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DAWN - the Internet Edition


September 15, 2005 Thursday Sha'aban 10, 1426

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Letters







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FDI for economic growth
‘Ibn-i-Khaldun & free market’
Society’s unconcern
Lahore ring road
European influence in Israel
Sukkur clock tower
Unmanned crossings
Recognition of Israel
Expressway
Haj operators
Muslim renaissance
50 minutes of water
Dug up and forgotten
Financial year



FDI for economic growth


A GROWING population and a corresponding expansion in the labour force require sustainable economic growth to absorb the latter. Growth is a function of investment or capital formation, which in turn hinges on savings.

Our orientation to consumption leaves a huge gap in savings and investment, thus retarding the pace of economic growth. Our per capita income has risen very slowly from $100 in 1960 to only $736 in 2005. As a result, poverty and unemployment have risen to alarming levels.

Our domestic savings rate has for long been hovering around 14 per cent of GDP. In 2004-05 it was a modest 13.7 per cent.

Inadequacies of domestic savings render it imperative for an economy to go for foreign savings typically comprising loans, aid and foreign savings. Lured by easy access to loan and aid, our economic managers borrowed recklessly while the foreign direct investment (FDI) component remained almost neglected. This tendency has resulted in a big foreign debt of $34 billion.

FDI inflows have, totalled only $9.5 billion over the last 15 years. This trend has had a two-pronged impact on the economy. First, our economic independence has been sucked into the whirlpool of harsh conditionalities, which emanated from flood of foreign loans and aid. Second, since loans and aid are always at the disposal of the state, in the absence of fiscal accountability corrupt and inefficient regimes gobbled up the borrowed dollars.

Foreign investors are in direct control of their investment funds. They also transfer in the latest technology and modern management practices and an economy thus gains largely from efficient, effective and economic utilization of the funds. China’s FDI-led growth is a strong case in point. FDI inflows into China have since 1978 totalled over $1 trillion with $153 billion in 2004 alone. This has given a big boost to its economy. Per capita income has reached $1,000 and the population living below the poverty line has seen a decline to just 10 per cent.

While our present economic managers boast of over $1 billion FDI during the last fiscal year, the reality is that given the prevalence of poverty and unemployment, this is too negligible to have had a worthwhile impact on our economy. Even Nigeria, which tops the Berlin-based Transparency International’s Corruption Perception Index, has outperformed us by attracting $2 billion in FDI last year and hopes to increase it to $5 billion this year.

This is a wake-up call for our economic managers. A sincere re-evaluation of our investment climate is the need of the hour so as to bring qualitative and quantitative factors in harmony with each other, thereby promoting foreign investors’ confidence.

M. SHAHID DAYO
Ghotki

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‘Ibn-i-Khaldun & free market’


THIS has reference to ‘Ibn-i-Khaldun and free market (Aug 27)’. It is correct that the more an organization centralizes power the more it leads to severe distortions. The prime example of it was One Unit, the mother of all restructuring.

Emphasis must be placed first and foremost on the principle of public interest as it leads to the general welfare of citizens. Our approach almost always is reappropriation of past solutions.

A prime requirement, given our temperament, is to go back to what happened during early Islam. Accountability of the executive was within the executive. The Holy Prophet (peace be upon) never gave judgments as a chief justice or an auditor-general but as chief executive officer followed by succeeding caliphs and, in our region, by the Mughals. Judicial review of executive decisions in the absence of equity and morality leads to injustice. Napoleon had absorbed Imam Malik’s Fiqh and ensured complete separation of the executive, judiciary and legislature by setting up administrative courts within the executive where final appeal went up to the CEO as it does today in any private or public limited company or MNC or any army, navy or air force the world over.

Our colonial legacy of adopting our master’s methodology has made accountability of the public servant a farce. It is too late for us to go through the process as adopted in England in about 1200 wherein the chancellor took away cases from the common law courts (when technology had reared its head), dispensed with the due process, used his grey matter and concentrated on equity and morality. About 200 years later this court was absorbed in their judiciary as the chancery division.

However, our temperament is closer to the French than the British. We need to look at something new but based on old established principles and make a break with the status quo. Otherwise more of the same will produce much more of exactly the same.

MASOOD HASAN
Lahore

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Society’s unconcern


PEOPLE believe that reading newspapers is a good habit, and it is true that by reading newspapers we become aware of what is happening around us, where our hopes lie, how the government is conducting its affairs, and generally what is beneficial for us and what is not so good. But with time it seems much has changed.

In today’s world one sees nothing except instances of brutality spread all over the pages of newspapers. Everywhere people are dying because of the hatred of their fellow beings. In some sections of our society women are being treated in the worst possible way. Girls are being raped by those who claim to be their protectors.

Pakistanis will not hesitate in making tall claims of how they will even sacrifice their lives for the country, but, alas, they cannot control their lust and can do things that even the enemy will hesitate to do. What has gone wrong? Whom should one blame for this plight of our society?

First of all, lack of education is the root cause, as most of us know, but there are other factors too. The most serious is that we find no time to consider the upheavals we are witnessing all around us and our attitude is one of unconcern about what is happening to our fellow beings.

Another reason for our moral degeneration is that women themselves have become their own worst enemies. While rearing their children they themselves put the idea in their son’s mind that he is a superior being. The male children are treated with a different moral code than the girls. If a son does something disagreeable, it is often overlooked but in the case of a girl the heavens fall. I am not saying that girls shouldn’t respect the norms and rules of our culture but boys should also be taught to behave in a civilized manner. Mothers are the first teachers of their children and they should teach this boys to respect girls as well as other human beings.

But then sometimes one wonders what is the point of writing about anything or giving one’s suggestions because one sees newspaper columns full of such good advice — but all falling on deaf ears. Everyone seems busy making their houses with gold bricks and think that this is the end and aim of life.

NUSRAT ADIL
Karachi

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Lahore ring road


LAHORITES have been hearing much about the Lahore ring road project from the government for the last two years. The Punjab government finally advertised the location plan of the road in all leading newspapers on Sept 2.

The proposed route is most disappointing and cannot be termed a ring road. It can be an attempt at improvement of roads passing through the most congested and populated area of Lahore. A road passing along Bund Road, Gulshan-i-Ravi Road, Ferozepur Road, New Airport Road, etc., cannot be declared as Lahore’s ring road.

The appointment of a foreign quality assurance expert for the project is another mystery. What is the justification for the appointment when the project doesn’t actually need any such expert? For road construction, we have plenty of local expertise with vast experience, particularly of the local environment and local requirements. Why not benefit at much cheaper expenses from them instead of hiring foreign experts who are not aware of local conditions?

The construction of a three-lane dual carriageway with 7.3 metre service roads on both sides is not possible, particularly between Wahdat Road crossing and Camp Jail and beyond up to the Babu Sabu interchange. It will involve a lot of demolishing of plazas and pucca structures. Further, the construction of the so-called ring road with 100km/h speed in a congested commercial city is a bizarre concept anyway. In Europe, internal city roads have a maximum speed limit of 50km/h for the safety of pedestrians.

ENGR. M.K. CHEEMA
Lahore

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European influence in Israel


MS Lillian Sadka in her letter “Settlers in Israel” Sept 10) has claimed that Israel is not a colonial power run by settlers from Europe, and that most of its citizens are from the Middle East and Africa. True that a large part of the population of Israel comprises Jews from the region, but it is common knowledge that there is a lot of racism in the state.

All positions of power, top government job and control of finances are in the hands of settlers from the West. In fact, so blatant is the racism there that in the 1970s disaffected Arab and African Jews took to the streets and a violent organization by the name of “Black Panthers” came into existent. The group was, of course, quickly taken care of by the Shin Beth and other security agencies.

Despite all the population statistics, the influence of Europe in Israel can also be judged by the fact that the country is on the brink of being given the status of a “Francophone” state. Very few in Israel can speak French, but as most of those in power can, we see this happening.

Yet people have the temerity to make us believe that Israel is not a pawn of Europe.

TAIMOOR T. MALIK
Islamabad

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Sukkur clock tower


THIS has reference to Agha Ali Gohar Khan’s letter “Sukkur clock tower” (Sept 9). Although the colonial rulers built such clock towers, especially in marketplaces and educational institutions, in almost all district headquarters of Sindh, the majesty of this magnificent clock tower is undeniably unrivalled because of its splendid architecture and ideal location.

This 90-foot-high edifice with four clocks, each facing market lanes, is a piece of art. It was built in 1937 by Seth Wadho Mal, a philanthropist and businessman, in remembrance of his two brothers — Sundar Das and Seth Devo Mal — in the centre of the town at a cost of Rs10,000. In those days on its eastern side a small park was also established, adding to the beauty of the tower.

In Sukkur, another clock tower was constructed in 1939. This was the time when Sindh was separated from the Bombay presidency and had its got own provincial government. Pir Illahi Bux was minister of education who spearheaded a movement to end illiteracy in the province. As a symbol of the literacy movement, an “educational tower” was built on a hill facing the Sukkur Eidgah.

This gorgeous tower is 110 feet high with clocks fitted on all four sides. Before the mushroom growth of high-rise structures the impressive edifice was visible from almost all corners of the town. Subsequently, around this tower a beautiful ladies’ park was also established with fine-looking fountains and games of amusement for children. Unfortunately this recreational area has now become a forbidden terrain as a very influential person taking advantage of his position has closed it to the local people.

The British railway authorities built a similar clock tower in 1885 on the railway workshop building located on Station Road near Garam

Godi. This small but quite exquisite clock tower has also suffered official neglect and like other towers of the town reflects a picture of apathy and indifference.

If this state of affairs persists, the time is not far off when these monuments of national importance built by those who valued and cherished the welfare of their town will slide into oblivion.

MANZOOR H. KURESHI
Karachi

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Unmanned crossings


THIS is with reference to the letter (Sept 8) in which the correspondent has mentioned that the Pakistan Railways has 3,750 unmanned level-crossings. He further says that about Rs1,000 million per annum will be required to construct gates and deploy gatekeepers round the clock at unmanned level crossings.

During my visit to India, I noted that Indian Railways has found a unique solution to this problem. On most of their metre gauge/narrow gauge tracks the driver stops the train 10 to 50 before an unmanned level crossing. Then the guard of the train walks to the unmanned level crossing, closes both the gates of the crossing and waves the green flag to the driver. The driver then slowly moves on and stops the train immediately after passing the unmanned crossing. The guard then opens both the gates of the unmanned level crossing and waves His green flag after boarding his compartment.

KHAWAJA MUHAMMAD SHAFI
Karachi

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Recognition of Israel


HATS off to the Pakistan foreign minister who was bold enough to confess before he met his Israeli counterpart recently that Pakistan had secret contacts with Israel for the past one decade.

The making of a country’s foreign policy by and large mirrors its national agenda, priorities, social attitudes and political structure. At present, our emphasis should be on our national agenda and priorities. Our national agenda is to curb all types of terrorism as a frontline ally of the US in the war against terrorism. The first and foremost priority is to make Pakistan economically strong and find a respectable place in the comity of nations. Present-day regimes cannot live in isolation. Interaction and bilateral dialogue among states is essential in view of globalization. Pakistan, after recognition of Israel, can serve the cause of the Ummah in a more befitting manner. We should not adopt an ostrich-like approach. Muslim states like Turkey, Egypt, Morocco and Jordan have already recognized Israel, and in the supreme national interest we may follow suit.

DR ZAINAB RIZVI
Lahore

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Expressway


THIS is with reference to the letter “Expressway” (Sept 9).

Among other things the correspondent has proposed that the open space on both sides of the rail track from Malir toward Karachi city may be used for the expressway that will start from Malir and connect with Maulvi Tamizuddin Khan Road.

I go daily to office by the KCR and would like to update the correspondent as well as your readers that every inch of available land around both sides of the rail track between Malir and the Karachi City station has been fully occupied by land-grabbers and now there is no space left around these tracks.

K.M. SHAFI
Karachi

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Haj operators


I AM glad that suggestions regarding Haj operations have received due attention from the joint secretary, ministry of religious affairs (Sept 11). But then the official has skipped some points — for instance, the quota of 1,500 forms allowed in the Haj policy. Someone should clarify this.

Also, operators have not yet received any recognition letter on the basis of which the Saudi embassy issues business visas to finalize accommodation agreements with the owners of buildings in Saudi Arabia. One fails to understand the ministry’s delay in the matter.

SARFARAZ ZIA ANSARI
Karachi

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Muslim renaissance


PRESIDENT Gen Pervez Musharraf while addressing a seminar in Islamabad the other day stressed the need to set up an organization to work for a Muslim renaissance. He also proposed that Pakistan should be the source of that light.

Renaissance literally meant rebirth when Europe emerged from the Middle Ages. It was the result of a vibrant civilization that flourished in Muslim Spain, the centre of classical learning and values in Europe for several centuries.

It is wrong to think that renaissance can be appertained to any organization as President Musharraf thinks. It is the result of various historical realities that react or attract each other in the course of time. The renaissance that resulted in European expansion also saw the resurgence of Muslim power. Muslim renaissance, in fact, is still in its transitional stage and needs a balance with an arrogant West. The dialogue theory put forward by President Musharraf is a good proposal, but I fear it will not go far in the face of a dominant West.

FAIZ AHMAD SHEHABI
Lahore

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50 minutes of water


THE residents of Street 15 and onwards of Gulshan-i-Faisal Co-operative Society in Bath Island, Clifton, Karachi, are facing an extreme shortage of water. Every day we get water for just 50 minutes, from 8.10pm to 9pm. We have complained to those who operate the KWSB pumps but they have no answer except to blame the valve men who open and close the valves located at different streets in the area — apparently they do this to divert water illegally to homes of people who pay them a bribe.

We have to pay to get water tankers, which provide brackish water as a result of which we develop skin and other health problems. The KWSB is requested to take immediate action to resolve our problem.  

DR ANEEL MATHRANI
Karachi

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Dug up and forgotten


WHY do Karachi’s civic agencies dig up roads if they have no intention of repairing them? Abul Hasan Ispahani Road was dug up in July and then forgotten. This road runs parallel to Rashid Minhas Road and takes a heavy load of traffic between Safari Park and Sohrab Goth.

Now there is utter mess there, with the traffic police and repair gangs conspicuous by their absence. Besides, dust is raised because of the digging, and it gets mixed with toxic fumes emitted by vehicles. The result is a very high level of pollution, which is dangerous, especially for children and the old. Would someone in the city government and the traffic police kindly have mercy on the people of the area and repair the road?

JAMIL ZAHID
Karachi

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Financial year


WHY does the financial year in Pakistan end on June 30? It should not, for two reasons. First, recovery of all kinds of taxes (federal, provincial or local) ends in June and recovery (field) staff is unable to work to full capacity in June — due to the hot weather. Second, ours is an agricultural economy and no agricultural product is brought in the market in June. Hence, the capacity of tax-payers is limited.

I suggest the financial year should end either on Dec 31 or on March 31, as before the Ayub era.

ABU ABYAN
Via email

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