

LAHORE: After a preliminary hearing of the petition against Sherry Rehman’s nomination as Pakistan’s ambassador to the US, Lahore High Court’s Justice Khalid Mahmood on Friday forwarded the plea to LHC’s chief justice, FTNews reported.

During the initial hearing, Justice Mahmood said another petition against Ms Rehman’s disqualification was pending with LHC’s Justice Nasir Saeed Sheikh. Therefore, the recent petition was being sent to LHC Chief Justice Sheikh Azmat Saeed so that all pending cases against Ms Rehman could be put together, Justice Mahmood said.

Earlier on Thursday, petitioner Mohammad Azhar Siddique Advocate had stated that Ms Rehman had not resigned from her membership of the National Assembly which was why she could not be appointed to any government post.

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Four soldiers, 35 militants killed in Kurram clashes

KURRAM: Pakistani troops assaulted militant strongholds in the northwestern tribal region of Kurram on Friday around midnight, killing 35 militants and wounding 10 more, security officials said.

Four soldiers were also killed in the firefight, which lasted several hours. Militant sources confirmed the clashes and casualties but disputed the government’s death toll.

There was no independent confirmation of the battle.

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SC moved to place Haqqani on ECL

ISLAMABAD: PML-N chief Nawaz Sharif who has moved the Supreme Court on the memogate scandal filed on Thursday yet another application, calling for restrictions on Husain Haqqani, the former ambassador to the US, from leaving Pakistan.

“It is apprehended that either the former ambassador will flee the country or that he will be made to leave the country in order to frustrate the adjudication by this court for reasons based on malice, to say the least,” the two-page application said.

The application has been filed under the order 33 of the Supreme Court Rules of 1980.

It said the ambassador who had resigned from the post was a person central to and vital for purposes of a fair and just inquest.

The petition said the court should order Mr Haqqani not to leave Pakistan till the adjudication was concluded.

Two members of the National Assembly from Balochistan and a provincial minister filed a similar petition in the Supreme Court on the memogate scandal.

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Transition to Sherry will be seamless: US

WASHINGTON: The transition from Husain Haqqani to Sherry Rehman will be ‘seamless,’ says the US State Department as diplomatic circles in Washington begin to forget the former ambassador in less than 48 hours after his resignation.

“Do you think that this transition will be smooth?” asked a reporter at a State Department briefing. “We also have a strong relationship with Ms Rehman, so we expect it to be seamless,” said the department’s spokesman Mark Toner.

“What a difference a day makes,” commented one of Mr Haqqani’s admirers at the Pakistan Embassy. “Ms Rehman’s appointment was announced on Wednesday morning (Washington time) and by evening we were receiving phone calls about who she is, not about how and why Mr Haqqani was persuaded to leave.”

And this reflected at the State Department briefing as well where some reporters even questioned the wisdom of giving so much importance to an individual.

“Just as a practical thing, does it really matter who the Pakistani ambassador to the United States is?” asked a journalist. “I mean, you deal with the government, you don’t deal with individuals, correct?”

“You are right to say that we have multiple channels through which we communicate with the Pakistani government. But the ambassador here is an important interlocutor, as well,” responded the spokesman. “Yeah, but does it matter who it is?

Whether it’s him or whether it’s her?” the journalist asked. “We do have relationships with governments. Yeah, anyway, point taken. Go ahead,” Mr Toner said.

And the next question showed how the nature of discussion about a public figure changes after his or her departure.

“Was Ambassador Haqqani a dual citizen? I mean, he’s been here for a very long time,” asked another journalist. “You’ll have to ask him. I don’t believe so,” Mr Toner replied.

When another reporter raised his hand, Mr Toner asked: “Still on Pakistan?” “Yes, just a quick one,” the journalist said and then reminded him that on Tuesday, Senator John Kerry, chairman of the Senate Foreign Relations Committee, called Mr Haqqani a friend of the US and said he would be missed here. “Do you share the sentiment?” the reporter asked.

“We did appreciate his strong support for US-Pakistan relations,” Mr Toner replied. “I also do want to note that we have appreciated Ambassador Haqqani’s strong support for US-Pakistan relations throughout his tenure.” Responding to another question, the US official revealed that Mr Haqqani had visited the State Department before going to Islamabad.

“He was indeed here, he did meet with officials here at the State Department before he returned to Islamabad. I’m not going to discuss the substance of that meeting,” Mr Toner said.

“We are aware of the government of Pakistan’s announcement that it intends to appoint Sherry Rehman as the new Pakistani Ambassador to the United States and we certainly look forward to working together with her as we continue to build a strong, cooperative relationship between our two countries,” he added.

The government of Pakistan, however, had not yet forwarded her name or Mr Haqqani’s resignation to the State Department, Mr Toner noted.

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Gas, electricity tariff hike on the cards

ISLAMABAD: While inflation continues to be in double digits, the government is planning to increase the natural gas tariff by up to 14 per cent and electricity rates by 4 per cent.

The Oil and Gas Regulatory Authority (Ogra) allowed on Thursday a 14 per cent increase in the natural gas rates for Sui Northern Gas Pipelines Limited (SNGPL) and 11 per cent for Sui Southern Gas Company Limited (SSGCL) with effect from January 1, 2012, a senior Ogra official said.

Separately, a water and power ministry official said a notification for a 4 per cent increase in electricity rates had been sent to the law ministry for vetting in view of the fact that the proposed hike had to be made through a uniform tariff increase for all distribution companies of Wapda under an equalisation surcharge.

This was confirmed by a statement issued by the cabinet committee on restructuring (CCOR) which said: “Technical work on tariff determination has been completed and legal work is in under process. In the same way the mechanism for uniform tariff for the entire country and simplification for tariff are under development.”

Prices of oil products, including diesel, kerosene, high octane blending component and jet fuels, are also estimated to go up by 6-7 per cent on November 30, an official said.

An Ogra official said the SNGPL had sought a tariff increase of about 30 per cent (Rs118 per million British Thermal Unit) to meet its revenue requirement for financial year 2012. Since the increase has been allowed for six months starting January 1, 2012, a tariff increase of Rs43.90 per MMBTU was allowed by Ogra.

Likewise, the SSGCL had demanded a tariff increase of Rs44 per MMBTU or 14 per cent. Ogra, however, allowed a tariff increase of Rs34 per MMBTU, or 11 per cent, for six months with effect from January 1 next year. Under the Ogra law, the government is required to work out gas development surcharge on the basis of rates for different consumer categories and tariff slabs and notify fresh natural gas rates within 40 days or latest by December 31 for recovery of increased rates from consumers.

For the first time, Ogra has also forwarded an executive summary to the government informing it about factors leading to tariff increases. Ogra asked the government to take policy measures to control tariff increases.

It said the foremost factor resulting in tariff increases related to gas shortfalls and resultant gas load management under which the government diverts gas from high-tariff consumers (like industries, CNG, power sector and commercial consumers) to
low-tariff consumers like domestic and fertiliser sectors. The governments should stop supplying gas to consumers paying
Rs500 per unit in industrial sector and divert it to domestic consumers paying about Rs150 per unit.

Secondly, gas utilities had to incur 70 per cent cost of development schemes recommended by parliamentarians. This not only keeps on adding low-priced consumers and thus higher gas requirements but also puts additional financial burden on gas utilities.

Thirdly, the gas transmission losses – technically known as unaccounted for gas – also have been on the rise although Ogra could not allow more than 7 per cent losses owing to a court order. One per cent gas loss, Ogra pointed out, translated into Rs1.5 billion that meant about Rs10-15 billion worth of system losses. Since the actual losses were to the extent of 13 per cent, the total system losses translate into more than Rs20 billion.

Fourthly, the cost of operations as a result of parliamentarians’ scheme was also costing gas utilities about Rs15 billion per annum. The government has been advised to look into these factors and take policy decisions to control such additional financial burden.

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No arrest made in Imran Farooq case: UK

ISLAMABAD: British Home Secretary Theresa May has contradicted a claim recently made by the London police chief that two suspected killers of MQM leader Dr Imran Farooq had been arrested in Karachi.

“It was a misstatement. Investigations in the case are still under way and no arrest has been made,” she said at a press conference along with her Pakistani counterpart Rehman Malik after a formal meeting here on Thursday.

Dr Farooq was stabbed to death outside his residence in London last year and a British paper had quoted the London police commissioner as saying in September this year that two Pakistanis had been arrested in Karachi for their alleged involvement in the murder.

Mr Malik also rejected the claim and said that after checking with all relevant state agencies he found that no such arrest had been made in Pakistan.

The British home secretary said the security of Pakistan and the United Kingdom was closely inter-linked. Pakistan as a frontline state, she said, had rendered enormous sacrifices to make the region more stable and to cleanse the world of terrorism and extremism. “It is important that we together combat the menace of terrorism.”

Ms May said her country wanted a long-term partnership with Pakistan for generations ahead. “We have consistently pledged our public support, regardless of the political backdrop. There is an unbreakable partnership — we now have to build on it.”

She termed the constant and meaningful contact between governments, institutions and civil society organisations of the two countries as bedrock of the partnership.

The British home secretary said her country was giving training support to Pakistan in dealing with improvised explosive devices, besides providing devices for airports to track explosives.

Mr Malik said that being an agro-based economy Pakistan could not ban ammonium nitrate, a fertiliser also used as explosive, but a strict check was being ensured on its transportation and distribution.

He said detonators had been coming to Pakistan from Afghanistan. Pakistan has banned movement of ammonium nitrate within 50km radius of the border.

About his discussions with the British home secretary, he said a mechanism had been agreed to bring back over 6,000 Pakistanis languishing in jails in the UK to complete their remaining sentence in Pakistan.

The two sides agreed to monitor new initiatives through a joint working group under which experts from both countries would discuss issues relating to migration focusing on visa cooperation, illegal migration, human trafficking, border control and migration policy.

Ms May welcomed Pakistan’s zero tolerance approach to illegal migration. She said Pakistan was already doing much to disrupt the work of agents who were abusing the trust of individuals by promising them a new life in the UK that they could not deliver.

Mr Malik said the post-marriage issues of British citizens of Pakistani origin were also discussed. The Federal Investigation Agency will exchange information and take effective action in case of kidnapping of Britons in Pakistan.

The British home secretary later called on President Asif Ali Zardari and Prime Minister Yousuf Raza Gilani and discussed with them issues of mutual interest.

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Steel Mills faces shutdown

ISLAMABAD: With ‘shutdown plan’ of Pakistan Steel Mills also an option, the availability of its raw material on a precarious 20 per cent capacity utilisation has come down to only 15 days as the company struggles to keep the plant running and pay staff salaries.

“Under the prevailing situation it is not possible to run the affairs of PSM in the absence of any prompt financial assistance for procurement of raw material,” said an SOS call to the federal government by the executive committee of the PSM management, which is looking after its day-to-day affairs.

Seeking an urgent injection of Rs6 billion to procure raw material (coal and iron ore) on an emergent basis, the committee wrote to the government that “if required action for procurement of raw material is not initiated immediately, PSM may fall down to crunches and its revival thereafter will be difficult, even impossible.”

Officials said the company’s liabilities had increased to Rs61 billion and the salaries for October had not been paid to the staff as of Nov 23, except for a Rs10,000 per head Eid allowance.

The PSM has been under severe financial strain since last year.

Although the cabinet committee on restructuring (CCOR) had reconstituted its board of directors in January this year to turn around the country’s largest industrial unit, its operational and financial position has gone from bad to worse in the absence of a full-time chief executive.

The CCOR is expected to meet again on Friday to consider a business revival plan and provide some financial lease of life to the company.

Under the business revival plan, the government has been offered three options. In the first case, the government has to inject/arrange fresh financing of Rs20 billion, which would enable the corporation to turn its operations around.

“The other option could be for the government to continue offering an ad hoc assistance to the PSM of around Rs5 billion per annum, which would ultimately result in bankruptcy.”

According to the PSM management’s executive committee, “the third and final option is closure of the operations which will cost over Rs40.25 billion as immediate closure cost, besides its political implications, including making over 16,000 people unemployed.”

Under the revival plan, the government will provide fresh financing of Rs20 billion from 2012 to 2019 on commercial terms and pick up mark-up for the first three years amounting to Rs9.3 billion.

This will enable the PSM to finance its working capital and enhance its capacity utilisation while simultaneously discharging some of its past liabilities and financing capacity expansion to 1.5 million tons per annum. In this case, the government will receive Rs90.80 billion as sales tax on the sale of finished goods and Rs3.98 billion as income tax (turnover tax) over five years.

As things stand now, the PSM is failing to meet a minimum of 20 per cent capacity utilisation, below which the plant could stop operations and revival becomes technically impossible.

Since prices of coal and iron ore have fallen considerably, it is high time to procure raw material from the international market as in later part of the year procurement from Australia and Canada will be impossible due to severe weather conditions.

The PSM has been apprising the government of an inconsistent supply of raw materials in view of financial constraints.

“It is regretted that no fruitful results have been achieved, which has forced the management to operate the plant at low capacity utilisation, which has increased the financial losses of PSM. Salaries of the employees are not being paid timely and are being paid by stopping the payments of various bills of contractors, suppliers, medical practitioners, clinics and utility bills”.

“The PSM has a threat that employees may be deprived of the salaries and other benefits and also in payment of utility bills.

They may thus come out on streets and resort to agitation. This situation may cause embarrassment for the PSM management as well as for the government,” the PSM management concluded.

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