| September 23, 2002 | Monday | Rajab 15, 1423 |
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Army: bigger or smaller?
Nadra’s tall claims
President’s performance in US
Ideas 2002
Environment project
Thank you, Pakistan
Black and white
Ambiguity
A retired worker’s appeal
Exorbitant taxes
Now the civil services
Sniffing attack
Telephonic address
Transport problem and the KCR
SUBSEQUENT to his comprehensive article “the truth about the lost decade”. (Dawn EBR 12.08.2002) your special correspondent has contributed two separate articles about the Ayub and Zia eras (Dawn EBR 26.08.2002 and 2-9-02) in which he has repeated some of the arguments contained in his article published in Dawn EBR 12.8.02. As the 12.8.02 article contained lot of inaccuracies, this writer had pointed them out in his letter published in Dawn EBR 26.8.02. In his article about Zia’s era, he has pointed out the following evils of that regime:
(1) dependence on external resources for budgetary support instead of mobilizing the domestic resources;,
(2) failure to check the smuggling of goods thereby creating “Bara” markets throughout the country which caused serious damage to the domestic industry;
(3) bringing virtual halt to the work going on in the Karachi Export Processing Zones;
(4) failure to exercise control over smuggling of the drugs and arms;
(5) borrowing from banks for budgetary support at 0.5 per cent to 1.5 per cent while the banks were mobilizing deposits at 18-20 per cent;(according to the correspondent, this had destroyed the banking system);
(6) appointments in banks by the ministry of finance officials on personal and political grounds;
(7) banks were nationalized by the Z.A. Bhutto regime on the reports prepared by Ghulam Ishaque Khan and A.G.N. Kazi;
(8) General Zia corrupted politicians by enabling them to set up industries without much stake i.e. equity/debt ratio was fixed at the rate of 20:80/30:70.
(9) Zia stalled the setting up of hydro plants and consequently the subsequent democratic governments had to arrange establishment of thermal power units as the hydel plants required longer period for establishment.
One may have different likes and dislikes. This may be true in respect of democracies viz-a-viz autocracies too. But the mindset in favour of democracies should not prompt an economic writer to deviate from objective analysis and to blame autocracies by distorting/exaggerating the data/facts envisaging undue favour to democracies even though there may be hardly any difference in the policies/practices pursued by these two different political forms of government.
In order to restate the correct position, the aforementioned issues are being objectively reviewed below:
(a) if the Zia regime was dependent heavily on the external resources for financing the budget deficits, what were the subsequent democratic regimes doing? In fact, the inflow of foreign resources was more during the tenure of the democratic regimes when compared to Zia regime as would be evident from the table given below:
Can any one point out a single year during 1988-89 to 1998-99 when the federal budget was not in deficit?
(b) failure to check the smuggling of the goods, arms and drugs leading to the opening of illegal “Bara” markets through out the country at a large scale was really a menace of the Zia tenure and he can be justifiably blamed for that. But one can ask why the subsequent democracies did not check the menace during their 11-year term? Like-wise, why did these democratic regimes not endeavoured to improve the conditions at the Karachi Export Processing Zones purportedly destroyed by the Zia regime, particularly when two of the five governments were headed by a businessman?
(c) As for the government’s borrowings from the commercial banks for budgetary support at 0.5 to 1.5 per cent per annum, the factual position is that borrowings at the said rate were confined to the State Bank of Pakistan (SBP) only. The borrowings from the commercial banks were made at 6 per cent per annum. It was only in pursuance of the conditionalities of the World Bank’s banking sector reform package that the government commenced borrowings at the commercial rates by auctioning the treasury bills with effect from the 26th February, 1991.
It is merely a matter of coincidence that at that point of time, a so-called democratic regime was ruling the country. That commercial banks were mobilising resources at 18-20 per cent is wholly incorrect. No such high deposit rates prevailed in the country at any time. The correspondent is requested to quote the source from which he has gathered these deposit rates.
(d) To say that government’s borrowings at such low rates alone ruined commercial banks is an exaggeration. Even a common man knows that (i) grant of loans on political basis (and their write-offs) including the loans the public sector banks were forced to give for the schemes introduced by the democratic governments such as “peeli taxi scheme”/ “green tractor scheme”/ “environment protection scheme”, induction of the management and the staff on political grounds both under autocratic and the democratic regimes (here one can quote the per-force induction of the excessive staff through the placement bureau of Benazir Bhutto regime), (iii) submission by the Banks’ management to the whims of the trade unions) under the tacit blessings of the democratic rulers of the time (particularly in Habib Bank Ltd and United Bank Ltd.) which resulted in the large scale misuse of the banks’ funds/cars/telephones etc. were some of the main causes which destroyed the public sector banks.
No doubt the Zia autocracy was partially responsible for some of these big evils but democratic regimes also equally share the responsibility as these regimes, instead of bringing positive improvement did continue with the same evils and in larger proportion. In this respect, one can hardly find any difference between the autocrats and the democrats.
(e) That the privately-owned banks were socialized (I think the word ‘nationalization’ is not appropriate because no foreign interest was nationalized; it was merely government take-over of the privately-owned domestic assets), in January, 1974 by the Z.A. Bhutto government on the basis of the report prepared by Ghulam Ishaque Khan and A.G.N. Kazi does not depict the whole truth.
That these two bureaucrats were so powerful that the reports prepared by them could influence the strong man like Bhutto to take a specific decision is beyond imagination. It was, in fact, done by the then Prime Minister on the basis of the election manifesto of the Pakistan Peoples Party. Not only banks, but industries, educational institutions, rice-husking mills etc, were also socialized by the Bhutto government. The irony was that Prime Minister Bhutto had given an assurance to the gathering of businessmen on the 31st December, 1973 — the newspapers of that time would testify this — that there would be no further “nalitionalization” but the next morning banks were taken over by the government.There has been only one instance of the nationalization in Pakistan and that was of the American Life Insurance Company Ltd.
(f) It is true that Zia corrupted politicians by offering them to establish industries and easy finance was also arranged for them. In the article on Zia regime, the correspondent has also quoted the instance of a politician who after initial hesitation, fallen prey to the temptation of the ruler. Does that not reflect upon the poor integrity of the politicians? Why did the named politician not straightaway rejected the Zia’s offer?
Now I cite some instances from the tenure of democratic rulers (1988-99). When the no-confidence motion was tabled in the National Assembly against an elected Prime Minister, how was it defeated and how the assembly members were captured is not a happening of too distant a past. How the presidentship of the Muslim League was captured by Nawaz Sharif immediately after the death of Mohammad Khan Junejo also reflect badly on the integrity of politicians. When these politicians fall prey to the domestic carrot and stick game, how will they resist the external pressures accompanied by the temptations when they come to power is also a big question mark.
(g) It is also true that the Zia government made provision of finance easy for entrepreneurs for the establishment of the industrial undertakings by fixing the equity/debt ratio of 20:80 / 30:70. But why did the subsequent democratic rulers not snatch that undue advantage given to entrepreneurs by the Zia regime during their precise rule of 11 years? Is it not a fact that democratic rulers and their affiliates rather derived benefits from the policy framed by Zia?
(h) If Zia is to be blamed for not developing hydel power, the democratic regimes too failed to make any effort to develop hydel power/water resources. In case, installation of hydel power projects took longer periods, the nation could wait for 2-3 year gap and bear the load-shedding instead of getting permanently buried under the burden of thermal power bill of the projects which were arranged by the democratic government at a high cost. If Zia stalled establishment of hydro power projects for the sake of “kick-backs”, democratic regimes are to be blamed more on this account.
If democratic governments failed to bring improvement in the policies left by the autocrat for the benefit of the common man, what is the difference between the autocrats and the democrats? Then why all the praise for democrats and the blame on the autocrats?
A.M. TALHA
Karachi
MY suggestion to our learned columnist Cowasjee, who talks of reducing the army, is to come up with an alternative which guarantees the security of the homeland. Politicians, from both left and right, have been discussing this proposition ever since Z. A. Bhutto was hanged by a military general.
What we need is not to reduce the army but to create space in the political arena for fresh leaders. Let Nawabzadas, Chaudhries, Pirs and Khwaneens retire now, for they all have failed to give a direction to Jinnah’s Pakistan. Let the new generation leaders come up and take charge of issues of security using high tech. For only such open minds would be able to meet the challenges of this 21st century.
Pakistan is there to stay. If politicians fail, then the armed forces will provide the needed leadership, democracy or no democracy.
MUNIR A. VARRAICH
Pimpinellagatan,
Sweden
THIS is with reference to Mr Safir A. Siddiqui’s letter, ‘Reduction in the army’ Sept 16). He has favoured a larger defence spending because the strategic balance has to be maintained at all cost.
The defence spendings in developing states stand at around 2.7 per cent of their budget while in Pakistan it is 4.5 per cent.
For education, spending by developing states stands at 4.1 per cent and for health at 2.7 per cent. Pakistan spends 2.7 per cent and 0.7 per cent respectively.
The figures completely show that a large chunk of our budget goes to the defence and other sectors like education and health are neglected.
Mr Safir has said that at the times of adversity, the army’s strength is reinforced and not reduced. I would like to point out that the prevailing scenario would not change because it has not changed ever since our independence. And it would not probably change until a solution to the Kashmir issue. A solution seems highly unlikely. So, does it mean that we will never be able to set our priorities right?
Most people don’t seem to realize that the strength of a country these days is judged by its economy and not the size of its army.
A clear example is Russia which still has a strong military but has lost its glory and influence in the world because its poor economy.
The problem with allocating huge funds for purchasing weapons is that the weapons get outdated in a few years and need to be upgraded or replaced with sophisticated versions.
This spiral continues and the state has to spare an amount higher than the previous one as defence expenditures owing to the ever-increasing prices of sophisticated military hardware.
We should better try first to improve our economy and then go for impressive weaponry.
ANIL KHAN LUNI
Karachi
EVERY now and then we are made to believe through the media that National Database and Registration Authority has efficiently and promptly delivered computerized identity cards at the doorsteps of applicants. I submitted three applications pertaining to myself and two other family members on May 30, 2001 at the Nadra office, Sarwar Road, Lahore Cantt. In order to lend weight and credibility to my application forms, I got them attested by the Nadra director, who happens to be from the same regiment that I served during my military career.
After about nine months, we received only one card, relating to my wife.
On April 27 this year, after eleven months of a long wait, I resubmitted two applications at the special counter of the same office. It was publicly announced that this category of applicants would receive their cards within four to six weeks. It has been 23 weeks since and there is no sign of the cards’ arrival. I have now reconciled my self to the idea that the cards will never arrive. So much for Nadra’s lofty claims.
AZHAR ALI
Lahore
I HAD the opportunity of listening to President Musharraf at the community dinner in New York and also at the Harvard University, Boston. He has indeed provided an air of fresh breath, as far as our leadership is concerned.
At the community dinner, he was eloquent, precise and articulate in his message stressing upon the Pakistanis to show unity among themselves and work for the common goal, a better Pakistan.
He was straightforward and very informal during his speech which made it that much more appealing.
Better yet was his speech at the Harvard University. He portrayed an image of a true statesman and won the heart of students preset at the Kennedy School of Government, Harvard.
He meticulously answered the questions from students who asked him about Kargil, first use of the nuclear weapon, current changes in the constitution and his role as army chief along with that of a president. A person who attends such meeting at Harvard University regularly, told me that he had rarely seen such clapping, applause and standing ovations for other leaders as was received by Musharraf frequently during his speech and question answer session.
Thank you, Mr President! You make all of us proud.
S. ASIF ALAM
New Jersey, USA
After President Musharraf’s recent visit to America, it has become evident that Pakistan would not be able to revive its economy which had received severe jolts due to Bush’s war in Afghanistan.
On 5 September, Finance Minister Shaukat Aziz announced that Pakistan’s economy suffered a loss of $3 billion as a result of America’s action in Afghanistan. Government officials had also been talking of debt write offs and increased market access for Pakistan’s crippled textile sector, for several months before the visit was undertaken.
However, on September 13, all the government could confirm was that America will “soon” pay $300 million out of the $700 million that it owes for using Pakistani military bases.
As for the hopes of a release from the debt trap, Pakistan’s debt to the West has actually increased by $ 926 million, as indicated by the latest figures issued by the State Bank of Pakistan.
And the hopes were completely shattered on Aug 23 when the United States made it clear that it would only reschedule its own three billion dollars loan to Pakistan.
So, does it really mean anything to be America’s number one ally in the region?
DR ABDUL WAJID
Lahore
IT is a matter of pride that we are able to produce different defence products including submarines and trainer jet planes. We must now give a thought to producing other products also which are used frequently in our homes and offices.
For example, staples we use in our offices are all Chinese made. Similarly, most of the home appliances like microwaves, toasters etc., are either imported or produced by multinationals in Pakistan which also means money flowing outside the country. Small units can be established to produce these tiny items.
The multinational companies are like the East India Company of the past . On the one hand, they earn a lot of money from us which is remitted to their home country and, on the other, they manipulate government policies by pressurizing the government directly or through the World Bank and the IMF.
So, what is needed is that we must produce items that we use in our daily life.
MUNEER AHMED MIRJAT
Hyderabad
THIS has reference to the report headlined, ‘Over Rs38 million, environment projects approved’, and reveals that the steering committee for the National Environmental Action Plan Support Programme in its first meeting approved various projects worth of Rs38.6 million.
With the passage of time, environmental pollution has become more dangerous. In this scenario, the NEAPSP action is very appreciable.
For the first time in Pakistan, a reasonable amount for environmental protection has been earmarked and one should hope that it will be use in a right way.
This may be pointed out here that besides many other sources, industrial units are also contributing heavily to environmental pollution.
There are about 8,000 industrial units in the country and quite a few of them have proper arrangements for the disposal of their waste.
These waste material includes dangerous chemicals and gases like ammonia, nitric acid, fluoride and sulphur di-oxide which are a serious hazard to human health as well as animals.
Such chemicals and gases are disposed of improperly or dumped carelessly at the sites fully exposed to the populated areas and thus the environment is polluted.
It is essential to effectively implement the relevant laws related to environment protection. Moreover, an authority must be constituted to ensure adherence to the anti-pollution laws and punishment to the violators.
A massive programme should be designed and initiated to educate people through seminars and workshops about the importance of a clean and healthy environment. For the purpose, a subject on environment can be included in textbooks.
AZHAR IQBAL (ADVOCATE)
Islamabad.
I read the letters from two Americans thanking Pakistan for its serious pursuit and arrest of extremists, and extensive cooperation with the USA for this purpose. I do not know how widespread this goodwill for us happens to be in the US.
However, I could not help thinking that the wholesale deportation of poor Pakistanis from the USA should not have taken place. These people had gone there to earn a livelihood and should have been given the chance for it, if indeed there is appreciation for our anti-terrorism efforts .
KHALID AHMAD
Montreal, Canada
THIS refers to the very amusing letter by Khalid Butt, the Media Manager of PCB, Lahore, ‘Sindhi cricketers and PCB’ (Sept 19). He gives reasons why one should not raise the question of Sindhis in the national team. He assures us that it is all merit, fair play and nothing else.
How very appropriately he gives the example of South Africa saying that “10 years after the end of apartheid, there are still not many blacks in the Proteas team.”
To my horror, I must tell Mr Butt that Sindhis are not exactly blacks and you are not that white as well. My question is simple: couldn’t you, the honourable people of merit, find one lone Sindhi man who could run fast enough behind a ball in the last 55 years?
A. S. NIZAMANI
Malaysia
THIS refers to Mr Obaidur Rehman’s letter titled, ‘Iraq: US must consult allies’ (Sept 20).
The ‘aggressive’ states such as Israel and India that are ‘posing a threat to international peace’ are not posing a threat to the United States of America. The Bush administration is clearly using this ‘preemption argument’ against presumed threats to US sovereignty and not against threats to international peace.
AYAZ ABDULLA
NY, USA
THIS refers to Manzoor H. Akhtar’s letter, ‘A retired worker’s appeal’ (Sept 19).
It is stated that an agreement with Pakistan Security Printing Corporation (PSPC) to provide group insurance coverage to its employees was signed on Sept 12, 2000 for a period of three years along with rider of accidental disability.
Group insurance claims are entertained in case of death of the insured if his premium has been paid by the employer for the period of the agreement. Employees Group Accidental Disability Insurance rider is also provided if additional premium is paid for such employee.
The list of disability is available as per schedule I and II with the main agreement.
Mr Manzoor, a retired officer of the corporation, as per his own statement suffered a heart stroke and was paralyzed and as a result of which the Medical Board declared him incapable of active service.
He is misconstruing his early retirement benefit on medical ground and lodged a claim to the extent of Rs1.5 million under the agreement of 1988, which has expired long time ago (Aug 31, 1998).
The new agreement signed on Sept 12, 2000 does not include such a clause and claims were supposed to be entertained on the basis of the current contract signed which is in vogue and rider of accidental disability as per schedule I and II annexed with the main agreement.
Employees of the PSPC have wrongly been given to understand that all types of disability claims will be entertained by the Postal Life Insurance.
Such cases are handled/compensated out of a welfare fund created by the federal government under the Federal Government Employees Benevolent Fund and Group Insurance Institution at Islamabad. It has no concern with the Postal Life Insurance.
The PSPC has been informed of the correct position time and again. There is no ambiguity on the part of the PLI.
RAJA MUHAMMAD MUNIR
Director (Field) PLI,
Karachi
THE Cantonment Board, Rawalpindi, is engaged in extracting money from house owners, particularly civilians, in the name of various taxes.
House tax is charged at the rate of Rs1,000 or more a month, from the owners of houses on plots measuring a canal. This is in addition to the taxes already paid after the purchase of plot, in the form of TIP and development charges. These are charged despite the fact that no development work has been carried out.
The residents have to get water from sources of their own and they have to pay even for the installation of a power transformer to get electricity, if it is not already installed in their area. All these taxes are in addition to the lease rent which the lessee has to pay. One cannot justify these taxes as the Cantonment provides only minimal facility to its residents, not at all worth the amount they charge.
Higher authorities are requested to intervene and reduce the burden of taxes by evolving a reasonable formula.
IDRIS BUTT
Rawalpindi
For military rulers, Pakistan has been a crucible of experimentation. Ayub had the Bureau for National Reconstruction and Musharraf gave us the National Reconstruction Bureau. Not discouraged by the chaos created in the districts at the hands of incompetent Nazimeen, the government went on to constitutional reforms playing havoc with the only agreed upon document amongst provinces, the constitution of 1973.
The NRB is now after the civil services. It is well known that induction into the civil services is made through a highly competitive and rigorous examination and every year the cream
is selected from amongst the highly qualified Pakistani youth.
The provision of lateral entry and that too at senior and middle levels, shall destroy the very fabric of civil administration of this country.
Civil bureaucracy is the only institution (after the benevolent Pak Army, of course) which enjoys continuity and deserves the credit of whatever little sanity prevails in administration and policy making, despite repeated misadventures of military and political governments.
So generals should spare at least some semblance of order, before they return to the barracks.
MOHTESHIM SIDDIQUI
Lahore
IS it strange or is there a method in American madness that Bush’s cry for peace is a call for war? Whenever the American President talks about peace and a safe world, he is in fact talking about attacking some country, especially a Muslim country.
Today American eagerness to attack or lead an attack against Iraq is not the issue; the question is which country will be the next target.
DAUD MALIK
Rawalpindi
Benazir and Nawaz Sharif shall not be allowed to address on telephone. This was stated by the Punjab Minister for Law, Rana Ijaz Ahmed. Why is Altaf Hussain allowed such a facility, may we ask, although he is talking plainly for a separate Sindh?
DR KHALID M. BUTT
Karachi
NO doubt Karachi’s urban transport situation deserves an urgent action. The immediate need is the replacement/repair of dilapidated and unsafe low-capacity buses as well as withdrawal of the polluting vehicles which have somehow eluded certification or adherence to the standards of vehicle fitness as passenger carriers.
While the traffic police personnel should discharge their duties proficiently, the government must ensure smooth and wide roads in areas where traffic normally remains heavy.
Apart from these, Karachi Circular Railway has its own vital role to play in contributing to commuters’ convenience.
In the 1960s, Pakistan Railways did plan and accomplish the KCR as the very first urban mass transit system. If it had been neglected, then the PR’s own degradation should be held responsible. The PR has been subjected to arbitrary policies and decisions which served to damage its institutional integrity and ability to serve. Some of these came about because of manipulative managers. The PR itself needs revitalization, the proposals to revitalize KCR only is meaningless.
The new city district government has been apparently entrusted with the KCR’s future. It should not hasten to allow the KCR tracks to be used for the Karachi mass transit or any other such project.
Before considering any proposal on urban transport project for Karachi, the government should undertake a comprehensive and independent survey in this regard.
In the 1960s, the Transportation Consultants Inc. had undertaken multi-organizational/multi-model surveys reinforced by appropriate terms of reference provided by the governmental experts of those days. The subsequent project-oriented surveys provided limited but useful data.
The terms of reference for the proposed comprehensive transport survey in Karachi should be prepared on the basis of relevant orgaizations’ recommendations besides suggestions as well as local and foreign transport planners.
M. KHURSHID ALI
Karachi
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