| July 6, 2005 | Wednesday | Jumadi-ul-Awwal 28, 1426 |
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Defence spending
Sports in Pakistan
Child jockeys
Lahore rains
Two months in Karachi
Farewell grant
PIA planes
HEC plan
Duty-free wheat
Mukhtaran Mai
EVER since the new federal budget was announced on June 6, both the government and the opposition have stuck to their positions, with the government claiming it to be a “growth-oriented budget” while the opposition is harping on the tune of the budget “being an anti-people budget”, with no NFC award in sight. The total size of the budget has been kept at Rs1,098 billion, up by 21.7 per cent from Rs903 billion last year with the deficit at 3.8 per cent of the GDP (3.2 per cent in 2004-05).
The federal government’s taxation targets through the CBR have been kept at Rs690 billion while tax revenue other than the CBR is Rs42.63 billion, bringing the total to Rs732 billion. Dividend income has been estimated at Rs52.96 billion.
The total revenue targets stand at Rs927.4 billion. A major point worth noting is the increase in sales tax estimates. Sales tax collection is estimated at Rs294 billion (42.3 per cent of the total CBR target) which is a 23 per cent increase over the budget for 2004-05. In order to achieve an enhanced target, three possible ways come to mind:
1. Volume of goods sold goes up so that more tax can be received.
2. Sales tax collection efforts become stricter, and more and more retailers/sellers are brought into the tax net.
3. Prices of goods go up, thereby enabling a higher sales tax collection.
It may be noted that capacity utilization in the country during the last few years has been very good and that is also reflected in the GDP growth. According to our understanding, major industries like iron and steel, cement, sugar, textiles and consumable items along with other luxury/comfort goods like cars, electronic items, etc., have been operating at nearly full capacities. Therefore, the chances of greater capacity utilization are low.
At the same time, in the rising interest rates scenario, an increase in existing capacities through leverage may also be difficult. On the other hand retailers have shown their reluctance to be added to the sales tax net, while the level of corruption/mismanagement in sales tax collection also remains high. Therefore, the possibility of the second option becoming viable is also low.
The easiest way would be an increase in sales tax collection if there is an increase in prices of goods, which is not going to benefit the common citizen. If prices go up, inflation goes up, causing a burden on the lower and middle classes of the country and thus the trickle-down effect of growth in the GDP may not have a lasting impact. We fear that sales tax collection targets may not be achieved, causing a higher fiscal deficit than expected, which may go up to 4.2-4.3 per cent of the GDP.
ALI WAHAB
Karachi
I WOULD like to compliment, through these columns, Ms Sherry Rehman on her very thought-provoking article on Pakistan’s defence expenditure (June 16). I think it is important to start a public dialogue to highlight the dangers of continuing with the reckless policy of high defence expenditure.
Is this making the country weaker or stronger? In the changed global and regional scenario, it is unlikely that any country can ever wish to occupy Pakistan. If this premise is valid, what is the justification for the continued drain of scarce resources on this myth of protecting national security?
National security can only be guaranteed through sustained economic and social development. Respect is won by nations not by their nuclear capability or size of their armed forces but by safeguarding the economic and social rights of citizens and the ability and commitment of governments to improve the lot of each citizen in a sustainable manner. Unless we can make a paradigm shift in our expenditure priorities, the future is extremely bleak. The time has thus come to start shouting from the rooftops and agitating at each forum about the dangers of distortions in our expenditure priorities and the consequences for society. The expenditure on the proposed acquisition of F-16 planes (reportedly $3 billion) is a case in point. Is there no thought in the mind of the Establishment that instead of drawing any lessons from the demise of the former Soviet Union, we are happily trying to emulate its example?
On a more specific point, a few days ago, Dr Salman Shah, adviser to the prime minister, while justifying the high defence expenditure was reported to have said that as a proportion of GDP, it was still considerably less than in countries like South Korea and Singapore. What he forgot to mention, however, is that in both countries the structure of defence expenditure is very, very different. Neither country enjoys the luxury of having a large standing army. The armed forces personnel mainly consist of conscriptees. Thus the expenditure on pays and pensions constitutes a very small proportion. In fact, the average monthly remuneration of a conscriptee in Korea was equal to a mere $6 in 1987. Yes, six dollars only.
Indirectly, therefore, the higher proportion of defence expenditure is of a productive nature like defence production, expansion of physical infrastructure, etc. This, in turn, generates some long-term economic activity and benefits. This again highlights the need to bring defence allocations in Pakistan under greater public scrutiny.
J.M. SHEIKH
Lahore Cantt
MR Khurshid Anwer in his letter (July 2) says that Pakistani girls will never be able to compete in tournaments like Wimbledon because they cannot wear “regulation tennis gear” like India’s Sania Mirza. How naive of him. Does he think that Sania was there because of her outfit and that the standard of her game had nothing to do with it? Does he think that she would have won the tournament if she was wearing a more revealing outfit like Mary Pierce’s? I don’t think there is any ban on wearing long pants for Wimbledon or other international events because not long ago Shahnaz Saigal, a Pakistani, participated in Wimbledon wearing white shalwar qameez, and more recently no one banned our girls from the Athens Olympics because of their trousers.
If we consider the playing gear introduced by Mary Pierce and the William sisters as the standard, the players of a few years back would be considered overdressed, although Martina Navratilova could still perhaps beat most of the scantily dressed players of today. Mr Anwer must realize that it is the standard of play that brings laurels to the country and the people for which hard work is needed and no dress, however fancy and revealing, can help our girls bring such joy.
Moreover there is no such hindrance for the men of our country; they can wear regulation gear. What excuse will Mr Anwer think up for no gentleman player being able to show up at Wimbledon?
Actually, tennis was originally played by the upper class, attired in trousers as in cricket. Since in those days it was considered rather inappropriate for ladies to wear trousers, they wore knee-length skirts. There has never been any restriction on dress, which is the choice of the players. We see that male tennis players have increased the length of their shorts and don’t consider their loose shirts to detract from their playing ability, while the ladies have been making their dresses scantier every year.
Let us provide our girls with opportunities to take part in sports and develop their skills instead of making lame excuses. There is always an opening at the top and it is true not only for sports but every field of life, and those who reach the top are the ones who can make their mark.
NASREEN TALAT
Karachi
A Unicef report reveals that more than half of the world’s children are suffering from poverty, war and HIV/Aids. It states that over one billion children are denied a healthy and protected upbringing as promised by the 1989 Convention on the Rights of Child.
Unicef concludes that in developing world children are deprived of seven basic necessities — food, shelter, sanitation, access to safe water, healthcare, better education and information. The figures given by Unicef are very alarming, which show that 640 million children do not have adequate shelter, 500 million children have no access to sanitation, 400 million children do not have access to safe water, 300 million children lack access to information, 270 million have no access to healthcare, 140 million children have never been to school and 90 million children are severely deprived of food.
It is very pathetic that in this age of science and technology the abuse of children’s rights is common everywhere in the world. Children who suffer abuse are scarred both physically and mentally. It is reported that children as young as four years are being trafficked from poverty-stricken areas of southern Punjab like Rahimyar Khan, Dera Ghazi Khan and Bahawalnagar for employment as camel jockeys in the gulf for camel races. During these races many children lose their lives either by slipping off or getting trapped underneath a camel’s feet.
The government should take steps for rehabilitation of such displaced children, provide free education to them and compensate their parents, telling them that children are not meant for such games. It is also the duty of government agencies to exercise effective control over incidences of trafficking of Pakistani children to the Gulf states.
PERVEZ AHMED SHAR
Karachi
LAHORE looked paralyzed after the first downpour of the monsoon. Roads looked like canals and open areas were converted into lakes and ponds. The city apeared completely marooned. Even DHA, the most modern residential society, had knee-deep water on its approach roads. Low-lying areas needed a boat service. Only children enjoyed the rain, jumping and dancing all over overflowing “ponds” and “canals”.
This is not a new phenomenon for the citizens of Lahore which is flooded during the monsoon every year while the city lords make tall promises of a better sewerage system. Billions of rupees are spent from development funds and beautiful carpeting of roads is done but the new roads do not have rainwater drains and hence the cesspools after every rain.
Previously, there used to be open areas along the roads where rainwater used to collect and hence the roads were left clear. But now, after the commercialization and construction of plazas and other buildings, rainwater stays on the roads in the absence of a proper drainage system.
MUHAMMAD AZHAR KHWAJA
Lahore
IT HAS been two months since I have come to Karachi from Lahore. Though we used to come here as children previously too, especially during our summer vacations, some things have changed for the worse. Or maybe these things were not noticed by us as we were busy in playing or savouring the welcome change from our monotonous flat lives back in Abu Dhabi.
Back to Karachi, and while everyone goes on bragging about the competitiveness and the many job opportunities which one can find here, other things are being ignored by a majority of people, including the government.
The very first thing which strikes one is the general condition, the neglected environment and the sorry state of affairs prevalent everywhere — from the roads, to buildings and even public places like parks and the like. It seems as if nobody cares for cleanliness any more. Surely, Lahore not only has a better aesthetic sense but the people over there still seem to have some inclination for neatness and hygiene.
We should as conscientious citizens try and propagate the virtues of clean living first and foremost in our own homes. Many children have developed the habit of letting down their car windows and throwing out chocolate wrappers, toffee covers, tissue papers and whatever they can find in the car. Lack of cleanliness contributes to giving rise to diseases by providing bacteria and viruses fertile ground to breed. If anyone cares for the coming generations it is high time to act now before it is too late.
The second thing which is very disturbing is the hordes of beggars that throng the roads — parents and children, young and old, males and females — all ready to descend upon you. You are left struggling with the question as to whether or not to give them anything. Further, this also indicates that the economy is not as strong as stated, that unemployment is the norm and that the city is now full to the brim with people, partly due to those migrating from other cities and countries.
All the three problems have solutions and we, as concerned individuals, should keep on trying to come up with answers. Starting from practical ideas, we can install dustbins at fixed intervals along the roadsides, especially at bus stops, petrol pumps, etc. The government should also allocate some money for raising public awareness about concerns like the environment and water conservation. People seen violating any rules and regulations should be held accountable for their actions. And it will not help if these laws remain on paper; they have to be strictly adhered to if any substantial results are required — whether a person belongs to a rich and influential family or is a poor citizen should be inconsequential.
SADAF SIDDIQUI
Karachi
THE Punjab government introduced a farewell grant for its retiring employees in 2002-03. The rules on the subject provided that an employee shall be granted one month’s pay on retirement. As is usual in the public sector, official notifications take long to reach far-flung offices. The same, perhaps, happened in this case. Even otherwise, retired employees tend to lose touch with their offices.
Many employees retired without coming to know of the facility. On top of it, a provision was added, perhaps subsequently, that such grant could be applied for within 18 months of retirement. This must have been done in good faith. But it was surely not in good taste. Before the notification reached many of the retired employees, they were already hit by the 18-month embargo.
Would it be possible for the Punjab government to suspend the 18-month limitation period provision for one year from now and give wide publicity to the farewell grant notification through administrative channels and through the electronic and print media? In the meantime it can make arrangements for payment of the farewell grant to all eligible retired employees who till date.
Such overdue payments can be made the responsibility of the administrative offices concerned after due verification. After adequate publicity of the facility, the government may consider adding a limitation period clause afresh, if at all necessary, in consultation with employees’ forums.
M. AHMAD
Lahore
THIS has reference to Mr G. M. Rashid’s letter (June 27) in which he has advised PIA to use two of its B-747s that are parked at the Allama Iqbal Airport, Lahore.
To make these aircraft airworthy would entail huge expenses. Six out of their eight engines need to be refurbished. In addition, the two aircraft will have to go through major checks and a number of modifications including installation of EGPWS and modification of cockpit door. Such heavy expenditure would certainly not be economical.
In the light of these facts one hopes that Mr Rashid will appreciate that the decision to sell these aircraft on an as-is-where-is basis makes sense and so does its plan to lease aircraft to meet the limited period demand created during the Haj and Umrah seasons.
SAMINA PARVEZ
General Manager,
Public Affairs (PIA), Karachi
THE HEC plans to establish four modern engineering universities in collaboration with European countries and launch MS, PHD programmes. This is appreciable. The establishment of a school of mathematical sciences is also to be welcomed.
The government should also launch MS and PHD programmes in IT and engineering according to the curricula in developed countries.
FAZAL AHMAD MINHAS
Lahore
THE food security policy of Pakistan is almost synonymous with the food security of urban consumers with rulers fearful of the latter’s financial and political clout. This is reflected in the July 1 ECC decision to allow duty-free import of wheat and flour. I think India would be the only country which can supply wheat on a competitive basis as Iran and Afghanistan are huge importers.
I think farmers in Pakistan should welcome such duty-free imports and now must agitate for a level playing field. In fact, every year resources worth billions of rupees are transferred from rural areas to urban areas in Pakistan mainly due to suppressed food prices (officially called support prices). Only last year, Pakistan agreed to import Australian wheat at the rate of Rs525 per 40kg. During the same year, Pakistani farmers received an official wheat price of Rs350 per 40kg. In fact, many poor farmers sold their produce for as low as Rs280 per 40kg.
Even the difference between the official local price Rs350 and the international price (that government agreed to pay to Australian farmers), Rs525 per 40kg, comes out to be Rs175 per 40kg. So, with a national wheat output of over 20 million tons, the farmers lost or subsidized consumers with over Rs90 billion in 2004-05.
We should not forget that a vast majority of wheat growers are poor producers as wheat is relatively a risk-averse crop. Pakistan’s internal terms of trade for food and agriculture are far worse than the international terms of trade. I think with duty-free wheat, farmers’ lobby groups must work for duty- and tariff-free imports and export of wheat rather than lament the decision, which is going to erode their income in the short run.
AIJAZ NIZAMANI
Hyderabad
WELL done, Mukhtaran Mai. You belong to an underprivileged and powerless family of a feudal-dominated village of Punjab and were brought up in a culture that inculcates a deep sense of inferiority and insecurity among females. You have shown remarkable courage in facing your tormentors which has added a new chapter to the history of women’s struggle for equality and dignity.
The heights of courage and altruism to which you have risen now beckon you to perform another act — the act of forgiving your tormentors. Such forgiveness if it was given at a time when you were weak and lonely might have produced only limited effect. But now that your inner strength is manifest, you have won a significant moral and legal battle and thousands of people who have come to know your story stand behind you.
The true value of your forgiveness will be that it may possibly slow down the fast moving cycle of revenge and vendetta, violence against violence, in which the human race is caught, leading to increasing rapes, murders, mass murders, genocide, ethnocide, and local and world wars.
DR INAYATULLAH
Islamabad
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