| November 23, 2002 | Saturday | Ramazan 17, 1423 |
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Self-support plan for IT college
University’s real assets
Prescribing expensive medicines
Hyderabad services hospital
PPP’s forward bloc
PIA flight to North America
Let democracy take root
Water shortage in F. B. Area
Encroachments on footpaths
Indian music on PR trains
Why have consulates?
Harassing the guests of Allah
THE State Bank of Pakistan has slashed the discount rate by 150 basis points to 7.50 per cent. There was a handsome increase in the KSE index and a heavy decline in the interest rates in money market. A 10-year PIB was traded at an incremental premium of almost Rs9.50 resulting in a lower yield of approximately 140 basis points.
In an effort to jump-start the economy, the SBP has reduced the discount rate five times since July 2001 from 14 per cent at that time to 7.5 per cent at present.
So what do interest rates have to do with inflation, anyway? A decrease in the discount rate increases demand and spurs economic growth by making it easier for consumers and business to borrow money.
Just a couple of years ago, the SBP was nearly as aggressive in increasing interest rates in an attempt to keep inflation in check. Inflation is caused when the demand for goods exceeds the supply. When the discount rate increases, banks pay a higher rate for their money, so they charge consumers and businesses a higher rate when they borrow money. That causes consumer demand to decrease, keeping inflation low.
But even a small increase in interest rates can have a significant impact on a company’s earnings. The extra cost of borrowing comes right off the bottom line, and the business gets nothing in return. If earnings are lower, the company’s stock price usually falls.
So how can the average investor deal with changing interest rates? Invest in stocks of companies with low price-to-earnings ratios. These cheaper stocks are less vulnerable to changing interest rates. Stocks with higher P/E ratios, such as many technology stocks, typically fall farthest if interest rates increase. Invest cautiously, though. Given the run-up in stock prices in recent times, most companies have high P/E ratios today. If the P/E ratio is low, there may be a good reason for it.
Consider inflation-hedging investments such as real estate. Invest in certificates of deposit. When interest rates increase, they, too, increase for funds invested by consumers. CDs still do not provide a great return, but they also are practically risk-free.
Reconsider your asset allocation. When interest rates rise, stock markets may suffer, while dropping rates may help the market. Bond prices move in the opposite direction. It is often appropriate for investors to adjust their asset allocation and to keep a greater percentage of their money in cash investments, such as money market funds.
Sit tight and wait. If you have invested long-term, your investments are likely to go through several periods during which interest rates rise and several periods during which they fall. Today’s volatile interest rates may affect stock prices. If prices fall, be patient; they will rise again. At least they always have in the past.
RAHIM PANJWANI
Karachi
I WANT to draw the attention of the concerned authorities towards some of the unreasonable steps taken at the Punjab University College of Information Technology, functioning at its old campus, Lahore.
My son got admission to a BSc (Hons) programme in computer sciences after getting through an entry test purely on merit. He was placed in the afternoon session. This placement was just arbitrary and not based upon any criterion as, like my son, several other students having better marks in the intermediate examinations and higher percentage in the admission test were also placed in the afternoon session.
On my inquiry, I was told that there was absolutely no difference among the two groups in any way and that the division had been made to ensure better student mix and to cope with the space problem.
Up to the second semester, there was no financial or other impact of this division, but with the beginning of the third semester, the students placed in the afternoon group were asked to pay higher fees in comparison to those placed in the morning group. Further to this, students in the afternoon group were labelled as those on a “self-support basis”.
On learning this, I went to see the principal, who asked me to contact the commander. This was yet another amazing discovery. Although I waited for quite some time outside his office, he could not find time to see me.
I, therefore, request the vice chancellor and the education department to:
1. Immediately withdraw the increase in the fee for students in the afternoon session, as it is based on an unfair and arbitrary decision.
2. The label of ‘self-support’ should be withdrawn.
3. If a differentiation is to be made at all between the students of the two sessions, the grouping should be based upon their marks in the intermediate examinations or marks obtained in the admission test or the SPA/CGPA earned by them in the last two semesters, or any combination of these three.
I appeal to the parents of the students to protest against this arbitrary decision.
FAKHAR UN NISA SYEDA
Lahore
I ENDORSE the views of S. A. Hameed, who has said in his letter (Nov 17) that universities are not recognized and remembered for the buildings and material possession but for the brains they retain and groom and the intellectual leadership they offer.
I also agree with him about the route many take to become professors by virtue of canvassing, compassion contacts and coercive methods.
It is not a matter of having 15/18 publications; instead it is the magic which creates these publications without ever having any research programme or funding. Incidentally, they are not only appointed professors, but, in due course, they qualify for grades 21 and 22 which are meant for the ‘best of the best’.
I still stand with Dr Abdul Qadeer on his views against privatization of higher education. I am willing to bet that privatization or “BOGization” will convert the public goods into family business. The BOGs are not likely to bring about a qualitative change, but are more likely to become a part of the problem.
DR IQRAR A. KHAN
Sultan Qaboos University,
Muscat
MY doctor advised me to take Ceporex 500mg twice a day for five days, but when I went to a chemist, he told me that the medicine was in short supply.
The chemist suggested to me to use Ciprine 500mg instead, saying that the formula of both the medicines was the same and that they were both broad-spectrum antibiotics.
I contacted my doctor who approved the change. It was a pleasant surprise to learn that the cost of Ciprine was only Rs184.80 per pack of 10 tablets as against Rs500 for Ciporex for the same number of tablets.
I request specialists to explain as to why doctors recommend costly medicines.
HAFEEZ AKHTAR
Lahore
The province of Sindh has only two services hospitals, meant exclusively for government employees and their families — one in Karachi and the other in Hyderabad. In other cities, public sector hospitals take care of both the government employees and the general public.
The Sindh Services Hospital, Karachi, has somewhat adequate though not modern diagnostic, outdoor and indoor facilities and referral arrangements with major hospitals and medical institutes of the city, when needed. It also has a fairly good budget.
But the Hyderabad services hospital has a very small budget, only minor diagnostic facilities, inadequate outdoor and no indoor treatment arrangements.
This has resulted in lots of difficulties for government employees and the members of their families, more so when private treatment is very costly and unaffordable.
Hyderabad is the second largest city of Sindh after Karachi, with a large number of government employees who have all along been denied proper healthcare facilities due to a small budget and absence of indoor treatment block. The land earmarked for indoor block has been utilized for construction of the building for the directorate-general of health services, Sindh.
Now that this directorate-general has been downsized, it can easily be accommodated on the first floor. The ground floor, which has sufficiently big halls and rooms, can be used for conversion into wards, operation theatre and labour room, making a complete indoor block to provide indoor treatment facilities to thousands of government employees and their dependents who cannot afford treatment in private hospitals. This will also save the government expenditure on the purchase of a building for this purpose.
The provincial health department should consider this proposal and take an early decision.
DR NOOR M. MEMON
Sindh PMA president,
Hyderabad
THE emergence of forward bloc in the PPP on the eve of the National Assembly session was a bolt out of the blue. Rao Sikandar Iqbal, the spokesman for the forward bloc, has said they have taken this step to bring an end to the deadlock but continued to owe allegiance to the party leader. This does not seem to be true.
It seems that the forward bloc has been formed at the behest of the establishment in order to strengthen the PML (Q). In this way Gen Pervez Musharraf will be able to get the LFO passed by the National Assembly.
A split in the PPP would be disservice to democracy because this is the only political party which has representation in almost all the provinces.
But the PPP itself has not behaved democratically after the election. It reached an agreement with the MMA but the situation changed abruptly. It seemed that its leaders were engaged in getting maximum benefits from the situation for themselves and for the party rather than for democracy and the country.
M. SHAHID RAFIQUE
Okara
IT IS nice to learn that PIA is returning to its previous days of efficient and excellent service.
The recent decision to acquire a long-distance Boeing to introduce direct flights to North America is a welcome step. It would not only fetch additional business for the airline but also provide a great relief to passengers by eliminating flight change overs in European countries where the attitude of airport personnel is rather humiliating.
This step would also dispense with the wastage of time and insult-loaded long queues at Dubai airport.
PROF S. TIPU SULTAN
Karachi
NOTWITHSTANDING the lack of a clear majority of any party in the National Assembly, the people have chosen their representative and they must be allowed to form a government and run the state affairs.
Leaders will emerge from within the National and provincial assemblies. Time and circumstances always produce leaders from within the elected bodies and this is what democracy is about even if it is tailored or controlled.
As for tolerance, conciliation and pragmatism, the civilian setup must endeavour to live with a strong president and his on going policies with diplomacy and tact. A confrontation will see history repeating itself.
We in Pakistan have often talked about a government based upon consensus and national unity. Let all concerned sink their differences and accept Gen Musharraf as president for five years. As for the amendments introduced by the LFO, parliament can debate this issue and act in accordance with the Constitution if it considers any changes to be necessary. Let us hope that this time around there will be no infighting, no premature dissolution of parliament and the government and parliament will complete its tenure.
If a national government based on consensus cannot be formed and a group of parties has enough votes in parliament to form a coalition government, the minority parties must have the good grace to sit in the opposition and establish good democratic traditions, as a strong opposition in parliament is as important as a strong government of the day.
Nothing lasts forever. Nobody is indispensable and changes will come naturally over a period of time. Allow democracy to take root and achieve the Pakistan envisioned by our founding father.
LIAQUAT H. MERCHANT
Karachi
I WANT to draw the attention of the concerned authorities towards the short supply of water to Block 12 of the F. B. Area, Karachi.
Since the posting of a new valve operator six months ago, the residents of this area have been facing water shortage and low pressure of water supply. Nearby areas of Gulberg and Water Pump, however, have been receiving full supply of water.
All our efforts to get the problem solved have failed. Some of the residents even visited the concerned authorities and informed them of this problem, but to no avail.
I, therefore, request the Sindh governor and the managing-director of the Karachi Water and Sewerage Board to direct the concerned authorities to immediately restore the full supply of water to our locality, as we cannot afford water tankers.
SANA JAWED
Karachi
IS there anyone in the city of Karachi who can help save the footpaths which are being encroached upon in Gulistan-i-Jauhar?
Thousands of men, women and children use them to walk up to Jauhar Chowrangi to catch a bus but, it is observed that a new cabin is being erected everyday to occupy the footpaths.
One can even see two new mechanic cabins just opened within a few feet on both sides of the police chowki on the main roundabout.
This could not have been done without police connivance. Eventually the residents of Gulistan-i-Jauhar are being forced to walk on roads which are not safe because of heavy traffic.
Furthermore, each and every cabin has a kunda connection. The encroachers must be removed immediately.
JUNAID ALAM
Karachi
IT WAS a lovely experience to travel by Karakoram Express from Lahore to Karachi on Nov 15.
For a while I forgot that I was travelling in Pakistan by the Pakistan Railways. Everything was very good. The staff were polite and the environment was pleasing.
However, what I found disturbing was that Indian music was being played on the train and, on top of it, it was being played in the holy month of Ramazan.
I request the high-ups to look into this matter and stop patronizing Indian film songs on PR trains.
MUHAMMAD ALI SHEIKH
Karachi
THIS refers to the letter, “Why have consulates at all?” (Nov 17), in which the writer has touched upon a pertinent issue with which the minds of citizens in Karachi are rankling. It is hoped that the consulates will take due notice of the problem.
It is beyond our high and mighty to take up such issues, as they are far removed from the mundane task of negotiating streets, picketed by security forces, or obtaining visa through a circuitous route. Therefore, this is a citizen’s direct appeal to the consulates.
Closing down consulate work at existing premises may be necessary, but these buildings could be put to an alternative use where there is little or no perceived threat. This way, the removal of the security obstructions will become possible and roads could be returned for free and easy use by motorists.
The look of a city under siege is not a fair reflection of this vast thriving metropolis of commerce and industry. The city and the majority of its peace-loving citizens deserve better.
The removal of display of heavy security would bring a sense of relief to the long-suffering public and help create much-needed goodwill that the consulates are here to promote.
This would add real substance to the present advertising campaign in the media, presenting pictures of the great country where Muslim professionals are enjoying freedom and prosperity. Some positive steps are needed to improve the situation.
OWAIS HASIN
Karachi
THIS refers to the letter, “Umra pilgrims’ order” (Nov 19), by Justice (R) Salauhuddin Mirza.
I call upon the President to intervene in the matter and rescue tens of thousands of Umra pilgrims, who are virtually taken hostage by the so-called Saudi travel agents, most of whom have proved themselves to be mere cheats.
I, my wife and our two daughters suffered a lot during a recent Umra visit to Saudi Arabia, as our travel agent refused to establish any contact, denying us an orderly and planned return to Pakistan. We spent, or rather wasted, our three precious days in Makkah in chasing the travel agent, simply to get return seats for Karachi confirmed.
Finally, I got the services of my friend at the Haj Directorate of Pakistan at Makkah to get our PIA seats confirmed. It is, however, not possible for tens of thousands of ordinary Pakistanis to get such services easily.
I came across hundreds of Pakistani pilgrims who were worried about the planned return to their country. They were distressed by the mistreatment meted out to them by their travel agents. Their return tickets were virtually snatched by the agents.
There is no point in snatching airline tickets from pilgrims. Anyone desiring to slip away will simply not return to the airport. Even 6,000 Bangladeshi Hajis have not reported back to their country since the last Haj.
To my astonishment, most travel agents had no offices and no trained staff to handle pilgrims. They were teen-agers and working on daily wages or on a contract basis. It is a fit case for child labour in any democratic country like Pakistan, if not in Saudi Arabia.
The travel agents could hardly understand Urdu, and it is difficult to establish any contact with them. One of the pilgrims had to report to Jeddah airport on four occasions, but he could not get a seat confirmed and had to go back to the Jeddah city from the Haj terminal.
The Saudi government is totally helpless about this matter. At the moment, things are in a complete mess in Makkah and Madina. Most pilgrims are seeking help from their governments for their smooth and orderly return to their countries. The Pakistan authorities here in Saudi Arabia should also come to the rescue of their countrymen to enable them to perform Umra without any further hassles.
SIDDIQ BALUCH
Quetta
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