| June 4, 2003 | Wednesday | Rabi-us-Sani 3, 1424 |
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MBA as corporate secretary
Bail for bank fraud accused
Condition of a Karachi road
Emergence of ‘Greater Israel’
How to govern ourselves?
Draining health
‘The original sin’
Mixing religion with politics
Savings of overseas Pakistanis
THIS refers to the article titled “It’s time to rethink Kashmir” and the rather amusing rebuttal by Prof Mukhtar Ali Naqvi (May 17). Compared to Dr Hoodbhoy’s scientific and fact-based argument, Prof Naqvi’s rebuttal is an exercise in Aristotelian syllogism.
There is no denying the domestic problem in Kashmir. But that is Prof Hoodbhoy’s point — Pakistan’s Kashmir obsession has squandered its national resources without seriously affecting India economically. If the Pakistan establishment is officially willing to grant the Kashmiris sovereignty, why is it harming Pakistan to achieve this?
Prof Naqvi debates like the Iraqi information minister, Saeed Al Sahhaf, with his self-deluding diatribe against India. Infosys (Infy) grew 58 per cent on net profits in the last quarter of 2003 alone (on a turnover of $741 million) and the Indian IT industry recorded a compounded growth of 30 per cent. The new IT enabled the service industry to grow by 200-300 per cent annually and the combined IT export turnover is expected to be around $50 billion in 2007-10. The same figures are expected each for the pharma and auto ancillary export industries.
He states that Prof Hoodbhoy is erroneous in mentioning that the Indian IT turnover is $10 billion. Perhaps he could furnish the correct figure along with details of the recent losses he alleges were suffered by Infosys. The list of hundreds of IT companies that closed down could also be provided.
Prof Naqvi’s export claims are dated — India closed 2002 with exports of $51 billion and not $42 billion. The trade deficit remained as such. For his information, a reasonable deficit in conjunction with a growing economy is a very healthy sign.
The writer exhibits extreme hatred and prejudice against India and this blind irrational attitude is precisely the problem that Dr Hoodbhoy cautions against. Pakistan should learn from Vietnam, Japan and Germany, nations that were utterly destroyed by America but became its best friends to prosper and grow.
Finally, unlike Prof Naqvi who lives in Disneyland, America, Dr Hoodbhoy’s patriotism and contributions to Pakistan are well- known, even in India.
VIJAY S.
Mumbai, India
This is in response to a letter ( May 17) by Prof Mukhtar Ali Naqvi titled ‘It is time to rethink Kashmir’.
The professor’s personal opinion about Kashmir aside, he would do well to focus on his country’s achievements rather than belittle the achievements of others. Is this a subcontinental or a Pakistani trait? Making statements like ‘exports have been erroneously quoted as $10 billion and their exports are dwindling, with mass closure of companies and a trade deficit of $8 billion,’ is really unbecoming of a professor.
Indian software companies and their exports are facing a tough time as there are always ups and downs in big business. Had his home country been involved in big business, the professor would have known this. There is no mass closure of companies going on. Let us not gloat over that just because India is not on the list of your favourite countries. Some fly-by-night operations might have been closed down but that’s what they deserved anyway. This business is not for the people who want to make a fast buck and leave.
The Indian software companies are getting more realistic about their cost and revenue targets and are constantly revising expectations. The companies are constantly thinking of new ways to deal with this situation by expanding their presence in new centres such as China, and including new areas of business like Bess Process Outsourcing. They will come out fighting at the end but let us not vent our frustration over them.
SACHIN RATH
Peoria, IL, USA
THIS refers to a news item about the proposed amendments in the Companies (General Provision & Forms) Rules 1985, which appeared in the press in March and the opinions subsequently expressed in these columns by various people.
In a corporate body, the position of a corporate secretary is vital. Corporate affairs is a unique discipline that is much wider and much more in import than accountancy and litigation taken together. With the exception of a few Commonwealth countries, the corporate secretary’s positions the world over, including the US, are predominately held by the MBAs.
In countries where there are chartered institutes, the associates (ACS) or fellows (FCS) of those institutes are appointed corporate secretaries. If an MBA wishes to have an ACS qualification, he is allowed around 50 per cent exemption from the papers because of the commonalities between these disciplines.
While it is appreciated that the SECP has been bringing about improvement in the regulatory system of corporate sector under the buzzword of corporate governance, it is incomprehensible that the list of the qualifications of a corporate secretary, proposed by the SECP for insertion as Rule 14C in Companies Rules 1985 in a country having no chartered institute to produce chartered secretaries, does not include MBA. Ironically, the list includes certificates issued by some non-chartered bodies registered under the Companies Act 1913 (replaced by the Companies Ordinance 1984) and a bachelor’s degree in Law.
Will it not be recommended if the proposed insertion of Rule 14C is put on hold till the SECP succeeds in establishing a chartered institute for producing genuine chartered secretaries in Pakistan or at least Pakistan is allowed membership of the Commonwealth? Perhaps, this is more logical to the sequence of events that follow and is closer to the spirit of corporate governance to create an infrastructure followed by building the supra-structure, rather than putting the cart before the horse.
Meanwhile, the SECP may also carry out a global survey and seek guidance on the relevance of the MBAs for managing corporate affairs, from IBA, LUMS and other universities approved by the UGC.
M. ISMAIL NAQVI
Lahore
ACCORDING to the Criminal Procedure Code (CrPC), the grant of bail is an essential element in the administration of justice because it avoids punishing someone in advance. It also helps to prevent overcrowding in prisons. An accused can get bail both before and after arrest; and as a matter of right when the case against him requires “further inquiry”.
When going through the various pending cases about banking fraud, it is observed that no bail is granted by the trial court despite the above-stated facts. The height of injustice can be gauged from the fact that even when a charge is made out on flimsy grounds and, when most of the prosecution witnesses are cross-examined and they do not testify against the accused, the bail is still not granted, though, according to the provision of 265K of the CrPC, the “case is fit for acquittal.”
Is this not strange that in serious offences like murder and kidnapping for ransom an accused is released on bail but not the white-collar man (working in a bank). Putting him behind bars does not allow him an opportunity to defend his case properly. Moreover, he loses his present job and one can imagine his agony as the sole breadwinner in his family.
The hardship, financial and otherwise, is hard to comprehend. The suffering of both the accused and his family is compounded when the case continues at a snail’s pace for years before a judgment is passed. So, it would be proper to grant bail to the accused against surety.
AN AFFECTED PERSON
Karachi
THE part of main Shahra-i-Orangi from 12 number bus stop to Islam Chowk bus stop has been under construction for more than five years. Five years ago, this section of the road was scraped to make it a two-way road. Houses and shops were demolished to widen the road. However, after that, the work was suspended.
The residents of the area have been facing a number of problems since then. They could not reconstruct their houses and shops because there is no demarcation of the road’s width. Basic utility services are absent. Water and sewerage lines are destroyed and one can see pools of stagnant water all over the road.
When water is supplied, most of the road gets inundated. The power supply was cut off five years back. The residents use power through kunda system (free of charge for five years). Business activities are out of the question on the road.
At night the people avoid using the road because of darkness (there are no streetlights) giving an opportunity to dacoits, looters and specially to motorcycle snatchers. The traffic raises dust causing respiratory diseases as well as sinus problem. Women get sick of dusting their homes all the time.
Very often the buses are diverted to other roads and the people, specially the students, have to pay extra money and spend more time to reach their destinations. Heavy traffic passing through the alleys endangers the life of small children.
For five years, the people have been living in hell. On the other hand, the road leading to the residences of the town nazim and naib nazim was reconstructed in just two months.
DR NASREEN GHORI
Karachi
THIS is with reference to two articles published in your paper: one by Prof Shahid Alam (Feb 22) and the other by Muhammad Umar Kirmani, a retired lieutenant-colonel of the Pakistan army (March 8) in connection with international turmoil that we have been witnessing for the past several years.
The Bush doctrine of “pre-emptive strike” was put to use giving Saddam Hussein an option to either destroy all the WMDs or quit Iraq and proceed to any country in exile.
The UN, together with its two professional inspectors aided by a team of others, searched every nook and corner of the city but found no evidence of any WMDs. Hence, the US and Britain were requested to give more time to resolve this dispute peacefully. The UN declared that an attack on Iraq on the basis of the UN Resolution 1441 would be an illegal act but Bush and Blair found no way out to deviate from the pre-planned war against Saddam.
Against the backdrop of this chaotic atmosphere, Israel took full advantage to wound and kill innocent Palestinians, and occupy additional territory of the Palestinians and destroy their homes. The valour, tolerance and understanding shown by the Palestinians in the larger interest of their country is unprecedented in the annals of recent history. In 2003 Bush and Blair destroyed Baghdad, killed and wounded thousands of innocent Iraqis and stood as silent spectators in the face of the ongoing loot, plunder and anarchy.
Why was all this massacre and bloodshed necessary when the entire world opinion was against waging war against Iraq?
This was necessary as a first step towards the formation of the roadmap for ‘Greater Israel’. The Middle East countries will lose their hold on their oil wells, and along with some Muslim countries new boundaries will be laid down for ‘Greater Israel’ in fulfilment of the 300-year-old plan meticulously designed.
It is time for the Arabs and the Muslims around the world to wake up from their morbid slumber before it becomes too late to do anything for dignified survival.
ABDULLAH FAZLI
Karachi
THIS refers to Dr Aftab Ahmed’s article, headlined ‘Forget presidential system’ (May 26). I am in complete agreement with his views and I am surprised how a seasoned and intelligent person like Mr Kunwar Idris could suggest the remedies he did.
I am not against the presidential system per se. It is a good system as it is apparent from its excellent working in the US. But, then, so is the parliamentary system whose examples of successful operation can be numerous. And, then, there are systems which are a cross between the two. Many of them are working well also.
Wherever a system is working effectively, it is not as much owing to its inherent merit as it is because of the people who are administering it. It is time we realized that no law or constitution is good or bad in itself. It is how we work it that makes it good or bad.
In a presidential system there are greater chances of concentration of powers. Given the proclivity of our elites, the process of checks and balances cannot effectively operate in our country and it is sure to acquire strong dictatorial characteristics. Our history is witness to this observation. The crucial point is not to make new laws or change the old ones, but to effectively implement the existing ones.
The 1973 Constitution was the result of a consensus, a consensus which the nation tasted only twice in its 55 years of history. The peculiar circumstances which prevailed after the fall of Dhaka were conducive to the creation of that atmosphere.
In today’s environment of discord and dissension, such a feat is impossible to achieve. Making a new constitution would be like the opening of a Pandora’s box, which can threaten the very existence of our nation. Our Constitution can work marvelously well if only allowed to operate without let or hindrance.
SHAMIM AHMAD
Islamabad
THIS refers to Mr Isa Daudpota’s letter titled ‘Draining health‘ (May 17). I appreciate his concerns but at the same time he seems to be looking at the issue through specs with somewhat biased and partial lenses.
The same tobacco company he has mentioned in his letter had voluntarily pulled out of the electronic advertisements at the start of the year when other companies’ ads continued to flood our screens.
I would draw the attention of the writer to the fact that it is not only the tobacco users who are treated in cardiac centres and cancer hospitals set up by the tobacco company.
These centres are a blessing for the people of these otherwise backward areas. Having a weak basic health care structure owing to limited government resources, these centres are catering to the medical needs of the local people.
DAREEHA KHAN
Peshawar
I normally find Mr Gwynne Dyer’s views objective. But his assertion in ‘The scale of the problem’ (May 30) that an Islamic super-state is a fantasy is a bit off the mark. Did the Ottoman Empire not flourish for centuries and even rule a big chunk of Europe? What makes his assertion even more ludicrous is the fact that the Hukumat-i-Usmania existed until as recently as 90 years ago.
Unfortunately, had it not been for the betrayal of the Ottomans by the Arabs (at the instigation of Lawrence), an Islamic empire or super-state may very well have existed even now.
That not a single promise made to the Arabs by the British was honoured is another story, but the continuous subjugation and humiliation of the Arabs at the hands of the Europeans is the price the Arabs are paying for betraying their fellow Muslims, the ‘original sin’.
NAELA HASAN
Oakville, Ontario, Canada
I WOULD partially agree with Mr Tanweer Hussain of Bickenbach, Germany, whose letter appeared in your May 19 issue.
We cannot mix religion with politics. It is a deadly combination with most lethal consequences. It would be a human tragedy to impose Islam by force as it was not designed to be dealt that way.
The holy Prophet (peace be upon him) did not suggest any form of government to be followed by the Muslims after his death. His silence was not without wisdom. He knew that the conditions would change, and with it must evolve appropriate systems of government.
Religion is a way to God for bringing humanity to recognize the Creator in a most loving relationship.
Keep it confined to the hearts and souls of men and to the places of worship, and a more moral and peaceful society will automatically evolve in time.
HAMID A. KHAN
Miramar, Florida, USA
IT IS well-known that the overseas Pakistanis have billions of dollars in savings abroad. A major portion of such savings is held by the average Pakistani community (excluding rich businessmen or industrialists). Such Pakistanis mainly direct their savings towards housing or real estate, bank deposits, bonds or stock market. However, they have been reluctant to transfer their savings to Pakistan or invest at home because of the following concerns:
a. They do not want to get involved in the complications, declarations and paperwork of income-tax returns in Pakistan.
b. They feel insecure regarding their savings/investments in Pakistan and are not sure if they can easily liquefy and remit back their savings abroad, as and when required.
If the government is serious in tapping such a resource, some extraordinary measures will need to be announced and publicized through the media and the embassies. These measures should build the confidence of the overseas Pakistanis and do not have to replicate models of other economies, that is they should be tailored to the specific situation in Pakistan.
The idea is to replace the complicated direct taxation procedures, paperwork and penalties with an indirect taxation regime where taxes are deducted at source, i.e. point of transaction, income generation or value-added. For the average individual, this will be a simple and workable system leading to capital flow and investments from abroad and stimulation of expenditure in Pakistan. This will, in turn, create demand for goods and services and provide a boost to the local industry. Given below are some specific suggestions:
1. There should be no requirements for filing of tax returns for owning assets (bank accounts, real state, vehicles, company shares, etc.). The self-assessment scheme (direct taxation), wealth declarations and paperwork should be discontinued and replaced by indirect taxation to the extent possible.
2. Indirect taxation (at source) is already being applied to income from a number of sources, e.g. bank profit, bonds and shares. Tax on vehicles and other goods are included in the purchase price or annual registration. Therefore, there should be no requirement to document and declare the same in income-tax returns.
3. Tax on property (income-tax, property tax) should be merged and directly payable as a lumpsum per year to the housing authority concerned such as CDA, KDA and Defence Society). The housing authority should be entitled to assess the annual tax depending on whether the property is for residential or commercial use, self-occupied or rented out. There should be no requirement to deal with the income-tax department for property-related taxation.
4. There should be no official bar on the flow of capital to/from Pakistan via designated banks. Please note that while the people in Pakistan have no option but to face the current tax rules and procedures, the overseas Pakistanis can simply choose to stay away.
AN OVERSEAS PAKISTANI
Safat, Kuwait, UAE
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