Camp David outcome
THE outcome of the talks between Presidents Pervez Musharraf and George W. Bush at Camp David on Tuesday has been positive. Pakistan has reasons to feel satisfied on two counts: President Bush’s announcement that he would work with Congress for a five-year, three billion dollar economic and military package for Pakistan; and the reiteration of the resolve by both sides to work for broadening and deepening the existing ties. Specifically, President Bush said friendship between the two countries was “vital for security and stability in South Asia” and that the two countries were working to meet “common challenges” posed by terrorism. Here, he specially referred to Pakistan’s role in dismantling the Al Qaeda networks and arresting a large number of terrorists. President Musharraf, on his part, said they had agreed that bilateral ties should be made “more broad-based and multifaceted” and placed on “a long-term and predictable basis.”
The three billion dollar package is intended to advance what Mr Bush called Pakistan’s “security and economic” interests. This is in addition to the one billion dollar loan which the US has already written off. The sale of F-16s has been refused and to that extent, some sections in Pakistan might feel disappointed. However, half of the three billion dollar package is reserved for military sales. This should help Pakistan purchase essential military items in view of the imbalance with India in conventional arms. As a follow-up to the Camp David talks, the two countries on Wednesday signed two agreements: one, on trade and investment and the other on science and technology. The second provides for American financial and technical assistance in setting up high-grade science and engineering centres. Taken together, the economic part of the aid package should help Pakistan at a time when it is under a debt of $35 billion and the economy is not yet out of the woods.
On the key issue of Indo-Pakistan relations, there has been nothing more than an assurance from the US that it will remain engaged with South Asia. All that President Bush said was that he hoped Pakistan and India would continue to work to ease tension and resolve all issues, including Kashmir. Beyond that, there was no indication that Washington would pressure India to end its human rights violations in the occupied territory and work specifically for a solution that would be acceptable to the people of Kashmir. In fact, there was implied criticism of Pakistan when President Bush referred to the need for checking “extremism and cross-border infiltration.”
The US has no doubt helped Pakistan economically in the wake of Islamabad’s decision to throw in its lot with America in the latter’s war on terror. But this has by no means made America change the broad contours of its South Asia policy. It continues to attach priority to its relations with India, and while Washington did play a key role in averting a war last summer, it has made Islamabad realize that there were limits beyond which America could not go to help Pakistan in its disputes with India. These harsh realities should make the government and the opposition realize the need for a domestic rapprochement and for making the country politically stable and economically strong by focusing on internal stability and progress instead of keeping the country troubled through politics of confrontation.
Punjab industrial policy
THE industrial policy unveiled by the Punjab chief minister on Tuesday seeks to facilitate private enterprise by removing procedural hurdles in the way of new units. Under the policy, inspections by the labour department and undue interference by government agencies have been done away with. These had created an environment of harassment for the intending investor, besides resulting in much waste of time for industrial establishments. A simple self-declaration system has been introduced to cut red tape. Although some steps have been taken for the protection of workers’ rights, a key provision relates to the creation of the Punjab Industrial Estate Management Company (PIEDMC). It envisages the setting up of industrial estates on the pattern of those in the Far East with an initial government loan of one billion rupees. The company’s board of directors, who will mainly comprise of private sector representatives, will also have government nominees on it. The government would provide financial support to the company and, if required, also acquire land for a new industrial estate. The PIEDMC would also be given loans to establish industrial estates which it would repay after selling fully developed plots to intending industrialists.
Since lack of infrastructure has been a major obstacle to industrial development, the PIEDMC will provide power, gas and telephone facilities to all the plots. These facilities will be in the nature of a one-window operation to spare the entrepreneurs the hassle of running from place to place in search of essential facilities and services. It is necessary to facilitate the businessman’s role at the operational level to promote economic growth and expansion and meet the employment requirements of the people. Currently, these are available at a high cost and with difficulty. Besides, there is inadequate access to physical infrastructure and lack of professional and technical manpower and expertise. The transport system is poor and distributing channels and linkages to industry are weak or non-existent.
Electricity, roads, credit institutions as well centres for research and education for producing skilled manpower are thus absolutely vital. Without a well-designed programme, no significant increase in economic growth can be made. Particularly with a number of countries, including India, opening up for foreign investment, the competition would be keener among them as possible locations for industrial ventures. The PIEDMC can assist in the identification of new projects, especially for the export market, and effect firm supervision of industrial estates to facilitate their task. Existing estates in Punjab can also be upgraded to attract investment.
Ravi bridge closure
THE month-long closure of the new Ravi bridge has worsened the problems of an estimated two million commuters who travel in and out of Lahore using this bridge on a daily basis. The only other usable bridge is the newer but narrower Saggian bridge, which is now catering to some 25,000 additional vehicles every day. This is creating huge traffic jams and bottlenecks on both sides of the river. A third usable bridge over the Ravi is on the motorway and because of its long distance from the city it cannot become an alternative crossing point. The National Highway Authority and the Motorway Police, which are jointly responsible for managing the bridge, should have known better. Perhaps the old Ravi bridge, which only caters for non-motorized vehicles, should have been repaired and made usable for light motor vehicles before the new bridge was closed down for repair.
It is incomprehensible as to why the new Ravi bridge, which generates millions of rupees in toll tax, was left in such a bad state in the first place. The bridge in question is only some 30 years old and if timely repair and routine maintenance had been carried out, there might never have been the need to close it to traffic for such a long time. Given the severe hardship the closure is causing to commuters, the NHA and the Motorway Police would do well to expedite the repair work so that the bridge can be opened for traffic as soon as possible. A month-long closure is simply not justified.