Providing water, power and gas to all
By Sultan Ahmed
AT a time when people are clamouring to have at least a small share of the fruits of high economic growth, President Musharraf has promised water, power and gas for all by 2008, and if possible by the end of 2007. On his part he means that. And he wants the prime minister and the chief ministers too to publicly make such a commitment to provide these basic services to people and actually deliver them.
Anyway the prime minister and the chief ministers are bound to honour his commitment and deliver such essential services by the early 2008. If people are cynical in their reaction to such announcements or commitments, that is understandable. They have been promised such facilities before as well by the past civilian and military regimes. And instead of getting the promised services, the conditions became worse for the common man and there was talk of great deal of corruption in such areas. People will have to see if it is really different now and that what is being promised is delivered too as well, and in full measure and not as a token or symbolic gesture.
But for the president’s commitments to be fulfilled, a great many steps are needed and there are vital prerequisites. To begin with, large funds are needed and these will have to be separated from the annual development plan outlay. And such funds will have to be adequate to meet the needs of the whole country and in time. Corruption shall not be allowed to squander such funds.
When the president says these basic facilities should become available before the end of 2007 there is a political dimension to it. General elections are due in the last quarter of 2007 and the president and the prime minister following the appointment of a new chief election commissioner have reaffirmed that. If the masses are provided water, power and gas before that date, they will be happy to vote for the ruling party.
To begin with, a study has to be conducted of the real cost of supplying water to all, including all those in the rural areas. And the cost has to be verified to make sure it is truly economic. Then the requisite water has to be found particularly for large cities like Karachi. The Sindh government and the farm lords have been objecting to more water being diverted from River Indus to Karachi, thus reducing the water availability for Sindh farms. If more water is taken out of Indus now will the same objection be raised again? That is an issue that needs to be attended. When it comes to providing electricity to all including those in the far off villages we need far more power than what we have at present. Will all the current efforts to increase power, initially through the thermal system be successful by next year and the power supply increase radically? If that does not take place the president’s commitment may not be fulfilled within the time frame suggested.
Mr Shaukat Aziz had earlier said that remote villages would be provided at least a bulb. That certainly is not power for all because that means enough power to run cottage factories as well. In the cities and towns where there is power now the transmission and distribution lines are too old and break down too often. Those lines have to be replaced at a high cost and if that is not done a great deal of power will be wasted and people will feel utterly frustrated.
In addition, theft of power which along with the technical losses is said to be 26 per cent in the Wapda region and 40 per cent in the KESC area should be greatly reduced. That will greatly cut the cost of power production and increase the profitability of the KESC and Wapda. Some of the additional power to be developed has to come through foreign investment and we hope the requisite foreign direct investment becomes available in time.
President Musharraf has now spoken of cheaper gas at a time when we are going to import it from Iran, Turkmenistan and Qatar at a higher cost after heavy investment on the pipelines. We do not have enough gas at present and those seeking additional supply are too many beginning with the fertilizer companies which have a higher priority. So the government may rely on LNG which is to be promoted in a big way in the country. That is not quite the same as receiving gas through the gas pipelines directly.
Fulfilling all the three promises by the president will be a great feat. And people will expect that from the government after 60 years of the birth of Pakistan. And that is what can give real meaning to high economic growth, and not the increased loans from banks and the multiplicity of credit cards and luxury cars provided on an instalment basis.
If clean and safe water offers great many advantages to people, that can be greatly helpful to the government as well. Clean water can save the people from half stomach ailments and other diseases and reduce the public health budget of the government.
The president has also asked the prime minister and the chief ministers at the centenary celebrations of the Pakistan Muslim League in Lahore to make a public pledge with him to do everything possible to bring down poverty and prices and provide jobs to people. This commitment has no time limit but is a broad one which will strain the resources of the government in full. Of course, such problems should not be handled in the manner the sugar crises was handled or mishandled. Ultimately the prediction came true that the federal ministers along with several sugar mills owners will prevail in seeking withdrawal of the inquiry initiated by the National Accountability Bureau. The mill owners with large sugar stocks promised to bring down prices if the inquiry into their conduct was withdrawn. The inquiry was promptly withdrawn but the sugar prices went up and now the sugar mills have been served with a routine show cause notice to tell the government why action should not be taken against them for indulging in profiteering.
Now that sugar mill owners have evaded action against them it is the turn of the cement industry to raise their prices. They have been doing it all the time and did far more recently as they are sure no action will be taken against them.
The response of the government to the sugar crises is to increase the number of utility stores and raise the sugar supply to such stores. But what the utility stores, despite an increase in their number and rise in the quantity of sugar, sell is a drop in the ocean, except in Islamabad. In other places the consumers have to travel a long distance and what they get by buying sugar at lower prices they lose on the higher cost of travel. So the consumers prefer to buy sugar locally and save travel time and fare.
The supply side of the economy needs to be attended well. That is what the new Governor of the State Bank of Pakistan Dr Shamshad Akhtar had also said before she assumed office. The prime minister has been talking time and again of improving the supply and logistic chain and is making positive moves in that direction. He is encouraging foreign companies to enter the wholesale trade in Pakistan. He met the officials of a European firm, Macro, which intends to set up 15 to 20 cash and carry outlets in Pakistan, beginning with one in Karachi and Lahore this year.
Macro would reduce the abuses of the middleman in trade and have direct contact with the farmers and give them a better deal. Mr Shaukat Aziz says that there is only one wholesale market in each city in Pakistan while in other countries there are several such markets in each city . He said the SHV Holding, another European firm, was interested in the wholesale market in Pakistan and would help the farmers to improve the quality of their products as well as promoting packaging and standardization of their agricultural products.
If we can have a number of distributors like Walmart of America which says the customer is the King that can be greatly helpful to people. In the final analysis what matters is what the government delivers and not what it promises. And its officials should not be allowed to practise the usual abuses and achieve what the government wants.

