Tag Archives: losses

Canadian dollar falls after highest job losses since recession 4 years ago

Canadian Dollar Tumbles After Unexpected March Employment Loss

By Ari Altstedter

The Canadian dollar fell in its biggest decline in nine months against its U.S. peer after the nation unexpectedly lost jobs last month by the most since the last recession four years ago.

The currency declined against 13 of its 16 major peers as Canada had 54,500 fewer jobs in March, compared with the 6,500 gain predicted in the median estimate of a Bloomberg survey of 24 economists. The nation’s jobless rate increased to 7.2 percent from 7 percent. The U.S. added 88,000 jobs in March, versus estimates of a 190,000 gain. The Bank of Canada’s March 6 policy statement called for the economy to “pick up through 2013” on its way to 2 percent annual growth.

“Huge miss on both numbers, but particularly the Canadian number after many months of surprisingly strong employment data, we’ve finally seen some give back, so pretty swift reaction for the Canadian dollar,” said Blake Jespersen, managing director of foreign exchange at Bank of Montreal, by phone from Toronto. “There’s a lot more room for this to run, I think this is just the beginning of what could be a series of weaker employment numbers in Canada.”

The loonie, as the Canadian dollar is known for the image of the C$1 coin, fell 0.5 percent to C$1.0176 at 5 p.m. in Toronto. Earlier, it fell 1.1 percent to C$1.0236 per U.S. dollar, the largest drop since June 28. One loonie buys 98.27 U.S. cents.

Bonds Gain

Canada’s benchmark 10-year government bonds rose, with yields falling four basis points or 0.04 percentage point to 1.75 percent, touching the lowest level since Dec. 11. The 1.5 percent security maturing in June 2023 rose 36 cents to C$97.68.

Crude oil, the country’s biggest export, fell 0.3 percent to $93.02 per barrel in New York, after touching its lowest point since March 7. The Standard & Poor’s 500 Index of U.S. stocks fell 0.4 percent.

Canada’s jobs figures brings the labor market more in line with other parts of the economy, where output growth slowed to a 0.6 percent annualized pace in the fourth quarter and inflation has lagged the central bank’s 2 percent target since May. Last month’s figures mean Canada posted a net loss of 25,700 jobs in the first three months of the year.

’Ugly Across’

“It was ugly across the board, there wasn’t one redeeming feature for the Canadian employment report,” said Mark Frey, chief market strategist at Cambridge Mercantile Group, a corporate currency broker, by phone from Victoria British Columbia. “When you look at the overall employment figures for Q1 in Canada, you’re seeing a pretty bleak outlook that has turned almost on a dime from the last five months of 2012.”

A separate report showed Canada recorded its 11th straight merchandise trade deficit in February, the longest streak in at least 25 years, with the shortfall unexpectedly widening as exports of metals declined.

The deficit of C$1.02 billion ($1 billion) followed a January figure that was revised to C$746 million from C$237 million, Statistics Canada said today in Ottawa. Economists surveyed by Bloomberg forecast the string would end with a C$100 million surplus, based on the median of 21 forecasts.

“Obviously disappointment on both sides of the border,” said David Tulk, chief macro strategist at Toronto-Dominion Bank (TD)’s TD Securities unit by phone from Toronto. “The labor market is sort of catching up to the wider economic backdrop that we’ve always argued is still quite subdued, so this helps a little bit.” ….

Read more » Bloomberg
http://www.bloomberg.com/news/2013-04-05/canadian-dollar-extends-loss-after-unexpected-march-jobs-decline.html

Fai pleads guilty to working for ISI

By Anwar Iqbal

WASHINGTON: A US-based Kashmiri leader Syed Ghulam Nabi Fai pleaded guilty on Wednesday to federal charges of lobbying for Kashmir without registration and spying for the ISI (Inter-Services Intelligence).

Mr Fai also acknowledged receiving money from the Pakistani spy agency through clandestine routes and causing revenue losses.

Pleading before the US District Court in Alexandria, Virginia, Mr Fai conceded that he received at least $3.5 million from the ISI between 1990 and 2011. This resulted in a revenue loss of between $200,000 and $400,000 to the US government. …

Read more » DAWN.COM

If USA attacks Pakistan…

– by Harris Bin Munawar

When America’s top military official hinted at direct US action in the tribal region where it believes Pakistan shelters and works with the anti-American Haqqani Network, among the first to respond was the network’s top leader. “The US would suffer more losses in the North Waziristan Agency than they did in Afghanistan,” Sirajuddin Haqqani said, daring the US to send its troops into the tribal region that the Pakistani army itself has refused to enter.

This means: 1. His network is entrenched in North Waziristan 2. It is their responsibility to defend the agency 3. They would prefer to do so over several years in Afghanistan-style guerrilla warfare

Pakistan Army says it is not ready to take on the influential pro-Taliban leader, effectively giving up a claim on the territory he controls.

Prime Minister Yousaf Raza Gilani says a raid on the Haqqani Network would be an attack on Pakistan’s sovereignty, as if the defence of North Waziristan has been outsourced to the Haqqanis.

Prone to the drone:

If Pakistan Army indeed lacks capacity, or will, to reclaim North Waziristan where Afghan insurgents are believed to hide, regroup and plan new attacks, that means it has no effective control over the region.

Pakistan says that: 1. Its army does not have the means or resources to control that territory 2. The government will lose political credibility if it orders an operation in the North Waziristan 3. Taliban reaction to such an operation will destabilize the entire country

If that is correct, Pakistan has lost de facto control over the area and it cannot claim sovereignty. That gives the US a justification to go after its enemies itself. And that is what the US does with missile attacks by unmanned aircraft.

A government that has been holding tribes collectively responsible for violations committed by their individual members has no moral authority to suddenly invoke modern notions of justice or mourn the death of innocent civilians who shelter the Taliban.

So little leverage:

If Pakistan is collaborating with, or supporting, or merely avoiding confrontation with a group it has long-standing ties with, a group it believes or hopes will have a significant role in the post-US Afghanistan, there is no reason it will stop doing that for an ally that is about to leave the battlefield.

Washington wants to put its foot down. It wants Pakistan to stop supporting its enemies. But “the problem is”, security analyst Caroline told Reuters, “we have so little leverage”. Because:

1. America cannot engage in a long-term battle inside Pakistan with its economy worsening, troops thinning, and a complete withdrawal from the region already announced

2. It has no identifiable target in Pakistan. The Haqqani Network does not have too much of a stationary central command that it could attack

3. Now that they are expecting an attack, members of the group will disperse

4. If the IsI is supporting the Haqqani Network, killing one or two of its leaders will not significantly hurt the group’s capability to attack US interests

What can America do?

1. The US can make a May 2 style incursion into Pakistan and go after the top leader of the Haqqani Network. After his father Jalaluddin Haqqani’s retirement, Sirajuddin the most influential insurgent figure in that region. But the impact of his killing might not be more than that of the killing of Osama bin Laden

2. It can make a number of simultaneous raids under air cover on several key targets in North Waziristan – people or buildings that might include Pakistan Army’s check-posts. Like the May 2 raid, the legitimacy of the operation will depend on how successful it is

3. The US can carry out a series of individual strikes followed by periods of calm. That way it will continue to meet its goals and embarrass the Pakistan Army, while making sure the tipping point is never reached

4. Washington can impose an economic embargo on Pakistan, stop all aid, freeze its accounts and declare the ISI a terrorist organisation. It can also use its influence on international agencies to end all aid and loan programs to Pakistan. That will be deathblow to Pakistan’s ailing economy

5. It can increase drone strikes in the Tribal Areas and take out targets with virtual impunity

Neither of these steps is new or extraordinary, and neither of these steps will dramatically reverse the US predicament in Afghanistan.

What can Pakistan do?

Any US move against Pakistan does not have to be new or extraordinary to hurt Pakistan. Pakistan Army has influenced public opinion in the past to create an anti-America feeling that it can then cite to seek concessions from the US. In doing that, it has entrenched itself into a position where it will have no choice but to respond to a US strike.

As an immediate response, Pakistan can:

1. Retaliate and fire at intruding US aircraft or men. Claims have been made that Pakistan can shoot down predator drones, but it is less likely Pakistan can detect and attack US fighter aircraft. The Osama bin Laden raid has also raised doubts about Pakistan’s ability to detect and attack intruding helicopters

2. Carry out a delayed but full-fledged counter-attack on US bases in Afghanistan that it believes were used in attacks on its soil. That may lead to a US counter-counter-attack and an all out war. How long can Pakistan sustain that war is an important question

3. Increase attacks on US interests through any Taliban factions or other insurgent groups that are ready to support Pakistan. If Sirajuddin Haqqani has made an offer to defend North Waziristan, the Pakistani military might take them up on that. Sooner or later, the US will withdraw anyway. But is there a guarantee these groups will not go rogue like many in the past? Can a modern Pakistani republic reconcile with their version of the Muslim faith?

4. Step back and start an operation in North Waziristan. But with the US leaving, will Pakistan want to alienate its supporters in Afghanistan? One way to deal with the problem is to continue the policy Pakistan is accused of. The army can hide key figures of the network and then conduct a fake operation for several months until the US is pressured by its politics or economics to leave the region. But then, how will Pakistan deal with the network and reclaim its territory after the US leaves?

5. Not retaliate with a military move, and just end diplomatic ties with the US, losing a key source of aid. Closing down NATO supply routes will hurt the US immediately. But if the supplies are stopped for too long, the US will find new, although more expensive, ways to get supplies to Kabul. If that happens, Pakistan would have burned up a very important advantage.

6. Go to China for help. China’s key security officials came to Pakistan last week. Pakistani analysts saw that as a sign of support. But the Chinese delegation is on a scheduled visit to discuss terrorists hiding in Pakistan’s Tribal Areas that fight against China in its Xinjiang province. It is not likely China support Pakistan on some of the possible plans we have discussed. Nor is it in China’s interest to jump into a US-Pakistan conflict.

Can Pakistan sustain a war?

Opinion leaders in Pakistan believe the resource-rich republic can sustain confrontation with a defeated US empire. Such self-deception has cost Pakistan dearly in the past. Let us look at the key resources needed in a war:

Troops: Pakistan does not have enough troops to guard both the Indian and Afghan border. We have grouped India with the US as a matter of policy, and will have to pay for that by being sandwiched between two hostile neighbours

Weapons: The weapons and equipment used by Pakistan Army come from the US and its allies. That means we will soon run out of ammunition and cannot repair or service the equipment

Money: Pakistan’s economy cannot pay for a war, especially after an embargo by the US. Hit by floods two years in a row, suffering from an energy crisis, cash-strapped because of huge government spending, and dependent on foreign aid, how long will its money last?

Communications network: Pakistan’s communication system can not bear the burden of war with a dysfunctional railways. With engine shortages and trains stopped half way for up to 20 hours because there is no diesel, how will Pakistan fight a war?

Intelligence: If Pakistan’s intelligence agencies are to be believed, they had no clue about the presence of Osama bin Laden in Pakistan in Pakistan, a planned US raid to kill him, or even about the activities of Raymond Davis and CIA contractors like him. On the contrary, it is accused of targeting journalists who there is a general consensus are not American agents. Pakistan’s intelligence network does not look like it is ready to fight a war

Diplomatic support: Every single country in this region was hurt when Pakistan had influence in Afghanistan the last time. Insurgents from China and Central Asia were sheltered and trained in Afghanistan, Iran was unhappy because tens of thousands of Shias were massacred, and India was among the victims of guerrilla warriors too. The International Tribunal for Former Yugoslavia is asking for former ISI chief Gen Javed Nasir. Who in the region will support Pakistan in its battle to control Afghanistan?

Domestic politics: Hundreds of people have been killed in ethnic and political battles in the crime-infested economic hub Karachi, Punjab is suffering from a new epidemic, Sindh is submerged in floods, Balochistan is fighting an insurgency and Khyber Pakhtunkhwa is dysfunctional because of terrorism. Pakistan’s domestic situation is less than ideal for a war.

Continue reading If USA attacks Pakistan…

Military strategy and the flight of capital – by Dr Manzur Ejaz

The Malaysian Consul General, General Khalid Abdul Razzaq, told the press that in the last few years, about 700 Pakistanis had transferred Rs one trillion and 80 billion to his country in a specific programme. If one includes the most popular places for Pakistani capital in the Gulf States, Europe and the US, the transferred amount would be in the hundreds of billions of dollars. If capital is flying out so ferociously, the Pakistani economy has a very dim future. The more depressing aspect is that the policies that created such conditions are not changing in the foreseeable future.

First of all, it is mindboggling how a country wracked by all kinds of law and order problems and power shortages can still generate such a mammoth surplus that is being transferred abroad. This reflects the vibrancy and tenacity of the Pakistani population that it can survive against all odds the way it has been doing for centuries. Probably, this is one of the reasons that our rulers, specifically the military, are continuing the perilous policies that they adopted three decades ago.

Last month, Pakistan’s economic division estimated that the Pakistani economy has suffered losses of about $ 68 billion due to the war on terror. However, the figure was based on certain unproven assumptions and less than solid stipulations. It seemed that the figure was touted in the international press to convince foreign governments about the cost Pakistan is bearing for the war on terrorism and tell them that their aid is too little when compared to the losses. One could have questioned Pakistan’s projected loss figure on various grounds but the capital transfer to Malaysia cannot be questioned because it is coming from the horse’s mouth.

Every economist knows such a huge surplus that is being transferred abroad is gained through extreme exploitation and skimming of the masses. The surplus, whatever way it is gained, is called ‘the savings of an economy’. And, if the savings are not invested back into the economy, the country can never grow — on the contrary it can only degenerate. Pakistan’s rate of inflation, rising poverty and unemployment, which may be as high as 70 percent if one includes the redundant rural workforce, is a manifestation of how the export of Pakistani savings abroad has jeopardised the revival of the economy.

The migration of Pakistani savings to other countries shows that its top wealth holders — whatever their percentage — do not see a safe future in Pakistan. Insecurity is the fundamental reason for such a prevalent view among prosperous Pakistanis. The rise of religious extremism and acceleration of jihadism through the Taliban, al Qaeda and other private militias is the root cause of insecurity in Pakistan. Therefore, the state institutions that have given rise to such forces are directly responsible for the disaster Pakistan is facing.

The flight of capital from Pakistan started during the 1970s and 1980s, long before 9/11 and the US invasion of Afghanistan. Rising sectarianism in the country and ethnic violence in Karachi, engineered by secret agencies with no US input, started scaring potential domestic and foreign investors. It is interesting that this violence-ridden environment opened another chapter of economic plundering in Pakistan by all kinds of exploiters. The attitude had been to squeeze as much as possible in the shortest period. Somehow, the deepening of anarchy provided more opportunity to the exploiting classes and we witnessed unprecedented accumulation of wealth and its transfer abroad in this period. Who is responsible for creating such conditions?

The Pakistan military’s doctrine of seeking strategic depth in Afghanistan with the help of the Taliban and al Qaeda added to the anarchy, insecurity and, strangely enough, economic exploitation. Military spending kept on rising at the expense of the impoverishment of the masses. Therefore, the policy of seeking strategic depth in Afghanistan has caused misery for common Pakistanis from many angles.

Despite the international pressure and domestic rejection, Pakistan’s military is continuing its failed policy. Besides the US, every international power, including China, has asked Pakistan to clean up its jihadi mess and change its direction from India obsession-cum-seeking-strategic depth in Afghanistan to being friendlier towards its neighbours. Domestically, after Mian Nawaz Sharif’s declaration that we should end hostilities towards India and that the military should get out of civilian matters, other than a few religious parties no mainstream political party shares the military’s strategic vision. The PPP and ANP may be toeing the military’s line for opportunistic reasons for the time being but both parties are far from India-haters.

Therefore, it is the military strategy that is causing insecurity in the country and forcing Pakistani capital to flee. The quantity of outflow of capital is so huge that a few billion from the US, any other country or international agencies (the World Bank and IMF) cannot compensate the losses. Therefore, the first sign of stability in Pakistan would be seen when Pakistani capital outflows stop and domestic savings start getting reinvested in the country.

On the contrary, if the military keeps walking on the suicidal path, the economy will be squeezed and, if India grows steadily, Pakistan will become irrelevant in the region. The outcome of the ongoing military strategy of Pakistan will result in just the opposite of what is desired.

Courtesy: WICHAAR.COM

Home remains a distant dream for many flood-displaced Pakistanis

KAMBER SHADADKOT DISTRICT, Pakistan, November 18 (UNHCR) – When floods swept through their village in southern Pakistan’s Sindh province earlier this year, Mumtaz Ali and his pregnant wife lost their seven-year-old son. Weeks later, a weakened Zulekha gave birth, but the baby died soon afterwards.

On top of these tragic losses, the floods have destroyed the tenant farmer’s crops, costing him 150,000 Pakistani rupees (US$1,800). “My landlord will ask for money, but the rice crop was destroyed,” he said: “I will bear the brunt.”

And the family’s ordeal shows no sign of easing in the near future because winter is approaching and their village in Sindh’s Kamber Shadadkot district remains underwater. …

Read more : UNHCR

Punjab Govt. falsfully increased its losses by 331% in new report

Punjab’s losses increased 331pc in new FFC report

By Kalbe Ali

ISLAMABAD, Sept 5: A report of the Federal Flood Commission released on Sept 1 shows a surprising increase of 331 per cent in the number of flood-affected people in Punjab — rising to 8.20 million from 1.90 million mentioned in a report released in August.

Despite the big increase in the number of affected people, the number of affected villages and the acreage of affected area remain the same, 3,132 villages and 2.63 million acres.

The number of damaged houses is also the same in the August and September reports. Even the number of the injured and the dead is the same — 350 injured and 103 dead.

An official of the Ministry of Water and Power said the figures were compiled by the FFC after they had been released by the provinces.

A secondary survey undertaken in Punjab by the Board of Revenue is being directly monitored by Chief Minister Shahbaz Sharif.

According to sources in the BOR, reports suggest that the number of villages hit by the flood in Punjab is 2,100 compared to the initial estimate of 3,132.

The FFC’s estimates have been rejected by Sindh Minister for Culture Sassui Palejo, who is a member of flood monitoring committee formed by the Sindh chief minister.

She said concerns over FFC’s figures relating to Punjab had been highlighted at a meeting with Prime Minister Gilani and President Zaradari in Karachi on Sunday.

“We have rejected these estimates,” she said while talking to Dawn. “The situation is still very serious in Sindh as the receding water is posing threat to a number of areas.”

She said the number of displaced people in Thatta was increasing with each passing hour. …

Read more >> DAWN