US keeps up missile strikes despite Pakistan request to limit program; 6 die

ISLAMABAD — Two U.S. missile strikes killed six reputed Afghan Taliban fighters in a Pakistani tribal region Wednesday, drawing sharp condemnation from Pakistan's government just days after it asked Washington to limit such attacks.

The U.S. relies heavily on the covert, CIA-run missile program to kill al-Qaida and Taliban fighters in Pakistan's northwest — a program Pakistan publicly denounces but has secretly helped. The Obama administration said Tuesday it is negotiating a possible reduction in U.S. intelligence operatives and special operations officers in Pakistan as the two countries try to mend relations badly strained by the detention of a CIA contractor for killing two Pakistanis.

Pakistan's inflation outlook disheartening - c.bank

(Reuters) - Pakistan's inflation outlook is a cause for concern while increasing the tax base is the toughest structural reform to implement, the country's central bank said in its quarterly report on Friday.

The State Bank of Pakistan forecasts average inflation for fiscal year 2010/12 to be between 14.5 and 15.5 percent.

Pakistan's inflation outlook disheartening - c.bank

(Reuters) - Pakistan's inflation outlook is a cause for concern while increasing the tax base is the toughest structural reform to implement, the country's central bank said in its quarterly report on Friday.

The State Bank of Pakistan forecasts average inflation for fiscal year 2010/12 to be between 14.5 and 15.5 percent.

"The outlook for inflation is not heartening ... We fear that inflationary expectations are being ingrained," the report said.

The bank on Saturday left its key policy rate unchanged at 14 percent for the next two months, citing a smaller current account deficit and lower government borrowing in saying that immediate risks to macroeconomic stability had subsided.

The report said local fuel prices would have to rise to reflect international oil prices, due to a lack of fiscal space available, which would add to inflation.

On the fiscal side, the central bank forecasts the budget deficit for the year ending June 30 to be between 5.5 percent to 6.5 percent of GDP, compared with the government's target to keep it under 5.5 percent of GDP.

"We still think government's revenue targets are ambitious," the SBP said adding that broadening the tax base was the toughest structural reform to implement and "one that needs the greatest political will."

The central bank maintained its growth forecast of 2 to 3 percent for fiscal year 2010/11.

State Bank warns extreme economic challenges amid rising international oil price

KARACHI: The State Bank of Pakistan (SBP) on Friday warned of extreme economic challenges in the wake of rising international oil prices, which will lead to further energy shortfall, besides increasing social and political pressure.

In its second quarterly report for FY11, the SBP while maintaining the GDP growth rate at two-three percent during the current

Be ready for 14-hour power cuts, warns KESC

Karachi: The Karachi Electric Supply Company (KESC) has warned that loadshedding duration across the city would be increased to 14 hours a day when gas supply from the Sui Southern Gas Company decreases by up to 80 Million Metric Cubic Feet Daily (MMCFD) due to the Annual Turn-Around (ATA) of Bhit Gas Field that starts from April 11.

The KESC Chief Financial Officer, Tayyab Tareen, told newsmen at a briefing on Thursday that talks were on with SSGC officials and other authorities concerned that gas supply to the KESC should not

SBP report provides a lot of food for though

Via Business Recorder - State Bank of Pakistan Annual Report 2009-2010, Statistical Supplement lowered Pakistan’s growth estimates from 4.5 percent to 3 percent for the current year no doubt owing to the financial losses suffered due to the floods estimated at 9.3 billion dollars. Pakistan’s growth for the last fiscal years, according to this report, was 2 percent.This is markedly lower than the provisional growth statistics released by the Economic Advisor’s Wing on June 4, 2010 based on nine months data for the last financial year: 4.1 percent. The difference of a hefty 2.1 percent between statistics released by the State Bank and the Economic Advisor’s Wing reflects that the economic slowdown had started before the floods. Public confidence in official data will be enhanced if the proposal to make FBS an autonomous corporate body is implemented in true spirit.And, the SBP is empowered to say ‘no’ to government borrowing for budgetary support, and keep within the agreed limits fixed by SBP to find the growth. This brings immediately to mind the famous remarks of the then chairman of the US Federal Reserves, Alan Greenspan, telling the then US President, Bill Clinton, quite bluntly that “I ain’t going to lower the short-term interest rates until you get some more control over budget deficit”.