Iran’s response

IRAN’S response to the package of incentives offered to it three months ago by the five permanent members of the UN Security Council and Germany provides an opening for further negotiations - that is, if the US and Europe are willing to seize it. Matters were complicated by the West’s impatience at Tehran’s unwillingness to hasten its response when the package was offered. In July these powers went to the Security Council, which adopted a resolution demanding that Tehran freeze its uranium enrichment programme before the end of August or face economic sanctions. Unsurprisingly, Iran rejected this promptly. In their latest communication the Iranians have not changed their position on uranium enrichment, but there are indications that they might be inclined to accept suspension of the programme during the course of negotiations. With the Bush administration harping on the Security Council resolution 1696 of July 31 and Iran focusing on the package of incentives, it is plain that the two sides are following two parallel tracks that may never meet.

The fact is that the war unleashed on southern Lebanon by Israel, its offensive in Gaza and Iran’s stand-off with the West on the nuclear issue have made the Middle East an extremely sensitive and volatile region. As things stand at the moment, Iran is the key factor in this crisis because of the backing it has provided to Hezbollah and its staunch anti-Israel stance. To provoke Iran further by making its nuclear programme the central issue of confrontation could only help intensify the tension. There is no denying the fact that Iran has not violated the NPT, even though it may be an inequitable treaty, by enriching uranium. The IAEA’s inspectors have also not been able to report any grave violation of the safeguards prescribed by the NPT. Iran has categorically denied that it has any intention of manufacturing a bomb. In a situation where Iran cannot be held guilty of violating its international commitments, it would not be politically wise to put pressure on it by imposing sanctions on it. The significant factor in Iran’s response is that the Ahmadinejad government is willing to negotiate on the issue. Its formal reply offers talks with the six co-sponsors of the package. The Iranian negotiator, Mr Larijani, expressed his willingness to talk in spite of “the other parties’ illegal move to refer the case to the Security Council”.

The crisis in the Middle East calls for a process of pacification and conciliation on all fronts in the region. Since Iran has chosen not to opt for confrontation but for negotiation, the West should not intensify the polarisation either. In other words, it must set aside the deadline for the sanctions stipulated in the resolution of July and negotiate with Iran to reach an understanding on uranium enrichment. This would require for the West to concede Iran’s right to have a uranium enrichment programme and then an agreement on the incentives it has offered as a quid pro quo for foregoing its right at the moment. Talks at this stage will ease the stand-off not just on the nuclear issue. It would also have a beneficial effect on the overall Middle East situation. For the time being Iran could consider putting uranium enrichment on hold until a later date when the political climate is more congenial.

Need for a political approach

THE lull in acts of terror and subversion in Balochistan should not lead to a sense of complacency in the government. It would be wrong to assume that the corner has been turned and that the militants are on the run. Given the financial and political support they enjoy from some powerful sardars in the province, coupled with the government’s claim that some foreign powers support them, the militants can return to their subversive ways. The basic issue remains Balochistan’s economic backwardness. In practical terms, this means pervasive poverty and a low literacy level. Because of decades of neglect, infrastructure development has not taken place, and there has been no industrialisation. This is the reason why there is no educated middle class which could have a stake in democracy and fight for Baloch rights. Instead, the political scene has been controlled by some sardars who have no stake in democracy and whose main concerns revolve round maintaining their social and political hold. This is unfortunate for a province which has a small population but an abundance of natural resources, especially gas, gold, copper and other minerals, besides agricultural and fisheries potential. The government has launched some ambitious projects that include the Gwadar port, the coastal highway, the Saindak copper mines and the Mirani dam. Sooner or later, when completed, these projects should benefit the people of Balochistan.

The same kind of political and economic approach is needed in Waziristan. The NWFP government now seems to be placing less reliance on force and exploring the possibilities of seeking a peaceful disarming process and possibly the exit of foreign militants. An agreement is expected to be signed tomorrow between the Waziristan administration and the tribal jirga. Even though details of the agreement are not known yet, the government, according to a Dawn report, has made a major concession by allowing foreign militants to stay on provided they give up arms and abide by the law of the land. This is a departure from the previous policy under which the government insisted that all foreign militants get themselves registered. In both Balochistan and Waziristan, the government should know that it is the political approach that will produce results and not force.

One-dish meal at weddings

GROUND realities were recognised on Tuesday when both houses of parliament passed a bill allowing ‘one-dish’ meals at wedding receptions. The Marriage Functions Ordinance 2000, which barred the serving of refreshments other than hot or cold drinks, was being flouted at almost every level of society, particularly by the affluent and well-connected. There was no shortage either of loopholes. Those with residences large enough to accommodate hundreds of guests simply restricted festivities to the safe confines of private property. Others found that minor alterations to the wording of invitation cards did the trick — as long as ‘wedding’ or ‘valima’ were not mentioned, food could be served at ‘receptions’, ‘meetings’ and ‘get-togethers’ at clubs and hotels. In short, the ordinance had become unenforceable other than at conspicuous marriage halls.

The law was also at odds with traditional notions of hospitality. While some welcomed the austerity drive, a far larger number felt that they were slighting their guests by not providing food on an occasion as important as a wedding. On the economic front, the ban was adversely affecting the catering and poultry industries, which employ labour on a large scale. The new ‘one-dish’ regulation, which will become law once the president signs the bill, permits the serving of four food items in addition to hot and cold beverages. The danger here is that this relaxation may be viewed as an admission of failure, a sign that the government simply changes the law if it is unable to enforce it. In this scenario, it is imperative that the new definition is not stretched to include an ever increasing number of dishes. Given the scale of the job, policing alone will not do. The government has accepted a legitimate demand and it must now be accepted that adherence to the new law is an individual and collective responsibility.

A rapid industrial expansion

PRIME MINISTER Shaukat Aziz has defined job creation and income generation as major objectives of his government. They are indeed imperative and urgent in a country with extensive unemployment where more than a fourth of the people live in absolute poverty.

He wants to achieve that through a rapid industrial expansion that is all-embracing and ranges from granite industries to silver jewellry making with textiles as the centrepiece. It is to cover large scale industry as well as large and medium enterprises in their full range.

A strategy is being drawn up for that purpose and it should be ready by October. It has taken a long time to formulate the strategy and let us hope the outcome will be worth the long wait. The strategy will promote the concept of “one village-one industry” which has been borrowed from Thailand where it has been a major success. The range of such industries is being expanded so that the talents and skills of each village can be promoted and full advantage taken of them.

The prime minister wants the ministry of industries and production to focus on the development of the small and medium enterprises, the engineering sector and on setting up of export processing zones. Port Qasim area is to have a textile city and an industrial park. He also wants the ministry to focus on horticulture, home appliances, sports goods and surgical goods and furniture-making. The export target for furniture last year was $22 million, but the performance fell short of the target by three million dollars.

The fact is that in the early years Pakistan was famous for its sports goods, surgical instruments and cutlery, but later there was more stress on the large-scale industry and these industries were neglected and suffered for want of adequate patronage, sufficient investment and modernisation. Now even Pakistanis prefer these items produced abroad and pay higher prices for them. So, the competitors of Pakistan in these areas improved their products and took over the markets.

The prime minister wants “one village-one industry” to specialise on a variety of items ranging from special textile, silver jewellry, ceramics and blue pottery depending on the talent available in each village and its tradition.

These industries can improve the non-farm income in the rural areas. But mere reliance on old talents and skills is not enough. There is need for greater research to develop new products; the workers in the rural areas are to be given training to acquire new skills and refine their talent. Having developed skills, the trained workers can become self-employed producers.

Meanwhile, the ministry of industries has come up with programmes to develop marble and granite industries, gems and jewellry making as well as to promote the diary industry. These industries can make a major contribution to the economy. The major focus should be on value addition. At a time when the exports are excessively dependent on imported inputs beginning with machinery, raw materials, energy and packaging materials, we have to make better and higher priced items even for domestic consumption.

Although domestic consumers prefer cheaper items, the fact remains that even such items are made by using imported raw materials. If such products have a brief life they will be discarded and we will have to import more and more raw materials to manufacture their substitutes. The best example is the water equipment made in Pakistan.

The ambitious plans for industrial expansion cannot be put into effect if adequate electric power is not available to run the industries, both small and large. Industrial production in Karachi has been disrupted in recent months by the failure of the KESC to ensure steady supply. The exports have suffered due to these setbacks. The government is now making extra efforts to increase the output of power, including production of more nuclear power as part of its Energy Security Plan 2005-2030.

It is also to have a few thermal units hired from the General Electric of the US and offer higher tax and other incentives to those who agree to produce nuclear power here under the supervision of the International Atomic Energy Commission, like the nuclear power plants at Chashma. The Chinese companies are interested in setting up such plants.

More and more funds are also being pledged by donors for the $6 billion national trade corridor which will take six years to complete. After the World Bank has committed $1.8 billion, the Asian development Bank has pledged dollar one billion. The NTC will provide transit facilities for trade with Central Asia, western China, Afghanistan and Iran. Initially it will connect Karachi-Gwadar and Kunjarab section which is estimated to cost $2.8 billion. It will develop the ports, rail and road systems and shipping facilities as well as the aviation system. Such infrastructural development is regarded essential to ensure a steady economic growth of 7-8 per cent.

Meanwhile, with Ramazan coming in a few weeks the usual apprehension that prices of essential goods particularly of those used more commonly in this month will rise. The government is arranging for easy availability through import of those items which are in short supply. The federal government has asked the provincial and local government to be very vigilant. Market committees are to be set up everywhere and price magistrates to be appointed with full powers.

The government is to ensure that the markets have enough supplies of items beginning with Atta. The Sindh government is releasing as much supplies of wheat as the flour mills need at Rs430 for 40 kilograms. Similarly adequate supply of sugar is to be ensured from the official stocks so that its price is brought down in Ramazan to around Rs30 from around Rs 40 at present.

The fact is that the shopkeepers procure enough stock well before the Ramazan begins and begin pushing up prices which reach their peak before eid. Thereafter, they do not really bring down prices to the pre-Ramazan level. The consumption of foodstuffs goes up in Ramazan by about 50 per cent.

Every year we are told that the government will not permit profiteering and exploitation of the faithful who fast. Initially there is some price check and a few arrests, and then they are let off after minor fines. Prices then go up and up as official intervention is seen ineffective. Even when there is no shortage and the supplies are adequate, the profiteers create a shortage through hoarding and manipulation.

Will it be any different this Ramazan? The prime minister wants to make a difference and so he is in touch with the businessmen to have the desired results. He is not relying on the sugar mill owners, also sitting in his cabinet, to bring down prices; instead he will import more and release the government stocks. He wants to succeed in this case as the general elections are due next year.

Meanwhile, the Utility stores are reported to be selling substandard Banaspati Ghee and oil repacked by it. The utility stores should not ruin their reputation. There were also reports that the Zakat fund continues to be misused. The auditor-general of Pakistan has reported irregularities to the extent of Rs165 million in the Zakat fund in his report to the National Assembly for 2004-05 . While more funds are being committed for poverty alleviation the funds collected from people in the name of Zakat should not be misused or wasted.

A shame for Congress

IN the latest judicial rebuke of the Bush administration’s tactics against terrorism, a federal judge in Detroit ruled last week that warrantless wiretapping of US citizens violates the Constitution and federal law. The decision is an embarrassment for President Bush, but it also should be a source of shame for Congress.

Eight months ago, the New York Times reported that the National Security Agency was monitoring the international phone calls and e-mail messages of some Americans without obtaining a court order as required by the Foreign Intelligence Surveillance Act, or FISA. Several proposals for reining in the NSA operation were offered. But none of them were enacted before members of Congress left town for the summer.

Last week’s ruling by US District Judge Anna Diggs Taylor should jump-start that stalled effort. It came in a lawsuit brought by the American Civil Liberties Union on behalf of journalists, lawyers and other scholars with business contacts in the Mideast.

Her decision convincingly rebuts two of the Bush administration’s legal positions: that the president has the inherent constitutional authority to engage in surveillance of Americans, and that Congress approved such eavesdropping in 2001 when it authorized Bush to use “all necessary and appropriate force” against individuals and nations implicated in the 9/11 attacks.

The decision also gives short shrift to the administration’s argument that a lawsuit against the NSA’s monitoring of telephone calls and e-mail messages couldn’t go forward because it would result in the divulging of state secrets.

The Bush administration, the ruling notes, had “repeatedly told the general public that there is a valid basis in law for the Terrorist Surveillance Programme.”

—Los Angeles Times