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DINA
DAWN - the Internet Edition



15 January 2005 Saturday 04 Zilhaj 1425

Editorial


Attracting investment
Threat to Syria
Police and public safety




Attracting investment


The government's decision to liberalize the visa policy to facilitate foreign investors and businessmen coming to Pakistan can be seen as a step that will positively impact on investor interest in Pakistan.

Most of the countries that are being given this facility already have business links with Pakistan. The step forms part of a wider move to simplify rules and procedures regarding investment and business propositions, particularly those of foreign origin.

The purpose is to cut down bureaucratic red tape and other hassles involved in such matters. The decision comes at a time when the government is putting final touches to another initiative to boost foreign investment.

Reports say that the government has finalized the draft of a model agreement for the promotion and protection of foreign investment. Under this agreement, a level playing field for foreign investors is to be assured as these investors would be allowed to seek international arbitration in case of any trade-related dispute in Pakistan.

It is said that one of the obstacles to foreign investment has been the lack of an effective and transparent judicial system in Pakistan. At present, various disputes amounting to $850 million are pending against Pakistan. One hopes that these cases are expeditiously settled once the model agreement comes into operation.

The adoption of a new strategy this week for rapid industrial growth also touches on the issue of foreign investment. While the strategy concentrates on the cost of doing business in Pakistan, it does pinpoint areas where more attention has to be given to attract investment.

This includes reduction in corporate and income taxes and improvement in transportation and shipping to facilitate faster industrial growth. Foreign investors should also be spared the hassles of red tapism.

A one-window operation has to be set up to cater to all their procedural requirements speedily. Only then will Pakistan be in a position to compete regionally for much needed foreign investment.

As things stand, the government plans to raise growth rate to about eight per cent by 2007-08 from the present level of over six per cent. Projections indicate that to achieve this target, an investment of Rs2.6 trillion will be needed.

The government hopes that this target will help obtain six per cent real growth in per capita income, which would reduce poverty that currently affects about 33 per cent of the population.

Social factors like poverty remain a worry for investors as these can be cause for domestic unrest. The government has to address the issue through a multi-pronged approach.

It can fight poverty by improving governance and devolution, investing in human capital and targeting the poor and the vulnerable. The other main worry for investors is the volatile law and order situation in the country.

Unless this is improved, foreign investors will shy away from making any significant commitments. In addition to a rise in terrorist attacks, the crime graph has gone up in the past couple of years.

A growing economy is ideal for investment but unless other factors such as internal security, political stability and a congenial business environment are ensured, expecting foreign investors to come and put their money here would be unrealistic.

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Threat to Syria



America and Israel seem to have over-reacted to the possible sale of Russian missiles to Syria. Russian officials have denied that any such deal is on the cards, but press reports in Russia say that an agreement could be signed during President Bashar al-Assad's visit to Moscow later this month.

While Israel has requested Russia to cancel the deal, Washington has warned Moscow of sanctions if the latter goes ahead with it. Given Israel's military prowess, Russian missiles will make no difference to the balance of military power between Syria and Israel.

Israel is the Middle East's strongest military power, while Syria's Soviet-supplied military arsenal has been gathering dust since the disappearance of the USSR. Syria is cash-starved, and even if it manages to get some rockets, they should pose no threat to Israel, which is protected by a range of anti-missile systems installed with American help.

There are reports of hard-liners in the Bush administration seeking military action against Syria on another count - that it is helping militants in Iraq. Also, Israel has broken its silence on Iran's nuclear programme and expressed concerns to the European Union, which has been having a dialogue with Tehran on this issue.

There have also been ominous reports that Israel could strike at Iranian nuclear installations. It would be a grave mistake for America and/or Israel to strike either at Syria or Iran.

Already, America is hopelessly bogged down in Iraq. The removal of Saddam Hussein has not been followed by peace and a workable political system. Instead, the high civilian casualties - estimated at 100,000 - and prisoner abuse have added to the Arab world's anger against America.

Attacking either Syria or Iran, or both, will only strengthen the hands of extremists in the Arab and Muslim world. There are doubts if the violence prevailing in Iraq will allow credible elections to be held on the 30th of this month.

Attacking Iraq's neighbours will only worsen violence in Iraq, prompting a postponement of the election. This will only make America's plight in the Middle East much worse and hardly advance the cause of the war on terror.

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Police and public safety



Distributed by the non-cooperative attitude of the police in their respective areas, the chairpersons of six district public safety and police complaint commissions in Sindh have pointed out to the provincial government that little action is being taken on the recommendations forwarded by them to the officials concerned.

Instead, the district police usually initiate their own inquiry against errant officials, without taking into account the directions of the commission. While perhaps it is still too early to expect the immediate enforcement of all the provisions of the Police Order 2002, what is truly distressing is that even the spirit of compliance with the law seems to be missing on the part of the police.

Unwilling to let go of their hitherto sweeping powers, police officials do not welcome what they see as "outside" interference - even though public safety commissions are very much a part of the ordinance - as this dilutes their authority and makes the force more accountable to the people.

Unfortunately, the commissions themselves have been the subject of much acrimonious debate, with growing criticism of last year's amendment to the ordinance that increased political representation in the setup.

Moreover, many districts still do not have the commissions in place. Where these do exist, members continue to protest against the lack of funds and other facilities that hinder the filing and processing of citizens' complaints.

The police, well-entrenched in their position of power for decades and taking advantage of the situation, continue to flout all rules and harass the public in much the same way they did before the ordinance was passed.

Any strategy aimed at changing this state of affairs for the better, then, has to be twofold. It has to put pressure on the police to conform to the rules and to complete the work on public safety commissions, ensuring that there is one in every district and strengthening them so that they can perform their watchdog functions.

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© The DAWN Group of Newspapers, 2005