Right direction: Privatisation Commission chairman rallies support

State-owned companies like Pakistan International Airlines and Pakistan Steel Mills have lost between Rs400 billion and Rs500 billion of public money. PHOTO: FILE

KARACHI: Opening trade with New Delhi and privatisation of loss-making state-owned enterprises is the only way forward, Minister of State for Privatisation and Privatisation Commission (PC) Chairman Mohammad Zubair told the audience during the 2nd CIO Summit at Marriot Hotel on Tuesday.

The CIO Summit is an annual event that gathers Pakistani as well as international experts to discuss the latest trends in IT. However, Zubair, also the event’s chief guest, utilised the platform to build the case for open trade with India and the job he was trusted with by the premier: privatisation of state-owned companies like Pakistan International Airlines and Pakistan Steel Mill for example that lose between Rs400 billion to Rs500 billion of public money.

His speech was preceded by a presentation about the need for data centres and smart cities, but the privatisation minister changed the overall mode by criticising the audience – as well as the whole nation – for being obsessed with our eastern neighbour.

Referring to a meeting held at the Prime Minister House two weeks ago, Zubair said there was a major breakthrough on trade liberalisation with India but some officials talked about the possible backlash of going ahead with the decision. “We have to change this mindset as we can’t go anywhere without trading with India,” he said.

Making full use of the platform, the minister also pushed the government’s agenda for privatisation of the loss-making public entities.

Borrowing an analogy from cricket, Zubair said Imran Khan was a very good leader and an outstanding cricketer but it was a team effort that won the 1992 World Cup – the other 10 players played an important role. Likewise, he said, fixing the country’s ailing economy is a team effort.

All the country’s social indicators – tax as percentage of GDP, education spending as a percentage of GDP and healthcare spending as a percentage of GDP – are the worst in the world, the minister said. By contrast, military spending is exactly the opposite, he said.

“We have to make our choices. If military spending can’t be reduced, we should accept the results,” Zubair said. The country has already fought four wars and wars are fatal for the economy, he said. There have been four coups already while two constitutions remained suspended for 20 years, he said.

This year’s federal income is about Rs3.4 trillion of which Rs1.5 trillion has been allocated for provinces, Rs1.100 trillion for debt servicing and Rs800 billion for the military, the minister said. “We need fiscal space to invest in energy, education and healthcare,” he said.

If the government can give power to the industries, the latter’s productivity will increase, resulting in more jobs and more taxes to the government, the minister said. Take the example of a recent increase in large scale manufacturing, he said – the government only added about 1,800 mega watts to the national grid.

While pushing his case for privatisation, Zubair said mobile phones and other technologies became cheaper and the quality of services improved because these businesses were run privately. “Our experience with the banking sector would have been worse, had they not been privatised,” he said

Portugal offers help in renewable energy

ISLAMABAD - Portugal is one of the leading wind energy producers and generating 61.7 per cent electricity through renewable energy sources while Pakistan should focus on enhancing cooperation with Portugal in energy sector to overcome its energy problems. This was said by M/s. Iftikhar Feroz, Honorary Consul of Portugal and Dr. Mario Cabral, an economist of Portugal and expert in international trade, investment and business relationships while addressing the business community at Islamabad Chamber of Commerce & Industry. They visited ICCI to discuss the possibilities for enhancing bilateral trade and economic relations between Pakistan and Portugal.
They said both countries have good relations in textiles sector, but they should focus on diversifying their cooperation to achieve mutually beneficial results. He said Portugal is quite strong in high technology and exporting high value technology products. They said Pakistan should also enhance collaboration with Portugal to manufacture and export value added technological products. They said Portugal is a famous tourism destination and Pakistan should benefit from its experience to promote its tourism industry.
In his welcome address, Khalid Chaudhry, Acting President, Islamabad Chamber of Commerce & Industry said that Pakistan and Portugal need to take new initiatives to improve bilateral trade as the current volume of two-way trade is far below their true potential. He said to tap all untapped areas of cooperation, both countries should encourage frequent exchange of trade delegations and facilitate private sectors in making direct contacts.
He said Pakistan offers great incentives to foreign investors with profitable returns on investments in different sectors of its economy including energy, infrastructure development and many other areas. The present government is determined to initiate many developmental projects and time is ripe for the investors of Portugal to come to Pakistan in maximum number and explore business and investment opportunities.
He said after grant of GSP Plus status to Pakistan by the EU, Portugal should focus on enhancing import of Pakistani textiles, garments and leather products and help Pakistan in getting easy market access to EU markets.

Chelsea take first steps to sign Costa

Third parties representing the Premier League leaders have held meetings with representatives of the Atletico Madrid striker and further contact is expected in the next weeks

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By Wayne Veysey ¦ Chief Correspondent


Chelsea have taken the first steps to making Diego Costa their headline summer signing, Goalunderstands.

The Premier League leaders are ready to pay upwards of €36 million for the Atletico Madrid striker.

Intermediaries representing Chelsea have already held meetings with the Costa camp and further discussions are expected in the next week.

VIEW FROM SPAIN

By Ander Bilbao - Chief Editor of Goal Spain If Atletico Madrid President Enrique Cerezo is to be believed, the Spanish high-flyers have little intention of entertaining the sale of Diego Costa this summer. "I do not think Diego Costa is going to leave Atletico next year. We do not want any player to be bargaining chip," he said earlier this month. However, in admitting that "teams are coming for our players", Cerezo admitted at least the growing interest in Atletico's top stars, with rumours increasing by the day about one sale or another. Equally, the recent stories of a potential Atletico deal for Fernando Torres could have an impact on their sales strategy, while the future of Atletico's keeper Thibault Courtois - on loan from Chelsea of course - could also prove a factor. Either way, what is sure is that Atletico would not be paying as much money out for a new striker.

The west Londoners are keen to tie up the deal before the end of the season and ahead of Costa departing for the World Cup, where he is expected to be an integral member of the Spain squad trying to defending their 2010 crown.

Costa has emerged as Chelsea's top centre-forward target following a stellar campaign for Champions League quarter-finalists and La Liga title challengers Atletico.

The 25-year-old has scored 31 times in 41 matches this season and his 23-goal league haul is second only to Cristiano Ronaldo (26).

Chelsea were keen to trigger the Brazil-born forward's release clause in January, when he was also being closely monitored by rivals Arsenal, but the player did not want to leave in mid-season.

The buy-out figure was understood to be €36m in January, although there are well-sourced rumours that a slightly higher sum will need to be paid to capture the player in the summer window.

Arsenal have subsequently dropped their interest in Costa following lukewarm scouting reports, leaving Chelsea in pole position to capture the prolific striker.

Jose Mourinho has made no attempt to hide his desire to recruit a blue chip centre forward amid doubts over the futures of all three of the Blues' senior front men - Fernando Torres, Samuel Eto'o and Demba Ba. At least two of the trio are expected to leave in the summer, while Romelu Lukaku will hold talks with Chelsea chiefs when he returns from his season-long loan at Everton.

As reported by Goal, Atletico Madrid lead the chase for Torres and there is also interest in the Spaniard from Inter, Tottenham and Galatasaray. A growing possibility is that Torres could leave on a season-long loan to free up space in Chelsea's attack and on their wage bill.

Ba's representatives have already begun speaking to interested parties, while current first choice Eto'o, 33, is out of contract in the summer.

Failure to beat Barcelona & Atletico could cost Real Madrid the title

Carlo Ancelotti's men have taken just one point from their four fixtures against their biggest rivals this term and those results could ultimately be their downfall in La Liga

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COMMENT
By Ben Hayward | Spanish Football Writer

The inquest continues. While Real Madrid still feel aggrieved at refereeing decisions in Sunday's Clasicodefeat to Barcelona, the truth is that Carlo Ancelotti's side have been unable to produce the goods against their title rivals this season. And ultimately, failure to beat both Barca and Atletico could cost them La Liga.

The 4-3 loss at home to the Catalans on Sunday was Madrid's second disappointment at the hands of their eternal enemies this term, having also gone down 2-1 at Camp Nou in October. And although Ancelotti's men dispatched Atleti with ease in the Copa del Rey semi-finals (4-0 at home and 2-0 away) last month, they suffered a damaging defeat at the Santiago Bernabeu to Diego Simeone's side in La Liga (0-1) and could only manage a 2-2 draw at the Vicente Calderon earlier this month. 

That means Madrid have conceded valuable points to their title rivals in the race for La Liga. Perhaps worse than that, however, is the fact that if Real finish level on points at the end of the season with either Barca or Atleti, they'll lose out in both cases due to their inferior head-to-head record with the other two teams.

HOW TOP THREE HAVE FARED AGAINST EACH OTHER
BARCELONA: SEVEN POINTS FROM THREE GAMES
	Barca beat Madrid twice (2-1 and 4-3 on Sunday) and drew 0-0 at Atletico, their rival in the final round of La Liga in May.
ATLETICO: FIVE POINTS FROM THREE GAMES
	Atleti won 1-0 at Madrid, drew at home to Real (2-2), held Barca at the Calderon and travel to Camp Nou on the last day of the season.
REAL MADRID: ONE POINT FROM FOUR GAMES
	Beaten in both Clasico clashes, Real also lost at home to Atletico. Their sole point in these games came in a draw at the Calderon.

Should Madrid go on to win the title (and they remain favourites) outright, they'll hardly care. After all, Barcelona won La Liga last season despite not beating Madrid in either of the twoClasico clashes in the Primera Division. And in any case, there is another one yet to come in the final of the Copa del Rey next month.

However, there is little doubt that those poor results have ultimately let both Barca and Atleti back in the race.

"I'm not happy with this," Ancelotti said on Tuesday. "It's difficult to explain what happened [in the league games against Barca and Atletico] because we are very competitive, one of the best teams in the world - and we are going to show that between now and the end of the season."

"In only one of the four games were we unable to compete," the Italian explained, referring to the defeat at home to Atleti in September. "We had problems and we deserved to lose. We played very badly. Also in the first half at Camp Nou, but the last two games [the 2-2 draw at the Calderon and the Clasico on Sunday] have been even."

Asked on Sunday if he was concerned by his team's sub-standard return against their two top-quality adversaries in La Liga, particularly with Europe's finest lying in wait in the Champions League, Ancelotti was bullish.

"I'm not worried about it," he said. "We went 31 games unbeaten, the team has shown quality and we did in this game as well. The league is open for all three teams."

Privately, however, Ancelotti will be frustrated to see his team take only one point from a possible 12 against their two title rivals and if Real do go on to lose La Liga from what had looked like a commanding position just several days ago, it will be in those games where the title will have been lost

Vidal: I'm staying at Juventus to win the Champions League

The Chile international claims he is happy to ignore the "sirens in Spain" after being linked with both Barcelona and Real Madrid this season

Arturo Vidal has revealed he will stay at Juventus in order to fulfil his promise of delivering the Champions League trophy to Turin.

The 26-year-old has been in superb form for the Bianconeri this season, scoring 18 times in all competitions for the Italian champions, and speculation has mounted that both Barcelona and Real Madrid have identified the Chilean as a priority transfer target this summer.

Vidal, however, says he is happy to ignore the "sirens" calling him from Spain as he is determined to win Europe's top prize with Antonio Conte's side.

"I don't listen to the sirens in Spain, and my family is happy in Turin. I've repeated it several times: I'm happy here," he told FourFourTwo.

"I'm staying at Juventus because president Andrea Agnelli has asked me for the Champions League."

Juve are closing in on their third-straight Serie A title and are in the quarter-finals of the Europa League after suffering a disappointing group-stage exit in this season's Champions League.

Facebook's Zuckerberg, Google's Schmidt

President Obama during his January 17 NSA reform speech.Whitehouse.gov live stream/Screenshot by CNETZuckerberg and Obama "had an honest talk about government intrusion on the Internet," says Facebook -- just days after the CEO posted an indignant statement on his Facebook page

As expected, President Obama met with Facebook CEO Mark Zuckerberg, Google Executive Chairman Eric Schmidt, Netflix CEO Reed Hastings, and other tech executives Friday afternoon to discuss efforts to reform the National Security Agency's controversial surveillance programs.

"The President used this opportunity to update the CEOs on our progress in implementing theprinciples and reforms he announced on January 17, including the new Presidential Directive he issued to govern our intelligence activities that will ensure that we take into account our security requirements, but also our alliances, our trade and investment relationships, including the concerns of our companies, and our commitment to privacy and basic liberties," the White House said in a statement provided to various media outlets. "The President reiterated his Administration's commitment to taking steps that can give people greater confidence that their rights are being protected while preserving important tools that keep us safe."

The meeting comes just a few days after The Intercept reported that the NSA had masqueraded as a Facebook server to place spy malware on targeted computers and gain access to data stored on hard drives (the NSA responded by saying, "NSA does not use its technical capabilities to impersonate US company Web sites").

The day after the report, Zuckerberg phoned Obama and posted a note about the call on his Facebook page, writing, "I've been so confused and frustrated by the repeated reports of the behavior of the US government. When our engineers work tirelessly to improve security, we imagine we're protecting you against criminals, not our own government."

Facebook said in a statement Friday that at that day's White House meeting Zuckerberg and Obama "had an honest talk about government intrusion on the Internet and the toll it is taking on people's confidence in a free and open Internet," adding that "while the US Government has taken helpful steps to reform its surveillance practices, these are simply not enough. People around the globe deserve to know that their information is secure and Facebook will keep urging the US Government to be more transparent about its practices and more protective of civil liberties."

The Intercept story was not the first report of the NSA posing as a prominent Web site in order to spy. Last September, a Brazilian news story said the agency had disguised itself as Google. And there was also a Washington Post report, in October, that the NSA had secretly tapped into the private fiber-optic networks that connect Google's and Yahoo's worldwide data centers, allowing the spy agency to suck up "at will" metadata and content belonging to users of the companies' services.

The latter report seemed to be what pushed tech companies to move beyond simply calling for transparency in regard to government requests for user data, and to begin pushing for reform of the NSA's practices.

In December, a group of tech heavy hitters including Apple's Tim Cook, Google's Schmidt, and Yahoo's Marissa Mayer hijacked the agenda of a White House meeting with Obama, shifting the emphasis from fixing Healthcare.gov to fixing the NSA. (This in-person push for reform followed a campaign earlier in the month that included full-page ads in The New York Times, The Washington Post, and elsewhere.)

In the January 17 NSA reform speech referenced by today's White House statement, Obama addressed some issues but said others, including the NSA's use of hacking exploits and its efforts to crack encryption, would be studied further in order to determine what sorts of reforms could be put in place without jeopardizing national security. He gave the groups charged with those investigations till March 28 to put together proposals.

Other CEOs at the Friday meeting included Drew Houston of Dropbox, Alexander Karp of Palantir Technologies, and Aaron Levie of Box, according to Recode, which added that Yahoo's Mayer and Microsoft's Satya Nadella where unable to change their schedules in time to attend

Box files for IPO seeking $250M on NYSE

Box co-founders Dylan Smith and Aaron Levie at Box headquarters on November 11, 2013.Josh Miller/CNET

Box, the cloud storage and enterprise collaboration company, has decided to finally reveal its plans for a much-anticipated IPO, the company announced via Twitter Monday. The company will seek to raise $250 million on the New York Stock Exchange next month, with a price announcement pending.

The move marks an end to rounds of speculation over whether or not the 9-year-old business-oriented startup, headed up by 29-year-old CEO Aaron Levie, would beat competitor Dropbox to an IPO. Both companies have been near the top of countless lists in recent months analyzing the next big tech IPO.

In January, it was reported that Box had secretly filed paperwork for its IPO, as Twitter did back in September thanks to a new provision in the JOBS Act that allows companies with revenues less than $1 billion to confidentially file drafts with the US Securities and Exchange Commission.

Morgan Stanley, J.P. Morgan Chase, and Credit Suisse are running the filing, which Recode earlier reported. Box reported $124.2 million in revenue for the fiscal year ended January 31, 2014, a 111 percent increase from the previous year, with a loss of $169 million, according to its SEC filing.

The loss incurred comes from operating expenses of $257 million, or $21 million a month, that left Box with roughly $109 million in the bank going into fiscal 2014. Between January 2013 and January 2014, Box's sales and marketing expenses grew up from $99.1 million to $171 million.