US debt crisis may lead the country to bankruptcy: Dr Zafar Moeen Nasir

A senior Pakistani economist said that US debt crisis may lead the country to bankruptcy.

According to IRNA Dr Zafar Moeen Nasir Chief of Research at Pakistan Institute of Development Economics said that such development could also affect the economies of those countries which are based on US dollars.

US right now is facing a bitter deadlock over a deal to raise the debt ceiling which has already harmed the US economy.

Political parties of US, Republicans and Democrats, so far unable to reach a compromise, and are perusing rival budget plans, pushing the United States closer to a debt default.

The International Monetary Fund pressed polarized US politicians to raise the US debt ceiling “expeditiously to avoid a severe shock to the US economy.

The IMF warned that US debt would total 99 per cent of the size of the US economy this year and 103.0 per cent in 2012.

“The deadlock between Republicans and Democrats could lead the country to bankruptcy”, said Dr Zafar Moeen Nasir. He said that the issue is seriously damaging the US economy.

The economist said that dollar is becoming weak and many countries that have strong economies are changing towards other currencies.

“The credibility of American dollar is at stake”, noted Dr Zafar Moeen Nasir.

He said that the businessmen have lost faith in American dollars and they are looking for other options. Dr Zafar Moeen Nasir said that America itself is now facing serious economic problems.

The main issue that have caused a serious setback to the US economy is Washington's interference in the affairs of other states.

Its failure in the Middle East, particularly in Iraq and Libya … the losses caused by the decade-long war in Afghanistan, its intervention in Sudan, Somalia and other countries have led to the present decline in its economy.

Dr Zafar Moeen Nasir expressing his views said that the currencies of those countries which are based on American dollar are facing serious threat.

“There’s certainly evidence that the economy has suffered because of the uncertainty,” White House spokesman Jay Carney has said.

US President Barack Obama has warned that the United States is “almost out of time” to reach a deal to increase the $14.3 trillion dateline.

Washington hit its debt ceiling on May 16 but has used spending and accounting adjustments, as well as higher-than-expected tax receipts, to continue operating normally but can only do so through August 2

We will implement apex court orders: Gilani

KARACHI - Ruling out the impression of a clash between the institutions, Prime Minister Syed Yousuf Raza Gilani Saturday declared the government would implement the Supreme Court verdicts.

Responding to queries from the mediamen here at the Textile City, he said that misunderstandings would be removed and government would act on the apex court’s orders regarding Hasnain Asghar and Sohail Ahmed as no institution wanted to derail the present political system.

To a question about law and order in Karachi, the PM said restoration of peace in the economic hub was the top priority of his government as it was in the best interest of the country and a prerequisite to enhance economic development and investment. Though maintenance of peace in Karachi was the responsibility of provincial government, federal government would however provide every support, he added.

Earlier, the prime minister drove straight to the Governor’s House and met Sindh Governor Dr Ishratul Ebad and Chief Minister Qaim Ali Shah. The governor and the chief minister briefed the prime minister on the political and security situation in Karachi and other parts of the province. They also apprised him of the progress of development work in different parts of Sindh.

The prime minister said that all the political forces must work together for peace in the country. The people, he said, were looking towards the elected representatives to help resolve their problems and this required political unity. He said parliament is the right forum to deliberate upon all significant national issues and propose solutions for redress. The prime minister appreciated the support extended by the MQM chief Altaf Hussain for the Amn Rally organised by the PPP. This gesture he said reflected the political maturity of MQM leadership.

Latter, in his speech at the Textile City, the Prime Minister Gilani said the government recognises the pivotal role the textile sector plays in Pakistan’s economy. However, the textile industry is facing a number of problems including short supply of cheap contamination-free cotton, low skilled labour, power shortages and above all inadequate infrastructure.

Infrastructure development was critical for growth and therefore Pakistan Textile City is being established as a bench-mark industrial zone providing state-of-the-art infrastructure to the value-added textile sectors. Once fully operational, it would help increase our exports significantly as more than 277 new units will be established in 1250 acres of the Textile City. Gilani said that the Textile City would directly employ over 80,000 people at full capacity and will attract around $250 million in the value added textile sector.

He invited the textile community of Pakistani businessmen and investors to come forward and avail the world class infrastructure facilities which the Textile City is offering. It is our combined duty to be part of Pakistan’s march towards becoming a hub of quality textile products.

Budget, debt worries plague troops in Afghanistan

KABUL: A half a world away from the Capitol Hill deadlock, the economy and debt crisis are weighing heavily on U.S. troops in Afghanistan.
And the top question on their minds Saturday even as bombings rocked the city around them, was one the top U.S. military officer couldn't answer.
Will we get paid?
"I actually don't know how the answer to that question," Adm. Mike Mullen, chairman of the Joint Chiefs of Staff told a group of troops, while at the same time telling them they will continue to go to work each day.
But he offered a bit more optimism than defense officials have acknowledged when those questions have come up in recent weeks.
"I have confidence that at some point in time, whatever compensation you are owed, you will be given," said Mullen, who is making his 15th trip to Afghanistan, just two months before he retires. But, he noted, "There are plenty of you living paycheck to paycheck so if paychecks were stopped it would have a devastating impact very quickly."
Questions on military spending and how the ongoing budget struggles will impact them dominated the morning meeting at the Kandahar base, and it was the first one Marines asked when he moved on to Camp Leatherneck later..
Troops pressed Mullen on how much the Pentagon is spending on contractors, when many tasks could be done by military members. They questioned whether the budget pressures will focus on pay or equipment and other acquisition. They bemoaned what it could cost to implement the new policy repealing the ban on openly gay men and women serving in the military. And they wondered if their retirement pay was safe.
For his part, Mullen said the cost of repealing the gay ban was very limited. And he said there were no immediate plans to affect retirement benefits.
Mullen was visiting troops across southern Afghanistan on Saturday, a region that has been pummeled by violence and suicide attacks in recent weeks.
But there were only a smattering of questions on the military strategy or the planned withdrawal of U.S. troops from Afghanistan, which is beginning with a 10,000 drawdown by the end of this year.
Instead, it was all about money and job.
Mullen warned the troops that as time goes on, budget restrictions will pare down the size of the military, and he told them to keep that in mind as they pursue their education and try to further their careers so they will have a better chance of re-enlisting.

CIA's Pakistan chief leaves country

WASHINGTON: The CIA's Islamabad station chief, who oversaw the intelligence team that uncovered Osama bin Laden's hideout, has left Pakistan for medical reasons, a US official said.
The CIA declined to comment on the matter.
"The chief of station is a respected, senior officer who had the full faith and confidence of folks back in Washington," the US official told AFP on condition of anonymity.
"Most people will agree the officer's role in one of the greatest intelligence victories of all time means this person was pretty darn effective, no matter what the Pakistanis may think."
American television, citing US and Pakistani officials, said the officer who headed one of the Central Intelligence Agency's most sensitive positions worldwide was not expected to return.
It was the second such departure in seven months from the post.
Despite the quick turnover at the key office, US officials told American TV that it would not hamper US intelligence efforts in Pakistan. (AFP)

Nawaz says will not allow Zardari to defy SC orders

Chief of his own faction Pakistan Muslim League-Nawaz (PML-N) Muhammad Nawaz Sharif has said Pakistan instead of progressing is moving in the backward direction. Addressing a public meeting here on Saturday, he said: “we can not tolerate further damage being done to Pakistan”, he added that his sincerity had been considered a sign of weakness. Nawaz reiterated that Pakistan should be run according to people’s mandate. The former prime minister said that President Zardari has forgotten the past. He accused the President of not implementing courts orders. He advised that it was in the interest of the government to follow the orders of the apex court. Nawaz warned that the nation would not allow the government to push the courts aside

No confrontation between judiciary and government: Justice Javed

LAHORE: Senior Supreme Court Judge, Justice Javed Iqbal says there is no confrontation between the government and judiciary, Geo News reported.
The government has not disobeyed any orders of the Supreme Court however there has been a delay in their implementation. Justice Javed said the Supreme Court and Army were not playing any combined role.
Justice Javed Iqbal was being honoured by the Punjab Bar Council and said media hype was behind the creation of a possible confrontation between the judiciary and government and it was wrong to say that the government did not obey Supreme Court orders.
The main priorities of the Supreme Court are to uphold the constitution, rule of law and eliminate corruption. He added that this was also the attention of the government.
Speaking on relations with the army, Justice Iqbal said that the Supreme Court was proud of the armed forces.

SC detailed verdict on Asghar, Ahmed matter

Supreme Court on Saturday issued its detailed verdict in writing about making Sohail Ahmed OSD and granting of investigation responsibility to former FIA Director, Hussain Asghar in Hajj corruption case, Geo News reported.
In its 36-page written verdict, the SC stated that a civil servant cannot be made OSD if the Prime Minister, who is the competent authority, is not satisfied with his performance. However, the competent authority has the power to order his transfer but cannot penalize him as was done in this case.