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Curbing inflation PRIME Minister Shaukat Aziz has once again acknowledged inflation being one of the major challenges facing his government. While speaking after the minister of state for finance, Omar Ayub Khan, had wound up the budget debate in the National Assembly on Tuesday, the prime minister briefly explained the reasons for the sudden and steep jump in the price level in the last 12 months and assured the house that his government was making serious and sustained efforts to tackle the problem of inflation. Prices do heat up when the economy grows at a fast pace. Over the last three years Pakistan’s economy has experienced very high growth rates after having remained almost stagnant in the previous three years when the government was following a tight-fisted economic policy under instructions from the IMF. According to official documents released before the announcement of the budget for 2005-06, the phenomenal rise in aggregate demand of the economy, on the one hand, was compounded by supply shocks, on the other. Besides, the documents claimed, adverse external developments, had an impact on the price level during the current fiscal year, included a surge in international oil prices coupled with an unprecedented rise in world prices of commodities as a result of massive demand from China. The government has claimed that it responded to the developing situation by adopting a strategy of regular monitoring of domestic stocks of key commodities and their prices. The government also did not pass the entire increase in the international price of oil to general consumers. And to ease the demand pressure generated by the rising level of economic activity, the State Bank of Pakistan began to tighten its monetary policy rather aggressively. The government believes that by improving the supply situation of food items either through raising their production or through imports and applying timely and prudent monetary policies, it will be able to bring down the general price level in the coming months. One hopes that this strategy will effectively slow down the hike, especially, in relation to prices of food and other essential items that make up the basket of livelihood of people living below the poverty line. The recent decision of the government to liberalize food imports from India over land route is a welcome step. One hopes that in due course of time all the necessary arrangements would be made for immediate import of food items in short supply in the country through the Wagah border. Also, a more rational method should be adopted for calculating the impact of house rent on the overall price level while, at the same time, steps should be taken to bring down the prices of construction material by encouraging their increased production. When prices of essentials go up, it is the poorer sections of society which suffer most as the purchasing power of whatever little they have in their pockets gets drastically reduced. As it is, under the current system of distribution, when the economy grows by one rupee, 40 paisa go to the richest 20 per cent of the population while the poorest 20 per cent get only seven paisa. So, the poorest sections of society need to be protected when prices of food items start soaring and an element of justice needs to be introduced in the distribution system so as to ensure equity while the economy grows at an accelerated pace. Now it is Saudi Arabia IT is now Saudi Arabia that is under pressure to open its supposed nuclear facilities for inspection. That the kingdom’s nuclear programme has reached a level where it should attract international attention is indeed a surprise. The pressure has come from both Europe and the International Atomic Energy Agency which want Riyadh to permit unhindered access to its nuclear facilities. The Saudi government is prepared to sign the Small Quantities Protocol (SQP), which makes inspections less problematic. But Europe and the IAEA want Saudi Arabia to agree to full inspections. The Saudi stand is that they would agree to full inspection only if other countries in the region did so. This is Europe and IAEA’s Achilles’ heel, for the Saudis know as much as those now pressing Riyadh for full inspection know that the “other countries” include Israel. And no western diplomat in his right mind would think of raising a finger at Tel Aviv much less pressuring it for opening its nuclear installations to international inspection. Israel has so far maintained what is called a “strategic ambiguity” on its nuclear capability. But western sources put the number of deadly weapons in its arsenal anywhere between 200 and 400. These weapons have been acquired with full western connivance. Its nuclear reactor at Demona was given by France, and it has virtually unhindered access to American technology, including the right to steal uranium. The possession of nuclear weapons has enabled Israel to blackmail its Arab neighbours. It has been in illegal occupation of the Gaza and West Bank, including Al Quds, for 38 years, and it has waged quite a few wars on all its neighbours. Yet it enjoys immunity from inspection because the IAEA is basically a western-controlled body. The Saudi stand is, thus, fully justified. The country feels it has no reason to throw open its nuclear installation to full inspection when Europe and the US pursue a different policy vis-a-vis Israel. The carte blanche given to Israel by the US and Europe has deprived their nuclear non-proliferation concerns of a moral basis. Gift of blood JUNE 14 marked World Blood Donors Day which was also observed in Pakistan where the emphasis was on sensitizing people to the importance of donating blood. The country remains heavily dependent on blood from donors, family members or friends of the patient in need of a transfusion. It also relies on professional donors who are paid for donating their blood. This is in stark contrast to the developed countries where people are encouraged to voluntarily donate through awareness raising programmes. For Pakistan to meet its demand, it too should engage in public awareness campaigns, which can be started at the school level. The country has many reasons to address the issue of safe blood transfusions. Its health sector is in a dismal state and cannot meet the basic needs of patients. The number of blood banks is negligible. The few that do exist are unable to meet the huge demand. Only five per cent of the population donates blood on a regular basis, so a clear-cut strategy is required on the part of health officials if they want to see a substantial increase in the number. According to the federal health secretary, this year’s budget saw a 56 per cent increase in the health development programme. The government is said to have plans to establish blood banks all over the country. This is a badly needed move. It cannot be stressed too much that the focus should still remain on safe blood transfusions and properly screened blood, especially since the number of Aids/HIV cases is on the rise. Of equal importance is to emphasize how valuable it is for a person to donate blood which can be likened to gifting someone a new lease of life. Please Visit our Sponsor (Ads open in separate window)