The stock market bubble
NO amount of turmoil — the judicial crisis, terrorist threats, daily protests against government policies, street violence, the energy shortage — seems to dampen the spirits of the Karachi Stock Exchange and its major players. The market is booming like never before, with the KSE-100 index touching new all-time highs every few days. This steadfast bullish trend has little to do with the fundamentals of the economy, the state of the nation or the strength of listed companies. Clearly, the confidence of the market is not based on macroeconomic performance, which has been well below par in the last 11 months, or the security situation in a country ranked in a recent study as the seventh most dangerous in the world. Nor is its buoyancy linked to the profits announced or dividends paid out by any particular company. There is an element of the speculative in bourse activity across the world. However, it is only in a few emerging markets that decision-making, more often than not, tends to be completely divorced from ground realities. Pakistan’s is once such case where speculation not only rules the market, it appears to be its sole occupation.
Excess global liquidity is one of the reasons why Pakistani stocks are in such great demand these days. International investors with funds on their hands are looking to markets with high short-term yields and, possibly, lax regulation. It is alleged that when local brokers receive a large order from a foreign investor, they themselves start picking up leading scrips in bulk before catering to the international buyer. Other brokers join in by design, a bull run ensues and the market heats up even further when the foreign investment finally makes an entrance. As the market begins to peak, they sell. This form of insider trading brings massive windfalls to local brokers as well as the foreign investors they represent. Such organised buying and selling sprees, along with other methods of manipulation, occasionally send the market into a tailspin, leading to the sort of crash landings witnessed in March 2005 and April 2006. The causes of those crashes have never been fully explained, courtesy half-hearted probes and the mysterious disappearance of key data at crucial times. Little wonder then that allegations refuse to die down of a major cover-up by government officials working hand in glove with unscrupulous traders. Institutional buying by public-sector corporations is one way how the government checks downward trends — in the process, putting public funds at grave risk. Local brokers and their foreign clients continue to prosper come rain or shine. Those pushed to bankruptcy are the small and medium investors, as seen in March 2005 when some $13 billion was lost in market capitalisation.
The prime minister points with pride to this year’s record portfolio investment inflows and sees the performance of the equities market as an indicator of economic strength. This is a misleading representation. Stock trading is not a productive activity. Money is used to make more money, not produce goods or create jobs. Such capricious investment, also called hot money, can disappear with the push of a button and is not an accurate gauge of how the fundamentals are faring. The stock market bubble can explode at any moment, but that does not worry the big fish because they stand to profit even in the worst-case scenario.
How clean is potable water?
OVER the past few weeks, some regions in the country have been in the grip of a silent health emergency that has not received the attention it should have to save lives. In Sindh alone, 35,000 persons have reported to the OPDs of public hospitals with complaints of gastroenteritis/diarrhoea. Nearly 11,000 have had to be hospitalised while many have died on account of “gastro” diseases. The situation in Punjab is also alarming. There, too, scores of people had to be treated in the OPD for water-borne diseases. In Vehari’s Mailsi tehsil headquarters hospital alone 10 to 15 patients are admitted daily. Although no official data is available, media reports convey the impression that such ailments are on the rise, especially among children, thus enhancing the burden of health care on the state and private sector medical systems.
This is most disturbing because diarrhoeal diseases are easily preventable, and it does not require any medical expertise or expensive state of the art technology to check the spread of gastroenteritis. The fact is that contaminated water is the cause of these diseases, which have given Pakistan the dubious honour of being among the few countries with the highest infant and under-5 mortality rates in the world. Even countries with a per capita income lower than ours, such as Bangladesh and Nepal, have a more impressive record in preventing diarrhoeal diseases. A study conducted by the Pakistan Medical and Research Council in Vehari found sanitation and hygiene to be poor and potable water to be unavailable. The same can be said about even big cities like Karachi. It is shocking that the government has been concentrating on the treatment of diarrhoeal diseases — spending huge sums on ORH advertisements — rather than supplying clean water to all its citizens. The water available is so contaminated in places that even boiling doesn’t help. The civic agencies have apparently not been doing their job of managing an efficient purification process and a faultless distribution network. There is also the pollution factor — industries and other human activities often contaminate water systems — that the authorities are unable or unwilling to control.
Rowdy behaviour in NA
TELEVISION images of journalists chanting slogans in the National Assembly on Wednesday must have seemed rather disconcerting. They were initially protesting the amendments made to the Pemra act before things took a rather nasty turn. As we have always maintained — whether to lawyers or political activists — no one can deny anyone the right to protest provided it is done in a civilised and peaceful manner. That did not appear to be the case on Wednesday — even though it seemed clear that the journalists were provoked by non journalists in the press gallery, who, it is being alleged, were sent by the government to intimidate them into withdrawing their protests, and some used force. This behaviour is most unbecoming and goes against all norms of decency and dignity that one must observe in the National Assembly. Just as it is wrong for opposition members to rudely interrupt presidential speeches or for government and opposition members to stoop low during heated arguments, the unruly behaviour of those journalists — and the opposition members who joined them — was equally disturbing.
It is hoped that the Speaker of the House will take up the suggestion that a committee consisting of government and opposition members be formed to look into Wednesday’s incident and make recommendations. It is important to ascertain what really happened at the press gallery and who those men are who are being accused of provocation. Journalists have registered their protest and must now resume their duties of reporting the day’s events at the assembly. On its part the government can make sure that only accredited press people are allowed into the press gallery, but it cannot intimidate anyone into toeing any particular line. It must learn to respect a person’s right to freedom of expression.
Divine blessings for mankind
THE universe in all its glory is a creation of God Almighty, the same having been laid out paying due and careful heed to proportion and symmetry: “…everything with Him is in (due) proportion.” (13: 08); “And the earth We have spread out, and have placed therein firm mountains, and caused to grow therein all kinds of things in due proportion.” (15: 19); “And there is not a thing, but with Us are the stores thereof. And we send it not down except in a known measure.” (15: 21).
The Holy Quran, a book of Divine guidance, has enumerated the blessings and bounties forming an integral part of the universe which were later discovered by man and exploited by him to fulfil his needs and requirements: “Verily, We have created all things…” (54: 49); “And We have provided therein means of living, for you and for those whom you provide not [moving (living) creatures, cattle, beasts and other animals].” (15: 20).
The institution of khilafat, often addressed when discussing Islamic political setup, describes man as a vicegerent of God on earth. All sovereignty belongs to God Almighty and all powers vested in man on earth are a sacred trust for which he is accountable to both God as well as mankind: “And to Allah belongs the sovereignty of the heavens and the earth, and to Allah is the return (of all).” (24: 42). Taking the institution of khilafat in a broader context, it would not be inappropriate to state that all the natural elements on which we thrive are in the sole ownership of Allah and man is a trustee of the same; therefore he can utilise them but has no right to deprive others of their utility; “…seek, with that (wealth) which Allah has bestowed on you, the home of the Hereafter, and forget not your portion of lawful enjoyment in this world; and do good as Allah has been good to you, and seek not mischief in the land…Allah likes not the Mufsidun (those who commit great crimes and sins, oppressors, tyrants, mischief makers, corrupters).” (28: 77).
Man’s rights and duties as a vicegerent of God being manifold, can be broadly categorised as follows- (1) He has to discover the natural resources and elements which will prove beneficial to him; (2) He has to prevent excessive exploitation of these elements for fear of exhausting them. At the same time, he has to prevent them from being corrupted and/or polluted which would be tantamount to them becoming useless or even harmful not to say lethal; (3) He has to work towards preservation and development of these natural elements which would further increase their life as well as productivity.
The natural elements without which our existence would not have been possible are the following:-
Water:
“…We have made from water every living thing…” (21: 30); “And We send the winds fertilising (to fill heavily the clouds with water), then cause the water (rain) to descend from the sky, and we give it to you to drink, and it is not you who are the owners of its stores (i.e. to give water to whom you like or to withhold it from whom you like).” (15: 22). Every being has equal right to pure water and depriving even a small group from it amounts to robbing them of that which God has made available for all. Just as man is prohibited from withholding water from others, he is also forbidden from either polluting and/or wasting it.
The Holy Prophet once said: "Guard against the three practices which invite people's curses: evacuating one's bowels near water sources, by the roadside and in the shade". Further, according to various ahadith it is forbidden to waste water. The Holy Prophet once came upon a man who was wasting water while performing his ablutions. The Prophet (P.B.U.H) came and said, "What is this waste?" The man said, "Is there a waste in wazoo also, O Messenger of Allah?" The Prophet (P.B.U.H) said, "Yes, even if you were near a flowing river."
Air:
“…in the veering of winds and clouds which are held between the sky and the earth, are indeed signs for people of understanding.” (2: 164); “And it is He Who sends the winds as heralds of glad tidings…” (25: 48). All living things be they plants, animals or humans need to breathe fresh air which is a source of oxygen i.e. a vital element for respiration without which life would be no more.
Not only do cool winds bring relief in hot days, but these winds also fetch clouds of rain and cause fertilisation in plants by means of pollination; (See Quranic verses 7: 57; 15: 22). Just as pure air is vital for existence of life, breathing in air which has been polluted by harmful substances like industrial fumes can cause serious and life threatening illnesses so defeating its purpose which is to sustain life, not harm the same by toxic poisoning.
Soil:
“Who has made earth for you like a bed (spread out); and has opened roads (ways and paths) for you therein, and has sent down water (rain) from the sky. And we have brought forth with it various kinds of vegetation.” (20: 53); “And the earth He has put down…therein are fruits, date palms…and also corn…and sweet-scented plants.” (55: 10, 11, 12). The earth made fertile with water is indeed a blessing unparalleled wherefrom we derive our nourishment; “He placed therein (i.e. the earth) firm mountains from above it, and…measured therein its sustenance (for its dwellers)…” (41: 10); Not only does it provide food to all living creatures i.e. plants, animals and humans; it is in fact an integral part of our composition; “…He created you (Adam) from dust…” (30: 20).
Man has cultivated land since time immemorial and has so developed a vast network of agriculture and market enterprise. Being entitled to its useful enjoyment, he has been prohibited from utilising it in a manner which would have adverse effects on its fertility or cause it to become barren. Hazrat Ali, the fourth caliph, once told a man who had reclaimed abandoned land, “Partake of it gladly, so long as you are a benefactor, not a despoiler; a cultivator, not a destroyer”.
Plant and Animal Life:
“It is He Who sends down water (rain) from the sky, and with it We bring forth vegetation of all kinds…” (6: 99); “And We have provided therein means of living, for you and for those whom you provide not [moving (living) creatures, cattle, beasts and other animals].” (15: 20). Plants and animals form an integral part of life on earth. These are interdependent and depend on us just as we depend on both. Plants and animals provide us with food, medicines, clothing as well as beauty for the earth is adorned with the most magnificent of both. Plants are also a source of oxygen as they give out the same during transpiration.
Man is duty bound to look after all living things; “And We have sent you (O Muhammad) not but as a mercy for the Alamin (mankind, jinn and all that exists).” (21: 107). Clearing away large areas of forest for development, cutting down trees and hunting for sport is along with other actions disturbing the natural distribution of flora and fauna and has reached a point where many a species of animals have gone or are on the verge of going extinct. As mentioned above, all these natural elements have been created in the right proportion. Imbalance created by the activities of man on earth can and has in fact caused grievous damage to the same. For example, not only has excessive deforestation destroyed natural habitat, but increased industrial emissions of green house gases have brought forth the ever growing and no longer distant menace of global warming.
Islam has enumerated the need for man to act responsibly; he has not only to maintain the balance created by Allah Almighty, but has to make use of these natural amenities in such a manner that future generations can derive the same benefit as the present one; “…his effort in the land is…to destroy the crops and the cattle, and Allah likes not mischief.” (2: 205); “…eat and drink but waste not by extravagance…” (7: 31); “And do not do mischief on the earth, after it has been set in order…” (7: 56)
Battle at sea
SURVIVAL is not guaranteed for those species lucky enough to tug at human emotions – but it certainly makes a difference to their chances. Among the 33,000 wild animal and plant species covered by the Convention on International Trade in Endangered Species (Cites), only a few have campaigns dedicated to saving them, and fewer still are household names.
The wild bactrian camel (less than 1,000 left in China and Mongolia) lacks the affection bestowed on the giant panda (3,000 and rising). The same is true at sea, where this month's triennial Cites meeting will consider terrible threats to a whole host of maritime creatures, including sharks, sturgeon and sea cucumbers, but only one, the whale, has got a crusade and a conference all of its own. In Alaska last week, delegates of 71 countries gathered for the annual standoff between countries that want to resume (or at least bring into the open) commercial whaling and those that want to stop it. Britain, chief among the latter, has played an honourable role in blocking attempts, led by Japan, to overturn the 1982 moratorium.
This year Britain has signed up new members of the International Whaling Commission such as Cyprus and Croatia, trumping Japan's sole new entrant, landlocked Laos. That should be enough to reverse the pro-whaling camp's victory by one vote last year - and even that had only symbolic effect, since a 75 per cent majority would be required to allow commercial whaling to return. ––The Guardian, London