Getting better: US job creation picks up in February

The figure was still below the 200,000-plus level that would erase doubts about the economy’s strength. ILLUSTRATION: JAMAL KHURSHID

WASHINGTON: 

US job creation picked up pace in February after harsh weather depressed the numbers for two months, somewhat alleviating worries that economic growth had sputtered out during the winter.

The economy generated 175,000 jobs last month, better than most analysts had expected given the persistence of severe storms, the labour department said Friday.

The figure, which came after a series of poor indicators that had led economists to cut their forecasts, was still below the 200,000-plus level that would erase doubts about the economy’s strength.

Coupled with an upward revision to the December and January figures that added another 25,000 jobs to the picture, the February achievement allowed many to believe that the main problem has been the extraordinarily cold and icy storms that have pummeled the eastern half of the US for months.

Trying to uncover: Identity of Bitcoin creator remains mystery

Newsweek had identified 64-year-old Japanese-American engineer Dorian Satoshi Nakamoto as the creator of Bitcoin. PHOTO: REUTERS/FILE

WASHINGTON: 

The world was a little closer to knowing for sure who invented Bitcoin on Friday, despite Newsweek’s claim to have unmasked the enigmatic ‘Satoshi Nakamoto’ behind the computer-coded currency.

The magazine relaunched its print version with an ostensibly huge scoop, identifying the 64-year-old Japanese-American engineer Dorian Satoshi Nakamoto as the creator.

But the mystery remained after the apparently retired model train enthusiast from suburban Los Angeles asked a reporter to buy him lunch and then denied he was the Nakamoto of legend.

“I’m not involved in Bitcoin,” he told the AP reporter.

Hours later, raising more doubts about the Newsweek report, a web forum where ‘Satoshi Nakamoto’ used to share his ideas for the virtual currency and the computing structure behind it unexpectedly received a curt message on the same Nakamoto account.

“I am not Dorian Nakamoto,” the message on the P2P Foundation members discussion board said.

But neither denial quite settled the matter. There is still some mystery about Dorian S Nakamoto himself.

And Joseph Davies-Coates, who established the P2P discussion board, said that while the source of the second denial could easily be the original Satoshi Nakamoto, there was no way to prove that.

Critics bashed Newsweek for making a compelling but not definitive link between Bitcoin and Dorian Nakamoto, and still publishing his picture and one of his home, while writing that he is worth at least $400 million in unspent Bitcoin.

PTCL assets: Two dozen properties cannot be transferred to Etisalat

The government has proposed that PTCL should withhold only 26% of the value of these two-dozen properties, as the country holds majority shares. CREATIVE COMMONS

ISLAMABAD: After years of struggle, Pakistan has finally decided to settle the dispute with Etisalat –the buyer of 26% shares in Pakistan Telecommunication Company (PTCL) – over $800 million outstanding payments by forgoing an amount equal to the value of those properties that it cannot transfer in the name of the company.

After holding a number of meetings over the last many months, Finance and Privatisation Minister Ishaq Dar and his team have reached the conclusion that out of the remaining 63 properties, two dozen of them can never be transferred in the name of PTCL, according to sources in the Ministry of Finance.

During a review meeting held in the finance ministry this week, the government agreed that there were two dozen properties that had changed many hands in the past decades and could not be transferred, the sources said.

These properties were in addition to those that were in litigation. The properties that are in litigation can be transferred once court cases are settled, according to officials of the finance ministry.

Pakistan has now proposed that Etisalat should give a minimum guaranteed amount in the next two months. The officials did not disclose the percentage of the amount but said it was much more than half the total of $800 million.

Etisalat’s board would meet by the middle of this month and consider Pakistan’s proposal to find a solution to the seven-year-old dispute, the sources said.

The government has proposed that PTCL should withhold only 26% of the value of these two-dozen properties, as the country holds majority shares.

Etisalat had placed a $2.6 billion bid for 26% shares in PTCL in 2006, which was about a billion dollar higher than the second highest bid, prompting the company to review its decision.

In order to keep the bid intact, the then government added a new clause to the agreement to transfer all PTCL properties in PTCL’s name. There were about 3,400 properties and all but 131 had been transferred.

In the last seven months, the PML-N government transferred another 68 properties while the handover of remaining properties was also in progress. It went to the extent of bearing the cost on account of property taxes and other fee.

The federal government has added $800 million to this fiscal year’s budgetary and foreign currency reserves’ projections and wanted to get any amount out of it before the close of the year.

While the government expects that it will soon reach an agreement with Etisalat, the dispute is not likely to be resolved in the foreseeable future. According to the PTCL sale agreement, in case of dispute over the value of the property, the highest valuation will be considered as the final price.

Both the parties will present their evaluations, according to Muhammad Zubair, Chairman of the Privatisation Commission with the status of Minister of State. For Zubair, agreeing to principles is more important than the numbers.

The government wanted to reach a conclusion in one to two months and was moving on a crash course basis with the help of provinces, said Zubair while talking to The Express Tribune. He said the commission was in contact with the provinces for early transfer of properties

Gas import: KSEW offers to construct LNG vessels, tugboats

KSEW is the only shipyard and the oldest heavy engineering concern in Pakistan, catering to needs of shipbuilding, ship repair and general heavy engineering. PHOTO: FILE

ISLAMABAD: 

Karachi Shipyard and Engineering Works (KSEW), a shipbuilding company, has offered its services for constructing liquefied natural gas (LNG) carrying vessels and tugboats for the import of gas.

“The Ministry of Defence Production is going to send a summary to the prime minister for approval in this regard,” a source said quoting officials who attended a meeting of the Economic Coordination Committee (ECC) on February 26.

KSEW is the only shipyard and the oldest heavy engineering concern in Pakistan, catering to needs of shipbuilding, ship repair and general heavy engineering.

According to sources, Port Qasim Authority (PQA) has sought financial assistance from the government for the purchase of tug boats and other ancillary works required for operational readiness of the port’s channel for handling LNG import.

Officials told the ECC that Elengy Terminal Pakistan Limited (ETPL) had been declared successful bidder and Sui Southern Gas Company (SSGC) had initialed an LNG services agreement with the bidder on January 17, subject to approval of the ECC.

Under the project, ETPL will handle a minimum of 200 million cubic feet of LNG per day (mmcfd) in the first year and 400 mmcfd in subsequent years for delivery to SSGC. The contract will be for 15 years starting November this year.

The bidder is required to meet all national and international standards by obtaining a licence, permits, authorisation and approval for safe and secure handling of LNG at the port.

The ECC was told that the Ministry of Petroleum and Natural Resources had nominated Pakistan State Oil (PSO) as its designated entity for negotiating an LNG sale-purchase agreement with Qatar’s designated entity Qatar Liquefied Gas Company Limited (Qatargas).

PSO and Qatargas have signed a confidentiality agreement and have also exchanged the draft of Heads of Agreement, which will form the basis for LNG supply. PSO and SSGC will enter into an agreement for LNG offtake under a commercial transaction structure.

ECC members told the meeting about issuance of a letter of comfort by PSO to the effect that in case of failure to import LNG, the company would be obliged to pay capacity charges to ETPL. Some officials were shocked to know and asked how PSO would pay capacity charges when it had no firm deal for LNG import from Qatar.

“The LNG terminal project will cost $200 million and will bring $2 billion in income, this is not a bad deal for the developer,” an official remarked, saying PSO would have to pay $11 million per month to the terminal operator like rental power plants (RPPs) even if the company did not get supplies.

Sources familiar with the development said the terminal operator would recover the entire project cost just in one and a half years.

“Keeping in view the situation, the ECC expressed concern and directed PSO to conduct due diligence as capacity charges would (eventually) be borne by the taxpayers,” the official said.

The Ministry of Petroleum will also explore the possibility of arranging LNG supplies through international competitive bidding. It was explained that it was imperative for SSGC to enter into a services agreement with ETPL as approved by its board of directors for timely completion of the terminal for handling imports by the start of next winter.

Turkey will impose ban

World’s leading video portal YouTube and Social Networking website Facebook are facing ban in Turkey, PakistanTribe.com reported.

According to the reports Turkish Prime Minister Tayyip Erdogan has hinted he may implement a ban on Facebook andYouTube following this month’s elections. It follows the release of leaks online that revealed alleged government corruption and embezzlement of public funds

In an interview on a late night program on private ATV television, Erdogan said he would not let social media companiescapture the nation.

He went onto saying ‘measures would be introduced to crackdown on Facebook and YouTube following the elections this month.’

“There are new steps we will take in that sphere after March 30… including a ban. We are determined on this subject. We will not leave this nation at the mercy of YouTube and Facebook.”

To query about possible of these sites, he said ‘Yes, closure included.’

Social media has been capitalized upon to disseminate links to Erdogan’s leaked telephone conversations that implicate him in corruption and graft. One of the latest leaks to emerge was a telephone conversation between Erdogan and his son where they allegedly discuss how to hide large sums of money.

Turkey’s Ministry of Family and Social Policy has also put forward a bill that would introduce strict limits on the use of the internet and social media.

The legislation stipulates an amendment that would allow government ministers to block websites deemed to infringe privacy, as well as force internet providers to retain information on their users, for up to two years.

Erdogan is sure that the elections later this month will reaffirm the popularity of his Justice and Development Party (AK) with the Turkish people.

Pakistan's mobile gaming industry breaks culture barriers

Small but growing IT industry worth an estimated $2.8 billion is being led by young entrepreneurs. PHOTO: AFP

LAHORE: It’s a city better known for its history and culture, but a new generation of mobile game developers is bringing a slice of Silicon Valley to Lahore.

With open plan offices, mixed gender teams, gourmet catering and an emphasis on a fun atmosphere, the small but growing IT industry worth an estimated $2.8 billion is being led by young entrepreneurs like Babar Ahmed.

Ahmed, 33, left a career as a circuit engineer in Austin, Texas to found Mindstorm Studios in Lahore in 2006 with his brother Faraz.

Today their studio employs 47 people thanks to hits like 2010′s “Whacksy Taxi”, which shot to number one on Apple’s AppStore in over 25 countries; “Mafia Farm” in 2012 and “Cricket Power”, the official game of the 2011 World Cup.

“The idea was to put Pakistan on the gaming world,” said Ahmed, explaining he was tired of “drawing room talk” among expatriates in the US about how something should be done for their homeland.

Mindstorm is one of several games development studios in Pakistan – mainly based in Lahore but also in Islamabad and Karachi – to have prospered with the spread of the smartphone.

“After the iPhone was launched, the definition of what a game is changed overnight. The definition of what a gamer is changed overnight,” said Ahmed.

While traditional “hardcore” games – typically played on home console systems or PCs – need multi-million dollar budgets and teams of dozens of developers, games designed for smartphones need far less start-up capital.

That has allowed countries in eastern Europe, Pakistan, and the Philippines to become prime destinations for software outsourcing, said Jazib Zahir, chief operations officer at Tintash, another Lahore-based studio that provided the back-office for “Fishing Frenzy”, another top-ten hit.

According to the government, some 24,000 people are now employed in software exports – though the figure also includes more traditional areas like financial software and healthcare.

“One of the advantages that Pakistan brings is we do have a critical mass of people with training and aptitude, an interest in developing software and art and combining them,” adds Zahir, who is also a part-time tech journalist.

At We R Play, an Islamabad-based studio based in a converted warehouse on the outskirts of the city, rows of twenty somethings busy themselves on their computers surrounded by colourful posters, plush toys and action figures.

The company was founded in 2010 by Mohsin Ali Afzal and Waqar Azim, with a major emphasis placed on a modern office space.

“We were sure from when we started that we didn’t want cubicles and I wouldn’t have a big office,” said Afzal, who returned from UC Berkeley in 2010.

“We wanted to make sure we’re sitting with everyone. We encouraged everyone to take ownership of their spaces and gave them (money) to get stuff for their tables.”

Workspace and play is also seen as key at CaramelTech, a Lahore studio founded in 2011 by brothers Saad and Ammar Zaeem which is responsible for coding global 2011 mega-hit Fruit Ninja (which had over 500 million downloads) for an Australian studio.

The office has a designated play room complete with pool table, table football, and X-box.

“Every day at 4pm they’re forced to leave their work and go play upstairs. We want that culture where people aren’t only working but also enjoy themselves,” he said.

Also notable in the games studios is near gender-parity, a striking fact in a country where female participation in the workforce has lagged behind for decades.

People are dressed in everything from Western jeans and t-shirts to hijabs. For some, convincing their family they are working in a “real job” wasn’t easy.

“Basically my parents think I play all day and don’t work,” joked Saadia Zia, We R Play’s 24-year-old head of quality assurance department which is tasked with teasing out bugs.

In addition to gaining the trust of employees’ families, the game studios have to contend with a host of issues ranging from frequent power outages to insecurity and civil unrest.

“Electricity does not work. You have to come to terms with that,” said Ahmed of Mindstorm, who plans to move his studio off-the-grid using solar panels.

They also have to contend with faulty telephone lines, security threats and the ubiquitous corruption that dogs life in Pakistan.

“Right outside our gate we had a car being gunned down. That affects you.”

However, the rewards outweigh the risks, he said.

“It’s somewhat like the Wild West. It’s not for everybody. If you expect a level of service from the environment around you, that’s not going to happen. If you can fend for yourself, it’s great.”

Barcelona: Innocent until proven guilty

The Blaugrana have come in for heavy criticism over the controversial transfer of Neymar, but should not be judged until the inquest is over

COMMENT
By Pilar Suarez

When Barcelona paraded Neymar in front of an adoring Camp Nou crowd in June 2013, the Spanish champions hoped he’d still be dominating the news agenda in Spain nine months on. He is. But not in the way the club had hoped.

Neymar’s move from Santos to Catalonia has developed into one of the most talked about transfers of all time. Although there was initial scepticism on some of the finer details of the move, it remained largely under the radar until Barca socio Jordi Cases issued a lawsuit over a lack of transparency, arguing the fee was more than Barca had claimed.

The fall-out was widespread. A Spanish judge decided to investigate Cases’ complaint, prompting Sandro Rosell to resign a day later despite standing by the claim neither he nor the club had acted inappropriately.

Rosell’s successor Josep Maria Bartomeu swiftly attempted to repair some of the damage, holding a press conference at which he went into some of the specifics of the deal and admitted there had been a €40 million payment made to the player’s parents’ company N&N as part of the €57.1m transfer fee.

Again, it caused an outcry. Having then made a ‘complementary’ tax payment of over €13m, Barca remain satisfied they have acted correctly throughout.

“We are calm, we are one of the few clubs who are up to date with tax payments," Bartomeu told RTVE. "I think in this way the club are exemplary.”

Barca believe they will be fully vindicated by the Spanish legal system. “Let us hope that before the courts everything will be found, as expected, to back up our story,” added Bartomeu.

"The contracts we signed with Neymar and with Santos were totally legal. The negotiations, the financial transactions, the contracts ... everything was done within the law.

"We would do exactly the same thing if given the chance to sign Neymar again. The goal was to sign a once-in-a-generation player like Neymar to play with the best in the world: Lionel Messi.”

The club’s position appears clear: don’t judge us now, judge us once the case has been through the courts. It seems a fair and logical approach, yet the whispers continue.


All Smiles | Rosell greets Neymar at his unveiling - months before things turned sour
Goal understands Barca have grown increasingly tired by what they perceive to be a smear campaign instigated by the Madrid press and let’s face it, for right or wrong, mud sticks.

They do have one high-profile supporter, Spanish Secretary of State for Sport Miguel Cardenal, who this week made his position clear.

In an interview with El Pais, Cardenal launched an impassioned defence of Barcelona, stating: “FC Barcelona are not only a key asset of the Spanish brand, but also a reference for sports clubs, committed to home-grown talent as a defining feature.

“I would not be doing honour to the responsibility entrusted to me if I remained silent whilst a pillar of our sport and one which has brought us so much is harassed and accused. That pillar is a part of the heritage of Spanish sport.”

He added: “Hopefully, this media kangaroo court trial, which is so damaging to the image of one of our country’s most prestigious institutions, our sport and for Spain's most admired institutions of our country will come to an end.

“I ask that everyone, in line with our responsibilities, contribute to this for the benefit of Spanish sport, which owes so much to this club.”

Inevitably, and somewhat depressingly, his words prompted accusations of bias in the Madrid media. The fact remains that this is an ongoing investigation, one that needs to be allowed to evolve through the relevant channels.

Only then will we find out whether Barca are guilty of wrongdoing and, until that time comes, they should be offered the presumption of innocence.