Brazil to tighten security after protests

Brazil was caught out by the biggest protests in a generation last June during the Confederations Cup dress rehearsal event, which saw more than one million people take to the streets. PHOTO: AFP/FILE

RIO DE JANEIRO: Determined to rein in protests which have marred the build up and threaten to overshadow the event, Brazilian authorities have vowed to crack down hard on violence in a bid to ensure the World Cup goes off without a hitch, with just 100 days to go.

Brazil was caught out by the biggest protests in a generation last June during the Confederations Cup dress rehearsal event, which saw more than one million people take to the streets.

Some protest groups have vowed to keep on marching to protest the billions being spent on the Cup in a country whose public services need a massive overhaul.

Recent protests have been small, many Brazilians
staying away appalled at how radical anarchists known as Black Bloc have injected a violent edge into proceedings.

President Dilma Rousseff and her administration say violence is totally unacceptable and have vowed to clamp down, if necessary, by sending in the army and police trained in martial arts.

Last week, Brazil said it would deploy 150,000 police and soldiers and also bring in 20,000 private security officers across the 12 World Cup host venues to head off protesters whose slogan is ‘the Cup will not take place’.

“We will not accept this kind of thing; we must nip it in the bud,” insists Rousseff.

“Brazil is prepared to ensure the security of its citizens and visitors. If need be we shall send in the army.”

We are playing to win it: Scolari

Brazil coach Luiz Felipe Scolari has been unequivocal in his aim of delivering the Cup once again; a second home failure after the 1950 nightmare defeat in the tournament decider against Uruguay is simply unthinkable.

“I took on the national side to be champion,” he said in December — repeating the mantra ever since.

At a recent Fifa workshop in southern Brazil he again stated: “We are favourites, we are at home, and we are playing to win it.”

The hosts face South Africa in Johannesburg on Wednesday then Panama and Serbia in early June final warm-ups before embarking on their World Cup campaign, where a giant nation expects 11, if not 23, men to do their duty.

We can leave here reinforced: Ancelotti

“I think we can leave here reinforced, we have drawn a game in which we were losing,” said Ancelotti. PHOTO: AFP/FILE

MADRID: Real Madrid manager Carlo Ancelotti expressed his satisfaction after Cristiano Ronaldo equalised eight minutes from time to ensure that his team remains on top of La Liga thanks to a pulsating 2-2 draw against Atletico Madrid at the Vicente Calderon.

Real remain three points clear of Atletico but Barcelona moved to within a point of the leaders as they beat Almeria 4-1 on Sunday.

Karim Benzema had fired Real into a third minute lead when he converted Angel di Maria’s cross.

However, despite being denied what appeared a penalty when Sergio Ramos seemed to trip Diego Costa, Atletico were in front by half-time thanks to fine strikes by Koke and Gabi.

Another turned down penalty appeal saw Atletico assistant boss Mono Burgos sent to the stands as he tried to confront the referee midway through the second-half.

And Atletico were left to feel hard done by when Ronaldo spun on the edge of the box to drill home a late equaliser.

“I think we can leave here reinforced, we have drawn a game in which we were losing,” said Ancelotti.

“The reaction of the players was good and in general we can be satisfied because Atletico Madrid are a very good team, especially at home.

“We are still three points ahead of them and we are leaders.”

Gabi rues missed chance to top table

Atletico captain Gabi was understandably left enraged as his side missed out on a possible return to the top of the table.

“I leave with a bad taste in my mouth,” he told Spanish TV channel Canal Plus.

“It was a very open game with chances for both teams but I am proud of Atletico.

“We wanted to offer this intensity and desire to the fans and I think that is what we did.

Reciprocation: Govt calls off surgical strikes

“Whatever action the government took was in retaliation to violent attacks,” says Interior Minister Chaudhry Nisar Ali Khan. PHOTO: FILE

ISLAMABAD / SWABI: 

The government on Sunday suspended air raids against the Tehreek-e-Taliban Pakistan and its affiliates, reciprocating the ceasefire announced by the TTP to pave the way for the resumption of the fragile peace process.

“Following the Taliban’s positive announcement on Saturday, the government has decided to suspend air strikes,” said a statement issued by the interior ministry. However, the statement made it clear that the government and the military “reserve the right to respond to violent attacks”.

The decision to halt surgical strikes was taken after Interior Minister Chaudhry Nisar Ali Khan consulted Prime Minister Nawaz Sharif and army chief General Raheel Sharif, officials toldThe Express Tribune.

The interior minister described the Taliban’s move to halt attacks as a ‘positive development.’ Since the Pakistan Muslim League-Nawaz government took over in June last year, it did not carry out any military operation or other action without justification, he said.

“Whatever action the government took was in retaliation to violent attacks,” Nisar said, defending the surgical strikes carried out by the military following the slaying of 23 Frontier Corps troops by the TTP Mohmand chapter.

Defence Minister Khawaja Asif, meanwhile, said the government would keep the option of talks with the Taliban open for the sake of peace in the country. He added that the government would consult all parties and stakeholders before taking any ‘hard measures’ against those who disturb the peace process.

The latest development comes against the backdrop of media speculation that the government and military were contemplating a ground offensive in North Waziristan Agency.

But now the government and the TTP are set to resume the stalled peace talks.

“I think that the possibility of resumption of peace talks has now increased. A ceasefire was the demand of the government and the negotiations committee,” said Rahimullah Yusufzai, a member of the government’s negotiating team.

“But the ceasefire should be effective. If attacks continue, then the conducive environment we are searching for won’t materialise,” he added.

Rustam Shah Mohmand, another member of the government committee, was quoted by a news channel as saying that both sides must exchange prisoners as part of confidence-building measures. A representative of the Taliban committee, meanwhile, told The Express Tribune that they were expecting a meeting with the government negotiators on Tuesday.

“The surgical strikes have really put immense pressure on the TTP,” said a security official adding that the military’s strategy compelled militants to announce unconditional ceasefire.

However, the official, who spoke on condition of anonymity, cautioned that it was too early to draw any conclusions about the prospects of peace deal.

“The TTP announcement may be a ploy to buy more time and avoid a possible operation,” he said.

Opposition Leader in the National Assembly Syed Khursheed Shah also voiced his scepticism about TTP’s ceasefire.

The Taliban on Saturday announced a one-month ceasefire in a bid to resume peace talks, which were suspended by the government following the death of FC men in TTP’s custody.

Govt urged to avoid use of force

A member of the Taliban intermediary committee, Prof Muhammad Ibrahim Khan, has said that the unilateral ceasefire by the Tehreek-e-Taliban Pakistan (TTP) shows that the group was serious in pursuing peace talks.

“The announcement of a ceasefire by the TTP is a positive step. The government should take this move seriously,” said Prof Ibrahim, who is also the chief of Jamaat-e-Islami’s Khyber-Pakhtunkwa chapter, while addressing a ceremony at Kernal Sher Khan Kallay, Swabi, on Sunday. “The ceasefire could be fruitful only if both sides react positively,” he added.

Referring to ongoing surgical strikes, Prof Ibrahim said that the government should avoid the use of force as this could stoke further violence in the country.

He called upon the government to implement the decisions taken at an all-party conference in September, last year, for the restoration of peace in the country.

Hydropower project: Afghanistan raises objections over Dasu project

Urges WB, donor organisations not to finance the project without its written consent. PHOTO: FILE

ISLAMABAD: Afghanistan on Sunday raised objections to the nearly $7.5 billion Dasu Hydropower Project in Khyber-Pakhtunkhwa (K-P) province and urged the World Bank and other international organisations to stop its funding.

Pakistan has already approached the World Bank to start the process for the approval of a $700 million loan for the 4,320-megawatt (MW) project, according to sources in the Ministry of Finance. The project’s construction on the Indus River was expected to start this year.

“The National Security Council of Afghanistan has instructed the country’s Foreign and Finance ministries to convey concerns to the World Bank about Pakistan’s decision to build the power project on Kabul-Indus River in Kohistan district of Khyber Pakhtunkhwa,” the Afghan Foreign Ministry said in a statement on Sunday.

The statement said Pakistan neither informed Afghanistan about the project through diplomatic channels nor there was any agreement between the two countries.

“Afghanistan’s relevant departments do not have any required information and details about the dam and there is a need for a detailed and necessary assessment of the project,” said the Afghan Foreign Ministry.

The Afghan Foreign Ministry called upon all international institutions including the World Bank not to finance and implement the project without the written consent of the Afghan government.

Dasu hydropower project is a run-of-river scheme located 7 km upstream of Dasu village on Indus River, 74 km downstream of Diamer Basha Dam at some 350 km from Islamabad.

Officials say the feasibility study and detailed engineering designs of the project have already been completed. Last month, the government had cleared the Dasu Hydropower Project and the Central Development Working Party (CDWP) constituted a committee to rationalise its cost.

Full-scale North Waziristan operation not in Pakistan’s favour: Imran

PTI chief Imran Khan. PHOTO: NNI

ISLAMABAD: A full-scale military operation in North Waziristan was not in Pakistan’s favour, Pakistan Tehreek-e-Insaf (PTI) chairperson Imran Khan said on Monday.

Imran was speaking to the media in the capital city.

The PTI chief emphasised that the country had been saved from destruction after the Tehreek-e-Taliban Pakistan (TTP) and the government decided to halt armed attacks and resume the peace talks.

“God has given us another chance to solve the issue peacefully and move in the right direction,” Imran remarked.

He reiterated his stance regarding US involvement in terrorism in Pakistan and said America doesn’t want peace in Pakistan until it withdrew forces from Afghanistan.

“The US wants to keep Pakistan Army engaged in skirmishes with the Taliban while it exited Afghanistan,” Imran said.

The PTI chairperson called on the government and the TTP to work together and isolate those elements that are against peace

Sky is the limit: New aviation policy set to revamp PIA

According to PIA, 84% of the airline’s routes are short to medium distance while only 16% are long haul routes (UK, USA, Canada and Europe). PHOTO: FILE.

ISLAMABAD: Prime Minister Nawaz Sharif is set to announce an ambitious new aviation policy next month – one that aims to revitalise the ailing national carrier, Pakistan International Airlines (PIA), while also facilitating travellers and making air safety a primary focus. A conference of international aviation experts will weigh in on the strategy in Islamabad at the end of this month.

The prime minister’s adviser on aviation, Shujaat Azim, met with Nawaz Sharif on Thursday and shared the details of the new plan with the media. “The government seeks to revert PIA into a profit-making institution within two years and enable the carrier to break even in a year’s time,” he said.

Additionally, PIA’s fleet of operational aircraft will swell from 25 to 46. The new aircraft, mostly narrow body fuel-efficient planes, will be inducted into the fleet on a dry lease. “We are not purchasing any new aircraft,” Azim said. “The aircraft will be 2010 models or newer. These aircraft consume 45% less fuel,” he added.

Currently, PIA has 34 aircraft. Of which, nine are not operational, and the average age of the fleet is 18 years – the average age of international airlines’ fleets is usually less than 10 years and Azim said the government aimed to meet this standard for PIA.

PIA’s current status

PIA has four 26-year-old Boeing 747s. Of which, only two are operational. It also owns 12 Airbus A-310s, of which six are in service, purchased 20 years ago. PIA also owns three 26-year-old Boeing 737s. Of which, two are serviceable. Among its latest fleet are nine Boeing 777s and six ATR 42 aircraft, aged 8 and 7 years, respectively.

The fleet of the future

Four new Boeing 777s will join the nine Boeings that PIA already owns. The new plan envisages a refurbishment of the current 777s fleet to the highest level for long haul flights. Additionally, 17 new Airbus A320 20s or Boeing 737 900ERs and four ATR 72-500s with a capacity of 66 passengers will join the six existing ATR 42s (which have a capacity of 44 passengers). The fleet will be revamped by July at the earliest.

Going the wrong way

PIA currently travels to 23 domestic and 30 international destinations. According to Azim, one of the main reasons for PIA’s significant financial losses [Rs87 million per day as parliament was informed) is the use of wrong aircraft for these routes. “Our present fleet is geared for medium and long haul routes,” he explained. “However, 62% of our passengers travel on short haul routes – we have thus been using fuel guzzlers aged 20 to 26 years for short routes.”

According to PIA, 84% of the airline’s routes are short to medium distance while only 16% are long haul routes (UK, USA, Canada and Europe). Saudi Arabia and the Far East, considered medium distance routes, account for 22% of routes. The bulk of traffic heads to the Gulf, regional countries and domestic routes, with a total of 62%.

With no short haul aircraft available to cover these routes, PIA is using 777s and A310 aircraft for these routes. Azim says fuel costs for the older A310 models total $5500 per hour while the newer 737 900ER models consume less than $2500 worth of fuel per hour. Under the new plan, the national carrier will utilise 777 aircraft for long haul routes, A320-232 for medium haul routes and A320, 737NG and ATR aircraft for travel to the Gulf and domestic and regional routes.

According to Azim, Rs72 billion per year will be generated in revenue following the induction of the new aircraft, with 85% of seat utilisation and 12.5 hours of aircraft utilisation per day.

The workforce

PIA currently employs 19,418 men and women, with a ratio of 776 employees per aircraft – one of the highest ratios in the world; the average ratio worldwide is 150 per aircraft. Thus, Azim said the government has decided to conduct a performance audit of the carrier through international firms, in order to circumvent any political pressure. He added that perks such as free air travel for present and past board members, their families and the PIA chairman, have been curbed.

A revamp of facilities

The PM has approved the expansion of Allama Iqbal International Airport in Lahore, Azim said. After the PC-1 is made, it will be placed before the board for approval. Lahore airport will have an ILS Cat 3C system, enabling the aircraft to land at zero visibility. This system, Azim said, will be in place within the next 120 days, well ahead of winter this year, when many flights are diverted from the city due to weather conditions such as fog. This winter, 102 flights were not able to arrive at Lahore airport, thus causing billion of rupees of losses.

Most modernised airports across the world have CAT III Instrument Landing System; while Islamabad’s Benazir International Airport possesses an old version – the CAT 2 system – no other airport in the country has this system so far.

CAT III and CAT II approaches require the use of an auto-land system for the aircraft, which essentially means that the autopilot lands the airplane, while the pilots monitor the aircraft and autopilot closely for any detected anomalies during the approach. CAT III landings on the most modern aircraft do not require the pilots to see the runway prior to landing. Most commercial airliners and crews are certified for CAT III.

Additionally, the government plans to cut down on kiosks in the main lounges in order to create greater space in the lounges, increase the number of counters at departure lounges in Lahore and Islamabad’s airports and introduce passenger-friendly immigration systems. While a new airport will be completed by 2016, Benazir International Airport will be upgraded, with a new taxiway ready in a couple of months.

Strengthening industry: Non-life insurance firms to increase paid-up capital

Out of the total premium income of Rs57 billion for 2012 – the last year for which complete data is available – the market share held by the top three players in the non-life segment was 60%. CREATIVE COMMONS

KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has said it will be ‘appropriate’ to increase the minimum paid-up capital requirement for non-life insurance companies to Rs500 million by 2017.

In a recent report prepared by the SECP’s insurance industry reform committee, the top regulator said the increase in the capital requirement will be the most important step in strengthening the insurance industry.

The SECP had directed non-life insurance companies in 2007 to gradually increase their paid-up capital from Rs80 million to Rs300 million by the end of 2011. However, the capital of 40 companies operating in the country at the end of 2012 varied from company to company.

For example, there were seven insurers at the time with paid-up capital exceeding Rs500 million, four insurers with capital between Rs400 and Rs500 million, 13 insurers with capital between Rs300 and Rs400 million and four insurers with capital of less than Rs300 million.

When the capital requirement was enhanced at the end of 2007, Rs300 million was equivalent to approximately $5 million. Given the depreciation of the rupee against the dollar, however, the same amount was equivalent to less than $3 million by the end of 2012, the report noted.

Paid-up capital forms the basis of financial strength for any insurance company by allowing better risk management and market confidence.

Out of the total premium income of Rs57 billion for 2012 – the last year for which complete data is available – the market share held by the top three players in the non-life segment was 60%. These companies were EFU General Insurance, Adamjee Insurance and Jubilee General Insurance.

If the next two largest players are also included, their collective share in total premium income increases eight percentage points to 68%.

“One of the primary reasons for the current state of affairs of the (non-life) industry was that a majority of insurers had too little resources to invest in the right infrastructure, technology, risk management processes and human resource development,” the report noted.

Emphasising that 65% of companies in the non-life insurance industry hold a market share of only 18%, the report said these insurers generally rely on the smaller market share and do not have financial resources to develop better quality branch network and distribution channels.

Indeed, data from 11 Asian countries shows that the prescribed minimum paid-up capital requirement for non-life insurers in Pakistan exceeds the limit set by Bangladesh and Iran only.

Dollar-denominated policies

The SECP has also recommended that the restriction imposed by the State Bank of Pakistan (SBP) on the issuance of dollar-denominated insurance policies should be reviewed.

“The non-life insurers face immense administrative issues while providing insurance cover to the clients involving foreign direct investment, which requires insurance policies be issued in dollar denomination,” it said, noting that the issue should be taken up jointly by the SECP and SBP.