Economic Reforms are JUSTIFIED like Hell Losing in a scenerio of BOILING Blind Nationalism with Military Cover up and hyped NATIONAL SECURITY issue under Nuclear Strategic Realliance led by US and ISRAEL!
Indian Holocaust My Father`s Life and Time - SIX HUNDRED TWENTY NINE
Palash Biswas
http://indianholocaustmyfatherslifeandtime.blogspot.com/
http://basantipurtimes.blogspot.com/
India Incs on HUNTING as India for global efforts to control inflation,says the Brahamin Finance Minister!Al-Qaeda, the organisation once led by Osama Bin Laden, may have underground cells in dozens of countries, but it's main areas of activity, and those of some of its affiliates are listed below.BBC reports. The US SEAL Operation to KILL OSAMA BIN LADEN has shifted the War in South Asia, I had written on the demise of the Terror ICON. Now HINDUTVA ZIONIST elements PRESS for yet another INDO PAK WAR! Warmongers of Global Manusmriti Apartheid Order is Proactive once again. It makes the best opportune time for INDIA INCs` HUNTING Agenda as ETNIC CLAEANSING Agenda of
Economic Reforms are JUSTIFIED like Hell Losing in a scenerio of BOILING Blind Nationalism with Military Cover up and hyped NATIONAL SECURITY issue under Nuclear Strategic Realliance led by US and ISRAEL!
India-centric intel overlooked Osama: Hussain Haqqani
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Inside bin Laden's lair: The aftermath
Warning: The following images are graphic and potentially disturbing. Extreme caution advised
Wreckage is seen in the compound after U.S. Navy SEAL commandos killed al Qaeda leader Osama bin Laden in Abbottabad, May 2, 2011. Bin Laden was killed in the U.S. special forces assault on the Pakistani compound, then quickly buried at sea, in a dramatic end to the long manhunt for the al Qaeda leader who had been the guiding star of global terrorism.
Barack Obama may have blocked publication of Osama bin Laden's gruesome corpse pictures but news agency Reuters, in a release not authorised by the US government, distributed disturbing pictures of three other men killed at Bin Laden's Pakistan hideout. These images were taken right after the raid on May 2, 2011.
The pictures not only provide a glimpse into the compound of Osama's mansion in Abbottabad after the raid but also give a sense of the brutality involved in the Navy SEAL mission.
The photographs show wreckage lying about the compound including that of a US chopper that was damaged during the operation.
There are four other images that show unidentified men lying dead in pools of blood.
Source: Reuters
In the previous week, annual food and fuel inflation stood at 8.76 per cent and 13.53 per cent, respectively.
The primary articles price index was up 12.11 per cent, compared with an annual rise of 12.08 per cent a week earlier.
The central bank, the Reserve Bank of India , raised interest rates by a bigger-than-expected 50 basis points on Tuesday, its ninth rate hike since March 2010, in a bid to moderate stubbornly high inflation.
The wholesale price index-based inflation , the most widely watched gauge of prices in India, rose 8.98 per cent in March from a year earlier, higher than February's 8.31 per cent rise.
Warning that volatility in international food and fuel prices may be on the way to becoming a long term and global phenomenon, India today called for a coordinated effort at the global level to control inflation.
Recent volatility in global prices of food and fuel has thrown up fresh challenges in management of inflation, Finance Minister Pranab Mukherjee said, adding, "... Management of inflation, in addition to domestic efforts, will increasingly have to be a globally coordinated effort."
Vital sections of the industry will hurt and consumers, who have borrowed to finance purchases, too, will feel the pinch of the Reserve Bank of India's ( RBI )) tighter monetary policy. The viability of a host of infrastructure projects , which are capital-intensive and debt-oriented in financing , will come down. And consumers will have to shell out more for loans on homes, cars and durables, although marketers point out that this will not dramatically reduce their share of wallet for demand-driven items like those of home and personal care.
Finance Minister Pranab Mukherjee today projected India's economic growth at 8 per cent for the current fiscal, lower than the budgetary estimate of 9 per cent, due to measures taken to rein in high inflation.
"If oil prices continue to rise, it would be difficult to achieve higher GDP. GDP may come down to 8 per cent from (the projected) 9 per cent," Mukherjee told reporters on the sidelines of ADB annual meeting here.
The government's (India) primary concern now is to manage inflation while sustaining high growth rate . Hardening of global commodity prices, particularly oil prices has accelerated inflation, he said adding "our projection is 7.5-8 per cent inflation during the year".
Earlier this week, Reserve Bank of India too had lowered economic growth projection to 8 per cent due to measures taken to tackle high inflation especially food prices.
India's economy is estimated to have clocked 8.6 per cent growth in 2010-11.
Mukherjee said Inflation, particularly the increase in food prices, is a major concern for India as well as other developing countries. "We are trying to reduce it through supply and demand side management.
"On supply side we are trying to remove bottlenecks and on demand side RBI has adjusted interest rates to mop up excess liquidity in a manner so that it may not affect the economic activity," he said.
With adequate buffer stock and hopefully a good monsoon, "we are looking at easing of the price situation in India", he said.
Overall inflation was 8.98 per cent in March and has been above the 8 per cent mark since January, 2010.
Asked whether the government is planning to increase diesel prices in the near future, Mukherjee said "We will announce it as and when the decision is taken".
In its annual monetary policy, the RBI had advocated hike in prices of petroleum products.
The government has not allowed state oil firms to revise diesel prices since June last year when crude oil was ruling at USD 72-73 per barrel. Crude oil is today trading at around USD 110 a barrel in international markets.
Referring to speculations in global commodity market, Mukherjee said increase in prices is not merely a function of demand and supply, but also driven by huge financial flows into commodity market in search of higher return.
RBI's move comes at a time when manufacturers are already grappling with an increase in prices of crude oil and commodities and dampening consumer sentiment in select sectors. "A slowdown in growth is inevitable," says R Shankar Raman, executive vice-president (finance), Larsen & Toubro. Mr Raman points out that for infrastructure companies that are involved in concession agreements, the viability of a project will now have to be reviewed.
If a company was operating at a 9.5% cost assumption, it will now have to operate at 11.5%. "Bids for such projects will be more pragmatic and the volume of bids will also come down," adds Mr Raman. Rates of rupee loans will now climb into the 12% zone. "With that kind of interest rates and cost of equity being much higher than that, the weighted average cost of capital for running any business will be higher than the operating margins of many businesses," says Prabal Banerji, CFO, Adani Power .
One major plank of the India growth story is infrastructure creation, the pace of which needs to quicken. Higher interest rates will only slow it down further. "Marginally viable projects, such as some roads and bridge, will be further delayed due to difficulties in financial closures," says Virendra D Mhaiskar, chairman of IRB Infrastructure Developers , a leading road project developer.
The other engine of growth - consumption - will also slow down. Consider automobiles, for instance. If you had picked up a . 3 lakh loan to buy a Maruti Swift for . 4.2 lakh, you will now end up paying . 5,400 more at the end of the three years.
Mukherjee was speaking at a session on managing inflation and capital flows at the Governors' Roundtable of the Asian Development Board's annual meeting here.
He, however, blamed the policies of advanced economies of loose monetary conditions to fight deflationary trends and foster a recovery for leading to volatile capital flows and partly contributing to volatility in commodity prices.
"Today, the entire globe is facing simultaneous volatility in food, fuel prices and commodity prices. Thus, over the last four years, we have moved from a fuel crisis to a food crisis to a financial and economic crisis and now, we are back to a food and fuel price crisis," he said.
India is grappling with high food inflation, which was hovering around 8.5 per cent for the week ended April 23 and the Reserve Bank of India has tightened the monetary policy to contain inflation even at the cost of economic growth.
"We need to look closely at contribution of different factors to food price volatility and inflation in order to understand and respond through policy reform," Mukherjee said.
He said a significant part of inflation is due to imbalances and inadequacies in global financial and monetary management.
The minister said one set of policies needs to address issues such as excessive liquidity and speculation and another set of policies needs to address other issues such as panic buying and exchange rate fluctuations.
On capital flows, Mukherjee said there has been steady revival of capital flows to India in 2009-10 and this trend continued in 2010-11 due to its strong economic fundamentals.
"However, easy monetary policy in terms of very low interest rates and quantitative easing in advanced economies have led to an increase in liquidity and lowering of long term interest rates. These are also driving capital to emerging economies in search of higher yields," he said.
On the other hand, India and China will remain the fastest growing economies in Asia-Pacific by expanding at respective rates of 8.7 per cent and 9.5 per cent in 2011, much above the average of the region, UN agency ESCAP said today.
The UNESCAP report outlook for the Indian economy is healthy even as Reserve Bank and Finance Minister Pranab Mukherjee have lowered the growth estimates for the economy for 20 11-12.
Both the RBI and Mukherjee have pegged the Indian economy's growth in this fiscal at eight per cent from the earlier estimates of nine per cent.
ESCAP's projection for India is higher than that for developing economies in the Asia-Pacific region, where growth is pegged at around 7.3 per cent in 2011.
"The region's large developing economies continue to power ahead. Fastest-growing economies in 2011 are expected to be China at 9.5 per cent and India at 8.7 per cent," the report titled 'Economic and Social Survey of Asia and the Pacific 2011' said.
The UNESCAP' estimates about the Indian economy are also better than the projections by the other multilateral agencies like the International Monetary Fund (IMF)which had lowered it to 8.2 per cent.
The UN agency said that private consumption and investment demand would be the main drivers of growth for the Indian economy.
On the challenge of rapid escalation in prices, it said most economies in the Asia-Pacific region are likely to see an increase in inflation, which could push an additional 42 million people into poverty.
"Due to higher food and energy prices, up to 42 million additional people across Asia and Pacific may remain in poverty in 2011, in addition to the 19 million already affected in 2010," the report said.
The report said that low interest rates in developed economies are prompting investors to seek higher returns in emerging markets in Asia and the Pacific, thereby, leading to capital control measures by these economies.
"Developed economies should also support the imposition of such controls by taking measures that deter capital flows, such as taxing them or requiring high margin requirements on foreign exchange derivatives that mimic actual outflows," the report said.
It said that there are still acute concerns about the quality of jobs and vulnerability of workers in the Asia Pacific region. "The most serious problems are for young women and men, who are 3.2 time more likely than adults to be unemployed," the report added.
Statement made by Kaushik Basu , Chief Economic Adviser to the Finance Ministry:
The monetary policy measures announced on 3rd May by the RBI are remarkable not so much for the size of the rate hike as for the sophistication and imaginativeness of the range of complementary instruments used.
I am glad that the RBI has resurrected the savings bank deposit interest rate from being a fixture in our economy's firmament to an active instrument of monetary policy.
The RBI has shown imagination by creating the new Marginal Standing Facility. Even though its interest rate will be a full percentage point above the repo rate, since it is an additional window for borrowing money, it should take some pressure off the call money market and lead to a softening of the call money rate.
The stridency of the latest RBI policy reflects not a change of heart but a search for a new policy cocktail for a new world. This is as it should be. Successive rounds of globalisation have weakened the efficacy of standard monetary and fiscal medicines and we are forced to think out of the box. This is not just so for India but all emerging economies. The liquidity created by industrialised economies to jump start their economies is flowing over the surface of our new flat world to nations like India, China and Vietnam- the new players on the block, giving rise to inflationary pressures in these countries. Though the level of inflation in India remains unacceptably high, it must not be forgotten that inflation in India now is lower than it was one year ago, whereas for a number of nations, such as China, Vietnam, Argentina, Brazil and Indonesia, the movement has been in the other direction. While not denying that we still have a hard battle ahead, I think the RBI and the Ministry of Finance deserves some credit for this.
Autonomy does not mean doing the opposite of what someone else says. That would, infact, be subservience, since that someone could then fully control your behaviour. Autonomy is thinking independently and coming to a decision. What is heartening about the recent policy is that the government and the RBI are autonomously in agreement.
4 MAY, 2011, 09.49AM IST,REUTERS
Seven economies including India to rise by 2050 - ADB
HANOI: Seven economies are the potential drivers of Asia's rise over the next 40 years into a powerhouse that accounts for just over half of global output, the Asian Development Bank (ADB) said in a report released on Wednesday.
In the report on Asia in 2050, the ADB said the dominant economies needed to avoid falling into the middle-income trap that has seen the development of other emerging markets stall.
If they can achieve that, some 3 billion people will enjoy prosperity a generation earlier than they otherwise would, the ADB said at its annual meeting in Hanoi.
"Yawning inequalities must be narrowed and -- as home to over half of the world's population -- Asia must confront a massive wave of urbanisation and changing demographic profiles," the ADB said, adding the region's urban population would nearly double to 3.1 billion people by mid-century.
Necessary reforms included improved governance and strong institutions -- which the ADB said was an Achilles heel for most economies in the region -- and tackling environmental challenges to ensure food and water supplies.
"Asia's rise will be led by China, India , Indonesia, Japan, (South) Korea, Malaysia, and Thailand," the ADB said.
The seven economies had a combined GDP of $14.2 trillion in 2010, 87 percent of Asian GDP, and a total population of 3.1 billion, or 78 percent of Asia's people.
The study found that by 2050, the seven could account for 90 percent of Asian GDP -- and 45 percent of global output -- even as their share of Asia's population falls to 73 percent.
Average per capita income across the seven countries would be $45,800 in purchasing power parity terms -- 25 percent higher than the global average of $36,600, the study found.
MIND THE GAP The middle income trap, which sees per capita income stall before advanced-economy levels, usually occurs as countries try to change from resource-driven economies reliant on cheap labor and capital to growth based on high productivity and innovation.
The ADB said based on Asia's record over the past 25 years, there were three categories of Asian economies.
Seven -- Brunei, Hong Kong , Japan, South Korea, Macau, Singapore and Taiwan -- had grown rapidly since the 1950s, "avoiding the middle income trap and becoming high-income developed economies in one generation."
A second group of 11, including China and India, have posted high growth since 1990 but now face the greatest risk of seeing per capita income stalling at middle-income levels.
The others in this group are Armenia, Azerbaijan, Cambodia, Georgia, Indonesia, Kazakhstan, Malaysia, Thailand, and Vietnam.
"Several of these economies, or the larger ones, could easily derail the enticing prospect of the Asian Century," the report said.
Another 31 economies, which include Pacific Island nations and also countries such as the Philippines , Myanmar, Iran and Uzbekistan, have achieved only modest or low long-term growth.
"Their success in joining the ranks of the fast-growing group would significantly facilitate the spread of affluence to all Asians," the ADB said.
The ADB is charged with fighting poverty in a region that includes small Pacific islands, Southeast Asia, the giant economies of China and India, and central Asian republics such as Kazakhstan.
5 MAY, 2011, 12.53AM IST, DHEERAJ TIWARI,ET BUREAU
PSUs may get to call bids, park more with Pvt banks
NEW DELHI: The government may allow central public sector enterprises to call for competitive bids from banks before they decide to park their surplus funds. It may also permit these companies to keep more of their surplus money with private banks.
The move is expected to bring higher returns for state-run firms as competitive bids will ensure they get the best possible deposit rate from banks. The central public sector units and they together have an estimated 3 lakh crore of investible surplus.
The government had barred these companies from inviting bids from banks in 2008 and directed them to park at least 60% of their surplus funds with public sector banks. The measures aimed to help state-run banks tide over the liquidity squeeze.
But the Department of Public Sector Enterprises is now proposing more freedom for public sector units in parking surplus funds.
"We will take up this issue with the finance ministry," said Bhaskar Chatterjee, secretary, Department of Public Sector Enterprises.
State-run companies have argued before the department that the restrictions on bids and limit on how much they can park with private banks causes them a loss of about 3,000 crore every year.
"The finance ministry should look at removing this cap and administrative pricing regime at a time when the central bank itself is favouring decontrolled saving accounts rate for retail customers," said a senior official with a state-run company.
Public sector banks agree that if the restrictions are lifted, they may have to offer higher rates to retain these deposits. They, however, say that the impact is exaggerated as companies shop around informally even now for the best rate.
They said deposit rates could rise between 25 and 30 basis points. One basis point is one-hundredth of a percent. The 3 lakh crore of corpus would at these rates earn about 750 crore to 900 crore extra every year.
A company like Coal India that has almost 36,000 crore in deposits could earn nearly 100 crore extra every year.
But some of the smaller private banks may be ready to pay more for the deposits, as in absence of a large retail network they depend on such bulk deposits for the growth of their business.
"If the credit growth is strong we will compete for funds and the rates could rise by 50-100 basis points," said an official with a private bank.
The current one-year rate for bulk deposits among all banks ranges between 9% and 9.5%.
Though the interest on these funds is more than that on retail deposits of comparable maturity, banks prefer bulk deposits because they tend to be more stable.
"These are stable funds that will stay with us for a year," a bank official said.
Cairn to sell 40% stake in Indian arm to Vedanta Resources for $6.8 bn
Edinburgh-based Cairn Energy Plc on Thursday said it will sell a maximum of 40 per cent stake in its Indian unit to mining group Vedanta Resources for USD 6.8 billion.
Cairn had in August last year announced sale of 40 to 51 per cent stake in Cairn India to Vedanta. The announcement today follows the result of open offer Vedanta Group firm Sesa Goa Ltd made to minority shareholders.
"A total of approximately 155 million Cairn India shares, representing 8.1 per cent of the share capital, have been tendered" in the open offer that closed on April 30, the company said in a press statement.
Sesa Goa had previously bought 10.4 per cent stake in Cairn India from Petronas International Corp of Malaysia. Together with the shares tendered in the open offer, Sesa Goa now has 18.5 per cent stake in Cairn India.
"Cairn and Vedanta have agreed that, for the purposes of the formula set out in the Share Purchase Deed entered into in August 2010; these (Petronas) shares will all be treated as if they had been acquired in the open offer," Cairn said.
"Accordingly, on completion of the transaction, Cairn will sell a stake in Cairn India to Vedanta equivalent to 40 per cent of the share capital, following which Cairn will hold a residual interest of 21.7 per cent of the share capital," it added.
Vedanta is paying Cairn Energy Rs 405 per share, including a Rs 50 per share non-compete fee to keep the Edinburgh-based firm out of India.
Besides USD 6.8 billion it is paying to Cairn Energy, Vedanta group bought 8.1 per cent shares from minority shareholders for USD 1.24 billion and 10.4 per cent stake from Petronas for USD 1.47 billion.
Sesa Goa offered Rs 355 a share to the minority stockholders, after paying Malaysia's Petronas Rs 331 a share.
5 MAY, 2011, 06.37AM IST, HIMANGSHU WATTS & BODHISATVA GANGULI,ET BUREAU
Mukesh Ambani prepares blueprint for RIL; aims to deliver consumer services through digital platform
MUMBAI: The leopard-the sleekest of the great cats that hunt for prey in the African Savannah-is an unlikely source of inspiration for Mukesh Ambani , a man whose name is usually preceded by the adjective billionaire.
But in an interview in his office on the fourth floor of Maker Chambers IV-the traditional seat of power of the business dynasty founded by his father, the late Dhirubhai, in 1958-wildlife enthusiast Ambani says the leopard's hunting skills are a metaphor for what RIL, India's most valuable private company, should take a few lessons from.
"I love the leopard. It sits on top of a tree. It doesn't take any risk. Whenever it sees it can make a kill, it rapidly makes the kill. It just happens in a flash," said Ambani, who claims to have sat observing leopards for hours in many forests.
The skills that Ambani wants RIL to internalise, the brilliant execution that has always been its forte coupled with a new-found emphasis on safety and total regulatory compliance, are part of what Ambani, 54, describes as his mission to "institutionalise" RIL. "After getting the kill, the leopard goes back to the top of the tree and sits there aaram se," he adds.
Much has changed in Reliance since the 1970s, then symbolised by bare-knuckled aggression of the legendary Dhirubhai Ambani who rose from a petrol pump attendant at a gas station in Aden into one of the biggest business tycoons in independent India. As RIL strives to be a multinational, this raw and brazen aggression is fast being replaced by a culture of calculated risk-taking.
Ambani, India's richest and the world's sixth richest, who was in an expansive and relaxed mood, spoke to ET for over two hours on his vision of Reliance over the next decade. He advocates caution for RIL in betting the company's enormous cash pile of `42,000 crore, or $9 billion, into new businesses.
"It's important to keep the balance sheet capability to do this stuff but we shouldn't be in a hurry. We should feel absolutely safe that we are not going to hurt ourselves. And we'll never do it for ego's sake. Our watchword is: does it generate value for our shareholders on a sustainable and long-term basis?"
Analysts have been hungry for guidance on what Reliance plans to do with its mountain of cash and on the future of the KG-D6 basin. The perception of uncertainty has hit the RIL stock, which closed at Rs 947 on Wednesday. It had hit a 52-week high of Rs 1,187 and a low of Rs 841.
Ambani's vision to tap new outlets for RIL's entrepreneurial energies include an intriguing mix of old economy businesses and the newer ones close to the cutting-edge frontiers of technology. He calls these two business buckets 'energy' and 'consumer'. For now, 99% of the revenues come from the energy bucket, but it's likely to change significantly in future. "Energy is a 30-year-old business for us, but consumer is just two years old," he said.
5 MAY, 2011, 06.44AM IST,ET BUREAU
RIL confident of increasing output from KG-D6 block, will cautiously analyse data
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Reliance Industries is confident it will ramp up output from its KG-D6 field, but it will cautiously analyse data for a few quarters with the help of BP before boosting production because quick-fix remedies can damage India`s largest gas reservoir, chairman Mukesh Ambani said.
In an exclusive interview with ET , Ambani also asserted there was much more to Reliance`s exploration business than its trophy asset -- the KG-D6 block.
The Kaveri basin, where natural gas gushed out of the first well the company drilled, and the Mahanadi basin also have "reasonable" amounts of hydrocarbons. He also expects market-related price of gas in the future.
Gas output from Reliance`s D6 block has declined because of technical reasons, raising concerns amongst its key customers, particularly power stations and fertilizer units, many of which have argued that Reliance should quickly boost output. Falling output has also triggered a review of its operations by the petroleum ministry`s Directorate General of Hydrocarbons.
Mukesh Ambani said regulatory authorities seemed receptive to Reliance`s concerns. "I think so. We understand that the government framework is different. They (DGH) have to do their due diligence. We always co-operate and respect their point of view, and see that they understand our point of view also." He said boosting gas output was most critical for Reliance Industries, which had put in risk money in the project.
"If we had not found anything, no customer or regulator would have been concerned, but we would have had to write off our entire investment. Even the approval of our development plan did not mean that the government would give us anything or share in any of the costs. All along it is our money from our balance-sheet that we have put in under the PSC," he said.
He said the government was only a partner in the profits, while Reliance was the sole taker of risk and loss. "Most people don`t understand this. If we don`t produce it is our own money which we don`t recover or on which we don`t get a return. It is only our shareholders who lose. I am surprised that people don`t understand this. It`s not that we have taken money from somebody else. Therefore it is the shareholders of Reliance who are more affected compared to anybody else -- regulators, customers, markets," he said.
Market analysts are hungry for guidance on KG-D6 because revenue from gas sales is a key element in the valuation of Reliance`s shares, which have often lagged the market.
Ambani said there was no need to take rash steps to boost production from the field that Reliance discovered in 2002 and started pumping gas in April 2009. Gas output steadily increased to 60 million metric standard cubic metres a day (mmscmd) but had dropped below 50 mmscmd now, instead of rising to the projected level of 80 mmscmd.
"This is not a project that we`ve built for a mere one or two years. We are in a 15-20 years business. So, in the larger scheme of things, a few quarters do not make too material a difference. We have today the best minds in the industry working on the problems and I have full confidence that we will resolve all the issues. The fields have potential and I am certain that we will make sure we generate more value. That`s what counts," he said
He said the company had observed deviations in reservoir behaviour and given the complexity as well as the challenging deep water environment, the company was bound to take a cautious approach.
"These gas fields, being the first of their kind in India and even elsewhere, we are looking at the best global industry experience and benchmarks. Trying anything thoughtlessly can do far more harm than good and could even be disastrous. We have to be reasonable and careful at every stage of development and production," he said. He said global oil major BP, which is buying a 30% stake in 23 exploration blocks of Reliance Industries, was already assessing the gas reservoir.
"They (BP) are double-validating all our data. They are looking at exactly the same things like us. It`s like the diagnosis of a problem, two doctors look at the same X rays, for a second opinion. The teams are already integrated."
Analysts said Reliance`s approach made sense. Sanjeev Prasad, executive director at Kotak Securities , said that a gas field`s behaviour was hard to predict, unlike a refinery where it is possible to estimate how much fuel would be produced by refining a particular amount of crude. "Oil and gas is a tricky business," he said.
Ambani said Reliance Industries had big plans to invest more in the oil and gas sector, particularly in the Krishna-Godavari, Mahanadi and Kaveri basins as all of them had good potential.
"The good news is that all these three basins are prospective. All these basins have, in our view, not insignificant hydrocarbons. They have reasonable hydrocarbons. That`s one area where we will continuously invest. Obviously we will invest there with BP."
Apart from higher output, helped by BP`s technology, Reliance may also get a higher price for the natural gas it produces. "I think that ultimately all gas prices, including D-6, the ONGC/GSPC discoveries or those from ONGC`s old fields, will have to be market determined."
The government`s gas-allocation policy gives priority to customers in the power and fertiliser sectors. Government officials say that other sectors, considered less important by the authorities, are often willing to pay a higher price of gas than power and fertiliser companies, but they are unable to buy gas because demand exceeds supply.
He said the government will have to justify very strongly why anyone should subsidise private power, fertiliser and other industries from public money. "Any attempt to reduce the subsidy bill through prices goes against the principle of maximising benefit to the parties to the PSC. Market-related pricing is not a principle that can be tampered with under the PSC."
Private firms that discover hydrocarbons under the new exploration licensing policy (NELP) are allowed to sell oil at international rates but in the case of gas, they have to abide by the gas allocation policy although their contracts also allow them marketing freedom.
Ambani said both oil and gas are produced under similar PSCs, with bids invited under the same policy. "Either you say that you`ll get domestic oil also at $40 when the global prices are at $120 or you agree that gas is also sold at market-related prices."
Energy experts say the policy regime for gas reflects the transition from a controlled to a liberal economy.
"Gas utilisation policy was originally introduced as an integral function, as part of the planning system. After liberalisation, gas utilisation policy, which had applied mainly to administered (APM) gas, was worked into the contractual terms of the NELP production sharing regime, which is an illustration of the conflict of objectives that may occur in the process of transition, when market-oriented reforms are attempted by policymakers using a planner's mindset," Anil Jain, a civil servant, and Anupama Sen, a scholar, have argued last month in a paper they co-authored for the Oxford Institute for Energy Studies .
Govt, RIL in proxy fight over KG-D6 output decline: Bernstein
NEW DELHI: Reliance Industries wants a hike in the price of natural gas to resume drilling in the KG-D6 fields , which have seen a sharp drop in output due to drilling of less wells than committed, investment research group Sanford C Bernstein & Co said.
"We believe that RIL doesn't believe it is worth its while to invest additional capital in drilling wells when the price at the beach remains at USD 4.20" per million British thermal units, Neil Beveridge , a Hong Kong-based analyst for Bernstein, said in a report today.
Gas output from the Dhirubhai-1 and 3 fields in the KG-D6 block had steadily risen to 53 million standard cubic metres per day in March last year, but have dropped to below 42 mmscmd now instead of rising to the projected level of 61 mmscmd.
Another 8 mmscmd is produced from the MA field in the same block, taking the total output from KG-D6 to about 50 mmscmd.
The fall in output due to drilling of less wells had earned RIL the ire of the government and the regulator DGH.
While the DGH is pressing RIL to drill more wells outside the main channel that is currently producing, the government is pressuring RIL by directing it to supply gas to priority sectors like fertiliser and power and cut off sales to refineries and petrochemical plants, including its own.
"We believe that this is a proxy fight between the government and RIL," Bernstein Research said.
"Lower production output is primarily a function of the hiatus in development drilling," it said. "While it seems likely that the reservoir is more complex than originally anticipated, performance on a per well basis has not been too dissimilar to the original field development plan.
"Instead, the lower number of development wells drilled (18 versus 22 planned) is primarily the reason for the under-performance," it said.
Bernstein said completion of Phase-I drilling plus initiation of Phase-II drilling, when the total number of wells could reach up to 50, would restore output growth.
"We believe that the natural rate of the decline in production for the KG-D6 wells is around 20 per cent annually, or around 5 per cent per quarter, not substantially different from similar fields around the world," it said.
"In case RIL doesn't take any more action on the drilling of wells and connecting those to the reservoir and continues operating with 18 wells, we expect the production to reach a level of around 37-38 mmscmd by FY'2013," Bernstein said.
The government has asked the company to drill 11 wells by the fiscal-end to take the total number to 31 as had been planned when RIL won approval for investing USD 8.8 billion, S K Srivastava, the director general of the country's oil regulator, had said earlier this week.
RIL will submit a drilling plan in two weeks, he had said on May 2.
3 MAY, 2011, 06.57AM IST,ET BUREAU
Reliance Industries told to drill 11 new wells in FY12 to boost gas output from KG-D6
NEW DELHI: The oil ministry has directed Reliance Industries to drill 11 new wells in the current financial year to boost gas output from its KG-D6 block to 80 million standard cubic meters per day and submit a plan in later this month, the director general of hydrocarbons, SK Srivastava said.
"For government (declining) gas production is main issue. We have asked operator (RIL) about drilling of wells. Operator will submit proposals for drilling wells in a week or two weeks, when we meet next." he told reporters after a meeting with RIL executives that lasted three and a half hours.
The management committee meeting of KG-D6 was also attended by oil ministry officials, Reliance executives and Niko representatives, who is a 10% partner of RIL in the block. The committee, chaired by Srivastava, is constituted for separate oil and gas blocks awarded to energy firms, takes key decisions about expenditure and development of the hydrocarbon asset.
RIL executives declined comments. Srivastava said output from the block had declined to 48 mmscmd on Monday, which was about 50 mmscmd on April 21. As per the government-approved development plan, output from the block should have been 69.8 mmscmd as on date.
DGH expects that drilling of 11 wells this financial year would help to boost gas production to 80 mmscmd as per approved plan. RIL has so far drilled 20 wells against approved number of 22, out of which two are not connected to the production process.
Srivastava said that the government was not looking for any change in approved budget or field development plan for KG-D6. RIL has cited technical problems in the reservoirs for production decline.
Ministry of fertilisers planning to migrate to cash transfers in three phases
The ministry of fertilisers is planning to migrate to cash transfers in three phases. In the first phase, to be completed by December, it will extend its fertiliser management software beyond the 30,000 fertiliser warehouses to 230,000 licenced retailers. In the second phase, scheduled to begin from the next kharif season (June 2012), the nutrientbased subsidy will be re-routed from companies to retailers. The third phase, cash transfers to farmers, will be rolled out once farmers are allotted unique identification (UID) numbers. Each phase is posing large questions, especially related to time.
Take phase one: connectivity to retailers . For this, the ministry needs a software that captures transactions at retailers . It needs a mobile-based application through which retailers can SMS stock positions to the ministry . It also needs to train suppliers, retailers , and district and local officials. The software is being developed by the National Informatics Centre , the government's IT department. The NIC is sourcing additional programmers from Sahara Next, the IT company of the Sahara Group . "The pilots will happen in September," says YK Sharma, deputy director-general , NIC.
September is also when nationwide training will start, says a joint secretary in the fertiliser ministry. The ministry plans to cover the entire country in six months, which seems unrealistic. Lateral Praxis, which designed the ministry's fertiliser-monitoring system, is running a similar pilot in Patna district in Bihar, involving 1,300 retailers and 28 dealers. Says Suniti Gupta, MD: "It took us three to four months to develop the software. And then, another three to four months to stabilise the system and convince all stakeholders to submit data on a daily basis."
That is to be expected, says Himanshu, an assistant professor at the Jawaharlal Nehru University in New Delhi . "Traders will be unwilling to opt into a system that makes their inventory visible to the government," he says. "They will fear the government will use this to increase their taxes." Or, take phase two: channelling the subsidy to retailers. Retailers are expected to inform the government, via mobile phone, about their purchases. There are unknowns here. If the retailer has recovered a part of his working capital from the subsidy, will it encourage hoarding? How does the ministry verify if the data the 230,000 retailers are messaging is correct? Through physical verification? What if the local administration decides to look the other way in exchange for rent? Or, take phase three: cash transfer to farmers. The big question here is identifying beneficiaries.
"Officially 10% and unofficially 30% of India's fields are cultivated by share-croppers (tenants )," says Himanshu. "If the cash goes to the owner's bank account, share-croppers will be left out." Also, if the ministry limits the subsidy for big farmers, how does it affect food security? If fertiliser becomes, say, twice as expensive for big farmers, they might shift to cash crops. Despite the lack of clarity on downstream impacts, the government is pushing ahead with a plan that budgets just 30 days for pilots. "We have wasted too much time talking about pilots, says US Awasthi, managing director, Iffco. "Let India be the pilot." India is a complex country, counters Himanshu. Something that works in Punjab may not work in Vidarbha. "What is the tearing hurry? We have made so many mistakes acting on gutfeel ," he says. "The idea is to find a flawless system."
5 MAY, 2011, 08.36AM IST, M RAJSHEKHAR,ET BUREAU
Government in dilemma to preserve pro-agriculture and dismantle flawed—fertiliser system
The government patched together an intricate-and flawed-fertiliser system over the last 40 years. It now wants to dismantle that monster. The challenge before it is to preserve its pro-agriculture and pro-poor objective, while correcting the flaws that crept in, reports M Rajshekhar
If it all goes to plan, buying or selling fertiliser will never be the same for the 120-odd companies that make up this Rs 1,00,000 crore industry or the 120 million farmers that rely on it. Starting next year, the government will stop its 34-year-old practice of giving the fertiliser subsidy to companies . It will instead begin a step-wise migration to a cash-transfer system, where the subsidy will eventually move directly to the bank accounts of farmers. The government hopes, this transition, which began in 2010, will be the panacea for all the ills that distorted the previous system in its various forms.
Think of a two-storey building that has bloated to five floors, with extensions and alterations, some legal and some illegal. That, in an analogical nutshell, is the fertiliser ecosystem today, deformed by the constant actions-and the reactions-to the system of subsidies that shapes it. Fertiliser subsidies were introduced, in 1977, to increase agri production while insulating farmers from rising prices of a crucial input. So, the government fixed the price of fertiliser, at below market rates, and reimbursed companies for shortfalls in their cost of production. It worked initially. But, in time, it created distortions. Companies cared little for costs as the government was paying. Then, they chose to produce urea over other fertilisers because, being the base fertiliser, it drew the maximum subsidy.
Since urea was also the cheapest, farmers used it more than other necessary fertilisers, harming the soil. Since the subsidy went to the company, every farmer, rich or poor, benefited from it, leaving the government with a hefty bill. The government kept tweaking policy to correct these imbalances , but it left everything fuzzy. It left companies with an inefficient operation, a lopsided product portfolio and reluctance to expand . It left the soil with a disproportionate amount of nitrogen. It left the government's finances in disarray. A complete mess. The government, now, wants to correct all this, by overhauling the subsidy system. The latest reform began in April 2010, when the government ended the cost-plus basis of compensation to companies.
Finance Minister Pranab Mukherjee took it forward in Budget 2011 with the announcement that the government will, sooner rather than later, transfer the subsidy directly to farmer bank accounts. But all this has to be done with a sense of continuity. To stretch the construction analogy, the government wants to give this irregular building a makeover. Except, it has to do this makeover even as people continue to live in the building. It has to work on parallel tracks: on one line, to phase out the old system; on the other, to 'sell' the technology-driven new system without causing a disruption in outcomes for companies, sellers or farmers. And without affecting India's food security or farmer livelihoods.
3 MAY, 2011, 05.24AM IST,ET BUREAU
RBI economists fear prices singeing growth
MUMBAI: Economists at the Reserve Bank of India have for the first time raised the spectre of stagflation , a period in which economic growth slows and prices rise, shaving off the benefits from the past decade's prosperity.
The economy is poised to grow slower this fiscal than the last and inflation may be higher than the previous year, says a document released by the Reserve Bank of India's research team ahead of the annual monetary policy review. "Policy interventions are necessary" to control inflation even though risks to growth remain, it says.
"Episodes of high inflation have typically been followed by slowdown in growth rates," says the Macroeconomic and Monetary Developments report, discarding the Phillips Curve theory which says there's a trade-off between inflation and growth. "Recent evidence suggests that while it may hold for very low levels of inflation," it is not relevant for all times. "At high levels of inflation, growth could be lower, coupled with higher unemployment ," it says.
Inflation is stubbornly high at 9%, despite eight 'baby step' policy rate increases by Governor Duvvuri Subbarao. With prices pinching the common man and even corporate earnings, economists from Citigroup and Goldman Sachs to the International Monetary Fund have cut growth estimates. At the same time, all of them have raised inflation forecast as demand remains strong and global commodity prices zoom due to easy monetary policy by the US. High prices are holding up capacity creation.
An ET poll shows that Subbarao may raise the repo rate, the rate at which RBI lends to banks, 25 basis points to 7%. Reverse repo rate, the interest that RBI pays banks for parking excess funds, may go up by 25 basis points to 6%. A basis point is 0.01 percentage point.
"Stagflation is a distant concern," says Dharmakirti Joshi, principal economist at rating agency Crisil . "It is too early to talk about it, especially since the Reserve Bank is talking about maintaining a trend growth. It probably wants to drive home the point that inflation needs to be tamed to maintain the growth momentum over the medium term."
Professional forecasters have revised their growth forecast for FY12 downward from 8.5% to 8.2% while at the same time have raised the inflation forecast from 6.6% to 7.5%, says the report. There is a moderation in business expectations and some have also indicated a possibility of a slowdown, the report says. Other than inflation, currency risks, global economic instability and geo-political developments in the Middle-East and North Africa (MENA) are also affecting business confidence.
Surveys showed that the Indian manufacturing sector is concerned about the slowdown in overall demand conditions as rising input costs may result in higher prices for final products. Profit margins may also come under pressure with rising input costs. On the external front, though the earthquake in Japan is unlikely to have any significant impact on the economy, the risk of further worsening of the geo-political situation in MENA and a possible turnaround in global interest rate cycle would have to be factored into macro policies. Capital flows are expected to improve financing the current account deficit comfortably. However , the dominance of portfolio equity flows and the decline in FDI raise concern over the stability of capital flows, the central bank has said.
2G scam: SC dissatisfied over tardy tax evasion probe
New Delhi: The Supreme Court today expressed displeasure over the tardy pace of probe by the Income Tax department into the tax evasion cases linked to 2G spectrum case, saying it wanted "results".
A bench of justices G S Singhvi and A K Ganguly directed the department to file a detailed report on action taken by it during the last three years when it got a complaint in this regard and began tapping corporate lobbyist Niira Radia's telephone.
"The IT department must be quicker. This is not a normal case of tax evasion. It (probe) should have been done fast. These are not ordinary cases to be handled in ordinary way," the bench said.
The department, however, defended its ongoing probe saying that the investigation has entered the "fifth layer" and the approach towards the case has not been tardy.
The court, however, was not satisfied and said, "We are not concerned about layers but results."
The bench allowed the IT department to approach the special judge, trying the 2G case, to interrogate company officials who are in judicial custody for their alleged role in the scam.
The bench also agreed to hear a plea by petitioner, the Centre for Public Interest Litigation, for appointment of two independent persons to assist the court in monitoring the probe by various government agencies in the scam. The CPIL had made the plea alleging that "big players are being let off".
The court also assured the petitioners, CPIL and others, that all the persons involved in the scam will be brought to justice irrespective of their wealth, position and power.
"You (petitioner) rest assured that no person, irrespective of their chair and wealth, could get immunity in any way," the bench said, adding "investigation in the case has made some progress which would not not have been possible in normal circumstances."
CBI, meanwhile, contended that no person would be let off as investigation is still going on against Reliance and Tatas for their involvement in the scam.
The investigating agency also submitted that it will file fresh status report on the ongoing investigation in 2G scam after the summer vacation.
The court after hearing all sides posted the matter for further hearing on May 13, when it would delve into the plea for appointment of independent person to assist the court in monitoring the probe.
Source: PTI
Air India strike grounds 1,100 flights, loss mounts to Rs.85 crore
New Delhi: As many as 1,100 Air India flights have been cancelled as nearly half of the national carrier's 1,600 pilots continued their strike for the eighth day Wednesday with losses touching Rs.85 crore, an official said.
"The strike has till now caused a revenue loss of around Rs.85 crore in ticket bookings. We have had to cancel some 1,100 flights in the period," a senior company official told IANS.
According to the official, 221 flights were cancelled Wednesday alone and only four flights to major metro routes were operated. Some 100-odd flights of sister concern budget carrier Alliance Air were deployed.
"The decision to operate only four flights, that too on the metro routes, was taken after a new operations plan came into effect today (Wednesday)."
The airline has re-started ticket bookings for select routes till May 8. Earlier, Air India had cancelled ticket bookings on its entire national network till May 4.
"Our tickets are available till May 8 on select routes. We had stopped bookings to ensure that no backlog remains," the official said.
Air India said it has hired 18 chartered flights (16 domestic and two international) from Kingfisher Airlines and Air Arabia.
"Over 12,000 Air India passengers have been transferred to other domestic and international carriers at the four metros," said a statement by the airline.
Besides, Air India was also looking for inducting more seat capacity on wet lease basis, through request for proposal (RFP) advertisements to be published Thursday.
The airline management showed willingness to restart its talks, and even reinstate the sacked pilots if they called off their agitation.
But the pilots, earlier working for Indian Airlines, were unwilling to concede, unless there was immediate decision on pay parity with their counterparts in Air India.
"We are not fools to first start a strike, then get terminated and then the management comes back saying you will be reinstated, but you should drop the idea of a strike," said Captain V.K. Bhalla, an executive pilot who is supporting the strike.
"The main reason for the strike, to start with, had nothing to do with either our being reinstated, re-recognition of the pilots' union, or for that matter the salary for April that we have earned but has been held," he said.
"It is all about pay parity and arrears. It remains that."
On Tuesday the Delhi High Court issued criminal contempt of court notices to nine office bearers of the Indian Commercial Pilots Association (ICPA) -- the union that has called the strike -- for ignoring a stay order on the agitation last Friday.
"All the nine should remain present in the court while the criminal contempt proceedings shall be carried out May 25," said the two-member bench of Justice B.D. Ahmed and Justice Veena Birbal.
The nine are A.S. Bhinder, Rishab Kapoor, Ramesh Gangadharan, Rajesh Kuyeskar, Ritesh Mathankar, Nitin Mahengade, Anup Jain, Amitesh Ahuja and Sakeel Naqvi.
The management, meanwhile, sought public support for its actions, even questioning if the stir was justified.
"Majority of them (striking pilots) draw over Rs.3.88 lakh per month and up to Rs.7 lakh per month, besides other benefits, including free passages," the state-run airline said in an advertisement released in some newspapers.
"Over 10,000 esteemed passengers (are) stranded daily. Over 40,000 inconvenienced so far," said the airline, "Should financially critical Air India, on government support, succumb to such blackmail?"
The airline has also decided not to pay the striking pilots during the duration of their stir and withdraw the free flights given to them and their families, sources in the carrier said.
Source: IANS
Pak warns India against any Osama-like operation
Pakistan warned India against any Abbottabad-like operation, saying any such "misadventure" would lead to a "terrible catastrophe"
Islamabad: Foreign Secretary Salman Bashir also accused Indian establishment and armed forces of trying to subvert the agenda of Prime Minister Manmohan Singh by making statements which were "a matter of concern".
Any country that attempts to "mimic" the unilateral act of the US will find it has made a "basic miscalculation", Bashir said at the first news conference by a senior Pakistani official on the killing of al-Qaeda chief Osama bin Laden in the garrison city of Abbottabad near here by special US forces on Monday.
"We see a lot of bravado in our own region. There have been statements that have come from across (the border), by senior people from the military and air force, which state that this can be repeated.
"We feel that sort of misadventure or miscalculation would result in a terrible catastrophe," he said in his opening remarks.
He made the remarks in the wake of the statement by army chief Gen V K Singh that Indian forces had the capability to mount raids like the pre-dawn assault by US special forces that resulted in the killing of bin Laden.
Stressing on the military strength of Pakistan, Bashir said if any country would ever act on the assumption that it has a might to unilateralism of any sorts, as far as Pakistan is concerned, will find themselves indulging in misadventure.
"There should be no doubt that Pakistan has adequate capacity to ensure its own defence," he said.
Responding to a query on the remarks of Indian military officials about mounting a raid against leaders of Pak-based terror groups like the Lashkar-e-Taiba, Bashir said such comments are "a matter of concern".
"I only see them as symptomatic of trends and tendencies within the Indian establishment and their armed forces to subvert the agenda of Prime Minister Manmohan Singh. I don't think the Indian leadership would really subscribe to this".
Bashir highlighted the need for a "serious constructive approach" and said Pakistan was engaged in a process of dialogue with India.
"We have had good meetings recently between the Home and Interior Secretaries of the two countries on counter-terrorism and counter-narcotics. We have done everything that we can and we are continuing to do in terms of cooperating to avert the possibilities of terror between our two countries", he said.
Bashir even questioned whether the 2008 Mumbai terror attacks could be described as "an intelligence failure or security failure on the part of India."
He also sought to equate the incident to the questions of "incompetence or complicity" being raised about Pakistani security forces in the context of the US raid that killed bin Laden. Bashir mounted a strong defence of the ISI in the wake of questions raised by US officials about its failure to detect bin Laden even though he was living in a compound located less than a kilometre from the Pakistan Military Academy.
He also sought to dispel the impression that the US raid had taken bilateral relations to a fresh low.
While acknowledging that the unilateral and covert US operation had been successful in eliminating bin Laden, Bashir said it was "fortunate that a major tragedy that could have happened was averted" as the Pakistan Air Force had scrambled two F-16 jets after learning that some helicopters were present over Abbottabad.
Referring to comments by US officials like CIA chief Leon Panetta about the possible complicity of Pakistani security forces or intelligence agencies in sheltering bin Laden, he said such remarks had "continued to surface periodically" to pressure Pakistan to "do more" in the war on terror.
"It's easy to say the ISI or elements within the government were in cahoots with al-Qaeda. This is a false hypothesis and a false charge. It cannot be validated on any account and it flies in the face of what Pakistan and the ISI has been able to accomplish," he contended.
Bashir claimed the ISI had been more successful than even the CIA in capturing or killing al-Qaeda and Taliban elements.
The ISI had shared information on the compound where bin Laden was found since 2009 and had also focussed on Abbottabad since 2004, he said.
Bashir also highlighted issues of international law and human rights that had been raised in some quarters in the wake of the unilateral US raid to kill bin Laden.
The operation had raised "moral and legal issues" in the domain of the UN and there is a need to bring the war on terrorism in line with "requirements of international law," he said.
He said Pakistan and the US should not be "distracted" by incidents like the American raid and instead focus on efforts aimed at ensuring peace, stability and reconciliation in Afghanistan - an indication of Islamabad's desire to play a key role in the endgame in the war-torn neighbouring country.
Source: PTI
Will carry out Abbottabad-type attacks in Pak if needed:US
Washington: The US will again carry out special operations in Pakistan if required like the attack that killed Osama bin-Laden to target high profile terrorists, a top White House official said, asserting this had been "very successful".
Notwithstanding the reaction from Pakistan that America's covert operation against bin Laden was an "unauthorized unilateral action", White House Press Secretary Jay Carney said the Obama Administration would continue with this policy if that country does not act against terror suspects holed up in that country.
The Obama Administration at the same time said the al Qaeda leader would have been taken alive had he surrendered to the US commandos but maintained that its covert operation in Abbottabad deep inside Pakistan on Sunday to kill him was conducted in a manner "fully consistent" with the laws of war.
Carney told reporters the US believes that the 9/11 mastermind was brought to justice in the helicopter raid and that it is "entirely appropriate" given the circumstances.
"It?s a hypothetical, but certainly that method was very effective and was entirely lawful. I certainly wouldn?t want to preclude the use of that method by anything I might say from here," Carney said.
Carney's remark came in response to a question.
"You said that we are not done going after terrorists.
The Pakistani government said in a statement that Sunday?s raid was an 'unauthorized unilateral action.' So how would that statement sort ofaffect any future special operations that might take place for another person believed to be involved with al Qaeda?" Carney was asked.
Carney further said, "We will continue to seek and find and bring to justice terrorists who are plotting to do harm to Americans and our allies."
Q) Are you saying that the US reserves the right to, as the President said back in the campaign, if Pakistan will not act against terror suspects, to go and enter Pakistani territory and act against them?".
A) "Yes. He made very clear during the campaign that that was his view. He was criticized for it. He maintained that that was his view, and by the actions he has taken as President, feels that it was the right approach and continues to feel that way,? the press secretary said."
US President Barack Obama has consistently said that he would go ahead to target high profile terrorists, if he had actionable intelligence and the Pakistani Government was not willing to act.
On the surrender issue, Carney said, "The (Special Operations) team had the authority to kill Osama bin Laden unless he offered to surrender; in which case the team was required to accept his surrender if the team could do so safely."
"If Osama bin Laden had surrendered the US could have brought him into custody safely, then that would have been bringing him to justice as well.
"But(bin Laden) he was brought to justice on Sunday. I think it's entirely appropriate that, given the circumstances, that he was brought to justice in the way he was. The professionals on the ground put themselves at great risk and accomplished theirmission," Carney said.
Carney said the operation was conducted in a manner fully consistent with the laws of war.
"The operation was planned so that the team was prepared and had the means to take bin Laden into custody," Carney said in response to a question. "There is simply no question that this operation was not lawful. bin Laden was the head of al-Qaeda, the organization that conducted the attacks of September 11, 2001.
And al-Qaeda and bin Laden himself had continued to plot attacks against the US. We acted in the nation's self-defense," he said. "The operation was conducted in a way designed to minimize and avoid altogether, if possible, civilian casualties. And that was done at great risk to Americans.
Furthermore, consistent with the laws of war, bin Laden's surrender would have been accepted if feasible," Carney said. US Secretary of State Hillary Clinton meanwhile said the effort to stop al-Qaeda and its syndicate of terror will not end with the death of bin Laden.
Source: PTI
Osama betrayed by Ayman al-Zawahiri?
A Saudi newspaper claims an internal rift led to Osama bin Laden's killing; Zawahiri persuaded Osama to move to Abbottabad
Dubai: Al Qaeda chief Osama bin Laden was betrayed by his deputy Ayman al- Zawahiri who led US forces to his hideout as the two were involved in an intense power struggle, a Saudi newspaper has reported.
The two top al Qaeda men had differences and the courier who led US forces to bin Laden was working and had more loyalties for Zawahiri, al Watan newspaper reported quoting Arab sources.
"The Egyptian faction of al-Qaeda led by Zawahiri was defacto running the militant group, after bin Laden was taken ill in 2004 and they were trying to take full control," the paper said.
The courier was a Pakistani national and not a Kuwaiti as the US suspected and the man knew he was being followed but disguised the fact.
The paper claimed it was Zawahiri's faction which had persuaded Osama to leave tribal areas close to Afghanistan- Pakistan border to take shelter instead in Abbottabad , where he was finally killed by US SEALs on Monday.
The plan to dispose off bin Laden had by a prominent al-Qaeda commander Saif al Adel of Egyptian descent, who returned to Pakistan from Iran, last autumn.
Al Adel had reportedly escaped to Iran escorting Osama's other son and family members after 9/11.
Al-Adel is a member of the majlis al shura of al-Qaeda and a member of its military committee, and he provided military and intelligence training to members of al-Qaeda and Egyptian Islamic Jihad in Afghanistan, Pakistan, and Sudan, and to anti-UN Somali tribes.
Source: PTI
Dawood world's 2nd most wanted man
London: India's most wanted criminal Dawood Ibrahim, an accused in the 1993 Mumbai terror attacks, has emerged as the world's second most wanted man, next only to a Mexican drug lord, after the killing of al-Qaida leader Osama bin Laden.
According to The World's Most Wanted list published by The Guardian, like bin Laden, Ibrahim "may well be based in Pakistan."
"The most wanted man in India heads up a 5,000-strong organised crime network called the D-Company that is involved in everything from drugs trafficking to contract killing in Pakistan, India and the UAE," the publication said.
"He is currently on the Interpol wanted list for organised crime and counterfeiting, besides association with al-Qaida. According to Washington, Dawood uses the same smuggling routes as al-Qaida, and has worked with both the mother organisation and its off-shoot Lashkar-e-Taiba, responsible for the November 2008 Mumbai attacks.
He is also suspected in the 1993 Mumbai bombings that killed 257 people and wounded 713." After the death of Osama, Mexican drug lord Joaquin 'El Chapo Guzman is World's most wanted man.
"El Chapo" or "Shorty" heads an international drug trafficking organisation, the Sinaloa cartel, and became Mexico's top drug kingpin in 2003 after the arrest of his rival Osiel Cardenas of the Gulf Cartel.
Source: PTI
US used never-before-seen stealth choppers on Osama hunt
Washington: US elite Navy SEALs team used top secret, never-before-seen stealth helicopters to swoop down on an unsuspecting al Qaeda Chief Osama bin Laden in his Abbottabad safe haven and shoot him dead.
One of the secret choppers was disabled during the raid by the SEALs in an apparent bid to ensure that the frontline technology did not fall into non-US hands, US media reports said.
The secret choppers have been kept under wraps by Pentagon and their use for the key mission suggests that the American military planners did not want to take any chances in the high-risk raid.
Pentagon officials are still keeping mum on whether or not stealth choppers were used, but ABC News citing American aviators said that photos of what survived the explosion has sent military analysts buzzing about a stealth helicopter programme that was only rumoured to exist.
Former defence officials say the modified variant of the Sikrosky H-60 Blackhawk features extra blades on the tail rotor allowing it to fly significantly less noisily and also has low observable technology similar to that of F-117 stealth fighter to enable it to evade Pakistan air force detection radars.
The US did not warn Pakistan about the raid for fear of leaks, but the helicopters nonetheless managed to fly to the compound from their base in Afghanistan without Pakistan military seemingly being alerted.
The choppers appear to have a modified tail boom to a noise reducing covering on the rear rotors and a special high-tech material similar to that used in stealth fighters.Top former Pentagon officials say the bird is like nothing they have seen before.
"This is a first," they said. "You wouldn't know that it was coming right at you. And that's what's important, because these are coming in fast and low, and if they aren't sounding like they're coming right at you, you might not even react until it's too late... That was clearly part of the success."
In addition to the noise-reducing modifications, a former special operations aviator told The Army Times the general shape of what was left of the craft -- the harsh angles and flat surfaces more common to stealth jets -- was further evidence it was a modified variant of the Blackhawk.
Neighbours of bin Laden in Abbottabad, Pakistan, told ABC News they didn't hear the helicopters during the raid until they were directly overhead. The rotor covering, along with a special rotor design, suppressed the choppers noise.
Source: PTI
Musharraf calls for probe into intelligence failure on Osama
Washington: Surprised that al-Qaeda chief Osama bin Laden was living in an affluent suburb of Islamabad, Pakistan's former military ruler Pervez Musharraf has demanded an investigation into the failure of intelligence agencies to get any clue about this.
"I do understand that because he being there in the town of Abbottabad is surprising. It surprises me also. However, having said that, I am very sure that there is no complicity involved in this," Musharraf told MSNBC.
"I cannot imagine that ISI high command or army were abetting or harboring Osama bin Laden there. That cannot be the case. However, it is a case of acute failure of intelligence, which I think needs to be investigated. And all responsible need to be brought to book," Musharraf said.
The former Pakistani President said it is very shockingly embarrassing that bin Laden was found living such close to the Pakistani military academy.
"We are talking a lot about high walls and barbed wire. In the frontier province, there are a lot of houses with high walls and barbed wire. And therefore they do not arouse such suspicion as they would in the United States or anywhere else," 67-year-old Musharraf said.
"I've seen a lot of interview on the television and a lot of people who are around that house being asked whether they knew that Osama bin Laden was there. They don't know. So, if they didn't know who was living there. I don't believe that. But even if he was there for whatever duration, if the people around couldn't know, it is possible that ISI also did not know. However, I don't want to absolve them of the responsibility of they should have known," he said.
Musharraf also criticised the US, saying it violated Pakistan's sovereignty by carrying out covert operation against bin Laden without informing authorities in Islamabad.
"I do know the US policy that wherever they had declared that as far as Osama bin Laden is concerned, that whenever they can't get the actionable intelligence on him, they will act anywhere in the world. But that was your policy," he said.
"That US policy doesn't go well with the sovereignty of any other country for that matter. Inside Pakistan, the people's sensitivity of even drones violating our sovereignty is against -- now troops coming in, helicopters and taking action is not acceptable to the people of Pakistan, and it does violate our sovereignty," he said.
"In the past, whenever we acted against many, many dozens of al-Qaeda operatives, senior ones, including Khalid Sheikh Muhammad, it was always intelligence cooperation. We cooperated with each other, identified, located these targets.
And it was always Pakistan forces, whether it was law enforcement agencies or police rangers or army -- that is what used to happen," he said.
"Now, in this case, it was not done. Therefore, I would always hear that it was a violation of our sovereignty."
"This is unfortunate. That is a lack of trust... If we are to fight terrorism and extremism together, if we have to defeat Taliban and al-Qaeda, we have to have trust in each other," Musharraf argued.
Source: PTI
I am not an easy target: Kanimozhi
New Delhi: DMK MP Kanimozhi, set to appear before a CBI court tomorrow in connection with the 2G spectrum scam, today said nobody should think she is an "easy target" and asserted that she will fight the case legally.
"I don't believe in speculation. Lets wait and see what happens tomorrow and the court has to decide. I cannot tell you what court should decide or what the court would decide," she told television channels when asked about speculation that she might be arrested.
43-year-old Kanimozhi, daughter of DMK chief M Karunanidhi, said, "If people think I'm an easy target, they are highly mistaken".
Kanimozhi, who has been named in the second charge sheet filed by the CBI in the 2G case, said "It is a very, very serious charge and that I am very clear and I am very sure that we will come out of it and I will come out of it clean".
She was replying to a question on CBI naming her as a co-conspirator in the case.
Asked whether she was prepared for the eventuality of her arrest, she said "if that is what the legal system wants, if that is what the CBI wants then we have to wait and see. We have to fight it whatever it is. We have to fight it legally".
"So we have to stand up and fight in the court. But lets wait and see", the Rajya Sabha MP said.
"We have to face everything legally. We cannot run away from things. We have to respect the court. We have to face it.
We cannot keep running away", Kanimozhi said when asked whether appearance before the court worries her as other chargesheeted persons in the case were in jail.
She has also been asked by the Enforcement Directorate to appear before it in connection with the 2G case under the Prevention of Money Laundering Act.
Observing that she believed in the legal system of the country and that she will abide by it, she said "whatever the court decides, I will accept... I have complete faith in the Indian judicial system and there will be justice one day".
In its supplementary charge sheet filed in a special court on April 25, the CBI has accused Kanimozhi of entering into a criminal conspiracy with former telecom minister A Raja for allegedly accepting illegal gratification through Kalaignar TV -- a channel run by the ruling DMK in Tamil Nadu, in which Rs.200 crore related to the 2G scam was said to have been routed.
Source: PTI
Obama visits Ground Zero: 'We will never forget'
President meets with firefighters, police and then lays wreath at site
- Font:
NEW YORK — On a mission to bury the memory of Osama bin Laden by honoring those who died in the fiery Sept. 11, 2001, attacks, President Barack Obama on Thursday visited firefighters and police who lost colleagues at New York's Ground Zero and then laid a wreath at the site.
"When we say we will never forget, we mean what we say," he said in brief comments to the firefighters and others at the station he visited in New York's theater district. The station lost 15 men during the attacks.
In his brief remarks, the president never mentioned bin Laden's name.
"This is a symbolic site of the extraordinary sacrifice that was made on that terrible day," the president said at Engine 54, Ladder 4, Battalion 9.
At the First Precinct police station in lower Manhattan, the first on the scene on Sept. 11, Obama alluded to bin Laden's killing and said of those who died in the Sept. 11 attacks, "We keep them in our hearts. We haven't forgotten."
At Ground Zero, Obama laid the wreath at the foot of the so-called Survivor Tree, which sustained damage during the attack but was freed from the rubble.
The president closed his eyes and clasped his hands at the outdoor memorial where the twin towers of the World Trade Center once dominated the Manhattan skyline.
He shook hands with 9/11 family members and others dressed in black at the site where the skyscrapers were brought down by planes commandeered by bin Laden's followers. Nearly 3,000 people were killed.
Among those attending the wreath-laying ceremony were New York Gov. Andrew Cuomo, New Jersey Gov. Chris Christie, Mayor Michael Bloomberg and Port Authority Chairman David Samson. Uniformed officers from the FDNY, NYPD and Port Authority also stood at attention along the pathway to the Survivor Tree. Other elected officials from the New York area and a group of 9/11 families also viewed the ceremony.
Former New York Mayor Rudy Giuliani, who led the city in dark days after the attacks, joined Obama during the day.
Obama was greeted by more than 1,000 well-wishers when his motorcade arrived at Ground Zero. Some screamed, jumped up and down, waved and flashed "V" signs with their fingers. The crowd was cordoned off from the site of the wreath-laying.
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The president later held private talks with some 60 families of 9/11 victims.
At the Pentagon, Vice President Joe Biden led a similar wreath-laying ceremony at the site where another hijacked plane crashed into the nation's military headquarters.
Obama's New York visit comes after he sharply rejected calls to release photos of a slain bin Laden so the world could see some proof of death.
The president said he would not risk giving propaganda to extremists or gloat by publicizing grotesque photos of a terrorist leader shot in the head.
To those who keep on doubting, Obama said earlier this week, "You will not see bin Laden walking on this earth again."
His government, meanwhile, insisted the shooting of an unarmed bin Laden during a daring raid in Pakistan was lawful and in national self-defense.
Live blog posts from Ground ZeroObama's New York visit is intended to have a measured tone — not a bookend to President George W. Bush's bullhorn moment, but more somber and private.
White House spokesman Jay Carney called it a "cathartic moment for the American people."
At Ground Zero, Obama visited a bustling construction site that bears little resemblance to the pit that became ground zero in the months after Sept. 11, 2001.
The emerging skyscraper informally known as Freedom Tower is more than 60 stories high now. Mammoth fountains and reflecting pools mark the footprints of the fallen twin towers.
Thousands of people climbed street signs and waved flags in celebration after hearing that bin Laden was killed in Pakistan on Monday, which was Sunday night in New York.
'Father to father'
Jim Riches, whose firefighter son was among the nearly 3,000 people killed at the World Trade Center, planned to meet with the president on Thursday.
"I just want to thank him, hug him and thank him and shake his hand," Riches said. "Father to father. Thank you for doing this for me."
Slideshow: World reacts to death of Osama bin Laden (on this page)The president was handling the moment without being seen as overly celebrating bin Laden's death or aiming to boost his own standing in victory.
"The president is coming here because this is the place where you can really feel what happened that day," said Joelle Tripoul, a tourist visiting Manhattan from Marseilles, France. "And I think he wants to come to say that bin Laden's death marks the end of this stage of our human journey after 9/11."
-
- Bin Laden 'firefight': Only one man was armed
- Obama visits Ground Zero: 'We will never forget'
- Clinton on terror: 'It does not end with one death'
- Profile of bin Laden courier led CIA to its target
- NYT: Shaken by raid, Pakistani army faces new scrutiny
- Aides were using cell phones, officials tell NBC
- Obama won't release bin Laden death photo
- Mystery surrounds wounded bin Laden wife
Al-Qaida terrorists hijacked jets and flew two of them into the World Trade Center's twin towers.
Both buildings collapsed, trapping thousands inside and also claiming the lives of firefighters and others who had rushed to help them.
A third plane slammed into the Pentagon. Officials have speculated that a fourth plane had been heading for the U.S. Capitol or perhaps even the White House when it crashed in Pennsylvania.
A few days later, Bush stood amid the rubble and spoke through a bullhorn.
When one worker yelled, "I can't hear you," the president responded: "I can hear you! The rest of the world hears you! And the people — and the people who knocked these buildings down will hear all of us soon!"
All these years later, Obama said this is no time for gloating.
"We don't need to spike the football," he said as he told CBS he would keep bin Laden's death photos sealed.
Story: Obama decides not to release bin Laden death photoObama invited Bush to join him Thursday, but the former president declined.
Laura Bush told The Associated Press on Thursday that she and her husband were out to dinner Sunday night when they received word that Obama wanted to speak with him. The former president went home to take the call informing him that U.S. military forces had killed Osama bin Laden in a raid of his compound in Pakistan, Laura Bush said.
The former first lady told the AP that her husband declined an invitation to attend Thursday's event in New York because "that's for President Obama to do at this point."
Heightened security put in place in response to the killing of bin Laden will remain for Obama's visit.
Police officials said there are no specific threats against the city but also say they assume bin Laden's "disciples" might try to avenge his death with a terror attack.
"The ceremony will provide some closure to a horrific event," said Harold Schaitberger, president of the International Association of Firefighters, who was invited by the White House to attend Obama's ground zero event.
Pakistan – United States relations
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Pakistan – United States relations are the relations between the Islamic Republic ofPakistan and the United States of America. The United States established diplomatic relations with Pakistan started on October 20, 1947. The relationship since then was based primarily on U.S. economic and military assistance to Pakistan. Pakistan is aMajor non-NATO ally of the United States.
[edit]Military pacts and suspension of aid
[edit]Baghdad Pact
Pakistan was a member of the Baghdad Pact from its adoption in 1955, until the pact's dissolution in 1979. The promise of economic aid from the US was instrumental in creating the agreement. At the time the pact was adopted, Pakistan's relationship with the United States was so friendly that it was called the United States' "most-allied ally" in Asia.[citation needed]
During the Indo-Pakistani War of 1965, the US choose not to provide Pakistan with military support as pledged in the 1959 Agreement of Cooperation. This generated a widespread feeling in Pakistan that the United States was no longer a reliable ally. Though the United States suspended military assistance to both countries involved in the conflict, the suspension of aid affected Pakistan much more severely. Gradually, relations improved and arms sales were renewed in 1975.
[edit]Foreign Assistance Act
In April of 1979 the United States suspended all economic assistance to Pakistan (with the exception of food assistance, as required my the 1977 Symington Amendment to the US Foreign Assistance Act of 1961) over concerns about Pakistan's nuclear program.[1] The US Foreign Assistance Act states that the US will not provide assistance to nations whose governments significantly violate human rights.
[edit]Soviet invasion of Afghanistan
The Soviet invasion of Afghanistan in December 1979 highlighted the common interest of Pakistan and the United States in peace and stability in South Asia. In 1981, Pakistan and the United States agreed on a $3.2 billion military and economic assistance program aimed at helping Pakistan deal with the heightened threat to security in the region and its economic development needs. With U.S. assistance – in the largest covert operation in history – Pakistan armed and supplied anti-Soviet fighters in Afghanistan, eventually defeating the Soviets, who withdrew in 1988.
[edit]Nuclear weapons
Recognizing national security concerns and accepting Pakistan's assurances that it did not intend to construct a nuclear weapon, Congress waived restrictions (Symington Amendment) on military assistance to Pakistan. In March 1986, the two countries agreed on a second multi-year (FY 1988–93) $4-billion economic development and security assistance program. On October 1, 1990, however, the United States suspended all military assistance and new economic aid to Pakistan under the Pressler Amendment, which required that the President certify annually that Pakistan "does not possess a nuclear explosive device."
India's decision to conduct nuclear tests in May 1998 and Pakistan's matching response set back U.S. relations in the region, which had seen renewed U.S. Government interest during the second Clinton Administration. A presidential visit scheduled for the first quarter of 1998 was postponed and, under the Glenn Amendment, sanctions restricted the provision of credits, military sales, economic assistance, and loans to the government. An intensive dialogue on nuclear nonproliferation and security issues between Foreign Secretary Shamshad Ahmadand Deputy Secretary Talbott was initiated, with discussions focusing on CTBT signature and ratification, FMCT negotiations, export controls, and a nuclear restraint regime. The October 1999 overthrow of the democratically elected Sharif government triggered an additional layer of sanctions under Section 508 of the Foreign Appropriations Act which include restrictions on foreign military financing and economic assistance. U.S. Government assistance to Pakistan was limited mainly to refugee and counter-narcotics assistance.
 | This section does not cite any references or sources. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged andremoved. (May 2009) |
[edit]Alliance with U.S.
Prior to the September 11 attacks in 2001, Pakistan and Saudi Arabia were key supporters of the Taliban in Afghanistan, as part of their "strategic depth" objective vis-a-vis India, Iran, Russia and to try to bring stability to Afghanistan after years of civil war following the Soviet withdrawal.
After 9/11, Pakistan, led by General Pervez Musharraf, reversed course under pressure from the United States and joined the "War on Terror" as a U.S. ally. Having failed to convince the Taliban to hand over bin Laden and other members of Al Qaeda, Pakistan provided the U.S. a number of military airports and bases for its attack on Afghanistan, along with other logistical support. Since 2001, Pakistan has arrested over five hundred Al-Qaeda members and handed them over to the United States; senior U.S. officers have been lavish in their praise of Pakistani efforts in public while expressing their concern that not enough was being done in private. However, General Musharraf was strongly supported by the Bush administration – a common theme throughout Pakistan's relations with the U.S. has been U.S. support of military dictators to the detriment of democracy in Pakistan.
In return for their support, Pakistan had sanctions lifted and has received about $10 billion in U.S. aid since 2001, primarily military. In June 2004, President George W. Bush designated Pakistan as a major non-NATO ally,[2] making it eligible, among other things, to purchase advanced American military technology.
Pakistan has lost thousands of lives since joining the U.S. war on terror in the form of both soldiers and civilians, and is currently going through a critical period. Suicide bombs are now commonplace in Pakistan, whereas they were unheard of prior to 9/11. The Taliban have been resurgent in recent years in both Afghanistan and Pakistan. Hundreds of thousands of refugees have been created internally in Pakistan, as they have been forced to flee their homes as a result of fighting between Pakistani forces and the Taliban in the regions bordering Afghanistan and further in Swat. In addition, the economy is in an extremely fragile position.
A key campaign argument of U.S. President Barack Obama's was that the U.S. had made the mistake of "putting all our eggs in one basket" in the form of General Musharraf. Musharraf was eventually forced out of office under the threat of impeachment, after years of political protests by lawyers, civilians and other political parties in Pakistan. With President Obama coming into office, the U.S. is expected to triple non-military aid to Pakistan to $1.5 billion per year over 10 years, and to tie military aid to progress in the fight against militants. The purpose of the aid is to help strengthen the relatively new democratic government led by President Zardari and to help strengthen civil institutions and the general economy in Pakistan, and to put in place an aid program that is broader in scope than just supporting Pakistan's military.
[edit]Aid from the United States since 9/11
Pakistan is a major non-NATO ally as part of the War on Terrorism, and a leading recipient of U.S. aid.[3]
[edit]Post Independence: 1947–1952
After Pakistan's independence by the partitioning of the British India, Pakistan followed a pro-western policy. The Indian government followed a different, non-aligned policy stance, which leaned closer to the Soviet Union rather than the United States of America. Pakistan was seeking strong alliances to counter its neighbour, India. At this time, India was neutral and went on to be a part of Non Aligned Movement.
[edit]Ayub Khan era: 1952–1969
Pakistan joined the U.S. led military alliances SEATO and CENTO. In 1954 the United States signed a Mutual Defense Assistance Agreement with Pakistan. Pakistan, under Ayub Khan military era, enjoyed a strong and healthy relationship with the United States. Pakistan had aligned itself with United States in a cold war with Soviet Union. Khan's government also facilitated a secret military base to United States.
[edit]Partition of East Pakistan: 1969–1977
President Richard Nixon used Pakistan's relationship with China to start secret contacts with China which resulted with Henry Kissinger's secret visit to China in July 1971 while visiting Pakistan. America supported Pakistan throughout the war and supplied weapons to West Pakistan although Congress had passed a bill suspending exporting weapons to the nation. Near the end of the war and fearing Pakistan's defeat by the joint forces of Mukti Bahini and Indian forces, Nixon ordered the USS Enterprise into the Indian Ocean, although it was never used for actual combat. However, the ties were severed after Zulfikar Ali Bhutto assumed the control of Pakistan.[5] In 1974, with India carried out the test of nuclear test near the Pakistan's eastern border, codename Smiling Buddha, Bhutto sought United States to impose economic sanctions in India.[5] Though it was unsuccessful approach, in a meeting of Pakistan's Ambassador to United States with Secretary of StateHenry Kissinger, Kissingers told Pakistan's ambassador to Washington that the test is "a fait accompli and that Pakistan would have to learn to live with it," although he was aware this is a "little rough" on the Pakistanis.[5] In 1970s, the ties were further severed with Bhutto as Bhutto had continued to administer the research on weapons, and in 1976, in a meeting with Bhutto and Kissinger, Kissinger had told to Bhutto, "that if you [Bhutto] do not cancel, modify or postpone the Reprocessing Plant Agreement, we will make a horrible example from you".[6] The meeting was ended by Bhutto as he had replied: For my country's sake, for the sake of people of Pakistan, I did not succumb to that black-mailing and threats.[6]
[edit]Zia era: 1977–1988
In 1979, a group of Pakistani students burned the American embassy in Islamabad to the ground killing two Americans. After the removal and death of Bhutto, the Pakistan's ties with United States were better and improved. Following the Soviet invasion of Afghanistan, ISI and CIA ran multi-billion dollar worth Operation Cyclone to thwart the communist regime as well as defeating Soviets in Afghanistan. Throughout the military regime of General Zia-ul-Haq, the ties and relations were promoted at its maximum point, and United States had given billion dollars of economical and military aid to Pakistan.
In the 1980s, Pakistan agreed to pay $658 million for 28 F-16 fighter jets from the United States; however the American congress froze the deal citing objections to Pakistani nuclear ambitions. Under the terms of the American cancellation, they kept both the money and the planes, leading to angry claims of theft by Pakistanis.[7]
[edit]Democratic governments: 1988–1998
The stage was set for a very tumultuous situation; the 1990s was an era of intense upheaval in Pakistan. Pakistan found itself in a state of extremely high insecurity as tensions mounted with India and Afghanistan's infighting continued. Pakistan's alliance with the U.S. was strained due to factors such as its support for the Taliban and public distancing of the Pakistani government from the U.S. However the U.S. initially supported the Taliban
[edit]Post–September 11
After the September 11 attacks in 2001 in the United States, Pakistan became a key ally in the war on terror with the United States. In 2001, U.S. President George W. Bush strongly encouraged Pakistan government to join the U.S. war on terror, as a result Pakistan joined the U.S. war. Pervez Musharraf acknowledges the payments received for captured terrorists in his book:
We've captured 689 and handed over 369 to the United States. We've earned bounties totaling millions of dollars—Former President of Pakistan Pervez Musharraf
In 2003, the U.S. officially forgave US$1 billion in Pakistani debt in a ceremony in Pakistan as one of the rewards for Pakistan joining the U.S. war on terror. "Today's signing represents a promise kept and another milestone in our expanding partnership," U.S. Ambassador Nancy Powell said in a statement, "The forgiveness of $1 billion in bilateral debt is just one piece of a multifaceted, multibillion dollar assistance package." The new relationship between the United States and Pakistan is not just about September 11,' Powell said. "It is about the rebirth of a long-term partnership between our two countries." However Pakistan support of the U.S. and its war has angered many Pakistanis that do not support it., April 2010
In October 2005, U.S. Secretary of State Condoleezza Rice made a statement where she "promised ... that the United States will support the country's earthquake relief efforts and help it rebuild" after the Kashmir Earthquake.[8]
On 11 June 2008, a U.S. airstrike on the Afghan-Pakistani border killed 10 members of the paramilitary Frontier Corps. The Pakistani military condemned the airstrike as an act of aggression, souring the relations between the two countries.[9] However after the drone attacks in June, President Bush had said 'Pakistan is strong ally '.[10] Western officials have claimed nearly 70%( roughly $3.4 billion) of the aid given to thePakistani military has been misspent in 2002–2007. However U.S-Pakistani relationship has been a transactional based and U.S. military aid to Pakistan has been shrouded in secrecy for several years until recently.[11][12][13][14][15] Furthermore a significant proportion of U.S. economic aid for Pakistan has ended up back in the U.S., as funds are channeled through large U.S. contractors. A U.S. lawmaker also said a large sum of U.S. economic aid has not left the U.S. as it spent on consulting fees and overhead cost.[16][17]
In the November 2008 Mumbai attacks, the United States informed Pakistan that it expected full cooperation in the hunt for the plotters of the attacks.
[edit]United States-Pakistan skirmishes
The United States and Pakistan have experienced several military confrontations on the Durand Line. These skirmishes took place between American forces deployed in Afghanistan, and Pakistani troops guarding the border. These incidents ended and reportedly caused no casualties.
Meanwhile both the countries face many complexities in their spiky type of relations which is indicated also in official statements. Latest development is the statement of Admiral Mike Mullen who blamed that Pakistani spy agency ISI has links with Haqqani Network, a dangerous group belongs to Afghan Taliban. [18]
[edit]Present relations
As on 8 February 2011, U.S. administration is reported to suspend high level contacts with Pakistan and may also suspend economical aid.[19] All this happened when Raymond Davis, an alleged private security contractor, was on an American diplomatic mission in Pakistan shot dead two Pakistani locals last month in what he said was in self-defense after they attempted to rob him. Pakistan acted tough on him despite U.S. demands that he be freed because he enjoys diplomatic immunity.[19]
U.S. Ambassador to Pakistan Anne W. Patterson addressed senior bureaucrats at the National Management College and emphasized that the United States will assist Pakistan's new democratic government in the areas of development, stability, and security.[20] The United States Agency for International Development (USAID) and the United Nations World Food Program, in Pakistan, officially announced the signing of an agreement valued at $8.4 million to help ease Pakistan's crisis.[20]
The CIA had long suspected Osama Bin Laden of hiding in Pakistan.[21][22] India and U.S. have time to time accused Pakistan of giving safe-haven to the Taliban.[23] However, Pakistan has denied these accusations repeatedly.
On 14 September 2009, former President of Pakistan, Pervez Musharraf, admitted that U.S. Foreign Aid to Pakistan was diverted by the country from its original purpose to fighting the Taliban, to prepare for war against neighboring India.[24] The United States government has responded by stating that they will take these allegations seriously.[25] However Pervez Musharraf also said '"Wherever there is a threat to Pakistan, we will use it [equipment provided by the U.S.] there. If the threat comes from al-Qaeda or Taliban, it will be used there. If the threat comes from India, we will most surely use it there".[24]
In late 2009, Hillary Clinton made a speech in Pakistan about the war against the militants where she said "we commend the Pakistani military for their courageous fight, and we commit to stand shoulder to shoulder with the Pakistani people in your fight for peace and security."[26]
On December 1, 2009, President Barack Obama in a speech on a policy about Pakistan said "In the past, we too often defined our relationship with Pakistan narrowly. Those days are over.... The Pakistani people must know America will remain a strong supporter of Pakistan's security and prosperity long after the guns have fallen silent, so that the great potential of its people can be unleashed."[27]
In the aftermath of the thwarted bombing attempt on a Northwest Airlines flight, the U.S. Transportation Security Administration (TSA) has issued a new set of screening guidelines that includes pat-downs for passengers from countries of interest, which includes Pakistan.[28] In a sign of widening fissures between the two allies, Pakistan on January 21 declined a request by the United States to launch new offensives on militants in 2010.[29] Pakistan say it "can't launch any new offensives against militants for six months to a year because it wants to 'stabilizes' previous gains made. However the U.S. praises Pakistan's military effort against the militants.[30] Furthermore Pakistan president, in meeting with the U.S. delegation, had said Pakistan "had suffered a... loss of over 35 billion dollars during the last eight years as a result of the fight against militancy." But the President also said for "greater Pak-U.S. cooperation".
In October 2009, the U.S. Congress approved $7.5 billion of non-military aid to Pakistan over the next five years. In February 2010, U.S. President Barack Obama sought to increase funds to Pakistan to "promote economic and political stability in strategically important regions where the United States has special security interests".[3] Obama also sought $3.1 billion aid for Pakistan to defeat Al Qaeda for 2010.[31]
In February 2010, Anne W. Patterson (U.S. Ambasador to Pakistan) said that the United States is committed to partnership with Pakistan and further said "Making this commitment to Pakistan while the U.S. is still recovering from the effects of the global recession reflects the strength of our vision. Yet we have made this commitment, because we see the success of Pakistan, its economy, its civil society and its democratic institutions as important for ourselves, for this region and for the world."[27]
Between 2002–2010, Pakistan received approximately 18 billion[32] in military and economic aid from the United States. In February 2010, the Obama administration requested an additional 3 billion in aid, for a total of 20.7 billion.[33]
In mid February, after the capture of Taliban No.2 leader Abdul Ghani Baradar in Pakistan the White House 'hails capture of Taliban leader'. Furthemore White House Press Secretary Robert Gibbs said that this is a "big success for our mutual efforts(Pakistan and United States)in the region" and He praised Pakistan for the capture, saying it is a sign of increased cooperation with the U.S. in the terror fight.[34]Furthermore Capt. John Kirby, spokesman for Adm. Mike Mullen, chairman of the Joint Chiefs of Staff, has said 'We also strongly support Pakistani efforts to secure the border region,Kirby added, noting that Pakistan has lost soldiers in that effort.'Mullen, (President Barack Obama's senior military adviser)has made strengthening 'U.S. military relationship with Pakistan a top priority'. The U.S. and Pakistan have a robust working relationship that serves the mutual interests of our people,' Kirby said. "We continue to build a long-term partnership that strengthens our common security and prosperity."[35]
In March, Richard Holbrooke U.S. special envoy to Pakistan had said U.S.-Pakistani relations have seen 'significant improvement' under Obama. Furthermore he also said 'No government on earth has received more high-level attention' than Pakistan[36][37]
In December 2009, President Obama stated "In the past, we too often defined our relationship with Pakistan narrowly, those days are over. Moving forward, we are committed to a partnership with Pakistan that is built on a foundation of mutual interests, mutual respect and mutual trust." This was believed to be an indirect apology to Pakistan for being treated differently and more harshly compared to both India and Israel during the Cold War period.[38]
[edit]Death of Osama bin Laden
U.S. Secretary of State Hillary Clinton at the U.S. State Department stated that "cooperation with Pakistan helped lead us to bin Laden and the compound in which he was hiding". President Obama also said during his announcement of the raid that "US counterterrorism cooperation with Pakistan helped lead us to bin Laden and the compound where he was hiding."
According to a Pakistani intelligence official, raw phone-tap data had been transferred to the United States without being analyzed by Pakistan. While the U.S. "was concentrating on this" information since September 2010, information regarding bin Laden and the compound's inhabitants had "slipped from" Pakistan's "radar" over the months. Bin Laden left "an invisible footprint" and he had not been contacting other militant networks. It was noted that much focus had been placed on a courier entering and leaving the compound. The transfer of intelligence to the U.S. was a regular occurrence according to the official, who also stated regarding the raid that "I think they came in undetected and went out the same day", and Pakistan did not believe that U.S. personnel were present in the area before the special operation occurred.
According to the Pakistani high commissioner to the United Kingdom, Wajid Shamsul Hasan, Pakistan had prior knowledge that an operation would happen. Pakistan was "in the know of certain things" and "what happened happened with our consent. Americans got to know him—where he was first—and that's why they struck it and struck it precisely." Husain Haqqani, Pakistani ambassador to the U.S., had said that Pakistan would have pursued bin Laden had the intelligence of his location existed with them and Pakistan was "very glad that our American partners did. They had superior intelligence, superior technology, and we are grateful to them."
Another Pakistani official stated that Pakistan "assisted only in terms of authorization of the helicopter flights in our airspace" and the operation was conducted by the United States. He also said that "in any event, we did not want anything to do with such an operation in case something went wrong."
Numerous allegations were made that the government of Pakistan was involved in shielding bin Laden. Aspects of the incident that have fueled the allegations include the proximity of bin Laden's heavily fortified compound to the Pakistan Military Academy, that the United States did not notify the Pakistani authorities before the operation, and the alleged double standards of Pakistan regarding the perpetrators of the 2008 Mumbai attacks. Pakistani-born British MP Khalid Mahmood stated that he was "flabbergasted and shocked" after he learned that bin Laden was living in a city with thousands of Pakistani troops, reviving questions about alleged links between al-Qaeda and elements in Pakistan's security forces] U.S. Senator Lindsey Graham questioned, "How could [bin Laden] be in such a compound without being noticed?", raising suspicions that Pakistan was either uncommitted in the fight against Islamist militants or was actively sheltering them while pledging to fight them. A Pakistani intelligence official said that they had passed on raw phone tap data to U.S. that led to the operation but had failed to analyze this data themselves.
U.S. government files leaked by Wikileaks disclosed that American diplomats were told that Pakistani security services were tipping off bin Laden every time U.S. forces approached. Pakistan Inter-Services Intelligence (ISI) also helped smuggle al-Qaeda militants into Afghanistan to fight NATO troops. According to the leaked files, in December 2009, the Government of Tajikistan had told U.S. officials that many in Pakistan were aware of bin Laden's whereabouts.
U.S. senator Joe Lieberman, chairman of the Senate Homeland Security Committee, said "This is going to be a time of real pressure on Pakistan to basically prove to us that they didn't know that bin Laden was there". John O. Brennan, the chief counter terrorism advisor to Obama, stated that it was inconceivable that bin Laden did not have support from within Pakistan. He further stated "People have been referring to this as hiding in plain sight. We are looking right how he was able to hide out there for so long." US Senator Dianne Feinstein stated that "it's hard for me to understand how the Pakistanis ... would not know what was going on inside the compound." and said that top Pakistan officials may be "walking both sides of the street."
Gulf News reported that the compound where bin Laden was killed had previously been used as a safe house by ISI but was no longer being used for this purpose.
[edit]Military aid from the United States
Pakistan is a major non-NATO ally as part of the War on Terrorism. A leading recipient of U.S. military aid, Pakistan will expect to receive approximately 1.3 billion for 2010.[19][39] 25% of the military is subsidized by the U.S. government.[40]
[edit]See also
- Drone attacks in Pakistan
- Foreign aid to Pakistan
- Foreign relations of Pakistan
- Foreign relations of the United States
- Pakistan Ambassador to the United States
- Pakistan Lobby in the United States
- Pakistani American
- War on Terrorism
[edit]References
- ^ "Error: no
|title=specified when using {{Cite web}}". http://www.state.gov/r/pa/ei/bgn/3453.htm#relations. - ^ "US and Pakistan, Not Allies But Enemies". Theworldreporter.com. 2010-10-02.
- ^ a b "Obama seeks boost in Pakistan aid". Reuters. February 1, 2010.
- ^ Warden, Philip (May 4, 1950). "Liaquat Ali Arrives For Goodwill Tour". Chicago Daily Tribune.
- ^ a b c "Zulfikar Ali Bhutto" (html). historycommons.com. Retrieved 2011.
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[edit]External links
 | Wikimedia Commons has media related to: Pervez Musharraf and George W. Bush |
- Jpoint Statement Pakistan-U.S. Strategic Dialogue 2007
- Ties between US and Pakistan Suspended The World Reporter, Sanskar Shrivastava, February 8, 2011
- US-Pakistan Strategic Partnership 2008
- United States-Pakistan Strategic Dialogue
- US-Pakistan relation way forward
- US-Pakistan Relations: Preventing a Second Divorce The Friday Times (August 8, 2003)
- A History of US- Pakistan Relations Jamshed Nazar December 12, 2003
- Pakistan: Friend or Foe? Selig S. Harrison, LA Times, September 5, 2006
- Musharraf's Comments Rattle Pakistanis By Paul Garwood, The Associated Press, September 22, 2006
- Is he for us or against us? The military man with an excellent command of ambiguity, Telegraph, UK, Isambard Wilkinson October 1, 2006
- Leaked British memo accuses Pakistan of tacit support for al-Qaida New York Daily News, James Gordon Meek, September 29, 2006
- Statement By John D. Negroponte In Pakistan
- US promotes strategic political alliance for Pakistan
- Reaffirmation of U.S.-Pakistan Strategic Partnership with New PM Gillani
- United Sates and Pakistan 1940s–1980's
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