| 07 October 2004 | Thursday | 21 Shaban 1425 |
No perks for teachers
The question remains
In a significant move on Tuesday to curb rampant speculation in real estate, the State Bank stopped bank financing purely for buying of land/plots. Instead, it has advised the banks and development financial institutions to give housing loans up to 50 per cent for purchasing land and 50 per cent for construction on it.
Though a little belated, the central bank's decision follows widespread complaints that skyrocketing of real estate prices and the rising cost of building materials are driving the genuine buyers out of the housing market with the exception of those who are getting remittances from abroad.
In many posh localities and new housing schemes in major cities like Karachi, Lahore and Islamabad paper transactions for plots/land (sale and purchases of documents) without the physical possession of property has helped speculators, investors and real estate brokers make windfall gains.
Many of them, whether individuals or builders, who have borrowed from banks prefer to make handsome profits on the sale of land rather than go through the hassle of building houses.
The scarce availability of land and surplus funds in the market chasing real estate has fuelled speculation. As far back as August, the State Bank governor criticized the provincial governments for "sitting tight on the state land or allowing it to be taken up surreptitiously by land mafia for illegal encroachment" despite the housing development potential to add one to two per cent to provincial GDP.
The federal ministry of housing has just woken up to advise the provincial governments to identify 100 acres of land each for housing projects for low income groups.
The only exception has been a recent model scheme for Lahore. Having come to the conclusion that speculation is all-pervasive in the financial as well as real estate markets, the central bank has decided to act to re-channel credit towards house-building.
Lending under the present arrangement of debt equity ratio of 80:20, the banks are exposed to potential risks once the boom is over. If such an eventuality were to occur, it would be a great setback to nascent consumer financing normally driven by housing mortgage.
In past one or two years, mortgage loans have grown rapidly starting from a low base as bank credit was earlier banned for house building. The Rs4.1 billion lending in this area till December 2003 remained low because of obstacles, particularly relating to property titles.
In Pakistan, housing finance is under one per cent of the GDP (out standing stock) against an average of 25 per cent in developed economies, 19 per cent for Malaysia and 16 per cent for Thailand.
In times of economic downturn, the labour-intensive housing industry, with multiplier effect, is expected to sustain economic recovery and provide employment. But in case of Pakistan, the rate of construction of new dwellings is short of the growing needs.
Real estate is also beset with a whole range of problems, including scams of housing societies, something that is currently engaging the attention of the National Accountability Bureau though the purpose could perhaps be better served by the appointment of ombudsmen to look initially into individual complaints.
The official approach is to tackle problems piecemeal as they emerge. It should be replaced by well co-ordinated efforts under an effective national policy that would meet housing shortage and provide employment to the growing number of the jobless.
No perks for teachers
It is unfortunate that prime ministerial salutations to the teaching community notwithstanding, there was no message of hope on Salam Teachers' Day for those involved in the rigorous task of imparting education to millions of children and young adults across the country.
Participating in a function to mark the day in Islamabad, Prime Minister Shaukat Aziz announced no measures aimed at bettering the lot of teachers who toil under demanding conditions with no reward in sight.
There was only a vague promise to "do my best" that must have been a source of much disappointment to thousands in the profession, even though Mr Aziz reflected on the importance of good teachers in society.
The truth is that celebrations of the sort observed on Tuesday cannot hide the reality that the teaching profession is no longer accorded the respect that is its due. Very few of those entering the profession, at least in the public sector, make it their goal to stimulate intellectual curiosity in young minds.
They are there chiefly because they have been unable to find more paying employment opportunities and because of the lack of competition in the field. It is difficult to blame them for their non-serious attitude, an aspect of which is widespread absenteeism.
So plagued are teachers by problems of inadequate transport arrangements, finances, etc., that they tend to focus more on personal grievances than the shortcomings of the educational sector.
Professionally, too, they suffer as there are few opportunities for self-improvement through training schemes while the absence of educational aids and proper classroom facilities renders teaching more of a chore than an exercise in stimulating mental activity.
The government can do better than merely paying lip service to the profession. It can embark upon measures aimed at inspiring teachers to do greater justice to their profession as the harbingers of change in a society throttled by the demons of illiteracy.
The question remains
American commentators are tying themselves in knots seeking to figure out what Defence Secretary Donald Rumsfeld had in mind when he said he knew of no "strong, hard evidence" linking Saddam Hussein with Al Qaeda. How will this impact on President Bush's chances in the November election, it is being asked.
Is Mr Rumsfeld actually Democratic challenger John Kerry's secret weapon of mass destruction against Mr Bush? Compare the defence secretary's latest statement with the categorical assertions previously made by him about the unseating of Saddam Hussein and Al Qaeda, and it's hard to explain the backtracking.
Look also at what Paul Bremer, the man sent by Mr Bush as his consul to Iraq and who made such an unholy mess of things, has to say about the lack of adequate troops to control the post-invasion situation.
This carries the implication that the Bush administration hadn't really thought through what it would do after unseating Saddam and capturing Iraq. Mr Bremer spoke from a prepared text; Mr Rumsfeld is not known to have ever spoken without carefully considering his words.
So how does one explain this sudden outbreak of candour amidst the welter of half-truths and lies that have marked the US government's official stance over the Iraq war? Both the WMD and Al Qaeda links that were advanced as reasons for the war have been knocked out.
Blaming it all on faulty intelligence isn't going to bring the thousands of Iraqis killed back to life. It isn't going to provide much solace to those whose families have been shattered, their houses destroyed and their livelihood snatched away from them.
Mr Bush's father had not gone after Saddam in the first Gulf war in 1991 and had withdrawn from Iraq because he knew better than his son that the US wouldn't be able to stay on and control the consequences.
Beyond the morbid satisfaction one can draw from the discomfiture of the Bush administration as the case for its war unravels, the more serious question remains. How is the present anarchy and chaos in Iraq to be ended? The lack of easy answers itself underlines the gravity of the initial blunder.