Maverick Report
ISLAMABAD: Pointing out that the disburse of financial assistance through the NGOs involves out of proportion administrative expenses, Prime Minister Yusuf Raza Gilani on Sunday asked the US to spend its aid to Pakistan under the existing mechanism.
The Pakistan PM was talking to US Deputy Secretary of State for Resources and Management Jacob J Lew accompanied by USAID Acting Administrator Alouso L Fulgham, who called on him at the Prime Minister House here Sunday.
Prime Minister Gilani said that the administrative expenses of NGOs sometimes touch 35-40 per cent of the funds, drastically reducing the amount actually spent on the public welfare. He suggested that the US deputy secretary of state to have detailed meetings with the Pakistani minister and the secretary of finance to work out mutually agreed modalities on the procedure of financial assistance.
Gilani stressed that the Benazir Income Support Programme, Higher Education Commission, the existing base education and the basic health units in Pakistan should be considered for the US assistance for education, health and poverty alleviation sectors.
Describing the energy sector as the top priority of his government, the Pakistani prime minister called upon the US administration and public sector to help Pakistan in specific energy projects by mobilising investment for the power sector requirements.
Congratulating the Pakistan government for successful operation against militants in Swat and Malakand and the subsequent ongoing efforts for rehabilitation of the displaced persons, the US deputy secretary of state assured the host prime minister of his government’s full support in this regard. He said that in coordination with the Pakistan government, the US government would identify the projects for assistance in the reconstruction phase of the rehabilitation process in the areas affected by militancy.
The US official said that the main objective of his visit to Pakistan was to gain the firsthand knowledge about the latest economic situation and discuss with the Pakistani authorities the viable and appropriate projects in power sector and provision of infrastructure in the reconstruction opportunity zones.
The Pakistan prime minister was accompanied by Commerce Minister Makhdoom Amin Fahim, Adviser to National Reconstruction Bureau Chairman Senator Sughra Imam, Finance Secretary Salman Siddique and Foreign Secretary Salman Bashir.
US Ambassador to Pakistan Anne W Patterson was also present during the meeting.

Maverick Report
PESHAWAR: The Pakistani security forces on Sunday killed 33 militants and destroyed six vehicles and five houses in the Bara subdivision of Khyber Agency near here.
As the operation ‘Bia Daraghlam’ (Here I Come Again) continued for the sixth day, the helicopters pounded hideouts of the outlawed Lashkar-e-Islam militants late in the day, an official said. At least 33 militants were killed in the attack, he added.
Sources in the region said the houses of Dr Niaz Bacha and Latif from Shalobar tribe and commander Said Nabi, Khan Sher and Arif from Malakdinkhel tribe were destroyed in the attack. They said the FM radio channel equipment, hashish and arms and ammunition were also recovered from the house of Said Nabi during the raid.
The Frontier Corps (FC) officials, however, said they razed 15 houses besides two centres of the banned outfit in helicopter shelling in Naray Baba and Tarkhokas areas of Tirah Valley.
Officials claimed that nine people were arrested during the search operation in different areas of Bara subdivision. Independent sources, however, confirmed the arrest of three men.
Residents said an Afghan national, Naeem, was shot dead by FC personnel for alleged violation of curfew in Sipah area.
Meanwhile, the operation was also extended to some parts of Jamrud subdivision on Sunday and initially two houses were demolished and three alleged kidnappers were arrested in Sur Kamar area. The destroyed houses reportedly belonged to Bakhtak and Shaikh Siddiq, who are said to be the commanders and supporters of the Bara-based Lashkar-e-Islam. Three alleged kidnappers were arrested and two kidnapped persons were recovered during a raid on a house in the same area.
A day earlier, Lashkar-e-Islam chief Mangal Bagh asked his volunteers through his illegal FM radio channel to start attacks on the security forces. No exchange of fire was, however, reported from any part of the troubled zone on Sunday.
On the other hand, the political administration of Khyber Agency asked the elders to hand over 68 wanted people, including Mangal Bagh, to authorities if they wanted a halt to the operation in Bara subdivision. The authorities handed over 11 preconditions to the peace ‘Jirga’ or tribal council, which had signed a deal with the government following the July 2008 operation in the area.
According to the list handed over to the elders, 68 most wanted people should be surrendered to the government. Besides Mangal Bagh, they include former spokesman of the outfit Haji Misri Gul, incumbent spokesman Haji Zar Khan, Azam Khan, Gulabat Khan and Haleem Shah.
Officials said those people must be handed over to the authorities without any condition. The political officials also asked the ‘Jirga’ members to pay Rs3 million fine for violating the previous agreement besides submitting another Rs6 million as a guarantee if they wanted a fresh truce in the area.
The tribal elders were also asked that all the double cabin and Surf vehicles presently being used by Lashkar-e-Islam leaders and volunteers should be handed over to the political authorities, as use of such vehicles is common in kidnappings and suicide attacks. Besides, the elders were told that there should be a complete ban on movement and use of all non-custom paid vehicles in the area.
The Lashkar-e-Islam leaders have also been asked to release all the kidnapped people and those imprisoned in its private jails and hand over the involved people to the political administration.
The authorities said there would be complete ban on the FM radio channel in Bara subdivision and all the equipment available with the Lashkar and others should be surrendered to the government.
No flag of any colour should be hoisted on any building, house or office in the area. The Lashkar volunteers and leaders are usually hoisting black flags on their vehicles, houses and offices.
The political authorities said there should be complete ban on display and sale/purchase of arms in Bara subdivision. A similar ban should also be in place on selling of narcotics.
Officials said a three-day deadline had been given to the Bara elders to respond to the government preconditions for a halt to the operation launched on August 1.
There was no comment from the Lashkar-e-Islam leaders or its media wing on the government peace offer.

Maverick Report
PESHAWAR: The Khyber Agency chapter of Jamaat-e-Islami, a hardliner among Pakistani religio-political parties, held a protest demonstration against Bara operation in this capital city of North West Frontier Province (NWFP) on Sunday, urging the government to stop what it called killing innocent people.
Led by Zar Noor Afridi and Shah Faisal Afridi, the protesters chanted slogans against the political administration for launching the military operation in Bara subdivision and termed it an anti-people action. They were holding banners and placards inscribed with anti-operation slogans.
Addressing the protesters, the Jamaat-e-Islami leaders alleged that the government was victimising the innocent people and the operation was a cruel act to punish the tribesmen. They lashed out at the government, political administration and the United States for carrying out operation and killing civilians.
The speakers alleged that innocent people were being killed and displaced just to appease the Americans. They said the innocent people were being killed and houses of civilians demolished in the area. The government should stop the operation immediately and withdraw forces from the agency, they demanded.
The protesters later dispersed peacefully.

Internews Report
LAHORE: Corruption, crime and custom regulations and tax and infrastructure were Sunday identified by firms as the major constraints in investment in Pakistan, according to the enterprise survey conducted by the World Bank.
The bank conducted survey of mainly manufacturing and certain services for registered firms with greater than 10 workers other sectors were covered on a smaller scale, except for the banking sector.
The number of firms surveyed was 935. The firms were asked to fill in standard World Bank questionnaire in this regard
Corruption was identified by 53.90 per cent as the main impediment in investment.
More than 27 per cent firms expected to pay informal payment to Public Officials (to Get Things Done), 12.65 per cent said that they have to give gift to obtain operating license; 58.79 per cent of the firms say they expect to pay gifts while meeting the tax officials; 30 per cent of the firms stated they expect to secure government contract by giving gifts.
Crime, theft and disorder were identified by 35.25 per cent of the firms as another constraint to investment. 48.66 per cent of the firms surveyed paid for their security, Security accounted for 1.07 per cent of the total sales. Theft, arson were equivalent to 0.62 per cent of the total sales.
Tax administration was identified by 23.04 per cent as major investment constraint. Senior management had to spend 2.18 per cent of their in dealing with requirements of government regulation. Tax rate was identified as investment constraint by 40 per cent of the firms surveyed.
In addition 5.92 per cent of the firms declared customs and trade regulations as major investment constraint.
Access to finance was rated by 17.66 firms as constraint to investment. Only 8.62 per cent of the firms surveyed had line of credit or loans from the financial institutions.
Use of bank finance for investment was available to only 9.42 per cent of the firms and 4.64 per cent of the companies were using banks to finance expenses. The value of collateral needed for a loan was equivalent to 67.71 per cent of the loan amount.
Business licensing and permits regime was identified by 17.24 per cent firms as one of the major constraints in investment. It takes 16.43 days in Pakistan to obtain an operating license, 28.24 days to obtain construction related permit and 14.19 days to obtain an import license.
Number of power out rages in a typical month average 34.09 in a typical month and accounted for 9.92 per cent loss in value due to power out rages. Obtaining an electric connection in a typical month takes on average 106.30 days.
Only 9.63 per cent of the firms in Pakistan have international certification and 19.42 per cent of the companies have their annual financial statement reviewed by external auditors Only 2.70 per cent of the firms were using technology licensed by foreign companies.
The company website has been developed by 98.68 per cent of the firms surveyed.
According to the survey, 7.57 per cent of the firms under report their sales. It was also revealed that only 12.45 per cent of the registered services firms were competing with the informal or unregistered firms.
The percentage of firms with women owner ship was found to be only 6.70 per cent. Number of full time female workers in the firms surveyed was only 1.23 per cent and the number of full time non-production female workers was only 0.17 per cent.
Labour regulations were identified by 6.39 per cent of the firms.
Only 6.70 per cent of the firms offered formal training to their workers, average number of seasonal or temporary employees was 11.51 per cent in firms surveyed while the average permanent employees numbered 32.48.

Internews Report
LAHORE: Transporters on Sunday warned the government in Pakistan’s Punjab province of a wheel-jam strike if their demand for paisa 16 per kilometre increase in the fares of buses, minibuses and vans was not met till Eidul Fitr.
Pakistan Motor Transport Federation Vice-President Haji Naseer Ahmed Butt said sine the increase in petroleum products prices the transporters had been incurring a loss of paisa 16 per kilometre but the provincial government was delaying fares’ revision.
Road transport fares were fixed at paisa 70 per kilometre in Punjab in June, 2008 and had not been revised despite an increase of Rs10.30 per litre in diesel price afterwards.
Ahmad said the operational cost had increased to paisa 86 per kilometre as a result. Fares in the Frontier had, meanwhile, been raised to paisa 82 per kilometre as the provincial government had been revising the fares with revision of diesel prices, he argued.
He said besides being denied increase in fares, the Punjab transporters were also being subjected to a change in procedure of station fee collection by the City District Government, Lahore (CDGL).
Instead of an average Rs40 per bus per day, the CDGL had been charging the station fee on every trip since June 2005 on the pretext of development of the Badami Bagh General Bus Stand.
The CDGL, he said, had collected over Rs850 million by raising the fee rate up to Rs500 per bus per trip but awarded contract for only Rs45 million for construction of 22 bus bays.
He demanded the provincial government should direct the CDGL to restore the old station fee as it had collected sufficient funds for the development of the bus stand. He said the transporters had not gone on a strike in view of the holy month of Ramadan, warning the government they would suspend operations after the Eidul Fitr in case the fares were not revised.
The Punjab Transport Department has constituted two squads to check overcharging by bus and van owners. Disclosing this, a spokesman for the department said in a statement the squads comprised a motor mobile petrol inspector (Headquarters) and a transport sub-inspector of District Regional Transport Authority (DRTA).
All DRTAs in the province had also been directed to take similar steps to curb overcharging within their respective jurisdictions.