Tuesday, 1 April 2014

Kharif season: Amid lack of storage facilities, 15% of water to be lost

Committee members said that the Irsa technical committee had anticipated a water loss of 30% in the Indus system and 20% in the Jhelum system in early Kharif. PHOTO: FILE
ISLAMABAD: While giving its seal of approval to water demand from provinces for the Kharif sowing season, the Indus River System Authority (Irsa) has projected a 15% loss of water, which flows into the sea due to a lack of storage dams.
“A quantity of 67 million acre feet (MAF) of water will be available for the Kharif season and 10 MAF will be wasted as water will flow into the sea due to insufficient storages,” the Irsa advisory committee observed in a meeting here on Monday with chairman Mohammad Nasim Bazai in the chair.
Apart from this, the committee was of the view that an average 10% of water would go to waste in the wake of system deficiencies – theft and leakage – during the season, which runs from April to September.
Committee members recalled that the Irsa technical committee had anticipated a water loss of 30% in the Indus system and 20% in the Jhelum system in early Kharif. Later in the season, the loss would come down to 20% in Indus and 15% in Jhelum.
According to sources, Sindh and Balochistan got engaged into a controversy during the meeting when the latter alleged that Sindh had stolen its water during the just-ended Rabi sowing and harvest season.
Irsa Chairman Bazai assured Balochistan that an inquiry was under way to address the issue of water theft. Balochistan would get its entire share in the Kharif season, he stressed.
Later talking to the media, Bazai said Irsa’s advisory committee had unanimously approved the water share of provinces in Kharif, according to which Punjab would get 33.94 MAF, Sindh 30.49 MAF, Khyber-Pakhtunkhwa 0.82 MAF and Balochistan 2.56 MAF.
“Provinces will receive a total of 67 MAF in the Kharif season,” he said, adding 10 MAF would go into sea due to shortage of dams while 10% of water would be wasted due to system losses. This season, the provinces would get an additional 20 MAF, he said.
Earlier, the technical committee in its last meeting had estimated that the country would have 108 MAF of water in its rivers in the season. In addition to this, Mangla Dam would have carryover stock of 1.5 MAF and Tarbela Dam 0.50 MAF. The carryover stock is the result of better inflows and recent rains.
“This time, we will be easily able to fill the dams to the brim. Water level will be at maximum at 1,242 feet in Mangla Dam and will be at 1,550 feet in Tarbela reservoir,” an Irsa official said.
Owing to improved water supply, the country would have enough water to generate hydroelectric power to mitigate looming shortages,” the official added.
In Monday’s meeting, Irsa members noted that the Rabi season faced only 7% water shortage, therefore, wheat production would be better due to improved water supplies.

Outlook stable: S&P affirms Pakistan’s ratings at ‘B-/B’

“We believe Pakistan government’s reform efforts and the International Monetary Fund lending programme will help contain external liquidity risks and gradually strengthen the country’s fiscal and economic profiles,” S&P said
NEW YORK.: 
Standard and Poor’s ratings agency has affirmed ‘B-’ long-term and ‘B’ short-term sovereign credit ratings on Pakistan with a stable outlook.
“We believe Pakistan government’s reform efforts and the International Monetary Fund lending programme will help contain external liquidity risks and gradually strengthen the country’s fiscal and economic profiles,” S&P said in its assessment on Monday.
However, Pakistan has significant security risks, weak institutional and governance effectiveness, low external liquidity, low per capita income, a weak fiscal profile, high public debt and a lack of monetary flexibility, it pointed out.
The stable outlook on the long-term rating balances the potential benefits of the government’s reform efforts and the IMF lending programme against vulnerabilities from external liquidity risk and domestic and external security risks, S&P said.

 Sovereigns Rating List
P
Pakistan (Islamic Republic of)
Panama (Republic of)
Papua New Guinea (Independent State of)
Paraguay (Republic of)
Peru (Republic of)
A
Philippines (Republic of the)
Poland (Republic of)
A
Portugal (Republic of) (Unsolicited Ratings)
Q
Qatar (State of)

Foreign investment: Repatriation of profits stronger and higher

In February alone, the repatriation of profit from companies operating in Pakistan to their stakeholders based in foreign countries amounted to $124.5 million. ILLUSTRATION: JAMAL KHURSHID
KARACHI: 
Total repatriation of profits on foreign investments amounted to $728 million in the first eight months of 2013-14, up 32.8% from the corresponding period of the preceding fiscal year, according to data released by the State Bank of Pakistan (SBP).
In February alone, the repatriation of profit from companies operating in Pakistan to their stakeholders based in foreign countries amounted to $124.5 million, up a massive 214.4% from the repatriation of $39.6 million recorded in February 2013.
It should be noted that the amount repatriated as profits/dividends in the first eight months of 2013-14 far exceeds the net foreign direct investment (FDI) that the country received over the same period. FDI amounted to $606.3 million in July-February, which is roughly 83.3% of the profits repatriated during the same period.
Similarly, net FDI during February was $79.2 million as opposed to the profit repatriation of $124.5 million in the same month.
A major chunk of total repatriation came from the payment of profit on FDI as opposed to foreign portfolio investment (FPI). Out of the total repatriation of $728 million, profits on FDI constituted about 82.9%, or $604 million, during the eight-month period.
In order to encourage investment in the country, the government allows 100% foreign ownership of businesses and unrestricted repatriation of profits.
The repatriated profits of the thermal power sector in July-February were $122.7 million, up 167.9% from the corresponding figure recorded in the comparable period of the last fiscal year. Similarly, the oil and gas exploration sector repatriated a total of $91.3 million in July-February, which was 140.2% higher than the corresponding eight-month period of 2012-13.
Other sectors that recorded substantial repatriations in the eight-month period were petroleum refining ($59.8 million), food ($51 million) and transport ($36 million).
However, financial businesses repatriated the largest amount to their stakeholders in foreign countries in the first eight months of 2013-14. With the payment of $162.1 million profits in July-February, the year-on-year increase in the repatriated amount for financial businesses remained 22.3%.
The increase in the repatriation of profits can be in the form of either dividends or liquidation of foreign holding.
Speaking to The Express Tribune, Sherman Securities Head of Research Farhan Mahmood said the higher level of profit repatriation in the financial sector should be attributed to the dilution of foreign holding in a few banking-sector companies.
He said a major foreign fund liquated its substantial stake from Faysal Bank in the first half of 2013-14, which substantially increased the overall repatriation level in the first eight months of the current fiscal year.
“Growth in the repatriation of profits is good if it is achieved by higher corporate earnings and increased dividends. It reflects international investors’ confidence in the country’s economy and its prospects in the long run,” he said.
Mahmood added that although core earnings of Pakistani banks with foreign holdings were modest in 2013, their top lines remained stable due to reduced provisioning against non-performing loans. “This resulted in attractive dividend payouts and increased profit repatriation,” he said.

Postcolonial payback: The East India Company is back

The company that ran a country is now run by an Indian. DESIGN: MUNIRA ABBAS
I went to the East India Company (EIC) last year… barely able to contain my mirth on the way to its flagship emporium at No. 7 Conduit Street in London. And when an extremely pleasant ‘white’ man served me tea to sample there as I browsed, I nearly fell out of my skin. You will experience such post-colonial glee only once in a lifetime, I told myself as I gingerly sipped from the glass teacup. This ‘native’s’ encounter was further enriched upon learning of a double irony: The East India Company is owned today by — an Indian.
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(Below) This artisanal black salt (£10) is produced in natural lava pans with the purest of Hawaiian waters. It owes its rich colour and robust flavour to detoxifying charcoal. Next to it is the Murray Darling salt, extracted from Australia’s longest river and uniquely peach-hued salt (£10). PHOTOS: TOOBA MASOOD
Fifty-year-old businessman Sanjiv Mehta bought the defunct company’s registration in 2005. News of the EIC’s revival made international headlines five years later when he opened its London store, incidentally on the same day the company was shelved 135 years earlier. He told the Financial Times then that, “People are rejoicing because an Indian has bought the EIC — it is a symbol of redemption.”
The EIC emporium is located on Conduit Street, close to the famous toy store Hamleys and a short walk from Oxford Circus. You enter its luxurious crimson and shale interior to encounter wooden caskets and chests spilling over with gourmet delights — the EIC has about 350 luxury food products. Their Poppy cordial, in particular, stands out as a reminder of the vast opium trade that the EIC engaged in to pay for Chinese tea.
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For the less naughty there are floral and syrup cordials in the inviting Hibiscus, Violet, Orange Blossom and Mimosa flavours, among others. Tea drinkers can choose from Blend No. 65 pomegranate and lemon, Bombay chai and even Custard Apple ‘Soursop’ leaves, which are just a few of the names. For those with a predilection for hi-tea acrobatics, there is the Thousand Year Red, a green tea bulb woven with the Globe Amaranth Flower which ‘blooms’ when you put it in water.
Each cover of a jar of tea carries the red ‘wax’ seal of the Company’s logo, a heart-shaped figure containing the initials of the company in its three chambers and topped by a figure four. This symbol used to help people identify goods arriving at the ports and was referred to as the ‘chop’, a British linguistic interpretation of our ‘chhaap’ or stamp.
If you aren’t much of a tea drinker please try the Tiger of Mysore Mocha Mysore Espresso Grind (250g). Perhaps some dark chocolate with red peppercorn might interest you? The prices for the gourmet line range from £3.50 for tea to £15 for coffee.
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In a completely other league, though, is the EIC’s return to the bullion trade. In 2012 it started remaking coins to target collectors and connoisseurs. Of course, the Company is famous for bringing the word ‘cash’ into circulation (Tamil ‘Kasu’ for coin) and used to make its own currency, starting in 1677. Now you can buy an original 1841 Queen Victoria One Mohur Gold coin. It comes with a letter of authenticity, costs 4,500 pounds and there are only four available. If they are snapped up and you still want to get in on a piece of the action, you may have to wait for the company’s jewellery line which would include pieces inspired by the Mughals.
History and future
The EIC was created on December 31, 1600, via a royal charter by Queen Elizabeth I, the virgin queen, when she gave 200 merchants a monopoly on trade in South Africa. She died within two years. Eight years later, the EIC’s ships landed in Surat.
One of the first men to make contact with the Indian rulers, in this case Emperor Jehangir, was a man called William Hawkins, who spoke fluent Turkish. Details of their encounter are spelled out in Anthony Wild’s splendid book, The East India Company: Trade and Conquest from 1600 (Harper Collins and reprinted by the EIC). Jehangir was so impressed by Hawkins’ ability to speak the language that he found him an Armenian Christian wife and gave him command of 400 cavalry with the title of ‘Khan’ and a huge salary.
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(Above) Delicate, flowering teas, such as this rose bud one, gently bloom in hot water to unfold an exquisite bouquet of colours, fragrances and flavours (£10). (Top right) Cordials were famously used throughout the East to add an essence to water or tea and even to flavour sweets. The EIC has eight flavours each bottle priced at £7.95. (Inset) The EIC’s new owner Sanjiv Mehta. PHOTO: BBC
The EIC’s focus was spices but it soon caught up with the textile trade which involved cloth such as calico, chintz, muslin and raw silk. What we know today as the famous ‘British’ floral Chintz pattern is actually ‘Indian’. This fast-dyed cotton emerged in India and the word comes from a Sanskrit word meaning coloured or spotted, according to experts from the Victoria and Albert Museum in London that inherited much of these collections. The textiles from India were famous for their stunning red madder dye and violet-blue indigo.
Textiles became so important that the EIC set up factories in Bombay, Madras and Calcutta, which became the company’s main administrative hubs or “presidencies” and “have since developed into the largest cities of modern India,” as Wild notes.
Lingering post-colonial misgivings aside, it would not be fair to ignore that the EIC was instrumental in changing how the world does business. At one point it conducted and controlled 50% of world trade and its influence extended to one-fifth of the world’s population. The company’s jewel-toned website says, quite aptly: “The East India Company’s employees did not set out to change the world. They were people who set sail to establish trade routes, to discover and bring back new goods, and in doing so broke down the barriers of the world.”
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White needle green tea leaves with a vibrant red Globe Aramanth blossoming at its centre for the Thousand Year Red (£10). PHOTO: EICFINEFOODS.COM
Refreshingly, though, the website also says that the people who ran the Company — explorers, traders, innovators — took risks, broke new ground and “sometimes got it wrong”. This indicates that its new managers are not pretending as if the EIC’s history of slavery, colonialism and oppression is something they can simply sweep under the carpet.
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A staffer pours a cup of tasting sample. Today, the EIC’s curated tea library offers over 120 varieties.
PHOTO: TOOBA MASOOD
One wrong, for example, was ruling large parts of India from 1757.
But there are many other documented wrongs. When drought struck Bengal in 1769, the Company raised taxes and refused to intervene; as many as seven million died in the resulting famine, reports Nick Robins in his book, The Corporation That Changed the World: How the East India Company Shaped the Modern Multinational (Pluto Press, 2006). Hypocrisy and double-standards are some of the lesser sins. “Tea would become the Company’s commercial swansong,” writes Robins. “But this glamorous trade rested on a deadly secret: its growth was paid for by the mass smuggling of opium from the Company’s Indian territories into China.” And of course, then was the use of force. Its private army took over the bulk of the subcontinent.
In 1757, the EIC’s private army defeated the Nawab of Bengal at the Battle of Plassey. A puppet ruler was installed and this was the turning point at which historians have generally felt the British Empire in India was created. Its end was marked by an uprising in 1857-58, which we know as the First War of Independence in India. On June 1, 1874, the company ceased to exist.
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In the East India Company’s London flagship store hundreds of luxury food products are on display, from condiments to coffee. You can buy them online at eicfinefoods.com. PHOTO: TOOBA MASOOD.
It is safe to say that reviving the company 144 years later probably doesn’t open any wounds. But given its pivotal role in shaping the trajectory of India and Pakistan, do people react badly to bringing it back? Sanjiv Mehta told the BBC that he had received 15,000 emails of support from Indians. And while we no longer live in a time when companies can take over countries, as I left the emporium with a small blue tin box (which was all I could afford), I couldn’t help but muse: imagine the East India Company ruling England today.
FUN FACTS
1.      The benefactor after whom Yale University is named, Elihu Yale, worked at The East India Company and worked his way up to become governor of Fort Saint George, Company’s installation at Madras.
2.     In 2008, the UK scrapped laws on the East India Company because it had shut during the 19th Century.
3.     The city of Singapore was established by the EIC.
4.     Words like calico, dungarees, gingham, khaki, pyjama, sash, seersucker, shawl, are all Indian-inspired because of the EIC trade. It also involved nainsooks, sassergates, alliballies, humhums, jamdanies.
5.     Charles II had acquired Bombay which he leased to the EIC in 1668 for an annual rent of 10 pounds. Its name comes from the Portuguese ‘Bom Bahia’ or beautiful bay.
6.     By 1857, the EIC had 43 warships and 273 European officers.
7.     Punch was a favourite with the Company’s employees in India. The word is from the Hindi/Urdu ‘Panch’ meaning five. This refers to the five ingredients then used in the drink: tea, arrack, sugar, lemons and water.
8.     The word factory originally meant an East India Company trading station. The word factory comes from factor: A factor was a Company buyer/seller. Staff were promoted by grades: writer, factor, junior and senior merchant.
9.              The word ‘Posh’ comes from ‘Port Outward Starboard Home’. It originated in the days of The East India Company’s ships departing from the UK for the Indian Ocean. The Port or left side of the ship’s cabins faced east and received the sun (plus the coastal view). The opposite was true on the return trip.
Mahim Maher is an editor at The Express Tribune. She tweets @Mahim_Maher 
Images courtesy: The East India Company: Trade and conquest from 1600

Will Sharif be able to follow Mahathir and Erdogan?

Mahathir Mohamad and Recep Erdogan both blamed the West, the Jews and the currency speculators for the crisis and thus restricted people’s right of freedom.
As I read some of the statements made by the Turkish Prime Minister, Recep Erdogan, and the reactions following them, a feeling of deja vu overcame me.
Haven’t I heard (all) this before?
In the late 1990s, the former prime minister of Malaysia, Dr Mahathir Mohamad, was facing an Asian financial crisis. Just like Erdogan is doing now, he blamed the West, the Jews and the currency speculators for the crisis and thus, restricted people’s right to freedom. Unsurprisingly, he was also accused of being authoritarian, anti-Semitic and a propagator of far-fetched but dangerous conspiracy theories.
But these are not the only similarities between the two prime ministers.
Both leaders oversaw a decade of high economic growth in their respective countries and were praised as model Muslim democrats. They both led strong political parties which dominated the political landscape. Mahathir was the leader of the United Malays National Organisation (UMNO), while Erdogan is the leader of the Justice and Development Party (JDP).
They represented the downtrodden in their respective societies and fought against the elite. Mahathir’s main constituency was ethnic Malays while Erdogan’s is Turks from interior Anatolia. However, they were both able to expand their appeal over time and won votes from other groups as well.
Both leaders had difficult relations with the media in the latter half of their regime. They were not afraid to criticise and even limit media freedom. Mahathir sued newspapers when he faced a crisis and Erdogan is doing the same as we speak. Erdogan recently banned Twitter and Facebook although the ban on Twitter was overturned by the courts. According to him,
“There is a trouble called Twitter, the finest lies are here. Nowadays, social media is actually the headache of societies.”
They have both forsaken and blamed an Islamic group which was crucial to their initial success. Mahathir sacked Anwar Ibrahim and his supporters while Erdogan is currently blaming Fethullah Gulen and his followers for setting up a parallel government. In both cases, many political analysts doubted their success in the elections without the support of these key groups. However, both leaders managed to win their respective elections easily.
Erdogan celebrated his remarkable feat on Sunday, March 30, 2014 winning his third consecutive local election alongside his three wins in the national elections.
A lot has been written about the superb economic stewardship of both leaders and it has certainly been crucial for their popularity and electoral success. However, not many people know of another key ingredient behind their success – their management of ‘nationalism’.
Like Pakistan, the basis of nationalism is still open for debate in both Malaysia and Turkey. There are ethnic nationalists, religious nationalists and a large group of civic nationalists fighting over the raison d’être of their respective countries.
Mahathir and Erdogan both used this disagreement to their advantage and led coalitions of different nationalists at different times in their careers. Both adopted civic, ethnic or religious nationalism as the situation demanded.
Mahathir began his career as an ethnic nationalist but later won popularity and even premiership as a Malay nationalist. He wrote a controversial book, The Malay Dilemma, to promote special policies for the people of Malaysia. However, once he attained power, he moved to the centre and tried to win over all Malaysians. And by the end of his rule, he started propagating a form of ethno-religious nationalism, highlighting the special role of Malays and Islam in the creation of Malaysia.
On the other hand, Erdogan began his political career as a civic nationalist and despite his Muslim roots, presented himself as a leader for all Turkish people. He disparaged discrimination on the basis of ethnicity, gender or religion. However, in order to curtail the power of the Turkish military, he later became an ethnic nationalist and unashamedly claimed to be the redeemer of the ethnic nationalism of Ataturk and early Turkish Republic.
His current stance is that of an ethno-religious nationalist fighting against the world for his country, just like Mahathir near the end of his career.
Another interesting common factor between Mahathir and Erdogan is that our current prime minister is a big fan of both. In the 1990s, Prime Minister Nawaz Sharif wanted to become Pakistan’s Mahathir and now his frequent trips to Turkey indicate his inclination towards following Erdogan’s model.
It seems that our PM can learn how to use nationalism to his advantage from these leaders, in addition to superior economic management.
Sharif was a religious nationalist in the 1990s. He tried to pass the 15th Amendment to implement his version of an Islamic state but failed. And now the main threat to Pakistan’s integrity is from the Taliban who claim to be religious nationalists themselves.
Just like Erdogan and Mahathir, he must also broaden his coalition and include not only religious nationalists from Punjab and Khyber Pakhtunkhwa (K-P) but also liberals, minorities and ethnic nationalists from Balochistan and Sindh. Only then will he have a chance at the kind of success that Erdogan and Mahathir achieved.

Dar fulfills another commitment; Foreign Exchange Reserves cross US $ 10 billion

Dar fulfills another commitment; Foreign Exchange Reserves cross US $ 10 billion
ISLAMABAD- The foreign exchange reserves of the country have crossed the threshold of US $ 10 billion on 31st March 2014.The total liquid reserves stood at US $ 10.072 Billion. The net reserves with State Bank of Pakistan are US $5.365 Billion and the net reserves with the Banks stood at US $4.706 Billion.

The Finance Minister Senator Ishaq Dar said that after repayment of power sector circular debt up to Rs. 500 billion in 45 days and strengthening of the value of Pakistan Rupee, the Government of PML (N) had fulfilled yet another commitment with the nation of shoring up of the FE Reserves to a comfortable level of US $ 10 billion by the end of March 2014.

Dar said, that a solid foundation for economic uplift of the country had been laid down and building of the foreign exchange reserves would bring in stability and strength in the economy. He said that Pakistan had an encouraging macro-economic framework and this would lead to enhanced confidence in Pakistan by foreign investors, international community and institutions in energy and infrastructure projects.

Senior woman, dead for six weeks, found in front of TV

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FRANKFURT-
The corpse of a 66-year-old German woman who died more than six months ago was found in her apartment, in front of a television set that was still on, Germany’s Frankfurter Neue Presse newspaper reported last week.
The woman, in the town of Oberursel near Frankfurt, died of natural causes in a nightgown while watching TV. There was a program guide from September nearby, the newspaper said, describing the body as “partially mummified”.
Police said residents in the 30-apartment block had noticed an unpleasant smell in the staircase but no one had informed the authorities. The landlord opened the apartment after noticing the her mailbox jammed with uncollected letters.