The alarming news from India is that the job cuts are to be effected in the next 10 days and the sectors that will be engulfed include steel, cement, ITeS, BPOs, financial and brokerage services, construction, real estate and aviation.

So that Diwali does not go sour, the corporates had planned this much earlier, but deferred the decision till Diwali, so that the most revered event by the Hindus was allowed to pass.
It is like darkness before noon. How does it matter if night sets in earlier? The high rate of inflation prevailing for several months now has stealthily put its hand in the pockets of the ordinary person, robbing him of his money silently.

Economic theory recognises that inflation is a tax on the poor and puts money in the hands of the wealth owners. Worst still is the fact that the price rise has been mainly in the domain of essential commodities, like vegetables, rice, wheat and pulses.

If inflation persists, the poor would be deprived even of his 'dal' and 'roti' — the staple food of Indians.

The world seems standing at the brink of another world war because of failure of emerging weak role of UNO and uni-polar system. The power relations are defining the world as an ‘overruling cleavage’ of the international system. The unfair race of economic growth in terms of capturing natural resources, unequal division of wealth, global wave of organizational and state terrorism, selfish policies of super power, craving smaller sates, current financial global crunch and the collapse of the Soviet Empire are the factors which are accelerating the time so rapidly that destruction of world seem to be very nearer.

The dramatic political and strategic changes of Asia related to South Asian region in latter half of the twentieth century has further deteriorated the world peace. The main characters of prevailing insecure environment and regional instability are, India, US, Afghanistan’s puppet government, America, Israel and some of European allies. The capturing of natural resources for enhancing economic growth is basically a power thirst of US and her Police Watch Man (India). According to Indian philosophy wealth obtaining and power seeking are interlinked and two sides of the same coin. The Indian unflinching quest of grabbing natural particularly water resources are seem to be putting devastating effects on her neighbours, Pakistan , Bangladesh and Nepal , thus pushing South Asian Region into war.

But if we apply all these factors now it encircles whole South Asian Region instead of India, Pakistan, Nepal and Bangladesh. The major cause of prevailing insecure environment is Indian desire of expansionism and grabbing natural resources by using unfair means.

Apart from disputes over international Water of South Asia, the Indo-Pakistan dispute over the Wular Barrage (The Indus Waters Treaty) and Bugliar Dam, Indo-Bangladesh water dispute over the Farakka Barrage (The Ganges Water Treaty) and the Indo-Nepal dispute over the Mahakali River are the glaring ones and endangering to the regional peace. It is notable here that India always used water as tool against Pakistan Nepal and Bangladesh. The Indian rulers exploit this natural resource through blocking the flow of rivers which originate from the Indian controlled territories and claiming their rights of using Nepalese Origin Rivers too.

As we all knew that China and the East Asian region are major center of ‘expanded reproduction’ as well as a major center of world money despite the current world financial crises. Washington in collaboration with India is on the policy of capturing oil rich central Asian Regions, containment of China, suppressing Iran , capturing Asian Market to boost her economy and supporting Israel on Palestine Issue . Her Police Man (India) increased the insecurity in the context of state collapse, terrorism, fundamentalisms, humanitarian disasters in South Asia, Regional Water conflicts, economical and finical crises are going to be catastrophe for the people and likelihood of a serious inter-state armed conflict over water resources will be soon. To avoid disaster UNO should interfere and should devise some regional policy of using natural resources. At the same time, there is a need to condemn the Indian nefarious hegemony design to enhance the regional economic growth and prosperity.

Earlier this year, one of the great hopes for the world economy dodging the bullet of America's subprime mortgage meltdown was the robust growth in developing economies — and the hope that the consumer markets they generated at home would take up the slack as Western consumers were forced to tighten their belts.

But the financial crisis that started with homeowners walking away from mortgages on Main Street, U.S.A., has begun to roil the teeming bazaars of Islamabad, the old-world neighborhoods of Budapest and the gleaming office towers of São Paulo. Countries are now lining up, tin cups in hand, seeking bailouts from the International Monetary Fund (IMF). And the line is lengthening. Iceland got $2 billion; Ukraine, $16.5 billion. Hungary needs $12.5 billion, and then there's nuclear-armed Pakistan, perhaps the world's most combustible country, which needs up to $15 billion to stave off potential financial collapse. So dangerous is the situation in Pakistan that the government has to hold negotiations with IMF officials in Dubai — the IMF declared Pakistan off-limits for its personnel after a bomb ripped through the Marriott Hotel in Islamabad last month. Pakistan has just six days before its dwindling foreign-exchange reserves run out, the Foreign Minister told his German counterpart, Frank-Walter Steinmeier, on Tuesday. Steinmeier helpfully suggested that because the situation in Pakistan was so difficult, the IMF ought to expedite negotiations over the bailout that are set to conclude next month.

"A year ago, it was the emerging markets that were carrying the world," says an IMF official. "Boy is that over." In fact, countries like Russia and Kazakhstan that just six months ago were fat and happy on a diet of petro dollars are now burning through national "rainy day" funds and bailing out banks that had only peripheral exposure to subprime mortgages. Their problem now is foreign-equity investors — hedge funds in particular — stampeding for the exits.

Pakistan flag carrier posts big loss
Airline's Third-Quarter Loss Widens on Fuel

Pakistan International Airlines Corp., the nation's largest carrier, said its third-quarter loss widened because of the higher cost of aircraft fuel.

The loss was 20.4 billion rupees ($250 million) or 9.79 rupees a share, in the three months ended Sept. 30, compared with a loss of 3.15 billion rupees, or 1.62 rupees, a year earlier, the Karachi-based company said in a statement to the stock exchange today. Revenue increased to 22.8 billion rupees, from 17.2 billion.

Pakistan International's shares, which have dropped 33 percent this year, were un traded at 4.20 rupees on the Karachi Stock Exchange. The airline's cost of fuel almost doubled to 14 billion rupees in the July-September period, from 7.12 billion rupees a year earlier, according to the statement. The company's net loss on currency conversions rose to 14 billion rupees, from 270 million rupees.

The loss in the nine months ended Sept. 30 widened to 38.4 billion rupees, from 10.9 billion rupees a year ago, the statement said.

Pakistan's government owns 88 percent of the airline.

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Next US president's Afghan challenge

The next US president stands to inherit a potentially more dangerous challenge in Afghanistan and Pakistan than the situation that led to the September 11 attacks in 2001.
The situation is so serious that analysts say the incoming administration will need to move quickly on a broad new initiative to address the Pashtun region, which both countries share, with a mix of military pressure and economic aid.
"It will be extremely important to have an effective new strategy right out of the box. They cannot wait for a lengthy transition," said J. Alexander Thier of the US Institute of Peace, a congressionally funded Washington think tank.

The two US presidential nominees, Democrat Barack Obama and Republican John McCain, have pledged to make Afghanistan a top priority if elected to the White House on November 4.

It is not about the feel-good factor

Keeping friends in the Muslim world

Covering developments in Pakistan in recent weeks, I've been struck by how many Pakistanis blame the United States for the disturbing turn their country is taking. Standing inside the gutted Islamabad Marriott late last month, some eyewitnesses saved their most bitter remarks not for the suicide bomber, but for Washington. A few believed the outrageous conspiracy theory that the CIA was behind the bombing—to justify further U.S. raids inside Pakistan, they claimed. But more saw the attack as Taliban payback for those American raids. So, by their logic, Pakistanis were again paying the price for U.S. actions unconnected to their interests. They were angry.As the military conflict in the tribal areas grows more intense, many Pakistanis see their country descending into a war that they believe is of America's making.

The situation in Pakistan demonstrates the mountain the next U.S. president has to climb in the Muslim world. America is faced with the task not only of fighting terrorists, but also of winning back a far larger segment of the population who see the United States as a greater threat than the extremists. Today, a remarkable variety of Muslims believe in a grand Western conspiracy against Islam, led by America and bent on punishing Muslims for Sept. 11, 2001. For them, the wars in Iraq and Afghanistan are the most pointed examples. Guantanamo, Abu Ghraib and America's continuing relationships with Middle Eastern dictatorships are also cited as evidence. Increase in Islamic fundamentalism is an enormous problem, but for many Muslims, it is American policies, not religious beliefs, that drive their anger.

And so, I hear that anger even from people we'd expect to be our allies.

But, why should U.S. care?

This is not about a feel-good factor. It's about advancing U.S. interests. Many of our most important goals in the region—from keeping young Muslims from joining extremist groups, to promoting political reform, to fighting the Taliban in Pakistan—are impossible without local support. While there are some in the Muslim world who will never be our friends and for whom military force is necessary—like the captured Al Qaeda fighters I have met—the majority of Muslims are not fundamentalists but remain convinced of America's bad intentions. They could be our friends, but today see us as a disappointment and a threat.

Pakistan has not yet requested IMF funding: official

Pakistan has not yet made a formal request to the International Monetary Fund for cash assistance to help it overcome the current economic crisis, a top finance ministry official said Thursday.

Pakistan immediately needs up to 4.5 billion dollars to deal with a balance of payments crisis, which had raised the prospect of the violence-hit country defaulting on its foreign debts.
The IMF is one of the last options Pakistan looks at before shoring up funds from multilateral donor agencies and friendly countries, but has initiated discussions with the Fund because it has a few weeks to arrange the money.

"We have not formally requested the board of IMF for a facility as of now," financial advisor Shaukat Tarin told a press conference.

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Pakistan and Belarus seek IMF aid

Pakistan sought help from the International Monetary Fund on Wednesday to avoid a possible economic meltdown brought on by high fuel prices, dwindling foreign investment and soaring violence by militants.

And Belarus has requested IMF credit to uphold stability and economic growth rates, the Belarussian central bank said Wednesday.

Pakistani officials had previously said that turning to the IMF to avoid defaulting on billions of dollars of sovereign debt due in the coming months would be a last resort.

IMF aid often comes with conditions like cutting public spending that can affect programs for the poor, making acceptance of the aid a politically tough choice for governments.

The IMF said Pakistan had requested help "to meet the balance of payments difficulties the country is experiencing." The IMF said that the amount of money sought by Pakistan had yet to be determined and that talks on the loan package would begin in a few days.

Economists in Pakistan say that as much as $5 billion is needed to avoid defaulting on sovereign debt due for repayment next year but that $8 billion more may be needed.
The country has also asked for loans from wealthy nations and multilateral agencies like the World Bank. Analysts say Pakistan will probably get that help also because of its front-line status in the battle against terrorism.

Any default would further undermine local and international confidence in the Pakistani government and the economy at a time of intense fighting against Al Qaeda and Taliban militants near the Afghan border.

Beijing offering Pakistan a lifeline

Tough financial bind has U.S. ally
seeking bailout from China

Chinese Premier Wen Jiabao pledged to help Pakistan overcome its economic troubles, Chinese state media reported yesterday. Details were not disclosed.
Pakistani President Asif Ali Zardari was expected to seek the equivalent of $500 million or more in soft loans from its neighbour as it struggles with a financial crisis.
Wen said the countries were ready to advance their strategic relationship, a day after Zardari and President Hu Jintao signed 11 trade and economic co-operation deals.

Pakistan faces a critical balance of payments shortfall, inflation that's close to 25 per cent and has borrowed heavily from the central bank to cover a budget deficit. Analysts suggest central bank reserves are barely enough to cover two months of imports, putting Pakistan in urgent need of $3 billion to $4 billion.


Financial crisis:

Saving Pakistan comes cheap

Pakistan has timed its request for international help to perfection. In this era of multi-billion pound bailouts - with the rich world devoting perhaps £2 trillion to rescuing its devastated banks - the cost of helping out Pakistan is remarkably modest.

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

President Asif Ali Zardari needs a mere £6 billion to avoid defaulting on his debts and stave off the immediate threat of bankruptcy. This sum is only 0.3 per cent of the amount now devoted to saving the global financial system.
For the amount that Britain is prepared to spend to salvage its banks - £500 billion - Pakistan could be rescued no less than 83 times over. Since the terrorist attacks on September 11, America has given Pakistan £5 billion of aid. This is barely one per cent of the £458 billion that Washington may be forced to spend on saving Wall Street.
Bereft of oil and possessing little natural wealth, Pakistan has suffered decades of economic failure and stagnation. Ten years ago, it came within a whisker of formally defaulting on its debts and declaring itself bankrupt. So the country's leaders have become perennial seekers of bailouts.

Yet for once, the stigma attached to being an international beggar has entirely disappeared. Today, almost every government is besieged by formerly well-heeled beggars - and most are seeking far larger sums than Pakistan with its 165 million people.

In this time of crisis, saving a valued ally has never seemed so cheap.

Nasim Zehra (left), an associate at the Asia Center, and Mumtaz Zahra Baloch, first secretary at the Pakistan embassy in Washington, D.C., talk and listen during the daylong conference 'The Critical Engagement: Pakistan and U.S. Relations' in the Tsai Auditorium at CGIS.

Pakistan critical to South Asia stability

Asia Center hosts U.S.-Pakistan relations conference

A top Pakistani official gave voice to the frustration the South Asian nation feels in its relations with the United States , saying that though Pakistan has been a staunch U.S. ally, the United States ignores Pakistan until its interests force its attention there. "The United States has only acted as a fire brigade: It puts out the fire and moves on," said Mushahid Hussain Sayed, chairman of the Pakistani Senate's Foreign Relations Committee.
Sayed decried the short attention span of U.S. diplomacy, saying that Pakistan was important to the United States when the Soviet army was in Afghanistan. With the withdrawal of the Soviets in the late 1980s, the United States ignored Pakistan until after the 9/11 bombings, when the nation rapidly rose on the U.S. foreign policy agenda.

Sayed was the keynote speaker for a daylong conference on Pakistan and the United States called "The Critical Engagement: Pakistan and U.S. Relations," and held at the Center for Government and International Studies. Sponsored by the Asia Center, the conference also featured several panel discussions on strategic issues, reform, the economic outlook, and future engagement.

Pakistan sees the United States as something of a "fair-weather friend," Saich said, describing the relationship between the two nations as a turbulent one that shifts along with the changing perceptions of U.S. strategic interests. Though the U.S. interest in Pakistan has shifted over time, Sayed said the two nations' interests are strongly aligned today toward peace in the region, toward winning the fight against extremist terror, and toward greater economic growth and cooperation.

Chinese premier vows to strengthen ties with Pakistan

China is ready to further advance strategic cooperation with Pakistan, Chinese Premier Wen Jiabao said here.

During a meeting with visiting Pakistani President Asif Ali Zardari, Wen said China and Pakistan share common interests.

He pledged to help Pakistan overcome its economic problems by offering assistance, however, he did not specify what type of assistance China would provide.
Wen said the two countries should continue to facilitate trade and economic cooperation in a practical, efficient and orderly way.

Zardari expressed willingness to work with China to advance thetwo country's political friendship, which he said is "deeper than the sea."

This is Zardari's first overseas trip since assuming office last month. He promised Wen, during a September meeting in New York, that he would come first to China.

Zardari said ties between Pakistan and China have been fostered by several generations of leaders.

Pakistan to press India for
‘stolen’ water

Pakistan would neither drop its claim nor sell the Chenab water which India ‘stole’ in September this year.

India will have to compensate Pakistan during the coming Rabi season. Otherwise, Islamabad will resort to other treaty mechanisms to get its due share.

Pakistan has no objection now to the design of the dam, which was changed by India on recommendations of a neutral expert. But it also had to observe the filling criteria, which was not part of the treaty.

If India insists on its rights under the treaty it also has to observe its duties that exclude tampering with the Chenab flows. It is under treaty obligation to release 55,000 cusecs even when filling the lake

Pakistan looks to China as ties with US undergo strain

JUST when Pakistan’s relations with the United States are being strained, its president looks East to China. That, at least, has been how Asif Ali Zardari’s trip to Beijing this week has been portrayed by the Western media.

But Pakistan has been an ally of China for far longer than the present tiff between Islamabad and Washington over indiscriminate US attacks on Pakistani soil against al-Qaeda suspects. For decades, Pakistan and China have regarded each other as a strategic counter to their common neighbour and perceived rival, India.

And so what might seem like a political triangle in Zardari’s trip is actually part of an evolving quadrilateral. The China-Pakistan alliance predates current US attempts to use India as a buffer in an encirclement policy of a rising China, more so the current hiccup in US-Pakistan relations.
Nonetheless, the US role on both levels has added to a sense of estrangement in South Asia. The perceived rise of India has also raised the stakes, although diplomacy still prevails all-round.

Where might all this lead to?

It is far too early for Washington to lament any “loss” of Pakistan in the classic strategist’s zero-sum calculations, mainly because it never quite “won” it. While steadfastly unaligned, or multi-aligned, Pakistan never left China as a close neighbour and major source of military equipment.
Washington policy circles are currently abuzz over the content and direction of Pakistan’s new government, up to and including decoding Zardari. The present unsettling of bilateral relations only adds to the hum.

Yet in all of this, China is conspicuously absent. The United States needs no help from anyone in seeing its relations with Pakistan plummet, given how US forces continue to bomb and shoot their way through Pakistani villages bordering Afghanistan.
In reading Islamabad however, US officials would be taken by Zardari’s Beijing visit at this particular time. The trip that began yesterday can be interpreted on both symbolic and substantive levels.

Symbolically it is Zardari’s first foreign visit as president, and taken at a time of declining ties with the United States.

Although Pakistani diplomats play down this aspect by citing how China has long been a new Pakistan president’s first foreign destination, talks are also expected to centre on a new nuclear deal to mirror the US-India nuclear agreement.

More substantively, Zardari’s four-day trip is more than an extended courtesy call since talks will cover a wide range of issues. No less than six key ministries or government agencies number in the entourage, from finance and the interior (home ministry) to defence and foreign affairs.

Bilateral trade in the first three quarters of this year alone more than tripled to US$7bil (RM24.5bil) compared to the whole of 2002. Both sides are optimistic enough to cite a target of US$15bil (RM52.5bil) by just 2010.

A joint declaration is expected to be announced at the conclusion of talks on Friday. Both China and Pakistan are poised to take their already strong ties to an even higher level, and here the United States could be conspicuous by its absence.

Pakistan: Fashion

Persian Gulf Arab states may not keep dollar

In early July, the Central Bank of the United Arab Emirates announced that the country would drop its 30-year peg to the dollar by June 2009, linking instead the national currency, the dirham, to a basket of currencies which would include the dollar and the euro. Some experts claim that the move would lead to the fast appreciation of the dirham against the dollar.


The UAE is one of the world's main holders of dollar-denominated assets. However, the dollar has gone down by 33% against the euro since 2003, severely devaluing currencies of the six states of the Persian Gulf Cooperation Council (PGCC) -Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Bahrain and Oman- even as oil prices reach record levels. Inflation, meanwhile, has surged to double digits in all Persian Gulf Arab countries, except Bahrain.
Inflation in the UAE, the second-largest Arab economy, surged to 11.1% in 2007 from 9.3% because the weak dollar and high global food prices led to more expensive imports. With its monetary policy tied to the United States, the UAE has fixed price limits on basic foods and building materials in an attempt to control prices, Bloomberg has reported. The UAE's oil-rich economy expanded 16.5% to 190 billion dollars in 2007, which is equivalent to 1.3% of the size of the US economy, according to data compiled by Bloomberg.

The National newspaper, owned by the ruling family of Abu Dhabi, reported on July 6 that the UAE will call on all six Persian Gulf Cooperation Council member states to de-peg their currencies from the US dollar to curb inflation. However, the UAE will not be the only country to scrap its peg to the US currency. Kuwait put an end to its 5-year dollar peg in May 2007 in favor of a basket of currencies. Since then, the uwaiti dinar has appreciated more than 8%; the country's inflation is lower than that of other PGCC states, mainly because it can freely determine its own interest rate policy.


Qatar has reduced its exposure to the dollar by approximately 60%, distributing its reserves between the US dollar (40%), euro (40%) and a basket of other currencies such as the yen, the sterling pound etc (20%).
The problem at hand is also influenced by social factors. In recent months, many of the Persian Gulf Arab countries, which depend on Asian foreign labor to man their rapidly growing economies, have experienced strikes as foreigners are demanding higher wages due to the devaluation of local currency. PGCC governments fear that if they do not take rapid measures crises will evolve.


All Persian Gulf economies seek to reduce their exposure to the weak US dollar. PGCC central bank governors are expected to meet in September to finalize a draft of the Single Currency Agreement, a framework that would let them set up a monetary union by 2010. If an agreement is reached, PGCC economy ministers and eventually heads of state will need to deal with the issue in December.
China and Russia have also been gradually shifting their foreign currency reserves from the dollar to the euro. The Russian Central Bank expects that the US dollar portion of its reserves will fall to 45%. Iran has gone even further, conducting euro oil deals in response to US pressure on the country.


Given the poor performance of the US economy, and the weakness of the dollar against all major currencies, new measures to reduce the exposure to the dollar are widely expected.
The most likely scenario will be that Persian Gulf countries will switch to a currency basket, thus enabling their financial institutions to invest in assets denominated in other currencies. However, a significant reduction in US dollar exposure by these countries and also by China might prove to be devastating for the US economy.

Pakistan: Think about it.

we still have a chance in this country

What would your life be like in this country if you followed rules on the road, paid taxes and respected others? What if you charged your customers a just amount had price tags on all products and stopped ripping off a new customer? What if you didn’t have to fight each time with rickshaw driver for asking you 80 rupees for what you paid for 50 rupees yesterday?

What if you stopped procrastinating, overcame your fears, and began taking care of your neighborhoods, stopped littering on the ground? Would your life be different? I bet it would! What if you started taking responsibility for whatever happens to you? Certainly if you did take more responsibility, than there will be no government, no dictator, no system, and no other nation to blame.

To me it seems like we still have a chance in this country! We have a freedom of choice, we can exercise. A first step in any dramatic change is an obvious “dramatic personal change”. It has taken us 60+ years to be here today, and are you accepting to have that change you envision about Pakistan overnight? For those who think whole system is failed, than what are you doing to address it? Never doubt that a small group of committed people can change the world, indeed it is the only thing that ever has. We were a minority in India. Been there, we have done that!

“It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.”-Charles Darwin. That is the law of universe, in order for us to survive as a nation; we will have to change at very local level. I, you and people out on street will have to change. No leader, No governments, No foreign policy will change anything for us, the sooner we realize the better off we will be.

The Minar-e-Pakistan still stands, but, even more important, the goals, the guts, hard work and determination of the Pakistani people remain untouched. I, for one, have decided to get back to work; not just to a job, but to the work that I love, the kind of work that we all aspire to do. I just got up in the morning, and it felt terrific to reclaim my freedom to decide, to choose. I have all I need in this country, I have a heart, I have brain to decide what is good and what is bad, I have the willingness, determination and a burning desire. I’m going to invent things, start things, teach, and improve my Pakistan.

Why not start today living the way we want to see your nation? A year from now, we may wish we had started today. As long as we believe in the dream that is Pakistan, we win. Faith will be rewarded. You and people like me will have to insert the key ingredient PASSIONS.

Pakistan Zindabaad!

Pakistani nation not in danger, says Boucher

A lot of ‘very dangerous things’ are happening in Pakistan and some ‘very dangerous people are holed up in Federally Administered Tribal Areas (FATA),” but that does not mean Pakistan as a nation is in danger, Assistant Secretary of State for South and Central Asia Richard Boucher told a group of Pakistani correspondents at a special briefing on Thursday at the State Department.

He said Washington shares the new Pakistani government’s vision of a modern and progressive Islamic Pakistan, something the extremists reject, which is why they have to be fought and defeated.

Pakistan on its knees ?

Would India be ready to play Russia to Pakistan’s Iceland?


We have seen banks go bust. And it could be a matter of time before a few countries go bankrupt as well. The two most likely candidates right now are Iceland and Pakistan.

With some eerie timing, the International Monetary Fund has recently put out a research paper on the costs of such sovereign defaults. Though this research does not reflect IMF’s official view of the matter, it does tell us some important things.

There are three economic costs—to reputation, trade and the financial system of that country. And there is also a fourth cost: political. These can be “dire” for the incumbent government and its leaders. Their survival is at stake.

Political tremors can also be felt in the neighbourhood. Iceland has unsettled its European neighbours by asking Russia for a bailout, rather than the European Union or IMF.

It is worth speculating now what a Pakistan default might politically mean for India. There is already some reason to believe that Asif Ali Zardari is trying to win brownie points, as when he rightly called the fighters in Kashmir terrorists. So, here’s a hypothetical question: Would India be ready to play Russia to Pakistan’s Iceland?

‘Pakistan cannot afford sanctions’

Pakistan’s credit rating is nearing bankruptcy and its economy cannot afford sanctions by the world powers, Defence Secretary Kamran Rasool told the Senate standing committee on Defence in a briefing on Tuesday. Pakistan’s financial position was very week, he said, and the country could not talk about taking on the US. He said Pakistan could not succeed against terrorists without co-operation and intelligence-sharing with the United States and that if Pakistan pulled out of the alliance, it would have to bow down after international powers imposed sanctions on it and declared it a terrorist state.
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Anniversary of October 8 earthquake:
Three years on, nation remembers devastation



Third anniversary of deadly earthquake of October 8, 2005 is being observed today (Wednesday) to share grief of the victims. The day will dawn with special prayers for those killed in the quake as well as progress and prosperity of the country.



In Muzaffarabad, sirens will be sounded at 8.52am. All traffic will come to a standstill for one minute at this time to pay homage to the victims. Later, a collective prayer will be held at University Ground.It will be a state holiday throughout AJK. Sardar Attique Ahmed Khan, the AJK prime minister, his cabinet, members of both houses of the AJK Parliament, social and political workers, NGOs and general public will take part in the programmes to remember the tragedy.



International Day for Natural Disaster Reduction today: This year’s International Day for Disaster Reduction coincides with the third anniversary of the 2005 earthquake. Cyclone Nargis in Myanmar, earthquake in China’s Sichuan province, floods in the US and India, and a deadly drought in Africa show that more needs to be done worldwide to safeguard lives, livelihoods and economic development.

Indian politicians tog up in Pakistani designs

The chic clique that walks the corridors of power in India gets its wardrobe from Pakistan. The Indian politicians form the major part of the clientele of Pakistani designers, who eye the country as a prospective market.

In the past one year, many designers have made frequent trips to the metros of India, especially Delhi. Hina Anjum, who claimed that she was flooded with orders from politicians in Delhi, has made over four business trips to India in the past six months, focusing mainly on Delhi and Punjab.

Though she talks excitedly about the offers, she prefers not to disclose the identities of the clients. “It is a professional secret. But I have to admit that I have got maximum response from politicians,” she said.

She said the orders that she had received during her recent exhibition in Delhi outnumbered what she received in two months. “I have been flooded with offers of designer suits, especially those that can be given away as gifts,” she said, adding that Pakistani fabric was not only attractive, but also durable.

Zardari U-turn on Kashmir terrorism

PAKISTAN President Asif Ali Zardari was at the centre of a political storm yesterday after turning decades-old policy over disputed Kashmir on its head and declaring its Islamic "freedom fighters" to be "terrorists".

The statement by Mr Zardari has sent shockwaves through Pakistan's political elite and is believed to be causing consternation among senior ranks in the 600,000-strong army, which maintains freedom for Indian-administered Kashmir as one of its most hallowed aims.
Indian authorities in Kashmir at the weekend imposed an indefinite curfew ahead of expected mass demonstrations demanding India's expulsion from the territory. In the past two months, Kashmir has seen some of the biggest pro-separatist demonstrations since the uprising against New Delhi's rule began in 1989.

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It's a bombshell dropped by the Pakistani President, one that has been welcomed in India, shocked many in Pakistan, and been condemned in kashmir.
In an interview to the Wall Street Journal President Asif Ali Zardari called the militant groups operating in Kashmir "terrorists".
He also said, "India has never been a threat to Pakistan. I, for one, and our democratic government is not scared of Indian influence abroad."
Zardari's statement certainly is a departure from Pakistani policy that calls Kashmir the core issue with India and which calls the insurgency backed by the Pakistan's ISI, rightful jehad. It's a departure many in his country lashed out at.

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The two nuclear-armed South Asian neighbours have fought three wars over Kashmir, a territory once described by former US president Bill Clinton as "the most dangerous place in the world" because of its potential to cause a nuclear conflagration. About 50,000 people are believed to have been killed in fighting in Kashmir since 1989.

India has welcomed Mr Zardari's tough stand on Kashmir.

Pakistan: Book Review

Afghan war’s hidden blunders

The book brings clarity to the Indo-Pak war number four (or five?) relocated to Afghanistan with India firmly entrenched with the Northern Alliance and the Karzai government, and Pakistan with its proxies embedded in Al QaedaJournalist .

Gutman has certainly produced the most comprehensive and revealing account to-date of the post-Soviet invasion Afghan war. He has moved from the written sources available to all to interviews that he was able to conduct with such key personalities as were involved in the internecine jihad of the triumphant mujahideen after the defeat of the Soviet Union. Everyone who went into the savage cauldron of Afghanistan today finds himself defeated, including the two states that most preened themselves over the victory: the United States and Pakistan.

The story begins in 1988 with Pakistan in the driving seat, putting together a government in exile — Interim Islamic Afghan Government of the mujahideen — in Rawalpindi near the Pakistan Army headquarters. The 519-member shura that was to choose the government was nominated by the seven jihad militias located in Peshawar and was plied with $26 million from Saudi Arabia. Mujaddadi was chosen president but he travelled to Iran and promised the Shia leaders one hundred seats in the shura. Back in the councils of the Sunni seven, the view was different: one hundred was cut down to sixty after which the Shias boycotted.Bravery comes only with myopia and that was what was practised by the mujahideen. The government represented only 30 percent of the population of Afghanistan. Saudi money ensured that Abdul Rasul Sayyaf, the Wahhabi warlord the Arabs liked, was nominated prime minister, and Pakistan was able to get its favoured warlord Hekmatyar nominated defence minister with Saudi help although the rest of the militia leaders despised him for his tactics. The 1989 plan to attack the Najibullah regime in Jalalabad and establish the jihadi government there was set afoot with ISI chief Hamid Gul promising Prime Minister Benazir Bhutto that the Afghan government would fall in one week (p.28).The Jalalabad offensive was a fiasco. The great mujahideen suffered their first defeat after defeating the Soviets, one third of the 12,000 killed being theirs. Soon afterwards, the Massoud-Hekmatyar vendetta made its imprint, the latter’s commanders killing 30 of Massoud’s in an ambush. Mujaddidi denounced Hekmatyar as a criminal and Hekmatyar left the government as defence minister. Jamiat commander Massoud caught four of Hekmatyar’s guilty commanders and executed them. Defeats and killings were to have no moral impact on anything in Afghanistan after that.

Those who backed the savages sustained all the damage and warded off punishment in Pakistan by the simple device of taking over power.The second lethal defeat for Pakistan was the Jalalabad-like offensive of Mazar-e-Sharif in 1997, organised by the ISI once again, based on the defection of a Rashid Dostam second-in-command, Malik Pehlawan, in favour of the Taliban. This was the offensive from the west of Afghanistan; another offensive from the south was mounted after buying the defection of a Massoud commander (p.102). Seeing Pakistan involved, Iran weighed in on the other side, training the troops of Jamiat’s other commander Ismail Khan and airlifting munitions and Hezbe Wahdat Shia warriors to them. Uzbekistan sought to make its own chess-move against Pakistan, conscripting Uzbeks to help despatch supplies to Dostam. Uzbek-dominated Tajikistan came down on the side of Massoud.Another ally of Dostam, General Abdul Majid Rozi changed loyalty in Badghis province and arrested Ismail Khan whom he handed over to Mullah Razzaq who proceeded to Mazar-e-Sharif to take charge of the city abandoned by Malik. Jamiat chief Rabbani fled to Tajikistan and Dostam sent his family away and made himself scarce too.

The promise to Malik was that he would be made governor of Mazar, but soon Mullah Razzaq began to enforce the Sharia, beating up unveiled women and destroying shops selling ‘prohibited things’. He entered Malik’s room and tore down a painting of Omar Khayyam with a goblet of wine because that was ‘against Islam’ (p.104). All TV sets were smashed in the city and Malik was told to go to Kabul as a deputy foreign minister while his transport and other assets were simply taken over.At this point Pakistan recognised the government of the Taliban, but Prime Minister Nawaz Sharif didn’t know who had okayed the recognition because he hadn’t. Foreign Minister Gauhar Ayub followed orders that came from a source other than the prime minister but that was more or less routine in Pakistan by then (p.105). Then the defeat started. Mullah Razzaq went to the Hazara quarters in the city and asked them to disarm. They refused, and already scared by the ‘enforcement’ of Taliban sharia, began hunting for the Taliban under Malik’s command. They killed 350 of them including Mullah Razzaq. They ended up bagging 3,000 as prisoners.

What followed was a massive war crime. The prisoners taken in war were all executed.The book says Pakistan was the dominant power behind the scenes, the ISI putting Malik in touch with Mullah Ghaus the foreign minister, telling the latter the Taliban could capture Mazar without a fight. But uncannily it also sent in Pakistani Kashmiri militants as military assistance. Hamid Gul told the author, ‘ISI brokered a deal but it was the wrong one’ (p.108). Col Imam, the ISI officer called Ruler of Herat, later denied that the Mazar defeat was a big fiasco and funnily also claimed that the Taliban who invaded Mazar were unarmed and were mostly traders! He also put the blame on Iran for asking the Hazara Shias to resist and start the massacre (p.109).Col Imam was really the American-trained Amir Sultan Tarar, the commando officer who trained the mujahideen in camps run by Pakistan and the US. He was sent into Kandahar in 1994 to keep the Taliban going in the right direction but he soon moved to the more ‘strategic’ location of Herat, which was to put Pakistan and Iran face to face when the Taliban finally got hold of Mazar in 1998 with a massacre to shame all massacres, including the killing of the Iranian diplomats in the Mazar consulate at the hands of the Sipah Sahaba boys sent in from Pakistan. The book says they arrested the officers but, after taking their cash, handed them over to the Taliban for the killing (p.137).

This book is an epitaph for the doctrine of ‘strategic depth’, but the policy of playing proxies in Afghanistan was never abandoned after 9/11; so the war against India goes on while Washington thinks it is against NATO-ISAF. The book brings clarity to the Indo-Pak war number four (or five?) relocated to Afghanistan with India firmly entrenched with the Northern Alliance and the Karzai government, and Pakistan with its proxies embedded in Al Qaeda. The real epitaph will come later and it will be for a much bigger demise than just the fading of the doctrine of strategic depth. *

Pakistan flags waved in five Indian districts

GAUHATI: Depressed from government actions people in Assam waved Pakistan’s flags in five districts.Thirty people have so far been killed in various clashes and official properties in a large number have been damaged.As usual, the Indian government, blaming Pakistani agencies for the violence, has ordered an immediate enquiry for this incident.This has also been reported that racial clashes have taken place in Assam due to which thousands of people became homeless.

US Defense Secretary Robert Gates last week praised the recent efforts of the Pakistani Army in bolstering a US military offensive into the semi-autonomous North West Frontier Province. The US wants to target militants who attack its occupation forces in neighboring Afghanistan and then flee into Pakistan to regroup and organize. Pakistan has a new civilian government, having replaced the long-time US ally, former General Pervez Musharraf. It faces a challenge that its predecessors have often grappled with: how to deal with the tensions between fundamentalist tribal militias including the Taliban, the Pakistani military that tacitly supports such militias, and the US government that finances the Army? Here in the United States, it has become a central foreign policy issue: what to do about Pakistan, simultaneously an ally in the “war on terror,” and a source of anti-US fundamentalism?

The fall of the Dollar Empire

The US economy has grown largely on the back of speculative credit derivatives that have risen exponentially to $ 35 trillion, which is more than double the size of the entire US economy! This is an approaching iceberg, and all you’ve seen (in the sub-prime scandal) is the tip.

Should one consider the US crisis as an opportunity for booming economies like India and China to assume a more important role in the world’s markets?

They already have. The US is totally dependent on China’s goodwill. If the US were to ban all imports from China tomorrow morning the US economy would suffer a heart attack as it would have to import those same goods more expensively from elsewhere. In retaliation, the Chinese would sell their surplus Dollar mountain and precipitate a global economic depression. The emerging economies would be better able to withstand such an Armageddon scenario because they are accustomed to hardship, while decadent US consumers are already bankrupt despite an environment of extended global economic growth. The US would probably suffer riots, internal conflict and starvation for the first time in 80 years. Emerging economies are used to economic hardship and even war. The US is much more fragile than its leaders and economic pundits admit. There is a huge fundamental and conceptual difference between a) going from recession to depression (the USA), and b) going from 10 % + economic growth to a more reasonable 3 % economic growth (Russia, India, China, ….).

$700bn — five times Pakistan’s GDP

SHOCKWAVES from the global credit crisis spread this week, threatening industry and jobs worldwide and putting pressure on the US Congress to pass a $700 billion bailout of the financial sector.

But how much is $700 billion — what can it buy? Compared to the debt of the United States, which the Treasury has asked to increase to $11.315 trillion to fund the plan, it doesn’t seem much.Here are a few of the things that can be done with $700 billion:

— The United States has spent more than $800 billion on the Iraq and Afghanistan occupations since 2001.

— Just 12 Bill Gateses could foot the bailout bill. The Microsoft founder tops Forbes US rich list with a personal fortune estimated at $57 billion.

— Collectively, the 400 richest Americans have a net worth of $1.57 trillion, or roughly twice the value of the bailout.

— $700 billion is roughly equal to the GDP of Netherlands, or five times that of Pakistan.

— It is only $100 billion short of the combined GDP of all of Africa.

— It is only $78 billion more than the US defence budget.

— It would buy around 130 of the latest, biggest aircraft carriers, which cost $5.3 billion each.

— The plan could be funded with the market capitalisations of the world’s two largest oil companies, Exxon Mobil Corp and PetroChina, which stand at $403 billion and $325 billion respectively. There would even be $28 billion in change.

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USA 2008: The Great Depression

Food stamps are the symbol of poverty in the US. In the era of the credit crunch, a record 28 million Americans are now relying on them to survive – a sure sign the world’s richest country faces economic crisis.

We knew things were bad on Wall Street, but on Main Street it may be worse. Startling official statistics show that as a new economic recession stalks the United States, a record number of Americans will shortly be depending on food stamps just to feed themselves and their families.
Dismal projections by the Congressional Budget Office in Washington suggest that in the fiscal year starting in October, 28 million people in the US will be using government food stamps to buy essential groceries, the highest level since the food assistance programme was introduced in the 1960s.

And the next monthly job numbers, to be released this Friday, are likely to show 50,000 more jobs were lost nationwide in March, and the unemployment rate is up to perhaps 5 per cent.

US cannot afford to see Pakistan fail but its options in Pakistan are diminishing rapidly.

A panel of top Pakistan experts and former US officials, including Richard Armitage, the man who threatened to bomb Pakistan into the Stone Age and Rep. Lee Hamilton, who headed the 9/11 Commission, has prepared a detailed report which says the US cannot afford to see Pakistan fail but its options in Pakistan are diminishing rapidly.

"Pakistan may be the single greatest challenge facing the next American President...Washington needs to rethink its approach to Pakistan. If we genuinely believe that a stable, prosperous Pakistan is in our interest, we must be much smarter about how we work with Pakistan and what sort of assistance we provide," the report released by the Pakistan Policy Working Group says.The Group claims to be an independent, bipartisan group of American experts on USñPakistan relations and was formed in January 2008 to assess the state of these relations and to offer ideas to the next US President and his Administration on managing this critical partnership.

It says effecting smarter diplomacy in this environment laden with political unrest and palpable anti-Americanism, the US is facing tremendous diplomatic challenges. "Given the disappointments with Pakistan's elected government, some in the US may feel nostalgia for the days when President Musharraf wore his uniform and commanded a docile parliament. But just as the US was too slow in detecting the public disaffection with President Musharraf before the 2008 elections, it must not too quickly lose patience with Pakistan's elected leaders."

'India is no longer enemy no. 1 for Pakistan'

How much should India fear Pakistan, considering a recent BBC 23-nation survey found that Pakistan and Egypt were the only countries to take a relatively positive view of al-Qaida. The poll said that only 19% of Pakistani respondents had a negative view of Osama bin Laden’s terrorist network. Should this be reason enough for India to worry about the stability and intentions of its next-door neighbour? Pakistani experts don’t think so.

They say the survey actually shows Pakistanis as desperately keen to oppose the US rather than support al-Qaida. "I don’t think the public makes a distinction between opposing the United States and supporting the al-Qaida," says Ahmad Bilal Mehboob, executive director of the Pakistan Institute of Legislative Development and Transparency (PILDAT). "Washington has been backing unpopular regimes in both Egypt and Pakistan, thus giving birth to anti-US feelings, besides imposing the war against terror," he adds.

Kamran Rahmat, Islamabad-based news editor of television channel Dawn News, points to an "overriding anti-America public sentiment" in Pakistan. There is some dispute over whether this anger is directed at the US as a whole or the Bush administration. Surprisingly, India seems to have gained from this turn of events as it is no longer seen as Pakistan’s Enemy Number One. Political analyst Ijaz Shafi Gilani says, "Undoubtedly, India was perceived as enemy number one by the Pakistani people for decades but that has changed over the last couple of years." He says that Pakistan’s rising hostility towards the US has tempered the anti-India feeling. A Gallup poll in Pakistan, conducted in 2007, showed greater support (compared to previous years) for trade with India, followed by support for relaxing bilateral visa arrangements.

There was less support for boosting bilateral cultural exchange. Similarly, a 2006 Gallup survey showed that half of the respondents favoured Pakistani actors working in the Indian entertainment industry, but 49% were against this and 1% said they were undecided or had no opinion. But anti-India feelings do persist. Tariq Rahman, a professor at Islamabad’s Quaid-i-Azam University, says many Pakistanis believe that Indian consulates along the Afghan border are stoking low-intensity conflict in Balochistan and indirectly funding the Taliban. However, he insists that this anti-India feeling is greater in the NWFP region and Punjab, not in Sindh or Karachi. Noted columnist Ayaz Amir says there is a feeling in some quarters that General Pervez Musharraf and his successor as president, Asif Zardari, have gone too far in their attempts to please the Indian leadership. He also believes that Islamabad has overstepped the mark in its repeated denunciations of terrorism.

Biden and Palin on Pakistan,Iran and Afghanistan

Biden: "John [McCain] continues to tell us that the central war in the front on terror is in Iraq. I promise you, if an attack comes in the homeland, it's going to come as our security services have said, it is going to come from Al Qaeda planning in the hills of Afghanistan and Pakistan. That's where they live. That's where they are. That's where it will come from. And right now that resides in Pakistan. A stable government needs to be established. . . . Look, we have spent more money -- we spend more money in three weeks on combat in Iraq than we spent on the entirety of the last seven years that we have been in Afghanistan building that country."

Palin: "As for who termed that central war on terror being in Iraq, it was Gen. [David H.] Petraeus and Al Qaeda, both leaders there, and it's probably the only thing that they're ever going to agree on, but that it was a central war on terror is in Iraq. You don't have to believe me or John McCain on that. I would believe Petraeus and that leader of Al Qaeda. An armed -- nuclear-armed especially -- Iran is so extremely dangerous to consider. . . . Our nuclear weaponry here in the U.S. is used as a deterrent. And that's a safe, stable way to use nuclear weaponry."

Pakistan's Mysterious New Spy Master

As Pakistan copes with a spate of terrorist violence and political unrest, Bush administration officials worry that they know too little about the man who was just appointed to lead the Muslim nation's sprawling spy agency, the Inter-Services Intelligence directorate. Last week, Islamabad disclosed that ISI's new chief will be Lt. Gen. Ahmed Shuja Pasha, Pakistan's former director of military operations and a protégé of Gen. Ashfaq Kiyani, the country's top commander. Kiyani, who once headed ISI and took training courses in the U.S., is admired and trusted by American defense and intelligence officials. But they don't know much about Pasha beyond his close ties to Kiyani and that he ran operations against militants who turned tribal regions along Pakistan's border with Afghanistan into a terrorist safe haven.

Washington relies heavily on ISI for intel on militants. Historically, says a former senior U.S. intelligence official, who also asked for anonymity, 80 percent of credible U.S. intel about terrorists in Pakistan originated with ISI.

Pakistan's army chief named a general considered a hawk in the fight against al-Qaida and the Taliban to head the country's powerful spy agency, asserting his control at a time of U.S. concern that rogue operatives are aiding Taliban insurgents in Afghanistan.
Lt. Gen. Ahmed Shujaa Pasha oversaw military offensives against militants in the lawless border regions with Afghanistan in his most recent job as director general of military operations. His appointment as head of the powerful Inter-Services Intelligence, or ISI, the country's main spy agency, was part of a broader shake-up of army top brass announced late Monday by military chief Gen. Ashfaq Parvez Kayani.

The moves were seen as a bid by the reform-minded general to revive the prestige of Pakistan's armed forces and assert control over the spy agency following the downfall of ex-President Gen. Pervez Musharraf in August. A month earlier, the Pakistani government reportedly tried to bring the ISI under the control of the civilian Interior Ministry but quickly reversed the decision after military dissent.

Pakistan is close to defaulting ?

Pakistan's crisis of net foreign reserves deepens

Pakistan's foreign reserve crisis deepened further Saturday as the central bank said it had lost around 700 million dollars in just a week. The State Bank of Pakistan's net foreign reserves fell to around 8.1 billion dollars against 8.8 billion, the bank said in a statement on Saturday.
The trend of declining reserves sent the Pakistani rupee down to 78.50 against the US dollar, compared with 78.30 on Tuesday.

The markets were closed from Wednesday to Friday due to Muslim festival of Eid-ul-Fitr.
Out of the 8.1 billion dollars around 4.68 billion dollars are the central bank's own reserves while the rest are deposits of private financial institutions.

"This is one of the biggest declines in just one week," said trader Malik Bostan, president of Forex Association of Pakistan.

Last week the Asian Development Bank approved a tranche of 500 million dollars to Pakistan for balance of payments support but it hasn't arrived yet.
The plunge in reserves from over 16 billion dollars just nine months ago brought the country's ratings to negative among the leading credit rating agencies such as Moody and Standard & Poor.
Both agencies expect Pakistan is close to defaulting on its commitments of external loan repayments.

A 15-nation grouping called "Friends of Pakistan" is scheduled to meet Tuesday in Dubai to discuss the country's 15-billion-dollar bail-out request.

Make Eid Not War.

Shape of the moon clouds Muslim holiday

A tentative crescent moon rose on Monday night, marking the end of the Ramadan month of fasting for Muslims around the world. Or did it?

Muslims in the Middle East are divided over the true phase of the moon. As a result, several countries recognised different dates for the festival of Eid al-Fitr, one of the two most important Muslim holidays, which marks the end of Ramadan.

In Saudi Arabia and the other Gulf Arab states as well as Jordan, the holiday began on Tuesday. Egypt, Syria, Iran and Algeria marked the start of the holiday.

Distinct methodologies for determining the start of the lunar month account for the differences but some now perceive an increasing political aspect to some of the calculations.
Saudi Arabia’s conservative Wahhabi scholars, in accordance with their traditions and literal interpretation of Islam, determine the start of the lunar month based on observations of the first crescent with the naked eye. In other countries, Muslim scholars aim to reconcile astronomical calculations with direct observations to determine the holidays.

But some commentators now believe the process may be as much about political allegiance as any religious observance. Saudi Arabia, as the birthplace of Islam and the location of its two holiest mosques, has always commanded a position of respect, but even so many Muslim countries have traditionally followed the sightings as determined by their own religious scholars.

Now, however, in several countries, the decision of which methodology to adopt has gained a sectarian or political edge. In Iraq, Sunni communities celebrated Eid on Tuesday, while Shia marked it yesterday – following the Iranian lead.

Countries with close Saudi links followed the ruling of the Mufti in accordance with their traditions. Gulf states, except Oman, often follow Saudi Arabia’s decision. This year, Jordanian religious officials indicated they did not see the crescent at all yet would follow the Saudi ruling in deference to “Islamic unity”.

Many ordinary Muslims express frustration with the different start day, saying it defies the spirit of the holidays when Muslims are supposed to celebrate worldwide. “I wish to see the day when all Muslim nations celebrate the Eid on the same day,” wrote Mohamed Abdelrahman, a contributor to a Saudi website.


Eid-ul-Fitr being celebrated today
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Eid moon ‘drama’ ends at 10.45pm

The moon of Shawal 1, 1429 has been sighted in the country, so Eid-ul-Fitr will be celebrated today 1 st October (Wednesday) with traditional zeal and fervour, Ruet-i-Hilal committee (Central Moon Sighting Committee) announced here on late Tuesday.

A suspenseful controversy hit Shawwal-moon sighting and kept the entire nation on tenterhooks for hours before the central Ruet-i-Hilal committee announced on Tuesday that Eid would be celebrated across the country on Wednesday 1st October.Political considerations seemed to have forced the committee’s hand when the NWFP government declared with uncalled-for haste that the elusive crescent had been sighted in the province and the festival would be celebrated on Wednesday.As unconfirmed reports about Eid swirled around the central Ruet-i-Hilal committee, which remained in session hours after the sunset, chairman Mufti Munibur Rehman appeared for a third time on television at around 10.45pm and announced that incontrovertible evidence about the Shawwal moon had been received – not from the Frontier but from Badin in lower Sindh – and accordingly Eid would be celebrated on Wednesday.

He explained that the delay in the announcement of the “Eid moon” had been caused by the painstaking analysis of evidence received from the length and breadth of the country.However, sources told Dawn that the committee had spent “quite some time weighing the option of ignoring NWFP moon-sighting reports”. But the option was ultimately rejected as divisive and politically injudicious.Religious scholars insist that an Islamic month begins with the actual sighting of the moon.

Those who sight the Shawwal moon first, celebrate Eid ahead of those who do not.If the central Ruet-i-Hilal committee had not made the announcement it eventually did, three Eids would have been celebrated in Pakistan: one on Tuesday by those who follow Saudi Arabia in the celebration of the festival, second on Wednesday by those in the NWFP who sighted the moon on Tuesday and third on Thursday by those who act upon guidelines of the central Ruet-i-Hilal committee.The final announcement of the Ruet-i-Hilal committee waspreceded by a flurry of activity in the NWFP which saw senior minister Bashir Ahmed Bilour, of the Awami National Party, first making an unscheduled visit to the provincial office of the committee and then making a public statement that reports had been received from district coordination officers about the sighting of the Shawwal moon.

Agencies add: In India, Eid will be celebrated in India on Thursday, according to an announcement made by Syed Ahmed Bukhari, the Imam of Delhi Jama Masjid.Meanwhile, Eid was celebrated on Tuesday in Saudi Arabia, United Arab Emirates, Bahrain, Qatar, Kuwait, Turkey, Afghanistan Kazakhstan, Lebanon, Jordan, Libya, Sudan, Yemen, Djibouti, Kenya, Uganda, Ethiopia, Tanzania and the Gaza Strip and other Palestinian areas.

Sunni’s in Iraq also celebrated the Eid on Tuesday, while the Shias will celebrate the festival on Wednesday.Egypt and Tunisia will celebrate Eid on Wednesday.

Eid was also celebrated on Tuesday by Muslims in most countries of Eastern Europe. Muslims in several parts of Philippines also celebrated the Eid, but President Gloria Arroyo announced that the festival would begin on Wednesday. Indonesia and Singapore have also announced that Wednesday would the first day of Eid.