Noting a 17 percent increase in remittances, State Bank of Pakistan Wednesday said that Non-Resident Pakistanis have send home nearly $5.7 billion between July 2009 to February 2010. During the same period in previous fiscal year, Pakistanis living abroad had sent $4.9 billion.

For economies like Pakistan, funds repatriated by non-residents to family and friends back home, provide the most tangible link between migration and development. But September 11attacks, it has become increasingly difficult for Pakistanis to get work visas which had resulted in negative growth of remittances.

Analysts believe that latest increase is due to strict regulation of foreign exchange market. Majority of the informal money transfer and forex firms have changed their business practice or disappeared.

Analysts point out that since remittances are unilateral transfers they do not create liabilities. And they usually come with advice—from migrants who have seen better—on how to best use them. Thus, remittances are not simply money, but value-added money.

NRPs sent $588.78 million in February 2009 compared to $641.32 of February 2010, reports Dollars Magazine. The inflow of remittances in July-February, 2010 period from UAE, USA, Saudi Arabia, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $1,317.17 million, $1,173.37 million, $1,148.86 million, $826.93 million, $596.26 million and $171.41 million respectively as compared to $1,035.55 million, $1,156.51 million, $962.30 million, $783.39 million, $344.08 million and $150.05 million respectively in the July-February, 2008-09 period.

Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during the first eight months of the current fiscal year amounted to $550.65 million as against $486.34 million in the same period last year. The monthly average remittances for the July-February 2010 period comes out to $723.36 million as compared to $614.83 million during the same period of last fiscal year, registering an increase of 17.65 percent.

During February 2010 remittances from Saudi Arabia, UAE, USA, GCC countries (including Bahrain, Kuwait, Qatar and Oman), UK and EU countries amounted to $149.45 million, $136.88 million, $111.48 million, $89.21 million, $45.91 million and $13.48 million respectively as compared to $123.64 million, $166.62 million, $127.48 million, $93.09 million, $54.12 million and $18.31 million in February 2009. Remittances received from Norway, Switzerland, Australia, Canada, Japan and other countries during February 2010 amounted to $41.13 million compared with $58.04 million in the same month of last year.

The true size, including unrecorded formal and informal flows, is believed to be significantly larger. Remittances total at least three times official development assistance and are the largest source of external financing.

Government of Pakistan is considering an increase in the gas tariffs to compensate for the grave losses suffered by the Sui Northern Gas Pipelines (SNGPL) recent months, reports from Islamabad confirmed Saturday.

For the first time in company’s history, Sui Gas has registered substantial losses. It is estimated that in past six months the government owned and operated firm has gone Rs244 million in red.
Recently gas tariff to the consumer was increased by 18 percent but SNGPL finds market conditions unfavorable even after the price hike.

Shareholders have been informed that they will receive no dividends at the end of this fiscal year and they may suffer a loss of Rs0.44 per share of Rs10.

When asked for guidance, Chairman of SNGPL board of governors, Mian Misbahur Rehman said, “I have taken over only three days ago and at the moment I cannot comment on it.”

Another official on the condition of anonymity said: “it is virtual bankruptcy. The situation, by all means, is precarious for the company.”

Consumers are not the only victims: besides increasing gas tariffs, SNGPL employees are also being paid on time. For the last few months the company is not appropriately disbursing travel and medical allowances.

There are rumors that the provident fund of the employees may also be invested in the company’s assets.

During the period of last six months gap between the company’s receivables and its payables have grown rapidly.

SNGPL has receivables of Rs15.06 billion from the federal government and Wapda and payables are about Rs40.44 billion to the Oil and Gas Development Corporation, Pakistan Petroleum and Government Holdings.

Unlike HABCO and KAPCO where inter-corporate debt adjustment was a way out of the crisis, for SNGPL that cannot be a solution because its net payables are Rs25.38 billion making a negative of Rs9.51 billion between the company’s assets and liabilities.

SNGPL’s long-term liabilities went up from Rs53.8 billion to Rs55.67 billion and its liabilities increased from Rs52.56 billion to Rs57.58 billion.

The situation will be further compounded if the Oil and Gas Regulatory Authority decides to impose a fine for failing to meet the line losses standards.

Five policemen in Chiniot, Punjab were arrested after a footage that aired on various news channels clearly showed them publicly whipping four men accused of stealing rice.

Four men were beaten-up like animals by five policemen and the footage shot by an amateur video journalist has created an uproar, like the Rodney King incident in San Francisco, California.

A case was registered against Sub-inspector Obaidullah Kaliar and constables Muhammed Afzal, Sajjad and Sarfraz for assaulting and torturing the suspects in public. These suspects were beaten brutally beaten on 1st March, in the District Chiniot of the province of Punjab.

Four men were arrested a few days earlier on suspicion of stealing rice from a truck.

These men were brought to a public place on Monday where two of them were whipped with a leather strap, locally known as ‘chitrol’ and the other two were taken next to the road and were beaten publicly.

Sub Inspector Abdul Razzaq of Bhawana police station had arrested these suspects for allegedly stealing rice from a truck but allegations against them were not proved and they were released.

A day later these men tried to register a report against the police for torture. They were again arrested and this around whipped in the public park.

This incident was filmed by one of the eye witnesses and aired on various media channels.

Immediately after the footage was shown on private channels, police officers of Bhawana police station were suspended and arrested after a case of torture and assault was registered against them.

Later Inspector General Police Punjab Tariq Saleem Dogar directed the higher police officials of the province to adopt foolproof measures to evaluate incidents of police violence and take immediate action against the officials involved.

Mr. Dogar said, “ all senior police officers have been told to warn their subordinates to ensure that there was no incident of police violence in their respective jurisdictions. If any case of police violence was reported in future, the officer of region, district and city would be held responsible .”

Human rights activists in Pakistan have condemned the incident. Asma Jahangir, an active Human Right Worker, called it “barbaric” and demanded strong punishments for those involved.

Chief Minister Punjab Mr. Shahbaz Sharif took notice of torture incident at Bhawana police station and has ordered suspension and arrest of policemen including Sub-Inspector, and said that such behaviors will not be accepted anymore.

The Pakistan Penal Code (PPC) does not specify the word ‘torture’, but only mentions “hurt” which mainly deals with a dispute between civilians. Hence the torture by the state agents has no clause in PPC.

Therefore such brutal state agents do not fear that they will be punished for torturing someone in custody.

Police officials suspended and arrested will not be tried for assaulting the suspects as Pakistan has no such law against them, and arresting them is only an act to calm the popular sentiments.

The Deputy Superintendent of Police (DSP), who was suspended in July of 2009 for torturing Shfiq Dogar, was back in office within two months.

This incident is not new as police torture is a common practice and Pakistani police have a long standing reputation of brutality and violence against those they are paid to protect.

In order to avoid further energy crisis, Pakistan government has assured Pakistan State Oil, PSO that it will shortly pay off the debts of the two leading power producers.

When PSO stopped the fuel supply to HUBCO and KAPCO after its warning, the shortfall of electricity in the country worsened and forced the government to resolve the non-payment issue. After a series of consultations, between Raja Pervez Ashraf, Minister for Water and Power, Syed Naveed Qamar, Petroleum Minister and Finance Secretary Salman Siddique that HUBCO and KAPCO need a bridge loan to pay off utilities. The two power companies were almost producing 2000MW on a regular basis.

These letter of credits include Rs38.7 billion from Pakistan Electric Power Company (Pepco), Rs36.6 billion from Hubco and Rs17.6 billion from Kapco.

Fuel supplies to these companies were resumed after the payment of RS. 1billion by each.

PSO sources have said, “Hubco and Kapco have to bear the burden of Rs3.8 billion and Rs2.1 billion as financial charges for delayed payments against oil supplies. Whereas Pepco also owes over Rs38 billion for oil but its supplies could not be disrupted ‘because of national interest’.”

Tahir Basharat Cheema, Pepco managing-director talking to the journalists at today said, “the chief adjuster has been asked by the government to deduct Sindh government’s Rs22 billion and adjust it against Pepco’s receivables. Punjab and AJK governments also owe over Rs3 billion each to the Pepco. The Sindh government’s demand for independent arbitration was not justified because its power bills were verified at four different stages by the relevant officials of the provincial government. The issue stood settled and the federal adjuster would accordingly make accounting from adjustments.”

PSO had reportedly complained the federal government as these power companies despite of holding back more than Rs.50 billion to them, are engaged in handing out dividends to the shareholders. In case of the intervention of Securities Exchange Commission of Pakistan both HABCO and PEPCO can be penalized for the payments of dividends to shareholders while being default in contractual payments.

Rana Asad Amin, has been appointed as an additional secretary of the finance ministry, ‘to make book adjustments in the accounts of provincial governments and power companies.’ He will adjust further payments to PSO by deducting provincial electricity bills from the provincial bills and adjusting them towards HABCO and PEPCO.

In order avoid financial obligations internationally inter corporate circular debt will be scaled down in a meeting held on Thursday.

Pakistan rupee gained esteem against US dollar but lost ground to the Euro Wednesday. Forex traders in Karachi Thursday plan to hold a short position on the US dollars with expectations that it will decline further.

Buy rate for dollars in the interbank market today were Rs. 85.00 and sell rates were Rs.85.05. In both directions Pakistan rupee was standing strong.

During the Asian trade dollar fell to its lowest in more than two months against yen as investors dumped long positions against other currencies that had built up to levels not seen in more than a year.

Investors have been picking up dollars in recent months as Greece’s credit and fiscal woes hit the euro and worries over a potential hung parliament and speculation that Britain’s asset-buying scheme could be revived knocked the pound lower.

The rupee was higher by 20 paisa against the US currency for buying and selling at 85.20 and 85.40 in open market. The dollar touched a two month low against the yen in Asia on Wednesday due to selling by Japanese exporters, falling long-term U.S. interest rates, and expectations for weak U.S. jobs data.

During Asian trading hours, the dollar fell to Y88.47 on EBS, the lowest since Y88.32 on Dec. 14. That compares with Y88.75 in New York late Tuesday.

If coming U.S. data are weaker than expected, adding to speculation that the Federal Reserve may not start raising its policy rate as soon as had been expected, U.S. yields could fall further, causing the dollar to decline more against the yen, Inoue said. He tips the dollar to trade in a range of Y83.00 to Y91.00 in the coming days.

However, Pakistan rupee lost 50 paisas againts the euro: buying and selling at 114.85 and Rs 115.35. The euro had hit a two-week high Wednesday against the dollar in a sign that Greece’s stepped-up efforts to cut its gaping budget deficit has helped calm investors fears over a possible debt crisis.

But the reprieve for the common currency may not last: There is no assurance the Greek measures will be fully implemented nor was there any word from Germany or France, the euro zone heavyweights, whether they would offer more than just verbal support to the debt-laden Greeks.

Investors are now waiting to see whether “an actual bailout will happen,” said Jessica Hoversen, fixed-income and foreign-exchange analyst at MF Global in Chicago.

Muhammad Tahir-ul-Qadri, a Pakistan born Islamic scholar with an intriguingly wide range of opinion Tuesday issued an Islamic edict condemning terrorism and suicide bombings and challenged “al—Qaeda’s violent ideology.”

Founder of Minhaj-ul-Quran movement who has a large following in Britain made his formal proclamation of a fatwa, or religious edict, at a news conference in London.

Muhammad Tahir-ul-Qadri, who is also a lawyer, in past has successfully argued for Blasphemy law in Pakistan- a law commonly used to punish minorities and dissenters. The controversial Blasphemy Law was passed after Mr. Qadri after presented his arguments to a Pakistani court, “over a period of three days, culminating in an Act of Parliament.”

Now presented chiefly as a ‘Sufi’, Mr. Qadri was very close to a Pakistani dictator, General Zia ul Haq. In a landmark enactment of Parliament concerning ad-diya (blood-money) of a murdered woman Mr. Qadri had presented his arguments in the President House of Pakistan during a special legislative session chaired by General Zia ul Haq.

But Mr. Qadri now seems like ‘a new and improved’ scholar with 600 page fatwa describing the al-Qaeda movement as an “old evil with a new name.”

His fatwa said that “suicide bombings and attacks against civilian targets are not only condemned by Islam, but render the perpetrators totally out of the fold of Islam, in other words, to be unbelievers.”

Mr. Qadri hopes his arguments would attract the attention of politicians and security services in western nations.

The document is not the first to condemn terrorism and suicide bombings. Following the terrorist attacks in London during July 2005 many scholars came together to denounce the bombers and urged communities to root out extremists.

Muhammad Tahir-ul-Qadri founded Minhaj-ul-Qur’an International (MQI), an organization with branches and centres in more than 90 countries around the globe which has become a leading voice of Islam for inter-faith dialogue. His followers believe that he reflects the renaissance of Islam.

It remains to be seen if Mr. Qadri’s fatwa (an edict issued by a learned Muslim scholar) will have any impact.

The term fatwa became famous in the western world in 1989 after the author Salman Rushdie was forced into hiding following a “death fatwa” issued by Ayatollah Khomeni, on the grounds that his book, the Satanic Verses had “insulted” Islam.