14 killed in fresh Karachi political violence

Supporters of political party Muttahida Qaumi Movement burn an effigy representing provincial Minister Zulfikar Mirza during a protest in Karachi. KARACHI, July 14 (Reuters): Fresh political violence gripped Pakistan's commercial capital, Karachi, Thursday, leaving 14 people dead in fighting sparked by a senior ruling party leader's criticism of the city's dominant political group.

Angry mobs went on a rampage and burned vehicles after Zulfiqar Mirza, a minister in the Sindh provincial assembly and senior member of President Asif Ali Zardari's Pakistan People's Party (PPP), urged the people of Karachi and Hyderabad, the second-largest city of Sindh, to "stand up ... and rid yourselves" of the Muttahida Qaumi Movement (MQM).

"I appeal to the people of Karachi especially, and of Hyderabad, to stand up for yourselves, for Pakistan, for Karachi and for your innocent children, and rid yourselves of these cursed ones," he said while talking to reporters, referring to senior MQM leaders.

In comments broadcast repeatedly by local television stations, he also criticised Mohajirs -- the descendents of Urdu-speakers who migrated from India -- for being ungrateful for the home they were given after the creation of Pakistan in 1947.

Provincial home minister Manzoor Wasan said 14 people were killed and 25 wounded in violence since last night. At least one person was killed in Hyderabad, police said.

Several protests were held in Karachi and other cities of the province, where hundreds of angry protesters burned tires, chanted slogans against Mirza and burned his effigies, demanding his removal as a minister.

Many roads were closed in Karachi after protesters torched several vehicles following heavy firing all night in many areas.

Mirza later apologised for his comments.

"My statement last night was my personal view and was not meant to hurt anybody's sentiments. But if it has done that, I sincerely apologise," he said in a statement.

Karachi, home to more than 18 million people, has a long history of ethnic, religious and sectarian violence.

It was a major target of al Qaeda-linked militants after the September 11 2001 attacks on the United States, when Pakistan joined the US-led campaign against militancy.

The latest incidents come after a surge in ethnic and political violence in Karachi last week, which killed more than 100 people.

As the commercial hub, any upheaval in Karachi could disturb industrial activity and have serious consequences for the economy.

The country is struggling to control a rising Taliban insurgency in the northwest along the border with Afghanistan, while militant attacks in bigger cities are also on the rise.

The insurgency, perceptions of corruption and chronic power shortages have put off long-term investors, hurting the fragile economy which has been propped up by an $11 billion International Monetary Fund (IMF) bailout programme.

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India govt likely to take political plunge, hike diesel prices

NEW DELHI, June 24 (bdnews24.com/Reuters) - The government was expected to raise diesel prices on Friday, although a delay in a government meeting to decide on the politically unpopular decision raised questions as to whether or not officials were in full agreement.

Oil prices fell 6 percent on Thursday after major consuming countries announced an emergency release of stocks, pushing benchmark Brent crude to a four-month low and providing a window for the government to raise prices with less pain for consumers.

Since it was first elected in 2004, the government of Prime Minister Manmohan Singh has more often than not refrained from pushing through tough reforms in favour of pleasing its predominantly rural voter base.

It has delayed a decision on increasing diesel and other fuel prices for months, even as its subsidy burden mounts.

Persistently high inflation, currently the highest among major Asian economies, as well as its handling of a spate of corruption scandals has added to the government's reluctance and led to what many critics say is a state of policy paralysis in New Delhi.

"We are working on more options, the final decision will be announced after the meeting," Oil Minister Jaipal Reddy told reporters, adding that the meeting had been rescheduled for 1900 local time (1330 GMT), a delay of 6 hours.

Sources familiar with the matter had said a price rise was likely. The government could also cut taxes and Reddy said more options were being considered.

Reddy told Reuters earlier on Friday the International Energy Agency's (IEA's) planned release of strategic stockpiles would give only temporary respite.

"I cannot speculate on the future trend but in the short run there is no hope. Even if there is a slight increase in production those gains will not be made available to us because of unbridled speculation in the financial markets," he said.

"We don't know whether this (softening in global prices) is a stable trend," he added.

J.P. Morgan cut its forecast for benchmark Brent oil for the third quarter to $100 a barrel from $130 after the IEA move but on Friday global crude prices were already rebounding.

Half of India's population are farmers, but the government needs to cut its massive subsidy bill on cooking gas and diesel in order meet its budget targets.

A year ago, New Delhi freed up petrol prices, which have risen about 23 percent since then, and said it could do the same with diesel. International oil prices are about 39 percent higher over the same period.

For a graphic on India fuel prices vs crude, click link.reuters.com/xyv32s

For a graphic on oil prices and IEA stock releases, click link.reuters.com/jev32s

PRICE RISES COULD ADD TO INFLATIONARY PRESSURES

With inflation above 9 percent and the domestic fuel price index up nearly 13 percent on the year, a fractious coalition government is wary of alienating its core voter base among India's 500 million poor, who live on less than the cost of 2 litres of diesel a day.

State-run fuel retailers Indian Oil Corp, Bharat Petroleum Corp and Hindustan Petroleum Corp are losing 4.56 billion rupees ($101.4 million) a day on sales of diesel, kerosene and cooking gas at state-set cheaper prices.

"Obviously diesel and LPG (liquefied petroleum gas), which is being considered, will add to inflation, diesel particularly a bit more as compared to petrol and LPG because of transport costs," said Saugata Bhattacharya, an economist at Axis Bank in Mumbai.

A three rupee increase in the price of diesel from current levels of 38 rupees ($0.845) per litre would add 40-45 basis points to wholesale price inflation, according to Yes Bank, which expects annual headline inflation to top 10 percent in August, based in part on expected fuel price hikes.

Shares in Bharat Petroleum and Hindustan Petroleum were up 2.84 percent and 4.35 percent respectively on Friday, outperforming the broader market.

($1 = 44.955 Indian Rupees)

bdnews24.com/lq/1939h.

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Azad wants end to 'political corruption'

Dhaka, June 22 (bdnews24.com) ? After seeing the fate ('porinati') of the Transparency International, Bangladesh (TIB) and stocks scam probe committee chief Khondkar Ibrahim Khaled, no well-meaning man will ever speak against corruption, head of a top trade body has said.

"The TIB has landed in trouble after publishing a report. They have to run ('douradouri') around the High Court now," Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) president A K Azad said on Wednesday.

"After speaking against corruption, Ibrahim Khaled is in danger, too. No good man in this country will speak against corruption," he added.

Azad was speaking at a workshop, 'End to corruption and complexities to get environmental permission, and industrialisation' at a city hotel.

According to him, one month is enough to remove corruption if minister and secretary level officials want to. "But a system to keep a tab on them should also be there."

"End to corruption is not possible without removing political corruption from the country. It is seen that politicians face corruption cases when the government changes," he added.

The FBCCI president urged businessmen and members of the civil society to get united against 'political corruption'.

Chaired by International Business Forum of Bangladesh (IBFB) president Mahmudul Islam Chowdhury, director general of the Department of Environment (DoE) Monowarul Islam, IBFB media public relation and communication officer Jesmina Shanta, among others, were also present at the workshop.

bdnews24.com/sim/skb/ost/nir/2345h

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