INTRODUCTION

Muhammad Sohaib Javed 12021 Mohammad Kumail 6268 Beenish Fatima 6262 Danyal Javed 7222 Ali Tahir 12072

G O V E R N M E N T A L

I N T F R L O A By Muhammad Sohaib Javed U N D (12021) E E N C E

India praises Pakistans efforts to normalize trade ties 2nd March, 2012 He move will certainly help strengthen our bilateral ties: S.M. Krishna.

Rationales for Government Intervention in Trade

ECONOMIC RATIONALES NONECONOMIC RATIONALES

Prevent unemployment

Maintain essential industries Protect infant industries Deal with unfriendly countries Promote industrialization Maintain or extend spheres of influence Improve position comPreserve national pared to other countries identity
7-5

Islamabad has decided in principle to phase out the negative list between the two countries by December 31, 2012, which will complete the trade normalisation process.
Indias Associated Chambers of Commerce and Industry, a trade body estimated that the move will increase cross-border trade to over $6 billion by 2014. Direct trade between India and Pakistan currently constitutes less than one per cent of their respective global trade. India exported goods worth $2.33 billion to Pakistan last year while its imports were $330 million.

http://www.dawn.com/2012/03/01/india-praises-pakistans-efforts-to-normalise-trade-ties.html http://www.nytimes.com/2011/11/03/world/asia/pakistan-more-indian-imports-to-be-allowed.html?ref=relationswithpakistan http://www.dawn.com/2012/03/02/countrys-interests-to-be-safeguarded-pm-govt-to-go-ahead-with-iran-pipeline-khar.html

NEW DELHI: India on Thursday welcomed Pakistans decision to phase out major restrictions on Indian imports by the end of this year, a move to normalise trade ties between the two neighbours.

Currently, Pakistan admits fewer than 2,000 types of Indian products. Both countries have said they want to more than double trade between them, to $6 billion a year
Consumers in Pakistan are likely to benefit more from the change, gaining access to more and cheaper Indian goods. Pakistani businesses will likely face stiffer competition, especially in auto parts, pharmaceuticals and consumer goods

Govt to go ahead with Iran pipeline: Khar Front Page | From the Newspaper 2nd March, 2012
http://www.dawn.com/2012/03/02/countrys-interests-to-be-safeguarded-pm-govt-to-go-ahead-with-iran-pipeline-khar.htm

Pakistan rejects US pressure on gas project

ISLAMABAD: Pakistan has refused to budge on its decision, despite the United States pressure on the gas pipeline deal with Iran and has said that it will go ahead with the project. Foreign Minister Hina Rabbani Khar said the project was in the interest of Pakistan.

We are a sovereign country and we will do whatever is in the interest of Pakistan, Prime Minister Yousuf Raza Gilani said during a TV show Prime Minister Online. The comments from the prime minister and the foreign minister came a day after US Secretary of State Hillary Clinton warned at a Congressional testimony that Pakistan could face sanctions if it did not give up the Iran gas pipeline project. Pakistan, which is facing intense energy crisis, believes that the multi-billion dollar gas pipeline which is scheduled to become operational in 2014 is its best bet to partially ease the situation.

I think all our friends are encouraged to understand the real energy crisis that is in Pakistan. We cant afford to be selective of where we receive our energy supply from, Ms Khar remarked.
Iranian President Mahmoud Ahmadinejad got a similar commitment when he visited Islamabad for a trilateral summit last month. During his bilateral meetings with Pakistani leaders, Mr Ahmadinejad was told that Pakistan remained committed to expeditious implementation of the pipeline project, 1,000 MW electricity transmission line and 100MW Gwadar power supply. In a further sign of growing energy ties, media reports say Iran is ready to provide about 80,000 of barrels of crude per day to Pakistan on a 3-month deferred payment.

CNG
http://www.thenews.com.pk/Todays-News-13-11021-Govt-bans-import-of-CNG-cylinders-conversion-kits Khalid Mustafa Friday, December 16, 2011

ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet has approved a ban on the import of CNG cylinders and conversion kits in the wake of the current gas shortage in the country.

The ECC which met here on Thursday with Minister for Finance and Economic Affairs Dr Abdul Hafeez Shaikh in the chair also banned installation of new CNG kits in vehicles. The existing stock and its owners shall be allowed to use their kits and cylinders, and no new licence shall be issued in this regard, the ECC decided. In the same way, CNG-fitted public transport vehicles i.e. buses/vans are exempted from this moratorium. The ECC reviewed its previous proposal of monthly natural gas load management programme (winter 2011) on the SNGPL system, and decided to withdraw the previous approval of supply of 76 MMCFD gas to IPPs because of severe shortage of gas in the coming months and to enhance the gas supply to fertiliser plants. The ECC also approved the summary energy efficiency audit of fertiliser plants and ban of POL products export to Afghanistan and Central Asian Republics (CARs), proposed by the Ministry of Petroleum and Natural

CNG
Protectionism refers to those government restrictions and incentives specifically designed to help a countys domestic firms compete with foreign competitors at home and abroad.

Governments intervene in the trade process to attain economic, social, and/or political objectives.

Rationales for Government Intervention in Trade

ECONOMIC RATIONALES NONECONOMIC RATIONALES

Prevent unemployment

Maintain essential industries Protect infant industries Deal with unfriendly countries Promote industrialization Maintain or extend spheres of influence Improve position comPreserve national pared to other countries identity
7-15

KARACHI: Lotte, a South Korean firm, is planning to expand its operations and invest half a billion dollars in various projects to be executed in Pakistan, said Ambassador Choong Joo Choi on Monday.

The envoy said his country had funded several projects in Pakistan such as the newlyinaugurated institute of garment technology and water supply and sewerage drainage projects, adding that Koran cooperation had also been extended to the national capacitybuilding institute for water quality management, training of Pakistani government officials and vocational training of youths of Malakand. He said that Ssangyoung, another Korean company, had just completed repair work of KPT berths while Posco had also made initial investment in the country. South Korea, a member of the Friends of Democratic Pakistan, offered $180 million soft loan to Pakistan. It is an offer in the form of an extremely soft loan, said Ambassador Choong Joo Choi. WIND ENERGY: In a related development, Hienergy Korea Canmore Co. Ltd. announced that it would invest $100 million in the wind energy projects in Sindh, besides 50MW projects in SITE and Nooriabad.

http://www.dawn.com/2011/10/18/s-korean-firm-plans-to-invest-500m-in-pakistan.html S. Korean firm plans to invest $500m in Pakistan From the Newspaper | National | By Shamim-ur-Rahman 18th October, 2011

Rationales for Government Intervention in Trade

ECONOMIC RATIONALES NONECONOMIC RATIONALES

Prevent unemployment

Maintain essential industries Protect infant industries Deal with unfriendly countries Promote industrialization Maintain or extend spheres of influence Improve position comPreserve national pared to other countries identity
7-19

Articles on Economics
By Muhammad Kumail

How to put an end to tax avoidance

By MoneyWeek editor-in-chief Merryn Somerset Webb, Mar 26, 2012

the concept of 'excess burden': the cost to economic growth of the distorting effects of taxation. things that creates excess burden is tax avoidance. avoiding tax takes time and effort it diverts resources from genuinely productive activities.

Take the 50% tax rate. It is said not to have raised the amount of money hoped for, thanks to massive avoidance. the time that people taxed via pay-asyou-earn (PAYE) have spent wrangling with employers to have bonuses or pay rises brought forward. Theres the huge number of new companies set up so that those with freelance or short-term contract earnings can 'smooth' their income to avoid the higher rate.

Australias reversal of fortune

Mar 26, 2012

The Australian dollar is flying high. It has gained more than 10% since last autumn and now buys 1.05 American dollars. But the signs of a reversal are mounting. key influence on sentiment towards the Australian dollar is China, which now takes almost 40% of Australias mineral exports and 23% of Australias overall exports.

Investors have every justification to be concerned about the decided downshift in Chinas growth performance, says Fxpro.com. Among the most eye-catching statistics is that crude steel production is now barely positive, down from a growth rate of 40% in late 2009. Its not just China; global trade has slowed too

Australias housing bubble, which saw prices rise six-fold in 25 years, now finally appears to be bursting. the property and credit collapse seen in the rest of the developed world in 2008-2009. Australias dollar is also a key barometer of global risk appetite

Is an attack on Iran imminent?

By Matthew Partridge Mar 27, 2012

The Iran situation is getting critical. It is clear that Tehran is determined to get a nuclear bomb no matter what the domestic costs. Barack Obama has promised that I do not have a policy of containment; I have a policy to prevent Iran from obtaining a nuclear weapon.

Saudi Arabia has indicated that it will increase oil production significantly. wants to prevent crude from becoming too expensive, and thus destroying demand in the long term. Sanctions arent going to stop the Iranian bomb It cannot be emphasised enough that although sanctions have caused major disruption to Irans economy, they arent working.

A strike is probable, but not inevitable

Israel is still more likely than not to act. It is simply too dangerous to rely on sanctions, while nuclear missiles in the hands of Irans leadership would be a disaster for both it and the wider region. Oil is not the best hedge against a war in the Middle East higher oil prices could hit the global economy derailing any recovery. This could have a very negative effect on your portfolio. However, the danger of an Israeli strike is already partly priced in.

Is Japans bear market at an end?

By Cris Sholto Heaton Mar 02, 2012

investors will tell you that great bear markets end in maximum fear. There is a final cathartic flurry of activity as the remaining optimists dump their holdings and at that point the market is primed to rebound The end comes when investors have no desire to buy equities, the market has simply stagnated and nobody has any faith that it will recover.

A rally thats come out of nowhere

Japanese stocks have been very solid performers in 2012 so far, with the Topix up almost 13%. Japanese equities have essentially staged absolutely no recovery from the lows of 2008-2009.

The Topix and the yen have had an inverse relationship since 2005 stocks have generally performed better when the yen weakens and fallen as it continued to strengthen.

to review the performance of the Japanese market since 1990 most investors know it as an endless series of false hopes and doomed rallies.

Four reasons for hope

First, theres the psychology. Weve now seen three years of stagnation in Japanese equities. Theres not much in the way of the sharp rallies and selloffs we saw there in the past two decades or have seen elsewhere lately. That certainly points to a lack of interest.

Four reasons for hope

Second, theres the macroeconomics. Japans balance of payments has deteriorated very sharply of late. From a surplus of 12trn in 2005, it flipped to deficit of 3.5trn last year. There were exceptional factors in here, such as the earthquake but even allowing for this, Japans trade performance will not be so supportive of a strong yen in the years ahead.

Four reasons for hope

Third, theres monetary policy. The Bank of Japan recently made some very tentative moves towards doing what it should be doing: forcing a weaker yen and pushing for some very mild inflation rather than tolerating deflation. It hasnt gone far enough, but it may have taken the first steps.

Four reasons for hope

Fourth, theres politics. Since its historic electoral victory in 2009, the Democratic Party of Japan has proved little better than the exhausted Liberal Democratic Party it replaced and the countrys rapid turnover of ineffectual prime ministers has continued. But voters are increasingly unhappy with this and this may well produce a new, more dynamic opposition to both the DPJ and the LDP.

Inflation is needed for a sustainable rally there are signs of changes in Japan that could be positive for the market, and yet are being ignored.

Ali Tahair

Big U.S. Firms Shift Hiring Abroad

BY DAVID WESSEL

April 19, 2011

Big U.S. Firms Shift Hiring Abroad - WSJ.com

Analyst P.O.V

Matthew Slaughter, who served as an adviser to former president George W. Bush. Mr. Slaughter, now at Dartmouth College's Tuck School of Business He consults for several big companies and trade associations, drew attention with his observation that "for every one job that U.S. multinationals created abroad...they created nearly two U.S. jobs in their [U.S.based] parents. That was true in the 1990s, It is no longer.

Organizational view of globalization

Jeffrey Immelt, GE's chief executive, said in a speech in Washington

These cuts don't reflect a relentless search for the lowest wages, or at least they don't any longer. We've globalized around markets, not cheap labor. The era of globalization around cheap labor is over, today we go to brazil, we go to china, we go to india, because that's where the customers are. In 2000, 30% of GE's business was overseas today, 60% is. In 2000, 36% of GE employees were overseas where as today, 54% are.

Organizational view of globalization Continued.

Caterpillar increasingly relies on foreign markets for its sales. Except for global layoffs in 2009, due to resin but is hiring much faster abroad. Between 2005 and 2010, its work force grew by 3,400 workers, or 7.8%, in the U.S. and 15,900, or nearly 39%, overseas. Jim Dugan, spokesman of Caterpillar construction-equipment,

"As a greater percentage of our sales have been outside the U.S., we have seen our work force outside the U.S. grow, Caterpillar still does most of its research and development in Peoria, Ill., where it is based.

Organizational view of globalization Continued.

Oracle, which makes business hardware and software, added twice as many workers overseas over the past five years as in the U.S. At the beginning of the 2000s, it had more workers at home than abroad; at the end of 2010, 63% of its employees were overseas. The company says it still does 80% of its R&D in the U.S.

Conclusion
Organization are focusing their R&D where they are based Cost efficient was the old phenomena where as globalization is the bigger picture Organizations have become more global and efficient and close to their customers like china, India etc.

Political And Legal System

By Danyial

Pak-Iran gas pipeline: Multiple sources available for funding, says Khar

Foreign Minister Hina Rabbani Khar confirmed the countrys commitment to the Iran-Pakistan gas pipeline on Wednesday; laying to rest any doubts that a Chinese banks decision to back off from funding the project would affect plans to import gas from Iran. There are multiple sources available and this is a very viable project, Khar told reporters at a joint news conference with her Swedish counterpart Carl Bildt in Islamabad

Parliamentary review of US ties The foreign minister insisted that the governments decision to rewrite terms of engagement with the US, Nato and Isaf will expand cooperation with international players instead of contracting it. We hope that the world will respect the new terms of engagement, she said, adding that Pakistan wanted to assist western forces stationed in Afghanistan with a smooth exit from the *country.

Pakistan seeks justice for Kandahar killings The foreign minister strongly condemned the killing of 16 Afghan civilians including children by a US soldier in Afghanistan. We condemn this act in the strongest possible terms and we want that the person responsible be brought to justice,

Pakistan-Sweden bilateral ties Khar said Pakistan and Sweden have decided to double the existing volume of bilateral trade from $450 million to $900 million by 2014. The Swedish foreign minister said his country endorsed Pakistans position that trade, not aid was the solution to the countrys problems

Reference
Published: March 15, 2012 Published in The Express Tribune, March 15th, 2012.

Articles on Culture
By Benish

EID UL FITR
Author: Muhammad Muzaffar

A religious festivity of Eid-ul-Fitr is celebrated by the entire Muslim Ummah at the end of the fasting month of Ramadan on the 1st of Shawwal the 10th month of Lunar year. The word Eid is derived from owd that means to come again and again, as every year Eid is celebrated on the same date of the same month.

Muslims have three Eids in a year which are Eid-ul-Fitr, Eid-ul-Azha and Eid Milad-un-Nabbi. The spirit of the former two Eids depicts the obedience of Allah Almighty but the later one, third Eid is celebrated in the commemoration of the birth and death anniversary of the last Prophet of Allah Almighty, Hazrat Muhammad(Salal Laho Alyehe Wasalm).

the manners and Sunnah regarding the Eid-ul-Fitr: To get the hair cut. To cut the nails. To use Miswak. To wear new or at least clean clothes. To apply pure itar. To offer Fajr prayers in the nearest mosque. To eat dates odd in numbers before going to Eidgah. To recite, while going to Eidgah: (Allaho-Akber, AllahoAkber. La ila-ha ill-lal-lah Allaho-Akber, Allaho-Akber Wa-lalahill hamd). To use two different paths while going to and coming from Eidgah. To distribute Fitrana to some deserving person/persons preferably To offer Sadqa as much as possible.

Today, unfortunately, Muslims have imparted a wrong colour to the Eid festival. The elite class of the country has got an opportunity to show their wealth on the religious occasion of Eid which is primarily for the poor. Being Muslims, we have forgotton the golden practices of Hazrat Muhammad (Salal Laho Alyehe Wasalm) who met a weeping child of five to six years on the way when He was going to offer Eid prayers. This is the real spirit of Eid celebrations which the majority of us has forgotton today.

Pakistani womens like Embroidery purses.

By Rehana khan(111/10)

Purses are small bags or pouches which are used by women for carrying their money; make up accessories, jewelry, keys and a lot of other necessary items. Purse is not only the need of every woman but its turns into the need of every girl, boy and men too.

Mostly the ladies use a purse when they are going out from their houses whether they are working womens or carrier oriented ladies or they are house wives. the uses of purse are now not merely for the requirement but it becomes a symbol of fashion and play a imperative role in fashion world. The gorgeous look is totally incomplete without a graceful and stylish purse. Thus this is proved that the lady of modern era is imperfect without a purse.

the purses are now an essential element of fashion the Pakistani ladies are also very passionate about the uses and selection of purses Pakistan is a cultural country and it has its own rich cultural aspects and customs embroidery of each and every area of Pakistan has their own beauty and identity. The women mostly like the embroidery clothes and purses Baluchi and Sindhi embroidery is very precious and well-liked by the Pakistani womens and embroidery purses are as well very agreed of Pakistani ladies. These purses made by local ladies in their houses and then they sell these handy crafts in local markets.

Culture And Education

Education enhances the ability of intellectual growth. It provides the enlightenment of personal uplift and the ways to understand life on higher perspective the people in developing countries are struggling to achieve the levels of basic needs such as food, housing and cloths yet they do not afford to educate themselves and their children as a reality

Ignorance is a curse and we find a majority of people in developing countries fighting against this dilemma The culture of reading and writing is beyond their reach. They value the materialism or something that can uplift their prestige like bikes, cell phones and similar things. They dont try to form educational culture and spend their time in watching television and playing snookers

families who have realized the importance of education and they are struggling against the consequences of high expenditures falling upon them to educate their children all the way this deal is a good deal to develop the future of any individual and provides him a way to settle respectably in this world

habit of reading can be adopted as daily routine work enabling the children to learn better living methodology and educational dignity importance of any human being is due to the knowledge he has acquired and the skills he has achieved in his life personality growth is possible only due to better learning and acquiring of fruitful skills along with positivistic attitude