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Once billed as symbol of Sino-Pakistan friendship, the Karakoram Highway, which connects China’s Xinjiang Uighur Autonomous Region with nothern Pakistan, is now developing into a source of trouble between the two countries.

The highway, a vital trade route, is turning into a terror link for Islamist movements in western China. Beijing has accused terrorist training camps based in Pakistan of sponsoring attacks and supporting separatist Uighurs in Xinjiang.

The construction of the 800-mile highway was the outcome of a trade deal signed between Pakistan and China in1963. Its construction took 12 years (1966 to 1978) and was of immense geopolitical, economic and military importance. The route passes through the rough terrain of Pakistan’s northern areas, known as Gilgit-Baltistan, connecting it to the ancient silk route, which runs approximately 1,300 km from Kashgar, a city in Xinjiang province, to Havelian in the Abbottabad district of Pakistan. The silk route links China, Pakistan, Afghanistan, Iran and Turkey.

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KARACHI – Prime Minister Yousaf Raza Gilani, in the face of International Monetary Fund criticism of reporting on the country’s economy, has reshuffled senior finance officials in advance of the annual budget.

Abdul Wajid Rana takes over as finance secretary from Waqar Masood, becoming the sixth person to hold the post in the four years of the Gilani-led coalition government. Mumtaz Haider Rizvi is the new acting chairman of the Federal Board of Revenue – the second to hold that post this year. Their primary task is strengthen tax recovery to check a widening fiscal deficit.

Their performance could set a new basis for Pakistan’s relationship with the IMF, following the government’s failure to implement economic reforms under a three-year US$11.3 billion IMF loan program that ended incomplete on September 30.
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THE province of Balochistan needs educational academies, not military garrisons. Instead of strategists and military operations it needs educationists and economic activism. Most importantly, it needs peace, not silence about its predicament.

If the status quo in Balochistan changes, peace will follow. And the status quo in this least-developed and insurgency-hit province can only change with education.

Credible surveys place the province in the lowest rank in terms of the male and the female literacy rates, as well as in the Gender Parity Index. It lags behind the other three provinces in improvements in the net enrolment rate performance in the area of education, an index that can yield great returns in terms of development.

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KARACHI – The International Monetary Fund (IMF) has criticized Pakistan’s economic projections, saying the country’s economic vulnerabilities will further increase in the remainder of the fiscal year ending June.

The fund has projected the country’s economic growth at 3.4%, against the government’s projection of 4.2%, and the fiscal deficit to reach 7% of gross domestic product (GDP), against the government’s revised target of 4.7% for the current fiscal year.

The IMF has criticized the State Bank of Pakistan for pursuing a more accommodative monetary policy and financing the fiscal deficit directly or indirectly through liquidity injections via open market operations. The international lender’s comments came in report following the conclusion last week of its Article IV consultation.
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KARACHI – Pakistan on Tuesday gave an unequivocal assurance to Iran for early implementation of the US$7.6 billion Iran-Pakistan (IP) gas pipeline, a week after the toughest warning issued yet by the United States to Islamabad to shelve the project.

Islamabad and Tehran vowed to intensify work on the IP project during a meeting of the Pakistan-Iran bilateral talks, which began in Islamabad this week, led by visiting Iranian International Affairs Vice President Ali Saeedlou and Pakistan’s Finance Minister Hafeez Sheikh.

President Asif Ali Zardari gave an assurance on Tuesday that his country was committed to the early implementation of the project to meet the country’s ever growing energy needs during his meeting with the Ali Saeedlou. Washington, which has intensified its efforts for increased economic sanctions against Iran, has serious reservations over the IP project.
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