| February 07, 2009 | Saturday | Safar 11, 1430 |
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Bridging the rich-poor gap
Circular debt crisis
Nightmare in paradise
Wasteful spending
Wrong approach to Swat issue
GRE requirement for higher education
An ill-planned move
Death of music
Blowing up schools
Generic medicine policy
Road expansion
Not our problem?
Criticising the wardens
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
IN a latest blow to the global banking sector, the international rating agency Moody’s has cut its long-term ratings of Barclays Bank, anticipating further losses due to credit-related defaults. Barclays’ Bank Financial Strength Rating has been lowered to C from B, with a negative outlook.
The downgrading comes after the Barclays claimed it could absorb a 2008 write-off of GBP 8 billion without seeking capital from private investors or the government.
Barclays also maintained its forecast of 2008 profit before tax of GBP 5.3 billion, even after the expected writedowns.
The deteriorating economic outlook and the volatility in earnings from Barclays capital after its acquisition of Lehman Brother’s American operations also negatively impacted on the rating outlook.
Barclays had claimed its core tier 1 ratio to be 6.5 per cent, while in reality its tier 1 ratio was at around 9.5 per cent.
What would happen to Barclays Pakistan, which is already in its infancy in the country? The big question is, is it time to move away from free market economy, i.e. nationalisation?
Finance Adviser Tarin is a career banker and is working day in and day out to save the banking sector.
The new measure of the SBP to allow banks to increase their profits artificially through the guideline on forced sale value (FSV) pushed the prices of banking scrips upwards but in essence it was an artificial movement.
Financial think tanks should adopt proactive approach and concentrate on improving the economic outlook rather than merely taking artificial actions. Every day starts with a new story on the problems in the financial sector, someone somewhere has to think about the economy as a whole and not just one sector.
The government can take the Musharraf administration’s agriculture/ poultry policy ahead by facilitating farmers/ agriculturists.
The government can instruct banks to pump in money into these sectors by relaxing their credit rating mechanism. Influx of money in this sector would help push Pakistan in attaining its position in the global agro-industry.
A couple of private sector companies are already facilitating agribusiness with the help of World Bank loans.
Such facility by the banking sector would surely rotate the economic cycle in a positive manner, resulting in generation of jobs in rural areas as well as in urban areas.
Mr Tarin, think like a finance adviser who rotates economic wheel and not as finance adviser who waits for the outcome of economic wheel.
FAHAD ZAFAR
Lahore
OUR society is widely economically divided and the line of demarcation is very much discernible.
On the one side we see specious bungalows, luxury apartments and big cars and on the other side people are in great trouble to put food on their table.
This division has separated us and now we have become indifferent and selfish people, not knowing the problems and worries of our fellow beings.
This division is tearing our society apart and is causing irrecoverable damage.
The gap is worrisomely widening and we have to bridge this gap in order to avert rather ticklish situation in the shape of disintegrated society.
This can be done by improving the economy of the country as economical condition affects all aspects of our life. To bridge the gap between the poor and the rich, here are some suggestions.
The government should generously extend a helping hand to the poor segment of society, which it mostly does not do.
Direct cash schemes are good, but they are not fully satisfactory as they are too few and provide easy money rather than providing long-lasting skills. Easy money does not last long while skills do.
The government should impart skills to the poor to uplift their socio-economic condition. Although these schemes are a source of aspiration, they should not be taken as the ultimate way of raising the living standard of the poor people.
To impart the skills to the poor, the government should establish standard educational institutions in all parts of the country, particularly in rural areas where most poor live and standard of education there is low.
Vocational institutions should also be established to enhance the skills of people. The corporate sector is receiving a great help from the banking sector.
Fine. But the grim reality is that the manufacturing sector is consistently being ignored with which many poor are associated.
Negligence of this sector is having an adverse effect on the economic and social condition of our country as the poor are becoming poorer and consequently are moving to social crimes, self-destruction and frustration.
So the government should urge the public-private banks to assist the manufacturing sector. As stated above, the majority of the poor lives in rural areas where their main occupation is agriculture.
The poor are small and medium-sized farmers who need soft loans for their cultivation. At present when they are denied soft loans, they go to informal loan givers.
The informal loan interest is too high and in the long run ruin the economy of the loanees. Countrywide poverty is the result of this system.
The government should also take some remedial steps in this connection to trickle down prosperity to the downtrodden segment of society, thus bridging the gap between the rich and the poor.
SAAD KHOSA
Lahore
THIS is apropos of the letter by Adnan Rizwi (Feb 5). One of the major reasons for the present circular debt crisis (and the one experienced in 1997) is the mismatch between prices paid to producers of gas, and the customer tariff at which gas is supplied by utilities.
While the former get automatic price increases because of agreed linkages to the border price of fuel oil in the fixation of well-head prices, such increases are not passed on to customers, or if they are, only a fraction is passed on, and that too after considerable delays.
The remaining liability to gas producers has to be borne by the government in the form of a subsidy provided indiscriminately for all customers.
While there are various political considerations for postponing price increases for customers or not passing them on in full and in time, one avenue that can be explored within such constraints is a review of the policy of linking well-head prices of gas with the border price of fuel oil.
While this may be a necessary incentive for attracting foreign investment for energy exploration, there is no such compulsion in the fixation of well-head prices for Pakistani exploration and production companies with majority government shareholdings such as OGDC and PPL which should instead be compensated through complete tax write-offs of exploration expenditure, in the year in which they are incurred.
This will shield both customers and the government from speculative increases in international energy prices such as those witnessed less than three to six months ago.
ASAD SIDDIQI
Lahore
THIS has reference to Irfan Husain’s column ‘Nightmare in paradise’ (Jan 31) on the situation in Swat.
Zubeida Mustafa had also highlighted the plight of the people of Swat, especially the attacks on girl schools by the militants.
Both pointed out the difference between our poor response to the killings at home and to the sentiment we usually express on any attack on Muslims elsewhere in the world, in Gaza recently.
While a good number of reasons can be cited on this score, it goes without saying that our press has much to answer for in this respect.
The press in Pakistan remained fully embroiled in the internecine party politics that followed the death of our Quaid and later that of Liaquat Ali Khan.
Running with the hare and hunting with the hound, it could not keep itself above personalities and vested interests,
A little after they welcomed the Martial Law of Ayub Khan and was never shy to lend open support to his regime until sure of his exit.
It played a great part in support of the PNA movement and was instrumental in sending ZAB to the gallows.
However, its reactionary role touched all-time high during Ziaist military regime with the infiltration in its rank and file of elements from radical religious parties closely associated with his regime.
Its impact continues to this day. The militancy in Fata and Swat which has taken a great toll of life and property is being so lightly treated by the press to help religious and conservative parties make a capital out f it.
Our TV screens continue flashing long marches and protests of all sorts hundred times a day but seldom display the damage and destruction being done by the militants in Swat.
AHMED RAZI SIDDIQUI
Karachi
THE news that the NWFP governor has recently imported a helicopter for Rs500 million while the federal government has decided to buy five more at a cost of Rs5,300 million, out of which two will be earmarked especially for VVIPs, is shocking.
Spending billions of rupees on the purchase of helicopters will only hurt the interest of the people. The government should reconsider the decision to buy five helicopters, and re-direct the taxpayer’s money towards more productive projects such as education and health.
S. SHAHNAWAZ SHAH
Canada
(II)
THERE was a report in the media (Jan 30) that millions of rupees are being spent on purchase of helicopters for VIP duty by the NWFP government. The federal government has also ordered a few which the report says hah been ordered by the previous government.
On the other hand, another news report in this pasper says: ‘Japan pledges $4.7m for polio eradication’. One wonders how we can spend millions of dollars on purchase of helicopters when the country does not have even a meagre $4.7m for children’s welfare.
M. ALI JAWAID
Karachi
THE government’s stand on the Swat issue is wrong for a number of reasons. First, there is the issue of extreme laxity on the part of the government despite the huge loss of human life while carrying out military operations.
Even the most conservative estimates of civilian causalities from the once tourist hot spot speak of a humanitarian crisis.
Taliban and their sympathisers may be wrong but their beliefs and ideas do not make their lives any less valuable than any other Pakistani citizen.
The argument of the writ of the government is meaningless if the government is unwilling to secure its populace from American drone attacks.
Given the high number of causalities being reported, one wonders if the writ of the government is more sacred than human life, especially when political solutions to the problem in Swat have not been attempted.
Last of all, looking at the Swat issue in isolation from the larger geopolitical realities, the presence of western troops in Afghanistan would be ignoring the root cause of the problem.
Swat represents a stark reminder of what the war on terror has brought to Pakistan: destruction, economic misery, increasing civic military cleavage, and a self-exhaustive war which threatens the integrity of the state.
MOEZ MOBEEN
Islamabad
I HEAR that GRE requirement is being waived for higher studies in Pakistan. I consider this a step backward.
Through GRE, students get an idea of their knowledge. GRE is a training for what a student needs to know when seeking admission abroad.
Also, to hire teaching faculty at a university, applicants must be required to give one or two lectures.
Hiring at western universities is done by a search committee which consists of senior tenured faculty members and one external member from another department.
The chair of the committee and members review applicants and shortlist three or four. When candidates are called for interviews, they give one lecture on an assigned topic and another one of their choosing.
Every one in attendance is given a pro forma to provide written feedback and comments to the committee.
The applicant is then interviewed by individual faculty members, the head of the department, the secretary, the dean, the vice chancellor and the chancellor.
This is a perfectly democratic process and works well. I hope our universities follow similar methods in the future in hiring the faculty.
DR TAHIRA ARSHED
Karachi
THIS is apropos of the letter, ‘An ill-planned move’ (Feb 2). The creation of ‘Inland Revenue’ by the FBR violates the very essence of merit. The FPSC selects officers through a very transparent and merit-oriented process of CSS examinations.
The Customs and Excise Group (CEG) has always been higher in merit than the Income Tax Group (ITG). The handing over of Sales Tax ND Federal Excise to IT officials under Inland Revenue raises serious question marks as this is the usurpation of the rights of the Customs and Excise Group.
This amounts to the entry of ITG officials into the CEG through backdoor channels by ignoring merit and violating the rights of the latter, as well as the relevant laws and rules.
A number of officers of the Income Tax Group reappear in the CSS examinations every year to improve their occupational group and join the Customs and Excise Group.
Even many deputy commissioners of the ITG in grade 18 joined the CEG as grade 17 assistant collectors after reappearing in the CSS examinations and going through the requisite training requirements. In this respect if an Inland Revenue Service (IRS) has to be formed, it should only be done through creation of a new occupational group in future by the Establishment Division and induction of officers through the competitive examinations of the FPSC to uphold merit, fairness and transparency.
MUSTAFA GARDEZI
Islamabad
I WAS rather amused to read Zafar Rahmani’s letter (Feb 5) from Canada regarding Pakistani pop singers. While I couldn’t agree more that we are being ‘tortured by our fellow countrymen who claim they can sing’, I do wonder when Mr Rahmani last left Canada to visit Pakistan.
Had he been here anytime these last 20 years, or even more, but especially this last one year, he would have realised that to call for laws regarding music in a country that craves even a shred of law and order and the security of life itself is rather like wondering why people do not eat cake if they cannot afford bread.
If this country was able to boast of a single act of justice, or any kind of security, or vestige of sanity, I would gladly submit to being sung to death by any number of our pop singers as would care to shriek their music at me.
RABIA AHMED
Lahore
AS militants continue to blow schools in tribal areas, particularly Swat, the question that comes to mind is what is forcing them to do this?
In an earlier report of Dawn, (Jan 29, 2008) a report was published about this incident. The report mentioned that our Army had their camps near the school which was then blown up.
The militants seem to be blowing up schools because the Pakistan Army has allegedly built its camps there. I suggest the Army should find better places to make their camps rather than staying in schools.
JAWWAD QAMAR
Karachi
AN article in Economic and Business Review (Feb 2) mentions reasonable concerns about drug prices in Pakistan. It is evident that in developing countries a just and upright health system can only be acquired through ground-breaking measures. There are examples of countries such as Brazil which exercised cost containment strategies for the public health sector.
In 1999, Brazil instituted its generic medicine policy which instantly gripped the Brazilian pharmaceutical market. Promulgation of the legislation and sensitisation of the public by means of mass media coverage, as well as by active participation of the government, were underlying components of its success. Thus Brazilians purchase medicines at more affordable prices. In the context of rich cultural heritage, poverty and changing dynamics of politics, one can easily compare Brazil with Pakistan.
The generic medicine policy as a cost containment strategy is not new to the government of Pakistan. The ‘generic medicine act’ was enforced here during the fourth five-year plan.
A scheme of generic nomenclature was instituted to cut down the prices of medicines. This easy access and affordability endeavour on the part of the government was defeated intentionally by creating doubts regarding the quality and efficacy of generic drugs.
Now a tailor-made regulatory framework to galvanise the registration procedure for generics along with a minimal amount of registration fee could be a mere solution to the effective execution of a generic medicine policy.
SHAZIA JAMSHED
Malaysia
The road between Hyderabad and Mirpurkhas is of greater importance. There is a heavy rush of buses, trucks, etc, which results in many accidents.
The road leads to Mirpurkhas, Tando Jam, Tando Allahyar and other towns of Tharparkar district. The road needs to be changed into a dual carriageway. This would ease congestion, as well as reduce the number of accidents.
PROF. J N RAHI
Petaro
THIS is apropos of the news report: “The United Nations Office for the Coordination of Humanitarian Affairs has projected that the situation in Swat and the tribal areas would aggravate during the year, causing a fresh displacement of up to 625,000 people (Feb 1).”
We, the learned, rich, enlightened ‘Pakistanis’ don’t need to worry. Let’s keep quiet, enjoy life in our cosy rooms and keep the tradition of looking away, as has always been done in the past, e.g. the fall of Dhaka, Bugti’s murder, 1984 MRD movement, hanging of Bhutto, massacres in Karachi, etc.
QASIM USMANI
Karachi
THIS is apropos of a recent news item that criticised the performance of traffic wardens of Rawalpindi. The blame that they impose heavy fine on poor law violators and let influential violators off the hook has no truth.
Everyone of my colleagues tries his best to follow the law without any discrimination and in this task sometimes we have to pay a price when fining some one influential who misuses his contacts.
Traffic wardens are too willing to help people but they are handicapped by some of their own problems. The biggest of them is that there is no weekly. Performing eight hours’ duty in a standing position for seven days a week is beyond human endurance.
One off-day for every warden must be provisioned in a week. The weekly rest is being given in Rawalpindi but it is not given regularly.
In Murree, where freakish weather is enough to challenge the wardens, the weekly rest is also not given to wardens. The Murree wardens also need a hill allowance.
Moreover, when a warden falls ill and takes medical rest for more than 10 days, deductions are made from his salary for the days he remains absent from his duty. This is the time when he needs extra money but is made to lose instead.
Another problem a warden faces is lack of any transport facility provided by the department. He must manage it on his own. This situation results frequently in getting late for duty.
The quarters concerned should look into the above problems to make the police department further efficient.
NABEE ANWAR,
Traffic warden
Rawalpindi
(II)
APROPOS of a report about highhandedness of traffic wardens, I fully endorse it being a victim of their unreasonable attitude and demeanour recently.
My car was halted near Zebra crossing, awaiting change of traffic light, in the left lane which had no marking that it was for those turning left only. The slipway behind me was clear for any vehicle turning left.
The traffic warden insisted on booking me for halting in the wrong lane (according to him). He would not listen to reason that there was no marking for left turn, nor was traffic through left slipway blocked and that he should have some consideration for not unnecessarily creating inconvenience for a senior citizen who was not flouting any rule.
But all this was of no avail. To stop such incidents, lanes where restrictions apply should be properly marked and challan must state the offence committed with its location so that it can be duly investigated if wrongly done.
There is general impression that wardens behave so being pressed from top to collect fines for funding their budget and earning commission.
A VERY SENIOR CITIZEN
Lahore
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