| 28 June 2004 | Monday | 09 Jamadi-ul-Awwal 1425 |
Hydroelectric potential
Banking sector's condition
Closure of factories in KEPZ
SME sector
Improving law and order
Smoking lobby
Allotment of plots by OPF
Encroachments
Discrimination against women
Karachi priorities
Withholding tax
US appreciation
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The idea of the National Security Council (NSC) which has been indoctrinated into the Constitution of 1973 was first adopted by the late general, Mohammad Ziaul Haq, in 1985. A national security council was also set up by president Ghulam Ishaq Khan by his own executive order on General Zia's death in August 1988.
A council for defence and national security was set up by president Farooq Khan Leghari after the ouster of the second Benazir Bhutto government and the dissolution of the National Assembly on November 5, 1996. The idea of an NSC was once again floated in October 1998 by the then army chief of staff, General Jehangir Karamat.
Nevertheless, through a parliamentary act in April this year, a 13-member advisory body called the NSC was constituted by the government, which held its first meeting in Islamabad on June 24. The MMA boycotted the meeting, saying that the NSC seemed a supra-constitutional body which appeared to be dominated by the armed forces of Pakistan. Hence, the opposition has vowed to dissolve the institution.
For more than 25 years, the army ruled the country. Failure of our political system and frequent collapses in our democratic system forced the army to take over and saved the best interests of the country.
Political leaders from Iskander Mirza to Benazir Bhutto to Nawaz Sharif all ruled this country as their family estate. Between 1988 and 1999 there were four civilian governments. None of them could complete its term. Each time the army chief was asked either to intervene or become an arbitrator in disputes between the prime minister and the president. Consequently, the president by invoking Clause 58-2 (b) sacked the governments of Benazir and Nawaz Sharif.
The institution of the NSC, if allowed to function smoothly, could be an effective check against any kind of political conspiracies, and an instrument to prevent military coups. It could also ensure functional democracy and provide necessary equilibrium needed among the most important organs of the state and government, i.e., the president, the prime minister and parliament, and last not the least the army chief.
Due to fast emerging geo-strategic trends in the region, and unavoidable compulsions of society and the economy, proper functioning of the NSC is a must.
On July 1, 2002, General Musharraf emphasized formation of an NSC to (i) promote foreign investment in the country, (ii) enhance harmony among the provincial governments, (iii) exercise the principle of accountability across the board, and (iv) restore confidence of the people of Pakistan. The formation of the NSC does not mean permanent subjugation of the political system to the armed forces. It is an effective instrument for the continuity of the political and democratic system in the country.
A strategic culture should be promoted with the help of the NSC. Needless to say, the NSC is a working reality in about 50 leading democratic countries in the world, including India. A simple, true and functional NSC is necessary for democracy in Pakistan.
S. Q. AFZAL RIZVI
Karachi
Hydroelectric potential
Some time back I read a letter in Dawn from an overseas Pakistani pleading for the utilization of the vast hydroelectric potential in the country, in view of the growing oil shortage.
I draw the government's attention to the pioneering work done by one of its own organizations in the 1970s. It was the Appropriate Technology Development Organization (ATDO). It introduced hydroelectricity generation in a village in Shanglapar of Swat. Investment in the construction of a power-house, hydroelectricity generating machinery and digging water channels was made by villagers on a cooperative basis. They themselves carried out the construction work, including the digging.
The ATDO trained them and some Peshawar-based masons in fabricating a simplified water turbine. The villagers had the turbine fabricated from the masons and purchased the generator from the market.
I was chairman of the ATDO but after resigning from the government I lost touch with that hydroelectricity project. It was only my PILER (Pakistan Institute of Labour Education and Research) colleague, Mr Sher Alam, who told me that there were hundreds of mini- and micro-hydroelectricity generators in that area now.
Mr Alam belongs to that area. I had this fact confirmed by the ATDO's successor organization, the Pakistan Council of Renewable Energy Technology (PCERT).
I urge the government to take notice of this rich natural and human potential. As shown by the Shanglapar electrification project, Pakistanis have unlimited enterprise and if reinforced by political will, they can develop the country themselves.
For fast expansion of hydroelectricity potential in Swat, Chitral and the Northern Areas, the government has to provide low interest, long-term financing and experienced engineers to provide guidance. The people will do the rest. May I emphasize that most ordinary Pakistanis, in contrast to many feudals, businessmen and industrialists, are honest and will not default?
GHULAM KIBRIA
Karachi
Banking sector's condition
This refers to a Taxpayer's painful experience (June 8) that he had at the National Bank's Clifton branch, Karachi.
Pakistan's banking sector seems to be on its decline. The financial wizards have done nothing to make banking people-friendly. To the contrary, under the aegis of the governor of the State Bank and the finance minister, small account-holders are being pushed against the wall.
Readers of Dawn will be surprised to learn that the State Bank of India, one of the largest commercial banks, has its branches in Toronto and Vancouver for more than a decade, extending various facilities to the Indians settled in Canada.
In December 2003, the ICICI Bank, India's second largest financial institution, opened its branches in Canada, employing individuals from a variety of cultural backgrounds and providing a broad range of financial services to the Indo-Canadian community across the Greater Toronto Area and Vancouver, BC, through a multi-channel access network, including ATMs, call centres and the Internet.
The bank is soon going to launch a product for potential immigrants to Canada with Indian background, and will be providing them with a savings account, a master credit card and term deposit, before their departure from India and Gulf countries. The immigrants will also be able to check account, car and home mortgage on reaching Canada.
I understand the National Bank of Pakistan is in the process of opening a branch in Toronto and later in Ottawa, which may become operational in the first quarter of 2005. What services they are going to provide to the Pakistan-Canadian community and what kind of staff they are going to employ is anybody's guess.
There are numerous bankers of Pakistani origin in Canada who will surely be people-friendly.
LT-COL (retd) SYED AHMED
Mississauga, Ontario, Canada
Closure of factories in KEPZ
Whenever the government announces a project, investors prepare a feasibility report. Investment worth billions of dollars is made, but all of a sudden an amended SRO (statutory regulation order) stating that the facility is withdrawn wrecks the whole process and the project is killed. Factories head towards closure, investment goes down and workers are rendered unemployed.
This has happened in the Karachi Export Processing Zone. According to SRO No. 881(I)/80 dated 23/08/1980, investors in the KEPZ were allowed to sell all their goods in Pakistan, but all of a sudden an amended SRO, No. 461(I)/2004 dated 12/06/2004, announced in the budget restricted this sale to 20 per cent, closing down most of the factories.
Because of variable global trade, it is not necessary to have export orders round the year. So, to keep factories running the facility to sell 100 per cent goods to Pakistan supported the investors greatly. It was an attractive decision for investors to sell their goods in Pakistan. But from now on, since the facility has been withdrawn, investors will think twice before investing their money. In the absence of an export order, they will have no use for their stocks, employees and factories. This horrifying truth will lead to failure of new export processing zones in Pakistan.
This sudden change in policy will lead to the following results:
a. Investors will prefer an international export processing zone to the one in Pakistan, because in the international zone, he can sell his products to the whole world, as well as to Pakistan.
b. Thousands of workers will be rendered jobless.
c. With the closure of factories, revenue will dwindle (i.e. EPZ charges, withholding tax).
d. On import from other countries, foreign exchange will go out of the country.
FARRUKH HANIF
Karachi
SME sector
The small and medium enterprise sector is wrongly referred to as an undocumented sector.
In Pakistan we have a micro sector, a small and medium enterprise sector and a large-scale enterprise sector.
The micro sector is undocumented but not the small and medium enterprise sector because the income of micro entrepreneurs is below the taxable limit and they are not on record. But every SME has an address, a tax number and a bank account. SMEs pay tax either annually or through deduction at source or withholding tax.
All SME importers and exporters are paying withholding tax and all imports and exports have to be routed through banks. So the question of non-documentation does not arise.
We hope the relevant authorities and policymakers would take due notice to correct wrong notions, if any, that the SME sector is undocumented. We request the Central Board of Revenue to release a list of SME taxpayers for the benefit of officials who are unaware of this fact.
ZULFIKAR THAVER
Karachi
Improving law and order
The law and order situation in Karachi is disturbing. The city's population, as well as infrastructure, have grown manifold, and lack of proper planning has created crises of healthcare, electricity and water.
People at the helm of affairs have to take immediate steps to address the causes of the deteriorating law and order, population explosion and uncontrolled urbanization.
In view of the assassination of Mufti Nizamuddin Shamzai, the attacks on two mosques and the serving corps commander in the past couple of months, the following measures should be adopted to improve law and order in the city and other parts of Sindh:
1. Karachi may be declared a depoliticized city. A special operation clean-up should be carried out by the army to eliminate terrorists.
2. The city should be placed under the direct control of a federal government-appointed chief administrator.
3. Hyderabad should be made the capital of Sindh and all provincial government offices, including the Chief Minister's House and the Governor's House, should be shifted to Hyderabad.
4. Special residence passes should be issued to every citizen of Karachi. An elite police force may be established, which should be selected from among graduate citizens of the city, with no political background.
5. All entry routes to Karachi should have a checkpost which should not allow people without residential permits or temporary work permits to enter the city.
6. A temporary permit may be issued to those who come for provision of essential goods to the city.
7. Mohallah/tehsil peace committees should be established, which should have members with no political background or contact/membership of the banned parties. Preference may be given to retired government and military personnel of grade 18 and above.
8. All undesirable people/mendicants/persons having no proper business should be returned to their respective provinces without any delay. No further migration of people from the other provinces should be allowed.
9. No unplanned colony should be allowed inside the city.
10. A procedure to issue work permits should be introduced.
11. Student and labour unions should be banned.
The following steps are recommended for the other provinces:
1. All provinces should be subdivided, taking into account the language bond and natural geographic layout, to reduce hatred among them on account of their sizes.
2. On the pattern of Karachi, in all major cities residential permits and work permits should be introduced to contain rapid urbanization.
3. Mega projects like the Kalabagh dam should be started after making their benefits known to the general public through the media.
4. Efforts be made to establish cottage and small industries near all medium towns to discourage migration of people to major cities.
5. To make Pakistan a welfare state, taxes as adopted in the UK/European Union should be imposed to allow the common man to have free education up to matric, and free medical cover and unemployment allowances.
6. The police department should be screened properly, and those involved in malpractice and other cases be removed from service.
ENGR. LT-COL (retd) QABIL SHAH TIRMIZI
Karachi
Smoking lobby
I would like to warn the relevant quarters that there is a serious move in the offing to bring back cigarette and tobacco advertising onto the broadcast media. This is being done at the behest of a senior minister in the government and comes despite stiff opposition from the health ministry.
At a time when the health minister has been elected to head the World Health Assembly and has recently signed a convention against tobacco use, it is sad that the government wants to undo all this goodwill. Pakistan will have the ignoble distinction of becoming the first country in the world to reverse its ban on tobacco advertising.
It is my understanding that all this is being done at the behest of a new international cigarette brand that will be launched in Pakistan soon. The argument being given is that lifting of the ban will help revive the financial fortunes of PTV.
It is hoped that someone in authority takes note of this and tries to prevent this from happening.
NAYYAR AZIZ
Islamabad
Allotment of plots by OPF
I am an overseas Pakistani and live in the UK. In response to an advertisement of the Overseas Foundation, Islamabad, inviting applications for allotment of plots in OPF Valley Zone V, Phase II, Islamabad, in 1996, I applied for a plot and deposited all dues. Possession of the plot was to be handed over to me in mid-1999, but I have not been intimidated about it. Development work has also not started in the area despite the lapse of eight years.
I request the president and the prime minister to intervene in this matter and ensure that the project is completed as soon as possible.
MOHAMMAD HANIF
Coventry, UK
Encroachments
This has reference to the report published in Dawn (June 14) that the Lahore district nazim has ordered that some encroachments on the central drain crossing Jail Road, Ferozepur Road and Katcha Lawrence Road should be spared because LDA authorities had allotted "plots" on the drain to illegal occupants. He was said to have ordered proceedings against LDA officials who had made these allotments.
The nazim's attention is drawn to the fact that illegal allotments made by any authority do not confer ownership rights on the allottees.
LATIF QURESHI
Lahore
Discrimination against women
Once again the International Islamic University in Islamabad has flouted international norms and gone against the constitutional protection for women as full citizens. As in previous years, the university has again denied admission to women in selected academic programmes. None of these exclusions makes sense.
Regretfully, national newspapers continue to carry the relevant ads without leading to any protest.
Can one expect suitable action by the ministry of law and human rights, the ministry of education, or the Higher Education Commission?
A. ERCELAN
Karachi
Karachi priorities
Various letters appearing in this paper have questioned the spending priorities of the City District Government Karachi. There are numerous examples.
These days a mechanized overhead bridge is being built at great expense on University Road, though a normal one would have done just as well and the money saved could have been spent on the broken service roads that create havoc for motorists in the area.
SYED AZIZ ALI
Karachi
Withholding tax
It is gratifying to observe that in the federal budget, withholding tax in many cases has either been totally removed or considerably reduced, thus proving that the circumstances under which it was introduced do not exist anymore. In fact, the finance minister should have announced its abolition. Such as action will justify the oft-repeated claim of the government that the financial position of the country has improved.
A. M. SAYIED
Karachi
US appreciation
The US appreciation for "all the work Pakistan is doing in South Waziristan" and "for the success in eliminating former Taliban fighter Nek Mohammed" (Dawn, June 20) reminded me of a quote of Ruskin.
In Crown of Wild Olive, Ruskin states: "Some slaves are brought with money, and others by praise. It matters not what the purchase-money is. The distinguishing sign of slavery is to have a price, and to be brought for it."
M. PEERBHOY
Karachi
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