As reported, President Barack Obama signed a sweeping US defense funding bill on Saturday, which includes new sanctions on financial institutions dealing with Iran's central bank, and curtailing up to $850 million in aid to Pakistan.

Now, (after President Barack Obama approved sanctions over Pakistan, effective 1st Jan. 2012), it is very appropriate time that Pakistan closes it's air space for US and NATO planes, on the premise that sanctions are not imposed on friends.

It's an extremely unfriendly act and sanctions means they consider Pakistan as enemy. So, we must also act in our own interest, in a firm and bold manner. Stand up Pakistan, its now or never.

If the US has no consideration of our enormous sacrifices of men and material, we should also not go with them any further mile in their imposed war on terror. Why should Pakistan suffer eternally, for the intelligence failure of American agencies in preventing 9/11 attacks on America, in which no Pakistani was ever found to have been involved. Moreover, if Osama Bin Laden was involved in 9/11 attacks, he too was a made in America product. All said and done, Pakistan is being punished continously for the crime of siding with America, in their imposed war on terror, for which no country on earth has suffered more than Pakistan.

For Pakistan, enough is enough. America can't have cake and eat it too.

Pakistan Observer ePaper Click here to read
Top Stories
Voice Of People
Contact Us
Zahid Malik
Abdul Sattar
Dr Jassim Taqui
Dr S M Koreshi
Robert Clements
Salahuddin Haider
Madhav Nalapat
Weather  Weather
Click on the name of City to see the current weather update
December 2011






1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
  Online Users: 6885

Hits Since 2009
StatCounter - Free Web Tracker and Counter

US economy gaining steam

Air Marshal Ayaz A Khan (R)

US economists and the media, including New York Times. Los-Angeles Times, Wall Street Journal, Herald Tribune have acknowledged US economic growth in 2011. The Standard and Poor's 500 index is outpacing the stock bench marks in Frankfurt, Sao Paulo, Tokyo, Shanghai, and Hong Kong by 15 percentage points or more this year." The Dow industrials rose 135.63 points on improvements in the housing and employment sectors. Fewer Americans are filing new jobless claims than at any time, The consumer index is improving, an indicator for end to recession. This is the latest positive signal for the US economy.

The US economy had started slowing down in 2007. The mortgage crisis began to weigh down on Wall Street in late 2007. US stocks nose dived in 2008, with pessimists forecasting 1930's recession. Massive job losses, the automobile industry collapse and bankruptcy, the mortgage scandals, bank closures, hundred's of thousands becoming jobless, provided evidence of implosion from within. America could become another Soviet Union. In 2008 on Wall Street US stocks fell more steeply than else where. It was argued that in Asia, China, Japan, India, South Korea and economy of Asean countries had "decoupled" and will grow despite slow down of the world's largest economy. By 2008 the woes of the US financial system had spread around the world, dragging down global stocks and casting doubts on the decoupling thesis. Now the Euro has hit a 15-month low against the US Dollar, as Europe's sovereign-debt problems continued to wear away investors confidence. After Greek and Portugal the Italian economy is in a mess. The cost of funding Italy's long term debt remained high, shying away rich European countries especially Germany and France to help Italian governments efforts to fend off public rallies against governments austerity measures. Even Italy's flourishing auto industry is in trouble.

Four years later the decoupling is moving the US economy in the right direction. "Investors bet on the ability of the US economy to power through Europe's sovereign debt crisis." And concerns in Asia about inflation and sharp slowdown in growth is helping the US economy. The Japanese auto industry, world leader till recently is under pressure because of the over priced Japanese Yen." Honda has decided to shift four Honda manufacturing units out of Japan to the US and Mexico. In the US Honda sales are now behind the Korean Hyundai automobiles.

For much of the 2011, the US stock market served as a safe heaven, largely because of the propensity of US investors to bring back funds from overseas during times of uncertainty. Federal Reserves accommodating policies and resolve of the Federal government to bail out the automobile industry, has brought the US economy back on rails.

In 2009 the automobile industry was near collapse. The big three- General Motors, Ford and Chrysler were in the red. To save GM and Chrysler form insolvency these were allowed to borrow 30 billion and 20 billion dollars respectively, but the state became the bigger share holders. Within two years both the auto giants have reshaped themselves, and in 2011 they returned the massive loans with interest. Ford did not borrow, but overhauled it self. Today the US auto industry is producing better designed and fuel efficient vehicles, and is edging Toyota and Honda, and making big profits.

The redesigned US compacts are better, solidly built and have lower fuel consumption and reliability. The Japanese automobiles were in serious trouble with the recall of 20 million Toyota's Corolla, Camry, Highlander and the latest Preius hybrid cars for modifications to fuel systems and accelerators. Honda also recalled half million compacts and SUV's.

The US economy is ending the year of financial uncertainty on a positive note. The unemployment figures recorded by the US Department of Labour and economists indicate the lowest levels of unemployment since June 2008, when he US economy was mired in recession. The unemployment data, along with positive figures from the housing and manufacturing sectors, suggest that the economic recovery is once again gaining momentum after nearly stalling earlier this year (2011). Economic statistics have consistently shown the growth of the US economy, albeit slowly.

Michael Gapen, an economist with Barclays Capital states, "the economic growth is durable. It may not be robust, but it is expansion. Fewer people are loosing jobs, not that more people are being hired, but this is a positive indicator for the economy. Detailed report on State of the Labor market will be release by mid January 2012.

The manufacturing sector is showing signs of strength. Manufacturing activity in the industrial Midwest rose sharply in November 2011,and remained steady in December. The National Association of Realtors have reported that, pending homes sales rose sharply in November in more than a year, and rose for the third consecutive month. It was up 6% from November 2010. Home construction is picking up and sale of existing and new homes are on the rise. The consumer shopping is the highest since two years. The European debt crisis had no effect on the US economy so far. But continuing economic crisis in Europe, Economic slow down in Japan and signs of economic slow down in China, partisan gridlock in Washington and budget cuts by states and local governments will have adverse impact on the US economy. Positive economic indicators and steady economic growth is good for the Democrats. This will assure Barrack Obama's re-election as President of the United States of America for the second term.


The 7th HBL Karachi United School Championship (KUSC) 2011-12 witnessed the results of three interesting matches at Baloch Mujahid Stadium, Ibrahim Hydri here on Saturday.

In Group 'C' Lyceum School came from 0-2 down to beat BVS Parsi High School 6-2 in a stunning come back and booked place in the quarter final after two consecutive wins.

The Lyceum School made the worst start by going 0-2 down to BVS Parsi inside 4th minutes thanks to Syed Zunair Zaidi and Shah Mir Khan 7th minutes goals. But Lyceum staged a dramatic come back when Abdullah Ali in 21st minute and Umer Amir levelled the score before half time (27th minute).

In the second half, Lyceum School comprehensively dominate on the game and scored 4 more goals through Abdullah Ali 32', Imtiaz Ahmed 51', OG 56' (Tabish Khan) and Taha Rahman 59'.

At the same venue St,. Patrick High School  won their first match with 2-0 win over Beaconhouse (Gulshan) in Group 'D' thanks to captain Ahmed Baig with two goals in the 1oth and 20th minutes.

In the same group Aga Khan Higher Secondary School hammered St. Michael Convent School 5-1 that featured hat-trick Yasir Shah (26', 28" & 46') while Mohammad Shaz and Saud Islam netted one goal apiece in the 52' and 54 minutes respectively.

St. Patrick and Aga Khan Higher Secondary School 5 points each from 2 games while Beaconhouse Gulshan have 3 points and St. Michael Convent School not yet open their account from 2 games.

Referees were Babar Khan, Qari Tahir, Farrukh Riaz, Mumtaz Baloch and Chaudhry Sarfraz while Abdul Karim as the Match Commissioner.

Riaz Ahmed - 0300-3926092

Energy Decisions: Govt reducing country to Stone Age

Dated: Jan 01

Islamabad: Samina Fazil, founder President, Islamabad Women's Chamber of Commerce and Industry (IWCCI) on Sunday said the incumbent government failed to provide any relief to masses in 2011.

Controversial policies and unpopular decisions have made life very difficult for masses and business community, she said.

The present incapable setup is not expected to bring any change in the next year, said Samina Fazil while speaking to the women entrepreneurs.

She said that there is no shortage of gas and electricity in the country. Gas is being silently provided to some influential sectors while electricity sector is victim of mismanagement where thefts have touched 24 per cent of total production.

Samina said that recent CNG decision will hurt millions of families and businesses, bring new wave of price hike and add to the unemployment and uncertainty as well.

In 2011, on average masses braved 8 hours of load shedding, experienced CNG closure in summer, faced closure of thousands of businesses, saw three per cent fall in GDP, dwindling rupee and unprecedented rise of dollar, political uncertainty, scams worth billions and international disgrace, she observed.

Samina said that the critical sector of petroleum and natural resources is being run as a hospital which proves concern of rulers towards grave issues and plight of masses.

Country is reeling under various issues but the rulers lack interest, care or feeling which is ample proof of their tall claims of pro-poor policies.

She said that business community has lost any hope in the rulers.

Samina Fazil,
Founder President,
Islamabad Women's Chamber of Commerce & Industry
Mobile: 0323-5343199
Land-line: 051-2252256


New Year, more traumatic
PEW paints gloomy picture of 2012
Economic reforms to remain a far cry
No plans to put economy back on track

Islamabad: [Jan 01]
The Pakistan Economy Watch (PEW) on Sunday said the New Year will bring more pains to the dejected masses.

There are slim chances of economic recovery in 2012 as government will continue to divert all energies to the on-going political struggle, it said.

The rulers are just interested in securing themselves and gaining political mileage; they lack will to take concrete policy actions, said Dr. Murtaza Mughal, President of the PEW.

He said that short-sighted decisions and mismanagement proves that economic revival is something that is yet to attract leadership or opposition.

Dr. Murtaza Mughal said that PEW expects 3-4 per cent fall in GDP, lower agricultural growth by 7-8 per cent, inflation beyond manageable limits, futile attempts by SBP to contain rising prices and printing of currency, enhanced current account deficit, and dwindling foreign inflows.

International lenders may not change their attitude which will keep local currency and reserves under pressure while dollar may climb, he added.

He said that Government will continue to keep tax-to-GDP ratio in single digit to please landed nobility and avoid reforms in public sector enterprises to please party workers which will inflict a loss of around Rs 400 billion.

It will be difficult to meet revenue target of Rs1,952 billion as government will continue to compromise due to the elections which can widen the fiscal deficit to 7 per cent, he said adding that domestic debt will touch Rs 1.5 trillion mark by the end of this fiscal.

The textile, automobile, cement, pharma and fertilizer sectors will feel the heat while food insecurity and reduced allocations in the PSDP will be additional factors haunting masses, he said.

The prices of fuel, electricity, vegetables and all edibles will go up while sugar prices may remain averagely stable.

Dr. Murtaza Mughal said that energy crisis; Rs 400 billion circular debt and deteriorating environment will continue to contribute to reduced business activities, compounded uncertainty and missed growth targets in the 2012.

Masses should not expect any improvement in 2012 as it will remain a tough year for majority who will face more jolts.
Dr. Murtaza Mughal
Cell:  0321-5157671
President Pakistan Economy Watch