Saturday, 1 February 2014

Room for investment: Education and then technology, says Intel chief

Country manager Siraj asks govt to set concrete goals and achieve them. PHOTO: FILE
ISLAMABAD: 
Intel Corporation, a leader in silicon innovation, is keen to invest in Pakistan but is looking at the government to set concrete goals and focus on educating the masses before it takes that step.
This was stated by Intel Pakistan’s Country Manager Naveed Siraj in an exclusive interview with The Express Tribune.
The official believed that education should be the government’s priority, without which there would be less scope for Intel to invest in Pakistan.
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“We would start the investment soon but the government needs to set goals — especially in the education sector,” said Siraj. “Look at China and India and see how far they have progressed.”
The Intel official spoke after the conclusion of Intel’s 10th annual National Science Fair in Islamabad on Wednesday, talking about his firm’s corporate social responsibility (CSR) initiatives and about using “Information Technology (IT) as an accelerator for national growth.”
“Countries such as India and China where Intel has invested in wafer fabrication facilities in the recent past have a long history of investing in education. These countries also have a tradition of strong academia-industry linkages.”
Siraj stressed on education as a common denominator for all countries that have progressed, pointing out that a lesson was to be learnt from the examples. “Pakistan’s poor education indicators are a serious cause of concern but they also provide a premise for Intel to invest in the country’s education sector.”
This premise is reflected in Intel Pakistan’s CSR programmes which include teacher training, adult IT literacy and the annual US-based International Science & Engineering Fair (ISEF), for which Pakistani students qualify through an elaborate series of local science fairs.
More recently, Intel Pakistan is focusing on “women empowerment and girls’ education” through its existing CSR projects, Siraj said.
“But, like most private-sector representatives, their efforts will eventually be limited to business objectives. The government will have to do the heavy lifting.
“The private sector needs to continue to invest and increasingly we see the government’s intention to speak with the private sector. But, in the end, it depends on whether the government sets the goals and achieves them.”
He said he was “cautiously optimistic” that the new government will try to improve economic indicators and drive investment.
“When the government starts delivering results, the IT sector would perhaps be the first movers for new investment.
“Technology can be leveraged to achieve education goals but there are some major impediments to technology use. From a Pakistani perspective, our biggest predicament is that a major segment of our population is deprived of devices due to lack of affordability. The lack of universal broadband access adds to the challenges.”
The Intel Pakistan chief said the official Universal Service Fund, which is dedicated for developing telecommunication infrastructure in “unserved and underserved areas,” needs to be made more effective. Similarly, broadband services needs to be pervasive and be offered at competitive prices, Siraj said.
‘Women, rural communities need to be invested in’
The official was of the opinion that the free laptop scheme for high-achieving students in Punjab, which drew criticism when it was first launched, was a step in the right direction with one caveat.
“But there needs to be subsidies for other segments of society especially women and rural communities. The government should keep on encouraging high-achiever students, but also incentivise a larger cross section of society to be able to afford devices.”
Intel-powered tablet PCs were introduced in the Pakistani market in 2013 and Siraj said the response has been “very interesting.” He said the tablet PCs could “have a transformational impact on device users in Pakistan in terms of computing, being able to connect and then get content.”
Device affordability and connectivity can also lead to use of unconventional learning methods, such as web-based learning and Massive Open Online Courses, in Pakistani schools to improve children’s analytical skills.
“All I am really interested in is that a particular teacher in, let’s say, Vehari is able to show online courses to students and preferably each student has an affordable device to follow the lesson.
“Such web-based courses can also be used to impart entrepreneurship skills to students and help them become job creators instead of job seekers, he said.
For the future, Siraj said the arrival of 3G services might open up avenues for technology investment in Pakistan. He said he believes the rural communities could also be a “game changer” for Pakistan’s future IT landscape.
“A lot of IT services are urban-oriented but our agriculture and farm-produce tasks are mostly done manually. Those processes can benefit tremendously from IT services

Govt leaves petrol, diesel prices unchanged

Increases petroleum levy to absorb impact of price reduction. PHOTO: RIAZ AHMED/EXPRESS
ISLAMABAD: The government on Friday kept prices of major petroleum products unchanged for February, contrary to the recommendation for price reduction given by the industry regulator and depriving the consumers of a significant relief.
It increased the petroleum levy in order to absorb the impact of reduction in oil prices.
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A day earlier, the Oil and Gas Regulatory Authority (Ogra) had proposed a major reduction in oil prices in line with the global market trend, but the government left unchanged prices of petrol and high-speed diesel (HSD), the main oil products.
However, prices of kerosene oil and light diesel oil (LDO) were reduced. “Kerosene oil is used where liquefied petroleum gas (LPG) is not available whereas LDO is consumed in industrial units but not on a large scale,” an official commented.
In a summary sent by Ogra to the petroleum and finance ministries on Thursday, the regulator had suggested a reduction of Rs3.04 per litre in the price of petrol, Rs4.48 in high octane blending component, Rs5.27 in HSD, Rs4.50 in kerosene oil and Rs4.28 in LDO.
However, according to sources, Finance Minister Ishaq Dar, who met Prime Minister Nawaz Sharif on Friday to discuss the oil prices, opposed any reduction because of financial constraints being faced by the government.
Dar was of the view that they had already given over Rs5 billion in subsidy by keeping oil prices unchanged in January instead of increasing them, and now the impact of lower prices should be absorbed in the petroleum levy.
Therefore, the prime minister decided to leave unchanged prices of petrol and diesel, which are consumed on a large scale especially in vehicles and agriculture sector.
According to officials, the government has enhanced the rate of petroleum levy to the budgeted level. The levy on petrol stands at Rs10 per litre, diesel Rs8, kerosene oil Rs6, HOBC Rs14 and LDO Rs3.
“On petroleum products, consumers are paying two taxes – general sales tax and petroleum levy,” the official said.
The petroleum levy was imposed to collect money for investment in developing the oil sector, but this had been utilised to bridge the budget deficit, he said.
According to a statement issued by the finance ministry, during meeting with the prime minister, it was decided that prices of kerosene oil would be reduced by Rs1.24 and LDO by Rs1.02 per litre while prices of petrol, HOBC and HSD would remain unchanged for February.
Petrol, HOBC and HSD will be sold at the current prices of Rs112.76, Rs141.23 and Rs116.75 per litre respectively. Kerosene oil will be sold for Rs106.76 per litre compared to Rs108 in January and LDO will be available at Rs100.22 per litre against Rs101.24 earlier.
The official pointed out that after the fresh revision in petroleum levy, the subsidy on petroleum products had come to zero. However, the finance minister claimed that in order to maintain the prices of petrol, HOBC and HSD, the government would have to bear a subsidy of around Rs1 billion

Credit share: NBP leads market in agriculture lending

The State Bank of Pakistan (SBP) has set the agriculture loan disbursement target at Rs360 billion for fiscal year 2013-14. In the first half of the year, banks disbursed Rs159.3 billion of the annual target. PHOTO: FILE
KARACHI: 
It is a pity that the share of agriculture — which employs 45% of the country’s labour force — in the outstanding loans to private-sector businesses was only 8.7% at the end of 2013.
In fact, the lack of enthusiasm on the part of banks is so pronounced that the central bank has to set annual targets for each bank for agriculture loan disbursement.
The State Bank of Pakistan (SBP) has set the agriculture loan disbursement target at Rs360 billion for fiscal year 2013-14. In the first half of the year, banks disbursed Rs159.3 billion of the annual target, meaning they achieved 44.2% of the target in the first six months.
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“Agriculture is one of the most profitable segments for National Bank of Pakistan (NBP),” NBP Executive Vice President Shaheryar Qaisrani told The Express Tribune in a recent interview.
The disbursement target for NBP for 2013-14 is Rs59 billion. It disbursed Rs29.8 billion, or 50.5% of the target, in the first half of the year. The performance of NBP is impressive because only 12 out of 29 banks and other financial institutions could achieve over 50% of their annual disbursement target in the first half.
However, NBP’s performance seems outstanding in the last six months if viewed in absolute terms. The disbursement target that the central bank has set for NBP constitutes one-third of the amount that the big five commercial banks have to lend to farmers in 2013-14.
Other big banks with notable agriculture loan disbursement targets include Habib Bank (Rs38 billion), MCB Bank (Rs32 billion), Allied Bank (Rs28 billion) and United Bank (Rs23 billion).
“The mere fact that the SBP has set the highest agriculture loan disbursement target for us reflects that the central bank trusts the NBP and its wide branch network that exists in all parts of the country,” Qaisrani said.
Indeed, SBP data shows NBP went above its agriculture loan disbursement targets by 3.4%, 6% and 19.5% in the last three years respectively.
Almost 88% customers of NBP’s agriculture segment are based in Punjab while the share of Sindh-based customers is 11%, he noted, adding average loan size is slightly less than Rs200,000.
Bad loans
But what about the non-performing loans (NPL), which typically increase with the rise in credit disbursement? NPLs of NBP in the agriculture segment stood at 4.6% as opposed to the sector-wide average of over 13%.
This is despite the fact that the outstanding loans extended by the NBP amounted to a hefty Rs59.6 billion at the end of December 2013, which is 58.4% of the total outstanding agriculture loans of the big five banks.
In terms of outstanding agriculture loan, the NBP is second only to Zarai Taraqiati Bank (ZTB), which is a specialised bank with outstanding loans of Rs108.7 billion at the end of 2013.
Outstanding loans of the NBP increased Rs13.3 billion, or 28.8%, in 2013 as opposed to the increase of Rs8.3 billion (8.3%) that Zarai Taraqiati Bank recorded over the same year.
“We have brought down our NPLs from over 8% in early 2011 to 4.6% by the end of 2013 despite doubling the amount of outstanding agriculture loans over the same period,” he said, adding the contribution of the agriculture business in the bank’s bottom line is roughly Rs7.8 billion now, in contrast with less than Rs3 billion at the end of 2010.

Official: Juventus sign Osvaldo on loan

Official: Juventus sign Osvaldo on loan
The Argentina-born attacker returns to Serie A after just six months in the Premier League and will continue his career at the Italian champions
Juventus have signed Southampton striker Pablo Osvaldo on loan until the end of the season, with an option to make the move permanent for a fee of €19 million at the end of his temporary spell.

The Serie A champions were keen to add some more depth to their attack as they chase their third consecutive Scudetto and head coach Antonio Conte sees the former Roma man as a valuable addition to his squad.

Osvaldo has fallen out of favour at Southampton following a training ground incident in which he became embroiled in a fight with defender Jose Fonte.

That incident saw him suspended for two weeks and he will now continue his career at Juventus as he aims to play his way into Italy's World Cup squad.

The 28-year-old joined Southampton from Roma at the start of the 2013-14 campaign and has since scored three goals in 13 Premier League appearances.

The striker previously enjoyed spells in Italy at Atalanta, Lecce, Fiorentina, Bologna and Roma, while also wearing the jerseys of Huracan and Espanyol.

He has a contract with Southampton until June 2017.

Barcelona to face Neymar court case in Brazil, lawyer says

Barcelona to face Neymar court case in Brazil, lawyer says
DIS representative Roberto Moreno claims the Catalan club will be hit with a fresh legal dispute in South America and says the company still want 40 per cent of the fee
A lawyer representing supermarket chain DIS claims the company is still owed 40 per cent of Neymar's transfer fee and insists Barcelona will face a new court case in Brazil over the controversial deal.

The 21-year-old's move from Santos to Barca last summer is already being investigated in Spain and led to the resignation of Blaugrana president Sandro Rosell last week.

But the deal is also causing a stir in Brazil, with Santos now saying they will take the player's father to court over the €40m payment revealed by Barcelona (in addition to the €17.1m fee paid to the club) and the Catalan club now look set to face further legal action from third-party owners DIS, who claim they were not paid their share.

"DIS presented a judicial lawsuit against Barcelona, Neymar, Santos and [agent] Wagner Ribeiro," lawyer Roberto Moreno told Catalan station La Xarxa on Friday. "It has been presented in Brazil and now it will be presented to the justice system in Spain."

Moreno also questioned Rosell's resignation and claimed the supermarket chain will continue to fight for the 40 per cent of the fee they say they are still owed.

"If there was no problem with Sandro Rosell, why did he resign? It's very strange," he said.

And he added: "We want that 40% from the Neymar operation. We feel very cheated by Neymar's father and by Neymar - very cheated and very sad.

"We had a lot of affection for his father and we helped both Neymar and his family. Real Madrid's offer was much better than Barca's, but DIS was never called to any of the negotiations with Madrid or Barca.

"They did it all behind our backs."

Friday, 31 January 2014

US downgrades India’s air safety ranking, brings it below Pakistan

US Federal Aviation Administration downgraded India after conducting an audit last year of the country's aviation regulator that found 31 issues of safety concern. PHOTO: REUTERS/FILE
NEW DELHI: US aviation authorities have downgraded India’s safety ranking in a “disappointing” and “surprising” move, below that of Pakistan, with fears that it will hit air links between the countries, India’s aviation minister said Friday.
The US Federal Aviation Administration downgraded India after conducting an audit last year of the country’s aviation regulator that found 31 issues of safety concern, a ministry statement said.
The issues include the need for more and better trained full-time inspectors employed by the regulator tasked with carrying out safety checks on all types of aircraft and helicopters in India, it said.
“They have downgraded us to category 2. It is very disappointing and also surprising,” Aviation Minister Ajit Singh said at a press conference in New Delhi.
The FAA has “determined that India at this time is not in compliance with the international standards for aviation safety oversight,” according to FAA notes given to Indian regulator the Directorate General of Civil Aviation (DGCA).
The rating downgrade brings India below Pakistan and on a par with countries like Bangladesh, Ghana and Indonesia, according to FAA.
The downgrading effectively bars Air India and Jet Airways from increasing flights to the US, and additional safety checks will now be imposed on existing flights to the United States, the FAA’s website shows.
Currently, Air India has 21 flights to the US per week while Jet Airway flies seven.
Indian airlines will also have to snap ties with US airlines, according to the website, but DGCA chief Prabhat Kumar said the downgrade would not affect the code-share agreement.
Jet has a code-share agreement with United Airlines currently, while Air India is joining Star Alliance.
Singh said 95 per cent of issues raised by the FAA have been resolved, while the remainder were expected to be resolved by March, adding it was the first time India had suffered a downgrade.
“They (FAA) should have based their decision on the situation now,” said Singh, adding that the FAA’s downgrade was based on air safety in September.
The downgrade is the latest controversy between the US and India, which are attempting to put diplomatic relations back on track after outrage in December over the arrest and strip search of an Indian envoy in New York.
The envoy, Devyani Khobragade, was arrested on charges of visa fraud involving her domestic servant and lying about how much she paid her. Khobragande denied any wrongdoing and eventually returned to India after a deal was struck between the two nations to mend their relations.
In a bid to head off the downgrade, the government announced two days ago that 75 new positions would be created in the DGCA to carry out safety inspections.
“This is an important step that will aid in India regaining its former Category 1 status in the future,” the FAA said in its notes to the DCGA and released by the minister.
“The United States Government commends the Indian government for taking these important actions and looks forward to continued progress by Indian authorities,” the FAA said.
India’s aviation sector has grown enormously in the last decade, as the 1.2-billion population becomes more affluent, boosting the number of international and domestic passengers.
But the sector has been hit in the past by safety scandals, including over fake pilots flying with fake qualifications in 2001.
Police made several arrests over the scandal involving cases of pilots exaggerating their flying time while training and other irregularities.
In one such case, a captain who made several bad landings was found to have submitted faked paperwork to gain her licence.
Experts said they expected the downgrade as the aviation regulator had failed to address earlier FAA warnings in a given period of time.
“The decision of the FAA to downgrade is both embarrassing and disgraceful … but one could see it coming,” former Air India executive director Jitendra Bhargava told AFP. “The DGCA should take this as a wake up call.”

Microsoft ready to name Satya Nadella new CEO, report says

After months of searching, Microsoft's board is said to be close to naming Steve Ballmer's replacement. Bill Gates also may be out as chairman.
Is Microsoft's long search for a new CEO about to end? A Bloomberg report says that the company's board is preparing to name Satya Nadella as Microsoft's next CEO. It also says the board may decide to replace Bill Gates as chairman.
If Nadella, now in charge of cloud computing, is about to become only the third CEO in Microsoft's 38-year history, the company will put in charge the sort of brainy technologist who is closer to the Gates mold than the hard-charging salesman that is Steve Ballmer. Nadella is in charge of the organization responsible for building Microsoft's Cloud OS, which powers Office 365, Bing, SkyDrive, Xbox Live, Skype, Dynamics, and enterprises around the world.
The report, quoting "people briefed on the process," said that John Thompson, Microsoft's lead independent director, is being considered as a possible chairman to replace Gates.
CNET reported on Wednesday rumblings that a decision could come down sometime within the next couple of weeks. But the search to find Microsoft's next boss has become the tech equivalent of "Waiting for Gadot." Nadella has figured in rumors as a possible candidate for several months. Earlier Thursday, CNET reported that he was about to get he nod, citing Recode's Kara Swisher. What's new this time around is the scenario in which Thompson would step into the role of chairman and Gates would officially sever his official connections with the company he founded with Paul Allen.
Insiders and executive recruiters say that the appointment of a new CEO could involve the departure of both Gates and Ballmer. They say a new CEO might be uncomfortable taking steps that reversed decisions carried out under the Gates-Ballmer regime if the duo still sat on the board.
Nadella's previous stints over the last couple of decades were as president of the Server and Tools business, senior vice president of R&D for the online services, and vice president of the Microsoft Business division