| November 19, 2001 | Monday | Ramazan 3, 1422 |
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Solving the Afghan problem
Isolation of the Taliban
Blasphemy law
Afghanistan: US aim
Leave the Afghans alone
Crisis and clarity
Violation of law by NHA
What is cooking up?
Hyderabad airport
Use of loudspeakers
Obstructing trees
Exporters’ problems
THE stabilization of economy is the top priority of the present government. The banking industry’s role becomes strategically important particularly in the case of nationalized commercial banks (NCBs). And there is due realization on the part of the management of these banks to rise to the occasion not only to enhance the credibility of the industry but also play their role as important actors for a sustainable economy.
Mr. All Raza, the President of the National Bank of Pakistan (NBP), says his current strategy serves twofold objective: improve the bank’s profits significantly and reduce the spread between deposits and advances by about 50 per cent. “The NBP restructuring-redundancies and closure of non-profitable branches is being put in place,” he says.
The Black Tuesday (September 11th) has cast gloomy shadow on the world economy and the developing countries have been hit the worst: Pakistan has suffered so far a loss of Rs3 billion in terms of foreign trade. To tackle the resulting crisis in the financial institutions of Pakistan, the Governor of the State Bank of Pakistan, has announced a multi-pronged strategy that he hopes will stabilize the country’s economy as well as the banking industry. It includes reduction in the debt burden, greater market access for exports, seeking concessional term loans from international donor institutions, passing on incremental expenditure resulting from influx of Afghan refugees, and unlimited opportunities for businessmen when reconstruction of Afghanistan begins on the conclusion of war. But, as he has pointed out time and again, all depends on the banking industry as to how it copes with the crises.
With the opening of the banking sector to the private interests, the share of deposits for the nationalized commercial banks have shrunk to 46 per cent of total deposits while their share of loans and advances has declined to 48 per cent. In the matter of pricing and remuneration there exists discrimination in lending rates in favour of government borrowings. The long term financing has dried up harming the interest of institutional investors who prefer it to avoid high transaction costs involved in rolling over their investment in short term paper. At a time when the economy is not growing, says Mr. Raza, his main task is to stimulate growth and sustain it.
Similarly, the nationalized commercial banks and DFIs are facing the problem of non-performing assets that stood at Rs221 billion in December 1999. This problem has not only seriously damaged the credibility of the banks but has also affected the industrial activity in the country. The increase in the spread between deposit and lending rates is the result. The reason is very simple: banking court system needs to be revamped.
Some of the reputed banks of the country are coping with this problem by adopting certain measures to tackle the problems arising out this state of affairs. These measures include closure of some branches and reducing the staff while keeping in view its effects on the overall efficiency of the bank. The NBP has decided to close down 200 branches and lay off 30 per cent of its staff. According to Syed All Raza, “reforms are being taken in hand to ensure cost reduction so that the bank could pay higher rates to the depositors”.
Such measures are part of the process of its transition from a public sector organization into a commercial one. According Mr. Raza, “it is the only way to compete in the market”.
While speaking at a seminar of Karachi Chambers of Commerce and Industry (KCCI) in July last, he explained, in detail, the problem of the banking sector as well as of the slow economic growth of our economy. He said that the bank’s stuck up loans amounted to Rs28 billion and only Karachi’s share stood at one billion rupees. Though the bank announced packages to pay only the principle amount, the response was discouraging. “ Some of the loan defaulters are well off, move in luxury cars, have big houses with swimming pools but they show no interest even in paying the principle amount of their loan” he regretted. The result, he said, is that the interest rate in the country ranges between 6 to 8 per cent on savings.
The management of nationalized banks of Pakistan bears a great responsibility to cope with the crisis that has crippled the already staggering economy of the country. Though laying off the surplus staff and recovery of stuck up loans are must for ensuring efficiency and stability of the banking industry, maximum care should be taken as the matter can be politicized by the vested interests who are the main hurdle in the reformation of the banking industry in Pakistan.
RIAZ MISSEN,
Islamabad
THE storming of Kabul by troops loyal to the Northern Alliance on Nov 13 in disregard of the ‘hopes’ of President Bush does not in the opinion of international observers augur well for the ethnic Pakhtoons of Afghanistan.
After occupying Kabul, the warlords of Northern Alliance have assured the American leaders and their coalition partners that they would not stay long in the Afghan capital. If past can provide a lesson, Prof. Burhanuddin Rabbani refused to quit Afghan Presidency in accordance with the terms of an agreement signed with other Afghan groups after serving his term as President of Afghanistan. It was his refusal to step down which resulted in the fatricidal conflict in Afghanistan and the rise of Taliban.
Political observers believe that the capture of Kabul and the setting up of an unrepresentative government, comprising leaders of ethnic Afghan minorities, who made possible only after the US administration gave its tacit approval to the Northern Alliance, notwithstanding the assurances given out to Pakistan that Kabul would remain a demilitarized open city in order to pave the way for the installation of a neutral government representating all ethnic groups of Afghanistan.
Is it an act of betrayal on the part Northern Alliance towards its Anglo-American benefactors, or is it a betrayal on the part of the Americans towards Pakistan?
Even the communist governments in Afghanistan in the 80’s could not ignore the peculiar demography of the country, and their cabinet represented leaders from different geographic regions. Ethno-linguistic groups represented in the cabinet at one time were 11 Pakhtoon, six Persian-speaking Tajiks two Persian-speaking Hazaras, and two Turkic-speaking Uzbeks. All spoke both Pushto and Persian, the two dominant languages of Afghanistan.
Political analysts argue that the capture of Kabul by the opposition forces would not have been possible without a secret nod from the US government. The situation is analogous to what US Ambassador April Gillisspi did in Iraq before the invasion of Kuwait by Iraqi forces. As reported later by the Western media, the US Ambassador winked at President Saddam Husain indicating US approval of his invasion of Kuwait and indirectly conveying the message that the US would occupy that country. It was, in fact, a diplomatic move against the Iraqi President to trap him in a situation from which he could not extricate himself.
If the United Nations did not act swiftly and allowed Prof. Rabbani to drag his feet in Kabul, it will inevitably lead to a civil war in Afghanistan with frightening consequences for the neighbouring countries, especially Pakistan. A non-representative government in Kabul, which did not include the genuine representatives of majority Pakhtoons, would cause another series of crisis in the war-torn country.
As declared by the Foreign Minister of Pakistan in the Security Council debate, the establishment of a national government, representing all ethnic groups of Afghanistan, could only restore peace in that country.
The solution of the Afghan problem should be home-grown and not imposed by outside forces.
SAEED MALIK
Lahore
THE experience of the various countries in Asia, Africa and Latin America has shown that only those guerrilla wars have succeeded which had the support of neighbours and other countries in the form of sanctuaries and the constant supply of food and weapons.
The experience of more than two decades of fighting in Afghanistan also proves this point. The war against the Soviet Union was not the war of Afghans only. They had the full support of their neighbours and the western powers led by the USA. Even this has remained true for the little resistance put up by the Northern Alliance against the Taliban. Without the support of Iran, Central Asian states and India it was quite difficult for them to even retain the possession of 10 per cent of the country.
However, the present situation is totally different for the Taliban. They are a completely isolated group. Previously they had no friends or even sympathizers among their neighbours except Pakistan. But Pakistan has also become an important partner in the coalition against terrorism, the main target of which are the Taliban. Therefore, no neighbourly government is in favour of the re-emergence of the Taliban as an important force.
Keeping in view the geographical position of Afghanistan as a landlocked country it is difficult for any group to fight and remain active for a long time without any source of supply from the outside.
It is also a fact that the Taliban do not consist of only those who have a common ideology.
Among their ranks are also those who change their directions and loyalties as and when the need arises.
Defections among the Taliban ranks are being cited as the main reason for their withdrawal from the cities. Mulla Omar’s call to the Taliban fighters to hold their positions, remain steadfast and not run like slaughtered chickens further proves that it is the defections and not the strategic retreat which forced the Taliban to vacate cities. Therefore, the Taliban’s number would be reduced and it may not remain a cohesive and unified force.
RAUF NIZAMANI
Karachi
I refer to Muhammad Ismail Qureshi’s letter (Nov 12) and would like to state that it would be improper to call the present blasphemy laws as Islamic laws. The Holy Quran does not prescribe a temporal punishment for blasphemy. The punishment for blasphemy is in the life hereafter.
The Holy Prophet (pbuh) did not punish anyone for the offence of blasphemy alone. The Holy Quran states, “Allah’s are the fairest names; invoke Him by them and leave the company of those who blaspheme His names. They will be requited in what they do” (7:180).
The Pakistan Penal Code, drafted or adopted by the legislature, representing the people of Pakistan and at times, dictators and extremists, has the full legal right to have a death penalty for blasphemy.
However, the following examples clearly elucidate that there is no temporal punishment for blasphemy.
Abdullah bin Ubayy, the leader of the hypocrites in Madinah, whose blasphemy has been recorded in the Holy Quran (63:8), died a natural death. Abdullah bin Ubayy’s son and Hazrat Omar requested permission from the Holy Prophet (PBUH) to kill him, the permission was never granted. The Holy Prophet (PBUH) offered the funeral prayer of Abdullah bin Ubayy.
Abu Lahab, an uncle of the Holy Prophet (PBUH), is the only person condemned by name in the Holy Quran. He and his wife were the worst enemies of the Holy Prophet (PBUH). Their misdeeds are common knowledge. The verses (111:3) in the Quran about Lahab predict a fiery hell for him in the life hereafter. He died a natural death.
When the Holy Prophet (PBUH) visited Taif to invite its citizens to Islam, he was jeered, heckled and stoned to the extent that his sandals filled with blood. As he was returning from Taif, the angel of mountains accompanied by the archangel Gabriel appeared and asked the Holy Prophet (PBUH) that if he wished, he would crush the citizens of Taif between two mountains. The Holy Prophet (PBUH) did not agree to this, stating that he hoped one day the progeny of the citizens of Taif would follow the true path.
The present day blasphemy laws are an adaption of the Christian concept of blasphemy, where the church and the monarchy assisted each other and were introduced by the British in 1860 to rule and administer multi-religious India.
Strangely, the blasphemy laws as they stand today, cover the defiling of Holy Prophet’s (PBUH) name, the names of his companions, but do not cover the Almighty and All Knowing Allah. We must reexamine and rethink our blasphemy laws and repeal them if necessary.
FAREED AHMED
Karachi
AMERICA is a country where oil/petrol is consumed about 90 million-barrels per day of which 50% is imported from the Gulf countries. The US is fulfilling 18% of its petroleum requirement from Saudi Arabia and the rest 32% from the other Gulf countries.
Why has the US set its eyes on Afghanistan? It will have direct access to Central Asian States (Azerbaijan, Turkmenistan, Uzbekistan) which have huge oil and gas reserves.
In the US presidential election of 2000, the multinational companies heavily supported the Republican candidate because they wanted much greater supply of oil to their country. The present president of USA, J.W. Bush and his father W. Bush Sr had been in oil business for a long time and both of them know the importance of oil and gas.
It may be pointed out that Mr Henry Kissenger, the then US Secretary of State, had warned former Prime Minister Zulfiqar Ali Bhutto that “America will make of you a horrible example if you continue with the atomic process.”
Actually this was not the atomic process which prompted the warning but Mr Bhutto’s word of “oil weapon” uttered at the 1974 OIC summit in Lahore. Mr Bhutto was absolutely right in saying that oil is actually a weapon and he was the only person in Pakistan’s history who knew the importance of oil and that is why he asked the Arab countries to use the oil weapon.
Having established a foothold in Afghanistan, the US will have direct access to oil and gas rich Central Asian States.
America can directly keep watch over China.
America can also keep watch over Pakistan’s atomic plant.
RAO ABDUL KARIM
Karachi
‘IF the crisis soon ends, we can show the way to another people, the Afghans, desperately in need of nation building’, says the former Chief of ISI, General (R) Asad Durrani (Nov 13).
It is an irony that people who in their single-minded policy of a ‘Pakistan friendly government’ in Kabul, directly or indirectly contributed to the enormous death and devastation to the Afghans are talking about nation building. The mere fact that nobody saw the maimed and mutilated bodies on national TV networks from 1989 to 2000 can’t hide the ugly truth.
The biggest favour which all of Afghanistan’s neighbours could do is to please leave the Afghans alone to solve their problems.
HAMID HUSSAIN
New York, USA
THE views and comments of Mr Muhammad Ali Siddiqi in ‘Crisis and clarity’ (Nov 12) is greatly appreciated. Pakistan’s policy vis-a-vis Afghanistan is amply justified and the only one aspect which needs to be emphatically stressed by the government of Pakistan and the President is the solution of Pakistan’s serious economic problems.
We inherited from the Afghan policy the drug and gun culture, which has led to the major ills in Pakistan. When one weighs this, the loss is in trillions and not billions. This drug and gun culture gift came because we supported the West. Once their aims were achieved Pakistan was dropped like a hot potato.
Therefore, we should not hold any qualms on this and before the Talibans are cleared from Afghanistan we should demand the total waiver of all our debts so that the burden on our budget could be abolished.
We have exposed Pakistan to great risks and therefore the least that can be done is to have the debt burden removed.
MAHER H. ALAVI
Karachi
THE newspapers of Karachi recently carried an advertisement by the National Highway Authority (NHA) looking for “a spacious house on or off Shahrah-i-Faisal, having at least 10 rooms, with parking space for 6 to 8 vehicles,” to be used for an office.
Is this government agency not aware that it is an offence and a violation of the plot-lease conditions to use a residential bungalow for office purposes? Is this the example they wish to set for the ordinary citizens to follow?
Have the KDA/KBCA and city administration taken note of this announced intention to contravene the law?
The NHA seems to be presently misusing another residential plot, No C-17 in KDA Scheme No 1.
IMRAN YOUNUS
Karachi
AFTER much furore and incessant demands by the PPP leaders, the government of Pakistan has finally agreed to issue a passport to Benazir Bhutto.
The question arises whether it is legally correct to issue a passport to a person who has been convicted by the Supreme Court of Pakistan and is absconding?
Is something cooking up for Benazir Bhutto and Asif Zardari to bleed Pakistan white for the third time?
TAJAMUL BOKHARI
Lahore
HYDERABAD airport lacks facilities provided at other airports in the province like Nawab Shah, Dokri, Sukkur and Jacobabad.
When passengers enter the hall, their relatives and friends wait standing in the scorching heat of the sun in summer and in winter, on the road which does not even have trees.
Even in the smallest railway stations, there is the facility of standing on the platform under a shed, but the same is not available on Hyderabad airport. It would be in the interest of both, the passengers and the PIA, if the authorities look into the matter.
LALA FAZAL AHMED BELAI
Hyderabad
I fully agree with the views expressed by Sayyad A. Mateen that the government must ban the use of loudspeakers in the mosques except for the Azan and Friday khutba (Dec 8).
The government may consider the following points:
(1) The use of loudspeakers in the mosques even for Azan and khutba should be in a low tone. The government must limit the volume of loudspeakers in the mosques. The Azan should be heard to the maximum length of two hundred yards and no more. While the khutba should be limited to the precincts of the mosque only.
(2) No one should ever be allowed to deliver any political or semi-political speeches in the mosques.
(3) No mullah should be allowed to spread hatred against any other sect in his speech. If, however, any mullah dares to do so then the saner people from among the audience must tell him that the dignity of the pulpit must be respected.
(4) The ban on the use of loudspeaker in mosques must be enforced very strictly and leniency should never be shown in this regard should. It is no use issuing orders or ordinances if they cannot be enforced.
MUHAMMAD ISHAQUE SOOFI
Rabwah
MOTORISTS at Wadhoo Wah Road, Qasimabad, face a great danger of accidents due to the trees and shrubs grown on the banks of Wadhoo Wah.
The motorists at the bridge intersection cannot see the oncoming traffic because of the trees.
Many accidents have already occurred in the past.
The authorities concerned should therefore arrange for the cutting down of obstructing trees, especially, at the bridge intersections.
AGHA ZAFARULLAH
Hyderabad
THE financial regulatory authorities, including the Ministry of Finance, Central Board of Revenue and the State Bank, seem to have no clue how damaging their arbitrary decisions concerning the exporters have been in the recent past.
I would request the people at the helm of the affairs to seriously consider the consequences arising from the following decisions recently made by the various segments of the regulatory authorities:
The markup on export finance from 8% has been enhanced to 12%. On the other hand, the average rate of rebate on various exports has been reduced from 10% to 5%. This implies that in order to maintain their profit margins at the previous level the exporters have to quote their prices at least 9 per cent higher (4 per cent to compensate for the rise in export refinance rate and 5 per cent to compensate for the reduced subsidy). But is such an increase in prices possible in the current international market is a question the answer to which only a businessman knows, perhaps not the officials of the regulatory authorities.
Nothing weighs more heavily on the financial management of an exporter than the crunch of struck up sales tax refund claims. Perhaps the financial regulatory authorities assume that all exports are made on advance payment or letter of credit basis but this is not the case. In the current international market most exports are made on 90 to 120 days credit basis which means that the proceeds of an exporter are realized after three to four months of the shipment having been made.
Consider the case of an average exporter with a capital base of Rs 10 million. If he wants to push out one shipment of Rs 2.50 million a month (and this is the bare minimum level that he must maintain to meet his overheads and also make some profit at the end of the year), he sees at least Rs 400,000 buried in the head of sales tax receivables every month. This implies that by the time his proceeds for the first shipment would be realized he would have been left with no money to work with unless his refund claims are cleared promptly and within the stipulated time. Under the present system of refund sanctions most of the small exporters are faced with the dilemma of even paying their utility bills and staff salaries.
What could be more cruel than an exporter being compelled to pay interest on his own money. This happens when S.T. department issues post-dated refund cheques to the exporters. In order to make their ends meet they are forced to get these cheques discounted from the commercial banks thus paying an up front interest of 17 per cent besides other charges in the shape of revenue stamps and other documents.
Another ridiculous measure is the recent practice of including the exports related units in the list of suspected entities. In their euphoria to curb the practice of fake / flying tax invoices the S.T. department has recently compiled a list of suspected units. This list is swelling every day. In the acclaim of S.T. department, in Lahore region alone the number of suspected units is around 2000.
One does not need a very high intellectual level to make the safest comment that under such anti-export environment the projected and desired export targets of the government can never be achieved.
MOHAMMAD IQBAL KHAN
Lahore
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