| February 18, 2003 | Tuesday | Zul Hijjah 16, 1423 |
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Muttahida leader’s killing
Soil degradation in Punjab
THE Chairman Wapda, Lt. Gen. (retd.) Zulfiqar Ali Khan, has presented the government with two stark choices: cough up Rs. 17 billion or allow him to increase the power tariff by 40 paisa per unit — to enable him to offset the effects of a Rs 5,000 per ton increase in the international prices of furnace oil. He hopes that the elected government’s disinclination to allow any further increase in power tariff would make it share with Wapda part of the windfall gain it is making because of a proportionate jump in its revenue income linked to the increase in the furnace oil prices. But a government obsessively concerned about budgetary deficits and macroeconomic stability is likely to find it even more difficult to part with such a big amount with the fiscal year-end only four months away. The prime minister’s adviser on finance, Shaukat Aziz, is reported to have assured the Wapda chief that the federal government would look into the financial difficulties of the Authority and see how it could help.
Clearly, the PM’s adviser has taken the easy way out for the time being by postponing the inevitable. From all accounts, he did not ask the Wapda chief why even after so many tariff increases over the last three years, he has not been able to cushion the effects of fluctuations in international oil prices in a way that would help the domestic market remain by and large stable. Being one of the major inputs in any economic activity, energy prices have to be maintained at a fairly stable level to avoid causing major upsets in the cost of production every time the international oil prices go up. This is the rule that is followed in most of the economically stable countries. Even in our own region where things are not so orderly, at least the energy prices are kept on a leash over longer terms no matter how many times in a year the world oil prices change. The argument of the Wapda chief that since the government is making windfall gains in taxes, it might as well share some of these with Wapda, may seem plausible. But then knowing that it is the ever increasing budgetary support that has been keeping Wapda afloat all these years, this argument loses much of its weight.
There are two main reasons why Wapda has continued to remain in the red despite hefty tariff increases over last several years. First, it has failed to tackle the serious problem of line losses and secondly, it has not tried hard enough to improve its collection of bills, especially arrears from government consumers. Many governments in the past, including the recent military regime, had claimed that they had succeeded in reducing line losses substantially. But this has never been reflected in the state of Wapda’s financial health. Even today, Wapda’s line losses remain among the highest in the world. Unless these are reduced to, say, 10-12 per cent, there is no way Wapda can expect to stand on its own feet without generous budgetary support. But then as long as Wapda’s billing, distribution and transmission remains in the public sector, one sees little prospects of all-round improvements. These three functions of Wapda, therefore, should be privatized at the earliest while the power generation part should continue to remain in the public sector because of its strategic importance. Also, now that we have enough foreign exchange we should buy majority shares in the private power projects and integrate them into the public sector power generation system so as to lessen the impact of repatriation of profits on Wapda as well as on the official foreign exchange reserves.
THE murder of former MPA Khalid bin Waleed should shock us all. One of the Muttahida Qaumi Movement’s oldest stalwarts, he was gunned down in Karachi while on his way to attend a function in honour of a noted surgeon. The identity of the killer and the motive behind the assassination have not been established, but many fear that factionalism could be behind it. The murder has been condemned by Governor Ishratul Ibad, Chief Minister Ali Mohammed Mahar, and all political parties, including the Muttahida’s traditional rivals, the PPP and the Jamaat-i-Islami. Muttahida leader Altaf Hussain has called the assassination an act of terrorism, while others have expressed the apprehension that the murder was part of a conspiracy to destroy the peace in Sindh and throw the province back into lawlessness and violence. However, while condemning the assassination and praising Khalid’s services to the party, the MQM chief has done well to ask his party workers to remain peaceful.
There is no denying the fact that for some time Karachi has been passing through a period of tranquillity. The October election was by and large peaceful, and power was transferred to the elected representatives without any hitch. The coalition government, despite undercurrents of tension, has been functioning smoothly, and the opposition has acted with a sense of responsibility. The Muttahida workers are understandably angry, but it would be a pity if they failed to exercise restraint. Sindh has suffered enormously over the last one and a half decades because of political violence bordering on anarchy. Its economy deteriorated as industrial production fell, the education process was frequently disrupted, there was virtually no new investment, and unemployment soared. The present peace and the political process, therefore, need to be strengthened. It would be Sindh’s misfortune if this spell of relative calm and normality were to be destroyed. Sindh needs an uninterrupted period of political stability, which alone can create that socio-political atmosphere which would enable all sections of Sindh’s multi-ethnic population to contribute to the province’s economic development and cultural growth. Meanwhile, one hopes the government will act with the utmost speed and efficiency to bring the killers to justice.
A RECENT study has attributed the decline in agricultural production in Punjab to over-exploitation and degradation of soil and water. It warns that as the population grows, agriculture in the province may no longer be able to fulfil the food and industrial needs of the country. The report states that Punjab was going through problems associated with the green revolution, of which a major characteristic was mono-cropping. The increased use of fertilizer, often inappropriate for given soil conditions and crop requirements, has led to increased pest resistance and the spread of diseases among farmers.
Punjab had shown spectacular progress in the farm sector over the last three decades, with the yield of all crops, led by wheat and cotton, increasing at an average rate of 1.8 per cent a year. The increased availability of water following the construction of the Mangla and Tarbela reservoirs triggered double-crop cultivation and an increase in crop intensity. However, the leap in output was achieved at a huge cost in terms of quality of water and land. The use of fertilizer and pesticide increased dramatically in the mid-’80s. As a result, average soil organic matter deteriorated at an alarming rate. Most of the soils are likely to further deteriorate and higher doses of fertilizer will be required to sustain the same yield levels.
Crop diseases, weeds and pests are also likely to increase as a result of greater cropping intensities. This will require farmers to spend substantial amounts on chemicals to protect their crops, accentuating soil degradation. Appropriate strategies must therefore be considered to conserve water and meet shortages. Changes in cropping patterns and introduction of high-yield varieties, together with construction of storage facilities and lining of canals and distributaries to harness water and reduce conveyance losses, are also important options.