Cotton: killing the goose
IN the Economic and Business Review, (Oct 15), Dr Zafar Altaf has put together a fascinating cloak-and-dagger story involving scheming textile robber barons, inefficient policy makers and the TCP which is in the pocket of the “mighty industrialists”, who are all set to ruin the cotton growers “with the absolute and unquestionable (sic) support of urban newspapers.”
Incidentally, the charge of a collusive press is rebutted by the extensive coverage to farmers and none to the “miller’s view” in this very issue of the Review.
To place the issue in some kind of perspective, let us look at some irrefutable facts.
Fact 1: The cotton market has crashed internationally. Current prices are the lowest in 15 years.
Fact 2: Yarn prices are in a downward spiral. The same yarn which was selling at $500 per bale of 400 lb. a year ago and was fetching $420 six months ago sells at $315 today.
Fact 3: We are not the only producers of cotton yarns / fabrics in the world. If Pakistani mills purchase cotton above the market rates, competition from India, Indonesia, Bangladesh, etc, will knock them out of market.
Fact 4: The TCP will make staggering losses if it buys cotton at Rs 1,855 per maund when the export parity (established by the TCP’s recent auction) is Rs1,550 per maund. Who will bear this loss? None other than the hapless tax payer.
The bitter truth is that a free export import-regime for cotton was enforced on the demand of the farmers to ensure them prices for their cotton on a par with world prices. When world prices were high, millers paid Rs 3,000 plus. Last year, the prices were leveraged up to Rs 2,700 per maund and both millers and ginners took a beating.
This years, world prices, falling demands, impending recession and the world security situation are all dictating lower prices both for the grower and the miller / manufacturer. How can the grower and the miller / manufacturer. How can the grower now cry ‘foul’? He, like everybody else in this equation, has to take the highs with the lows.
The footnote tell us that Dr Zafar Altaf has served no less than three times as federal secretary, agriculture. It is simplistic for someone with that kind of experience to state that “farmers are being made to suffer due to (the) Afghan crisis”. Perhaps Dr Zafar Altaf’s assessment of the ability of the Islamabad bureaucracy is not so far off the mark.
The textile industry is competing in a competitive marketplace where the prices of all inputs are dictated by market forces. The industry is paying a higher input price for everything including cotton, power, bank interest, etc. Cotton accounts for 70 per cent of the input cost. If the industry is made to pay price higher than its competitors, we will be eliminated from the market. While that will be a personal disaster for the owners, it will also be a calamity for the country considering that textiles account for nearly 60 per cent of our export earnings. Having killed the goose, we could then dream at leisure about its golden eggs.
SHERYAR,
Lahore.
ICI shares
THE multi-national company, ICI, has been restructured by separating its PTA business and vesting it in a new company called Pakistan PTA Company. The shareholders of the old ICI Pakistan Ltd. will be given for 1,000 shares of the old ICI, 110 new ICI shares and 300 PTA shares.
The new ICI and PTA shares are quoted on the Karachi Stock Exchange at Rs33.75 and 4.30 respectively. The old ICI share before it was de-listed was being quoted at around Rs9. A shareholder who had 1.000 old ICI share now finds that the market value of his shares has decreased from about Rs9,000 to Rs5,000, a reduction of over 44 per cent. However, the capital loss for small shareholders is likely to be much large because at present the shares of multi-national companies like ICI are traded in lots of 500 and multiple thereof and, therefore, such shareholders will find their new shareholding significantly un-marketable at the quoted prices.
The management of ICI has recommended their ‘scheme’ to its shareholders and justified it by claiming that this restructuring would allow them to pay dividends earlier than they could have done otherwise. The market, however, does not appear to be impressed by the ‘scheme’. I am forced to conclude that the management and their auditors have by commission or omission got their sums horribly wrong for the minority shareholders by their ‘scheme’. For the shareholders their can be little or no comfort in the promise that they will get dividends earlier sometime in the future when, at present, they are faced with such a massive capital loss due to the ‘scheme’.
Sadly, the stock exchange whose job is to protect the rights and interests of the small shareholders, appear to also have failed in their duty to the ICI shareholders, either because of incompetence or apathy.
The shareholders of ICI in the last 3 to 4 years have already suffered a reduction in the market value of their shares from about Rs90 per share to Rs9 per share (i.e. a reduction of 900 per cent).
If the ‘scheme’ is now implemented and nothing can be done to change its negative impact on the market value of the exchanged shares then I would request the ICI Management to at least change the rules for the marketability of new ICI shares and Pak PTA shares so that small lots and fractions can be traded at the quoted prices.
S. ANWAR HASNAIN,
Karachi
Terror no answer to oppression
WHEN participating in dialogue it is important for one to remember firstly the point of discussion, and secondly the importance of articulation and rational argument. Many of the Pakistani voices against the US retaliation in Afghanistan have illustrated a fundamental flaw in our political consciousness, when participating in a debate with our Western counterparts. This is the expression of misplaced frustration and anger against US policies, which culminates in support for people like Osama bin Laden and his agents.
An astounding poll, quoted on BBC’s Panorama, aired on Oct 22, suggested that 86% of Pakistanis support Osama bin Laden. Many Pakistanis express a ‘soft spot’ for Osama bin Laden, ‘a hardliner who stands against the oppression of Muslims’. To see even the exposed and educated minds of Pakistan, so misled, is a disturbing prospect.
Constructive criticism of US policies is one thing - but to be catapulted from that criticism to outright support for Osama is quite another. The irrationality is tremendous; people even small children, sporting Osama T-shirts and caps, burning Western effigies, and being generally destructive, are a yardstick of the limited political consciousness that Pakistan is beginning to display to the rest of the world. And if there is a so-called silent majority propagating non-violence and peace - it must stand up and be counted - it must be heard.
The Pakistani political consciousness needs to be more circumspect and introspective to be taken seriously. An intelligent analysis of the situation depicts a very dangerous rhetoric and ideology that has not only instigated acts of destruction and murder the world over, but has mutilated the very social fabric of Pakistan. The ultimate aim of hardliners like Osama, Al-Qaeda, its agents and associates, is to overrun the prevailing order in Pakistan and other Muslim countries, absorb their resources and force them into the Stone Age.
The very freedoms and liberties of our own men, women and children would be under threat. The brutality of sectarian killings is evidence of this very same ugly rhetoric; an extremist opinion which works itself up into violence must be stopped in its tracks.
It is essential for our public to develop an element of critical analysis in their thinking. Our opinion is often ambiguous and ill-defined. We cannot equate ‘protest against oppression’ with ‘terrorist acts of war’ that propagate murder and violence.
There is absolutely no connection between the two that any rational argument could construct.
It is time for our Pakistani consciousness to define an Islamic identity for itself that is rational, separate and in opposition to the strain of violence and terror that has permeated the dialogue of Islam, if indeed we believe as we profess, that Islam is a peaceful, all encompassing faith.
We are all horrified by the frustration, anger and hate that killed innocent US civilians and tremendously saddened by the subsequent spillover of American anger onto innocent Afghan civilians. But terrorism is not where our sympathies must lie.
ZAINAB DOSSA
Karachi
Adjustment of petrol prices
A FORTNIGHTLY review of the oil prices by the OMCs shows that there is no respect for consumers’ rights.
After Sept 11, oil prices in the international markets went down by about 25 per cent. But when the OMCs reviewed the prices on Oct 1, no relief was given to the consumers on the pretext that the buying deals took place before September 11, when the prices of petroleum in the international markets were higher.
It was a strange argument when we see it in the context that the OMCs increase the prices with immediate effect when the price moves up, in the international market irrespective of the time when the oil was purchased.
The downward revision of the oil prices on Oct 15 was just a mockery. The reduction in prices of the petroleum products ranged from 3 per cent to 11 per cent at a time when the price of oil crashed in the international market from $ 29 per barrel to $ 21 per barrel, that is, a fall of more than 25 per cent. At the same time another factor affecting the domestic price, the value of rupee against dollar, also went in favour of a further reduction in the local prices as the rupee had appreciated with respect to dollar by 3 to 4 per cent.
The relief provided to the consumer on this occasion is just an attempt to befool the consumers and the OMCs know it fully well.
KHALID MAHMOOD KHARAL
Sargodha
Anti-money laundering laws
THIS refers to Sultan Ahmed’s article “Anti-money laundering laws to help Pakistan” (Oct 22).
The enormous wealth accumulated abroad by Pakistanis is stated to be US $60-100 billion. Previously, Pakistan had been requesting several states to unravel the accounts of such Pakistani citizens in their countries. But such requests went down the drain. Some of these accounts may have links with the financing of terrorist activities in different parts of the world. As reported, most of the illegal funds deposited in the various tax-havens have now landed in the UAE.
It is learnt that the UAE government is contemplating tracking down suspicious accounts which may be connected with terrorist activities. The UAE should promptly probe into such accounts which are operational and abruptly shifting from one bank to another so as to obliterate all trails of transactions.
It is reported that the attorney-general of UAE has been armed with powers to call for details of such accounts from the financial institutions and also entertain private complaints. The attorney-general, being the prosecution authority, after seizure of account should however grant hearing to the account holder and if found that no cognizable offence has been committed, still pass on the information to Pakistan in normal course.
SAIFUDDIN E. CONTRACTOR
Karachi
Illegal construction
THIS is with reference to a news item in Dawn (Oct 16) regarding illegal construction of buildings in Karachi. It is sad and frustrating to note that officials of different departments have made millions of rupees by conniving with builders and converted the city into a jungle of concrete. It has been turned into a city with illegal buildings without open spaces and parks.
The recommendation of the committee to regularize these buildings to generate some income for the Sindh government is absurd because the main beneficiary of this regularization will only be the builders who have little respect for the environment.
It is time the government should take strict action against these unlawful constructions and introduce some ordinance by which the citizens should get their money back from the builders.
The cantonment board and other agencies which are regularizing the illegal buildings should not continue this practice and corrupt officers of these agencies should be made accountable.
We must not forget about the Ahmedabad disaster and must not allow the builders to play with the lives of citizens of Karachi. Such decisions which have impact on the life of citizens should not be taken lightly.
DR SHERSHAH SYED
Karachi
‘Insecurity’ of big states
I read Javed Jabbar’s article “The price of insecurity of big states.” (Oct 22) with great interest. It was very thought-provoking and well-written.
We Americans would also like to move to “balancing moderation of multi-polarity for stable coexistence.” But, at the moment, someone is trying to kill us. Osama bin Laden has not asked us to repeal the Monroe Doctrine, pay reparations to the Red Indians, pay our UN dues, set Noriega free, etc.
In his fatwa, and in his actions, he simply gives orders “to kill Americans and Jews”. If and when he gets nuclear weapons, he will use them against us.
He killed 5,000 last month, and he will kill 5 million next month, if he can. Will this attitude be termed insecurity?
In all humility, I think that our actions in the world, while imperfect, have not merited our destruction. Which country has behaved perfectly in world affairs?
From the cramped perspective permitted by our “insularity” and “ignorance”, I would place America’s record in world affairs (from a perspective of morality) against any great power in history.
But our destruction is Bin Laden’s stated goal; he has taken actions toward that goal. We choose to defend ourselves, our lives, and our families - by destroying the terrorists who seek to kill us.
Unfortunately, the terrorists have chosen a course of action which does not conform to the laudable goal of “balancing moderation of multi-polarity for stable coexistence.”
STEPHEN SHERMAN
New York, USA
The American view
THIS is with reference to Aaron Rudy’s letter entitled “US action: an American’s view” (Oct 24).
The fact is that an average American knows very little of the world outside the United States. Another truth is that the influence of the domestic media on the lives and minds of ordinary Americans is highly pervasive.
Their media tells them how to dress up, how to talk, how to walk, what to eat and what not to eat, so much so that it even tells them what to think. In this process, the media deprives them of their ability to distinguish between right from wrong.
The whole world condemned the September 11 attacks. But that does not in any way give the United States, or any other country for that matter, the right to kill more innocent people and to bring more misery to the world in the name of ‘fighting terrorism’.
MOHAMMAD WASEEM
Karachi
Karachi City Council
THIS refers to A.B.S. Jafri’s apprehension about the meeting of the City Council. With all due deference to the City Council and its Nazim and Naib Nazim, I would say please leave religion, morality and personal ethics out of the ‘Rules of Business’ of the Karachi City Council.
As Mr Jafri has requested: get on with the business of ‘administering’ the metropolis and try to make it once more a leading hub of economic activity and a ‘city of lights’.
MATEEN MAHMOOD
Karachi
Victim of smart bombs
I AM an Indian citizen and no admirer of the Taliban, Mulla Omar or Osama bin Laden and his Al Qaeda group. But where is the justice in killing Afghan civilians?
I was deeply moved by a photograph on the front page of “The Times of India” which showed a badly injured Afghan child who was a victim of one of America’s smart bombs. The child was not more than three years of age.
Were Pentagon’s spy satellites and space age computers under the impression that this child was a Taliban soldier?
Or, was this child an Al-Qaeda suicide bomber? Can the US tell this child’s parents, if they have already not been killed by bombs, to forget everything and that this was just collateral damage?
Kill Osama irrespective of his guilt. I am not asking for proof of his involvement in the WTC bombings.
But remember, human rights are not a privilege for the Americans alone. These are every person’s birthright.
God forbid, 25 years later, if this same child takes a plane and crashes it into the Empire State Building, what is America going to do?
Has the US government ever wondered why it is hated even by its friends?
GAURAV ARYA
Noida, India
Deep ingratitude
THIS is with reference to a letter from Miraj H. Siddiqui (Oct 16). I am sure that Mr Farook Abdullah and his son, Mr Omar Abdullah, would rather not be reminded by Mr Siddiqui’s letter, of the kindness of the late Pakistan Foreign Secretary Mr Agha Hilaly towards him and Sheikh Abdullah.
It may not be widely known in Pakistan that Mr Agha Hilaly and his equally well known brother Mr Agha Shahi were born in Bangalore, India and educated there at St Joseph’s High School prior to their departure to England for college, the ICS, and later Pakistan.
Their uncle, Sir Mirza Ismail, most ably ruled the then Kingdom of Mysore as the Dewan of the kingdom.
The late Mr Agha Hilaly and Mr Agha Shahi were remembered recently in that High School as two of its most distinguished alumni.
India lost quite a bit in losing the two distinguished administrator / diplomat brothers to Pakistan.
P. HARIMOHAN
New York US
Question for Qazi Sahib
QAZI Hussain Ahmad is asking everybody to boycott US products. His daughter, son-in-law and grandson are US citizens.
How about asking them to give up their US citizenship and come back to Pakistan?
KAMAL KHAN
Karachi
Hyde parks in Karachi
THE Sindh home department has agreed to a proposal submitted by the Karachi city government with regard to allowing the people to exercise their right to freedom of expression. For this purpose, the city government has earmarked 17 parks in Karachi for public gatherings where various political, social, cultural and religious organizations will be allowed to hold public meetings with full freedom of speech (Oct 20).
This is a positive step taken by the city government. A healthy society needs freedom of expression and a public debate on the problems and issues which need to be addressed.
Individuals and organizations who would like to avail themselves of the facilities of Hyde Parks in Karachi, should also create awareness among their workers and members that they should remain peaceful and maintain law and order.
Enough damage has been done in the past. Let it not be repeated in the future.
SYED A. MATEEN
Karachi
Peace with justice
THE post-September 11th world is deeply worrying. The disturbing aspect is not the bombs, terrorism or the loss of human life; mankind has seen a lot of this in the past and survived. The concern is that this sad event may be exploited to curtail human freedom.
I appeal to all the six billion co-humans of this planet to resist any attempt to curtail our freedom. Peace cannot be achieved by greater control.
Before mankind can win its war against terror, it will have to fight and win the battle against injustice. The six billion of us will have to realize that life, liberty and pursuit of happiness are indivisible concepts. As long as these concepts are not extended across the globe none of us is really safe in his home.
ASHIR AZEEM
Karachi
Law and order problem
THIS has reference to H. Maker’s letter, ‘Need for statesmanship’ (Oct 22) Mr. Maker has advised statesmanship to the Americans and their allies in handling the terrorists headed by Osama bin Laden in Afghanistan.
It would have been better for Mr Maker to advise the Chief Executive and his cabinet how to lasso the Bin Laden lovers headed by Qazi Hussain Ahmed and others. These local Taliban have made the life of ordinary citizens miserable, caring little for law and order.
K.A. WAHID BUTT
Lahore
Value of human lives
I would like to ask Mr Bush what the current exchange rate is for the value of human lives. Is one American life equal to 100 or 1000 Asian lives or is it 10,000?
SHIFA NAEEM
Karachi
Misuse of aid for environment
REFERENCE Dawn’s editorial “Aid for environment” (Oct 7). I agree with the apprehensions expressed therein.
The United Nations Development Programme (UNDP) has recently pledged funding up to US $42 million to the Ministry of Environment for carrying out environmental projects in various areas. Millions of dollars were provided by various international donor agencies pursuant to the Earth Summit of 1992 at Rio de Janeiro.
A number of projects were carried out with the assistance of these funds. However, no impact of these projects is visible in Pakistan. In fact, all kinds of pollution have been increasing day by day. Some information collected from various private organizations has made some mind boggling disclosures. I would request the minister for environment to confirm the following facts and give his point of view:
(i) that millions of dollars were granted to several agencies including some renowned non-governmental organizations for various projects on the recommendation of ministries of environment and economic affairs;
(ii) that these projects did not contain any substance and only produced a few coloured posters;
(iii) that most of the funds were spent on buying expensive vehicles;
(iv) that business of some so-called ‘non-commercial’ NGOs has been flourishing in Pakistan only due to misuse of the said funds procured by them in connivance with some bureaucrats and a few officials of UNDP office at Islamabad;
(v) that contracts for projects were awarded to these organisations purely on the basis of ‘favouritism’, and bids were never invited through the press;
(vi) that the NGOs have planted their own officials in the environment ministry to safeguard their interests;
(vi) that a project of ‘fuel efficiency in road transport’ has yielded nothing except some limousines after spending more than a million dollars;
(viii) that several similar ‘hoax’ projects relating to Chilghoza forests, juniper forests, rehabilitation of degraded highland areas, bio-diversity conservation and conservation of habitats came to light but cases of corruption and malpractices against several bureaucrats, in award of projects have been ‘dumped’ on the instructions of the environment ministry.
I hope the minister for environment would not only look into the matter but also remove the concern of environmentalists in this area.
RIZWAN KHAN
Peshawar