Sri Lanka: Heavy Fighting Kills 49 Rebels

COLOMBO: Government forces pounded rebel defenses with airstrikes and ground assaults as heavy fighting across northern Sri Lanka killed 49 Tamil Tiger fighters and seven soldiers, the military said Wednesday.

The new fighting came as soldiers closed in on the rebels' administrative capital of Kilinochchi in a campaign aimed at routing the guerrillas and ending a 25-year-old war that has killed more than 70,000 people.

Out of the newly reported battles, the worst took place Tuesday in Kilinochchi where 39 rebels and six soldiers died, military spokesman Brig. Udaya Nanayakkara said.

The army has said its forces are about 1 mile from the outskirts of Kilinochchi.

Scattered battles in Vavuniya, Mannar and Mullaitivu killed 10 rebels and a soldier Tuesday, Nanayakkara said.

On Wednesday, air force jets bombed a group of rebels who were building an earthen embankment as a defense against advancing government forces in Mullaitivu, said air force spokesman Wing Commander Janaka Nanayakkara.

He said the attacks were successful, but details of damage and casualties were not immediately available.

With nearly all communications to the north severed, a rebel spokesman could not be contacted for comment.

Independent verification of the military's claims is nearly impossible because most journalists are banned from the war zone. Both sides routinely exaggerate enemy losses and underreport their own.





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US, Iraq Agree Pact Giving U.S. Troops Until 2011

BAGHDAD: Washington and Baghdad have reached a final agreement after months of talks on a pact that would require U.S. forces to withdraw from Iraq by 2011, U.S. and Iraqi officials said on Wednesday.

The bilateral pact replaces a U.N. Security Council resolution enacted after the U.S. invasion of Iraq in 2003 and will give Iraq's elected government authority over the U.S. troop presence for the first time.

Iraq said it had secured the right to prosecute U.S. soldiers for serious crimes under certain circumstances, an issue both sides had long said was holding up the pact.

The agreement was submitted to Iraqi political leaders for approval, a first step toward ratifying it in the Iraqi parliament, Iraqi government spokesman Ali al-Dabbagh said.

In public, U.S. officials were subdued. State Department spokesman Sean McCormack said: "Nothing is done until everything is done. Everything isn't done. The Iraqis are still talking among themselves. We are still talking to the Iraqis."

But a senior U.S. official in Washington, who asked not to be named, confirmed that the final draft had been agreed by both sides and would require U.S. troops to leave by the end of 2011,unless Iraq asks them to stay longer.

The administration of U.S. President George W. Bush has long resisted committing to timetables for withdrawing from Iraq.

Dabbagh said the agreement envisions U.S. forces withdrawing from Iraqi towns and villages by the middle of next year, and withdrawing completely from the country within three years. For them to stay longer, a new pact would need to be agreed.

"The withdrawal is to be achieved in three years. In 2011,the government at that time will determine whether it needs anew pact or not, and what type of pact will depend on the challenges it faces," he told media. Either side can withdraw from the pact with a year's notice.




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Pakistan, China ink 11 Agreements

BEIJING :Pakistan and China on Wednesday signed eleven agreements, MoUs and protocols to enhance bilateral co-operation on sound footing in diverse sectors including infrastructure, energy, telecommunication, agriculture, industry, minerals, trade, disaster relief and space technology.

The signing ceremony held, at the Great Hall of the People here, was witnessed by President Asif Ali Zardari and his Chinese counterpart Hu Jintao after an hour long one-on-one interaction between the two leaders and two-hours long delegation level talks.

The two presidents will issue a joint statement (Thursday) reflecting their resolve and commitment to carry the bilateral relations and co-operation to new heights. President Hu Jintao hosted a banquet in honour of the President and his delegation at the Great Hall of the People after the delegations level parleys and agreements-signing ceremony.

Earlier both sides agreed to strengthen strategic partnership in all dimensions, reinvigorate the multi-faceted bilateral relations, intensify economic co-operation and foster people to people contacts in the coming years. The two leaders and their delegations had wide-ranging discussions in warm and friendly atmosphere characteristic of long-standing ties between the two countries, Pakistan's Ambassador in China Masood Khan told the media persons after the signing ceremony.

The talks emphasised upon retrieving the economic co-operation on strong footing in multi dimensions in line with the mutuality of interests and convergence of views in this regard. The importance of President's engagements on Wednesday is also marked by his threadbare interactions with the heads and chief executives of major Chinese companies operating in different sectors including banking, steel, mineral, cement, trade and other important segments of the economy.

The President' visit to China has a special significance not only as President Zardari's first official visit abroad, but also as the first interaction between Pakistan's newly elected democratic leadership and China's fourth Generation leadership that has overseen China's dramatic economic development and progress.

Meanwhile, heads and Chief Executives of major financial, industrial and investment institutions of China Wednesday called on President Asif Ali Zardari here at the State Guest House and showed keen interest for further investment in diverse fields in Pakistan.

Those who called on the President representing important Chinese institutions included China International Capital Corporation (CICC), Export and Import Bank of China (Exim Bank), Sinoma Group (Tianjin Cement and CMBC), MCC (Steel Construction Company), All China Federation of Industry and Commerce (ACFIC) and Industrial Commercial Bank of China (ICBC).

During the meetings, Foreign Minister Makhdoom Shah Mehmood Qureshi, Defence Minister Chaudhry Ahmed Mukhtar, Advisor to Prime Minister on Interior Rehman Malik, Minister for Environment Hameedullah Jan Afridi, foreign Secretary Salman Bashir, Pakistan Ambassador in China Masood Khan and other senior officials were present on the occasion.

During the interaction with the President, the heads of Chinese institutions discussed the present level of Pak-China co-operation in different sectors, which is reflective of deep-rooted bilateral relations between the two countries.

They evinced keen interest and willingness in enhancing the existing level of co-operation in important sectors of the economy including infrastructure, banking and financial sector, agriculture, cement, steel and industry.

Talking to the Pakistani media the Chairman CICC, Levin Zhu described his interaction with the President very fruitful. He said Pak-China ties are of immense importance for the mutual advantages in different economic fields. As a financial institution, he said "we can help promote co-operation in the financial sector of Pakistan. He expressed confidence that existing co-operation will not only continue but will also grow in future.

CHINESE INVESTORS OFFERED PREFERENTIAL TREATMENT: President Asif Ali Zardari offered special preferential treatment to the Chinese investors in Pakistan, urging them to invest in Pakistan and take advantage of the country's geo-strategic location.

"With a well-placed geographical location, Pakistan has to offer you the investor-friendly environment, laws and legislation, human capital and other resources", the President told a luncheon meeting with over 200 top Chinese corporate executives here at the State Guest House.

President Zardari said his first state visit to China was reflective of the deep-rooted, strong and historic 40 years ties with the two countries, which were pioneered by Shaheed Zulfiqar Ali Bhutto and carried forward by Mohtarma Benazir Bhutto Shaheed.

Taking pride of the fact that it was the PPP and Shaheed Zulfiqar Ali Bhutto who established relations with China ", the President said Pakistan needed further Chinese investment in various fields for the mutual benefit of the two friendly countries.

President Zardari said Pakistan shares the pride and considers China 's success in various fields as its own, adding, China by holding successful Olympics told the world how strong it was.

He stressed that Pakistan provides ample opportunities of investment in diverse fields including trade, industry, financial services, banking, energy, construction, real estate, tourism, etc and the Chinese companies can are welcomed to invest in any field to help develop the country's untapped potential.

President Zardari said with half of the world population living in China and Saarc countries, the increased Sino-Pak co-operation in all spheres of life and economy can help bring development and prosperity in the region. "With other countries interested to tap the trade potential of Pakistan, we offer the Chinese companies and entrepreneurs access to warm waters and beyond", he added.

The President said Pakistan located at the confluence of South Asia, Central Asia and the Middle East and a vast coastline provides a trade and energy corridor to many regional countries and China can take the lead in this respect for the mutual benefit.

Zardari said Pakistan having a lot of investment potential in various fields the development of Pakistan and China can go together. "Let us work together for mutual benefit and development of region", he added. The President mentioned hydro power, coal energy, tourism etc as the particular areas of co-operation between Pakistan and China and called upon the Chinese companies and investors to exploit the potential of these fields.

He said with other countries of the world and region taking keen interest in these areas, Pakistan will prefer Chinese entrepreneurs to come and invest in the country. The President assured all facilities to Chinese investors and said the government will establish a special cell for the creation of Pak-China industrial and economic zones across the country including the coastal areas.

Pakistan's Ambassador to China Masood Khan and Vice Chairman Chinese People's Political Consultative Conference (CPPCC), Huang Meng Fu in their introductory remarks highlighted the strong, deep-rooted, strategic and historic bonds that exist between Pakistan and China.

They also highlighted the ever-growing co-operation between the two friendly countries in diverse fields including trade and economy and stressed for further strengthening these ties for the mutual benefit of Pakistan and China. The members of President's entourage including the Ministers for Foreign Affairs, Defence, Environment, Advisors to PM on Finance and Interior, PPP's Secretary General Jahangir Badr and senior officials were present on the occasion.

Earlier, President Zardari had a pre-lunch meeting with Vice Chairman Chinese People's Political Consultative Conference (CPPCC), Huang Meng Fu and discussed the prospects of enhanced investment in Pakistan in various fields.

CDB GOVERNOR CALLS ON ZARDARI: Governor China Development Bank (CDB), Chen Yuan called on President Asif Ali Zardari here at the state guest house on Wednesday and discussed the prospects of trade and investment in various fields in Pakistan.

He assured the President of CDB's all out assistance and support to the public and private sector for the socio-economic development of Pakistan, particularly the development of infrastructure, to cater to the needs of growing economy.

President Zardari appreciated the CDB's support to Pakistan and hoped that the bank will continue to extend its assistance for Pakistan's development efforts. Foreign Minister Makhdoom Shah Mehmood Qureshi, Defence Minister Chaudhry Ahmed Mukhtar, Minister for Environment Hameedullah Jan Afridi, Advisor to PM on Interior Rehman Malik, Advisor to PM on Finance and Economic Affairs Shaukat Tareen and senior Pakistani officials were present in the meeting.


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IMF Missing In Financial Crisis: Shaukat Aziz

MANILA :Former prime minister Shaukat Aziz accused the International Monetary Fund (IMF) on Thursday of failing to show leadership during what he described as a ‘historic’ global financial crisis.

As world leaders met to shore up distressed financial institutions, Aziz charged that "this global institution which is supposed to look at everything going on was not even in the room where meetings are going on."

Speaking at an international business conference in Manila, the former finance minister and Citigroup banker said interest rate cuts, recapitalisation of banks and liquidity injections, while helpful, would not solve the problem.

"The very fabric of the global financial system is under threat," Aziz said.

"Everybody is looked at by different regulators. There is no synergy," he said. "If we don't have that, we will continue to have the problems that we have today."

Aziz, credited with reviving the Pakistani economy through reform measures when he became finance minister in 1999 and later as prime minister in 2004, said there was a need to boost the IMF's regulatory powers and create a more powerful body.

"The world is becoming increasingly specialised," he said, adding that existing systemic threats beyond the agency's traditional monetary policy role must be addressed.

"A robust regulatory regime must touch all the stakeholders," he added, with reference to the credit rating agencies that have come in for criticism amid the crisis.

He said that the IMF or some other multilateral institution must become a global regulatory agency "because we're dealing with a crisis of...historic proportions."





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Global Markets Battered By Recession Fears

TOKYO :Asian stocks plunged on Thursday, led by a 10 percent drop in Tokyo, after growing fears of a global recession left Wall Street reeling from its worst percentage drop in two decades.

Renewed panic eruped on global markets after a dismal US retail sales report stoked fears that the credit crunch will push some of the world's biggest economies into painful recessions.

"Don't stand in front of the freight train," said Sonray Capital Markets chief economist Clifford Bennett. "This is clearly a panic with further to go. The equity market game has fundamentally changed."

Japan's Nikkei stock index dropped almost 1,000 points or more than 10 percent in early trade, wiping out most of Tuesday's record rally.

Stocks lost about six percent in Seoul, Singapore and Sydney. Shanghai dropped almost four percent at the opening.

The market has "picked up on the fear factor," said ABN Amro Morgans private client adviser Bill Bishop. "There is nowhere to hide."

The Dow sank 7.87 percent Wednesday after US retail sales fell much more than expected and Federal Reserve chairman Ben Bernanke said a recovery from the financial crisis would not happen right away.

US retail sales slumped 1.2 percent in September, a sign of deeper troubles for an economy hit by the squeeze in credit and the worst financial crisis since the Great Depression.

San Francisco Federal Reserve president Janet Yellen said the US economy was probably already in recession.

"The stock market is buried by recession fears," said Al Goldman at Wachovia Securities.

The dollar languished below 100 yen as investors fled risky assets. Japan's central bank pumped 600 billion yen (6.0 billion dollars) into the short-term money market to try to keep credit flowing.

Most analysts now say that a US recession appears virtually certain as a crippling credit crunch and housing meltdown drags down the rest of the economy despite a 700-billion-dollar banking sector rescue plan.

Share markets around the globe were battered again. The London FTSE 100 shed 7.16 percent Wednesday while in Paris the CAC 40 fell 6.82 percent and the Frankfurt DAX gave up 6.49 percent.

In Brussels, European Union leaders gathering for a summit warned that the financial crisis was far from over and that the real cost to jobs and growth was only now becoming clear.

The leaders of the Group of Eight (G8) major economies pledged in a joint statement to hold a global financial crisis summit "in the near future" with other key countries.

Leaders of the G8 -- Britain, Canada, France, Germany, Italy, Japan, Russia and the United States -- are "united in our commitment to fulfill our shared responsibility to resolve the current crisis," they said.

Stocks across Latin America also tumbled Wednesday. Brazil's share market, the biggest in the region, finished down 11.39 percent, while Argentine equities slumped 12.14 percent.



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Pakistan Rupee Continues Downslide

KARACHI: The rupee took another sharp plunge on Thursday against the dollar in the interbank market, as the dollar is being traded at record high of Rs81.40 in the interbank.

According to currency dealers, the rupee is losing its value due to high demand of dollar in market. Falling foreign direct investment and outflow of foreign investment from the stock markets are other factors that have weighed on rupee.

Economic analysts said that the measures taken by the central bank proved insufficient and once again the State Bank has failed to control the dollar price.



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Parliament To Discuss Policy Issues Today

ISLAMABAD: A policy statement on deteriorating law and order situation in the country, especially in Fata, and Pakistan’s engagement in war on terror is likely to be issued by the government in today’s in-camera session of the Parliament to be resumed here Thursday.

Speaker National Assembly Dr Fehmida Mirza will preside over the session.

The Parliament might ask the government to take immediate measures to resolve the issue of militancy in tribal areas, besides asking for the details of peace pacts with different local tribes and Taliban’s leaders signed by the government on various occasions in past, reported ARY OneWorld.

In yesterday’s meeting of the in-camera session, various parliamentarians, both from treasury and opposition benches, had criticized the government on not adopting a clear-cut policy on terrorism.


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Taliban Ready For Talks With Govt: Tehrik-e-Taliban

ISLAMABAD: Tehrik-e-Taliban Pakistan spokesman Maulvi Omar has said that Taliban are ready for talks by laying down their arms if government holds ceasefire.

In an interview with a British radio, TTP spokesman said that Taliban were ready to drive out the foreigners from tribal areas, adding they would also cooperate with government in stopping intrusion into Afghanistan from Pakistan’s tribal areas.

“We are ready for talks if government stops using force against us, he said, adding Taliban are wise enough to realize the existence and survival of the country.”

To a question, Omar quoted Pakistan’s leadership as saying that they were being pressurized by external powers.



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Rangers, Police Deployed At Malir Jail

KARACHI: Additional contingent of police and rangers was deployed at Malir jail in Karachi on Thursday.

Talking to Geo News, Provincial Jail Khanajat Gul Muhammad Jakhrani said that situation was under control at jail, adding additional contingent of police and rangers reached the place in view of security situation.

He said that preparations were under way to shift some prisoners to other districts’ jails according to capacity.


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China Bank Assures Assistance To Pakistan

BEIJING: Governor China Development Bank (CDB), Chen Yuan called on President Asif Ali Zardari at the China state guest house on Wednesday and discussed the prospects of trade and investment in various fields in Pakistan.

He assured the President of CDB’s all out assistance and support to the public and private sector for the socio-economic development of Pakistan, particularly the development of infrastructure, to cater to the needs of growing economy.

President Zardari appreciated the CDB’s support to Pakistan and hoped that the bank will continue to extend its assistance for Pakistan’s development efforts.

Foreign Minister Makhdoom Shah Mehmood Qureshi, Defense Minister Chaudhry Ahmed Mukhtar, Minister for Environment Hameedullah Jan Afridi, Advisor to PM on Interior Rehman Malik, Advisor to PM on Finance and Economic Affairs Shaukat Tareen and senior Pakistani officials were present in the meeting.



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Pakistan, Afghans, US Aim To End ‘Misunderstandings’

ISLAMABAD :Top Pakistani, Afghan and Nato military commanders met on Wednesday for their first three-way talks since US forces infuriated Pakistan last month with an attack on a border village.

Cooperation between the military in Pakistan and Afghan and Western forces in Afghanistan is seen as vital as militant violence intensifies on both sides of the Afghan border.

But US impatience has grown over what it sees as Pakistan's failure to eliminate the militant threat in remote sanctuaries on its side of the frontier.

Cross-border strikes by US forces, in particular a Sept. 3 raid by US commandos on a Pakistani village, have led to calls from opposition politicians for Pakistan to end its help for the US-led campaign against militancy.

The military commanders held a meeting of their so-called Tripartite Commission at the Pakistani military's headquarters in the city of Rawalpindi to review security along the border, the Pakistani military said.

"While the forum expressed satisfaction at the current level of cooperation, it also discussed steps for better coordination and enhanced cooperation to avoid misunderstandings," the Pakistani military said in a statement.

Army commander General Ashfaq Kayani, his Afghan counterpart General Bismullah Khan and the commander of Afghanistan's Nato force, General David McKiernan, attended the talks.

Pakistan rules out foreign military strikes on its territory saying they not only violate its sovereignty but are counter-productive, increasing support for militants in a country where many people oppose support for the United States.

Top US officials have vowed respect for Pakistani sovereignty but have declined to rule out more strikes on militants in Pakistan.

US-operated pilotless drones have stepped up strikes in Pakistan since the beginning of September firing missiles at suspected militants 10 times, killing dozens of people, most of them militants, Pakistani security officials have said.


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3 Officials Killed In Mingora Suicide Attack

MINGORA: At least three officials were killed in a suicide attack at Mingora Poilce station, in sawat area, several others were also injured in the attack, besides blasts, firing was also heard here on early Thursday.

According to details suicide bomber blew himself at Mingora police station in which three officials were killed and 17 other were injured

Police sources informed that alleged suicide bomber collided explosive laden vehicle with police station in Mingora city that claimed three FC officials dead while 17 others were injured who were rushed to nearby Syed Sharif Hospital

It added that a rocket was also fired on police station after suicide blast. Meanwhile, Prime Minister Syed Yousuf Raza Gilani strongly deplored suicide attack on Mingora police station.

Suicide blast triggered panic in the area therefore more police troops have been called in to keep the law and order situation under control.

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US Troops Kill Top Al-Qaida Leader in Iraq

BAGHDAD: American troops acting on a tip killed the No. 2 leader of al-Qaida in Iraq — a Moroccan known for his ability to recruit and motivate foreign fighters — in a raid in the northern city of Mosul, the US military said Wednesday.

The military statement described the man, known as Abu Qaswarah, as a charismatic leader who had trained in Afghanistan and managed to rally al-Qaida followers in Iraq despite U.S. and Iraqi security gains.

Rear Adm. Patrick Driscoll, a U.S. spokesman in Baghdad, also said the military suspected that Iranian agents were trying to bribe Iraqi politicians to oppose negotiations over a security pact that would extend the presence of American troops in Iraq.

But, he said, the military had no reason to believe Iraqi politicians had taken the Iranians up on the offers.

"There are indicators that Iranian agents may come across the border and use money or other bribes to influence Iraqi politicians," Driscoll said. "It's a whole different matter whether Iraqi politicians would accept that."

U.S. troops killed Abu Qaswarah, also known as Abu Sara, on Oct. 5 after coming under fire during a raid on a building that served as an al-Qaida in Iraq "key command and control location for" in Mosul, the military said.

Abu Qaswarah — one of five insurgents killed — was later been positively identified, the military said, without elaborating.

The insurgent leader became the senior al-Qaida in Iraq emir of northern Iraq in June 2007 and had "historic ties to AQI founder Abu Musab al-Zarqawi and senior al-Qaida leaders in Afghanistan and Pakistan," the military said.

It called him "al-Qaida in Iraq's second-in-command" as the senior operational leader for al-Zarqawi's successor, Abu Ayyub al-Masri, also known as Abu Hamza al-Muhajir.

Driscoll said Abu Qaswarah directed the smuggling of foreign terrorists into northern Iraq and reportedly killed those who tried to return to their homelands rather than carry out suicide bombings and other attacks against Iraqis.

The announcement would indicate that al-Qaida in Iraq's leadership has maintained a presence despite recent reports that many had fled to Afghanistan and Pakistan where fighting has been on the rise.

Abu Qaswarah was described by the military as a "charismatic AQI leader who rallied AQI's northern network in the wake of major setbacks to the terrorist organization across Iraq."

The death of the senior al-Qaida in Iraq leader will cause a major disruption to the terror network, particularly in northern Iraq, the military said.

Nationwide violence has declined drastically over the past year, particularly in Baghdad, but the U.S. military has consistently warned al-Qaida in Iraq and other insurgents remain a serious threat.

A recent series of killings of Iraqi Christians in Mosul, 225 miles northwest of Baghdad, has highlighted the continued dangers in northern Iraq, where many insurgents fled intensive U.S. military operations in the capital and surrounding areas.

The number of Christian families fleeing violence in Mosul since last week has reached 1,390 — or more than 8,300 people, local migration official Jawdat Ismaeel said Wednesday.

Ismaeel said humanitarian teams are distributing food and aid materials to all displaced families, who are largely seeking refuge in nearby Christian-dominated towns and villages.

Islamic extremists have frequently targeted Christians and other religious minorities since the 2003 U.S. invasion, forcing tens of thousands to flee Iraq. However, attacks declined as areas became more secure following a U.S. troops buildup, a U.S.-funded Sunni revolt against al-Qaida and a Shiite militia cease-fire.

Driscoll said the attacks against the Christians bore the hallmarks of a "typical al-Qaida in Iraq tactic" of trying to provoke retaliatory killings by pitting members of religious and ethnic groups against each other.



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Bush Signs Defense Bill With 3.9% Pay Raise

WASHINGTON: The 2009 Defense Authorization Act, which included a host of improvements in military pay and benefits, capped by a 3.9 percent raise, and was signed into law by President Bush on Tuesday.

The pay raise, which takes effect on Jan. 1, marks the eighth consecutive year in which pay for service members will exceed the average increase in private-sector wage growth.

There is more to the defense bill than pay and benefits increases, however. It also includes $531.4 billion in budget authority for peacetime defense programs, including weapons research and purchases, operations and training, military construction and health care programs and other personnel costs.

Also in the bill is permission for the Pentagon to spend $68.6 billion for ongoing military operations in Iraq and Afghanistan — enough for about six months at the current pace of expenses.

Enactment of the bill before the November general elections is a major accomplishment for Congress, especially after the 2008 version of the annual policy bill ran into a series of problems, including a veto of one version, and did not become law until January — more than three months after the fiscal year began.

Rep. Ike Skelton, D-Mo., the House Armed Services Committee chairman and one of the chief negotiators who crafted the final compromise version of the law, said one of its most important items is an effort to restore the readiness of Army and Marine Corps ground forces, which have strained to continue extended deployments in Iraq.

The law includes $8.6 billion for the Army and $1.8 billion for the Marine Corps to repair or replace equipment, and $800 million for additional equipment for National Guard and reserve forces.

The new law is called the Duncan Hunter National Defense Authorization Act, named for the retiring California Republican who is a member of the House Armed Services Committee and a former chairman.

Hunter is a Vietnam veteran who has served in Congress since 1980. His son, a Marine veteran, is running to succeed him. Hunter said there is much to like in the law, but it still has some shortfalls.

Security Forces To Launch Decisive Action Against Militants

KHAR: Security forces on Wednesday imposed curfew in Tehsil Khar in a bid to launch a decisive operation against the militants in Bajaur Agency.

According to sources, security forces continued operation against the local militants in Bajaur Agency, while curfew was enforced in Khar.

The fresh troops have started to reach the troubled agency while all arrangements have been finalized to launch decisive onslaught against the militants.

Meanwhile, a large number of local people is moving to safe places due to poor security situation in the area.

NEWS BY GEO.TV