| June 29, 2002 | Saturday | Rabi-us-Sani 17, 1423 |
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Balochistan budget
QAU road closure
AFTER years of simmering hostility and bitterness, there are welcome signs that Pakistan and Russia are moving towards a relationship that is more in tune with the post-cold war era. The latest sign of this thaw is the decision by the two countries to sign a Memorandum of Understanding next month on the construction of a gas pipeline from Iran to India that will run through Pakistan. Following the signing of the MoU, a Russian energy firm will conduct studies on the construction of the $3.2 billion pipeline and negotiate with international financial institutions for its funding. In May this year, a delegation from Russia was in Pakistan to hold talks on the project. However, because of the stand-off between Pakistan and India, the Russians were not given a clear go-ahead by their Pakistani counterparts. Pakistan has now agreed in principle to the project, which will deliver gas from Iran to energy-starved India and ensure for Pakistan a handsome amount in royalties. The fate of the pipeline has for many years hinged on the state of Indo-Pakistan relations. The Indians had earlier tried to bypass Pakistan and opt for an underwater pipeline instead. However, feasibility studies have shown that this alternative would be prohibitively expensive and take far more time to construct.
The pipeline apart, there have been other welcome signs of a thaw in relations between Pakistan and Russia. In June, President Vladimir Putin made efforts to defuse the tension between India and Pakistan by trying to arrange a meeting between President Musharraf and Indian Prime Minister Atal Behari Vajpayee during the Almaty security summit. However, the Indians thwarted the move by their obduracy. President Putin, nevertheless, offered his good offices to help resolve the stand-off and invited both leaders to Moscow. There is now a clear need for Pakistan and Russia to leave behind the bitterness of the past and upgrade their relations. During much of the cold war, Pakistan was firmly within the US camp while Moscow remained closely allied to New Delhi. The Soviet invasion of Afghanistan saw Pakistan become a frontline state and a conduit for US aid to the anti-Soviet resistance spearheaded by the Mujahideen.
However, with the end of the cold war and the collapse of the Soviet Union, many of the barriers to building a more cordial relationship have disappeared. In the changed context, Moscow and Islamabad have everything to gain by building friendlier ties. For one, the two countries could expand the very low volume of trade between them and embark on joint ventures, particularly in the reconstruction work in Afghanistan. The two countries must take advantage of the changed global realities by turning their backs on the past and building a more cordial and mutually beneficial relationship.
BALOCHISTAN’s budget for the fiscal year 2002-03, announced by finance minister Jalil Khan Dotani on Thursday, provides for an outlay of Rs 29.79 billion, which is 8.6 per cent higher than this year’s budget figure of Rs 27.34 billion. Though no new taxes have been proposed, the budget has a significantly large deficit of Rs 3.36 billion — almost 11 per cent of the estimated revenue receipts. In fact, compared to this year, projected revenue receipts for 2002-03 are estimated to fall by some Rs 900 million to Rs 26.43 billion. Part of the reason could be that in 2001-02 seven local taxes had been abolished. Nevertheless, the provincial government’s aim of increasing self-reliance does not seem to have been achieved even slightly since it continues to be heavily dependent on Islamabad for much of its expenditures. Around 90 per cent of its revenue receipts are made up of federal transfers, including around Rs 6.2 billion coming in the form of subsidies or grants. Over time, Balochistan will have to try and reduce its excessive dependence on the centre.
The education allocation has been more than doubled in absolute terms — from Rs 542 million to Rs 1.171 billion, but that does not amount to much when one looks at the level of illiteracy in the province, especially among women. The finance minister has praised his government’s focus on socio-economic development and said that an increase in development spending from Rs 7.89 billion to Rs 10.03 billion for 2002-03 was ample proof of that. However, given that this increase is close to the size of the projected deficit for 2002-03, it remains to be seen whether all of the expanded development priorities will be met. The reason for scepticism is that since the deficit is to be bridged by a higher than expected allocation from the National Finance Commission or by a federal grant, either of these materializing not being all that certain.
One way of financing development without resorting to handouts from the centre would be for the provincial government to trim its own expenditures. That, however, has not happened; compared to 2001-02 what the government plans to spend on its own functioning in 2002-03 shows an increase of over eight per cent. Since Balochistan is heavily dependent on aid from Islamabad or foreign donors, it is important that such money be utilized efficiently. Like GNP statistics, budget figures do not show the quality of the service being provided; they only tell us the amount allocated. There have been numerous instances in the past of governments diverting development funds actually promised and provided for on one pretext or another. This must not happen in the present case.
STUDENTS and staff at Islamabad’s Quaid-i-Azam University have had one access road after another closed to them because of diplomatic security, and this is taxing their patience. Since September 11, the main access road leading to the university on which the American embassy is located was closed, off and on, to QAU students and staff. They had to travel by way of the narrow and congested road in Nurpur Shahan that passed through the Bari Imam shrine. After the bomb attack in the church in the diplomatic enclave, the University Road was permanently closed to QAU students and staff. Although greatly inconvenienced, students and staff took the inconvenience in their stride, acknowledging the security risks for the American embassy and taking consolation in the fact that the Islamabad Capital Territory administration had announced plans of building another access road to the QAU. To their surprise, this new road, which starts from the side of the Prime Minister’s Secretariat building and skirts part of the diplomatic enclave, was built in no time. But the happiness proved short-lived, for now this new road too has been closed to them. It is now back to travelling on the narrow and congested Bari Imam shrine road.
It looks like the Islamabad administration needs to keep a better balance between the security concerns of the foreign diplomats and the convenience of its own citizens. They recognize the importance of beefing up security measures for the diplomats in these dangerous times, but they expect the authorities to bear their interests in mind too when implementing these security measures. Perhaps the solution lies in building another access road to the QAU, and quickly too, that will not touch the outer limits of the diplomatic enclave.