| 29 December 2004 | Wednesday | 16 Ziqa'ad 1425 |
A burden on consumers
Economics syllabus
Sale of used cell phone cards
KESC billing system
Two-nation theory
Dhaka debacle
Wasted training?
Baglihar and Kalabagh
Role for Musharraf
Pilgrims' woes
DHA affairs
Crime rate
BA exams
VIP movement
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I read with frustration Mr Aamir Shafaat Khan's report in Dawn of Dec 8. One thought that with the WTO coming in, a level-playing field would be available. But that was not to be.
How could conniving bureaucrats allow this to happen? Even a glance though the report will show that it is a case of flying from the fire into the frying pan. The policy referred to in the report is riddled with anomalies.
For example, a shopkeeper near Karachi's Tibet Centre or Badami Bagh can import any component he wants at 35 per cent duty, but an auto manufacturer must pay 50 per cent duty or the CBU rate of duty, whichever is more.
The CBU rate of duty on cars extends from 50-150 per cent. In the case of motorcycles it is 75-80 per cent. Why will a manufacturer pay such a high duty? He will resort to importing through a third party as was being done until the customs intelligence caught on to impose duties of billions. But the report of the director-general, customs intelligence, who is a general, is now being thrown into the basket. Worse still is the policy with regard to uncommon parts - indigenized by one manufacturer - which as the report says is to be gradually eliminated.
Now in the case of one motorcycle manufacturer, the cylinder block is indigenized. No other manufacturers selling at lower prices can indigenize them, which means they will just have to close down or pay heavy duties.
The worst part is to subject original equipment manufacturers to get their parts approved by the AT&T. This dead testing lab, once a part of the defunct PACO, was recently handed over to the Engineering Development Board. Making it mandatory to get parts approved from them means not just the testing charges which will be heavy but doleouts to the functionaries.
All this comes when the minister of industries announced the other day that to encourage competition the government had decided to allow new car manufacturers to come in at a low deletion of 40 per cent.
I urge the prime minister to intervene to save the auto industry from this policy. I urge the minister of industries to implement his recent announcement to reorganise the EDB where a group has played havoc with the industry in the last eight years. This is one government agency where no one even gets transferred.
SAEED UR REHMAN
Karachi
A burden on consumers
Buy a pack of "X" brand tea and win prizes such as TVs, refrigerators and DVDs. Send in an empty wrapper/pack of "masala" with a copy of your NIC and get into a lucky draw to win cash prizes up to Rs1 million. Just turn on the TV and find running advertisements like these, or open the pages of newspapers and read such promos.
As a result, housewives are purchasing 10 packets of tea instead of one and children are asking for more money to buy more candies in the hope of winning prizes and free gifts.
Who are these lucky fellows who get their lives turned around by buying a single pack of tea or masala? If someone is really winning these prizes, who is paying for them? The company offering them or is it us, the consumers? Are these national or multinational companies, spending millions of rupees on advertisements, promos, sales promotion schemes and events to persuade consumers to buy their products whether they need them or not? Is this overspending on marketing tactics creating a trend of extravagance in our society?
These marketing and persuasion techniques are making consumers spend more and adding to the cost of the product. Some time these expenses can be as high as 25 per cent of the actual cost of a product.
Hence if the actual cost of a product is Rs75 per unit, extra marketing and selling expenses can bring this cost up to Rs100 per unit, making its selling price Rs125, that is, if the manufacturer decides to charge only a 25 per cent profit.
The consumer may have to pay additional marketing expenses in the shape of a distributors' margin of 10 per cent, a wholesalers' margin of five per cent and a retailers' margin of 15 per cent. These margins are calculated on a value-added basis that means an effective increase is not 10+5+15=30 per cent but may be 35 per cent (approximately).
In other words, the price a consumer will pay is Rs166 whereas it would have been only Rs94, including the 25 per cent margin of the manufacturer if there were no marketing expenses, including advertisements, sales promotion schemes and additional margins of marketing intermediaries. Therefore, marketing is certainly a monetary burden for the consumer as he has to pay Rs72 more or a 77 per cent higher price.
YASIR MANSOOR
Karachi
Economics syllabus
The Board of Intermediate Education, Karachi, introduced in 2001 a new syllabus for the first-year commerce students. The old two-year syllabus for economics has been condensed and topics which were earlier taught over two years are now taught in one academic year consisting of seven-and-a-half months.
Within this brief span of time, students are expected to study the introductory course and master topics such as price and output determination under perfect competition, monopoly, phases and theories of business cycles, etc., that are part of the BCom-I syllabus.
The question "How does a firm achieve equilibrium in the short-run under perfect competition?" was put to the first-year commerce students on May 7, 2001. The same question was set for the BCom-I in 2003 by the University of Karachi.
The first-year (economics) question paper includes one compulsory question of 19 marks. Students are expected to fill in the blanks with the correct response. Here are some of the questions asked:
1. "If the quantity of money in circulation is doubled, the price will be --." (29-04-2004). The examiner should have referred to the "price-level" and not the "price".
2. Adam Smith is the economist of -- school of thought. (22-05-2004).
3. J.S. Mill was the author of the book Wealth of Nations: true/false. (22-01-2003).
4. Malthus gave the theory of population in - AD. (24-04-2003).
5. The canons of taxation were first presented by Professor Adam Smith: true/false. (07-05-2001).
These and many other questions are frequently repeated and students are prepared with set responses. None of these objective-questions is designed to reinforce understanding of important concepts.
The entire syllabus of economics is poorly structured, compelling students to resort to rote learning. Most questions are handled quite incompetently. Even graphs are drawn inaccurately and not well integrated with the main body of the question. Students are often confused and lack analytical and evaluation skills.
Economics is not only about learning theories, definitions and concepts but also about the world around us. The world today faces a daunting demographic challenge.
Our students are unable to analyze key issues such as population changes on economic growth as the entire chapter on population stands deleted. The knowledge of economic concepts of our students is as dismal as the science of economics.
A CONCERNED PROFESSOR
Karachi
Sale of used cell phone cards
I bought a prepaid card worth Rs1,000 of a cell phone company from a shop in "G" Market, Block 6, PECHS, Karachi. When I scratched the code number and dialled 111 to load it, I was told that this card had already been used.
I immediately went back to the seller and told him that it was a used card. He showed me similar sealed cards and said they had been issued by the company. He then advised me to contact the customer service centre of the company.
I visited the centre situated near Masjid-i-Maulana Rum, SMCHS, on Sharea Faisal and complained about the used card. The attendant asked me to lodge a complaint at their head office at EOBI House (Awami Markaz).
I visited the head office and told the officials concerned about the purpose of my visit. They checked the code number and said the card was being used on a company's mobile number. Finally, they expressed their inability to do anything to help me.
I dialled the mobile number and told the person whose mobile number it was that I had also the same card number. In reply, he said he had had received three calls telling him the same story. Will the Pakistan Telecommunication Authority do the needful?
RAFIQ AHMED SIDDIQI
Karachi
KESC billing system
I fully endorse Ms Mariam Baig's views on the KESC billing system (December 6). The promise of a certain percentage of the amount the customer is charged provides an incentive to KESC inspectors to find faults with otherwise correct meters.
The meter is never tested at any workshop, and in any case inspection is not carried out in the presence of the consumer/representative. A widow was recently forced to pay a huge sum though nothing was found to be wrong with the meter.
KESC inspectors carry out periodic inspections. They do not show any authority letter allowing them to do so. Senior citizens living by themselves could become victims of impersonators or unnecessary harassment.
Will law-abiding citizens continue to suffer at the hands of corrupt and inefficient organizations? It is ironic that people at the helm have no time to attend to the problems of the masses, who have no one to speak for them.
MUHAMMAD BASHIR
Karachi
Two-nation theory
It is interesting to see the debate on the two-nation theory continuing. I think it should as there are many misunderstandings and distortion of facts about the whole story, which need to be removed.
The first important thing in the election of 1946 was that it was based on limited franchise. Only those who were paying a certain amount as income tax or land revenue or had some minimum educational qualifications were entitled to vote. This limited the voting right to very few. The all-India figure was 10 per cent voters out of the total population.
The percentage of qualifying Muslims was even less than 10 per cent. Out of this electorate, only 52.3 per cent turned up to vote. In UP alone there were 9,028,992 Muslims and of these 477,992 voted for the Muslim League, i.e., only 3.7 per cent.
Elsewhere the percentage was even lower. How can Mr Khalid Ahmed (Nov 27) claim that nearly 90 per cent Punjabi Muslims voted for the Muslim League in the presence of opposition from leaders like Khizar Hayat Khan, Khan Abdul Ghaffar Khan, G.M. Syed and so many religious parties? Even if we accept his contention, that 10 per cent Muslims joined hands with 50 per cent non-Muslims, that makes them 60 per cent.
Does it justify the acceptance of the demand of 40 per cent? In democracy even one vote counts. In the last referendum in Canada the French-speaking Canadians lost by one vote against the English-speaking voters.
I remember when the Pakistan Movement was going on and our elders were busy organizing Muslim League meetings, those who were for Pakistan had in their minds the idea that this country would be the homeland of all Muslims of undivided India who wanted it. Now reading the views of Mr Ahmed and others, it looks like that they were befooled and misguided.
It was unfortunate that the Quaid died early and Liaquat Ali Khan was murdered by those who did not want Pakistan to exist, and that was the reason why there was political turmoil during the '50s. So many things have happened since then, including the separation of half of the country in 1971.
We have still not learnt any lessons. Instead of putting things right, we are blaming one another. Mr Mukhtar Ali Naqvi (Dec 20) rightly says that we should work together to build Pakistan.
But we cannot ignore our past and distort our history. We have to bring the true picture of the whole story to our younger generation so that they are not misguided and should learn a lesson from the past.
PROF ISHTIAQ AHMED KHAN
Karachi
Dhaka debacle
It was 33 years ago on Dec 16 when Gen Niazi handed his service revolver over to Gen Arora at Dhaka and signed the surrender document. That was a mistake - from a civilian's point of view.
It was a correct decision militarily, and in accordance with the textbooks, as the general said later. Just one decision cannot be wrong and right at the same time. To find out the truth and the causes of debacle, a commission was constituted, headed by Justice Hamoodur Rahman.
We do not know whether Justice Rahman found the truth or not. He was not vocal about it. But he compiled his report, the Hamoodur Rahman Commission Report. It was promptly ditched into the backyard. It was too frank to be made public.
We do not accept the truth. We never have. One thing is certain. The armed forces did not fight poorly though they were poorly equipped in East Pakistan. In the 26 days of fighting (from Nov 21 to Dec 16) the Indians could take only Jessore, just seven miles from the border.
At Jamalpur, they could not even make a dent of one-third of a mile. It was the failure of the administrative machinery and the political setup that was responsible for the debacle.
S.M. KAZIM NAQVI
Karachi
Wasted training?
The Pakistan Military Academy, Kakul, transforms youths into disciplined, smartly-attired and self-restraining cadets. After passing out from the PMA, the army's working environment is conducive to maintaining a similar pattern of life.
Unfortunately, a number of army officers after retirement take to civilian life. They start wearing shalwaar-qameez instead of trousers or lounge suits. Instead of becoming a role model for civilians around them, these retired officers merge with them.
The army gives them a retirement package in which they can live modestly but well. They should make the best use of the package and live like model citizens. They can bring about revolutionary changes in the social set-up.
SAYED G.B. SHAH BOKHARI
Peshawar
Baglihar and Kalabagh
Pakistan argues that if India builds a dam at Baglihar, the water flow downstream to Pakistan will be reduced. The same officials, however, insist that if a dam is built at Kalabagh, no such reduction in the water supply will take place downstream for Sindh.
QURBAN HAIDER
Kotri
Role for Musharraf
"Bush sees role for Musharraf in Palestine," says the headline of a news report (Dawn, Dec 5). Whether this is speculation or reality, in either case this will require of Pakistan to recognize Israel and persuade Arab countries to recognize Israel, but will not pressure Israel for any concessions.
F. HASAN
Karachi
Pilgrims' woes
In the open Haj scheme, pilgrims are being asked to pay an extra Rs11,120 (41,120 - 30,000) air fare for the same route, Karachi-Jeddah-Karachi, as against the regular scheme for pilgrims. This is unjust.
I request the president, the prime minister and the religious affairs minister to ask PIA to bring down the air fare at par with those of other airlines transporting pilgrims to Saudi Arabia.
MOHIUDDIN ALI
Karachi
DHA affairs
Some letter writers have expressed serious concerns over the imposition of additional development charges at the rate of Rs1,000 per sq yd on plots in phases VIII and VII Extension, DHA, Karachi. These charges are very high and unjustified.
During the 57 years of their existence, DHA/cantonment boards have done an excellent job by building prestigious societies in various big cities. In order to make their decisions more broad based/participative, it is suggested that the DHAs and cantonment boards be corporatized into public limited companies under the Company Ordinance.
Their members should be allowed to become shareholders. High net worth individuals from the private sector qualifying for the laid-down eligibility criteria should also be placed on their boards.
Financial affairs should be audited by reputable firms of external auditors according to the requirements of the Company Ordinance. Regular annual general meetings should be held, where members/shareholders may find an opportunity to question decisions to be taken by the board of directors.
Meanwhile, the prime minister may direct the Karachi DHA to set aside this decision of the DHA governing board, which has been received with great shock by genuine plot buyers, widows, pensioners and members of the salaried class.
MRS SHAMSHAD
Karachi
Crime rate
This is with reference to the statement by Sindh Home Minister Rauf Siddiqui (Dawn, Dec 22), claiming a considerable decline in the crime rate in Karachi and the rest of the province during the past six months due to effective government policies and improved performance of the police and Rangers.
As is commonly said, the proof of the pudding is in the eating. In my opinion, the benchmark for improvement in law and order is when Sindh can get rid of the Rangers, and mobile police escorts are not seen tagging behind every VIP.
NAZIM F. HAJI
Karachi
BA exams
I would like to bring to the notice of the controller of examinations, University of Karachi, the fact that the university has changed the syllabi of English and Urdu for BA parts I and II with effect from 2004.
Before appearing for the BA Part II current examinations, I inquired from examination department officials about the Urdu paper, and they informed me that being an old registration (i.e., 2002), the old syllabus was applicable in my case.
But unfortunately, on the day of the examination, i.e., Nov 29, the invigilation staff told me that I had to answer questions under the new syllabus. I appeal to the controller of examinations to allow students like me to reappear under the old syllabus so that we could save one precious year.
SADAF
Karachi
VIP movement
Residents of Gulshan-i-Iqbal, Block 7, Karachi, were inconvenienced in mid-December when told that a VVIP movement was to take place in the evening on a Sunday. Cars were removed from outside houses and people were forced indoors for several hours by police officials.
Later we learnt from newspapers that our information minister had come to the area in the evening to a dinner hosted by one of his supporters. Will this silliness never end?
KHALID AZIZ
Karachi
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