FreePakistan Newsletter expresses deep sorrow over the Tsumani Disaster and sympathizes with the victims and their near- and dear-ones!
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CONTENTS:
0 While We Were Sleeping
By Barun Mitra
0 Pakistan-India Trade: Will It Reduce Poverty In The Region?
By Shan Saeed
0 FreePakistan News Briefs
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WHILE WE WERE SLEEPING
By Barun Mitra
[The Indian Express, New Delhi http://www.indianexpress.com/full_story.php?content_id=61806
31 December 2004 Barun Mitra is President of the Liberty Institute, New Dehli
BLURB: The tsunami tragedy has revealed one thing: information is the key in a crisis
Even as we struggle to come to terms with the trail of death and destruction left by the sea surges that hit our unwary shores just a day after Christmas, we need to realise that all crises opens up new opportunities. The deaths of so many of our fellow countrymen need not be in vain if we act on what we learn.
The tsunami that hit the Indian coastline, along with seven other countries in the region, has been one of biggest natural calamity in recent decades. However, the human cost could have been significantly reduced.
Arguably, the single most important factor that shaded this colossal human tragedy was lack of information. Lack of appropriate information and grossly inadequate communication networks exposed our extremely vulnerable flanks to the ravaging of both earth and sea.
Information is power when information is credible, timely, locally relevant, and widely accessible to the population. That information can literally be a matter of life and death is revealed by the report of an alert Indian working in Singapore who telephoned his native village in Pondicherry and warned about a possible tidal surge in the early hours of December 26th. Such a simple act saved many lives. So also, a few years ago when a super cyclone hit the eastern state of Orissa, an alert port official in Paradweep kept tracking the storm on the Internet and helped guide a few ships to safety.
The first TV pictures of the unfolding tragedy came via Doordarshan only around 10.40 am. There have been very few reports of MMS, home video or web camera capturing the images of the devastation. Bare arsenal, indeed, for a nation that seeks to leapfrog into the information age.
There was a major earthquake off Antarctica about a week ago. Some scientists think that it had contributed to the build of seismic stress in the Sumatra region. Were our meteorologists aware of the possible threat? It is now clear that the Met office had barely noted the threat posed by the quake off Sumatra, and D-day being a Sunday, that information was not effectively utilised by any of the coastal authorities either. The tsunami hit Sri Lanka just a little before 8 am; around 8 am, the tide had reached Cuddalore in Tamil Nadu. In another 40 minutes, the waves lashed Chennai, going up the coast to Vishakapatnam by 9 am. Just prior to the deluge, the sea retreated quite a long way back as if to draw its breath before the final punch. But there was no one to take note or warn people of this, an act that would have given people at least ten minutes to flee the beaches. And those who did see did not understand this phenomenon, including the coast guard, the navy and the port authorities.
At every stage, there was a shrinking window of opportunity to warn people. But nothing happened. A country that hopes to run the call centres of the world could not call its own people. In a country that aspires to be a world power, it took 12 hours for news of the disaster that overcame the Air Force base in Car Nicobar island to trickle through. Is this is the level of our defense preparedness, when New Delhi is supposedly a mere 20 minutes away from a Pakistani missile, and Karachi is in the same situation in the opposite direction?
Also, it is no coincidence that two of the most affected regions, Nicobar and Acheh province in Indonesia, are among the most isolated and incommunicable. Even Indians need permission to go to Nicobar. Not surprisingly, this isolation actually made those people even more vulnerable.
In India, the flow of information has been in the stranglehold of various information and communications policies. Centralising information flow, as most governments in India have tended to do, more often than not defeats the very purpose of that information. In fact, at the end it leaves even the government in a blind. It is no coincidence that even after 48 hours after the sea surges, no information was available from many parts of the affected areas, and consequently, speedy relief did not reach these areas.
In fifty years, we have barely been able to make basic telephone needs available to 5% of the population. With the recent and hesitant reforms in the last ten years, we enhanced telephone density to 10% by opening up mobile telephony. Internet access in India is among the lowest for a country that aspires to be a potential powerhouse in the information technology sector. We have done everything possible to retard the expansion of information, broadcasting and communication channels. We have spent years debating new opportunities opened up by rapid technological changes in areas like DTH, broadband, convergence, satellite access, but have actually done nothing that would enable us to seize these new opportunities.
In the aftermath of the tidal wave, the government announced its decision to set up a tsunami warning system. Point is, why is it that in spite of days of prior warning, cyclones and floods continue to kill thousands of people each year? Would a new tsunami warning system really help?
Three days after the tsunami, even as reports of dire needs are pouring in from many corners, as shortage of potable water and food and threats of epidemic outbreaks are becoming a possibility, we think our national pride will be hurt if we accept help from abroad. Just as we let our people down by failing to raise an alarm in time, we now exhibit our resoluteness in sacrificing our own people rather than allow others to step in with facilities for clean water and medicine.
Information is power. Free flow of information using the whole range of communication technologies is the best way to empower the people. For a country that proposed Satya Meva Jayate, rather than be shaken by the tsunami, we should use this crisis to shake off the shackles on information. Let the truth prevail.
PAKISTAN-INDIA TRADE: WILL IT REDUCE POVERTY IN THE REGION?
By Shan Saeed
This hot topic has become as indispensable to deliberate not only in the corporate circles but in the bureaucratic arena as well. Many writers have written the benefits of trade for both countries and some writers have gone against it citing national interest in both nations. However, if we analyse the position of both countries, there is so much needed to ameliorate the sufferings of the common man who are under social and economic pressures to make ends meet. Poverty has increased in both countries since independence, making lives miserable for the people of the sub-continent. The objective of both the countries, eradication of poverty and hunger, critically depends on the allocation of adequate resources for the betterment of the masses.
According to the Pakistani commerce ministry’s figures, between them, India and Pakistan import and export goods worth $ 200 million every year. Pakistan’s own economic indicators put the figure at around $250 million. Even so, trade between Pakistan and India has registered a gradual increase over the last decade. In 1990 India’s exports to Pakistan were just $135 million and imports were $145 million. In 1998, exports grew to $389 million and imports to $264 million. By 2000-2003, India’s exports to Pakistan have grown to $631 million and imports to $527 million.
Experts agree that great trade potential exists for both if the two sides could focus on each other’s specific needs and capabilities. Pakistan can import Indian iron ore, machinery and steel items, chemicals and dyes, wheat, spices, tea and other products while India can buy cotton yarn and textiles, leather products, surgical instruments, water coolers, papers, vegetables, fruits and other things from Pakistan. Meanwhile, unofficial trade between the two flourishes and is worth US$5 billion, five times the official trade figures. Indian textile machinery, tanneries-equipment, machine tools, and spare parts are often ordered from Djakarta, Bangkok, Dubai, Hong Kong or Singapore and then re-exported to Pakistan at a greater cost. If we analyse the region in general, there are few facts that should prove as an eye opener for the economic experts.
Pakistan can benefit by trading with India and can open vistas for the entrepreneurs of both countries. The most conspicuous factor for both India and Pakistan is that European and American governments are backing them up thus paving way for economic and social reforms in their countries in the shape of aid, war on terror — grant and huge loans from the donor financial institutions (World Bank, IMF and ADB). Both countries have made a remarkable progress in their perception management strategies for the outside world. Independent studies on the other hand put bilateral trade at between $1 billion and $2.5 billion — most of which occurs through smuggling. Smuggled videotapes of Indian films, artificial jewellery and cosmetics are popular in Pakistan, while copies of Pakistani television shows and dry fruit are smuggled into India. Imagine Indian films being produced and directed in Pakistan. What will happen to our films when we cross the border there? The industry of both the countries will benefit by exchanging expertise, knowledge, technical know-how. The trade between Pakistan and India can boost the regional bloc of SAARC thus making it more competitive for other regional blocs like ASEAN, NAFTA, and the European Union to ponder upon the strength and prosperity of the region.
Trade is an area that will have economic benefits for both countries and their people. Vigorous India-Pakistan trade will be one of the important peace dividends. It will help reduce poverty in the region. There are about 373 million people in both India and Pakistan who are living below poverty line. These figures are precarious. A total population of both countries comes to 1.20 billion people.
According to ADB’s annual report, the experience of five Asian countries - China, India, Thailand, Pakistan and Vietnam - reveals that poverty is a challenge that can be overcome if states pursue "sustained pro-poor" policies. Continued strong growth in the two large low-income countries will benefit the world economy as a whole, reduce global poverty, and serve as an incentive to other developing countries.
Trade between the two countries would be seen as a good omen by the other nations as well. With political and economic stability, India and Pakistan can expect foreign investment coming into their countries.
Cheaper cost of production, skilled labour, educated middle class, female literacy, booming economy, vital American and European interest in the region can change the fate of many people of the sub-continent in a span of 5/10 years’ time. However, some impediments from some extremist elements/ nationalist group from Pakistan can hamper free trade with India.
The trade between Pakistan and India can make a colossal impact on the regional trade activities. This would help buttress in making South Asia trade bloc that will benefit not only the region, but also the global economy. Trade agreement signed by the Pakistani entrepreneurs augur well for the people of both countries.
Indian exporters control 70 per cent of intra-regional shipments. Four of the members - Nepal, Bhutan, Sri Lanka and the Maldives - have a total population of 44 million people. The other three - India, Pakistan and Bangladesh - are home to 1.26 billion people. By allowing duty-free Indian imports into its economies, without reaping matching gains in inward investments and industrialisation, Pakistan would benefit. This is totally a false notion that Indian products would ruin our industries. I don’t buy this argument. By 2005, trade barriers, quotas, duties, tariff and subsidies would be history. Protectionism can harm global trade. Let the competition decide who is the winner with better quality product and competitive prices. However, if we analyse this fact from the national perspective rather than looking at it from a personal perspective, the common man of the country will get good products at reasonably affordable prices. Common man would benefit in the end. The establishment of an open and non-discriminatory trading system would bring massive benefits to developing economies, and accelerate their progress in reducing poverty.
What is needed at the moment is to alleviate the sufferings of the human beings of both the countries and reduce poverty level considerably. Trade could pave the road to peace, or at least give the businessmen in the two countries a stake in preventing another war. More commerce between India and Pakistan will enhance the political and economic space to deal with differences. If one looks at the trade statistics during the past few years, both the countries failed to achieve any significant gains by adopting controversial trade policies. The advantage is passed on to corrupt elements and Mafia in both the countries, who thrive on smuggling, illegal border trade, transit through third countries, personal baggage in connivance with customs officials etc at both the ends which account for a turn over of almost $ 3billion. Both the countries lose revenues due to illegal trade, besides; their domestic industries have unpredicted impact on their production on account of unrestricted flow of consumer and other goods across the border. India has always shown biased attitude towards Pakistan and has maligned Pakistan at international forums by accusing Pakistan as having adopted discriminatory trade policy towards India and thus succeeded in blocking Pakistan’s entry in Indian Ocean Rim Association.
Pakistan has adopted a very conciliatory policy towards India on trade issues. Pakistan’s tariffs have been reduced and in several cases are lower than India. Legalised trade, therefore, will be favourable to Pakistan mainly because it will reduce smuggling and increase government revenue besides providing us vast market of about one billion consumers across the border. Pakistani businessmen, through extensive travelling across the sub-continent to study consumers’ choice culminating in production of wide range of products, with some adjustment in product-lines and maintaining quality control and competitiveness, can capitalise the advantage. Indian quality is not far from our standards. Pakistan can achieve an edge over price and quality in selected products. Trade statistics from 1997 to-date have shown that Pakistan could maintain balance of trade with India by adopting viable strategy to penetrate into Indian market. India has achieved rapid industrial growth and self-sufficiency in day-to-day industrial production - engineering, chemicals, dyes, agricultural produce etc except advanced sophisticated machinery and technology. Imports from India will cost less because of its competitive prices and save our foreign exchange substantially. Besides, Pakistan businessmen can gain experience from Indian industries. It will also open new avenues from inter-regional and intra-regional trade with the participation of India in the backdrop of resistance of advanced industrial economies pressing for structural adjustment. Though India is a big exporter, we can pick-up industries at our end that can make inroads into not only India but also regional markets through upgrading productivity and structural adjustment to live with competition and co-operative approach. The bottom line is economics, people from both countries should benefit from each other through trade and investment, improving the living standards of the masses, which in turn would help alleviate poverty in the region. A major challenge confronted by both countries. [Courtesy The News]
FreePakistan News-Briefs
As the WTO regime is going to be implemented in 2005, the government of Pakistan has started publishing the following ads in the newspaper:
WTO in 2005
Will WTO introduce total free trade?
Will Pakistan have to bring all its import duties to zero?
Will Pakistani industry therefore collapse due to lack of any protective duties?
The answer is NO.
Because in 2005, WTO does not require total free trade or for Pakistan to reduce its duties. Since the present duty protection will remain as such in 2005 and some years to come, Pakistani industry will remain unaffected. [December 24, 2004]
Will WTO harm Pakistani agriculture by:
(i) Requiring agricultural products to be imported duty free
(ii) Preventing the Government from giving any subsidy to our agriculture sector
The answer is NO.
Because in 2005, WTO does not require Pakistan to reduce any import duty; and
Under WTO rules the Government can provide considerable subsidies to agriculture depending upon the funds available with the government. [December 25, 2004]
Is it true that new stricter WTO quality and other standards will be imposed by WTO and therefore Pakistani products will not be allowed entry to foreign countries and markets?
The answer is NO.
i) In 2005 WTO will not impose any new stricter quality and other standards for Pakistani exports, since this is not the function of WTO.
ii) It has always been upto individual customers and countries to prescribe standards for products they import.
iii) The WTO in fact seeks to help Pakistani exporters by requiring all countries to ensure that their standards are not stricter than necessary, and are not used to unfairly restrict Pakistani exports. [December 26, 2004]
Since under WTO rules all quotas on export of textiles and clothing by Pakistan and other countries will stand abolished, this will be an opportunity as well as a challenge for our textile sector.
OPPORTUNITY: Due to end of quantitative quota restrictions Pakistan will now be able to freely compete and increase its exports of textiles/clothing to any country.
CHALLAENGE: The challenge will be in how well the textile industry and the government can work together to improve our international competitiveness in this sector and take full advantage of this opportunity. [December 29, 2004]
GOV ANNOUNCES FINANCIAL SUPPORT FOR QUALITY ASSURANCE
The Government of Pakistan has announced financial support for the quality assurance through in house laboratory calibration of private manufacture exporters in a bid to enable them to produce international quality standards.
INCENTIVES DEMANDED TO FACE GLOBALIZATION
The Vice President of the Federation of Chambers of Commerce and Industry has stressed upon the government to announce certain incentives enabling exporters to face the challenge of globalization.
WORLD’S MOST RESPECTED COMPANIES
The seventh annual global survey of corporate reputation conducted by renowned firm ‘PriceWaterhouseCoopers’ and the ‘Financial Times’ has announced the 2004 ranking of the world’s most respected companies. According to the ranking, the top five most respected companies in the world are: General Electric, Microsoft, Toyota, IBM, and Coca-Cola.
MACRO-ECONOMIC SUCCESSES FAIL TO DELIVER
The International Monetary Fund has said poverty and unemployment remains high in Pakistan with real wages declining despite successes in macro-economic stabilization during the last year.
SBP WORRIED OVER INFLATION
The central in its first quarterly report on the state of economy for FYo5 has blown a trumpet on economic growth, which it attributed to agriculture and industry, and expressed deep concern over inflation owing to higher crude prices of food items. According to the report, the inflation monster has clearly differentiated between the lower and higher income groups and hit hardest the poor.
IMF SUPPORTS MORE RESOURCES FOR PROVINCES
The International Monetary Fund hopes expeditious agreement on the new National Finance Commission award would transfer more resources to the provinces.
RAILWAYS TO BE CONVERTED INTO CORPORATION
The Federal Minister for Railways has said the Pakistan Railways would be converted into a State-owned Corporation next year and all arrangements have been finalized in this regard.
TAX-MACHINERY AUTOMATION TO COST $150 MILLION
To fully reform and automate the tax machinery for facilitating tax payers and generating enhanced revenue, the government will spend $150 million to ensure that action to facilitate tax payer is taken in short time and those responsible for delay in disposal held accountable.
PROBE AGAINST 100 REVENUE OFFISIALS
The Anti-Corruption Establishment has registered cases and initiated inquiries against more than 100 officials of the Revenue Department posted in Lahore, who allegedly obtained millions of rupees as bribe for issuing bogus ‘fards’, tampering with official records and selling or transferring 550 kanals fo land during 2004.
TASK FORCE TO FORMULATE NEW CORPORATE TAX POLICY
The Securities and Exchange Commission of Pakistan and the Central Board of Revenue have constituted an eight-member joint task force to formulate a new corporate tax policy and come up with a report within a month.
PUNJAB GOV ASKED TO ENSURE FAIR OPPORTUNITY TO TRANSPORTERS
The Supreme Court of Pakistan has declared Section 69-A of the Motor Vehicle Ordinance 1965 (as amended) ‘ultra vires’ of the Constitution. The Supreme Court in its detailed judgment stated that existing arrangement may continue for a period of four months enabling the provincial government to take appropriate legislative measures in accordance with the Constitution and law. The SC observed that it is not too late for the government of Punjab to suitably amend the Motor Vehicle Ordinance 1965, and if need be, in the public interest and welfare, consistent with the provisions of Article 8 of the Constitution of Islamic Republic of Pakistan, ensuring fair opportunity to the transporters to conduct their business freely, with a provision of better facilities of travel to the passengers in a dignified manner through reliable stage carriages. On October 29, the SC had declared the franchise transport law of the Punjab government [which in fact instituted monopolies of the influential transporters on the various intra-city routes – Ed.] ultra vires but allowed the franchise to operate on the contracted routes for four months.
STREETLIGHTS TO GO TO PRIVATE SECTOR
The city district government of Lahore has decided to hand over the job of streetlights to private sector. The decision to the effect was taken following the poor performance of the City government department.
LCCI TO TAKE CARE OF GOV SCHOOLS
The Lahore City District government has announced handing over the control of the government schools for the handicapped children to the Lahore Chamber of Commerce and Industry. Lahore Businessmen Association for Rehabilitation of Disabled, an institute established by LCCI members will eventually take over these institutions.
TRADE TYCOONS TO FUND RESEARCH IN PUBLIC SECTOR UNIVERSITIES
Around 20 industrial giants of the country have agreed to fund development projects worth over 12 million US dollars (approximately) to boost academics and research in modern disciplines in 8 public sector universities. The decision in this regard was made in a meeting on University-Industry Linkages c haired by the Governor of Punjab whereas the memorandum of understanding between respective partners would be inked in a separate ceremony.
PM APPROVES KSEW PRIVATIZAITON
The Prime Minister has approved the privatization of Karachi Shipyard and Engineering Works to make it viable and efficient organization.
GOV TO ENCOURAGE PRIVATE SECTOR
The Minister of State for Information and Broadcasting has said the government is committed to encouraging private sector for the promotion of quality education in the country.
SEPA WARNS INDUSTRIES
The Singh Environmental Protection Agency has warned all the industries of the province to adopt precautionary measures for controlling the pollution ahead of WTO to be implemented in 2005.
PROTEST AGAINST PRIVATIZATION OF EDUCATION AND HEALTH
Punjab Professors and Lecturers Association has rejected the proposed recommendations of the pay and pension committee for replacing regular service structure with contractual employees. In a meeting, they warned the government to refrain from privatizing the education and health sectors.
CALL TO END DOWNSIZING, PRIVATIZATION
The All Banks and Financial Institutions general body has called for abolishing all anti-labor laws and ending downsizing and privatization of national institutions which deprived workers of their basic rights.
SALE, PURCHASE OF USED CELLULAR PHONES BANNED
Keeping in view an alarming increase in mobile phone snatching in Karachi city, the Singh government has immediately banned sale and purchase of used cellular phones for ten days to counter such an organized crime.
PROTEST AGAINST SECURITY SITUATION
The All Pakistan Organization of Small Traders and Cottage Industries Karachi organized a protest demonstration in front of the Karachi Press Club on December 29. They lamented the government for failing to provide them with security against dacoities, murders and kidnappings.
CAR MARKET TO STABILIZE IN 2005
According to the sources in the Auto Dealers Association, Pakistan automobile market is likely to stabilize in the year 2005 with the prospect of import of almost 8,000 new and 5,000 used cars during the coming year and increase in local production.
‘JUDICIARY UNDER ARMY PRESSURE’
Justice (retd.) Fakhrun Nisa Khokhar, a retired judge of Lahore High Court, has said the country’s judiciary is in great trouble as compared to the past. She said the people had lost confidence in judiciary as they were not getting speedy justice. The judiciary is functioning under the pressure of army rulers and not free to give verdicts transparently particularly in political cases. The former judge said only the independent judiciary could strengthen the legal system in the country.
A ‘BRIBE’ TO THE POOREST OF THE SOCIETY
The Chief Minister of the Punjab province has said that those who were working against the interest of the country should not be given coverage and media should not give them any importance. Addressing the foundation-laying ceremony of Lahore Press Club Housing Colony, he said media had always played a very important role in highlighting the nationalist approach, but all those who, despite having Pakistani identity, were talking against the country should not be given coverage in the national press. He said he was grateful to God Almighty for enabling him to fulfill his promise regarding the journalist colony. He also thanked the DG Lahore Development Authority for the development work of the colony. About the demands regarding sewerage and construction of link road, he said he had approved Rs.80 million for trunk sewerage, Rs.22 million for link road and Rs.16 million for a park. He said the total amount of Rs.120 million would be given by the Government of Punjab.
