| April 28, 2007 | Saturday | Rabi-us-Sani 10, 1428 |
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Delusions about ME peace
Our visit to Pakistan
A matter of pride for us
Broadening of road
Neglected interior
Zakat on property
Loadshedding: rotation plea
Resuscitating military regime
Searching for friend
Waste less
Cellular hazard
Readers are requested to restrict their comments to a maximum of 400 words. We reserve the right to edit letters for reasons of clarity and space. Letters, including those by e-mail, should carry the complete postal address of the sender. The views expressed in these columns do not necessarily reflect the views of the newspaper.—Editor
YOUR editorial (‘How critical is American assistance?’, April 22) concludes that “whether one likes or not, the overwhelming financial clout the US wields at present in this globalised world is a fact of life. It would, therefore, be advisable for our economic policy makers to think twice before taking a leap in the dark.”
Nothing could be farther from the reality of the international political economy today. As some one who worked for the world’s biggest bank (an American bank) for nearly 20 years and managed its over $1 billion emerging markets equity portfolio across the developing world, I cannot but strongly disagree with both your conclusion and the merits of the argument you have made. To be brutally frank, the conclusion displays lack of in-depth analysis of Pakistan’s situation and knowledge of the changing dynamics of international political economy.
Let me first address the point of international political economy. In a global context, the greatest change in the dynamics of international capital flows and their importance to the developing countries since the early 1990s is the fact the global private investors (companies, funds, etc.) have replaced the US/other G5 countries, the World Bank and other multilateral institutions as the largest and dominant source of financing their growth and development. Yet, many analysts here, in the government as well as in the media, appear to be living in the 1980s.
The occompanying data illustrates this point (See table).
In summary, while the emerging economies no longer are net recipients of ‘aid’ from multilateral institutions and western governments, they managed to earn a current account surplus of $317 billion in 2006 while receiving $501 billion in investment capital from international private companies, funds and banks. At the same time, they repaid $25.7 billion in the so-called “aid and loans” to the US, western governments and multilateral institutions.
This has been the case across all the developing economies from Asia to Eastern Europe to Latin America. Today, due to massive repayments from the developing world, the IMF (a proxy for the US) loan book has shrunk, with Turkey accounting for nearly 40 per cent of its total loan portfolio as most other countries have got rid of its loans by financing their needs through international private capital markets. Even Ghana and Congo are able to raise private capital today due to a huge change in the nature of the world’s financial flows.
As regards the comments about Pakistan’s current and fiscal deficits, it is simply wrong to look at the absolute numbers as a measure of anything. Both current account and fiscal deficit are not at their highest in terms of their percentage to the GDP. Most of the American assistance goes to the military and its impact on the economic development is highly questionable due to reasons I have articulated in various articles written for Dawn’s EBR weekly during the last couple of months.
Actually, it may even be better for the development and reforms process if we reduce the inflow of ‘aid’ and mobilise domestic and international private capital as many other Latin American and Asian countries have successfully done since the early 1990s. A mere five-point increase in tax-to-GDP ratio from 10 to 15 per cent would eliminate any need for official (US or not) aid, would bolster confidence in our debt repayment capacity (hence credit ratings) and mobilise resources for sorely needed ‘real’ development expenditure (i.e., infrastructure and education) and not military hardware.
YOUSUF NAZAR
Former Head of Emerging Markets, Citigroup
Karachi
Sources of Emerging Market Economies’ External Financing
(billions of U.S. dollars)
2004 2005 2006
Current account balance 150.2 257.8 317.0
External financing, net:
Private flows, net 348.8 509.3 501.8
Foreign Direct investment, net 156.0 198.7 185.3
Portfolio investment, net 39.1 55.8 69.7
Commercial banks, net 60.8 141.8 143.3
Non-banks, net 92.9 112.9 103.4
Multilateral institutions -15.0 -40.4 -25.7
Governments -2.3 -18.1 -22.5
ONE fails to understand the repeated offers extended to Palestine and Israel by Pakistan’s leaders to play a role in the Middle East peace talks.
Many US and European leaders have tried to shape their legacies by attempting to be champions of the Middle East peace process as it remains the single most contentious foreign policy issue in the world. Some like Clinton came close and others like Carter achieved breakthroughs such as the peace accord between Egypt and Israel.
In Clinton’s case, he recognised late in his second term that save for a roaring domestic stock market and an overall healthy domestic economy, there wasn’t a global element to his legacy. This led to the Camp David Accords in 2000 in which president Arafat and Israeli prime minister Ehud Barak came close to signing a peace deal.
Since when does Pakistan command the respect on the world stage to play such a part? What clout, political or economic, does Pakistan enjoy with Israel or Palestine? What can Gen Musharraf hope to achieve that President Clinton and President Jimmy Carter failed to do with all the power they wielded over both countries? What historical reference can Pakistan provide where its mediation has delivered any substantive breakthrough in the Middle East peace process or for that matter in any global conflict? What moral authority does Pakistan have to mediate in the Middle East peace process with its own population starving, with crime and corruption at historical levels, with water, power, and energy crises on our doorstep, with multiple political crises brewing perpetually, with education still being a privilege rather than a right, and with one of the highest rates of inflation in the world?
Let's stop being delusional on what we can achieve and impact in the world. Let’s focus on the tasks at home before worrying about the rest of the world.
A.A. AHMAD
Lahore
IN March and April my husband and I had the pleasure of touring Pakistan for three weeks. Our tour took us from Islamabad to Karachi, Sukkur, Lahore, Peshawar, Saidu Sharif, Chilas, Karimabad, Gulmit, Gilgit and back to Islamabad.
For both of us, our holiday was the trip of a lifetime. Through your newspaper we would like to thank the many people in Pakistan who made our holiday a success. We were greeted everywhere with warmth, dignity and enthusiasm. The hospitality that we received in Pakistan is unlike anything that we have experienced in any other country.
We both feel truly lucky to have visited Pakistan. It is hard to choose the best memories, but some which stand out for us are the manager of the hotel in Saidu Sharif who, on Easter Sunday, gave us a sugar Easter Egg and chocolates; the waiter in the hotel at Lahore who beamed with pleasure when we told him how much we liked his city; the breathtaking flight from Gilgit to Islamabad; watching sunset over the mountains from our balcony in Karimabad; the elderly gentleman at the Shah Jahani mosque in Thatta who greeted us so warmly and made us feel welcome; the two young gentlemen at the hotel in Gulmit who went far out of their way to make our stay memorable and enjoyable; and, finally, our first glimpse of the Khyber Pass.
Clearly, one trip to Pakistan is not enough. My husband and I both hope that one day we will return to your extraordinary and beautiful country.
JOCELYN SMITH
Vancouver, Canada
IN these days of doom and gloom and excessive pessimism brought on by political and judicial crises, the havoc being wreaked by religious fanatics and the rather embarrassing ouster of our cricket team from the World Cup, there is a piece of happy news for sport lovers, in general, and for the players, fans and enthusiasts of the greatest game of all,'bridge', in particular.
For the uninitiated, it is the most fascinating card game played and enjoyed by tens of millions of people all over the world.
Zia Mahmood, who is a Pakistani by birth and now lives and plays bridge in the US, is universally regarded as one of the greatest players of all time in the history of the game.
He is also one of the most charismatic and recognisable personalities of the bridge world. In February 2006 he was declared honorary Member of the Year by the American Contract Bridge League (ACBL), the governing body for organised bridge in North America. And, recently, Zia has been elected to the ACBL Bridge Hall of Fame, the ultimate accolade for a bridge player. He will be inducted at a formal ceremony in the summer of this year in Nashville, Tennessee, USA.
Zia is a 17-time North American champion and four-time ACBL Player of the Year. He has also won numerous other bridge championships, both in the US and in Europe.
Besides, he won laurels for Pakistan when he led the national team to within a whisker of winning the World Bridge Championships in 1981 (Bermuda Bowl) and 1986 (Rosenblum Cup). On both these occasions, the rookie Pakistani team attained the distinction of being runners-up.
The achievements of the legendary Zia Mahmood are a matter of great joy and pride for all Pakistanis.
TANWEER-US-SAQALAN
Lahore
THE two-way narrow single-track road between Karachi’s Pehelwan Goth and Sharea Faisal via ASF headquarters immediately requires its broadening because of rapid growth in the flow of vehicular traffic on it. This road is the only easy link between Jinnah Airport and various destinations of the city for public, in general, and ASF personnel, in particular, due to ASF HQ.
Ever since development of Gulistan-i-Jauhar, the general public, particularly the employees working at Jinnah Airport, as well as arriving and departing passengers, use this road on a 24-hour basis to avoid congestion and jam-packed traffic, specially due to the movement of VIPs on Sharea Faisal.
Although the movement of vehicular traffic has grown many times, the road remains as narrow as ever in spite of the fact that a lot of space is available on both sides of the road. What is immediately needed is to construct two one-way roads with elevation of traffic island in between and footpaths on both sides for pedestrians, keeping in view the future rise in numbers of vehicular traffic movement.
HASAN ADIL MALIK
Karachi
STATE-of-the-art health, educational, industrial, commercial, financial and such other facilities are being concentrated in Islamabad and a few other major cities, and now being expanded to meet the requirements of the growing ruling elite and the rich.
In comparison, the interior of the country is not only being neglected but also exploited, primarily for food supplies, cheap labour, mostly low-grade government servants, power generation, various natural resources, etc, to cater for requirements of major cities, particularly for the affluent class.
For example, the Baloch of the Sui area are living in abject poverty whereas Sui gas worth billions of rupees is being consumed every year elsewhere for over 50 years.
Similarly, over 300MW electric power generated by the Chashma Nuclear Power Plant and the Chashma Barrage Hydroelectric Plant is being supplied to high-priority areas whereas Mianwali is experiencing frequent loadshedding, power breakdowns and many affected by the Chashma Barrage are still suffering even after a lapse of over 35 years. Fate of those affected by the Tarbela Dam is no different.
Most people in the interior, including in Talagang, are struggling for survival while the ruling elite and the affluent class in major cities are opting for fun and pleasure. For example, in Islamabad, poor residents of a historical village are being uprooted in the name of opening additional fast food outlets, while Rs5 billion has been allocated for some amusement projects in F-9 park, which is mostly utilised by residents of posh sectors ‘E’ and ‘F’.
The reason for this injustice to the interior is simple: almost all decision makers, including the so-called elected representatives from the interior, reside in major cities to avail themselves of modern facilities. Naturally, they favour more and more modern facilities where they reside. As such, there is no one to speak for modern facilities for the interior. This creates a feeling of deprivation, exploited by the very same politicians who are actually responsible for it.
This disparity is not in the interest of national unity. The rulers will be well advised to stop further concentration and expansion of modern facilities in or around major cities, and plan their dispersal in the interior, including Talagang, where the majority lives.
MALIK FATEH KHAN
Talagang
YOUR editorial, ‘Zakat on property’ (April 16), has raised very important and pertinent points. Further, the subject of zakat on property is very confusing. For example:
a) How to calculate zakat on immovable property?
Should zakat be calculated on the market value of each immovable property every year and paid every year? Sometimes the owner may not have enough cash to pay zakat on property.
Then there are fluctuations in the value every year, sometimes negative, and he may not sell it. And if the spell of negativity is too long and the property is not saleable in the market for years together, how should he calculate zakat?
b) Or if it was intended to build a house on a property at the time of purchase and it was not intended for sale. But later on, the property was sold due to lack of cash, and the sale money was utilised for repair/renovation of the house in which one was living, as well as for purchase of transport and other requirements, with little leftover, will zakat be paid on the sale proceeds?
c) In some cases, property is purchased, but possession is not given or a shop/apartment is booked. The property may be of some value, only in the books, but not real, in the beginning and later on, due to some reasons, the chances of possession become dim or deferred for an unknown length of time (as the projects are delayed for an indefinite time), will zakat be leviable on that property?
ZAFARUL HAQ MEMON
Karachi
KARACHI has been divided into four groups for the purpose of loadshedding. Group four, since the beginning of the outage, continues to suffer the most, as the area is plunged into darkness at or after the midnight.
The KESC is allergic and hostile to the idea of rotation which ensures equal treatment to all the groups and has been practised in the past. Senior officers (most of them are customer-friendly), if and when available, subject you to a long lecture and try to point out the intricacies of the problem -– rotation.
It is not understood as to why the current management cannot implement rotation which would save the utility service from the accusations of being hostile and unfriendly towards the customers who pay for the fat salaries. Do not be a sadist to see the people suffer.
Patience has almost run out as group four has had enough of discrimination.
KHAN A. SHAMSHAD
Karachi
IT is extremely shocking to see the news reports about an impending deal between the military regime and the largest political party of Pakistan that has suffered immensely under the present and the past military dictators.
The timing of any such deal makes it even worse as it comes at a time when the regime seems to have finally entered the twilight zone. A popular movement in the country has crippled the regime and it is increasingly becoming dysfunctional. Why breathe new life into it?
The current movement spearheaded by the legal fraternity for the independence of the judiciary is truly phenomenal. It could dynamically change the future of the people and the country. The civil society leadership should come forward and avail itself of the opportunity. It should maximise efforts to end the military rule and provide a sustainable democratic alternative. They should not fritter away, undermine or sabotage the opportunity.
AZIZ NAREJO
Taxas, USA
I AM trying to locate an old friend of mine who left Bangladesh for Pakistan some time in 1971. Below I am giving details about her so that anyone who knows her, or if she herself sees this letter, can contact me at my email address life@arife.net.
The person that I am trying to trace studied at St Scholastica School in Chittagong. In 1971 she was about 17 years old and her name was Farhana Rashid Kaif. Her family was in the timber business and they owned a sawmill in Chittagong. Her father died of cancer in the 1970s. She was by religion a Shia Muslim. She used to live on Maulana Mohammad Ali Road in Chittagong on the ground floor of a three-or four-storeyed building.
I shall remain forever indebted to anyone who is able to help me locate her.
KAIF A. ISLAM
Bangladesh
ACCORDING to a report published in your newspaper, the people of Lahore created about 25 per cent less waste this month than last month. This, no doubt, is a sign of positive change in their attitude towards the sewerage system. A public awareness drive initiated by Wasa’s project management unit has also contributed to this change.
The smooth working of sewerage system is indeed in our own benefit as such system does not cause inundation of roads and streets, particularly during the rainy season, and protects environmental conditions. The government, no doubt, uses its resources for the provision of civic amenities but what is needed is the public awareness which ensures the optimal utility of such facilities.
MANEEZA KHAN
Lahore
A LEADING cellular company is constructing a communication tower in a densely-populated locality of Bahawalpur called Shahdra.
This is happening at a time when the hazards of such constructions for human health are now an open secret and the Pakistan Telecommunications Authority is urging the cellular companies to move their towers outside the residential areas.
The authorities are requested to behave responsibly and stop this construction.
SHABBIR HUSSAIN
Bahawalpur
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