DIG survives attack as Taliban spread tentacles to Saidu Sharif

MINGORA: A day after Chief of Army Staff General Ashfaq Pervez Kayani visited troubled valley and issued directions to troops for surge in operation against local Taliban, militants attacked a top police administrator as thousands of people fled to safer places from the troubled areas.
DIG Malakand Shaukat Hayat was presiding a high level meeting at his office situated in Saidu Sharif, district capital, when militants loyal to Maulana Fazlullah unleashed a barrage of rockets on the office.
"Besides DIG Malakand, DPO and SP investigation were also present at the high level meeting in Chinar Inn building when Taliban attacked the venue," police sources told the Statesman.
The building was badly damaged in the attack, however, luckily the top police officials remained unhurt, sources added.
This was the firstever attack in Saidu Sharif, considerably peaceful area till now, sources added.
For about two years there were no attacks in the district capital despite the fact that Taliban had spread all over the district.
After the attack the law enforcement agencies cordoned off the area and launched search operation.
Reportedly 14 suspected militants were arrested and huge cache of arms were recovered from their possession in the operation on Thursday from Chel Shagai area of Saidu Sharif.
Meanwhile five people were killed and 10 others wounded across the valley during shelling by the security forces on the hideouts of suspected militants.
Two men were killed when security forces opened firing on a suspected vehicle in Sperdad, Matta tehsil.Three persons including a woman were killed and 10 others hurt during shelling in Aligrama, Manglawar and Charbagh.
After surge in military operation thousands of people of troubled areas including Qambar, Manglawar and Charbagh have shifted to safer places, locals of these areas said.
"Every day dozens of families shift from the Qambar, Manglawar and Charbagh areas," witnesses said.
Due to curfew people prefer to travel on foot and use mountainous ways to reach their destinations, they added.
Meanwhile, militants targeted two security forces convoys with remote-controlled bombs in Charbagh and Kanju on Thursday, however no causalty was reported.
Sources said remote-controlled bombs hit security forces convoys in Charbagh and Kanju areas of tehsil Kabal.
An unannounced curfew has been imposed in Kanju after the attack.
Security forces pounded militants' hideouts in upper parts of tehsil Matta and Charbagh overnight.

Iceland, facing economic meltdown, tries to help neighbor Britain stay warm

LONDON (AP) — Icelanders are shipping warm woolen clothing to their needy North Atlantic neighbors in Britain.The tiny island nation has severe economic troubles of its own. But after a popular morning radio show in Reykjavik broadcast an item about elderly people in Britain unable to pay heating bills and dying as a result of the cold, they decided to do something about it.A container full of 3,000 items made from unique Icelandic wool should be in Britain by the end of next week.Neil Duncan-Jordan, who speaks for an organization representing the elderly, on Thursday called it a generous act of compassion.Iceland's banks collapsed in the fall sparking a deep economic crisis, with spiraling inflation and unemployment.

Russia, China Slam U.S. Economic System, Blame Capitalism

The premiers of Russia and China slammed the U.S. economic system in speeches Wednesday, holding it responsible for the global economic crisis.Both focused on the role of the U.S. dollar, with China's Premier Wen Jiabao calling for better regulation of major reserve currencies and Russia's Prime Minister Vladimir Putin calling over-reliance on the dollar "dangerous."Speaking on the opening day of the World Economic Forum in Davos, Switzerland, they both urged more international cooperation to escape the downturn. They also talked up the abilities of their own economies to ride out the recession. Wen said he was "confident" China would hit its 8 percent growth target for this year even though that was "a tall order."The Russian and Chinese leaders also called for cooperation with President Barack Obama, but it was a chilly reception for the new administration that reflected growing anger in economies that are now getting hit hard by a financial crisis that began with subprime mortgages sold in the U.S.Putin was characteristically blunt. He called for the development of multiple, regional reserve currencies in addition to the dollar. "Excessive dependence on a single reserve currency is dangerous for the global economy," Putin said.The Russian leader mocked U.S. businessmen who he said had boasted at last year's Davos meeting of the U.S. economy's fundamental strength and "cloudless" prospects. "Today, investment banks, the pride of Wall Street, have virtually ceased to exist," he said.Earlier, Wen called for an expansion of regulatory "coverage of the international financial system, with particular emphasis on strengthening the supervision on major reserve currencies."While Wen never named the U.S., his critique of its failings was as sweeping as Putin's. The financial crisis, he said, was "attributable to inappropriate macroeconomic policies of some economies and their unsustainable model of development characterized by prolonged low savings and high consumption; excessive expansion of financial institutions in blind pursuit of profit" — and other excesses."The entire economic growth system, where one regional center prints money without respite and consumes material wealth, while another regional centre manufactures inexpensive goods … has suffered a major setback," Putin said.Wen's comments came just days after Treasury Secretary Timothy Geithner accused China of manipulating its currency for economic gain. The Chinese premier gently, but firmly warned that if Washington and Beijing chose confrontation, both would be losers.

Militancy makes Torkham-Peshawar Road dangerous

KABUL: Taimoor Khan, a young and educated Pakistani working in a private firm in Kabul, was making no bargain over taxi-fare as he wanted to reach Torkham border as early as possible to be in Peshawar before dusk.For Taimoor and hundreds of other Pakistanis and Afghans either living in Kabul or Peshawar, the Torkham-Peshawar Road is more dangerous these days than the newly built 225 kilometers long road, lying between Kabul and Torkham, owing to the recent incidents of kidnapping and alleged presence of the militants in Khyber Agency.“In the morning, I am ready to pay a maximum of 400 afghanis (Afghan currency) as fare but after 10:00 a.m., I am not ready to take any risk,” the 35-year-old Pakistani told this scribe while travelling in a luxury car from Kabul to Torkham on Thursday. An average fare of motorcar, carrying four commuters from Kabul to Torkham, is between 400 to 450 afghanis but the Afghan drivers are exploiting the situation when the intended passengers reached in or before the noon. A coaster charges 175 afghanis per passenger while Hiace and 8-seaters are charging between 200 to 250 afghanis per passenger from Kabul to Torkham.
The security situation on Peshawar-Torkham Road improved after the security forces carried out operation against kidnappers, criminals and alleged militants in Jamrud tehsil of Khyber Agency some two weeks back.A beeline of light and heavy vehicles at least at daytime shows that movement between Afghanistan and Pakistan has increased significantly but fear and uncertainty of the drivers and passengers are yet to be removed.Owing to newly built road from Kabul to Torkham, the eight-hour long distance had been reduced to 3 and half hour provided that traffic is not blocked for the safe passage of the US-led military convoy on the same road.The whole traffic is jammed when the military vehicles escorted by Afghan police and army are plying the road. Even the car-owners and drivers of passengers’ vehicles are bound to off-road and stop movement of their vehicles until the bunker-typed trucks and military jeeps of the US-led force are passed. The 75-kilometers long Jalalabad-Torkham Road was built by Pakistan as part of Afghanistan’s reconstruction after 9/11 but the removal of painted flag of Pakistan and slogan of ‘Long live Pak-Afghan friendship’ on the top of the toll plaza is definitely a sign of embarrassment for Pakistanis when they enter the road built at the cost of million of dollars.The heavy presence of Afghan police and frequent checking of passengers vehicles from Torkham to Jalalabad and Kabul by the Afghan security officials are also one of the major concerns for Pakistani nationals most of them travelling on legal documents to Afghanistan.
However, one should not hide the excesses and corruption of Pakistan security officials and staff on Torkham border, who are openly receiving bribe from the Afghans while entering Pakistan and in case they have nothing to grease their palms, they are being thrashed and disgraced. A Pakistani taxi-driver, who was hired by this scribe from Torkham to Peshawar, said the border security staff and Pakistan police had been taking bribe from Afghan nationals until they entered Peshawar city via Jamrud check-post. The driver, belonging to Afridi tribe, claimed he witnessed the excesses and corruption of Pakistani officials deputed on Pak-Afghan border and many checkposts on Jamrud checkposts.He fears that Pakistanis might be treated in the same manner in Afghanistan if the Pakistan officials continued their dirty practice.

More NATO Troops To Afghanistan

US soldier with NATO-led International Security Assistance Force (ISAF).
More than 3,000 additional U.S. troops have been deployed to Logar and Wardak provinces, in central east Afghanistan to increase security so that reconstruction can move forward and the Afghan people can improve and expand governance.

These troops serve as part of the 50,000 strong NATO-led International Security Assistance Force in the country. By improving security for the Afghan people in those 2 provinces, U.S. troops will facilitate reconstruction and assist the Afghan government to extend services to the population and provide infrastructure such as roads and power.

Logar and Wardak are key provinces along Afghanistan's major highway routes, and these provinces have been victimized in recent months by criminal and insurgent activity.

The increasing deployments of troops to Afghanistan demonstrate the commitment of the U.S. to work with its NATO Allies to extend the reach of the central government and to further secure the people of Afghanistan.

President Barack Obama has said the U.S. is committed to allocating more resources to winning the war against al-Qaida and the Taliban in Afghanistan. According to U.S. Defense Secretary Robert Gates, the U.S. may send 2 more brigades to Afghanistan by late spring and a third brigade by mid-summer.

Currently, there are more than 60,000 international soldiers, including roughly 33,000 U.S. troops, in Afghanistan. It is the highest number since the Taliban were ousted from power.

Jaap de Hoop Scheffer, NATO Secretary General, said the mission in Afghanistan “is one of the most challenging tasks NATO has ever taken on, but it is a critical contribution to international security."

The goal of NATO's International Security Assistance Force is to help establish the conditions in which Afghanistan can enjoy a representative government and self-sustaining peace and security – after decades of conflict, destruction and poverty.

Holbrooke Plans First Trip as Afghanistan-Pakistan Envoy

The Obama administration's special envoy for Afghanistan and Pakistan, Richard Holbrooke, is preparing for his first foreign trip in his new role. Holbrooke, a former Assistant Secretary of State and United Nations Ambassador, will visit South Asia after attending an international security conference in Germany late next week.

Officials here provided no details of Holbrooke's itinerary but said he will visit Pakistan and Afghanistan, and probably other countries in the region, in a fact-finding trip as the new administration reviews its policy on the Afghan conflict.

Holbrooke, a key figure in peace negotiations that ended the 1990s Balkans conflict, was named to the post last week along with former Senate Majority Leader George Mitchell, who has already begun his first mission as a special envoy for the Israeli-Palestinian conflict.

State Department Acting Spokesman Robert Wood said Holbrooke, like Mitchell in the Middle East, will be on what amounts to a listening tour in South Asia before reporting back to President Obama and Secretary of State Hillary Clinton.

"He wants to go and touch base with leaders in the region, and also to hear what they have to say in terms of what needs to be done to improve the situation in that region," he said.

Wood said he expects Holbrooke to leave Washington in the middle of next week for Europe to attend the three-day Munich Conference on Security Policy opening February 6 before flying on to South Asia.

He said the Munich gathering, also known as the Wehrkunde conference, will be an opportunity for the envoy to discuss the Afghan conflict and related border unrest in Pakistan with U.S. European allies as part of the administration policy review.

President Obama is widely expected to announce a major increase in the 36,000-member U.S. troop commitment to Afghanistan.

But a senior U.S. diplomat said Thursday that Secretary Clinton is convinced that the United States and NATO cannot be succeed there without the proper mix of developmental, political and military action, and ultimately a political solution to the conflict.

Vice President Joe Biden and White House National Security Advisor James Jones will also be attending the Wehrkunde conference, which is expected to be the new administration's first major foray into international politics.

Cuban leader tastes Russian hospitality prior to talks

In 1963 Fidel spent 45 days traveling throughout the USSR. He secretly arrived in Murmansk and checked on Soviet nuclear forces, continued to Lake Baikal and received a brown bear cub as a present and did a little bit of shopping in Tashkent. Pictures of the Comandante on a train were on the front pages of all Soviet newspapers.

Raul often followed his older brother, but this time he is in Russia by himself and now he is the Cuban leader.

Raul Castro will be in Russia until February 4.

On Thursday he decided to stay in accommodations outside of Moscow so he could enjoy the Russian winter. And that is something Russia is ready to provide in abundance.

Castro arrived at the presidential residence wrapped in a warm coat and wearing an ushanka – a traditional Russian hat, which all tourists bring from Moscow. Medvedev met him as an old friend although they have an era in between their ages.

“I am very glad to see you here in Russia and especially in this place which – as I know – you visited many years ago,” Dmitry Medvedev said.

In the 1960s, Nikita Khrushchev hosted Raul and his brother at the same residence. Then, Fidel was feted to a full Russian experience including a Russian hunt and shots of vodka.

“I have been missing Russian forests. The moments when I was frying a lard spit on a twig to eat with rye bread I held dear to my heart. Over 25 years have passed, filled with this feeling of nostalgia. I don’t know if I will be so lucky to have the chance to taste it again, but I am here,” Raul Castro said.

Medvedev got the hint. After talks, they went outside for a dinner by the fire –pickled vegetables, barbecue, rye bread and a samovar – the self-boiler traditionally used in Russia’s tea-drinking – were on the menu.

“This is ‘salo’ or bacon fat - something you should have come for,” President Medvedev said.

After the collapse of the Soviet Union it seemed relations with Cuba collapsed as well. Located right at the U.S. doorstep, Cuba was the largest ally of the USSR and considered a true brother-in-arms. In 2002 Russia shut down its military base in Cuba.

Two months ago, Medvedev landed in Havana along with a contingent of the Russian Navy. Many expect the current talks to focus on civil cooperation, with energy topping the agenda.

Recession lands immigrants in 'Devil's Cave'

PLAINFIELD, New Jersey (CNN) -- Enter the "Devil's Cave" by pulling aside the wooden grate beneath the porch of the abandoned suburban New Jersey home. Crawl inside to see the filthy, mismatched blankets and the garbage and empty soda and alcohol bottles strewn about. Catch your breath against the smell.

In a better time, the 8-by-12-foot cubby hole with the four-foot ceiling might have been the pride of an 8-year-old, a place to share with closest friends, a secret hideout from the neighborhood bullies.

For a group of Latin American men, the "Devil's Cave" was home for several months as they tried to find work in tough economic times. In it, they shared their misfortune and propped up one another's dignity.

"I am a victim of the economic crisis," said Demisio Flores, 44, of El Salvador. "I am not homeless, because if I could get a job I would pay my rent and continue sending money to my family."

Flores, a former member of the Salvadoran military, was supporting a wife, a daughter and three grandchildren in El Salvador with money he earned at two jobs, one at a beverage packing company. But the men he shared the Devil's Cave with -- as many as 10 at some times -- became a new family.

"We were like brothers," he said of those with whom he camped beneath the porch. "Whoever got something was for everybody and everybody was getting something for whoever."

The nation's economic downturn has hit northern New Jersey hard. Unemployment jumped in the state to 7.1 percent in December, according to federal statistics.

Plainfield, a city of just over 47,000 where minorities are the majority -- 62 percent black, 25 percent Hispanic -- was faring even worse. The city's jobless rate was 7.9 percent in November, an increase of 2.8 percentage points from a year earlier.

Downtown Plainfield, walking distance from the space below the porch, shows the strains of recession. Stores try to lure customers with sales, others have shut down already or are preparing to do so.

With New Jersey struggling, the low-wage jobs that sustained the men disappeared.

Flores said of 300 people who worked with him, only 10 kept jobs when one company cut back four months ago. With the jobs gone, so was prosperity.

"My life was happy. I used to get a home with food and heat... pay my rent and send some money to my family in El Salvador," he said.

As work dried up, the men joined other immigrants on Plainfield's street corners, hoping to be chosen for day work. But they said they were lucky to get one day of work a month, not even near enough to cover rent on the small rooms they used to occupy.

Shelter became a dire need. Israel Rodriguez Melendez, a Salvadoran who has spent six years in the U.S., spotted the cubby hole beneath the porch. He and a friend opened the abandoned house above and got blankets, towels and clothes for him and others in the cave.

Other basics were more difficult to come by.

"Some times we went to garbage Dumpsters looking for food," Rodriguez, 42, said.

Deliverance from the Devil's Cave came at the holidays.

"In December, we were planning a Christmas party," said Carmen Salavarrieta, an activist in the Hispanic community. "In the list people that wanted to attend they were putting their names, some of them wrote 'I live in the Devil's Cave,' and I asked myself, 'What is this?' and then they explained to me."

Salavarrieta is a member of El Centro Hispanoamericano, a nonprofit group that provides emergency, immigration and educational services to Latinos in northern New Jersey. Cobbling together support from churches, businesses and other members of the community, she found temporary quarters for the men.

"I came to take them out of the cave and put them in a shelter. They were allowed to stay there only for three days. So we gave them clean clothes, food and they looked like honorable people. But the three days were over and I did not know what to do, I can not let them out in the street again," she said.

She was able to put some of the men in a small apartment she owned. Others found places with friends. Plainfield's mayor even chipped in, Salavarrieta said, footing the bill for some hotel rooms.

The men couldn't be more grateful.

"Now we live like kings, we have hot water, we get to eat and we have a place to sleep and we can get to change our clothes," Rodriguez said.

Flores showed off a new haircut. A friend had shorn the tangled, dirty mat that was part of his days below the porch.

"With this haircut I look nice," he said. "And I am very grateful to the community that is helping us so much."

Taliban to be flushed out of Swat applying full force: Rehman

ACTION AND IRON HAND NEEDED TO KILL THOSE IGNORANT TALIBAN NOT STATEMENTS.Mwaqar
ISLAMABAD: Advisor to Prime Minister for Interior Affairs Rehman Malik schemes will soon be started for rehabilitation of the people affected by the wave of terrorism following 9/11.

Wrapping up the discussion on Swat law and order situation in Senate, Rehman Malik said militants continued to disturb the peace in a number of agencies in tribal areas. The government fought with them and succeeded in restoring peace in these areas.

“Had the action not taken in time, the Taliban could have spilled over to Islamabad,” he asserted.

He pointed out that a total of 451 schools were destroyed in Swat, of which 123 were of girls.

The Interior Advisor said he could give an in camera briefing to the House on who supports the militants in Swat and what their links are.

He advised the extremists to lay down their weapons. “Soon there will be peace in Swat,” he hoped.

Rehman Malik said lawyers long march is not an issue and it will be dealt with when that time comes.

Later, talking to media he said report of investigation into Mumbai attacks will soon be received.

Afghanistan delays presidential election

KABUL-- Afghanistan is postponing its presidential elections until August 20 due to security and logistical concerns, the country's election commission said Thursday.Afghan President Hamid Karzai's five-year term is coming to an end this year.The balloting was originally scheduled for late May, but the independent election commission laid out several reasons for the delay.Security is a factor, the commission said. It also cited a lack of trained staff, incomplete voter registration and the weather.It is difficult to campaign or distribute ballots during the rough winter months in the rugged landscape.The elections are a critical moment for Afghanistan as President Hamid Karzai's five-year term ends. He was elected in December 2004 in largely peaceful polling.But since then, the Taliban militant movement has regrouped, international troop deaths have increased and there has been an increase in terror attacks, mostly in eastern and southern Afghanistan.Afghanistan has already registered 3 million voters and is holding voter drives to register more.
The United States will deploy additional troops in coming months to provide much-needed security in the run-up to the election.The country expects to hold parliamentary elections in 2010.Meanwhile on Wednesday coalition forces fighting in southern Afghanistan killed four militants, the U.S. military said.Coalition soldiers were targeting a Taliban leader in the Zabul province when militants fired on them, according to a military statement. Soldiers returned fire, killing the four militants. Soldiers then searched their compound and confiscated several assault rifles.This operation comes as the U.S. military is contemplating adding three brigades to the war effort in Afghanistan.Defense Secretary Robert Gates said Tuesday that the troop build up could happen by this summer.

UN to organize effort to help stabilize Pakistan

ISLAMABAD, Pakistan (AP) — Pakistan says the United Nations will help organize an international effort to overcome the country's massive security and economic problems.Pakistan faces a dangerous combination of rising Taliban militancy and slowing economic growth, raising concern about the security of its nuclear weapons.
Foreign Minister Shah Mehmood Qureshi said Thursday that the U.N. has agreed to help organize programs to be funded by countries including the United States and Germany.
Donors formed a group called the Friends of Pakistan last year to boost Pakistan's security, economic and social development and energy supplies. Pakistan also took a $7.6 billion bailout last year from the International Monetary Fund.
Qureshi said a donors' conference may take place in Tokyo, but announced no date.

Security forces put on high alert in Peshawar

PESHAWAR: In a bid to deal with any untoward situation, Peshawar police have put forces on high alert besides sealing the city from all around, police sources said.

According to sources, there are security threats in and around Peshawar likewise other parts of country, however police has been put on high alert to take on any unexpected situation.

Troops have been provided with advanced artillery besides increasing nonstop patrolling by forces across city to ensure flawless security measures to public, sources added.

Police said it has deployed special Frontier Corps troops with police as a part of strict security plan.

EXCLUSIVE: UNDER THE TALIBAN’S RULE

[Swat Valley, Pakistan] Taliban militants have responded to a unanimous resolution passed this month by the Pakistan parliament to fight terror with renewed zeal and to protect women’s rights and educational institutions in the violence-hit Swat Valley, by destroying some more schools and summoning 40 politicians to appear before Taliban court or face retribution.

The announcement summoning the politicians made by Maulana Fazlullah, a cleric turned militant commander, live on his illegal FM Radio, sent shockwaves throughout the district. The names he mentioned are senior members of different political parties, mainly the Pashtun Nationalist Awami National Party that currently rules the volatile North West Frontier Province of Pakistan.

The warning came immediately after Ayub Ashari, a provincial minister from Swat, along with two members of the Provincial Assembly, visited Swat last week to boost the morale of the security forces and the people.

Addressing a press conference, the provincial minister pledged that all steps would be taken to establish government control in the region.

Locals say the visit of the provincial officials was a serious blow to Taliban's reign of terror, as after the visit people in Swat, particularly the youth, gained enough courage to openly criticize Taliban for their actions.

"We feel really encouraged to see some senior officials of the provincial government in Swat after a break of seven months,” said Ahmad Ali Khan, a resident of Mingora Swat. “Such moves must continue to bolster people’s morale and to put the militants on the defensive."

Taliban militants under the command of Fazlullah dominate 90 percent of the Swat Valley in northwestern Pakistan, where they publicly administer "Islamic punishments" to government sympathizers, female dancers, school teachers and local influentials.

The approximately 40,000 Pakistan security forces, who have been fighting Fazlullah’s militants since October 2007, have been confronted with a renewed and intensified insurgency that is now spreading to the neighboring districts of Buner, Malakand Agency, Dir and Shangla.

The conflict has displaced half million people from the idyllic valley and resulted in the destruction of more than 180 educational institutions.

Analysts believe the Taliban are a major threat to the integrity of Pakistan and it is the responsibility of all the stakeholders to come together and to devise a comprehensive and pragmatic strategy against terror. Neither the military nor the civilian administration can work in isolation, and there must be more coordination and cooperation between the two to eliminate militancy, they say.

Commenting on the current situation, Khadim Hussain Amir, an Islamabad-based political analyst, says that the Taliban want to perpetuate fear by such actions and it is high time for the political and military leadership to break the chain of terror created, encouraged and perpetuated by the Taliban by killing people and issuing warnings to the local social and political leadership.

“I am viewing this issue in its historical perspective. In 2006, Talibanization in Swat was a localized process. Taliban had no networking with other militant groups in Pakistan tribal areas and they did not have a fully trained and equipped militia,” Amir said.

“In 2007, they not only established contacts with other groups, but they also brought local criminal gangs under the umbrella of the Taliban movement, set up parallel courts and started targeted killings. This created enormous fear among the people. Now they want to silence all voices against them by utilizing this fear factor," Amir added.

After targeted killings and suicide attacks on government buildings and public gatherings that have killed hundreds of people over the last two years, the Taliban in Swat have been confronted with the issue of how to consolidate their control of the area.

At the beginning, to win support from the unprivileged and downtrodden classes of the society, they occupied the fertile lands of local landlords and distributed them among the poor.

In their courts they resolve feuds on an equal basis, and a number of court decisions have gone against the local elite. This process strengthens their position and many unemployed and unskilled youth have joined the Taliban fold.

Once they settled into their bases in different parts of the upper Swat Valley, the Taliban embarked on collecting funds and demanding weapons from the locals and punishing people in public at the slightest suspicion of supporting the government or criticizing their actions.

Meanwhile, security forces have pounded villages and civilian populations, which has resulted in the killing of more than 1,200 civilians.

Recently, ministers in the NWFP government blasted the military for inaction and lack of vision in Swat.

NWFP minister for information, Mian Iftikhar Hussain, told the media in Peshawar that the military had been in charge of all the affairs in Swat since the launch of military operations in 2007 and if the military had failed to eradicate militancy, then the people had no option but to pray to God.

The military has its own take on what is happening in Swat. Military officers say it is the responsibility of the government to place efficient civilian administration in the district and provide relief to the people affected by the conflict.

They believe that peace agreements between the provincial government and Fazlullah have only helped the Taliban to regroup and strengthen their position.

When the military operation was launched, it was claimed by the military commanders that the area would be cleared of all militants within three weeks. The fact is that now the militants are knocking on the doors of Mingora, the administrative capital and main urban center of the Swat district.

Maj.-Gen. Athar Abbas, Pakistan's military spokesman, says that the army was following a new strategy to clear major urban areas and villages of militants.

"The military will not be static, it will not be reactive. It will be reaching out to people to get their support," he told the Pakistan Daily Dawn.

However, Taliban spokesman Muslim Khan is standing firm and says that the military should leave the area immediately and the government should enforce the Islamic legal system in the region to avoid more violence and bloodshed.

"If there is no Shari’a, there will be no peace," he told The Media Line.

Whatever the result of the ongoing conflict in Swat, the reality is that the Swat Valley will never be the same as when thousands of tourists from all over the world would flood the area every summer to enjoy its fascinating natural scenery, snow-capped mountains and centuries-old cultural heritage in the shape of hundreds of Buddhist archeological sites spreading over every part of the valley.

Gates warns against sending too many US forces to Afghanistan

WASHINGTON - Amid preparations for a major US troop build up in Afghanistan, Defence Secretary Robert Gates has warned that the United States cannot become bogged down in the unrealistic goal of turning the country into an economically prosperous nation.
Instead, the US must limit its focus to what it can achieve within five years, he said. The focus should be trying to ensure terrorists don't regain control of the region and use it to coordinate attacks, Gates told the House and Senate armed services committees.He also indicated that military strikes against terrorist targets in Pakistan are likely to continue, despite Islamabad's view that they are unhelpful.
"If we set ourselves the objective of creating some sort of Central Asian Valhallah over there, we will lose because nobody in the world has that kind of time, patience or money to be honest," said Gates, referring to the mythic haven of purity.Gates testified as President Barack Obama considers options for drawing down operations in Iraq and doubling the force size in Afghanistan. Obama planned to meet today with the service chiefs.Gates told lawmakers that the Pentagon could send two more brigades to Afghanistan by late spring and a third by mid-summer in an effort to try to salvage a country besieged by corruption and increasing violence.More troops could be sent after that but a decision would hinge on the Defence Department's ability to build a larger infrastructure, he added. Gates cautioned against sending too many forces because he said it could send the wrong message and Afghan citizens must see their own security forces take control.When asked by Senator Lindsey Graham, a Republican and a frequent visitor to the region, whether he expects casualties to rise with the increase in military operations, Gates responded that it was "likely.""Bottom line is this is going to be tough," Graham said."This is going to be difficult and in many ways harder than Iraq. Do you agree with that?"
"Yes," Gates responded.
Gates indicated that going after terrorists in Pakistan, which shares a border with Afghanistan, would remain part of the equation to improving security in the region.
"Let me just say both President Bush and President Obama have made clear that we will go after al-Qaida wherever al-Qaida is and we will continue to pursue them," Gates said.On Guantanamo Bay, Gates played down suggestions that Obama's order to close the military prison within one year would risk the release of terrorists.He said Congress must remember that the vast majority of detainees can be tried by the United State or sent to other countries for prosecution.There are a relatively small number of detainees that will be difficult to prosecute, and the administration will have to address that problem, he said."I can't imagine a situation in which detainees in Guantanamo considered a danger to the people of the United States would simply be released," he told the House Armed Services Committee.Further, Gates said, the deadline was necessary because otherwise "we would kick that can down the road endlessly".His remarks undercut efforts by some Republicans to cast Obama's decision as misstep in the war on terror.On Iraq, the defence chief said the Pentagon is preparing for Obama various scenarios for winding down the war, including a plan that would cease US involvement in combat within 16 months. Gates said military planners are looking at later dates as well and are prepared to brief Obama on all his options and the their associated risks."I believe the president will have had every opportunity to hear quite directly from his commanders about what they can accomplish and what the attendant risks are under different options," Gates said.Gates said he does not expect the military build-up in Afghanistan to put an additional strain on troops. By the end of September, soldiers deployed for 12 months should be allowed 15 months at home. In the 2010 budget year, that ratio will stretch further, giving troops two years at home for every one year deployed. By 2011, they should see 30 months at home, he said.It was his first hearing since Obama took office and lawmakers were eager to hear details about how the administration plans to turn around the war in Afghanistan."This is a long, hard slog we're in in Afghanistan," said Senator John McCain, borrowing the phrase used frequently by former Defence Secretary Donald H. Rumsfeld to describe the war in Iraq."It is complex," added McCain, the top Republican on the Armed Services panel."It is challenging. And I don't see frankly an Anbar wakening - a game changing event - in Afghanistan, such as we were able to see in Iraq."Security gains made in Iraq's Anbar province are often seen as a turning point in the Iraq war.Having recently undergone an operation to repair a damaged tendon in his left arm, Gates spoke with his arm in a sling, his coat half on.Obama has vowed to shift military resources away from Iraq and move them toward Afghanistan and Pakistan, which he says is the central front in the struggle against terrorism and extremism.In a plan initiated during the Bush administration and endorsed by Obama, the Pentagon is planning to double the 34,000 contingent of US forces in Afghanistan.

Govt to construct Education Complex in Hayatabad

PESHAWAR: Education Department has decided in principle to construct an education complex where latest facilities will be ensured in order to cut unnecessary expenditure.
A decision to this effect was taken in a high-level meeting of the department which was attended by high-ups of the department, project directors and educationists.
It was learnt by the Statesman that eight kanal land has been allocated for the construction of complex where offices of the department in different areas will be shifted to the complex.
During the meeting, the high-ups of the education department have directed the authorities to prepare the feasibility report on which practical work will be started during next financial year.
The education department has also decided to contact the federal government for the release of funds specified by the government for education department.
German Funds: It was learnt that government of Germany had provided Rs928.56 million grant for the promotion of education sector in the country on the condition that if the government failed to utilise the funds properly for the specified purpose till 2016, then the central government will be bound to return it with interest till 2017.
In this regard the provincial education department has decided to contact the federal government for the release of the funds so as to take steps on emergency basis to increase the literacy ratio in the province.
Meanwhile, European Community, NWFP, has signed an agreement with the education department regarding provision of 20 million euros for betterment in education field in the province.
The accord was signed by Economic Officer Division and European Community and according to the agreement; European Community will provide 18 million euros directly for uplift schemes in the education department.
Out of this 20 million euros, 1.6 million euros for technical assistance while .4 million euros will be spent on audit and monitoring of the projects.
The scheme is aimed at to give proper attention to the education field and provide educational environment to out of school children.
Paperwork have been started on the project and the project will be implemented during next fiscal year.

Putin’s View: ‘We’re All in the Same Boat’

Prime Minister Vladimir V. Putin of Russia in a session at the World Economic Forum on Wednesday. Photo.
Making his first appearance as Russian leader before the annual gathering of business and political leaders in Davos, Switzerland, Prime Minister Vladimir V. Putin struck a conciliatory tone toward the West. He explicitly wished the new administration of President Obama well, and urged cooperation on energy security, the economy and even disarmament.

Mr. Putin used a 30-minute speech before a packed auditorium on Wednesday to paint Russia as a reliable partner in energy, trade and politics amid the widening global economic crisis.

“We can’t afford being isolationist or economically selfish,” Mr. Putin said. Describing the world financial crisis as a “perfect storm,” he added: “We are all in the same boat.”

The financial crisis has dealt a blow to the Russian swagger of recent years. When sky-high oil prices helped fill state coffers and return-hungry Western investors offered cheap loans, the Kremlin could more easily strike a proud, anti-Western tone and emphasize its new-found power after a decade of weakness following the Soviet collapse.

Mr. Putin’s speech, the official opening address of this year’s World Economic Forum, was eagerly awaited by those waiting to gauge whether the crisis would prompt Russia to turn further away from the West or open the door to a more cooperative relationship.

As recently as December, Mr. Putin still had harsh words for the United States. “The crisis began in the United States, whose financial and economic policies led to the crisis that infected the economies of practically all major countries of the world,” he said at the time, adding that the impact of the crisis on Russia would be “minimal.”

But he struck a different note on Wednesday, as he often has for Western audiences. Mr. Putin said he would not dwell on who was responsible for the crisis and talked instead about “mutual interests” and “mutual dependencies.”

“We hope that our partners in Europe, Asia and America — and I’m also addressing the new administration, we wish them well — I hope they will be willing to cooperate constructively,” he said.

Cuba's Raul Castro arrives in Moscow for talks

MOSCOW- President Raul Castro on Wednesday began the first visit to Russia by a Cuban leader since the end of the Cold War, the latest sign of reviving ties between the two former close allies.

Castro stepped off a jet into Moscow's freezing weather to be greeted by a military band and a salute.

"From this visit, we hope to strengthen and consolidate what we have already achieved together, and it is necessary to make one more step in this direction," Castro said in an interview shown on Russia's state-run Vesti 24 television channel.

Russian Foreign Minister Sergei Lavrov said Russia and Cuba plan to sign a number of agreements. These would promote cooperation in trade, economic, financial, investment, cultural and humanitarian areas, he said on the ministry's Web site.

Lavrov said Russia's interest in Cuba is economic, underlining its changing role in the island from an ideological partner to one of trade.

Raul, the younger brother of ailing former Cuban leader Fidel Castro, was expected to meet President Dmitry Medvedev at his country residence just outside Moscow on Thursday. The Kremlin chief visited Havana last November.

The two leaders would also sign several agreements on oil cooperation, Russian news agency Prime Tass reported.

Russian oil firms want to drill offshore in the Caribbean and the military has talked about cooperation with Havana on air defense systems.

However, the Kremlin is keen that future relations should be on a free-market basis -- meaning that the generous soft loans and grants given by Russia to its Caribbean ally during communist times will not be on offer now.

The last time a Cuban leader visited Russia was Fidel Castro's trip to Moscow in 1986 for a Communist Party congress.

Moscow was Communist-run Cuba's main benefactor during the Cold War and recent state visits by both sides suggest they want to rekindle something of their alliance, which subsided after the 1991 collapse of the Soviet Union.

After a long period of neglect, the Kremlin took a new interest in Latin America last year. Medvedev visited Brazil, Venezuela, Peru and Cuba and Moscow has developed a strong alliance with U.S. foe President Hugo Chavez of Venezuela.

Pakistan Responds to Signal That U.S. Will Continue Drone Attacks

Pakistan responded Wednesday to Defense Secretary Robert Gates comments that the U.S. military will continue to attack suspected Al Qaeda strongholds in Pakistan, saying the country wants close cooperation with the U.S. on the operational level to deal with militants.

The goal is to establish cooperation with the United States to bring peace and stability to the region while eliminating extremism, Pakistan's spokesperson at the Ministry of Foreign Affairs told FOX News.

Pakistan claims to have done more than any other country, and says it looks forward to working closely with the U.S. administration in the fight against terrorism.

Gates, in testimony Tuesday before the Senate Armed Services Committee, addressed the subject after Pakistan urged the Obama administration over the weekend to halt such attacks. Two U.S. military strikes on targets inside Pakistan reportedly killed at least 20 people on Friday, and the Pakistani government said civilians were among those killed.

"I think that the strikes that are being undertaken are — well, let me just say both President Bush and President Obama have made clear that we will go after Al Qaeda wherever Al Qaeda is, and we will continue to pursue them," Gates said.

Pakistan army 'will retake Swat'

Pakistan's army chief has pledged to restore government control of the Swat valley, which is currently controlled by Taleban militants.

Gen Ashfaq Pervez Kayani made the remarks to troops during a visit to the former tourist resort in the country's north-west near the Afghan border.

Troops were deployed in Swat after an Islamic insurgency began in 2007.

Hundreds have died in battles between troops and militants seeking to impose their austere version of Islamic law.

The BBC's M Ilyas Khan says Gen Kayani's remarks come at a time when military circles are talking of a new phase in operations against the militants.

The authorities are under severe pressure over the deteriorating security situation in Swat.

Killings

Gen Kayani "reiterated that the army had both the will and resolve to establish the writ of the government" in Swat, a military statement said.

"No amount of sacrifice will deter us to do our duty," Gen Kayani said, according to the statement.

The general also "lauded the morale" of soldiers in Swat, a mountainous region of North West Frontier Province (NWFP) which until two years ago was a popular tourist area.

Pakistani President Asif Ali Zardari also pledged on Wednesday to curb militancy in the valley and stop the Taleban from establishing their own courts, a government spokesman said.

Gen Kayani's comments coincided with an army statement which said that security forces killed seven militants and wounded 11 others in an operation in two villages there.

There was no independent confirmation of the casualty figures or if those killed were militants. Civilians deaths are frequently reported in the violence.

Further evidence of the deteriorating situation in Swat came when security forces found eight bullet-ridden bodies in the valley on Wednesday.

The bodies were found in the town of Mingora.

The militants are led by a radical local cleric, Maulana Fazlullah, who is linked to the Taleban.

His men are accused of killing dozens of state employees and government supporters in addition to destroying nearly 200 schools - most of them for girls.

The Taleban oppose education for girls, which they say is un-Islamic.

Children in Swat face bleak future

Many families in Swat district, in Pakistan's embattled north-west, are packing up and leaving after Islamist militants began attacking schools, reports the BBC's M Ilyas Khan, who is travelling in the region.Can the security forces establish the government's rule in Swat and protect schools against attacks by Islamist militants?
Will the militants revoke the ban they recently announced on girls' education before the winter vacations are over?For parents of schoolchildren who can afford to leave Swat and settle elsewhere, the answer is obvious. Leave.For those who have to remain, there are no easy answers.People are generally sceptical about the ability of the security forces to push the insurgents into a corner before 1 March, when school vacations end."Taleban are everywhere, but the army is only behind barricades," says one resident who, like most people in Swat these days, does not want to be named. "It can only make things worse."
Morale
More than a week ago, a Taleban deadline to ban female education came into force. The militants also bombed a number of schools, including those of boys, casting a shadow over the future of education here.The army is now moving into the remaining school buildings to protect them against possible Taleban attacks.But parents fear that schools where the army is deployed will attract more deadly attacks by the militants, endangering the lives of their children.Swat is paralysed by a two-year-long armed insurgency by Taleban militants, who want to impose their brand of Islamic law in the district.The government moved in thousands of troops in the last quarter of 2007 to try to contain the insurgency.During this time, the militants have been able to put the security forces on the defensive by conducting a spate of suicide attacks on checkpoints, convoys and camps.The forces have also provoked anger among people by causing "collateral damage" as they struggle to hit militants who mix freely with the civilian population.This appears to have hurt the morale of the troops and has boosted that of the militants.The militants now control most areas outside the main town of Mingora and have a strong intelligence network within it.Destroying the government's education infrastructure is one aspect of the Taleban's campaign to uproot the existing system and replace it with their own."In about 20 months or so, we have had 187 of our schools bombed out, of which 121 are girls' schools," says Sher Afzal Khan, the district head of the education department.Another 86 schools cannot be used because they are camps for the army or the Taleban, or they are in combat zones where children and staff cannot go, he says.
"Nearly 60,000 students have been affected," says Mr Khan.
Institutions of higher learning are no exception.
"Three months ago, the Taleban banned male medical students from attending practical lessons in the gynaecology ward and the labour room," says a professor at Mingora's Swat Medical College.Soon afterwards, the Taleban started sending representatives to keep a watch at the college hospital to ensure the ban was not being violated.
"We had to shift gynaecology classes to Mardan (another district in the north-west). There is now a proposal to shift the entire college to Mardan, along with its staff and equipment," the professor says.
Moving away
Khpal Kor (Our Home) is a local boarding school that made its name by offering education to orphaned children.The school's revenue system was designed in such a way that fees raised from every five children of affluent families, called the "revenue students", would pay for one orphaned child's education.In addition, Khpal Kor ran a number of commercial ventures such as a tent service and an IT college to raise salaries for its teaching, janitorial and kitchen staff, all of them well-paid by local standards."The tent service closed down due to absence of tourists, and almost all the students of the IT college have left as their families moved to other cities," says Imran Khan, Khpal Kor's coordination officer."We also have information that more than half of our 500 "revenue students" are unlikely to return to school after the vacations as their families, too, have moved away. This will put us under pressure to provide for more than 100 orphans."But many parents are still here and their children face an uncertain future."I have nothing but hope," says a college teacher who has a son and two daughters that go to school."I hope the army will establish the government's writ in Swat in a month's time. If not, I hope the Taleban will revoke their ban on education."

MAUREE SNOW SCENE

Controversy over Bilour’s remarks continues

PESHAWAR: Senior NWFP Minister Bashir Ahmad Bilour has been caught in a controversy following his remarks at a function in Abbottabad but his supporters insist he (Bilour) never made the statement attributed to him.

Sections of the press, particularly the newspapers published from Hazara, had reported him as saying that those opposed to the renaming of the NWFP as ‘Pakhtunkhwa’ should leave the province and shift to Punjab.

Reporters, who attended the function that was held in connection with the death anniversaries of freedom fighter Khan Abdul Ghaffar Khan, or Bacha Khan, and his son and late ANP head Khan Abdul Wali Khan, at Jalal Baba Auditorium in Abbottabad, maintained that Bashir Bilour did utter the words.

However, the supporters of Bilour and officials in the ANP-led provincial government are adamant that he never spoke those words. They stressed that Bilour at no stage asked the people of Hazara to accept ‘Pakhtunkhwa’ as the new name of the NWFP or move to Punjab.

Some reports said two ANP office-bearers from Abbottabad in their emotional speeches made comments to this effect and asked all the people in the NWFP who opposed the name ‘Pakhtunkhwa’ to migrate to Punjab. They claimed Bilour and the two other provincial ministers, Qazi Mohammad Asad and Nimroz Khan, did not make any such comment.

It was learnt that Bilour did do some tough talking while referring to the track record of most politicians from Hazara. He argued that a number of such politicians changed loyalties and joined the government. He felt some of the lawmakers from Hazara would join the ANP-led provincial government if offered berths in the cabinet.

The District Council Abbottabad and some PML-N politicians came down hard on Bilour and condemned the comment attributed to him. They pledged to oppose the renaming of the NWFP. District Council Abbottabad while condemning Bashir Bilour also passed a resolution.

Though the office of Bilour subsequently issued a clarification and denied reports that he had made the said comment, the controversy has refused to go away. Rather, it has intensified with more people joining in and expressed their views on the subject.

Peshawar traders to extend protest against lawlessness

PESHAWAR: Traders have announced expansion of their ongoing protest drive against poor law and order, particularly growing incidents of kidnapping for ransom, and have asked the provincial government to either rein in criminals or stand down.

“We are going to spread our protest campaign to the entire province against the current ugly conditions for which a line of action would be evolved in the first week of February,” Tajir Ittehad’s provincial President Haleem Jan told The News on Monday.

Haleem Jan said later traders of the entire country would be taken on board. He said the Tajir Ittehad, a conglomeration of five trade unions of Peshawar, had already set up protest camps at Chowk Yadgar, University Road and Peshawar Cantonment against government’s inability to control criminal activities. Similarly, he said a protest camp would be set up at Qissa Khwani Bazaar on Tuesday.

He said banners with black background had been displayed across the city with slogans of ‘quit power’ for government’s failure to protect the people. “The protest campaign has been launched to condemn increasing incidents of kidnapping. The drive has no political dimension. We don’t do politics rather are concerned about our businesses,” Haleem declared.

In the prevailing circumstances, he added, poor law and order had seriously affected business environment in the province besides creating a sense of fear among people. The traders’ alliance leader went on to say a large number of businessmen were seriously contemplating migrating to other places in the country or abroad, adding shifting of investment from the NWFP would have an adverse impact on the economy of the region.

Because of poor law and order, he said, the Peshawar market had witnessed a sharp fall of up to 70 per cent in profit margin of various businesses. “Kidnapping for ransom has made life miserable for the people but the Chief Minister’s House, Governor’s House and homes of security forces personnel are being raised only to protect them.” In such a situation, he said, investment in the province was out of question, adding the federal and provincial governments should at least curb kidnapping incidents.

19 people kidnapped for ransom from Peshawar this month

NO LAW???

PESHAWAR: At least 19 people have been kidnapped from the provincial metropolis since the beginning of the current month, Daily Times learnt on Tuesday.

The increasing cases of kidnapping for ransom and other street crimes are a blow to tall claims of the provincial government and security agencies to protect lives and property of the people.

According to official figures, at least 19 people were kidnapped from the provincial metropolis, while 18 cases of kidnapping for ransom were registered in different police stations of the city.

The figures show that at least 59 accused were involved in these kidnappings and nine of them were arrested, while around 50 are still at large. Eight kidnapped persons were recovered, while 11 are still in the custody of kidnappers.

Official sources told Daily Times that increasing cases of kidnapping for ransom from the city and ongoing militancy has deteriorated the security situation in the provincial metropolis.

The officials said that ongoing militancy has facilitated kidnappers and many notorious criminals have joined the ranks of militants and are disturbing the security situation of the city.

The officials further said that the police was showing all good picture, while in reality the situation is deteriorating with each passing day.

The officials said that lack of cooperation among intelligence agencies and security organisations, weak firepower of law enforcement agencies and arrival of thousands of internally displaced persons (IDPs) from other parts of the province and tribal areas has also adversely affected the security situation.

On December 28, 2008, an operation code-named Daraghlam (Arriving) was launched in the adjacent Khyber Agency to clear Jamrud from militants and kidnappers and also to ensure safety of NATO supplies, but the kidnappings are going on with the same frequency that casts a shadow over the utility of the operation.

The city traders have hung black banners in all major bazaars and markets, demanding of the provincial government to resign in the face of growing cases of kidnapping for ransom, of which the trader community has been a prime target over the past few months. At the same time, street crimes are also on the rise as the police is engaged in fighting militancy.

Sources in police department said that around 380 incidents of street crimes including dacoities, snatching of motorcycles, cash, cellular phones and other incidents occurred during the ongoing month.

Although Peshawar city had been politically volatile due to prevailing situation in Afghanistan and tribal areas, but was considered to be very safe as compared to other cities even two years back. However, militancy not only sowed the seeds of fear in the minds of citizens, but also unleashed the forces of lawlessness in the provincial capital, other parts of the province and FATA.

Peshawar police has got a new chief, Safwat Ghayyur, known to be very tough and delivering cop, and police also has a new setup including SSP Operations and SPs of Rural, Cantonment and City Circles.

One could only hope for improvement in the situation in the coming days with these changes.

Pakistan extends curfew as army battles Taliban

PESHAWAR, Pakistan — Pakistani authorities on Tuesday extended a curfew in the troubled northwestern Swat valley to the area's main city Mingora, as troops fought militants on its outskirts, officials said.
Pakistan's military is battling extremists loyal to radical cleric Maulana Fazlullah waging a violent campaign to introduce Islamic Sharia law in a valley that once attracted Western holidaymakers to its snow-capped peaks.
"A curfew has been imposed in the main town of Mingora until further notice," military spokesman Major Nasir Khan told AFP.
"People are requested to remain in their houses. We will take extra measures and security forces will patrol the city. Any movement is prohibited during the curfew," said Khan, which he said came into effect at 9:00 pm (1600 GMT).
A security official said that army forces and militants fought a pitched gunbattle in the Kambar area, on the outskirts of Mingora, early Tuesday.
No details of casualties were immediately available.
An indefinite curfew was first imposed on Sunday, affecting a string of named hamlets that are known troublespots.
The move came after Fazlullah -- in a speech on his personal radio station -- released the names of 40 people, including provincial ministers, MPs and local government officials "wanted" by the Taliban.
One local official said Taliban militants destroyed another two boys' schools in the Kabal area of Swat on Tuesday.
"The buildings of the schools were destroyed," an official from the local education department said on condition of anonymity.
Education ministry official Sher Afzal told AFP last week that Fazlullah followers had blown up 173 schools, 105 of them for girls, since security forces launched an operation to crack down on militants in the region in 2007.
A security official said army forces pounded militant hideouts on Tuesday in Matta, about 15 kilometres (eight miles) northwest of Mingora.
Swat, once a popular destination for Pakistani and foreign holidaymakers, has descended into chaos in recent months, with pitched battles between militants and security forces.

Obama reaches out to Muslims.

U.S. President Barack Obama talks to Al-Arabiya about his desire to improve ties with Muslim world.

Obama urges action after job losses

Unemployment is continuing to climb after the US lost 2.6 million jobs in 2008 [EPA]
Barack Obama, the US president, has called for urgent action on the US economy following the announcement that tens of thousands of jobs were being cut at four major US firms.Obama cited the job losses on Monday as the reason the US could not afford "distractions" or "delays" to an $825bn economic stimulus plan currently being debated in US congress.US construction equipment giant Caterpillar earlier said it was to cut about 20,000 jobs, after its profits slumped by 32 per cent.The move came as Sprint Nextel, the US's third largest wireless provider, said it was cutting about 8,000 jobs, or around 14 per cent of its workforce.Home Depot, a US retailer of home appliances, also announced it was to cut 7,000 jobs and close its smaller Expo chain as the slumping US economy continues to hit the nation's housing market.General Motors, the struggling US car-maker, also said it was cutting a further 2,000 jobs.
The job losses at Caterpillar, which amount to about 18 per cent of the firm's entire workforce, will be accompanied by freezes in overtime and salaries, the firm said.
The Illinois-based company blamed the losses on a fall in demand and declining commodity prices along with current poor market conditions.
The job losses come as the US senate confirmed Timothy Geithner, former chief of the New York Federal Reserve Bank, as the new US treasury secretary.
Geithner, who was sworn in to the post on Monday, will have one of the toughest jobs in the new Obama administration as it tries to restore confidence in the US economy.

Profits tumble
The job cuts were happening because US firms are currently in the middle of reporting fourth quarter results and many US firms are reporting profits sharply down or even financial losses.


Caterpillar blames the job cuts on falling
demand for construction equipment [Reuters]
"[This] is leading firms' chief financial officers to argue that they cannot keep the same numbers of staff," he said.
"This is a country where social provision is limited and a job means a lot," he added.

Obama has said he hopes that the stimulus plan, can be implemented by mid-February, but some Republicans have argued that the administration's stimulus package is too large and does not include new tax cuts.

Although Republicans do not have enough votes in the House of Representatives or the US senate to defeat the bill, they could still stall it for several weeks.

The House is expected to vote on the package bill on Wednesday.

Obama said on Monday the government owes it to "every American'' to act with a
"sense of urgency'' and "common purpose" on the bill.

The US president who has said he hopes to create 2.5 million green jobs, also announced action to allow states to further curb fuel emssions.

Obama said he wanted to combine the plans for greater fuel efficiency with new technology to help create jobs.

Falling demand


Geithner has been confirmed as treasury secretary [GALLO/GETTY]
Caterpillar, which employs more than 112,000 people worldwide, has expanded dramatically in recent years, driven partly by booming construction demand in developing countries, particularly in Asia.

However, demand for its heavy equipment has plunged with the weakening global economy.

In addition to the job cuts, the firm said it planned to slash executive compensation by up to 50 per cent and offer buyouts to US-based employees.

Investors are hoping that plans by Obama to implement a US-wide infrastructure spending programme will help boost demand for road-building and other equipment made by Caterpillar.

However, analysts say the plan may have little impact on equipment demand in the short term and that the proposed figures would not be enough given steep declines in the US construction market.

A total of 2.6 million US jobs were lost in 2008, the largest slump in employment since a 2.75 million drop in 1945, the US department of labour said earlier this month.

Job cuts mount; Pfizer, Barclays reignite optimism

NEW YORK - A tidal wave of layoffs washed across the world on Monday, sending tens of thousands of workers into joblessness as the pain of the global recession worsened.

Amid reports of tumbling corporate profits, dire outlooks and a lowered global growth forecast from the International Monetary Fund, companies in Europe and the United States announced they would cut employees in a dramatic effort to reduce costs and keep their businesses afloat.

Despite the corporate gloom, markets rallied on some of Monday's other news: No. 1 drugmaker Pfizer Inc said it would buy rival Wyeth for $68 billion, Barclays said it had no need to raise capital and sales of existing U.S. homes unexpectedly rose 6.5 percent.

"In the midst of a global recession, here is Pfizer, hopefully spending their dollars wisely," said Andre Bakhos, president of Princeton Financial Group in New Brunswick, New Jersey. "It adds a little confidence that all is not lost."

But the darkening view was reinforced by a dismal revised outlook from the IMF, which slashed its forecast for 2009 global growth to 0.5 percent from 2.2 percent in its last economic outlook in November, a source told Reuters.

The IMF saw the U.S. economy contracting 1.6 percent in 2009, with the euro zone shrinking 2 percent and Japan contracting 2.6 percent, according to the source. The IMF pegged 2010 world growth at 3 percent.

The tsunami of layoff announcements, affecting more than 70,000 workers, started in Europe, with electronics maker Philips reporting 6,000 job cuts as it posted a bigger-than-expected 1.5 billion euro ($1.9 billion) loss, its first quarterly loss since 2003.

ING cut 7,000 of its 130,000 jobs, replaced its CEO and got guarantees from the Dutch government as other European banks sought to reassure investors they are coming to grips with the turmoil in financial markets.

Corus, Europe's second-largest steelmaker, said 3,500 jobs would go worldwide, including 2,500 in Britain, as the company, owned by India's Tata Steel, sought to boost operating profit.

CATERPILLAR, SPRINT, HOME DEPOT

In the United States, Caterpillar, the world's largest maker of heavy equipment, said it would eliminate nearly 20,000 jobs, reported a 32 percent drop in profit and forecast the weakest year for business since the end of World War Two.

Sprint Nextel Corp the No. 3 U.S. mobile service provider, said it will cut up to 8,000 jobs, or about 14 percent of its workforce. [ID:nN26368948] Retailer Home Depot Inc said it will cut 7,000 jobs, or about 2 percent of its workforce.

Chip maker Texas Instruments said it was cutting 12 percent of its workforce, including 1,800 layoffs and 1,600 voluntary departures [ID:nN2638388], and car maker General Motors Corp said it would lay off 2,000 more workers at two assembly plants.

On the flip side of Pfizer's deal for Wyeth, Pfizer said it will cut 15 percent of the companies' combined 130,000 workers -- about 19,500 jobs.

Major U.S. indexes rose. The Dow Jones Industrial Average gained 0.5 percent and the broader S&P 500 was up 0.6 percent. Bond prices fell as the increase in existing-home sales raised questions whether the housing market was as weak as thought. European stocks rose, with Europe's FTSE 300 index closing 3.2 percent higher.

Gold climbed above $900 an ounce, the highest in more than three months.

Governments around the world focused on stimulus packages to grapple with the financial crisis.

U.S. President Barack Obama's spokesman, Robert Gibbs, told reporters the president "would do everything in his power to ensure the financial system does not collapse," after a weekend in which Republicans voiced objections to Obama's stimulus proposals.

Obama's choice to help lead the government effort, Treasury Secretary-designate Timothy Geithner, won Senate approval after a delay due to qualms over his underpayment, since rectified, of some personal taxes earlier this decade.

Geithner is expected to be sworn in quickly and within weeks will likely unveil reforms to the $700 billion financial bailout program to provide more support for housing and credit markets and possibly to absorb troubled assets from banks.

Canada will spend C$7 billion ($5.7 billion) on infrastructure over the next two years, a government minister said, and officials said Canada will run budget deficits totaling C$64 billion over the next two years.

"We not only create jobs and economic activity now, we also improve our economic competitiveness for decades to come," said Minister of Transport John Baird.

The Norwegian government presented a $2.87 billion fiscal stimulus package to prevent a surge in unemployment.

In Iceland, however, the government of Prime Minister Geir Haarde collapsed under the pressures of the financial crisis.

Banks have borne the brunt of the credit crisis, which was sparked by mass defaults on U.S. home loans. The sector has seen a wave of consolidation as leading banks around the world have collapsed or been taken over.

But shares in Britain's Barclays leaped 73 percent after it said its projected 2008 pretax profit of more than 5.3 billion pounds ($7.3 billion) would include significant writedowns of 8 billion pounds and that the bank had made a good start to 2009.