By
Martyr Muhammad Jawad Bahonar *
Translated from Persian
by
Mahliqa Qara’i
By the soul, and Him Who perfected it and inspired it to
[distinguish between] lewdness and God-fearing.
Posted on 13 February 2012 by Tea Server
By
Martyr Muhammad Jawad Bahonar *
Translated from Persian
by
Mahliqa Qara’i
By the soul, and Him Who perfected it and inspired it to
[distinguish between] lewdness and God-fearing.
Posted on 10 February 2012 by Tea Server
As the upcoming license auctions draw close, news flows in that global telecom giants are cosnidering to participate in the bidding process. Prospective bidders to enter the Pakistan telecom market were informed to 3G/4G/LTE advisory committee.
As reported by Dawn News, they include:
The report further streghtens Warid’s un-fit financial position for the bid. Also, Warid can possibly make a joint bid with some telecom firm from Malaysia. Qubee is also reported to be in talks with current market players for a joint bid.
Complete report from Dawn News follows:
At least nine telecommunication companies including four world majors are likely to participate in bidding due by end-March for third and fourth generation telecom licences in Pakistan, raising hopes for a better foreign exchange yield.
An advisory committee on 3G/4G/LTE led by prime minister’s adviser on finance Abdul Hafeez Shaikh was informed on Thursday that British Vodafone, Japan’s DoComo, AT&T of United States, QTel of Qatar and even Roshan Telecom of Afghanistan were preparing for bidding to be new foreign entrants in the country’s fast growing telecom industry.
The information, based on market intelligence, was put forward by Ministry of Telecommunication and Pakistan
Telecommunication Authority (PTA).The advisory committee was also informed that among the existing players Ufone, Mobilink and Zong were keen to get the new licences to be available for 15 years. Another player Warid was not in a position to independently vie for the future licence due to financial constraints but was in contact with a leading Malaysian telecom firm for a joint bid, according to market intelligence.
Qbee another firm that currently operates wireless and internet services in Pakistan and Bangladesh was also reported to be making contacts with some market players for a joint bid.
The advisory committee, said these sources, discussed a proposal to appoint consultant or a consortium of consultants to assist the government in transaction structure and bidding process but was informed that this could delay the transaction in view of procurement rules while the government was interested in over $800 million sale proceeds during the current financial year.
The finance ministry was of the view that the government could exercise its right to bypass procurement rules to reduce time for the appointment of consultants because that would help the government to maximise sale proceeds. The committee members remained divided over the issue, Dr Abdul Hafeez Shaikh said the decision would be made in a couple of days after consultations with the ministry of law.
In the meanwhile, the PTA was directed to enhance its coordination with the major telecom players for wider participation in the bidding process. The committee decided to appoint a media consultant for the transaction. The committee also considered replies to objections raised by cross-party members of the senate over the base price fixed by the PTA for the bidding. It also decided to issue an international advertisement for competitive bidding.
The government plans to auction three 3G and one cellular licence for 1900/2100 MHz (3G/4G/LTE) band and 800 MHz Band. The base price for 3G licence to be effective for 15 years has been set at $210 million while the base price for cellular licence for 8 years has been set at $155 million.
Likewise, the earnest money to qualify for the bidding has been set at $31.5 million for each bidder of 3G and $23.25 million for cellular license. The spectrum capacity allocation has already been fixed for three 3G licences.
The bidders would be required to start their offers from the base price fixed by government with each increment of at least $2 million multiples. The successful bidder would be required to deposit 50 per cent of the auction price within 30 days of the auction and remaining 50 per cent in five equal instalments. The bidder would be allowed to launch its operations on 100 per cent payment of bid money.
The senators had objected to the bid price saying it was too low given the fact that cellular companies had paid $291 million per license in 2004 for 2G services (GSM), now considered an obsolete technology. The advisory committee was, however, told that base price did not mean a sale price that would go up on competitive bidding and reminded the senators that the base price for 2G licenses was set at $61 million that had increased to $291 through bidding.
The meeting was informed that base price for cellular licence was set at $155 million because it was being issued against the remaining 8 years period of the defunct Instaphone instead of other cellular licenses that were for 15 years. Even the bidding result for one GSM license would also go up.
The committee was informed that base price was arrived at after taking into consideration the 2004 auction result of 2G (GSM), expected service revenues, subscriber growth, economic growth, per capita income, political situation and population of the country.
via Dawn News
Posted on 08 February 2012 by Tea Server
Let’s be honest, a big block of text simply isn’t as interesting as a cool video. As someone in her mid-twenties, I know that my generation is YouTube crazy and video game insane, but this fascination with video is only going to get more intense as the years continue. As a former High School English teacher, I think I know this better than anyone. Do you think my students read the books I gave them? Or do you think they watched the movie? Their test scores would say the latter.
People are getting tired of the traditional article, so many blog editors are doing everything they can to keep the way they relay information exciting. Many have decided that video blogging is the way to go, and although the idea is somewhat new, all the evidence supports its success. For those who are unfamiliar, video blogging is a blog that uses videos as its primary mode of content delivery. The content is generally similar to the content you would find in an article on a blog, but it’s shown through a video.

Videos work great for a few reasons:
Video blogging would certainly be a big change for most of the blogs on the web, so I advise you to start slow. Create one or two videos per week and see what your readers think before going to an all-video blog. Most blog editors end up creating an entirely new video blog that is separate from their traditional blog. Although it’s a little bit of extra work, I think you will find that it will pay off in the end.
Amanda DiSilvestro is a writer on topics ranging from social media to small business loans. She writes for an online resource that gives advice on topics including 401k limits to small businesses and entrepreneurs for a b2b lead generation company, Resource Nation.
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Posted on 06 February 2012 by Tea Server
Transparency International Pakistan says Gilani tenure has given a loss of Rs 8,500 billions in corruption so far. Still nincompoos and corrupts in government expect people to pay taxes like “responsible” citizens. Yes, people like us who pay taxes despite corruption are responsible and they are responsible for beeing ignorant.
People should go for a collective boycott of taxes and take back the country from these evil ruling elite.
———————————————————————————————————————————————————————————————
Rs 8,500 bn corruption mars Gilani tenure: Transparency
Source : http://www.thenews.com.pk/TodaysPrintDetail.aspx?ID=12258&Cat=13
by Ansar Abbasi
ISLAMABAD: Pakistan has lost an unbelievably high amount, more than Rs8,500 billion (Rs8.5 trillion or US$94 billion), in corruption, tax evasion and bad governance during the last four years of Prime Minister Yusuf Raza Gilani’s tenure, Transparency International Pakistan (TIP) claims.
The TIP advisor, Adil Gillani, told The News that the real impact of corruption in the country’s economy is far more than what is generally estimated or what is formally uncovered. He believes that Pakistan does not need even a single penny from the outside world if it effectively checks the menace of corruption and ensures good governance.
It is generally believed that the four years of the present regime under Gilani had been the worst in terms of corruption and bad governance in the country’s history. Past records of corruption were broken and Pakistan started rising in the ranks of the most corrupt nations of the world.
There has been no check on corruption as the anti-corruption institutions like the National Accountability Bureau and Federal Investigation Agency instead of checking corruption have been siding with the corrupt.
These institutions have been helping the corrupt to get off the hook by distorting and mutilating the evidence in favour of the influential accused.
Adil Gillani, the TIP representative, who too has been haunted by the government during these years for producing corruption reports, explained that the TIP pointed out corruption of Rs390 billion in 2008, Rs450 billion in 2009, Rs825 billion in 2010 and Rs1,100 billion in 2011 under the present regime. The total of these identified cases of corruption is Rs2,765 billion.
In addition to this, he explained the following:
The minister of finance of the present regime himself confirmed corruption in FBR of over Rs500 billon per year, which makes the total Rs2,000 billion; Auditor General of Pakistan pointed out Rs315 billion corruption in 2010; Public Accounts Committee recovered Rs115 billion in 30 months till 2011; circular debt is Rs190 million; KESC was given Rs55 billion illegal benefits per annum since 2008; state-owned enterprises like PSO, PIA, Pakistan Steel, Railways, SSGC, SNGC are eating away Rs150-300 billion per annum; tax to GDP ratio in 2008 was 11%, which in 2011 has reduced to 9.1% instead of being increased.
Gillani explained that Pakistan’s Gross Domestic Product is worth US$175 billion and in the light of this the drop of 1.9% in the tax GDP means annual loss of US$ 3.3 billion. This confirms that FBR is losing Rs300 million per annum, which is annual additional loss since 2008 and stands at Rs1,200 billon in four years
The TIP adviser added that India’s tax-GDP ratio is 18%, and at that rate, Pakistan’s tax evasion/corruption in FBR is 9% of $175 billion, which is US$15.5 billion per year, i.e. Rs1,400 billion per year.
It is worth mentioning here that it is not only the Transparency International but there have been different international bodies including the World Bank and world capitals, which have been showing their concern over rising trend of corruption in Pakistan under the Gilani’s regime. It was mounting corruption and extremely bad governance, which even dithered the outside world to offer cash to Pakistan during 2010 and 2011 floods, which devastated different parts of Pakistan and affected millions of people.
At home the corruption became a fashion in such a shameless manner that even the cabinet ministers started openly pointing fingers at each other and even at the highest levels including the prime minister. Some even approached the Supreme Court but despite all this, corruption remained the hallmark of the present regime, which instead of curbing it started defending it in the name of democracy.
Posted on 03 February 2012 by Tea Server
PT Report Gilgit, February 2: The federal finance department has released an amount of eight hundred and sixteen million rupees for the Government of Gilgit – Baltistan, to facilitate payment of salaries, pensions and other recurring expenses. The GB Government is complete dependent on financing from Islamabad for payments against small and large expenses. The [...]
Posted on 02 February 2012 by Tea Server
http://www.awaztoday.com/playshow/19642/Islamabad-Tonight-1st-February-2012.aspx
http://www.zemtv.com/2012/02/01/islamabad-tonight-on-aaj-news-shaikh-rasheed-interview-1st-febuary-2012/
http://www.friendskorner.com/forum/f247/video-islamabad-tonight-nadeem-malik-1st-february-2011-shaikh-rasheed-262541/
http://www.pakistanherald.com/Program/Islamabad-Tonight-February-01-2012-Nadeem-Malik-9558
ISLAMABAD TONIGHT
WITH NADEEM MALIK
01-02-2012
TOPIC- PAKISTAN POLITICS
GUEST- SHEIKH RASHEED AHMED
SHEIKH RASHEED AHMED OF AML WAS THE ONLY GUEST ON THE SHOW
He said that Molana Fazal Ur Rehman and Sheikh Rasheed Ahmed statements in Pakistan should be considered. He said that right after the senate elections general elections will be announced in the country. He said that the next budget will be the first rigging of the elections. He said that the kind of promises will be made in the budget which next government will not be able to fulfill. He said that PML-N has been trapped once again. He said that there is a big difference between the thought of Nawaz and Shahbaz Sharif. He said that Mian Shahbaz Sharif likes to play on the front foot. He said that PML-n was afraid that military might take over the government. He said that there was no chance of military of taking over the government.
He said that once PML-N joined the government it should have not come out. He said that if Ishaq Dar would have been the finance minister of the country the corruption was not going to be so rampant.
He said that the backing off from memogate has put a bad mark on the reputation on the military. He said that it is hard for him to understand general Kyani and that Kyani only talks in a year as much he talks in a day. He said that his assumptions about general Kyani have always failed. He said that he thought that general Kyani will not take extension as COAS but he did. He said that in his opinion memogate is a reality because he knows general Kyani. He said that memogate was a very serious matter for the military but he does not know why they backed off.
He said that people voted for five years but now they want change. He said that people are disappointed from the politicians, military and judiciary and are sick and tired of them. He said that it is true that military told Musharaf not to come to Pakistan.
He said that he does not believe that military is supporting to any political party. He said that some people have joined PTI just because they think that military is in the support of this party. He said that he will let people know that who is good and who is bad. He said that there is no difference between the government and opposition. He said that people of Pakistan are dying and that 85% parliamentarians do not live in their constituencies.
He said that he went to the meeting of Difa-e-Pakistan on the call of general Gul Hameed. He said that when an organization is banned it goes underground and take guns in their hands.
He said that from 40 to 50 pharmaceutical factories belong to the politicians. He said that the medicines of UNCEF have no warranties in Pakistan. He said that he claims that the polio drops given to children in Pakistan are counterfeit.
He said that today it is time of politics of interests and not of diplomacy. He said that he predicts that the next will be a hung parliament in the country than the current one. He said that PPPP in the rural areas and PML-N in Lahore will take some seats. He said that if a wave is drawn PTI can do a clean sweep in the next elections. He said that ANP will be finished after the next elections. He said that he does not see any role of ANP in the Khyber Pakhtoonkhwa politics after the next elections.
He said that PTI will take seats in Khyber Pakhtoonkhwa but he does not say that PTI will form a government in the province. He said that there will be no change in the number of MQM seats in the province of Sindh. He said that Peoples Party will face a shock in the interior of the Sindh but yet to have to see that who will fill the vacuum.
–
Filed under: CURRENT AFFAIRS
Posted on 02 February 2012 by Tea Server
The world of social media has grown exponentially click by click. Now its crown jewel, Facebook, is expected to launch what may be the biggest initial public offer ever seen, virtual or real. It’s opened up new scrutiny of Facebook and the social media landscape it occupies. Experts note that Facebook has learnt from the [...]
Recession Creating Morgan Stanley Handling Facebook IPO is a post from: PakMediaBlog All Rights Reserved.
Posted on 02 February 2012 by Tea Server
Have less therefore cheaper?
Now it doesn’t seem to make any sense to alot of people, but it makes perfect sense to me. If a commodity is increasingly scarce its price will increase. Why does anyone expect it to fall?
The price of oil is determined by international market forces. Not free of course: OPEC tries to influence oil prices by manipulating price. Demand from China is a factor affecting energy prices. And recently, the increasingly aggressive tone between Iran and the US, and the Iranian threat to blockade the Straits of Hormuz, has contributed to rising oil prices. Then there are issues of limited refinery capacity that also contributes to higher prices.
Yes, we can argue that petroleum products are heavily taxed. Should the government lower the tax when oil prices increase to give the masses “relief”?
Spoilt silly
The problem with our consumption behaviour is that oil pricing uptil the end of the Musharaf era spoilt us badly. We became used to cheap petrol and diesel. Both were heavily subsidised.
The subsidy on petrol was plainly criminal. It resulted in a massive transfer of wealth from the have nots, to the haves. During 2002-2007, when banks were offering cars on two photocopies of an ID card and a utility bill, it was the urban, salaried class that benefited. The richer you were, the bigger your car, the more extravagant the use. And it was these people who went around filling there tanks with subsidised petrol. Who footed the bill? The taxpayer, and they continue to do so. The debt that was accumulated during this period to keep energy prices at bay in the lead up to the early 2008 elections, still remain.
The burden of that debt and the inflation that increased government borrowing caused hit the poorest hardest. The costs of inflation are dis-proportionetly felt by those on low incomes. While the well off, those people who had taken out consumer goods, including cars on finance and debt, experienced a decline in real terms, as inflations benefits debtors rather than creditors. Further, a salaried individual is more likely to enjoy annual increments in wages, not equal to, but in line with inflationary expectations. The small man is screwed both ways.
Alot of hot air
History will probably judge our move towards CNG as a major disaster. At most it should have been a source of fuel for public transport to cut down its cost. Again, its criminal to see brand new cars converted to CNG. If you can afford to own a Honda Civic or Toyota Corolla, you can afford to pay for petrol. After a decade of cheap CNG, people dont expect its price to rise. Or when it rises they expect the difference between petrol and gas prices to remain the same. However, that is neither sustainable, nor desirable. Households on low income which cant afford UPS’s and Generators, should at least be able to cook and heat there homes. Instead, the CNG Pump Owners lobby not only wants the price to fall and taxes removed, but a reduction in gas load shedding as well. Why should those with the least, have to bear the cost for some guy who can afford to buy his/her own car, but prefers to put gas in it?
Subsidies are generally a bad idea. They encourage over production and/or over consumption. It is also very difficult to make sure that those who the subsidy intends to benefit, actually benefit. Worst off, the economics of energy pricing have been co-opted by political rhetoric.
Every energy price increase is met with accusations of corruption and how democracy has brought us the gift of higher petrol/diesel prices.
The other day I read a comment on the Express Tribune which something something along the lines:
“Even when global oil prices were $142 a barrel, petrol in Pakistan was cheaper than it is now”
Well no surprises there, at that time the Musharaf government maintained the subsidy, by stopping oil prices from rising. It didnt help win him the elections, but it did insure that the new government was setup for failure.
Promises, promises, promises
The worst thing now is for opposition parties to promise lower energy prices. Its high time they all stuffed the rhetoric and say whats needed. Energy prices are going to keep on rising. What they should be focusing on, rather than promising to throw untold, 100s of billions of rupees on subsidies, is on incentivising energy audits, improved insulation and building design, conservation etc. Car producers in Pakistan, who year on year demand tariffs to protect them from foreign competition, need to spurned towards energy efficient engines and design.
Thar coal, more gas in Baluchistan etc etc, are all mirages offered as possible future solutions. They are no closer to reality than they were a few years ago. No one is going to give us free oil, and its economic suicide to expect the state to foot the bill. Its also corrupt on our part to expect subsidies, the burden of which is borne by those who hardly consumer any of it. The poorest and most vulnerable, must and should be protected from inflationary pressure. However, we need to draw a line somewhere. The guy sitting in his brand new Honda Civic, being interviewed on GEO News on how the government should cut petrol prices doesn’t deserve a poor states economic protection.
So gear up for higher prices, and continue to blame corruption, Zardari, democracy, PPP for our ills, just do so while economizing energy use in your surroundings.
Posted on 26 January 2012 by Tea Server
By: Hazem Badr
Published on SciDev.Net on 18 January 2012
[CAIRO] Scientists have been reflecting on the astonishing gains that the Egyptian revolution has delivered them, as the first anniversary of Egypt’s Tahrir Square uprising approaches next week (25 January).
Over the past year, the science budget has increased by more than a third, salaries have risen and plans have been made for a science and technology city.
“Change has begun on both financial and administrative levels,” Maged El-Sherbiny, president of the Academy of Scientific Research and Technology (the government body responsible for funding research in Egypt), told SciDev.Net.
All the research centres affiliated to different ministries will be gathered under the Supreme Council of Research Centers, and the scientific research budget, which jumped 35 per cent in 2011−12, is likely to increase in 2012−13, said El-Sherbiny, with a government target of one per cent of gross domestic product to be spent on science.
The sharp increase in funding stems from a widespread perception that investment in science is crucial for the future of Egypt.
Ashraf Shaalan, president of the National Research Centre (NRC) ―the largest research centre in Egypt ― said that this surge of national fervour for science, as well as increased funding, had motivated Egypt’s scientists.
For example, it has sparked interest in getting research published in international journals, he said. Output rose by a quarter to about 2,000 in 2011, he claimed.
The NRC won about US$13 million from the National Science and Technology Fund in 2011 to fund 80 research projects, he said. But, despite salary rises, the centre lost 400 researchers in the brain drain last year, especially to Qatar and Saudi Arabia.
The private sector has not fared so well post-revolution. The Nile University, the first private non-profit research university in Egypt, came under threat because of links to the former fallen regime. The university had moved into new accommodation just before the revolution and was then told by the new government to move out because they were on government land.
“Such stumbles are expected after revolutions,” said Tarek Khalil, president of the Nile University.
“We started the year after the revolution not knowing if we would continue but, by the end of the year, the minister of scientific research had assured us that we will be continuing our efforts in our university.”
Nile University will now be part of the new Zewail City of Science and Technology.
Government support for science investment and the launch of Zewail City― depicted as the ‘first fruit’ of the revolution and as a national project needing the support of all Egyptians ― has led to a surge in public interest in science, said Dr Hassan Abol-Enein, head of the Science Age Society, a non-governmental organisation (NGO).
“We noticed a high attendance at our lectures which we weren’t used to before 25 January,” he said.
After the revolution, NGOs became free to support scientific research in a way that had not been possible before. This was boosted by a fatwa (Islamic religious ruling) issued by the Grand Mufti of Egypt last October saying that donations to scientific research were acceptable as a component of the obligation to give 2.5 per cent of income to charity.
Abol-Enein said there were plans to harness the new public enthusiasm by establishing a fund to finance research projects, to which the public can donate.
But other leading scientists have expressed caution about how enduring Egypt’s scientific changes might be.
Alaa Idris, chairman of the scientific research committee of the science-supporting foundation Misr El-Kheir, said: “Egyptians are still more concerned with issues such as increasing wages [and dealing with] street children and slum areas”.
Idris said that, for real change to occur, the new Egyptian constitution should acknowledge the importance of scientific research and a law on science and technology should be passed next year.
Posted on 26 January 2012 by Tea Server
Some Muslim countries’ powerful financial incentives to make quick progress in research could backfire, cautions Athar Osama.
Over a decade ago, several governments in the Islamic world woke up from decades of slumber to begin investing heavily in science and innovation. A funding boost helped set up new universities, enhance research grants, and send thousands of students to do PhDs in the developed world.
The regulators and ministries that rolled out these ambitious efforts cautioned against judging their effectiveness and viability too soon, pointing to the limited scientific capacity in these countries. It was popular to say, ‘let’s build a critical mass (quantity) first and worry about raising the standard (quality) later’.
But there was clearly something amiss: some policies seemed either deficient or simply wrong-minded. And evidence of this is beginning to pile up.
Evidence of misguided priorities
The picture emerging is one of a mindless race to secure international publications and increase university rankings using ‘shopping sprees’ for highly cited academics, plagiarism and even outright academic fraud.
A recent article published in Science highlights a practice, prevalent in at least a couple of Saudi Universities, of engaging prolific academics on so-called part-time contracts that pay handsomely in exchange for spending a couple of weeks on campus — and, critically, on condition that the university name is added to their ISI (Institute for Scientific Information) index profiles. The index is one of the factors included in world university rankings.
This results in an artificially higher number of papers published by that university, and hence a higher ranking.
The article notes that this practice is similar to UK universities ‘shopping’ for prolific scientists just before research quality assessments, in order to ensure a higher evaluation and funding for future research.
But there is a fundamental difference: while one may question the timing of UK universities hiring a prolific scientist, it is not a fraudulent practice in and of itself. But claiming credit for a scientist who does not engage in meaningful research with researchers at the university in question, or using work unaffiliated with the university to bump up rankings, is certainly suspect.
Plagiarism and academic fraud
Seemingly sensible policies — such as encouraging academics to publish more — can also backfire if they are badly designed or implemented.
In Pakistan, a strong emphasis by the country’s Higher Education Commission (HEC) on a “publish and get paid” policy has created a culture of plagiarism and academic fraud, according to preliminary evidence that appeared recently in the Pakistani press.
Writing in a reputed English language national daily, Isa Daudpota, a senior administrator at Air University in Islamabad, alleges to have collected evidence of a fraudulent publishing racket that involves “international” and “peer-reviewed” journals, most of which are electronic. [2]
Although many are based in Africa, among other places, in reality they were created and run by Pakistani academics and their ‘friends’ abroad, says Daudpota.
These fraudulent journals may contain suspect or even fictitious names on their editorial boards, or may use names without permission. And participating academics can publish or even review their own work by nominating a non-existent professor as a reviewer.
Analysing the CVs of HEC-approved professors, Daudpota finds preliminary evidence that some professors (mainly having done their PhDs at local universities with relatively lax standards) are more likely to publish in such journals. But so far, the HEC appears to be treating these revelations as isolated cases rather than a systemic problem.
No shortcuts
Muslim countries are not alone in using financial incentives to increase their publishing performance. China and India — two emerging scientific powers — also struggle with similar challenges. [3-5]
Financial incentives also lead to more publications in the industrialised world. But research by Franzoni and colleagues suggests they encourage submissions regardless of quality, while career incentives improve the quality of scientific papers. [6]
In the developing world, where the norms of quality and integrity have yet to take root, policymakers have a responsibility to enforce scientific integrity and ethics.
First, instances of misguided use of financial incentives, plagiarism, and academic fraud must be tackled with zero tolerance and exemplary punishments to individuals and institutions. This would set a precedent and send a message that it does not pay to cheat.
And rather than being treated as isolated instances, such cases should be probed for systemic problems that may tarnish a country’s academic reputation in the long term.
Second, future policies aimed at promoting scientific research must consider unintended consequences. Quality must come first, even if quantity and speed of reforms are compromised, and intrinsic motivators such as the satisfaction of creating new knowledge must be preferred over financial rewards.
Many aspiring governments in the Muslim world are eager to invest in science, and naturally, expect to reap rewards. But they must realise that there is no shortcut to joining the world’s scientific elite.
There are many things money can buy overnight, but the ability to carry out quality scientific research is not one of them.

Athar Osama is a London-based science and innovation policy consultant. He is the founder and CEO of Technomics International Ltd, a UK-based international technology policy consulting firm, and founder of Muslim-Science.com.
Posted on 17 January 2012 by Tea Server
Standard and Poor’s rating agency has lowered the credit ratings of 9 eurozone members, including formerly AAA-rated France and Austria. The move is significant, affecting as it does the future of the eurozone’s bail-out fund, the French presidential election, the roll-over of existing European sovereign debt, and more. However, the downgrade is not really a catastrophe for the nations downgraded nor for the European economy’s prospects. Our purpose here is to understand what the downgrade is, what it means and what it may not mean.
First off, what is a sovereign credit rating and what does a downgrade mean? There are numerous entities in finance that offer their well-informed (or otherwise) opinions about a variety of investment instruments. What we are concerned with here are the three main credit rating agencies: S&P, Fitch and my former employer Moody’s. What they do is issue a rating, that is an alphanumeric symbol, that encapsulates the agency’s detailed analysis of a debtor’s ability and willingness to repay a debt. In that sense, their ratings aren’t a whole lot different from the FICO score you have that is supposed to tell lenders about your creditworthiness.
While the methodologies vary a bit from one agency to another, the ratings scales of each are comparable by and large. For example, AAA is the best rating possible (Aaa at Moody’s). Junk status is about 10 notches below that at BB+ (Ba1 Moody’s) , and default is another 10 or so notches down. Because these agencies have been in the business of issuing ratings for decades (Moody’s was founded in 1900), it is possible to tie actual default experiences to the ratings. S&P’s can be found here.
On Friday, France and Austria fell one notch from AAA to AA+, Italy fell a couple of notches from A to BBB+, Spain went down one from AA- to A, Cyprus dropped two notches to BB+, Portugal’s two notch fall leaves it at BB (junk status, and it also has a negative outlook), Malta went down one notch to A- from A, Slovakia fell a notch to A from A+, and Slovenia is one notch lower at A+ from AA-. The other members of the eurozone retain their ratings. That means Germany, the Netherlands, Luxembourg, and Finland kept their AAA. For the record, the other members states and their S&P ratings are: Belgium (AA), Estonia (AA-), Greece (CC) and Ireland (BBB).
What is extremely important to remember is that the downgrades were only to the ratings issued by S&P. Moody’s and Fitch did nothing. In their eyes, France and Austria (and the USA for that matter) are still AAA. Split ratings, when the agencies don’t agree exactly, are rather common. And in every regulation where ratings agencies are mentioned, two different agencies’ opinions matter, not three. So, there is a real question as to whether Austria and France are still AAA or not. The market, of course, is not focused on the dog that didn’t bark – it’s paying attention to S&P despite it having the minority opinion.
Be that as it may, the S&P downgrades for France and Austria are economically inconvenient but not really all that important for investors. Yes, both will have to pay a bit more in interest to fund their debts. However, a study by JPMorgan Chase looking at the nine sovereign borrowers that lost their AAA ratings between 1998 and the US downgrade in August shows an increase of 2 basis points (or 0.02%) in the following week. Is it a make or break situation if your mortgage is 4.12% or 4.14%? France and Austria will face no funding problems as a result of the downgrade. And indeed, the US saw its borrowing costs actually decline immediately after S&P downgraded it a few months ago.
The reason for this minimal change lies in the default record of AA+ issuers. According to the chart cited above, issuers rated AAA will default 0.00% of the time in the next 12 months. An issuer with a rating of AA+ has the same default rate over 12 months. Over a 5-year period, the default rate for AAA issuers is 0.10%; for an AA+ debtor, it’s 0.15%. In other words, if you lend to France or Austria by buying a 3-year bond, you still have a 99+% chance of getting paid back in full with interest on time.
Where the downgrades do become problematic is in the political sphere. In three months’ time, the French will go to the polls to elect a president. France lost its AAA rating on Nicholas Sarkozy’s watch, and whether justly or not, he will take some blame for it – the leftish newspaper Liberation ran a headline calling him S_RKOZY, having lost an “A” of his own. He currently trails socialist candidate Francois Hollande by 10% in the polls. With 53% of the electorate believing that the loss of the AAA rating is a serious matter, the downgrade only makes his re-election more difficult.
In the end, though, the ratings come back to the issue that undermined them in the first place – the euro. The bail-out fund that has kept Greece, Ireland and Portugal afloat so far, the European Financial Stability Facility, was rated AAA because of its backing from AAA-rated sovereigns. However, 16 January 2012, S&P dropped that rating to AA+ because of the French and Austrian downgrades. S&P said that the EFSF could get its AAA back if it could obtain more guarantees (from whom I wonder?) or if it raised less money that would be better protected by the existing guarantees. A smaller bail-out fund, however, is less likely to succeed at stabilizing the eurozone. At the same time, a fund rated less than AAA will have to pay more for its funds, and that will make the bail-out fund less effective as well.
So what does it all mean? Objectively, the difference between AAA and AA+ is very small, and it should not have much impact. Markets, however, are never objective. They are fueled by greed and fear. S&P’s downgrade of these nations has made the eurozone’s problems harder to solve.
Posted on 15 January 2012 by Tea Server
The diversity and sheer volume of iPhone apps is just one reason the Apple device is considered the most desirable smartphone on the market. The flexibility provided makes it ideal for personal and professional use, but it may surprise you that the iPhone is also a very capable tool for managing small business finances.
The wealth of accounting, finance, and bookkeeping apps offer small business owners the power to better manage their cash flow while creating new strategies to increase growth and efficiency. At times, however, the overabundance of options can make it difficult to sort out which apps are the most proficient when it comes to your specific accounting and financial needs.

The following are 5 must have iPhone Apps for managing small business finances:
1. MiniBooks
FreshBooks is a free accounting tool that allows small business owners to do a number of functions without the assistance of a professional accountant. MiniBooks is the mobile app version of this software, which offers an intuitive interface designed for the iPhone while still providing all the features included in your FreshBooks account. MiniBooks gives you the freedom to search for clients and contact them through the software. You can create, edit and send invoices, as well as estimates and payments. Timers can be started with a single tap and will continue to run even after exiting the application.
2. Mint.com
Mint consolidates all your financial accounts to a single mobile device. It automatically sorts each transaction into a predefined category, and allows you to set budgets while providing guidance on how to achieve your financial objectives. Whether your needs are business or personal, Mint for the iPhone can help you create more efficient spending habits and organize your bills.
3. iTarget
Part of managing small business finances is creating opportunities for growth. This is why in addition to accounting tools, earnings and growth analyzers such as iTarget are critical. iTarget features a very simple user interface where you enter in your earnings target and timescale. The software will then map out a series of annual income targets as well as the percentage of growth required to meet them.
4. Receipts
Small business owners are often required to keep detailed records of every purchase they make, as many seemingly personal transactions can fall into the realm of business. Rather than painstakingly going through your receipts and adding figures with a calculator, try utilizing the Receipts app for the iPhone. This app providers users with a way to enter in their business expenses and receipt information as they make their purchases, significantly ameliorating the burden of adding figures and sorting through crumpled pieces of paper come tax season.
Do Check: Why You Should have iPhone 4S
5. QuickBooks Online
QuickBooks Online is a free iPhone app that is designed to meet all your basic accounting needs. The app works in conjunction with your desktop software to track sales and expenses, send purchase orders, and manage your invoices. Collection notices can be sent directly from the app after linking it with an existing email account. A handy search tool helps you quickly locate clients and keep track of invoices that are past due. Intuit offers the app in four separate versions. The Pro Edition comes with Customer Snapshot, which gives an overview of your clients and sorts them by their invoice date.
Jamie Richards is a writer for EmployersLiabilityInsurance.com an online resource for business owners.
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Posted on 01 January 2012 by Tea Server
Today is the first of January 2012, a new year has begun. It will bring joy and happiness for many, some will suffer and some will struggle. That is the reality of life.
2012 will be a challenging year for small businesses across the globe. With deepening economic crisis in Europe, threat of Euro zone and Euro, possibility of Greece and Italy defaulting and push to convince Germany to take the hit by paying for financially strangled nations in Europe, things are not promising!
The US Economy continued in depression since 2007. Although, US economists and the media, including New York Times. Los-Angeles Times, Wall Street Journal, Herald Tribune have acknowledged US economic growth in 2011, the consumer market still looks dull!
Middle East remained a turbulent region during 2011; it is highly unlikely for this region to perform well in the New Year.
According to Moody’s, Asia Pacific economies are going to see some slowdown mainly reflecting upon the economic crisis in Europe. There are chances of recovery in the second half of 2012, but a lot depends on how well the US and European economies perform!
The situation is alarming and a number of businesses particularly domestic businesses in smaller economies will be required to play safe. To be able to survive, small businesses must focus avoiding four major mistakes during 2012:
Expansion without growth:
A number of enthusiasts consider expansion as a tool to increase revenue. A major misconception! Before expansion starts brining revenue, a lot needs to be spent on hiring people, capital expenditure, benefits, marketing etc. If the market does not offer some growth potential in the normal course, expansion will be self-destructive!
Underutilized resources:
It is often seen that companies fail to optimize their resources. Spend time and energy in identifying the right potential of your human and other resources and engage them at an optimal level to achieve maximum output. Any underutilized resources, is money going down the drain!
Increasing Cost of Doing Business:
Cost of doing business increases exponentially for companies that are not managing their accounts well. One of the ways to keep the cost of doing business low is by balancing the receivables and payables. This reduces the financial cost of your businesses. Save energy, manage productivity and reduce cost of inventory – somehow keep strong focus on reducing your cost of doing business.
Saying no to technology:
In this world of social networking, digital marketing and technological advancement, it is highly lethal to delay integrating technology in your business model. Small or big, businesses need to learn how best they can deploy technology.. Social Media and Digital marketing is particularly supportive in case of local retail businesses. Technology is something cannot be ignored in 2012!
I wish you all a very Happy and prosperous 2012!
Posted on 19 December 2011 by Tea Server
Nostalgia hits all of us at one time or another. The idyllic past becomes a refuge from the hectic present, a sort of an emotional safety valve; a blissful state of mind, which resides in distant memories. And the mind itself seemingly having this wonderfully therapeutic capability of filtering out all that is sad and leaving us only joyful reminiscences …
Normally it is the time one spends in college which holds the most beautiful memories. In my case, it is my professional firm which has a solid grip on my imagination. For years now any CV brought to my notice bearing the words PricewaterhouseCoopers gets extra attention, but one with the magic words A. F. Fergusons wins a guaranteed interview. And the memories always come flooding back.
My four years at F.C College had coincided, unfortunately, with the most repressive and brutal period of Zia’s regime. Given a free hand by the martial law establishment, the Jamiyat ran amok in the college and terrorized all those who dared standup to its regressive agenda. I saw Christian teachers humiliated, students beaten up and systematic vicious repression of any sort of free speech or thought. The only good experience I had during that period was my involvement with a number of the college sports teams.
After graduating, opting for a career as a chartered accountant was a very natural choice. My father was one, and growing up I had heard of a number of his friends who were in senior positions in the profession. He was especially fond of his squash partner in London, Safdar Saleem, who later on worked for Fergusons, and was very upset when he tragically died at a relatively young age.
My batting average for the college cricket team being considerably higher than my graduation marks percentage, I was pessimistic about getting accepted by Fergusons. My father leveraged his friendships and got me an entrance test appointment. I am sure his being the head of finance at WAPDA also helped. I topped the entrance test, remained coherent during the interview and AFF accepted me.
I still remember reporting for my first day at work. Entering the office I saw the wooden sign board for the partner and managers and noticed that all the names there started with an ‘s’: Sohail Hassan, Shahzad Hussain, Saad Bin Khalid, Sikander Gulzar and Shabbar Zaidi …
What struck me in those early days was the easy-going manner in which various firm members interacted with each other. While there was a great deal of respect for the management there was not even a hint of undue formality in any aspect of the professional relationship. A great deal of credit for this went to the mangers, specially Shahzad Hussain and Shabbar Zaidi, who had enough confidence in their professional and personal abilities to maintain a very cordial work environment.
Having endured very stifling college years this was pure manna for me.
AFF during my years there remained a bit like Italy during the renaissance. Work was something which though taken very seriously on a professional level was only one aspect of our existence in the firm. We had an outstanding cricket team, winning almost all of our matches; an in-house magazine, Meridian, which always had the most wonderful articles; and then there was our pride and joy, the “holy scriptures society”.
Membership to the “holy scriptures society” was strictly by invitation, restricted to gentleman of discerning taste having the right family background , and required suitable monitory contribution, in advance. The principal activity consisted in admiring, in printed form, a certain talent that would be grounds for a treason case in lower Court if recent incidents are to be trusted, if you know what I mean.
We had a number of unique individuals among the support staff: Noor Elahi, the doyen of our office peon, who knew where each audit file was located, and Khokar, the lead typist, who could quality check reports better than most of us. The most beloved staff member was our receptionist who knew every clients’ and numerous sweethearts’ numbers by heart. More importantly, she knew the best time to call.
Then there was the presence of our female colleagues, who were always treated with the utmost respect and dignity. The only problem being that the hall would go silent in their presence as polite conversation was an alien art to most of us.
But the most enduring memory of AFF will always be the refreshingly casual, yet thoroughly professional, manner in which the affairs of the firm were run. To use an accounting cliché, if ever there was a business which focused on the substance rather than form it was AFF. Granting its members a wide latitude, and trusting their competence and maturity, it instilled a sense of responsibility in all of us.
To an uninformed outsider this amount of leeway would be astonishing. Throughout my tenure the formal supervision modes would number precisely two: the monthly worksheet, without which we were not paid our stipend, and then the Sunday attendance, conducted by our then senior manager, now partner, on a huge blue register.
But then our side of the bargain was that each one of us had to live up to the high standards expected from us. And the peer pressure was immense. These two coupled together tended to bring out the best out of most of us by leveraging our talents and energy in a very constructive manner.
Having being part of many world class organizations since, I would rate AFF among the very best in terms of matching people development objectives with work demands.
So many cherished memories, outstanding people, friends for life. We can only be thankful to that old firm. Somehow through all the apparent madness of its methods it chiseled off the rough edges, made true professionals out of us, and in the process seduced us for life…
