| 24 May 2004 | Monday | 04 Rabi-us-Saani 1425 |
Commonwealth re-entry
Problems in Gwadar
It would be unfortunate if next year's federal and provincial budgets are prepared on the basis of the current NFC award which has been two years overdue for replacement. Many fundamental socio-economic changes have occurred since 1997 when the last NFC award was adopted.
That the federal government and the provinces could not reach a consensus on fixing their respective shares in the divisible pool even after protracted negotiations lasting for more than two years is regrettable.
More so because at least in three provinces the same political alliance is in power as at the centre. The impression one gathered from the way the negotiations were going on over the last two years was that though the provinces remained adamant on the 50:50 formula, they would finally come round to accepting the federal government's proposal for a 47 per cent share for the provinces, inclusive of subventions and grants and also 2.5 per cent from sales tax proceeds to be passed on to the local governments.
But this appears to have been a misleading impression, created deliberately by the federal government to take the process to a point so near the budget that the provinces will have no alternative but to accept the previous formula as the basis for the next budgets.
Indeed, on a closer scrutiny of the formula proposed by the federal government it looks no different from the basis on which the last NFC award was finalized, except for the addition of 2.5 per cent from sales tax proceeds which in any case has to be passed on to the local governments. This may add to provincial governments' misgivings on this score.
The divisible pool has expanded manifold in the last seven years. So even if the federal government had to accept a share of 43 per cent in the divisible pool with a guarantee to the backward provinces that they would continue to get federal grants and subventions, the resources available to it would have been more than what it had been getting under the award until 2002.
Moreover, there are a number of federal functions that can easily be passed on to the provinces and even if that does not enable the centre to make ends meet, then federal projects located in the provinces could be transferred for the provincial budgets to take care of them.
Also, the federal government has many avenues which it can tap for filling any gaps that would emerge in an emergency. It can also economize on many heads. As it is, even this year on a number of federal projects only 60 per cent of allocations have so far been utilized.
So, all in all, the federal government is in a better position to make do with a smaller share in the divisible pool which in any case would be larger in quantum than what it used to get in the past.
Does the government want to continue with the ad-hocism that it has been practising on this score in the last two years? This would again be totally undesirable. One only hopes that sanity prevails all around and the provinces will give up their demand for a 50:50 formula while the federal government will agree to a 47:43 formula excluding subventions and grants. That may prove a reasonable basis for a settlement.
Commonwealth re-entry
There will be as many opinions on Pakistan's restoration as a Commonwealth member as there are political voices in this country. Even though Britain and Australia did work from behind the scene for Pakistan's re-admission into the 53-nation club, and this is seen by some as rewarding General Musharraf for his role in the global war on terror, there is reason to believe that the Commonwealth Ministerial Action Group (CMAG) that decided to restore Pakistan's membership had also taken other developments into account.
The secretary-general of the Commonwealth has said that the CMAG will again review Pakistan's democratic credentials in September when the group meets in New York on the sidelines of the UN General Assembly meeting.
Saturday's decision reverses the Commonwealth's consistent annual and sometimesself-righteous verdict on Pakistan's suspension since the military take-over in 1999. Last year it pointed out that the current political dispensation under a military ruler as president was not acceptable to it as a democratic set-up.
The reversal now seems to have been based on President Musharraf's subsequent agreement on the LFO with sections of the opposition under which he promised to give up his military post by the end of 2004.
The Alliance for the Restoration of Democracy, which includes the PPP and the PML-N, continues to express reservations on the existing system and the PPP even wrote to the Commonwealth secretary-general urging him not to restore Pakistan's membership just yet.
It is notable that such concerns are reflected in the secretary-general's statement which pointedly said that the issue of the separation of the offices of the president and the chief of the army staff was among the clauses of the Musharraf-opposition agreement that Pakistan had to fully implement.
Commonwealth membership is not a life-and-death issue, but if we have to be part of it, then it's best that we do not remain on anyone's sufferance. The moral, therefore, is that we should not only adhere to agreements already reached on the country's political framework, but swiftly move towards a truly democratic parliamentary and accountable system. We should be accepted as a democratic country on the strength of our own credentials, not on the basis of how someone may look at us at a particular time.
Problems in Gwadar
The firing of six rockets in the vicinity of Gwadar airport on Friday once again highlights the worsening security situation in this coastal town. Since the death of three Chinese engineers earlier this month in a bomb blast, there are fears that the town is being targeted by terrorists and other undesirable elements.
Gwadar is home to a $250 million port development project, a strategically important venture being built with Chinese help and funding. This project will play an important role in bringing prosperity to the impoverished region. The recent acts of violence, however, can dim those prospects by scaring away investors, both domestic and foreign.
At the same time, the government needs to be mindful of local grievances and conditions prevailing in Gwadar so that these are not exploited by vested interests. The crackdown by law enforcement agencies in the town following the bomb blast has created a shortage of basic foodstuffs the bulk of which is smuggled in from neighbouring Iran.
In the absence of proper road links with the rest of the country, Gwadar largely depends for its food and other vital supplies on that source. To avoid the kind of disruptions and the resultant shortages being experienced these days, it is important to develop alternative routes of supply from within the country.
While the people of Gwadar are generally happy with the massive development projects being undertaken in their town, they have also been complaining about not being given a legitimate share in jobs and contracts.
These sentiments leave space for political exploitation of the issue of jobs and land acquisition. Keeping all this in mind, it is important to take steps to remove such grievances by giving the local people a more meaningful share in jobs and economic opportunities opening up in Gwadar. This may call for short courses for skill development and other ancillary needs essential to qualify for various kinds of jobs at the project.