Three guilty of bomb conspiracy

Tanvir Hussain, Abdulla Ahmed Ali and Assad Sarwar were found guilty

Three men have been found guilty of a massive terrorist conspiracy to murder involving home-made bombs.

Abdulla Ahmed Ali, Assad Sarwar and Tanvir Hussain’s convictions follow a huge terrorism inquiry, which led to sweeping airport restrictions.

The three, on trial with another five men, had pleaded guilty to plotting to cause an explosion. Seven admitted plotting to cause a public nuisance.

The eighth man, Mohammad Gulzar, was cleared at Woolwich Crown Court.

The group had been accused of plotting to bring down transatlantic airliners with home-made liquid explosives, disguised as soft drinks.

But after more than 50 hours of deliberations, the jury did not find any of the defendants guilty of conspiring to target aircraft.

The jury was also unable to reach verdicts against four of the men in the six-month trial, all of whom were accused of recording martyrdom videos.

‘Inspired by al-Qaeda’

The court heard prosecutors allege that the eight men were planning to carry liquid explosives on to planes at Heathrow, knowing the devices would evade airport security checks.

Police said the plot had been inspired by al-Qaeda in Pakistan – and the August 2006 arrests caused chaos at airports throughout the country.

The court heard that the alleged plot could have caused unprecedented casualties, with a global political impact similar to the 9/11 attacks on the United States.

But in their defense, the seven men who had recorded videos denouncing Western foreign policy said they had only planned to cause a political spectacle and not to kill anyone at all.

The ringleader, Abdulla Ahmed Ali, 27, of Walthamstow, east London, created home-made liquid explosives in a flat which prosecutors said were designed to evade airport security.

He and five of the others – Ibrahim Savant, 27, of Stoke Newington, north London, and, from east London, Umar Islam, 30, of Plaistow, Hussain, 27, of Leyton, and Waheed Zaman, 24, and Arafat Waheed Khan, 27, both of Walthamstow – had recorded what the prosecution alleged were “martyrdom videos” denouncing the West and urging Muslims to fight.

Prosecutors said the bombers would then have completed and detonated the devices during their flights once all the targeted planes had taken off.

‘Political spectacle’

Sarwar was said in court to be the quartermaster of the plot, buying supplies needed to make the bombs.

Prosecutors said that Mr Gulzar, cleared by the jury, had flown into the country to oversee the plot’s final stages – something he vehemently denied during the trial.

The plot came to light after the largest ever surveillance operation involving officers from both MI5, the Metropolitan Police and other forces around the country.

Ali, Sarwar and Hussain told the jury they had wanted to create a political spectacle in protest over foreign policy. It would have included fake suicide videos and devices that would frighten rather than kill the public.

Ali, Sarwar and Hussain, along with Savant, Islam, Khan, and Zaman, also admitted conspiring to cause a public nuisance by making videos threatening bombings.

Pakistan ‘needs help’ on economy

Asif Ali Zardari faces huge challenges if he becomes president

Pakistan needs a “substantial” injection of external funds if it is to improve its worsening economic situation, an IMF official has said.

Mohsin Khan said Pakistan had not yet requested help from the IMF, which some economists have called for, to address a growing balance of payment crisis.

A falling rupee, soaring inflation and dwindling currency reserves are among Pakistan’s mounting economic problems.

Mr Khan said ministers planned to cut borrowing and tap donors for support.

Economic distress

Stabilizing Pakistan’s faltering economy will be one of the main priorities for Asif Ali Zardari, who is widely expected to be elected president following elections this weekend.

Pakistan’s public finances have deteriorated in the past 18 months amid political instability and violence which culminated in the resignation of former President Musharraf last month.

It seems the government is not getting its act together Yang-Myung Hang, Lehman Brothers

The rupee has fallen to a record low against the dollar while currency reserves have shrunk from $16.5bn ten months ago to $9.38bn.

The soaring cost of oil imports has eaten into the country’s reserves while the spiraling rate of inflation, which has risen to 25%, has sparked public anger.

Growth in the economy, which performed strongly in the early years of the Musharraf era, is expected to fall to a six-year low this year.

Pakistan’s fragile coalition government is pursuing a range of options to bolster confidence in the economy, including seeking $1bn in loans from the World Bank and the Asian Development Bank.

It is also in talks with Saudi Arabia to defer payment on an estimated $5.9bn of oil it has purchased.

Security concerns have put off some investors

Some economists believe it is inevitable Pakistan will have to turn to the IMF for help should it find itself struggling to pay its creditors.

Such a move could prove unpopular as any IMF funding would likely require undertakings to slash government borrowing and spending.

On the other hand, such a scenario is unlikely to materialise given the level of US financial and logistical support for Pakistan, a key ally.

Seeking stability

The IMF said it was encouraged that the government was committed to measures to improve its financial position, including privatizing assets and raising funds from the international markets.

“If measures outlined are implemented and sufficient financing is secured quickly,” Mr Khan – director of the IMF’s Middle East and Central Asia Department said, “the authorities could stabilize the economy this year and start to build up reserves.”

Despite attempts by the country’s central bank to reassure foreign investors, concerns remain about the new government’s ability to tackle multiple security and economic challenges.

“It seems the government is not getting its act together, making it difficult to actively address the decline in forex reserves,” said Yang-Myung Hang, a sovereign rating analyst at Lehman Brothers.