| June 14, 2002 | Friday | Rabi-us-Sani 2, 1423 |
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Roll back advanced hour
Crackdown on cable operators
Some answers
Disconnection of sewerage line
Sattar’s resignation
People scared of police
Pakistan’s sovereignty
Opening the air space
Dignity bargained?
Pollution-free buses
Recovery of loans: myth or reality
WHEN anger goes to the head, it robs its subject of cogitation. It also blinds its victim to reality. Like the Light Brigade they charge, mindless of consequences, ignoring the thundering “Cannon to right of them/Cannon to left of them/Cannon in front of them”. But that was a blunder by a stupid commander. The only remark the Charge of the Light Brigade at Balaclava drew from a French General, who watched the action, was: “It was magnificent but it was not war.”
As Mr Vajpayee thundered while addressing the Indian troops at the forward areas in the Indian-held Kashmir, it recalled the same senseless charge of the Light Brigade. He talked of a decisive war with Pakistan, which India would certainly win. He whipped up war hysteria in his country.
The clever ploy might pay dividends to the BJP, insofar as it successfully diverts indigenous and foreign attention from the continuing massacre of Muslims in Gujarat. It cements the fissures within the NDA and keeps the alliance intact. But, it can only be useful as a short-term measure. For the long term, Mr Vajpayee will have to decide and decide sooner than later, whether he would like to push his troops headlong and blindly in the Valley of Death, or realize that discretion is the better part of valour, and sheath his sword.
Before igniting a decisive war, it would be advisable that the rulers sat down to count the costs in men, both uniformed and civilians, as well as material. They should realize that a decisive war would have to be an all-out war. And, because, Pakistan cannot sustain a prolonged action, it will obviously be driven to use its nuclear option.
An exchange of nuclear missiles and bombs would result in devastated cities, towns and villages over a large swath of territory on both sides. Who, among the present war leaders, will survive to lament the consequences of their rash act? That is the spine-chilling scenario that Mr Vajpayee should conjure before crossing the Rubicon.
Gen Musharraf has been repeating ceaselessly his appeal to his counterpart to calm down and settle all differences through talks. His hands are already too full with tackling terrorists at home to send any terrorist across the Line of Control. He has, therefore, invited international media and UN observers to investigate India’s allegations about terrorist infiltration. This is a fair offer, which India should accept. Let independent observers find out the facts.
Many among Mr Vajpayee’s close associates for long years are sorely disappointed by this metamorphosis in his character in the twilight years of his life. Would he yet reassume the same cool self-control that he has been reputed for and avert an apocalypse!
SYED JAWAID IQBAL
Karachi
THE nation is suffering badly under the new day light saving timings. One cannot go outdoors before sunset because of the strong sun and the sizzling heat. That occurs at about 8:30 pm under the new time. There is then hardly any time left to be spent outdoors. One has to offer Maghrib prayers, watch some TV, take the evening meal — all during those two critical hours before it is bed time. How on earth do you save electricity by staying indoors for such long hours, anyway? So why make life so miserable then.
We have social obligations like dinner parties etc. You cannot start eating before sunset, it is just in our blood. So how can you go home after attending the party before the clock strikes one in the morning. Then you have to be up for office in the morning.
The government is requested to go back to the old time. That was a thousand times better for our society with our kind of weather.
SALIM KARAMAT
Islamabad
OVER two months have passed since the switch-over, but one has yet to see any benefit whereas the disadvantages are many.
The office-goers have been robbed of their precious morning hour available for routine pursuits. The commuters of long distances in mega cities who were already hard-hit on time constraints, have been the worst affected. Now they have to begin even before Fajr and end up late in the evening, as most of them, especially bankers, are late-sitters in offices under the force of our prevalent culture. On the other hand, the time to go to bed has come down earlier.
In short, the housewives, the school-going children and the working men and women, all have been disturbed and put to unrest on account of this ill-conceived decision. The lone favouring argument of more sun light availability perhaps ill fares in our case where the commodity is found in exportable abundance if it could be possible.
What for then have we advanced the clocks ahead? Is it not overdue now to retrack and go back to the pre-April 6 position, if sense is listening out.
Q.S. ANSARI
Karachi
YOUR news item on this subject (June 8) and the editorial (June 10) were very timely. It is interesting to note that PEMRA did not order the crackdown on the licensed operators but the unlicensed ones. However, in their zest to act as more loyal than the king, the police cracked down indiscriminately on all cable operators, which shows their unbridled high-handedness and atrocity.
The cable industry is the most popular industry throughout the world and is encouraged at the government level. Our cable industry, which is in its infancy, is being ruthlessly throttled and restricted. When licensing was introduced, it was immediately apprehended that the regulating institution, like other bureaucratic institutions, would tend to restrict cable operations rather than regulate them, and the subsequent experience has proved it to be so.
The bureaucracy is acting as our mentor and the guardian of our morality. It chooses for us which channel we should watch and which we should not, as if we are not mature enough to distinguish between good and bad. Last year, Indian news channels were banned as they were dishing out malicious propaganda against Pakistan. This was understandable. However, lately, even the purely light entertainment channels which were merely stage-shows, music shows, quiz shows, have also been banned.
The elites and the affluent are free to enjoy all sorts of stuff through direct dish reception but the poor masses are being deprived of all sorts of entertainment. Even the English channels are being targeted as being ‘obscene’ and are being stopped from being run on the cable network.
Now, it has been learnt that the city government is also planning to pounce upon the cable operators to get their pound of flesh. We should banish all forms of extremism and be a little more liberal towards access to entertainment.
The punitive measures would only cripple this nascent industry and the cable operators would be forced to close down their operations.
M. QAMAR ALI
Karachi
THIS has reference to Mr Mahfuz-ur-Rehman’s letter, ‘Stone-laying ceremonies’ (June 9). While criticizing the role of VIPs laying foundation-stones on completion of various projects entailing unnecessary expenditure, he has posed some questions which merit attention. I would like to give here a question-answer session in this regard.
Q. Are these ceremonies necessary?
A. Yes. These are essential in Pakistan because the VIPs have nothing else to do in their offices except reading all newspapers (officially subscribed to), midday tea breaks for gossip and signing a few letters put up by their staff.
Q. Do these ceremonies serve any purpose?
A. Yes, the VIPs get cheap popularity at government expense coupled with free of cost outdoor excursions which also improve their health.
Q. What is the contribution of the VIPs to the projects except that they grace the ceremony for stone-laying with their presence?
A. No VIP has ever made any contribution (cash or kind) to any project in Pakistan. The contributions come from the aid-giving agencies. The VIPs happily receive their share through untraced channels. All the contributions are repayable with interest (considered un-Islamic) which lately stood at 46 billion dollars and is likely to lead us to bankruptcy sooner than latter.
Q. Is there no better use for the money spent on the travel and food arrangements of the invitees to the ceremony?
A. Why grudge this paltry little sum of money? This expense is like a drop in the ocean.
K.A. WAHID BUTT
Lahore
THE KW&SB has issued us disconnection notices for non-payment of water bills whereas water supply line does not exist in our area and this fact was already brought to the knowledge of the authorities concerned.
The KW&SB has taken a cruel step against innocent residents by disconnecting the sewerage lines on 7.6.2002, which has converted the roads of the locality into ponds. The overflowing sewerage waste now poses a serious health hazard to the residents of the area.
We, the residents of Marina Elevation FL-7, Block 2, Clifton, Karachi, have paid all dues to the builder, M/s Gharib Nawaz Construction Company, who has failed to perform his obligation with the collaboration of public functionaries of the KW&SB, KBCA and KDA to whom we have made several complaints in this respect.
We are surrounded by dirty water and are forced to purchase water tankers to meet our daily needs at exorbitant rate.
We request the City Nazim to take necessary action and order the KW&SB to reopen the sewerage line. The wrongly issued water bills in the absence of a water pipeline may please be cancelled. Any delay in respect of restoring the sewerage connection may cause spread of serious diseases in the area.
ISAR AHMED
Karachi
FOREIGN Minister Sattar’s resignation at this hour of crisis is significant. While he had his shortcomings, his commitment to the Kashmir issue was unquestionable.
He fully understood the Indian game plans. He never favoured a policy of appeasement towards India and was under no illusion with regard to Indian objectives. His resignation at this time, when Musharraf seems set to do ‘anything’ to avoid war does not augur well for Pakistan.
Pathetic attempts at face saving are on. The compromise seems to be military de-escalation by India in exchange for a permanent halt to ‘infiltrations’. But there are no indications to suggest that India will allow any settlement of the Kashmir dispute.
DR SHAHBAZ KHAN
Stamford CT, USA
THIS is with reference to Mr Arman Sabir’s report (June 10) under the heading, ‘People still scared to approach police’, wherein he has pointed out that despite the enforcement of police reforms, people are still scared to approach the police for the redressal of their grievances.
I have worked in the pre-devolution period as an SDM and I am of the view that the situation was far better previously. In the present system, the district administration has been completely sidelined. The new system has brought to the public only miseries while the police has become all the more strong and wayward.
TAHIR LATIF KHAN
Lahore
PRESIDENT Musharraf is an outspoken and sincere person. But, unfortunately, he has been misguided and misinformed by his incompetent ministers and advisors. His image in the minds of most Pakistanis, was once very good but it is no longer so.
It is debatable if he made a right decision in supporting the US in its war against terrorism. But it is quite clear to every one, even those who favour his decision, that this support to the US must be within certain limits. It must not degrade our nation.
We should not allow Americans to operate in Pakistan as if they are operating in an occupied territory. Pakistan is a sovereign and independent state and there must be no compromise on our sovereignty. It should also be remembered that the US has, in the past, failed to come forward to help us when there arose a need for it.
MOIN
Peshawar
THE latest Indian step of allowing Pakistani commercial air traffic to pass over Indian air space as a de-escalation measure has come within two days of the incident where one of its unmanned spy planes was shot down by the Pakistan Air Force.
Maybe what India wants in return is for Pakistan to open up its air space for Indian commercial airline traffic which would be of great benefit to them for two reasons:
1. Indian airlines are undertaking a lot of losses on routes like Central Asia and Middle East as they have to make a long detour.
2. Being an ex-pilot, I know how a clean commercial aircraft can be converted into a dirty configured aircraft capable of carrying out reconnaissance missions over enemy territories.
The Indian spy plane was shot down immediately, but Indians are well aware that Pakistan would not shoot down its commercial aircraft. Hence, this new ‘friendly step’ to de-escalate the tension has been announced.
My sincere suggestion to the government of Pakistan would be to let the situation prevail as it is till the time India moves its armed forces back to peace time positions.
SYED ALI ZAIDI
Karachi
THE news item ‘US may offer financial help’ (June 6) states that America might hold out the prospect of some new economic assistance and of continuing the debt relief to Pakistan, in return for action to prevent cross-border infiltration.
How many more instalments are we to receive from the US in exchange for our dignity and sovereignty?
TAHIR MAQBUL ZUBERI
Karachi
IT is said that the government intends to ban the import of minibuses and replace the existing ones with large buses. This is most welcome because wagons and minibuses are the biggest traffic hazard in Lahore.
However, the government should go one stop further and ban the import of new diesel buses.
Instead, it should make it compulsory for every new bus to be a pollution-free CNG vehicle to solve our environmental problems.
HAMID ZAMAN
Lahore
THIS refers to the article titled ‘Recovery of loans by NAB: myth or reality?’ by Mr A.M. Talha (June 3).
The author defines a loan (principal or mark up) past due one year as non-performing and the one past due two years as a defaulted loan which is not correct. All the loans that are overdue (principal or mark-up) for a period of 90 days or above are termed as non-performing loans (NPLs), whereas the loans that become overdue by 365 days or more are called defaults.
The total amount of non-performing loans of banks/ DFIs which was Rs308,589 million as of December 2001 was reduced to Rs306,222 million as of end-March, 2002.
The comparative figure as of Sept 1999 was Rs211,837 million. This increase in quantum of NPLs during the last few years was due to incorrect reporting by the banks/ DFIs due to several reasons. For instance, most of them were reporting only overdue portion of a loan instead of the entire outstanding amount of the non-performing loans.
Moreover, they were not strictly following the standards provided in Prudential Regulations for correctly classifying these loans. The non-performing loans also grew due to addition of mark up as well as fresh classification of loans during subsequent periods. This misreporting was identified as a result of stringent scrutiny and close monitoring of reported data and during on-site inspections by the State Bank.
The presumption of Mr Talha that reporting ‘Net NPLs’ would show defaults in reduced amounts is not correct. In fact, both the gross as well as net NPLs are being monitored and published. Reporting net NPLs does not aim at understating the volume of non-performing loans. In fact, it is the net NPLs i.e., net of provisions and mark up taken to the suspense account, that constitutes the true risk to the capital base of a bank.
As a matter of fact, provisions are created to mitigate and cover the credit risk. Also the mark up taken into suspense account represents the unrealized income and if reflected in the Income Statement would artificially inflate the income of the banking company. This measure is actually aimed at better disclosure and transparency.
The author argues that waiver of interest is not desirable because of payment of profit to the customers on deposits as also the intermediation costs vis-a-vis defaulted loans. This view is pessimistic and should be taken in its proper perspective. In any case the bank has to incur costs on the administration and maintenance of the portfolio of stuck up loans, in addition to the fact that these are unremunerative. Therefore, if remission of interest helps settle its stuck up loan, the reinvestment of principal in some other profit-making channels will add to the overall profitability of the bank, thus reducing the drag on its income streams. Nevertheless, the banks have been directed to ensure that all possible avenues, including the viability of legal actions, have been exhausted before allowing a write-off.
Lastly, taking the initial amount of Rs127 billion (1997) and charging the interest at 22 per cent to arrive at a figure of Rs276.49 billion (2001) is based on a static and myopic approach. The fact remains that new loans continue to be added to the overall volume of NPLs, some wilful and the others circumstantial. Moreover, cash recovery of Rs4,200 million was made during the confessional package given in 1997 and from Oct 1999 to Mar 2002, the cash recovery against defaults has been Rs67,784 million.
The restructured/ rescheduled loans are monitored separately and cannot be treated as performing loans till the terms and conditions of rescheduling/ restructuring are complied for at least one year. There is, therefore, no question of including restructured/ rescheduled amount in cash recovery as these are being monitored separately.
SYED WASIMUDDIN
Chief Spokesman, State Bank of Pakistan,
Karachi
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