| March, 23 2005 | Wednesday | 12 Safar 1426 |
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Allotment of Clifton beach
Public sector universities
Foreign investment versus inflation
For a piece of land
“Redefining legislators’ role”
Disposal of radioactive waste
US visa denial to Modi
Road safety
CNG kit price
LEW overpass
Inflationary pressures in our economy are assuming disturbing trends and if these are allowed to persist and gather momentum, they could result in distortion and disruption of production and investment activity, with destabilizing socio- political consequences. The consumer price index for February was 9.95 per cent higher on a year-to-year basis as compared with 4.3 per cent in the corresponding period last year.
Inflation at this rate would provoke demands for higher wages and salaries and there is a possibility that the economy could enter into a vicious trap of an upward spiralling cycle of inflation-devaluation-rising wages and salaries and more inflation.
The principal cause of inflation in Pakistan is the imbalance between overall monetary demand and the availability of goods and services at a given price level.
In 2003-2004, for example, monetary assets in the economy registered a rise of 19.6 per cent while gross domestic product advanced by 6.4 per cent only. In 2002-2003 and 2001-2002 the GDP grew by 5.1 per cent and 3.4 per cent while monetary assets increased by 18.0 per cent and 15.4 per cent, respectively.
When quantity of money rises appreciably more rapidly than output, inflation is bound to occur. This is a well-established proposition in economics. There is no example in history of a rapid increase in the quantity of money that was not accompanied by roughly corresponding inflation.
Although a sustained rate of inflation is accompanied by excessive monetary expansion, episodes of high inflation can be triggered by other developments as well. Large depreciations of the exchange rate are widely regarded as a cause of inflation. Another important source of inflationary impulses is the supply shock such as a crop failure or an increase in import prices.
It cannot be disputed that the economy would perform better, our citizens would be happier and our international competitiveness would improve in a non-inflationary milieu. Virtually every observable facet of economic and financial history around the world tells us that rising rates of inflation are simply incompatible with sustained economic prosperity. Inflation also aggravates corruption, provokes industrial strife and renders rational accounting difficulty.
A pernicious aspect of inflation is discrimination against the public services which are its most unrelieved victim apart from those living on pensions and other fixed provisions for personal economic security.
Social imbalance is also the natural offspring of inflation. In the words of Prof J. K. Galbraith: “In a free market in an age of endemic inflation it is unquestionably rewarding in purely pecuniary terms to be a speculator or prostitute rather than a teacher, preacher or policeman”.
At this critical economic juncture, the government cannot afford to compromise on the battle against inflation, and price increases should not be allowed to become a part of the people’s expectations. In the absence of firm measures by the government to reverse the trend of rising prices, the expected benefits from its policies of growth promotion, liberalization, deregulation and privatization would not accrue. The persistence of inflation would also strain the balance-of-payments position of the country by stimulating imports and discouraging exports.
Aside from this, it would be difficult for us to protect and strengthen our fragile democratic institutions in a milieu of endemic inflation. Over much of the world there is a rough and not accidental correlation between political instability and persistence of inflation.
AFTAB AHMAD KHAN
Karachi
I fully endorse the concerns expressed by Mr V. A. Jafarey in his letter (March 17) regarding the “allotment” of Clifton beach. Beaches cannot be allotted. They belong to the people of Karachi. Under the provisions of the Coastal Management Plan of the Karachi Development Plan 2000, allotment of a beach or its privatization is simply not possible.
It is a matter of great concern, and frightening as well, that over the years all multi-class recreational, entertainment and cultural space, which existed previously, has disappeared in Karachi. Saddar has become a transit camp for commuters; the old city has been turned into a warehouse and, as a result, its community institutions and the beautiful buildings that housed them have been abandoned; numerous populist auditoriums and libraries have disappeared; museums, zoos and inner city parks are no longer frequented by the elite; and cinemas which provided affordable entertainment to lower-income families have been forced to close down.
Poor settlements are being bulldozed (often illegally) and their inhabitants are being pushed to the periphery of the city far away from health, education and recreational facilities. The rich have ghettoized themselves and stolen the natural assets of the city for their exclusive use.
All this has been made possible because of long periods of dictatorship and manipulated “democracy” due to which the evolution of a culture of consultation and transparency in the urban planning process has been ruthlessly crushed. The result is that city planning and management institutions have become inefficient, incompetent and corrupt and tools in the hands of powerful land-hungry interest groups.
In addition, cantonment boards have their own zoning regulations and planning processes that do not relate to the larger Karachi context. In this process Karachi has been dangerously fragmented and land use, in violation of all planning ethics, is unashamedly determined by land value (often manipulated) and not by social and environmental considerations as it should be.
All those who are concerned about the well-being of the city (which by the way means the well-being of its citizens) should come together to prevent elite encroachments on Clifton beach or privatization of any part of it, as it remains the only multi- class recreational area of the city and it is important that it should be preserved and developed as such.
ARIF HASAN
Urban Resource Centre
Karachi
Recently, there have been a number of articles on the merit policy in public sector universities in Pakistan. Most of these articles spot the same issue of merit or its violation but from different perspectives. For example in one article, the HEC describes the policy for admissions to universities purely on merit and states that it wants to foster a merit culture in Pakistan.
The HEC believes it can provide quality education to the public by faculty development, improvement of curricula, examination and infrastructure systems, and provision of modern research facilities in the universities.
Some authors have criticized the HEC for the policies it has adopted to advance higher studies and research in Pakistan. There are also some reports on violation of merit policy laid down by the HEC. For example, one writer has addressed the violation of merit in the University of Veterinary and Animal Sciences, Lahore, and has highlighted how a person holding a third division in his academic career used ‘political influence’ to become not only a full professor on a permanent basis but also the dean of a faculty.
All these points look valid. However, no one offers a solution. People criticize instead of critiquing the HEC for its struggle to develop the education system of our country. The important point most people forget is that no system is perfect in this world. There is always room for betterment.
However, one primary issue needs immediate action from the HEC because it may have a very long-lasting impact on our education system. The HEC should make sure that policies on merit are uniform and implemented in letter and spirit across all public and private sector universities of Pakistan. This is especially true for admissions to universities and appointments of faculty on merit.
The HEC should direct all universities to refrain from appointing, promoting or selecting faculty members with third divisions in their academic careers against higher posts at the universities. Those third division holders who are already administrative heads of universities or affiliated faculties should not be given another tenure as chairman, dean, and vice-chancellor, etc. This will be an important step in the right direction.
DR RUKSHANDA MIR
Islamabad
Spurred on by the recent Expo-2005 held in Karachi, in which over 80 companies exhibited their wares, the government has been working hard to project Pakistan as an investor friendly nation.
Led by President Gen Pervez Musharraf himself, many government officials are now regularly appealing to foreign companies to invest in Pakistan. Foreign companies are being pursued with the temptation of cheap labour, little or no taxes, high investment yields, etc.
One wonders that whilst the government is working hard on this front, what benefit has been handed down to the common man? Indeed, every country where major foreign multinationals have entered into and begun doing business, reports of monopolization, price hikes, exploitation, etc. have followed.
Coupled with the results of a slavish obedience to the global loan sharks — the IMF and the World Bank — this sadly holds true for Pakistan as well where basic commodities are forever breaking new price barriers. For example, petrol has now reached Rs43 per litre. This is four times what it was 10 years ago, half of this coming under General Musharraf’s rule.
Indeed, the common man is being pushed further and further into poverty, with the middle class gradually finding its way into the monetary status of the working class. This will continue to happen as long as the current system of secularism — which ultimately aims to only benefit the few — remains in place. Only in a comprehensive, ideological Islamic solution lies the answer.
ASIF SALAHUDDIN
Via email
After working for 20 years abroad, we saved our hard-earned money so that after retirement we would be able to come back to our country, buy a house and start a small business.
But now it seems that with the exorbitant prices of property, all our saved up money is fit only to buy a plot or a house. We will have nothing left to do business with and sustain ourselves for the rest of our lives.
A few months back a 500-yard plot was for Rs8,500,000 in Karachi’s Defence Phase-VIII but now in two months the price for the same plot has increased to around Rs16,500,000.
Estate agents are also not willing to confirm a deal on the land price: when we agree on an amount, they hike it up and eventually refuse to sell at the agreed price.
I request the chief minister to find out who these investors are, selling plots amongst themselves and increasing the prices. What will we overseas Pakistanis do?
SALMA SHAHNAZ
Karachi
Mr. Sultan Ahmed in “Redefining legislators’ role” (March 17) has quoted Prime Minister Shaukat Aziz as having expressed the hope that the legislators help solve the problems faced by the people.
Mr Ahmed rightly suggests that the problems faced by the people are numerous and varied, with almost two-thirds living below the poverty line, and more likely to join them soon to make a formidable 80 per cent of people living a miserable life because of the rapid increase in the prices of petroleum products and the resultant hike in the value of essential goods. Only 20 per cent, who are the lucky ones, enjoy 50 per cent of the national wealth. Most legislators belong to this privileged category. And not surprisingly, even economists who have been chosen by the present regime as experts in the field at fabulous emoluments belong to this group of lucky ones.
In TV discussions, these very technocrats and experts, attired in foreign-tailored suits, are found explaining their “achievements” in the socio-economic field. When cornered by mediamen with facts and figures that are contrary to their tall claims, they defend their lop-sided policies even where the results are diametrically opposite those of the intended targets. They even do not have the courage to admit that the manifold rise in the prices of essential commodities has affected the lives of millions adversely. They always come up with flimsy excuses saying things like the rates of petroleum products are even higher in India or that Japan is levying more taxes on petroleum products, but they do not consider the fact that these countries are providing more facilitates to their people and do not allow increase in the rates of essential commodities.
Expecting this class to solve the problems of the people is like asking for the moon. In their place the government could have chosen qualified university professors with experience in the relevant field and practical knowledge of social problems as they themselves come from the middle class.
Foreign-trained experts are complacent that the KSE index has crossed a psychological barrier and that reserves have risen to $12 billion. This is despite the fact that the mad rush for investment in shares is purely based on speculation, and similar is the case with the fabulous rise in the prices of real estate. Basically, again, we are trapped in the capitalist system’s vortex. A few exploiters are minting money at the cost of the gullible by presenting a rosy picture of higher returns despite the fact that in not too distant past these artificial booms had boomeranged.
Unless we have a few real free and fair elections conducted by a free and impartial election commission without any duress and the legislatures elected go through accountability built into the system, the ills afflicting our society won’t be cured. The problems of unemployment, drinking water, healthcare, education, inflation and perennial price hike are certainly not the problems of the present-day legislatures. After being elected to legislate and solve the problems of people, they consider it their birthright to live happily in luxurious villas built in the salubrious climate of Islamabad. So much so that most of them even do not consider worth attending their constituencies or to their electorate after their election.
The one-point agenda for the treasury benches is how to protect the interests of the government, and for the opposition the one-point agenda is how to snatch power from the present incumbents.
DR ALI AKBAR M. DHAKAN
Chairman, Sindh Development Foundation
Karachi
This refers to the letter from Mr Arif Qamar Khan, “Disposal of radioactive waste” (March 11). Radioactive waste management (RWM) at the Nuclear Oncology and Radiation Institute (NORI) Hospital is performed in accordance with the requirements set by Pakistan Nuclear Regulatory Authority (PNRA). NORI has been managing RWM according to the approved procedure.
The liquid and solid radioactive wastes generated at NORI are pre-treated prior to final disposal. In addition, the inspectors of PNRA also inspect the compliance of national regulatory requirements periodically and no significant deviation from normal practices has ever been observed.
International missions from IAEA on radiation and waste safety also visited NORI and have reported satisfactory arrangement for RWM.
ZAHEER AYUB BAIG
Head of Information Services Directorate PNRA
Islamabad
THE refusal of the US INS office to issue a visa to Mr Narendra Modi, former chief minister of Gujarat, India, is a welcome decision. It shows that the US government is cognizant of Mr Modi’s past hatred and ethnic cleansing.
Mr Modi’s’ hatred for the minority Muslims, the Christians and lower caste Hindus in his state of Gujarat is no secret. He is also the mastermind of the Gujarat carnage of 2002 when over 3,000 Muslims were murdered and burnt alive. All these happened with his administration’s complicity.
Mr Modi probably got away then because of the 9/11 events and their aftermath. He did not realize he could not could escape forever.
The next logical step would be to try Mr Modi for mass murder. For this, he should be handed over to the International Court of Justice.
FAIZ AL-NAJDI
Riyadh, Saudi Arabia
Was the Punjab government really worried about the safety of motorcycle riders or did some minister wish to invest in a helmet factory?
If it is our safety in question, why weren’t seatbelts enforced on car drivers? Motorcycle owners are not expected to be millionaires and cannot afford helmets at thrice the normal price. But nothing is being done about what can be afforded.
JIBRAN SARFRAZ
Faisalabad
It may be recalled that Pakistan being a ratifier of the Kyoto Protocol had planned to make gas the “fuel of choice”. The purpose was to mitigate the increasing carbondioxide emissions from vehicles. Consequently, compressed natural gas was introduced as an alternative fuel for automobiles.
Substituting gasoline for CNG resulted in a cleaner environment as the efficiency of CNG engines is much better as compared to gasoline. The Pakistan government had offered a number of incentives for encouraging the use of CNG in the country. One of them was the exemption of import duty and sales tax till the year 2002 on import of machinery and equipment, CNG kit and cylinders.
In 2002, Italian kits were available at a much affordable rate of Rs21,000 with 50kg cylinder, which has now peaked to Rs24,000 (minimum) resulting in an unnecessary burden on customers.
It is suggested that the government should restore the GST exemption on imported CNG kits to ensure promotion of this environment-friendly substitute of gasoline.
RASHID ASHRAF
Karachi
Construction of Karachi’s Lyari Expressway near the Yaseenabad bridge is in progress. To bridge over the existing span a series of pile columns have been erected within the traffic lanes currently utilized by traffic. The effective width of the road has been significantly reduced, which is creating a bottleneck. Chances of head-on collisions have increased. The span is not long and can easily be bridged over by avoiding the pile columns.
I hope the relevant authority will review the design to facilitate traffic flow and avoid accidents.
ABDUL AZIZ KHATRI
Karachi
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