GM, Chrysler on the brink of bankruptcy

US automakers General Motors and Chrysler are likely to face bankruptcy after a White House task force rejected their money request for survival. 

In two separate reports, the White House said on Monday that the automakers had failed to lay out viable plans for their ailing companies. 

President Barack Obama said that GM and Chrysler had not done enough to save themselves since receiving a $17.4 billion bailout in December. 

The task force concluded both companies had failed to meet the conditions for the bailouts by a March 31 deadline, and as a result neither company had "satisfied the terms of its loan agreement." 

GM requested for up to $30 billion in new loans and Chrysler had wanted another $5 billion in loans to ride out the weakest market for new cars in almost 30 years. 

"We have unfortunately concluded that neither plan submitted by either company represents viability and therefore does not warrant the substantial additional investments that they requested," said a senior administration official, who asked not to be identified. 

GM and Chrysler had warned that without extra funds they were teetering on the brink of bankruptcy. 

Obama is due to unveil his plan for the future of the auto industry later on Monday.

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Business community welcomes America’s new strategy to strengthen Pakistan’s economy

ISLAMABAD, Mar 29 (APP): The businessmen in a meeting held at here Chamber of Commerce and Industry welcomed US President Barack Obama’s initiatives to strengthen Pakistan’s economy by pledging US $ 1.5 billion in annual aid to the country over the next five years for building schools, roads and hospital and strengthen democratic institutions. 

The meeting was held here under the chairmanship of its President Mian Shaukat Masud said the prudent utilization of this aid package will create many new opportunities for economic growth. 

They also welcomed US strategy review of policy towards Afghanistan and Pakistan, particularly its emphasis on a regional cooperation and solution and added that regional issues can best be resolved by adopting a regional approach with the support of regional powers. 

Mian Shaukat Masud also welcomed US move to pass legislation for establishing reconstruction opportunity zones (ROZs) along the Pak‑Afghan border and goods produced in these zones could be exported duty free to the United States. 

He said these ROZs will create a lot of employment opportunities for local population engaging them in productive activities, bringing positive change in their living standards and reducing the phenomenon of militancy. 

He also appreciated the role of business counterparts in USA for lobbying with the government and convincing to cut tariff on Pakistan textiles. 

He said that stronger economic ties with Pakistan would help advance American geopolitical goals in South Asia while economically stronger Pakistan would be in the best interest of USA and the whole World due to its strategic position. 

The ICCI President said Pakistan has suffered immensely on account of fighting war against terrorism and the optimum way to compensate Pakistan for economic losses is to provide it more easy access to US and European markets along with enhancing investment in Pakistan by these countries. 

He said the best option to tackle the phenomenon of terrorism, extremism and militancy is to step up the pace of developmental projects in these areas with the active participation and enhanced role of private sector.

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Foreign exchange rates

KARACHI, Mar 30 (APP): The Exchange Rates Committee of State Bank of Pakistan issued the following Exchange Rates Bulletin here on Monday. 

LIBOR FOR CALCULATING INTER ON SPECIAL US DOLLAR 

BONDS VIDE SBP F.E. CIRCULAR NO.42 & 44 OF 21.07.98 & 

04.08.98 RESPECTIVELY. 

  LIBOR VALUE 

6 MONTHS US DOLLAR 1.7944 30-03-2009 

   

CONVERSION RATES FOR 30th MARCH 2009 FOR FOREIGN CURRENCY DEPOSITS, DBC/FCBC, SPECIAL US DOLLAR BONDS & PROFITS THEREON AND FOR FORWARD COVER FOR DEPOSITS (EXCLUDING FE-25 DEPOSITS) 

SBP SETTLEMENT VALUE DATE APRIL 01, 2009. 

  USD 80.4115  

  GBP 115.5272  

  EUR 108.7566  

  JPY 0.8194

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Emirates adds flights to Middle East routes

Emirates has announced increased services to three of its key Middle East gateways including Dammam, Beirut and Tehran.

Starting from May 1, the Dubai carrier will introduce two additional weekly flights to Dammam, three additional weekly flights to Beirut and an extra two weekly flights to Tehran. 

“The Middle East is one of the most active aviation markets in the world and an integral part of Emirates operations,” said Ahmed Khoory, Emirates' senior vice president Commercial Operations - Gulf Middle East and Iran.

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Qtel predicts 2009 profits to rise by up to 11%

Qatar Telecommunications Co (Qtel) said on Monday it expected net profit in 2009 to rise 9-11 percent from the previous year and would invest as much as 7.3 billion riyals ($2.01 billion).

The firm has a capital expenditure programme of between 6.5 billion riyals to 7.3 billion riyals across its global operations, Qtel said in a regulatory filing.

Net income attributable to shareholders could increase in 2009 "in the range of 9 to 11 percent year-on-year," it said, adding that EBIDTA could rise 18-20 percent and revenues in the range of 20-22 percent, it said.

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