A bearish trend was witnessed on the Karachi share market on Wednesday due to selling by both local and foreign investors and the benchmark KSE-100 index declined by 232.6 points to close at 14,081.07 points. The foreign investors remained net sellers and withdrew 1.67 million dollars from the local equity market.

The Bank of England on Wednesday cut its forecast for British growth and warned that the eurozone debt crisis was the biggest threat to recovery, even if a credible solution is found. Gross domestic product (GDP) was predicted to grow by just under 1.0 percent this year, down from the central bank's previous forecast of just over 1.0 percent, the Bank of England (BoE) said in a quarterly report.

The power shortfall on Wednesday surged to 6000MW triggering power breakdowns in the country and leading to withdrawal of exemption from load shedding to the textile industry. Pakistan Electric Power Company (Pepco) sources said relatively less Irsa indent and dead level at Tarbela Dam were the main cause of the power shortfall. They claimed the shortfall was not more than 4000MW.

The trade volume between Pakistan and India, which is currently around $2.5 billion, may cross $10 billion in the next three to four years, trade circles here estimate. By comparison, the two-way trade between India and China is valued at more than $60 billion annually.

MSCI, a leading provider of investment decision support tool world-wide, announced the results of the May 2012 semi-annual index review for MSCI Equity Indices with no major change for Pakistan. Within frontier markets index that consists of 25 frontier markets, no addition or deletion was conducted.

Rejecting the review application of Tauqir Sadiq against his removal from the Oil and Gas Regulatory Authority (Ogra) as Chairman, the Supreme Court on Wednesday sought a report from National Accountability Bureau (NAB) within two weeks. Sheikh Akram, counsel for Touqeer Sadiq, told a three-member bench led by Chief Justice Iftikhar Muhammad Chaudhry that if the appointment of his client was illegal then action should also be taken against the appointing authority.

Bangladesh has ordered a four-member commission to investigate 54 businesses linked to the pioneering microlender Grameen Bank founded by Nobel laureate Muhammad Yunus. The probe came weeks after Finance Minister A.M.A. Muhith said the bank's board had not authorised most of the affiliates.

Greece put a senior judge in charge of an emergency government on Wednesday to lead it to new elections on June 17 and bankers sought to calm public fears after the president said political chaos risked causing panic and a run on deposits. In a sharp blow to confidence, sources at the European Central Bank told Reuters it had halted liquidity operations with some Greek banks because their capital had been too far depleted.

India has asked the US to supply it with liquid shale gas, a government source said on Wednesday, as it continues to reduce dependence on oil imports from Iran, which are targeted by sanctions from Washington due to its nuclear ambitions. The United States wants allies to cut oil imports from Iran substantially or face financial sanctions from end-June.

German Chancellor Angela Merkel on Wednesday pledged 150 million euros per year to Afghanistan from 2015 to fund its security forces, calling it a sign of Germany's long-term commitment to Kabul beyond the withdrawal of most foreign forces by the end of 2014. Germany has the third largest military contingent serving in the Nato force in Afghanistan after the United States and Britain.

Taiwan's President Ma Ying-jeou has been fined Tw$500,000 ($17,000) by electoral authorities for urging his Facebook followers on polling day to vote for him, the Central Election Commission said Wednesday. Taiwanese election law forbids any form of campaigning on voting day. Elected in 2008, Ma won a comfortable re-election victory on January 14.

Federal Cabinet had directed the Ministry of Finance to solve financial problems of power sector and reconstituted the Energy Committee by inducting, among others the Interior Ministry to launch a crackdown against all those involved in power theft. This was stated by Minister for Information Qamar Zaman Kaira at a news conference after a Cabinet meeting here on Wednesday.

German authorities on Wednesday cleared out a group of protesters who have camped for months in front of the European Central Bank, ahead of huge anti-capitalism protests expected at the weekend. Some of the demonstrators hurled paint at police who were moving them on, after they ignored a request to leave voluntarily, said an AFP reporter at the scene.

The Ministry of Water and Power on Wednesday moved to increase power tariff by Rs 1.25 (27.5 per cent) to Rs 1.68 (12 per cent) per unit across the board despite recent violent protests in various parts of the country against unscheduled power cuts.

The Finance Ministry has blocked a proposal of Ministry of Water and Power regarding signing of 'side agreement' with Independent Power Producers (IPPs), saying that it will have additional financial implications and has the potential for an increase in the subsidy in case Nepra does not allow the additional financial impact to be passed on to the consumers.

While announcing its 57-page verdict in a suo motu case clubbed with identical petitions regarding corruption of Rs 26.5 billion in Pakistan Steel Mills (PSM), the Supreme Court (SC) on Wednesday directed National Accountability Bureau (NAB) to investigate the matter.

The Federal Board of Revenue (FBR) has begun sales tax audit of all National Tax Numbers (NTNs) being withholding agents to confirm/verify withholdings and deposit one percent sales tax of the value of taxable goods purchased by them from relevant suppliers.

The Trading Corporation of Pakistan (TCP) has blacklisted an international urea supplier for the next tender after it failed to supply urea in accordance with an agreement with the corporation. Sources told Business Recorder on Wednesday that the restrictions applied on a pre-qualified bidder - Global Energy and Commodities Exchange (GECE), barring it from participating in the upcoming urea import tender.

The Federal Board of Revenue has disallowed 50 percent input tax adjustment against the taxable supplies of sugar mills under an old SRO(I)/2009 of August 23, 2009 which had exempted 50 percent of sales tax on supply of sugar, requiring the registered units to apportion the input tax accordingly.

The federal government will pick up 50 percent of the mark-up subject to a maximum of 5 percent per annum whichever is less with a cap of Rs 50 million per annum with the objective of attracting investment in the textile sector, a notification issued by the Ministry of Textile late Tuesday said.