| July 31, 2003 | Thursday | Jumadi-ul-Awwal 30, 1424 |
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Amendment to Sales Tax Act
Public safety commission
Plea to KESC chief
Troops for Iraq
Killings in Quetta
Whither US?
Visit to US: the balance sheet
Recognition of Israel
Pakistan Historical Society’s working
IT was intellectually invigorating to read the thesis presented by Mr Shahid Javed Burki (Some possible pitfalls, July 22), the gist of which was that “given Pakistan’s past history, there is a real danger that politics may cause the economy to stumble again” and that “if the military under the direction of President Musharraf has to choose between economic stability and growth on the one hand and a quick return of democracy on the other, it must choose the former”.
In one sense there is little point in arguing with this thesis given that the military under the direction of President Musharraf is in no danger of choosing a quick return to democracy and given Pakistan’s past history in which the advice of eminent economists out of power has carried much less weight than that of those carrying either bags of money or fully loaded guns. It is only as an idle academic exercise that one engages Mr Burki on the merits and possible pitfalls of his new thesis.
Mr Burki’s argument raises a number of questions. When he asserts that “given Pakistan’s history, there is a real danger that politics may cause the economy to stumble again,” what is the evidence that it was politics that caused the economy to stumble in the past? What are the links between politics and economics on which the assertion is based and how does one read the political history of the last 50 or so years? And, more importantly, if indeed politics has caused the economy to stumble in Pakistan, what are the factors that led to such an outcome?
Mr Burki states: “Pakistan is in the same situation today as India was in the early 1990s. Like India it could also experience a growth spurt and make it last for a while with supportive policies and a favourable domestic environment.” How come politics has not caused the economy to stumble in India, and why does Pakistan need the military to ensure growth when India does not? One needs to get to the root of this puzzle rather than take it as a fait accompli.
Given that a major and striking difference between India and Pakistan since 1947 has been the role of the military in governance, could it not be argued that it is the military in Pakistan that has distorted the political process and caused the economy to stumble time and again?
Mr Burki has also drawn attention to the socialist countries in Eastern Europe and Central Asia in the context of nation-building. The question one could ask is that if the total suppression of politics in these countries has not led to healthy and sustainable nation-building (irrespective of short-term effects on economic growth), what is the guarantee that a partial suppression of politics in Pakistan would yield the nation-building that Mr Burki seeks? As Mr Burki himself notes: “The area of development has been subject to fads. Nation-building is now back in fashion.” If indeed it is a fad that has proved a failure in the past, what is the basis on which Mr Burki recommends it as the future development policy for Pakistan?
Mr Burki’s thesis also needs to be evaluated against the 10 years of military rule under the direction of President Ayub when the price of the economic growth purchased was paid with the political tragedy in East Pakistan and the 10 years of military rule under President Zia when the suppression of politics let in the demons of fundamentalism into the vacuum. What is the guarantee that 10 years of military rule under President Musharraf would avoid such pitfalls?
Mr Burki knows that the people of Pakistan “don’t worry about Pakistan’s foreign policy.... They don’t even talk about Kashmir....Their main concern is with the availability of services.” Yet the military under the direction of President Musharraf made the Taliban their big cause and even now, with a gun to its head, continues to proclaim that Kashmir is the supreme cause of the people of Pakistan for which the latter are willing to endure all sacrifices in terms of economic growth and availability of services. How much money that could have gone to the provision of services has the military diverted to its foreign policy objectives which Mr Burki states the people of Pakistan don’t even want to talk about? Could this be one reason why the country needs representative political governance free of manipulation rather than a military rule that can so blatantly ignore the desires of the governed?
Mr Burki also notes that Pakistan is not perceived as a “safe place in which to do business” as a factor in the lack of economic growth. How would Mr Burki allocate the responsibility for this situation between the politicians and the ISI which has been calling the shots all along?
Mr Burki is sure that “Pakistan’s economic future lies in the hands of the new generation of politicians who took office after the election of October 2002”. The only thing that distinguishes the new from the old generation of politicians is the fact that the former “accepted the system” under which they were elected. At one time the future of Pakistan lay in the hands of a new generation of Basic Democrats who accepted the system under which they were elected. Why is it that the future of Pakistan always lies in the hands of the military and an unproven generation of new politicians who accept the system under which they have been selected for duty?
Mr Burki claims that “the economy has begun to grow.... Disturbing it would only create another period of political chaos and economic stagnation.” How is this any different from the Decade of Development?
In support of deferring democratic governance, Mr Burki argues: “These [political chaos and economic stagnation] are not what the people of Pakistan deserve at such a crucial time in their history.” How is it that the military always knows better what the people of Pakistan deserve at all the crucial times in their history? And what is the basis for suggesting that the military holds the interests of the people of Pakistan dearer to its heart than the politicians it has discredited? And wherein lies the hope that the new generation of politicians it discovers at crucial times are any better?
Mr Burki has raised more questions than he has answered. ILTIFAT HUSSAIN
Lahore
THE news-item under the heading ‘Sales Tax Act, 1990, amended’, appearing on page 10 of your newspaper of June 25, does not take into consideration the problems which will be created by the amended section 73 of the Sales Tax Act, 1990.
The previous version of section 73 provided for payment by a banking instrument and the proposed version also provides for payments through banking instruments. So far so good. However, the new section makes it obligatory that it should be from “a specified banking account of the buyer to the specified bank account of the supplier”. This is where the problem will arise, resulting in adverse impact on liquidity and operations. It will also result in long litigation between the taxpayer and the tax collector.
There are manufacturers and suppliers who use a wide network of 400 to 500 dealers spread throughout the country for selling their product. These dealers are required to make payment to specified banking accounts of the manufacturer. The manufacturers can ask their bankers to accept payment only by a banking instrument, instead of cash, but how can they ask its dealers to declare the particulars of their banking account and how can the manufacturers ensure that thousands of payment being made by the dealers through banking instruments are coming from the specified banking account of the dealer?
A dealer may change several banking accounts in the course of a year without informing the manufacturer. Why should he bother to take the trouble of conveying his bank account number whenever he changes it? It is the manufacturer who has to face the music and not the dealer. The manufacturer may be denied the input refund while calculating his sales tax liability for a month.
Last year the Central Board of Revenue issued Sales Tax Ruling/Instruction No. 58/2002, dated 17th July, 2002, saying that the payment received from unregistered buyers through other than banking channels will remain unaffected by section 73 “provided further tax is charged, levied and paid on such supplies”.
It is not known whether this circular still holds ground because section-73 has not been amended but has been substituted. In order to stop the possibility of harassment to the organized section, it is necessary that the Sales Tax Instruction No. 58 of 2002 is revived to remove the words from one specified account to another from section 73 of the Sales Tax Act, 1990. Unfortunately, the implication of this section has not been appreciated or discussed by various commentaries issued by tax consultants and the seminars held.
R. T.
Karachi
THIS refers t Mir Muhammad Hassan’s letter titled “Public safety commissions” (July 7). It was encouraging to know that the commission has started providing relief to the people of Badin. Ironically, we in Karachi are not so fortunate.
The city council of Karachi elected the members of district public safety commission in November 2001, during its earliest sessions, but owing to unknown reasons it remains unnotified to date. Being one of the six elected members, I and our elected body unitedly approached the governor’s secretariat several times through city nazim Naimatullah Khan during the time of governor Mian Mohammad Soomro and also the present governor for the issuance of the relevant notification.
The high-handedness of the Karachi police is well-known and the people of this city deserve relief in the form of a commission, to whom they can approach in times of distress.
At the same time, the commission should have the power to provide redressal to police officers if they are asked to follow illegal orders. In the light of the disturbed law and order situation, the need for the commission has been felt even more.
I hope the NRB will take notice of this undue delay and issue directives for corrective measures immediately.
ZAHID SAEED
Karachi
WILL the chief of the Karachi Electric Supply Corporation kindly come to the aid of more than a hundred thousand people who are subjected to regular torture by his staff in these torturous months in three blocks of Gulshan-i-Iqbal?
For some mysterious reasons, electricity supply to Blocks 3, 4 and 4-A of Gulshan-i-Iqbal is cut off immediately when it starts raining. Then power remains cut off for 24 or more hours. This has been the practice throughout the months of May, June and July. Amazingly, all other blocks in the neighbourhood burn bright and brilliant.
One can understand power failing if there is a heavy downpour and for a long time. However, in the case of these three blocks, power is switched off immediately as a few drops of rain fall.
Last Monday, power was cut off when it started raining at 2pm. It was restored at 8.30 the next morning. Earlier in the month, electricity was cut off at 2pm and was restored 26 hours laster — barring a three-hour respite.
Would the KESC chief be kind enough to transfer that sadist who practices this tyranny regularly on us and post him to some place where power supply to areas inhabited by army officers is controlled? This will gave latter an idea of the kind of torture hundreds of thousands of people in these three blocks are regularly subjected to by this maniac.
JAMAL JAVED
Karachi
SENDING troops to Iraq would be a bold and wise step on the part of Pakistan. It won’t be an occupying force. An occupying force is that which takes over a country, sends its civilians to live there and forces the original inhabitants to leave their homes.
The Pakistan contingent would truly be a peacekeeping force. Of course, America wants to build a long-term relationship with Iraq. For Pakistan, it is an opportunity to be at the driving seat of the Islamic world. This would provide us with an opportunity to build new relations with the Iraqi people. This would be on occasion when they would come across the Pakistanis, through a process of interaction with the Pakistani troops.
The Islamic world needs to wake up. It is also the time to bridge the gap between the Islamic world and the West. Other countries already have troops in Iraq, like Australia and some European states. We can’t be slaves of the Islamic world, nor of the western world. We must follow a path that is fair to both.
If we have our troops in Iraq, we can tell the United States that we are there for peacekeeping, and not for occupying the Iraqi territory.
SYED M. A. NAQVI
Atlanta GA, USA
THE killing of innocent people in Quetta is a clear proof of the jungle law in Balochistan. Every other day many people are murdered because they are not strong enough to protect themselves from terrorists.
Armed killers have been given a free hand by the government to murder the poor who always abide by the law. And this is their ‘crime’ for which they are punished. Wicked killers enjoy the support of the government, pro-Taliban elements and tribal warlords.
We, the peace-loving and unarmed people of Quetta, are at the mercy of the killers and terrorists.
We are left with no option but to send SOS to our countrymen: for God’s sake, protect us.
CONCERNED CITIZENS
Quetta
THE sole superpower, America, having failed to find Saddam was able to find 90 rulers in the world to talk to them for sending their troops to Iraq to relieve the American soldiers. Their self-imposed duties to find Osama bin Laden and Mulla Omar have also failed even after searching them in caves, on land, in the air and also over the seas, in scores of countries.
Such exercises do indicate that the US standards of international dealings have gone down as compared to the Cold War era.
Z. A. KAZMI
Karachi
PRESIDENT Gen Pervez Musharraf was accorded a warm welcome at Camp David and now the visit is being described as the biggest achievement of Pakistan. But the nation now knows the cost of such a welcome.
The isolation of the NWFP is one such cost. Turkey was offered about $50 billion for providing help to the United States, yet it did not accept the offer. Why are we so naive?
As an accountant, I can say that for a meagre $3 billion and a trip to Camp David, President Musharraf has incurred liabilities of trillions of dollars for the nation.
The entire trip was a colossal loss. Perhaps his American friends, Gen Franks and Gen Powell, have taken him for a ride.
The conclusion is that the finance minister and the State Bank of Pakistan governor have failed to educate the general in the preparation of the balance sheet.
DAWOODI MORKAS
Karachi
SEVERAL Islamic countries, including Pakistan, have not yet established diplomatic ties with Israel.
These countries may well be encouraged to consider recognition if Israel vacates all captured Arab territories and starts winning Arab hearts. Israel is a reality and so is the state of Palestine.
JALAL AL-KARIMI
Karachi
APROPOS of Dr Mubarak Ali’s article, “The problems of conducting historical research in Pakistan” (June 15), I would like to mention some basic facts about the Pakistan Historical Society which are as follows:
The Pakistan Historical Society (PHS) was founded in 1950 by our founding fathers, with a view to organizing and promoting historical research in Pakistan. The Journal of the Pakistan Historical Society (1953) has continued publication all these years without interruption. It has recently published a Quaid-i-Azam special issue (No. 1 & 2 of 2002) which, edited by Prof Sharif al Mujahid, has won general acclaim. The journal, specializing in Indo-Pakistan history, has an international clientele.
The membership of the Society is open to all persons having an interest in history, but unfortunately the learned author has never applied for its membership. Even during the past years, several scholars, researchers and teachers applied and were accepted as members, and three of them have been co-opted as members of its executive committee recently. Hence, his contention that it didn’t allow other historians to become its member is not based on facts. Our members include scholars even from Bangladesh and Malaysia.
The society holds election every three years, the last having been held in April last. The process of election is absolutely transparent.
Its three former presidents were Mr Fazlur Rahman, Minister for Education in Pakistan’s first two cabinets, Dr I. H. Qureshi and Hakim Mohammad Said. The Society has received an annual grant from the federal government since its inception but during the tenure of its second president, Dr I. H. Qureshi, the Bhutto government, for its own unspecified reasons, stopped the grant. The Society, however, survived because of Hakim Mohammed Said’s philanthropy and patronage. This patronage fortunately has been continued by his worthy successor, Mrs Sadia Rashid. To help it further, the Hamdard Foundation also bears the expenses of publishing the journal.
The Society has so far published 85 books comprising monographs and texts of original sources and translations. In 1998 its book on the Sirah, Muhammad (SAS) Life and Times, had been judged as the best book in its genre and had received the best book award. Since the death (1989) of Dr Moin ul Haq, its founder-secretary, the society has continued undeterred with its research and publication programme, having published nine books; two others are in the press. Since the Society believes in doing durable work without indulging in undue publicity, its accomplishments may well have escaped Dr Mubarak Ali’s attention.
In order to promote research and provide interaction among the historians, local as well foreign, the Pakistan Historical Society has so far organized 19 conferences, the last one being the golden jubilee session, held at Karachi in October 2001. Some 40 delegates, besides observers from all over Pakistan and abroad (e.g. Brunei, Malaysia, Bangladesh, India and Sri Lanka), participated in the conference.
I hope the above-mentioned information would help put the record straight.
ANSAR ZAHID KHAN General Secretary PHS, Karachi
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