| April 9, 2003 | Wednesday | Safar 6, 1424 |
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Hockey triumph
Honouring our N-scientist
Plight of old pensioners
Friendship with US
CSS exams and unemployment
Check on section officers
Dangerous drugs
Poor educators
Why Pakistan next?
G.T. Road
CPLC: change in leadership
I HAVE some comments to offer on Mr Shahid Kardar’s piece, ‘Beyond forex reserves’ (March 31).
Reserves accumulation takes place only when the sum of current and capital account balances is positive. Indeed, this has been the case in Pakistan for the last two years. The reasons for this positive balance are:
(i) The trade balance has improved due to better export performance and because exporters are bringing back their earnings on time.
(ii) Services account imbalance has shrunk as interest payments are lower (due to reprofiling of Paris Club). So are the amortizations lower in the capital account.
(iii) Private transfers have risen steadily during the last three years primarily on account of higher workers’ remittances.
(iv) Foreign capital flows — both official grants and loans, and private direct investment are at a much higher level.
(v) Early retirement of commercial and short-term debt has reduced the stock of debt and extinguished future debt servicing obligations.
Of the above elements, only the official grants and reimbursement of logistics support expenditure from the US are a one-off payment which should be excluded from the future analysis of sustainability of capital flows. Workers’ remittances have been coming into Pakistan at an annual level varying between $3- 3.5 billion through different channels at different times (banks, FCDs, kerb market) and have been so recorded under private transfers. Their recent switchover from informal channels to banks does not make any difference as far as the balance of payments is concerned. Perhaps in the last 18 months there has been a reversal of flight of capital and about $500 million to $1 billion of these flows can be counted as such. These should also be discounted for the purposes of future projections.
As Pakistan reduces its stock of external debt and liabilities this will bring about a permanent downward shift in its structure of debt-servicing payments. Thus it can be seen that the transitory or one-off components in the reserve build-up are too few to affect the future sustainability of the balance of payments. Indeed, a structural shift is discernible.
The second surprising observation made by Mr Kardar is about the central bank purchases of dollar from inter-bank market. When a country moves to a free floating exchange rate regime (Pakistan did so in April 2001), all inflows and earnings accrue to the inter-bank market. The authorized dealers receiving such inflows sell foreign currency to other dealers who purchase it on behalf of their clients for imports, debt-servicing, remittances of profits, dividends, shipping, etc. The surplus is then mopped up by the central bank which credits the dealers holding a surplus foreign exchange with an equivalent amount of rupees.
If on any particular day the market is in overall shortage of foreign currency, i.e. the demand exceeds the supply, the central bank injects foreign exchange in the market. All the central banks in the world carry out absorption and injection of foreign exchange to smooth the volatility in the inter-bank markets. So if the inter-bank market is in surplus most of the time since Sept 11, largely due to diversion of workers’ remittances from kerb to inter-bank market, the SBP is rightly mopping up these surpluses to build up its reserves.
MEHBOOD KHAN
Karachi
IT was a real good surprise to see Pakistan defeat Germany and lift the Azlan Shah Cup in Ipoh, Malaysia. After a series of defeats at the international level, Pakistan’s victory in the final was almost unbelievable. A slim margin of 1-0 very rightly suggests that it was a very closely contested final with both the teams not reedy to give in at any moment of the game.
Of course, this tournament was not as tough as the Champions Trophy or the World Cup. Nevertheless, it will help boost the sagging morale of the hockey team and reignite the interest of the hockey enthusiasts in Pakistan. No doubt, the victory was possible owing to the sheer hard work put in by our hockey team. But we also must give due credit to Shahnaz Sheikh, the coach of the team who trained them as hard as it is required to succeed at the international level.
The nimble-footed Germans had no answer to his meticulous planning which ultimately resulted in the victory for Pakistan. Shahnaz Sheikh has made a good beginning by enabling Pakistan hockey team win a major tournament after quite some time.
One hopes that the PHF would retain him for future events also and give him the opportunity to groom and prepare a team strong enough to win still bigger tournaments like the World Cup, the Champions Trophy and the Olympics.
RAFAT MAHMOOD ANSARI
Islamabad
THE devastation under way in Iraq may not have opened the eyes of our US lovers, specially those in uniform and in politics, however, I wept, and so did my 16-year-old daughter when we saw the images of Iraqi civilians being killed.
One thing is becoming clear now: that we are fortunate to be a nuclear power, thanks to Dr A. Q. Khan and others like him who have developed this deterrent to keep us safe from the US’s evil designs.
It is a pity that we have been belittling Dr A. Q. Khan’s achievements by involving him in questionable land scams, etc. While I believe he should not have dirtied himself but, he may be a better judge of his character in this regard. For me he is a hero, and a hero he will remain, because he put us on the nuclear map.
If the US can destroy the world as it did in Afghanistan and in Iraq and term the loss of life and property as ‘collateral damage’, we can also see our scientists going missing or relocating to foreign countries as a ‘collateral’ punishment. We have so many talented souls who can fill the coffers of many a needy nation, unlike the rich but yet poor Arab states, which only want to please the US.
For this we have to let our scientists to work freely. The restrictions imposed on Dr A.Q. Khan and others should at once be lifted.
DAWOODI MORKAS
Karachi
IT is unfortunate that those who have remained responsible for providing strength and stability to the ailing and battered economy of Pakistan during the last four years or so have made it a cardinal principle that without reducing and retrenching the small sources of income of old pensioners, the goal cannot be made achievable.
Their feat of fixing the economy is laudable, no doubt, but the damage they have done to the weakest section of society, that is old pensioners, is painful.
For example, the only source of income for old pensioners had been ‘Regular Income Certificate’ from the national savings centres. The rate of return for them was Rs1,350 on Rs100,000 in 1998.
In 1999 it became Rs1,250, in 2000 it was reduced to Rs1,150, in 2001 it was further slashed down to Rs1,050, in 2002 it was Rs950, and these days in 2003 the profit has been reduced to Rs682. Three kudos for the responsible planners. How kind they have been to the cause of senior citizens!
In the year 2001 the government gave a pay raise of 50 per cent to regular government employees. This was a welcome step but the pensioners were allowed from five to 15 per cent raise only and that too on net pensions, not on the gross salary, which had been a norm during the last 50 years.
The result of this disparity is that new pensioners in grade 18 are receiving the double of old pensioners in the same grade now do. Even a 50 per cent raise in the pensions of old pensioners in the current budget will not equate them with the new pensioners in revised pay scales.
However, if the elected government gives them a substantial raise in the new budget, the disparity can be removed to some extent.
We hope and pray our representatives in the National Assembly have mercy on the plight of old pensioners and do their best to undo the injustice done to them in the outgoing budget.
RAO K. ALI
Gujrat
THIS is with reference to Hamid Rizwan’s letter, ‘Friendship with US’ (March 27).
It appears we have not yet learnt to see facts for ourselves. No one denies the might of the US or the need to be in the superpower’s good book. But the questions arise: in spite of offering unconditional support to America, has Pakistan ever been supported by the US? Did Americans ever stand by us in any critical moments such as major wars with India in 1965 and 1971 or on the Kashmir issue?
As US allies we fought a proxy war in Afghanistan, making our country more vulnerable. The drug and gun culture has ruined the social fabric. The so-called fundamentalist forces, Jihadis and the armed mafia are a gift of the US friendship.
Once again since 9/11, Pakistan has been chosen to play the role of a front-line state. Now the naked aggression in Iraq has sparked worldwide protests and revealed the true nature of US imperialist designs. Do you think Pakistan figures as a ‘friend’ in America’s grand plans to capture world resources and acquire political control?
We are still hoping against hope. If Pakistan is targeted, it will be for the simple reason that it is a nuclear power. Nuclear capability is no deterrent but a risk to our security. One more lesson to be learnt from the Iraq crisis is not to wage war against neighbours.
The world has changed since the 9/11 attacks and post-Iraq war scenario will be different again. What we need to do is to put our own house in order and support the world public opinion that is calling for global peace and fair play.
We also need to revive our faith in multilaterism rather than depending on the sole superpower.
ANIS HAROON
Aurat Foundation,
Karachi
NOWADAYS a lot is being said about tackling the unemployment crisis. And fortunately, Prime Minister Zafarullah Khan Jamali has said that some government jobs are in the pipeline which would be given on the basis of merit (April 2). This is like a breath of fresh air for many deserving unemployed people.
But in order to achieve both the objectives, i.e. reduction in unemployment and the award of government jobs on merit, I would like to advise those at the helm of affairs to utilize the remaining successful candidates of the CSS competitive examinations 2001. Because, according to official reports, out of nearly 800 successful candidates, only 156 would be able to enter the Walton Academy, Lahore, while the remaining candidates would be sent back without a job.
Ultimately, the bulk of the nation’s cream would be wasted without utilizing their knowledge, talent and energy. Wouldn’t it be judicious to prevent this wastage of talent by providing them with jobs?
No doubt, it is impossible for the government to accommodate all the 800 successful candidates in the government departments, but it is very possible for the government to accommodate at least half of these successful candidates.
I request President Pervez Musharraf and the prime minister to look into this matter, and desist from leaving the bulk of the successful candidates of CSS-2001 in a state of sheer despair and hopelessness.
ASMATULLAH JUNEJO
Karachi
I WANT to highlight an important issue here. In some ministries, section officers (not of CSS cadre) are posted for years. Such prolonged posting of section officers is harmful to public sector corporations working under these ministries.
These SOs have become much acquainted with the strong and weak points of such corporations and their executives. Thus, they misuse their seats to blackmail these executives to achieve their vested interests.
The SOs get gratification on appointments, transfers and promotions of corporation officers. They keep the corporation executives informed about the movement of files and secrets of a ministry meetings, and take undue advantage of their position.
The Establishment Division is advised to review the posting of these section officers in all ministries and immediately transfer those who have completed three years on one post. It may be made a policy matter that after three years, an SO must be transferred to some other ministry with the objective of checking their monopoly and the misuse of prolonged posting.
I am confident that this issue will be considered in the interest of the country.
ABDULLAH JAN
Karachi
RETALINE is sold openly at many chemist shops, specially at the drug stores in the vicinity of the Dow Medical College and at the retail outlets such as the petrol pump shops. I know many college and university students who are taking this drug regularly.
Some of them who take an overdose of it start behaving abnormally. I am sure this drug is sold at all the medical stores with the active connivance of drug inspectors and other agencies concerned.
Keeping in view the health of our youngsters, I request the doctors and the authorities concerned to take immediate action in the matter and seal all the drug stores and outlets where this dangerous drug is being sold.
BRIG (R) MUJEEBULLAH
Karachi
THE Punjab education department has recruited 30,000 teachers on a five-year contract basis.
My colleagues and I have been serving in the Khanewal district from September 2002 without having been paid our salaries for more than seven months now.
Our lives have become hopeless. Helplessly, we have spent the last two Eids without a single penny to spend on our needs, let alone festivities.
We request the authorities concerned to look into our plight on an urgent basis and grant us relief.
JAVAID IQBAL SAHU & OTHERS
Khanewal
THIS refers to the letters (March 26, 29) in which concerns were voiced that Pakistan should take measures to avoid becoming the next target of a US attack after Iraq. A majority of the viewers has cast their votes in a private TV channel survey declaring Pakistan the next target. I do not subscribe to these views.
Iraq has been attacked because of its defiance of the US by its dictatorial regime. Pakistan, on the contrary, has always been subservient to the US and we hardly find any occasion when Pakistan has not come up with the expectations of the US all along our history.
Pakistan first encouraged the Afghan mujahideen and raised the slogan of Jihad on the insistence of the US, and then complied with the latter’s demand to dismantle the same mujahideen, the Al Qaeda network and hand over the suspected men to the US, without any legal grounds to do so.
No ruler (de facto or elected) in Pakistan has proved inimical to the US interests. That is why Nawaz Sharif accepted a unilateral retreat from Kargil when he met President Clinton on July 4, 1999, and President Musharraf extended unqualified support to the US after 9/11. Even our exiled leaders do not miss any opportunity to call on the White House and win a favour.
AZHAR NAZIR SULEHRI
Karachi
IT is simply beyond comprehension as to why the NHA has ignored the construction of G.T. Road from Gujranwala to Lahore (both ways). The road has been in a pathetic condition for quite some time.
Why have the authorities concerned left an important section of the national highway in a state of disrepair?
M. JEHANZEB ZAFAR
Islamabad
I FULLY endorse your views expressed in the editorial (April 2). The unceremonious exit of Mr Jameel Yusuf is indeed painful and unworthy of a civilized society. After 50 years of independence, we, as a nation, have failed to act rationally and impartially with the interest of the society held high in our decisions.
We are always on the forefront to criticize and demean those who might be doing good for all of us without bothering to look beyond the narrow horizon of our desires and perceptions. The working of the CPLC has invariably been excellent right from its inception particularly in view of the severe resource constraints and massive resistance it had to face from the various quarters in the performance of its tasks.
I am personally in favour of change for that keeps the nations alive and active, but the change must always be above board wherever it is applied. The government should have made an appropriate statement justifying its action and appreciated the personal contribution of Mr Jameel Yusuf in making the CPLC an enviable model of citizens-police liaison in the most troubled city of Karachi.
I have served on the law and order committees of the Karachi Chamber of Commerce & Industry and the Federation of Chambers of Commerce & Industry, and know how difficult it is to get things done from the departments concerned to alleviate the sufferings of the innocent people.
I hope the government will in future be more careful in making changes specially when it claims to be a democratically elected representative body.
MUMTAZ A. PIRACHA
Karachi
I WAS a little surprised to read the letter by Mr Liaquat Merchant (April 5).
While he has rightly appreciated and lauded the performance of Jameel Yousuf over a period of 14 years as chief of the CPLC, he has incorrectly referred to him as deputy chief. In fact, when Governor Fakhruddin G. Ebrahim established the CPLC, he appointed Nazim Haji as chief and Jameel Yousuf as joint chief, so that they both enjoyed an equal status.
The CPLC was heavily relied upon by citizens who became victims of kidnapping for ransom, dacoities, robberies, extortion and car thefts. The role played by Jameel Yousuf in dealing with all these issues, particularly tracking of kidnappers and recovery of victims taken hostage, has indeed been commendable and his timely action against culprits and his compassion shown to the families of victims earned him a place in the hearts of the citizens.
It is correct that no one is indispensable and the world in general goes on even after leaders have passed away or retired or gone into exile. In the present case the absence of Jameel Yousuf will continue to be felt as it will be difficult to fill his place.
A. S. PINGAR
Karachi
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