KARACHI – Pakistan has finally succeeded in securing a European Union preferential trade deal nearly two years after the EU proposed a relaxation of tariffs to help the South Asian country’s economy recover after devastating floods.

The World Trade Organization (WTO) on Wednesday approved the much-delayed package covering 75 items at a meeting of its Council for Trade in Goods (CTG) in Geneva. The deal was scheduled to come into effect in January last year, but it was delayed after countries such as Argentina, Brazil, India, Bangladesh and Indonesia raised objections. The tariff changes will enter into force after formal approval by the WTO General Council in March.

Under the package, the total export value of the 75 tariff lines is estimated at US$1.03 billion and the average tariff on these products is around 8.86%, or less than a quarter of the $3.80 billion value of the country’s total global exports.
more…

KARACHI – Pakistan’s fast-growing current account deficit is moving the country ever closer to a repeat of the 2008 financial crisis that led to a request for an International Monetary Fund (IMF) bailout, with repayment of that rescue set to exacerbate its present dire situation.

The State Bank of Pakistan (SBP), in its first quarterly report for the fiscal year 2012 issued at the weekend, said financial flows had almost dried up. The central bank is particularly concerned about the pace at which the current account has deteriorated.

The deficit widened to $2.154 billion in the first six months of the current fiscal year, compared with a surplus of $8 million in the same period last year. A weakening current account is adding to pressure on the rupee, which has fallen to a record low of 90 to the US dollar.
more…

WITH Iran’s threat to close the Strait of Hormuz in response to economic sanctions by the West, the new ‘great game’ has come into play.

Whereas, the closure of the Strait of Hormuz — the crucial energy conduit through which about one-fifth of the world’s oil passes — could cause a big jolt in global oil markets, it could also engage America, China, Iran, India and Pakistan. Gwadar port in Balochistan is likely to emerge as the key node in this.

The strait is one of the most strategically important chokepoints through which some 14 tankers loaded with 15.5 million barrels of crude pass in one day. The US that maintains a naval presence in the Gulf is currently trying to contain Iran’s influence in the strategically important chokepoint, while Iran is fully prepared to defy the US.

more…

Category: Dawn  Leave a Comment

THE military handling of Balochistan is pushing Baloch nationalists into the separatist camp. All the apparent `kill and dump` policy is achieving is to kill any possibility of reconciliation and dump any chance of peace.

The real problem lies in the mindset underpinning the approach to handling the Balochistan crisis the frame of mind created by the national security paradigm that gives the security and intelligence agencies a greater role. Only if this mindset is changed can the disgruntled youth of Balochistan be brought back into the national mainstream.

Balochistan has always remained on the country`s political periphery. Over-centralism, a unitary type of governance and the arbitrary nature of the decision-making process in Islamabad have alienated the young of Balochistan. A province, already at the receiving end, is now receiving the bullet-riddled bodies of its people. The `mysterious kidnappings of political activists and extra-judicial killings are only fanning anti-federation flames.

more…

Category: Dawn  Leave a Comment

OF late in a retaliatory mood, Pakistan has been playing the ‘no more’ song to Washington’s ‘do more’ mantra. After blocking Nato supply lines through its territory and getting the Shamsi airbase vacated, Pakistan has mulled barring US aircraft from using its airspace.

After 10 years of the US-led war on terror Islamabad is seriously considering revisiting its national security paradigm. This period of a decade has been replete with incidents that have constituted a breach of Pakistan’s sovereignty including last November’s deadly Nato attack on Pakistani military outposts that killed 24 Pakistani soldiers. Islamabad in retaliation cut Nato supply lines, boycotted the Bonn conference on Afghanistan and ordered the US to vacate the Shamsi airbase. This is for the first time in 10 years that the country reacted to such an attack so vehemently.

There is so much fuss about the violation of sovereignty today. But the fact is that Pakistan itself allowed the US to violate the country’s sovereignty under covert and clandestine ‘deals’ and ‘understandings’ regarding the security situation after 9/11.

more…

Category: Dawn  Leave a Comment