PAKISTAN EDITION OF THE ECONOMIC FREEDOM OF THE WORLD: 2004 ANNUAL REPORT
Alternate Solutions Institute, Lahore, in collaboration with Friedrich Naumann Foundation, Pakistan, is preparing/printing a Pakistan Edition of the Economic Freedom of the World 2004 Annual Report originally published by the Fraser Institute, Canada. This special edition expected to be available in February 2005 makes a strong case for economic freedom in Pakistan.
PAKISTAN ECONOMIC FREEDOM CONFERENCE APRIL 2005
Alternate Solutions Institute, Lahore, along with another economic advocacy and research organization, Centre for Business and Enterprise, is collaborating with Friedrich Naumann Foundation, Pakistan, in holding a two-day conference on Economic Freedom on April 13-14, 2005, in Islamabad. The conference will deliberate on the issues such as: role of the various stake holders in promoting economic freedom in Pakistan; defining the role of the state in a free market; how to support and promote a culture of entrepreneurship in Pakistan; challenges and pitfalls of trade liberalization and Pakistan’s response; and, opportunities and challenges of globalization, defining a long-term economic vision. For details, contact the Institute at: info at asinstitute.org
Never do anything against conscience even if the state demands it.
Albert Einstein (1879-1955)
============================================================================
CONTENTS:
0 Manners in a Civil Society
By Don Newman
0 The Politics of Pricing
By Rubina Jabbar
0 Rising Prices and Doubts
By Hans B. Bremer
0 Letters from the Press
============================================================================
MANNERS IN A CIVIL SOCIETY
By Don Newman
[Don Newman, senior policy analyst for the Grassroot Institute of Hawaii, USA, Hawaii's first and only free market public policy institute focused on individual freedom and liberty. This article first appeared in
< http://www.grassrootinstitute.org> January 26, 2005 and then in http://www.hawaiireporter.com January 29, 2005.]
There is an oft quoted paraphrase of a statement by Miss Manners that goes along the lines, "manners are the grease of civilization." The idea seems simple but is truly a profound one with deep implications. As members of a society, a civilization, we can go about crashing into one another with reckless abandon; or we can treat one another with courtesy and respect. One has to ask which is the better course. The answer is obvious.
In a machine, grease is used to lubricate parts that must mesh together, making them work more smoothly. This makes the machine operate more efficiently, increases its performance and, ultimately, endure for a longer time. This is a perfect analogy concerning the function of manners and civility facilitating the machinery of civilization.
It is also the true function of laws. To provide the framework by which we know how to deal civilly with one another. Within certain proscribed limits we are free to act, as along as we don't violate the rights of others. This safeguards the property rights of each individual which is the predicate upon which a civil society operates. Otherwise society is the mere coercive competition of the separate interests of individuals. That we all agree to adhere to certain rules is what makes culture and ultimately, the betterment and prosperity of its individuals, possible.
In the mission statement for the Grassroot Institute of Hawaii it says: "The individual and his or her search for meaning and happiness in a civil society is stressed." It is only in the context of a civil society, one that is greased by manners and agreed adherence to law, that such meaning and happiness can be found. As Lord Acton succinctly put it:
"Liberty is not a means to a higher political end. It is itself the highest political end. It is not for the sake of a good public administration that it is required, but for the security in the pursuit of the highest objects of civil society, and of private life."
For there to be liberty a society must also be civil. And civil in this context means, "adequate in courtesy and politeness," which is also one way to define "manners." They are all of a piece, one cannot have one without the others.
It is only within the context of a civil society where an individual is exercising his or her liberty that moral actions can take place. Coercion is not moral and a moral act cannot be coerced. Only an individual acting in liberty can freely chose to commit a moral act. This is why giving to charity to help the poor is a moral act but taxing the populace to provide welfare is not. They are fundamentally different acts.
This isn't just some lofty issue, it applies to the everyday mundane choices we all face countless times a day. To run the red light or not. To let the pedestrian cross in the crosswalk or dart through first in our car. To cut in line or not. To speed down the crowded school street or observe the speed limit. To sneak a piece of candy from the bulk bin at the store.
We normally don't think of these everyday choices as moral but they all are. We only come to grips with that fact when it goes awry and someone gets injured or killed. Then it comes home that a wrong has been committed but we usually only see this wrong in legal terms, not moral ones. This is a mistake.
It is this loss of seeing the moral side of these everyday issues that puts pressure on everyone to have such angst and contention over what are considered the "big" ones. Having felt the loss of everyday civility we seek to regain it by making big public stands on the major public issues. Sadly, if in daily life the small moral decisions we must all make are overlooked as being such, then the battle is already lost and it doesn't matter if you win the big ones.
Part of the problem is government usurping individual choice with mere legal definitions. Increasingly society has become a place where all behavior is legally defined and the wisdom of the choice is no longer left up to the individual. You will pay taxes to help the poor. You can only put in your body what the state says you can. If the state decides to pull your feeding tube then that is what shall be done.
In such a society the option, the possibility for making a moral choice is negated. The government decides for you. Why be civil when the government tells you what you can and cannot do? It all becomes a matter of what you can get away with. Thus liberty becomes doing whatever you want and not the freedom to do the proper thing, the courteous thing, the right thing, the moral thing.
This is where we find ourselves today in much of society. We have lost our civility. This is the degradation of "Rap" music or "Hip Hop" music videos. This is the football player mock mooning the stadium crowd. It is the activist destroying decades of research "saving" the animals or setting fire to a car lot full of SUVs. It is also the endless stream of emails advertising everything from bootleg prescription drugs to a tryst with your next door neighbor's wife.
Who would have thought that a loss of manners could mean so much? That the loss of manners leads to a loss of civility which leads to a loss of true liberty which leads to a loss of morality. Without the grease of manners a civil society cannot be maintained. Liberty can only exist when people are civil enough with one another that they extend the same courtesy of its existence to one another. This is the meaning of a "civil society." And for that, one must have manners. [With due permission from the author.]
THE POLITICS OF PRICING
By Rubina Jabbar
Oil pricing is one secret avenue of looting the innocent citizens of Pakistan
Heat energy is the mother source of economic activity in the world. About 60% of operational cost of any machinery is fuel, or heat burnt, and the rest 40% includes maintenance, repair and overhead charges. As such any increase in fuel (petrol, diesel and gas) prices has a direct bearing on the prices of everyday commodities, commuter fares and power generated with furnace oil.
All this adds to the burden of ordinary citizen in a country like Pakistan where many don't have access to gainful employment. "One percent rise in oil prices translate into five-fold, or 20% increase, in commodity prices," informs Jaffer Kaudia, chairman, Pakistan Kiryana Merchants Association (PKMA).
The cost of production of raw material goes up after electricity becomes costlier following the hike in fuel prices. Flour and edible oil, according to Kaudia, are the two basic commodities most affected by the rise in fuel prices. This breaks the back of a daily wage worker who is made to pay more for buying food for his family and for transport fare to go to his workplace.
Presently, the price of flour is Rs.18 per kg; cooking oil Rs.60 per kg; milk Rs.25 per litre and eggs Rs.50 per dozen. How could a poor man, who may hardly earn Rs.3,000 at the end of the month, can feed his family, pay utility bills and the rent of his house in such a small income, one wonders.
The prevalent situation of the common man, deficit in terms of his income and expenditure, leaves him with no options other than involvement in taking bribes if employed in any public or government sector, or indulge in nefarious activities such as corruption, theft, robbery, fraud, etc, which today is commonly seen in our society.
The growing trend of suicides is considered enough to awaken the sleeping persons in the power corridors. But, alas, none is moved. The people in the power corridors have always blamed their predecessors that they have looted away the exchequer of Pakistan and have contributed drastically to poverty elevation conditions, but they never state how they have done so.
Oil price is one secret avenue of looting the innocent citizens of Pakistan. It is learnt that until 31 December 2003 Pakistan was getting oil from Saudi Arabia on subsidiary or complimentary rates, which means at no price. But in 2003 and in the preceding years public had to purchase petrol, diesel and kerosene at exorbitant prices.
On 1 January 2004, our brotherly country Saudi Arabia changed its policy and, as per government circles, no subsidy is received by Pakistan. However, the government has never stated at what cost they were importing crude oil to the volume of 10m tonnes, what are the terms and conditions for the crude imported from Saudi Arabia or elsewhere.
The public does not know about these details. Neither does the public know at what rate the government had exported locally excavated crude. And if the government had sold this crude on lower prices, what is the reason.
Oil industry classifies 'crude' by the location of its origin, for instance, Brent or West Texas Intermediate (WTI). The other things include its weight or viscosity that determines whether it is "light", "intermediate" or "heavy". Likewise, the refineries have their own way of classifying crude, either "sweet", which means that it contains relatively little sulphur and other impurities that requires lesser refining, and has a better yield of expensive by-products. The other is "sour", which means that it contains more sulphur and other impurities that require heavier refining thereby increasing the cost of refining and lesser yield of expensive by-products.
The prices of crude, therefore, heavily depend on their classification, and the prices of Brent and WTI are higher than the other varieties. The Organisation of Petroleum Exporting Countries, known as Opec, collects price data on a "basket" of seven crude oils - Algerian Saharan Blend, Indonesian Minas, Nigerian Bonny Light, Saudi Arabian Arab Light, Dubai Fateh, Venezuelan Tia Juana Light and Mexican Isthmus (which is non-OPEC oil). The US WTI oil is a very light (low sulphur) crude, which is more expensive than the Opec basket due to its "sweet" classification.
The Algerian and Dubai's Fateh are considered also of high quality oil. As a matter of fact, approximately over 160 different internationally traded types of crude oil with different nomenclature, quality and market penetration are in use worldwide. It is interesting to note that prices of Brent or WTI oils are quoted on the Pakistani media in an attempt to convince innocent Pakistanis of an imminent price increase whereas in Pakistan none of the refinery is refining these high priced crudes.
"In practice our refineries do not use the premium-priced Brent or WTI. As such petroleum price increase of WTI or Brent oil is absolutely unjustified in our case," points out Sheikh Mohammad Iqbal, general secretary, Pakistan Merchant Navy Officers' Association (PMNOA).
Iqbal, who has served as chief engineer on several foreign flag vessels and tankers and has an experience of over 40 years as a professional technocrat of merchant marine, reveals that our refineries heavily depend on Arabian Light and Arabian Heavy imported, mainly from Saudi Arabia. Pakistan used to import around 10m tonnes crude oil and 18m tonnes lubricants and other oils each year, which is refined in local refineries. But presently this import bill is reduced by the cost of about 4m tonnes that is now excavated in Pakistan.
Pakistan Petroleum Information Service data on 'production activities' of oil exploring companies in Pakistan shows 23,457,845 barrels (64,268 barrels of oil per day), or 3.8m tonnes, oil production during the period from July 2002 to June 2003.
The crude imported in Pakistan is refined and made available to ordinary consumers in its various forms is to be calculated cost of crude; sea freight paid (which means C&F value); cost incurred on refining a unit of crude; and the break-up of commodities obtained from a unit weight of crude (one ton) such as petroleum, gas, aviation fuel, petrol, diesel, lubricants, other materials and other costs.
Experts suggest that all efforts to be made to ensure optimum quantities of other by-products of crude and extraction of petrol, diesel and kerosene may be kept high so that after intense calculation and use of technology these products, which mainly affect the life of the common man, may be held on a cheaper price including a minimum percentage of profit on these by-products be given to the supplying and controlling bodies.
In Pakistan, for the last few years, a growing number of vehicles and other machineries are converted to CNG gas that has sharply reduced the petrol and diesel consumption. The refineries are refining some 10m tonnes of crude as per practice and there is a greater yield of petrol, which is now not required for consumption in motor cars, vehicles and other machineries.
The storage tanks do not have enough space to store the produced petrol especially, and it is learnt that the process of refining has been reduced. This factor, Iqbal claims, can safely be utilised for exporting petrol and/or use of technology to obtain other products in greater proportions for cost-effectiveness. Additional storage facilities may also be considered for storage of excessive petrol and diesel obtained from the crude due to sharp dependence on CNG than taking other measures.
If at all the government is interested in alleviating the hardships being suffered by the Pakistanis, it is imperative to reduce prices of fuel instead of exorbitant continued rise. Petrol should be made available at Rs.11.50 to the public, which presently has been made to pay Rs.40 per litre.
This is a sure way of providing relief to the ordinary citizens. In case the government transfers the allocated budget for providing relief to the poor classes such amounts, Iqbal suggests, may be used to provide subsidy to fuel prices, especially on kerosene oil. [Courtesy The News]
RISING PRICES AND DOUBTS
By Hans B. Bremer
[The writer is a German journalist based in Islamabad.]
A week ago an item on the French news agency AFP told us that crude oil prices in Asian trade had fallen below the mark of 47 dollars a barrel. An analyst in Singapore was quoted as saying the market was still reacting to Iraq's elections that passed with no attacks on oil facilities. Furthermore, OPEC's decision to keep oil production steady was still pushing the market lower, as were forecasts of warmer temperatures in the United States. Being the innocent, non-business-minded person that I am, the news item should have made me expect this downward trend to be reflected at my local petrol pump.
No such luck. Because that same morning my newspaper told me that the price of petrol had been increased by Rs 2 to Rs 42.39 per litre. That's a rise of 4.95 per cent. And by adding eight paisas in petrol pump commission, we actually pay Rs 42.47 per litre at the moment. The Oil Companies Advisory Committee gave no reason for the price hike. Of course they didn't. Because they would have had to say something like, "World oil prices are falling, but we'll increase ours anyway."
Who is this OCAC, and who sits on it? Must be similar to the one that makes up the Oil and Gas Regulatory Authority. Two days after the OCAC coup, OGRA struck as well and increased the price of natural gas by 8.25 per cent. And that prompted CNG station owners to raise the price of this environment-friendly fuel by almost ten per cent.
To say that I'm angry about all this would be an understatement. Enough has been written over the past week about the snowball effect of these scandalous price increases. Private and public transport becomes more expensive, and all kinds of commodities that need to be transported from one place to another become more expensive as well. And we'll see what this upward spiral will do to the government's hopes of keeping the inflation rate for this financial year at seven per cent.
Whatever the government "gave" to the masses in the closing weeks of last year by keeping petroleum prices stable when they were increasing on world markets, I'm sure it will have recouped its losses by now or before very long. This paper's Sunday edition carried a useful article on the issue by Rubina Jabbar. Quoting one line of hers will do nicely to vent my anger: "Oil pricing is one secret avenue of looting the innocent citizens of Pakistan." So life for ordinary people, including the owners of 800 and 1,000 cc cars, is being made more difficult, while some of those along Islamabad's Constitution Avenue can look forward to their new and protected Mercedes S-class and Toyota Landcruisers, courtesy the Prime Minister's Office.
And all the while parliament is slumbering peacefully. The opposition in the Senate staged a token walkout over the increase in petroleum prices. Their new leader Mian Raza Rabbani deplored that the poor masses were further burdened by these developments. Well, well, that must have sent the treasury benches running for cover. And with that it was back to business as usual. With an opposition like this, no wonder the government feels it can get away with murder. Figuratively speaking, I hasten to add. What we should see but are not likely to see is for the opposition in the National Assembly to force a debate on the issue and put the government on the spot. [Courtesy The News]
Letters from the Press
BAD BEHAVIOUR
[Irfan Salam, Lahore]
We are all different in various ways because of our genetic makeup. As a nation, we have a very poor sense of how to behave. We should try to develop patient personalities. Whenever we are involved in a fight, both parties try to inflict maximum losses on the other side, but there are very few among us who try to avoid fighting and give up their own right for a peaceful solution. If we want to make Pakistan, and the world, a better place to live, we should behave more courteously towards others. Our behaviour should incorporate love, harmony and affection. Only than can we progress. [Daily Times]
THE GOVERNMENT'S NEGLECT OF ITS 'FIRST DUTY'
[Saeed Ullah Awan, Wah Cantt]
"You will no doubt agree with me that the first duty of a government is to maintain law an order," the Quaid-e-Azam told the first Constituent Assembly as its president.But - to say nothing of good governance, which is the prime duty of any government - the law has always been violated with impunity in Pakistan. Even this largest-ever government has failed to do its duty of combating crime and anti-social elements. Law and order should be the topmost priority of the government, not just for the people of the country, but also to invite foreign investment. As for the people, they are utterly fed up with hollow slogans and now want some tangible results on the government's pledges to restore law and order. [The News]
PLANT A TREE
[Hussain Siddiqui, Islamabad]
A law is being formulated by the government of Punjab binding everyone to plant trees in front of his/her house in all cities of the province.
Notwithstanding its practicability aspect, the irony is that a government, which has uprooted hundreds of thousands of trees in Lahore alone during last few years, proposes this enactment. [The News]
IMPROVING BILATERAL TRADE
[Editorial]
Pakistan and Sri Lanka's signing of a Free Trade Agreement (FTA) on Wednesday opened a new chapter of closer economic and trade relationship between the two countries. Described as historic, the agreement provides for removing tariffs on a fairly significant number of goods being traded between them. This is the first time that Pakistan has signed such an agreement with any country. Sri Lankan President Chandrika Kumaratunga's visit can thus be described as quite eventful. The two sides also agreed to hold a meeting of their joint economic forum in Colombo next April and Pakistan has proposed to hold a single country exhibition there to further boost the FTA process.
With another three agreements and two memoranda of understanding signed at the same time, social and cultural ties between the two countries will also be further strengthened, as will cooperation in the fields of education, agriculture and jewellery-making technology. Pakistan will provide $ 10 million export credit to Sri Lanka. With the two countries having opened up their markets, it is now for their private sectors to take full benefit of the newly opened trade opportunities.
Given the benefits of liberal trade at international, regional and bilateral levels, Pakistan could consider entering into similar agreements with other countries to further boost trade ties. The signing of FTA between Pakistan and Sri Lanka highlights the fact that freer trade at bilateral level will complement trade liberalisation at the regional and global levels. The free trade agreement should be quite important and helpful in further strengthening the existing cordial ties between the two countries.
ACCELERATING PRIVATISATION
[Editorial The News]
The Cabinet Committee on Privatisation (CCOP) approved the sale bid of majority shares of Karachi Electric Supply Corporation (KESC) on Monday. It was only last week that 73 percent shares of this power utility were sold to the highest bidder for Rs.20.24 billion. On this occasion, Prime Minister Shaukat Aziz noted that the corporation had been running into huge losses and the government had injected Rs.108 billion into it over the last three years. On the other hand, resources were also needed to upgrade the entire organisational infrastructure in order to meet the growing demand of electricity. The privatisation of this organisation is a step in the right direction.
The elimination of losses incurred by public sector enterprises, which continued to bleed the budget and limit the fiscal space, has quite often been described as one of the formidable challenges facing the government. This challenge is to be met through an accelerated privatisation programme. The money thus saved could be spent on social sectors and infrastructure development. Though privatisation was started a decade and a half ago during which a large number of public sector enterprises were privatised, the government was still left with big corporate entities. These organisations required considerable time and effort before they could be offered for privatisation and the delay in privatising them, especially those that have been causing losses, could only add to the government's financial burden.
In any case, the government has to ensure that it gets good price for the unit it offers for sale. It should also ensure that product prices are not increased to the disadvantage of the consumers. The people employed in the privatised units should also not be rendered jobless. It is encouraging that the new owners of KESC have assured the employees that they will be retained and encouraged to show better performance. The basic objective of privatisation is to encourage the private sector in making fresh investments and reduce the financial burden of the government caused by loss-making units. Hopefully, the privatised units will improve their operational efficiency, which should ensure creation of more jobs and better products and services for the consumer.
PRIVATIZATION OF KESC
[M. Shafique Ahmed, Karachi ]
The KESC sell-off is a bitter pill but the government had to swallow it in the public interest. Of late, the performance of the KESC had gone from bad to worse. The corporation was running at a loss. Thefts of electricity, inefficiency of the field staff and corruption were rampant. The new owners, it is hoped, will not lay off the junior staff for a year or so, during which the latter may improve their efficiency, punctuality and honesty to remain in their jobs.
Like KESC, the Karachi Water & Sewerage Board (KWSB) is always under fire from the public, whose complaints are not remedied for days and days. There is not only inefficiency, corruption and highhandedness in KWSB, as the reports appearing from time to time in local papers show, there is also mismanagement, because of which there is short water supply in some areas. Recovery of the water and sewerage tax is also poor, as the residents in highrise flats do not like to pay in the absence of water meters.
Let KWSB be another utility for the government to privatize. Likewise, the Karachi Circular Railways should also be given to some foreign investor for early revival and efficient running. Privatization in some cases is inevitable. It is can be a boon if it can produce the desired results. [Dawn]
OPPOSITION TO KESC PRIVATIZATION
[S. R. Khalid, Gujrat ]
With reference to the opposition's stance on privatization of the KESC that it would compromise the country's economic sovereignty, I would argue that its stance is baseless.
First, in the age of globalization all developed countries have compromised their economic sovereignty for the greater interest of their people and the economy itself. In the UK, I see a number of companies competing for electricity and gas supply services by reducing their prices and improving their services.
As far as fear of retrenchment of workers is concerned, I would argue as to why should the people of Karachi be held hostage to the benefit of a few corrupt employees of the KESC.
These employees have failed in their duty to provide the minimum standard of service sought from them and now they fear for their jobs. Had these employees performed to the satisfaction of the people, the people of Karachi would have been with them.
But I am sure the people are looking forward to the change. After all, they have nothing to lose. Increase in tariff was experienced even under the nationalized KESC, but without improvement of services.
The stance of Mr Raza Rabbani is just a political move to support the PPP trade union activists who must be on the payroll of the KESC but busied themselves with political issues rather than attending to their jobs. [Dawn]
PIA’S PERFORMANCE
[Shahzad, Sialkot]
The frequency in incidents and fight delays in PIA is beyond an acceptable limit. Mere claims of improvement or launching a media campaign to prove a turnaround is not enough. The airline is riddled with political appointments and mismanagement. Bad decisions coupled with indiscipline have made this airline unreliable. The staff at traffic counters is rude. As if this was not enough, we now have intoxicated pilots trying to fly planes and getting caught in the UK.
PIA needs to reform its management, enforce discipline and have transparency in all its dealings. It needs to regain the confidence of the travelling public. PIA should be privatised like the KESC. As long as it is a state-owned corporation, it will be monopolised by the likes of those who sit in its executive corridors today. [Daily Times]
FIXING PETROLEUM PRICES
[Mohammad Anwar Khan, Karachi]
It is heartening to learn that the Senate committee on petroleum and natural resources in now seized of the problem arising out of the existence of the Oil and Gas Regulatory Authority (Ogra) for fixing petroleum prices and the Oil Companies Advisory Committee (Ocac) for the same purpose.
The Oil Companies Advisory Committee fixes petroleum prices on a fortnightly basis. While it is the government's endeavour to deregulate the economy for achieving better results, the experience in this sector so far does not appear to bear this out.
It would indeed be difficult to achieve stability in our economic activities on the basis of fortnightly changes in the prices of petroleum products as this causes imbalance in the prices and budgets of not only our government but also all households.
The changes in petroleum prices have an impact on the overall economy of the country. We all believe in reducing government expenses but it is wrong in principle that jobs in Ogra are occupied by some individuals of the bureaucracy who have nothing to do with the fixation of prices.
This function is being performed by Ocac. In the process, the worst kind of dichotomy is taking place. The principle of empowering oil companies whose principals produce our market crude oil and their refined products is not justified as they have vested interests.
It is alleged, maybe wrongly, that oil companies and their dealers get to know in advance of increases in prices and get their storage tanks filled up in advance at old prices.
On an increase in prices, petroleum products are sold at new prices and extra earnings are then shared between the oil companies and dealers. Oil companies also have their own retail marketing outlets.
Considering all these factors, it is advisable that the responsibility for fixing the selling prices of petroleum products should be vested in Ogra. This organization should also be housed in some other ministry and not in the ministry of petroleum.
However, Ogra should have access to all the information needed by it. It is understood that the prices of crude and refined products ruling in the international market form the basis of fixing the selling prices.
This does not appear to be correct. It is felt that actual prices paid for imports during a given period should form the basis of such a mechanism. It is suggested that frequent changes, particularly the present practice of fixing prices on a fortnightly basis, should be done away with. In order to avoid hardship to the common man, the period of change should not be less than three to four months. [Dawn]
15 PERCENT RISE IN 6 WEEKS
[Hussain Siddiqui, Islamabad]
The prices of POL products have been raised once again, effective Feb. 2.
This is the third successive increase in six weeks. On Dec. 15 the prices increased by 7.5 percent on Jan. 1 by another 2.5 percent and the latest hike was about five percent, or a cumulative increase of 15 percent.
Strangely, this increase is taking at a time when oil prices are going down globally. On Jan. 28, oil prices dropped internationally by about two dollars. [The News]
PETROL PRICES
[R. R. ALVI, Lahore ]
"Petrol prices raised by Rs2.00 to Rs42.39" (Dawn, Feb 2). In the same issue of your daily on the business page there is a news item "Oil prices ease", according to which New York light crude oil main contract price dropped 35 cents and of London Brent North crude to 42 cents.
Quite a contrast. Our rulers in their zeal to win the favour of the World Bank and the IMF are quite unmindful of disastrous effect of their decisions on the daily life of the masses. [Dawn]
PRICE HIKES AND POVERTY ALLEVIATION
[Lt-Col (Retd.) Syed Ahmed, Ontario, Canada]
The Oil Companies Advisory Committee increased the petrol price by Rs.2 to Rs.42.39 per litre a few days back. Correspondingly, the prices of kerosene, HOBC and light diesel oil were also raised. And that's not all.
A Dawn Feb 5 report says the Oil and Gas Regulatory Authority has increased the price of natural gas by 8.25 per cent with effect from Feb 2 and the decision has been "quickly followed by CNG station owners who hiked the price of the environment-friendly fuel by almost 10 per cent".
I agree with your editorial (Feb 3) that whatever be the compulsions of the government, such measures are extremely reactionary because they will eat into the household budgets of the poor and impoverished sections of the people.
I am amazed at the inability of our financial wizard who does not realize that these fuel price increases are going to snatch yet another loaf of bread from the poor man's mouth.
The other day Justice (retd) Fakhruddin G. Ebrahim speaking in a programme on a private television channel stated that it had become extremely difficult for a middle class family of five to endure with a Rs.25,000 income. Will the prime minister explain how a family of equal strength can survive with a monthly income of Rs.5,000 or thereabout?
On the other extreme, the government is importing 30 bulletproof Mercedes cars and 20 luxurious Land Cruisers for ministers and VVIPs, costing billions of rupees. Pakistan doesn't need them, nor does it need ballistic missiles any more. It must overcome its internal weaknesses emanating from poverty and a sense of deprivation in the smaller provinces.
Former US secretary of state Colin Powell writes in last month's issue of Foreign Policy magazine that the "root cause of poverty is social injustice and the bad government that abets it." [Dawn]
INCREASING FUEL PRICES
[Anil Khan Luni, Karachi]
This is with reference to the news item "Scientists say lobsters feel no pain" (Feb 9) which says that scientists have come to the conclusion that invertebrates do not feel pain because they have basic nervous systems and small brains.
It appears leaders of our country think of the common man as a lobster that will feel no pain from the ever-increasing prices of petrol and electricity, which push up the prices of each and every commodity. The reason for such an indifferent attitude is that almost all the facilities provided to the leaders are fee of cost. Were they to pay for the petrol used in official cars, they would think twice before increasing its price.
It is about time they were made to pay for the facilities extended to them so that there can be an element of truth when they say that they can feel the pain suffered by ordinary people. [Dawn]
YET ANOTHER INCREASE IN GAS PRICES!
[Arif Khan, Islamabad]
Prices, no matter what commodity, service or facility, are never decreased once they have been increased. This is the oldest law in Pakistan. The people always suffer because of the follies of the government, which is responsible for the price hike. [The News]
BAN ON CAR PREMIUM FINANCING
[Khurram Hashemy, Karachi ]
The sbp decision to ban the financing of car premiums is welcome, but with no benefit to the genuine buyer. Recently, I booked an 800cc car. I applied for a car loan, got a cheque from a bank and walked into a car dealer's office (I did not finance the premium).
The dealer accepted the payment only after taking Rs12,000 as "booking fee". One wonders why this money is involved when the buyer is presenting 100 per cent advance payment in the name of the auto assembler.
While I was in the dealer's office, every walk-in customer was being told the following: "Booking of cars against 100 per cent payment is closed." I am sure marketing managers of auto assemblers know the potential that exists in walk-in customers.
My suggestion to the government is: please do some mystery shopping before making any decisions. The latest move will have no effect on speculative buyers, and only the genuine buyer is going to suffer. [Dawn]
CAR MAKERS AND BUYERS
[Faqir Ahmed Paracha, Peshawar ]
This is with reference to Mr Hisamuddin Rustam's letter "Car prices and delivery periods" (Jan 25). Mr Rustam has rightly pointed out that car demand has risen exponentially over the last two years and manufacturers are on a crash programme to increase production capacity.
Car manufacturers are also taking measures to discourage non-genuine customers. Some of these measures have been outlined by the correspondent. No doubt demand for cars, for whatever reason, has lately increased manifold and manufacturers have increased production and are discouraging non-genuine buyers, but two important questions regarding sustainability and affordability need to be addressed by the government.
How many cars are already on the roads and how many more can the infrastructure sustain? Secondly, in order to ensure that the prospective buyer can afford to purchase and maintain a car, the purchaser should be asked to produce his last income tax statement or proof of tax paid by him instead of asking for his NTN.
This would automatically ward off non-genuine buyers or profiteers. This practice is probably in vogue in Singapore. [Dawn]
HIGHWAY ROBBERY
[Ali Ahmed, Karachi]
The unilateral decision by Honda Atlas and Suzuki makers to increase the prices of their cars from February 1 this year is nothing but highway robbery. They have asked the customers who booked their cars months ago, and have already paid in full, to pay the difference. This is unfair and outright fraudulent dealing.
Why are the consumers being penalised so? The government and parliament seem totally unaware of the people’s plight. [Daily Times]
OUTRAGEOUS FREEBIES
[Editorial The News]
Something is rotten in the State of Pakistan. The economist Prime Minister's promise that the poor will be the main beneficiaries of the government's economic plans rings hollow when the national exchequer is emptied of a whopping Rs.50 million in just five months (May to September 2004), to allow three prime ministers, Messrs Zafarullah Jamali, Shujaat Hussain and Shaukat Aziz, and huge delegations of their friends and followers to go on Umra. As the country's top executives, fully cognisant of our financial standing, how could they have sanctioned such unnecessary expenditure - and for themselves, at that? To add insult to injury, they had initially claimed that they would bear these expenses themselves but then used the taxpayer's money instead.
What does this say about their priorities? Already the Rs.3 billion sanctioned recently earmarked to buy 30 bulletproof Mercedes Benz for VVIPs has caused a furore, in a country where a third of the population lives below the poverty line. Ordinary people find themselves unable to cope with the economic strains of ever-increasing inflation; salary increments don't keep up with rising costs, that include petrol prices, CNG, electricity for domestic consumers, and commodities of daily use.
In such circumstances, to allow government functionaries and their cronies such extravagance is nothing short of outrageous. Is accountability only reserved for political opponents?
ABUSE OF PUBLIC FUNDS
[Mubashir Khan, Indiana, USA ]
This refers to the news report "3 PMs spent Rs43m on Umra, Senate told" (Feb 10.) Things must be going really well in Pakistan. The report says the Senate was told that former prime ministers Zafarullah Khan Jamali and Chaudhry Shujaat and the incumbent prime minister, Shaukat Aziz, spent Rs16.7, 15.23 and 11.12 million, respectively, on their entourages during Umra in 2004! And what's more, the taxpayers paid for all this. Certainly, this must be a sign of great prosperity.
Is not their record of corruption and mismanagement the main reason President Musharraf cites for preventing Benazir Bhutto and Nawaz Sharif from returning to Pakistan? But under his own watch, men ushered into supreme office, themselves millionaires, ruthlessly abuse public funds to perform personal religious rites.
Should not these three be made to publicly reimburse in full the amount they have taken from the national exchequer? [Dawn]
UMRA ANOTHER VVIP PERK
[Hussain Siddiqui, Islamabad]
As many as 212 VIPs performed Umra only in the first five months of last year, at a cost of Rs 50 million. They include the prime minister, governors, chief ministers, ministers and alike.
It is unfortunate the performance of Umra has become part of the perquisites and privileges extended to them. [The News]
'OFFICIAL UMRAS'
[Hafiz Sultan Ahmad, Islamabad]
There is understandable resentment over the revelation that the national exchequer was deprived of Rs50 million because of "official Umras" by VIPs from May to September 2004. The beneficiaries were three prime ministers and 209 people who accompanied them. They included the governors and chief ministers of Punjab and Sindh, ministers, MNAs, MPAs, Senators, advisers, nazims, military officials and bureaucrats. They would often go with entourages, from wives/husbands to domestic servants. As for the Rs50 million, it is a drop in the ocean, considering that the country's record foreign exchange reserves are in the safe hands of a prime minister who is a financial wizard. [The News]
WB TRAINING LOAN - WASTED ON JUNKETS
[Air Cdre (R.) Azfar A Khan, Rawalpindi]
A news item in The News (Feb. 5) revealed that:
• Rs130 million borrowed from the World Bank - for the training of government officials -- has been wasted in officials' foreign junkets or for personal enhancement of the lucky individuals.
• Of the 153 officials who went on foreign trips, only 11 contributed to their projects on return to Pakistan.
• Of the 46 officers who were offered local training (perhaps because they were not lucky enough to have the right connections), only five served their departments after the completion of their trainings.
The audit department, which picks holes in other expenditures, did not object to this waste.
I hope the Rs3.6 billion for a more recently launched training programme (again from a foreign loan) will not end up in foreign pleasure trips for more officials. [The News]
MISPLACED PRIORITIES
[Zahid Khattak, Peshawar]
During the election campaign of Shaukat Aziz last year, some politicians gave the impression that if he was elected and became prime minister, his policies would eliminate poverty and unemployment. Good governance and other such things were also promised.
But what the nation got in their place are price hikes in gas, electricity, petrol, diesel and kerosene oil which have broken the backs of the middle and poor classes, resulting in an increase in suicides. The only achievements of his five-month rule are the induction of a brigade of ministers costing millions in taxpayers’ rupees only to ensure his rule, and the purchase of expensive bulletproof vehicles costing more than Rs 2.4 billion for the safety of his brigade.
Also, he lost no time in increasing the perks of this wealthy gang of ministers while pensioners and fixed-income government officials continue to groan under the unbearable burden of inflation. The manifold increase in the price of real estate is yet another blow to the middle class, who now cannot even think of owning even a five marla house. The high-ranking defence personnel are the real beneficiaries of this unprecedented inflation in real estate. God only knows what lies in store for this poor hapless nation of 150 million. [Daily Times]
LAWMAKERS' LIFESTYLE
[S. M. H. BOKHARI, Rawalpindi]
Luxury cars worth Rs.3 billion, increase in ministers' salary to Rs.125,000, substantial increase in honorarium and house rent allowance, demand for a modern gymnasium worth millions of rupees and compensation of Rs.0.3 million to the heirs of the 62 federal ministers and ministers of state in case of death in an air crash - all these speak volumes for the government's priorities.
The emphasis seems to be lopsided. Whereas the trickle down effect of economic development should have gone to the deprived masses, it seems to be showering bounties on the privileged few who already have enough.
The legislators seem to be in an awesome hurry to accumulate as much as they can within the time and opportunity at their disposal. As rightly pointed out by some analysts, the cost of building one gymnasium for 450 parliamentarians should be enough to meet the basic needs of education and health of several thousand people.
Islamabad is a paradise for walkers and unfortunate are those who wish to confine themselves to the four walls of a gymnasium rather than taking a walk in the picturesque surroundings of Margalla hills. When in Islamabad, our parliamentarians should go for walks on the captivating jogging tracks, breathe some fresh air and think well of their constituents. [Dawn]
SKYROCKETING SALARIES
[Afzal Rahim, Islamabad]
A news report stated that the ministers’ salaries would be increased to Rs.125,000. The news was shocking for myself as well as many others.
It looks like our honourable ministers (62 in number) are forgetting that the number of people living below the poverty line in Pakistan have increased from 32 to 44 percent over the last five years, despite the present regime’s oft-trumpeted claims to the contrary, and much publicised poverty alleviation programmes. This increase in the salaries of a handful of individuals at the cost of more important sectors like health, education and social protection leads one’s impression of the government to deteriorate. The skyrocketing prices of essentials on a regular basis adds to the woes of the common man. In fact it is becoming extremely difficult for the man in the street to keep body and soul together under the weight of such price hikes.
In the end I would like to request the government to review its decision and divert this money to more important sectors like health and education, and let the ministers be content with what they already have. [Daily Times]
'LUXURY AT OUR EXPENSE'
[M. Idrees Malik, Islamabad]
Ms Shaheen Imtiaz (Jan 28) asks a pertinent question: "How can our great economist Prime Minister allow the VIPs to enjoy such luxury at the expense of the national exchequer?" "Read my lips," "It's the economy, stupid!", "There is a method to this madness" - the are all convenient "reasons" given by politicians anywhere for the justification of their hard-to-defend decisions and actions. We have an economist as Prime Minister, but strict economic and financial constraints continue to receive low priority. Mr Shaukat Aziz may be a financial wizard, but he has to economise on those VIP luxuries. [The News]
OUR MINISTERS' SALARIES
[Javed Iqbal, Peshawar]
There is much talk about the harms of air pollution and drug addiction. But no one seems to mind the economic harm of the high salaries our ministers receive: the amount is a staggering Rs 93 million per annum. [The News]
PERKS FOR OUR MINISTERS
[Rafia Mirza, Lahore]
It's time of jubilation for the common man in Pakistan!
Our ministers, parliamentarians and politicians and have finally decided to put their differences aside and join hands to lift his spirits. What can make him happier than to see one of them going around in his new Mercedes, trying to solve his problems. Faster, fancier cars will naturally usher in an era of prosperity and end all our woes, such as lack of speedy justice.
As for the greater amount of money going into these people's pockets -- that is justified too.
What may appear as vulgar flaunting of wealth will be seen by others as signs of an affluent nation. Who will respect them, and the country, if they do not maintain a certain status?
The least we ingrates can do is to ignore the rickety wagons and the donkey carts around us. These Mercedes cars are a manifestation of our collective success and glory. [The News]
SUGGESTION AND REQUEST
[Ashar J. Khokhar, Leeds, USA]
It is a fact that 95 per cent of the members of the National and Provincial Assemblies, Federal and Provincial Ministers and Members of the Senate are from rich families, being jagirdars, industrialsts, professionals and/or religious leaders. There has been a huge increase in the salaries, expenses and unpaid bills of these members.
Pakistan is facing financial difficulties and a part of the problem is the members of these institutions and their demands. Instead is it not possible for them to work on a voluntary basis? They have the financial resources to do this. Some of them are millionaires several times over. They all have cars (not just a car), drivers, houses, and servants. It should not cause any financial hardship for them since all of them own properties in Islamabad and the Provincial capitals.
I would suggest that this amount should be diverted to improve the health and education facilities for the poor people who happen to be serving the common man for generations. They too deserve a better life and better education and health facilities like their (so called) representatives. [The News]
MR SHUJAAT'S MERCEDES
[Col. (Retd.) Riaz Jafri, Rawalpindi]
Chaudhry Shujaat Hussain (MNA and former prime minister)was using a luxury, bullet-proof Mercedes Benz S600L even before he became prime minister, and the government is permitting the president of the Pakistan Muslim League to continue to use the car at government expense. In the very least, it is in bad taste on the part of the former prime minister.
I think the day our leaders learn to differentiate between public property and personal property, half of Pakistan's maladies will be over. [The News]
GUJRANWALA TRANSPORT TROUBLES
[Salman Muqeem, Gujranwala ]
Through these columns I wish to draw the attention of the authorities in Punjab to the problems faced by users of public transport in Gujranwala. Thousands of commuters - including women, the elderly and students - suffer daily from non-availability of vehicles.
This shortage is due to the monopoly over public transport enjoyed by one bus company at the behest of a provincial minister. The minister first banned wagons from plying on the GT Road and has now banned motorcycle rickshaws as well.
The result is that bus operators use the GT Road as their personal domain, stopping at will, causing traffic jams, and cannot be prosecuted because they have been allowed on the road by the "higher-ups". There is simply not enough space on the GT Road for more buses, and commuters have to wait endlessly for over-crowded buses.
The losers in this money game are the poor citizens of Gujranwala, who have nowhere to turn to for redress of their grievances. Contact with local transport authority, district government, and traffic police have proved futile, as all of them claim to act on "directions from above".
I request the provincial authorities to end this unjust monopoly and allow wagons and motorcycle rickshaws to operate on the GT Road in the public interest. [Dawn]
TACKLING TRANSPORT TROUBLES
[Aftab Islam Agha, Lahore ]
The transport muddle is just another name for the Punjab metropolis of Lahore, as also for the cosmopolitan port city of Karachi. The traffic mess that both these major cities of Pakistan are in has now assumed astronomic proportions, and it can be said, without fear of contradiction, that if steps are not taken immediately, it will soon become unmanageable.
This mess can be attributed to the lack of interest on the part of the government functionaries concerned. One past regime opened the mouth of the exchequer to distribute funds for the purchase of taxis and wagons among those it deemed fit and deserving by its own standards.
The result was mass purchase of cars of all makes and models for the personal use of near and dear ones. Some time back, the franchise bus system was reintroduced in Lahore but the timing and service have turned out to be no better than that provided by the wagons which are as overloaded with passengers as before.
As for these buses, only company names may sound foreign but not the culture. There is no check on overloading and one can see passengers packed like sardines. The only solution to handle the present heavy traffic is provision of a respectable means of transport to the masses so that those who are forced to maintain cars or motor bikes due to non-availability of adequate public transport at the right time (and price), can ultimately feel comfortable without them.
With the increasing number of vehicles due to easy car financing, and the resultant fast-shrinking parking space in major cities, the people will certainly prefer to use buses provided they are comfortable, respectable, and move on schedule to reach destinations at pre-set timing.
This is not possible the way wagons and buses are being made to ply at present. In fact, such a system is possible only if wagon operators are forced to form large cooperatives in the private sector.
The management of these cooperatives can, in turn, plan and control the movement of wagons centrally by getting rid of the present rat-race for collecting more passengers per trip.
Furthermore, wagons are difficult to control because in most cases they are owned, as is commonly believed, by police officials and thus acquire immunity to traffic rules and regulations.
Animal drawn carts are another menace. It is a pity that even in the 21st century there is no planning to get rid of this 5000-year-old transportation mode. The number of these carts, instead of going down, has been on the increase, thanks to the illegal gratification system in vogue.
Concern has been voiced at all levels - metropolitan, provincial and national - for the construction of new roads, widening of the existing ones, provision of footpaths and cycle lanes coupled with scientific remodelling and installation of traffic lights at all crossings.
Steps also need to be taken for reduction in the present variety of transport for better traffic control. At the same time, more emphasis is required on mass education about transport management. Until now, all public demands seem to have been in vain.
But then every cloud has a silver lining. In the deluge of congestion, environmental pollution, and the resulting suffocation, a ray of hope and light was visible a couple of years ago in the proposal by the government of two mass transit projects, though very modest in size.
The two projects envisage construction of an overhead transportation system by the name of Light Rail Transit (LRT) in Lahore and the Mass Transit Project (MTP) in Karachi and it is heartening to note that both the ambitious plans have recently been taken up by the government at the highest level on the directive of President Musharraf.
Let us hope and pray that the government is serious in the planning and execution of these projects and accords them due priority to relieve the masses of the current painful situation. [Dawn]
ACTION AGAINST CELLPHONE FIRM
[Lalarukh Ejaz, Karachi ]
This is with reference to your newspaper's report which said that the government regulator, Pakistan Telecommunication Authority (PTA), was contemplating action against Mobilink.
What about the harassed subscribers of other companies? As a user of Ufone, I can say that its service is extremely shoddy and if action is being taken against Mobilink, then it should also be taken against Ufone. But there is a catch. Ufone is a wholly-owned subsidiary of PTCL which is government-owned. In the past private cell phone operators and even Internet service providers have accused the PTA of favouring PTCL and its subsidiaries by not taking any action against them despite obvious violations of service guidelines or other problems. One hopes that the PTA will prove its impartiality in this matter and act impartially. [Dawn]
CRUMBS FOR CELLPHONE CUSTOMERS
[Badar Jatoi, Karachi ]
This refers to the news item (Dawn, Feb 2) in which the Pakistan Telecommunication Authority (PTA) was reported to be contemplating action against a provider company for the poor quality of their service.
It is on record that this company was previously also reprimanded for allowing a credit of Rs50 to its subscribers whereas it had collected huge bills after charging their consumers for dropped calls. It was absolutely no compensation compared to what the subscribers actually paid in monthly billing to the company.
It was expected that with the growing number of cellular companies there would be a healthy competition, and the service would improve. In foreign countries cellular phone companies allow credits to their customers whenever a company realizes that they are at fault. But here all the companies have joined hands in the 'caller-pays-bill system' where the mother of them all, the PTCL, takes the biggest piece of the cake and leaves little slices for the cellular companies. And all that we customers get are crumbs. [Dawn]
BAN ON DANCE AND MUSIC
[Albert J. Godin, Ontario, Canada]
The private bill presented in the Frontier assembly by an MMA member a few days back, seeking a ban on music and dancing in public, appears to be of concern to many of us who have close ties to the province. Only recently there was an article in Dawn about two young boys, namely, Tariq Hassan Bacha (12) and Zeeshan (11), who have published an album on Pashto music and singing, titled "Joora Galoona" (a pair of flowers), which has received worldwide acclamation.
In a province which offers very little scope by way of beneficial employment for qualified men and women, it is indeed gratifying to know that these two young lads have made use of Allah's gift of their vocal cords to bring happiness to many.
One would like to know if the few traditional cultural dances like the Khattak and Masud dances which are performed in the public for visiting dignatries and during the Pakistan Day parade will also be subject to this legislation whose violation will be treated as a penal non-bailable offence.
And, will the Kalash people, who have their own cultural dances and festivities, so special to their own way of life, also be liable to this piece of legislation ? To my mind, it would be an infringement of their constitutional rights, as also their human rights. Will the Constitution of Pakistan be superseded by this legislation of the Frontier assembly bill, if passed?
It is possible that at some future date, there will be an addendum to this legislation to ban the playing of hockey, football, tennis, kabaddi, etc., where legs are exposed.
Some time back the tourism minister in the Frontier government was seeking ways and means to encourage tourism in the province. Does the banning of music and dance help? What would visitors/tourists see or learn? If the purpose of tourism is economic upliftment, if there are no tourists, there can be no monetary gain.
For the information of the mover of the bill, the world is open. The internet carries a whole lot of information that a normal individual can access - be it music, dance and "whatever". Banning dance and singing would force people to turn to a "climate" of culture which far exceeds that which the bill seeks to control. Is that what the bill seeks to do? It will push society to seek satisfaction from other cultures.
And, finally, may I invite the mover of the bill to read Shakespeare's "Twelfth Night" Act 1, Scene 1?
If music be the food of love, play on!
Give me excess of it, that, surfeiting,
The appetite may sicken, and so die.
That strain again! It had a dying fall,
O, it came o'er my ears like a sweet sound
That breathes upon a bank of violets....
My dear friends in government, it is given to you by an election mandate to provide good clean water, education, health facilities for the poor in particular (the rich can afford to pay) and to make life easy for those who suffer. Please leave these petty things of dance and music for a later date. Pursue those that are more important. [Dawn]
BASANT DEATHS
[Syed Shabbir Haider, Illinois, USA ]
It was very sad to read in newspapers about the death of nine innocent people on a single day during the Basant celebrations in Lahore. I am neither against this festival nor the spending of money on its celebration, as it not only helps people to relax but also leads to circulation of money which is a good thing for our economy.
But people should respect the lives, property and freedom of other people. There should be a complete ban no aerial firing and use of metal wires as well as a check on speeding on the road. It's time people started acting responsibly.
In this regard I think our police can play a major role and they should be very strict in the enforcement of laws. [Dawn]
