SC orders warrants for Hamesh Khan

The Supreme Court has ordered to issue warrants for the arrest of former president Punjab Bank Hamesh Khan and owner of the Haris Steel Mill Sheikh Afzal.
The three-member bench headed by Chief Justice Iftikhar Muhammad Chaudhary while hearing the Haris Steel Mill case also asked the government to use diplomatic channels for bringing these defaulters back home from abroad.
The Supreme Court directed the FIA to issue arrest warrant for Hamesh Khan, in Rs 9 billion Bank of Punjab loan scam. The bench which was also comprised Justice Ch Ijaz Ahmed and Justice Jawwad S Khawaja adjourned the hearing of the case till August 10.
The apex court again directed the three main accused in the case Hamesh Khan, Shaikh Afzal, owner of Haris Steel and his son Haris Afzal to appear before the court and also directed that appearance of the accused was a must as their non-appearance was creating a wrong message.
The Chief Justice directed Director General FIA, Tariq Khosa to use diplomatic channels for the arrest of Hamesh Khan, former President Bank of Punjab.

Bail plea in forex scam case dismissed

KARACHI: The SHC dismissed bail applications of the three directors of M/s Khanani and Kalia International in a money laundering case on Monday.

A division bench comprising Justice Faisal Arab and Justice Safdar Ali Bhutto pronounced the order, which was earlier reserved on the applications of Muhammad Hanif Kalia, Abdul Munaf Kalia and Javed Khanani. Their counsel M Farogh Naseem stated that a challan was submitted in the case tried by the sessions court in Karachi functioning as tribunal under the Foreign Exchange Act. He said that FIA forcibly recorded statements of witnesses which had glaring contradictions, adding that in the light of the sessions court judgement, statements of the witnesses recorded by the prosecuting agency US161 CrPC were not admissible in court of law. Special Prosecutor Shahab Sarki opposed the plea stating that investigations were still in progress and grant of bail at this stage will hamper probe, he added.

The court order stated that at this stage it finds it premature to interfere with the impugned order. In its view, the prosecution has made out a prima facie case against the applications and as such bail is denied to applicants. ppi

Bulls return to Karachi Stocks, KSE 100 Index surges by 203 points

KARACHI: Bearish trend ended at Karachi Stock Exchange (KSE) on Wednesday as fresh buying pushed the benchmark KSE-100 Index up by 203 points to close at 7,075.

The stock market opened upbeat and the major Index remained in the green throughout the session as investors took fresh positions in various stocks.

The trade volume improved to 90 million shares today.

OGDC emerged as today’s volume leader which gained Rs2.58 to close at Rs72.75.

KSE-30 Index surged by 259 points to finish the day at 7,539.

Dubai real estate collapse

Pakistani investors suffer losses

By Mansoor Ahmad

LAHORE: The real estate industry’s collapse in Dubai has caused more damage to the Pakistani elite than the losses they are facing in their industries in Pakistan. Around $72.35 billion worth of property projects are stated to have stalled in Dubai.

Rumours are ripe in Dubai that these projects, undertaken by some renowned real estate developers, have been put to an indefinite hold. There is no official word from the developers about the stoppage of work but those who visit Dubai could see that work on over 50 building projects costing $3.8 million to $70 million has come to a standstill. Out of this, cancellation of work on real estate projects worth $3.275 billion has been confirmed.

Investors from around the globe had booked apartments in these projects by paying advance payments to the developers. They do not know whether they would get back their investment. Most of the capital flight from Pakistan in the recent past landed in Dubai for investment in real estate. The flight of capital during the past 12 months has been admitted even by the Adviser to Prime Minister on Finance, Shaukat Tarin.

There is no real figure about the exact investment by Pakistani entrepreneurs in Dubai’s real estate. The money was sent through back channels and the Federal Investigation Agency estimates a minimum outflow of over $3 billion during the first few months of the current government, which sent the rupee to over Rs83 against the dollar. The recovery of the rupee started after International Monetary Fund’s standby arrangement in November last year.

Dubai has remained a favoured destination for Pakistani investors. However, until a year ago only the richest invested their resources in the most enterprising Gulf state. Last year, even medium-sized entrepreneurs panicked by deteriorating economic conditions in the country rushed to invest in real estate in Dubai which was booming at that time.

The Dubai government then introduced the condition of one apartment for one family. Under this rule, the definition of family was husband, wife and children. Sisters, brothers or other relatives were not permitted to stay in the same apartment. This caused turmoil in the real estate business in Dubai as these apartments were occupied by a large number of workers who shared high rent. Individual workers could not afford to pay for separate apartments and vacated them causing a sharp decline in rents and real estate prices.

The investors are in a fix. Those who got possession of their property find the rent very low but cannot dispose of the property because prices are very low. However, most of them who invested in real estate during the last one year have not even got possession of their property and now construction of most of the projects is on hold with real possibility that these would be abandoned.

The cancelled projects in Dubai include $1.3 billion Nad El Sheeba race course which was being built by Mayden LLC. The $680 million Falcon City of Wonders undertaken by ETA Star has also been scrapped. The Dubai Exhibition City project worth $450 million has also been cancelled. Desert Gate Hotels and Towers being built at an estimated cost of $350 million by Bawadi LLC has been abandoned. Pikington Emirates has announced cancellation of its $200 million Float Glass Factory project. Walter’s Edge (Business Bay), a $125 million project of Damac Properties, has also been called off. The same builder has stopped a $100 million Dolphin Tower project. Nadra Tower (Business Bay), a project of Tanweel, has also been cancelled. It was to be built at an estimated cost of $70 million. (The News)

Depressed Pakistani severs head with electric saw

DUBAI: A Pakistani businessman, depressed by the impact of the economic crisis, killed himself with an electric saw by almost severing his head at his Sharjah home, Al-Ittihad newspaper said on Friday.

The unnamed man, aged 60, was the boss of several construction firms affected by the international economic credit crunch, AFP reported.

His body was found in a pool of blood on Wednesday, with the electric saw still running, the newspaper said, quoting police in Sharjah, one of the seven emirates making up the United Arab Emirates.

His wife told police that her husband had complained recently about the difficulties he faced because of lack of finance needed for company projects and to honour promises to his clients.