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DAWN - the Internet Edition



10 September 2004 Friday 24 Rajab 1425

Letters


Need to classify SMEs
Anti-Muslim violence in Nepal
Losing our loved ones
Russian school massacre
'Voiceless & indifferent'
Priorities for new cabinet
Suggestion to Karachi DHA
Contaminated water
PCB and Bari
Defamation bill
Accused or convicted?
Musharraf's popularity




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Need to classify SMEs


The government intends to adopt a formal definition of small and medium enterprises (SMEs) for making its various measures and rules effective and to ensure a balanced growth of the SME sector. For this, proposals are being invited by the Small and Medium Enterprises Development Authority from various stakeholders.

At present, enterprises with an invested capital from $50,000 to $100,000 are classified as SMEs. Recently, the State Bank has defined SMEs in the category of manufacturing, trading or service and as enterprises each having net sales not exceeding Rs300 million according to their latest financial statements. Neither definition is considered comprehensive or factually representing the SME sector.

In view of the diversity of business, the complexity of activities and its role in the growth of the national economy, it is important to define the SME sector through a well-thought-out plan. As a matter of fact, the size of such enterprises is very relevant to the sector, which is required to be determined carefully.

There is no universal definition of SMEs. Most countries adopt a definition according to their own criteria, mostly quantitative, either based on the number of employees or on the turnover/income or assets of the business.

For instance, the European Commission defines an enterprise having less than 250 employees, a turnover not exceeding 50 million euros and a maximum balance sheet of 43 million euros as medium.

According to this definition, enterprises having less than 50 employees, a turnover of not over 10 million euros and a maximum balance-sheet of five million euros are classified as small. Those having less than 10 employees and the maximum turnover of two million euros are called micro enterprises.

In India, only medium enterprises are defined, and that too in the industrial sector only. Enterprises having total assets of plant machinery (excluding land and buildings) not exceeding Rs10 million are termed medium. There is no definition for small enterprises, but micro enterprises are those which have total assets of plant machinery not exceeding Rs2.5 million.

In many countries which are in economic transition, such as the Central Asian Republics and the East European countries, there are no definitions as yet for SMEs.

In other countries of this region the size of an enterprise is determined simply by the number of employees it has, irrespective of its turnover and/or total assets. Albania defines an enterprise with less than 10 employees as micro, in the range of 10 to 40 employees as small, and with employees 50 to 250 as medium.

Similarly, in Rumania, an enterprise with one to 20 employees is small, while one with over 200 employees is medium. In Slovakia, an enterprise having up to 24 employees is considered small and over 500 employees as medium. In other East European countries, a business concern with fewer than 50 employees is considered a small enterprise.

The classification of SMEs in Pakistan is a difficult task, given the level of education, business attitude, mindset of entrepreneurs, absence of financial documentation and other constraints.

In order to formulate a coherent definition of the SME at the national level, we may take a cue from other nations and adopt a definition in vogue in a country where the socio-economic environment, needs and conditions are similar to Pakistan.

Indeed official adaptation of such a definition will play a key role in the transparent implementation of promotional measures for the sector. This will result in efficient use of resources, production of quality products at low cost, realization of our potential for enhanced exports and provision of additional job opportunities.

HUSSAIN AHMAD SIDDIQUI

Islamabad

Top of Page



Anti-Muslim violence in Nepal



The anti-Muslim fury unleashed in Kathmandu on September 1 was as deplorable as it was incredible. An angry mob attacked Pakistan's embassy, offices of Pakistan International Airlines, Qatar Airways and Saudi Arabian Airlines and the Egyptian embassy. It also vandalized the central mosque in a manner reminiscent of the demolition of the Babri Mosque in India. The violence resulted in the imposition of curfew.

The occasion was a protest against the killing of 12 Nepalese job-seekers in Iraq. Because their killers were Muslims, the mob fury was directed against Muslim interests.

The incident was surprising because Nepal, even though it is a Hindu state, has always displayed remarkable tolerance towards Muslims. It has always resisted attempts by India's militant Hindu outfits to foment anti-Muslim feelings in Nepal. And with Pakistan it has always maintained cordial relations.

Pakistani sources have reportedly pointed the finger at the Indian terrorist outfit, Pashupati, which is a sister organization of the Hindu fundamentalist party, Shiv Sena.

The Nepal government took immediate steps to control the situation. But the very fact that Indian elements have infiltrated into the Nepalese society underscores the urgency for adopting more proactive measures to combat the evil.

The government needs to explain to its people and convince them that the Nepalese workers were killed not because of their religion; the kidnappers have a quarrel with the US which is occupying their country, as well as any individual or country that coalesces or assists in promoting the US agenda.

They make no distinction on grounds of religion, race or nationality in picking their victims. They have seized Jordanians, Lebanese, Turks, Egyptians, Japanese, Italians, Indians, etc.

Islamabad has squarely condemned the murder of the Nepalese workers. PIA has resumed its flights. Hopefully, the evil-doers will be appropriately dealt with.

S.G. JILANEE

Karachi

Top of Page



Losing our loved ones



On August 13, when the county was in jubilant mood on its 57th anniversary of independence, a couple suffered serious trauma when their young son was shot dead in Karachi.

Returning to Clifton from Liaquatabad with his family, Murtaza's car was approached by a motorcyclist who requested him to open a window of his car. On doing so, the man ordered him to hand over his mobile. As he was about to hand over the phone, the motorcyclist shot him in the eyes and sped away.

His terrified and shocked parents could do nothing but ask for help. Two people took him to the Civil Hospital, but the hospital staff refused to touch him without an FIR. Murtaza was then taken to the Liaquatabad Hospital where he was treated at once. Family and friends gathered outside the operating room, praying for him. After an hour or so, he was taken to an ICU room.

On hearing the news about my friend being shot, I was in a deep shock and visited the hospital. As I climbed up the stairs, I saw Murtaza's family and friends all worried and tense.

After a few minutes' wait, I was allowed inside the ICU room where he lay all wrapped up in white bandages, plastic pipes running inside his mouth, and drips of glucose injected into his veins. At that moment all I could do was to pray for his life. But after 18 hours he died.

Four days later another misfortune befell the family. A sum of Rs125,000 was stolen from his father's shop. As I write this, Murtaza's father is in deep shock. What happened to my friend is not a unique case; it happens all over the country.

Who is responsible for this sorry state of affairs? Why are the government and police officials doing nothing to stop killing of innocent citizens and robberies? Are we going to live under the shadow of terror and do nothing?

ABDUL QADIR IMANI

Karachi

Top of Page



Russian school massacre



The tragic end to the school hostage crisis in Beslan, Russia, is a grim reminder of how terrorism continues to prevail in our world despite the efforts of so many anti-terrorist networks operating all over the globe. The incident sends a very negative message to the citizens of the world: no matter who we are or where we are, terrorism will always be a threat to us and our families.

The worst part of this tragedy, however, is that innocent children were made to suffer. There couldn't have been a more innocent target. They were forced to experience what no human deserves.

The psychological trauma that these children will face because of the grisly nature of what they witnessed will trouble them for long. As for those who lost their loved ones, the suffering and grief are beyond words.

What is important to realize is that in order to eliminate terrorists from our neighbourhoods, we need to be brave enough to continue our normal routine and not to let terrorist attacks dampen our spirits, for if we do, we will help the terrorists succeed.

We need to show them that the people of the world will never yield to their gruesome, unethical tactics which are intended to spread chaos and to impede progress all over the world.

We also need to show them that we are strong, and that no matter how big a hurdle we face, our courage and desire for peace, prosperity and success will help us jump over it. This will eventually cause them to succumb to our good ways of life.

SAAD AHMED KHAN

Karachi

Top of Page



'Voiceless & indifferent'



This is with reference to the editorial "Voiceless & indifferent" (Sept 7) which says: "We should all speak out more forcefully and clearly against all instances of such mindless terrorism instead of remaining trapped in peripheral matters."

What I fail to understand is how protesting against the French ban on headscarves means in any way that one is not revolted by senseless acts of killing all around us.

Be it the barbaric hostage incident in Beslan or the daily deaths of innocent people in Afghanistan, Iraq and elsewhere in the world, all these acts are a taint on humanity. But, although not violent, equally unfair is the French ban on headscarves and other religious headgear.

The government's argument that this is being done to promote secular forces in France is ridiculous. How can a place where I am not allowed to practise my faith freely be a secular nation?

Covering my head is a part of my faith. It is also a matter very personal and important to me. So, to have anyone force me to stop doing that is unacceptable. What is even more astonishing is when an editorial in one of the most popular newspapers in the Islamic Republic of Pakistan calls this matter "peripheral."

SADIA SIDDIQUE PECHUHO

Karachi

Top of Page



Priorities for new cabinet



Apropos of Mr Kunwar Khalid Idris's article "Priorities for new cabinet" and the editorial "A new political tone?" (August 29), I suggest the following for consideration:

Kashmir: The new prime minister has rightly said that "discussions should be in a peaceful environment". This requires an immediate ceasefire and a halt to the violation of human rights.

Law and order: The first priority should be to curb carjacking, which is serving as training for terrorists. To stop this, trained commandos should be used as decoys to immobilize carjackers and to eliminate the mafia.

Speedy justice: Minor cases such as those about ejectment of tenants should be dealt with at the local government level. This will substantially reduce the burden of courts. Also, the court recess period should be reduced to clear the backlog of cases.

Water storage: Huge water storage, almost equivalent to a big dam, is choked up in the rivers in Punjab. This may be restored by providing floodgates at the Marala, Khanki, Balloki and Punjnad headworks. This will also help check periodical floods and reduce heavy silting of canals, permitting water availability to tail-enders.

Besides this, underground water reservoirs can be increased by storing flash floodwaters in underground clay-made dams in suitable soil conditions in Balochistan, Thar, Cholistan, etc.

Freight system: There is need to improve our freight system. Eighty per cent of long-distance freight movements have been transferred from the rail network to roads during the past two decades, causing a loss of billions of rupees to the railways, and leading to heavy investment in the road infrastructure and vehicles/spares and fuel imports.

This happens because road transport uses 10 HP per ton as compared to the 1.5 HP per ton used by goods trains. The annual loss to the nation runs into billions of dollars.

It is suggested that most long-distance freight should be transferred back to the railways, improving essential railway facilities. Also, a rail mass transit system for large cities has been under study since 1974, without any success. Other studies by the World Bank and other consultants were not found viable due to high costs and unaffordable fares.

This is the reason why BOT efforts were also bogged down for want of proper incentives to cross-subsidize the costs and fares through non-rail revenue. This was proposed in the 1976-78 plan.

It would be desirable to have that plan reviewed for Karachi, Lahore and Islamabad, as its absence is causing a 20 per cent loss as regards production capacity.

Land reforms: As a first step permanent tenancy rights be given to all tenants, followed by the choice to pay land revenue etc., thereby increasing their share in crops, based on the value of their inputs. All private arms which are used to harass tenants should be banned.

Democracy: Our corrupt and costly election system should be replaced with a cost-effective one. Poverty alleviation: Defence and debt-servicing take away more than half the budget, resulting in abject poverty.

Debt-servicing can be reduced by tightening our belts, and curtailing the import of cars and other luxury items. Defence expenses should also be curtailed in view of our non-conventional weapons, which are sufficient to deter any incursion. The country's huge manpower can be better utilized by providing skills to the people.

S.M.H. RIZVI

Karachi

Top of Page



Suggestion to Karachi DHA



Recently I was in Lahore and while browsing through a local newspaper I saw the news item "DHA begins airconditioned shuttle service". According to the report, Lahore's DHA has started an airconditioned bus service to cover all its phases.

I request Karachi's DHA (claimed to be the largest housing society of South Asia) to chalk out a similar plan and introduce a bus service on their own or through a franchise arrangement.

After the introduction of this bus service, the currently operating vans generally known as the 'yellow devils' should be banned. I also request the DHA Residents Association to take up this issue with the DHA high-ups.

MUZAFFARUDDIN AHMED

Karachi

Top of Page



Contaminated water



I want to bring it to the notice of the authorities concerned that another tragedy like the one that recently hit Hyderabad is in the making right in the heart of Karachi where numerous innocent lives will be lost if timely action is not taken by the administration to ensure supply of clear drinking water.

For the last six months the residents of the Sindhi Muslim Society, B block, have been receiving contaminated water. Sewage leaking from broken sewers has found its way into the fresh water line, making it undrinkable. Consequently, we have stopped using this water.

Our repeated requests to the Jamshed Town nazim and other officials have fallen on deaf ears.

ASIF AZAM KHALIL

Karachi

Top of Page



PCB and Bari



The PCB's decision, at the behest of the ICC, to reprimand Mr Wasim Bari for speaking his mind on the atrocious umpiring by Mr David Shepherd is another example of the spineless character of the Pakistan Cricket Board.

Mr Bari was totally justified in bringing to the forefront the inadequacies in Mr Shepherd's performance, and there should be no reason whatsoever for holding him at fault for doing so. One only wishes that there were more men like Mr Bari, ready to call a spade a spade.

TARIQ RAZA

Via email

Top of Page



Defamation bill



Certain ugly features of the Defamation (Amendment) Bill have been pointed out pertinently in the editorial of August 21. There could hardly be a difference of opinion on this subject.

The state wants to take away the right of free expression of citizens either directly or through the press. The worst sufferer shall be newspapers, as indicated in the editorial, on account of substitution of the word publication in place of author.

In short, the envisaged amended law is meant to suffocate the public voice against the establishment and the bureaucracy.

Now it is up to the Senate to take notice of the mischief in the bill and revise it in the light of amendments suggested by the media and bar associations. If the Senate does not like to interfere and goes along with the lower house, the bill will finally be presented to the president for his assent.

At this juncture the president may be pleased to return it to the National Assembly for necessary revision in order not to compromise with his loudly-proclaimed belief in the freedom of expression guaranteed under the Constitution.

GHEEWALA A.G.M.

Karachi

Top of Page



Accused or convicted?



Your editorial in the August 31 issue about an FBI investigation into alleged Israeli spying at the Pentagon bluntly said: "Once again an American has been caught betraying his country's secrets to Israel."

The words used by the editorial baffle me because usually Dawn has been at the forefront of making the commendable case that in the post-9/11 scenario, Muslims and Arabs in the West are often considered guilty until proven innocent.

Yet, here you referred to an ongoing investigation about a serious allegation of spying where there have been no judicial verdicts, no charges filed, and no prosecution launched. But Dawn has already judged this person guilty of spying for Israel.

ESAM SOHAIL

Kansas City, MO., USA

Top of Page



Musharraf's popularity



According to President Musharraf, 96 per cent of the population do not want him to quit the post of army chief. We are not sure whether he is quoting any scientific poll or not. But it is for sure that big brother in the United States wants him to stay.

SAM BAIDYA

Toronto, Canada






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