The Londoner

NEW DELHI—The chief executive of India's largest private oil producer slammed the government for proposing an 80% increase in the company's taxes, a measure that could stoke foreign investors' concerns about India's business environment. Rahul Dhir, CEO of Cairn India Ltd., which is majority-owned by the U.K.'s   Vedanta Resources   VED.LN   +0.23%   PLC, said the proposed increase in the "cess" the company pays on each ton of oil it produces would cost it $2.5 billion by 2020 and could discourage it from pursuing a $6 billion expansion plan. "This came out of nowhere," Mr. Dhir said in an interview Tuesday. "The government has been desperately trying to attract investment in the oil-and-gas sector and it hasn't worked. This will just create further disincentives to invest."  Read the full story here. 

QUETTA: Balochistan government is planning to purchase 1,000 megawatts (MW) electricity from Iran to overcome the power shortage in Balochistan besides ensuring uninterrupted power supply to tube-wells in agriculture sector of the province. Talking to the visiting under-training officers at Civil Service Academy Lahore here on Monday, Balochistan Chief Secretary Ahmed Baksh Lehri said work on solar energy project is also in progress, which on completion would generate additional power for the province. He said Gwadar deep-water port is also being made operational besides organising the mines and mineral sector of the province on modern lines. Referring to irrigation sector schemes, he said work on Kachi canal, small and medium dams projects is also in progress which on completion would bring over one million acres of barren land under cultivation across the province.  Read the full story here. 

MUZAFFARABAD:  From mosques, to homes and streets, Pakistanis are increasingly seeing the light and realising that year-round sun may be a cheap if partial answer to an enormous energy crisis. “It’s the best thing I bought this winter,” says Sardar Azam, a former civil servant retired to a river-side home in Kashmir, showing off his water-heating solar geyser installed on the terrace. “The biggest advantage is that you spend money once and it runs on sunlight which is free,” Azam added. The country needs to produce 16,000 megawatts of electricity a day but only manages 13,000 megawatts, according to the Pakistan Electric Power Company. The shortfall means that millions endure electricity cuts for up to 16 hours a day, leaving them freezing in winter and sweltering in summer while hitting industry hard, exacerbating a slow-burn recession. Read the full story here. 

Firdous Ashiq Awan reiterated that the project provides the sole window of opportunity for his country to solve its energy shortage.  The pipeline project to transfer Iran's gas to Pakistan is essential to resolve Islamabad's energy crisis and it will play a leading role in developing industries and creating jobs for generations to come, Awan said on Monday.  She added that Pakistan would make utmost efforts to implement the vital project and resist against any foreign pressure regarding the issue.  The minister emphasized that Islamabad has expressed its full support for the implementation of the IP project.  The 2700-kilometer long pipeline was to supply gas for Pakistan and India which are suffering a lack of energy sources, but India has evaded talks. Last year Iran and Pakistan declared they would finalize the agreement bilaterally if India continued to be absent in the meetings.  Read the full story here. 

The past year has seen the number of CIA drone strikes in Pakistan plummet. In the first three months of 2012, there were 11, compared with 21 in the first three months of 2011 and a record 28 in the first quarter of 2010. On Monday, Pakistan's parliament started to debate whether the United States should be made to stop CIA drone strikes altogether in the Pakistani border regions with Afghanistan and also whether the U.S. should apologize for NATO airstrikes that killed some two dozen Pakistani soldiers late last year. Read the full story here.  

Italian Prime Minister Mario Monti has walked away from negotiations with Italy's labor unions and announced that he is going to move ahead with reforming the country's notorious employment laws—with or without union consent. If Rome is spared the fate that recently befell Athens, mark this as the week the turnaround began. Italy's labor laws are some of the most restrictive in the Western world. The totemic Article 18 all but bans companies with more than 15 employees from involuntarily dismissing workers, regardless of the severance offered. Mr. Monti has proposed replacing this job-for-life scheme with a generous system of guaranteed severance when employees are dismissed for "economic reasons." In most of the free world, this would count as a useful, albeit mild, reform. Among other weaknesses, the new law would not affect a worker's right to challenge his dismissal in court when fired for disciplinary reasons—an unreciprocated gift to the unions.

The thaw in cross-Strait relations during Taiwanese President Ma Ying-jeou’s first term was unprecedented – but the honeymoon period may soon be over. The rapid expansion of ties between the Chinese Nationalist Party (KMT) and Chinese Communist Party (CCP) governments were established through seven rounds of bilateral talks, 16 agreements, and one “consensus” on cross-Strait investments. Concomitantly, people-to-people exchanges have increased exponentially as the two sides negotiate terms of engagement. But while the KMT and CCP agree upon the need to institutionalize cross-Strait ties on the basis of the so-called “ 1992 Consensus ,” other sensitive political issues were shelved in the interim. Now, despite the bilateral public displays of camaraderie by political leaders, who tout the positive-positive gains of engagement, the deeply rooted political distrust that Presidents Ma and Hu Jintao brushed aside during the past four years is quickly coming to the fore. Read the full