The third quarterly report (2003-04) of the State Bank of Pakistan, released on Tuesday, is hopeful that the 6.6 per cent economic growth target set for the coming year will be achieved.
At the same time, the report warns that the strong growth is "not without costs" and points to some areas of concern. These include fears of a rise in inflation and the appreciation in interest rates as a consequence, the depreciation of the rupee against the dollar as a result of a worsening external account deficit and continued poor performance of the Central Board of Revenue in its tax collection drive.
At the same time, the SBP report says that the silver lining of high growth is that, historically, poverty in Pakistan has declined in such periods. The report also talks about the challenge of poverty reduction and suggests that more jobs need to be created for the unskilled labour class in the short term while training should be given to these workers so that in course of time they can qualify for jobs requiring a higher order of skills.
Overall, the State Bank gives the government a mixed report card. It criticizes the handling of the wheat shortage earlier this year and is also wary of the shortfall of Rs5.6 billion in development spending.
At the same time, there is appreciation for maintaining fiscal discipline, positive developments in the banking sector and overall sound macroeconomic management. While this is encouraging, the main challenge for the government in the coming year would be to address the issues of inflation, the growing deficit in the external account and low tax collection figures.
In all these areas, there should be an element of consistency and determination. If these issues remain unresolved, all the achievements made in other areas of the economy will be overshadowed, which would not auger well for the country.
Prisoners' rights
The US Supreme Court's decision to strike down the Bush administration's policy of denying terrorism suspects the right to defend themselves is a long over-due judicial step on the issue.
The judgment came after 14 of the more than 600 detainees at the American naval base at Guantanamo Bay, Cuba, filed a petition challenging Washington's policy to detain them indefinitely without granting them the right to a trial before a US court.
The Supreme Court has ruled that the principle of habeas corpus (under which prisoners can challenge their detention) relates not to those who are imprisoned but to the party which is responsible for detaining them.
In the court's view, the legal rights of the prisoners remain unchanged regardless of where they are being held. The court has disagreed with Washington's view that non-US citizens labelled 'enemy combatants', regardless of their guilt or otherwise, do not have the right to defend themselves in a US court.
It says that the view that the naval base in Cuba is outside US territory and hence American law does not apply there is also untenable because for more than 100 years, Guantanamo Bay has been under America's "complete jurisdiction and control".
This judgment may have come very late, and only after two lower courts had upheld the US government's view. However, it will perhaps now force the Bush administration to alter its policy of holding foreigners suspected of involvement in terrorist acts in prison without a trial.
It shows that the superior judiciary in America is quite aware of the fact that unbridled executive authority can sometimes lead to terrible injustices; thus, it is willing to act to limit the use of executive authority.
One hopes that the US government will be chastened by this ruling and modify its policies vis-a-vis foreign detainees, held not just in Guantanamo Bay but elsewhere too - in places like Iraq and Afghanistan in the course of its war on terror.