Looking for the green light: Japanese investment awaiting approval of second IMF review

Federal Minister for Railways Khawaja Saad Rafique has been pursuing Japan International Cooperation Agency (JICA) for a $2.5-billion loan for KCR. PHOTO: FILE

KARACHI: 

Pakistan is not the only country that eagerly awaits the approval of the second review of the International Monetary Fund’s (IMF) Extended Fund Facility (EFF), due by its executive board till the end of March.

The future of the $2.5 billion Karachi Circular Railway (KCR) project, to be funded by Japan, also depends on the IMF’s verdict on Pakistan’s economic performance.

“Japan is considering funding the KCR but it is eagerly waiting for final approval of the second review by the IMF,” Japan Ambassador to Pakistan Hiroshi Inomata told The Express Tribune on Tuesday evening.

When asked how important IMF’s report is, Inomata said that IMF’s green signal is very crucial to Japan and it is aware that the Pakistan government has been attaching a great deal of importance to the KCR as well.

According to the ambassador, besides KCR, Japan and Pakistan can collaborate in energy, food and agriculture sector and infrastructure projects.

Federal Minister for Railways Khawaja Saad Rafique has been pursuing Japan International Cooperation Agency (JICA) for a $2.5-billion loan for KCR. On his visit to Karachi in November last year, he informed that the JICA has promised to extend the required loan for KCR.

The IMF’s staff mission met Pakistan’s top economic leadership in Dubai from February 1-9, 2014 for the second review of Pakistan’s EFF program. After discussions, the IMF said it was encouraged by the overall progress made in pushing ahead with policies to strengthen macroeconomic stability and reviving economic growth.

However, the staff-level understanding reached between the IMF and Pakistani officials was subject to approval of the IMF’s Executive Board. Upon approval, the IMF will release around $550 million to Pakistan.

Pakistan-India trade

We support Pakistan’s efforts to improve bilateral trade between India and Pakistan and hope that the relations of the two neighbours will improve in the near future, said Ambassador Inomata.

“It (liberal trade) is good for this region. We believe neighbours need to get along with each other,” Inomata said on liberal trade between India and Pakistan. “This will also reduce defence spending and the two countries can focus on infrastructure development and other challenges.”

Security issues

Unfortunately, the biggest hurdle to Japanese investment to Pakistan is the security situation of the country, he said, adding that Japan appreciates the focus of the present government on security and hope that it will improve the security situation.

“Japanese investors are waiting for the right time to invest in Pakistan,” he said while replying to a question. “But security concerns in different parts of country are holding them back.”

Infrastructure development: Pakistan invites Bahrain to invest in Gwadar, energy

Malik pointed out that China would invest $33 billion over five years in Pakistan, of which $18 billion would be pumped into infrastructure projects. PHOTO: FILE

ISLAMABAD: 

Pakistan has offered Bahrain an opportunity to invest in Gwadar Port and its energy and mining sectors, encouraging the Gulf monarchy to take advantage of the liberalised investment regime that in return will help Islamabad attract capital to boost its flagging economy.

“Bahrain has expertise in oil and infrastructure projects and Gwadar Port and the energy sector may be attractive for the Gulf country,” said Dr Musaddaq Malik, Special Assistant to the Prime Minister.

He was speaking at the Bahrain-Pakistan Business Forum, held on Wednesday to mark the current visit of King of Bahrain Hamad bin Isa Al Khalifa to Islamabad.

As many as 17 memoranda of understanding were signed between Pakistan and Bahrain and between Bahraini government and Pakistani investors. The agreements were aimed at venturing into new areas and expanding existing facilities set up in Bahrain by Pakistani investors.

Malik pointed out that China would invest $33 billion over five years in Pakistan, of which $18 billion would be pumped into infrastructure projects. He suggested that Bahraini investors should become equity partners of China to explore the opportunities.

He told the investors that they could also set up power plants in Pakistan – an area where the country offered a minimum 17% guaranteed rate of return with sovereign guarantees. In return, Pakistan can provide human capital and invest in the food sector, the areas where Bahrain is in need of external help.

Trade between the two countries stood at just $250 million per annum while in the last six years Bahrain invested only $18.7 million in Pakistan, said Miftah Ismail, Chairman Board of Investment, at the conference.

Ismail asked Bahraini investors to invest in Thar coal and copper and gold mines in Balochistan. The kind of technology and financial resources required to discover coal, gold and copper were missing in Pakistan, leaving the mines unexplored, he said.

The value of Thar coal is estimated at $9 trillion while the size of Pakistan’s economy is only $250 billion. Similarly, he said, copper mines were spread over 30,000 square kilometres and contribution of the mining sector to the economy was less than half a percentage point, 0.4% of GDP to be precise.

Ismail was of the view Bahrainis were more interested in the banking sector and equity market while other sectors of interest could be healthcare, education, food, textile, manufacturing, information and communications technology, industrial, professional and commercial services.

A lot more needed to be done to improve the dismal figures of bilateral trade, suggested Dr Hassan Fakhro, Bahrain’s Minister of Industries and Commerce while speaking at the conference.

He asked Pakistan’s business community to invest in the food sector that offered them immense opportunities.

Commerce Minister Khurram Dastgir offered Bahrain an opportunity to invest in the textile sector in order to get advantage of the 10-year duty-free access to European markets. In the same manner, Pakistan could also benefit from the free trade agreement between Bahrain and the US by establishing industrial units in the Gulf state.

Google Unveils Software for Smartwatches-to-Be

The interface of Android Wear, a version of Google’s mobile operating system for wearable devices, was designed to be “glanceable,” said Alex Faaborg, an Android designer, in a video promoting the software system.

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Google is taking its fight with Apple to the wristwatch.

The search giant on Tuesday unveiled Android Wear, a version of Google’s Android operating system software that is tailored specifically for wearable computers, starting with so-called smartwatches.

Adjusting Android — a breakaway hit as an operating system for smartphones — to work with wearable computers is a pre-emptive move for Google, which entered the smartphone and tablet markets after Apple. This time, it should have a first claim on developing relationships with the many software partners — the apps builders — that help a gadget become popular.

Just as important, consumers should expect to see Android-powered smartwatches before Apple can get into the mix. Apple has been developing a watch for some time, according to people briefed on the project, but it is not clear when it will be released.

“They’re trying to get in front of whatever Apple is going to do,” said Tero Kuittinen, a telecom analyst for the mobile diagnostics firm Alekstra.

For several years, Google and Apple have been waging what analysts call a war of ecosystems: apps, content and services used to lure customers and keep them loyal. The better the apps and content, the more appealing their devices get.

The LG G Watch will be compatible with a wide range of Android phones and will display relevant information when prompted by a voice command.

Apple’s strategy has been to build gadgets based on its own software and then allow outside developers to make apps for a huge audience of iPhone and iPad customers. Google’s approach has been to team up with manufacturers that build devices around Google-made software, which the other companies install free. In the process, the potential market for products based on the Google software is widened.

Google’s Android is by far the most popular operating system for smartphones, but developers of some of the biggest apps, likeInstagram, still tend to build for Apple’s iOS first and Android second.

Developers have said they work on iOS first because it is easier to develop an app for Apple devices than it is to make apps for the many kinds of Android devices on the market. Android phone manufacturers use the same basic software, but many of them have made small changes that can make app developers’ work more difficult.

Google is clearly trying to change that for wearable computers by making its software public before the market takes off.

“It’s important that Google is getting its ducks in a row to be able to offer a new outlet for Android developers, and it’s something that Apple will want to do when it launches into the wearables space, too,” said Jan Dawson, an independent telecom analyst for Jackdaw Research.

That is, if Apple does indeed produce what some have named the iWatch. While numerous sources as well as tech news outlets have reported that Apple is working on a smartwatch, the company has never stated that it has one in development or said when it would be released.

But if — or when — it does release such a product, it will be entering what some believe is the next big market for tech gadgets. Though wearable computers have yet to gain traction among mainstream consumers, they are expected to become popular in coming years. Companies like Samsung Electronics, Sony and Pebble are already making smartwatches. The research firm Gartner estimates that wearable devices, including shoes, tattoos and accessories, will be a $10 billion market by 2016.

One of the first smartwatches running the Google software will be the LG G Watch from LG Electronics, the South Korean electronics maker. Another, the Moto 360, will come from Motorola Mobility, the handset maker that Google recently agreed to sell to Lenovo. Google said it was also working on watches with Asus, HTC and Samsung.

Google collaborated closely with LG on the design and the engineering of the G Watch, according to Jong-seok Park, chief executive of LG’s mobile communications division. LG said that after users say to its watch, “O.K. Google,” followed by a voice command, the screen will present relevant information. That is similar to the voice-controlled system used for navigating Google Glass, the Internet-connected monocle, and Moto X, the smartphone that Motorola developed for Google.

The new Android software for wearable gadgets was opened to app developers on Tuesday. More information will most likely be shared in June at Google I/O, the company’s annual conference for software developers.

Google would not comment on whether manufacturers would have to pay a licensing fee to use Android Wear. Christopher Katsaros, a Google spokesman, said more details would be announced in the coming months.

It was unclear whether Google would eventually make its own watch. But the company has shown a strong interest in hardware, despite a spotty track record. Google Glass, which has been an object of envy among some gadget enthusiasts and the subject of derision among others, is not yet in wide production. And the more successful Google-branded Android devices weren’t made by Google itself, but by partners like Samsung Electronics and LG.

Google’s biggest splash in hardware came in 2012, when it bought Motorola Mobility, the handset maker, for more than $12 billion. But in January, after sales of Moto X, Google’s first flagship smartphone, were disappointing, Google said it would sell Motorola to Lenovo, the Chinese company, for about $3 billion.

Weeks before Google announced that sale, it said it would buy Nest, a hardware company that makes Internet-connected thermostats, for $3.2 billion.

By relying on other hardware makers to make a smartwatch, one thing beyond Google’s control is the physical design. That could be an issue, since some people complain that smartwatches are ugly.

“They’re just not that attractive,” said Mr. Dawson, the telecom analyst. “And they are all clunky, square and large.

India trade: Parliament to hold debate only after cabinet’s nod

Pakistan and India would not sign any new agreement. Instead, the leftover parts of the September 2012 agreement will be implemented. PHOTO: FILE

ISLAMABAD: 

The federal government has decided to hold a debate on Pak-India trade liberalisation in parliament only after the cabinet gives approval and India dismantles barriers, a move aimed at avoiding wider public attention and the criticism it could provoke.

A policy statement on trade liberalisation with India could not be given in parliament unless something concrete came out to share with the parliamentarians, said a senior official of the Ministry of Commerce in background interaction with the media.

The interaction is part of government’s efforts to take all stakeholders into confidence before the cabinet gives the go-ahead for bringing trade relations with the archrival to complete normalcy.

According to the official, the debate in parliament has been linked with approval of a trade deal by the cabinet, which will soon consider a summary of the Ministry of Commerce.

The prime minister had been informed that commercial competitive advantage of Pakistan had been taken care of and the federal cabinet may take a decision, said the official.

As a policy, the government has been avoiding publicity of the trade normalisation process and is not showing any enthusiasm. The premier has also stopped one of his aides from giving any statement until the deal is struck.

The official said India had indicated that it would accommodate Pakistan’s trade interests and allow the trade of goods in which Pakistan had a competitive advantage. It has been told to Indian Commerce Minister Anand Sharma that Pakistan’s top export items should not be placed in the Islamabad-specific sensitive list that India maintains under the South Asia Free Trade Agreement (Safta).

Furthermore, Delhi would charge preferential duties on the export of these items within six months against an earlier agreement to reduce the duties over a period of three years, the official said.

India had hinted at accepting both the demands and these changes would be made through a notification, he added.

At present, 95% of major export goods of Pakistan are covered among 614 items that India has protected through the sensitive list.

“It is the best deal that any Indian government can offer and now the question is should we accept it or wait for the new Indian government to come despite the fact the present offer is lucrative and protects our interests,” he added.

Pakistan and India would not sign any new agreement, the official declared. Instead, the leftover parts of the September 2012 agreement will be implemented. “Now it’s our turn. Under the agreement, Pakistan is supposed to open Wagah border and allow movement of containerised goods across the border.”

He said China had also suggested that until Pakistan was economically strong it could not overcome other problems. “Pakistan’s outstanding strategic issues cannot be resolved until it is internally strong.”

Pakistan would also open other borders for trade with India but the problem was that the country had not yet established Land Port Authority, he added.

The official did not rule out the possibility of reversing some of the decisions by the next Indian government. It will be the sovereign right of the new government which items it wants to keep in the sensitive list.

Pakistan has also decided to trade-off benefits that consumers will get from trade liberalisation by protecting job-intensive but politically well-connected local industries, living up to its reputation of a business-friendly government.

“There is a difficult trade-off between protecting consumer interests and protecting the industries giving jobs to thousands of people. The government has decided to protect finished automobile and pharmaceutical sectors,” he added

Norwegian ship reaches area where Malaysia jet MH370 debris may have been spotted -

Norwegian car carrier Hoegh St Petersburg has reached the area in the southern Indian Ocean off Australia where two floating objects, suspected to be debris from the missing Malaysian jetliner MH370, were spotted, the ship's owner said on Thursday.

The car carrier was on its way from Madagascar to Melbourne when it got a request from Australian authorities to assist in investigating the objects spotted by satellite four days ago in one of the remotest parts of the globe, around 2,500 km (1,500 miles) southwest of Perth.

"We've got a request from Australian authorities to search the area, and we will assist as long as needed," said Kristian Olsen, a spokesman at Hoegh Autoliners.

The Norwegian shipping association told Reuters the ship was the first one to arrive in the area at 0800 GMT.

The larger of the objects measured up to 24 metres (79 ft) long and appeared to be floating on water several thousand metres deep, Australian officials said. The second object was about 5 metres (16 feet) long.

No confirmed wreckage from Malaysia Airlines <MASM.KL> flight MH370 has been found since it vanished from air traffic control screens off Malaysia's east coast early on March 8, less than an hour after taking off from Kuala Lumpur for Beijing.

Read: Flight MH370: Seven leading theories on its disappearance


AMSA handout of Object 1 possibly connected with MH370 search

AMSA handout of Object 2 possibly connected with MH370 search

- See more at: http://www.hindustantimes.com/world-news/malaysianairlinemystery2014/norwegian-ship-reaches-area-where-malaysia-plane-debris-may-have-been-spotted/article1-1197731.aspx#sthash.PcnSDof0.dpuf

No danger of Messi exit, says Faus

The Barcelona vice-president insists that the Argentine is fully committed to continuing his career with the club

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Barcelona vice-president Javier Faus has reiterated that there is no chance that Lionel Messi could leave the club any time soon.

The Blaugrana are eager to tie the Argentine down to a new deal at Camp Nou to make him the highest-paid player in the world, with speculation persisting throughout this season clubs including Bayern Munich and Manchster City could consider a colossal transfer bid for the star.

Faus, however, insists that there is no chance that contract talks could break down to the point where the 26-year-old is forced to consider other offers, despite a publicised dispute with the player earlier in the campaign.

"Leo is not in danger of leaving," he told RAC1.

"[President] Josep Maria Bartomeu said it, he said it and all of the directors have said it. He wants and we want to continue together."

Recent reports have circulated that coach Gerardo Martino will leave Barcelona this summer but Faus was also adamant that the former Newell's Old Boys coach has a future at Camp Nou.

"The club are not aware that he is leaving in June. We are working with the idea that he will continue at the club next season," he said.

Sandro Rosell resigned the Barca presidency earlier this year in the wake of the scandal concerning Neymar's signing and Faus feels his former colleague should be respected for his services to the club.

"He resigned for personal reasons after threats and felt that he was doing Barcelona a favour. He put in great service. And that's not appreciated enough.

Manchester City prepared to table €35m bid for Shaw

Chelsea, Manchester United and Tottenham are also keen on the prodigious 18-year-old but Manuel Pellegrini's men are confident of winning a hotly contested battle

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By Paul Clennam

Manchester City are prepared to blow their Premier League rivals out of the water with a €35 million bid forSouthampton starlet Luke Shaw this summer, Goal understands.

City first registered their interest in January and the subject of Shaw's availability was broached again when Saints boss Mauricio Pochettino attended the Under-21 Premier League clash between the two clubs at the Etihad Stadium earlier this month, with elite development squad coach Patrick Vieira also present.

The Manchester giants were encouraged by the nature of the talks and are now increasingly confident of seeing off a host of rival suitors to secure one of the hottest properties in English football.

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10/1	Man City are 10/1 with Paddy Power to be Luke Shaw's next club

Manuel Pellegrini has earmarked the left-back spot as a key area of improvement for his side, with neither Gael Clichy nor Aleksandar Kolarov convincing the Chilean this season.

Shaw, 18, is regarded as the finest domestic talent of his generation and is battling Ashley Cole for a place in England's World Cup squad, having made his full Three Lions debut against Denmark earlier this month.

Chelsea are long-term admirers of Shaw - a boyhood Blues fan - and possess a geographical advantage over other interested clubs with the youngster's parents residing in Raynes Park, just a short drive from the club's Cobham training base.

However, the Blues' bid to capture the left-back is complicated by the fact that he is represented by Stellar Group, the same management firm who represent Cole, whose contract expires this summer.

City believe Cesar Azpilicueta's impressive performances since displacing Cole at left-back have made Shaw wary of summer move to Stamford Bridge.

David Moyes is also in the market for a new left-back as he continues to make plans for a summer overhaul of his Manchester United squad and has identified Shaw as a top target.

As reported by Goal, United made a €24m move for Shaw on January and the Premier League champions are expected to step up their bid to sign him in the next window.

Tottenham are also in the mix to sign Shaw and have launched a charm offensive on the player's family and representatives, who enjoy a strong relationship with chairman Daniel Levy.

Both Chelsea and United have made if clear through third parties that they are prepared to pay up to €30m to land the Southampton left-back, though City's intent takes the potential bidding to a new level.

Sources expect Shaw to join the club that Stellar advise him to, with all signs point to him leaving St Mary's Stadium this summer.