If people behaved like governments, you'd call the cops.
-Kelvin Throop
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CONTENTS:
0 Wheat and Meat under Government Feet
By Paul Lundberg
0 Free Trade Is Cricket
By Khalil Ahmad
0 Letters from the Press
0 FreePakistan News Briefs
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What is Philosophy of Liberty? A screensaver by Lux Lucre and Ken Schoolland explains it.
Download and install it. http://www.free-market.net/rd/321907219.html
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ALTERNATE SOLUTIONS INSTITUTE PUBLISHES ITS FIRST BOOK OF TRANSLATION
Alternate Solutions Institute, Lahore, Pakistan, has published its first book of translation, Ken Schoolland's "The Adventures of Jonathan Gullible: A Free Market Odyssey," in Urdu which is understood not only in Pakistan but throughout South Asia. Ken's modern fable has so far been published in 29 languages of the world Urdu being the 30th. This book explains the principles of market economy in a simple manner and helps promote the concepts of open market and property rights. The book has been translated into Urdu by Khalil Ahmad. A. S. Institute is indebted to Irshad Ameen for his tireless efforts in getting the book out of the press.
It is hoped that the book will give a new direction to the discussion of welfare state in Pakistan.
If you want to purchase the book, contact at asinstitute@hotmail.com
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FREE MARKET THINK TANK OFFERS $10,000 FOR BEST ARTICLES
The International Policy Network (IPN), a London based free market think tank, is offering a $10,000 prize to writers anywhere in the world whose published articles work to promote the institutions of a free society – free speech, property rights, the rule of law, free markets and sound science.
The Bastiat Prize for Journalism, first held in 2002, is inspired by the 19th century French philosopher Frédéric Bastiat and his compelling belief in free trade and the defence of liberty. Bastiat's brilliant use of satire enabled him to turn even the most complex of economic issues into a tale to which the average person could relate. In keeping with this legacy, prize entries are judged according to the intellectual content of each article, the persuasiveness of the language used and the type of publication in which they appeared.
Last year the competition attracted over 140 entrants from 28 countries across the developed and the developing world: writers came from China, Zimbabwe, Pakistan, Israel, UK, Sweden, Australia and the US.
Entries will be accepted between now and June 30th 2004 and must be in English. They can be in the form of one or more published articles totalling no more than 4,500 words inclusive.
Rules, regulations, judging criteria and previous entries can be found on IPN’s website: www.policynetwork.net
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WHEAT AND MEAT UNDER GOVERNMENT FEET
By Paul Lundberg
[Paul Lundberg is a development analyst living in Pakistan.]
[I have attached a short note on the meat and wheat . . . issues. I thought I would keep it short and simple. The original articles could also be posted.
Best wishes for success of your venture in educating the Pakistani public before it is too late.
Cheers,
Paul Lundberg]
Two articles on the Internet recently pointed up the continuing suffering inflicted upon consumers in Pakistan by inappropriate Government meddling in the marketplace.
The first article talked about the rising price of meat coupled with a dwindling supply. The response of the government was to attack meat vendors who sold their products above an arbitrary level set by the government…even if they had to buy it from the wholesalers at above that price! Sales to Afghanistan were blamed for the reduction of supply in Pakistan.
The second article spoke of the fights breaking out among the four provinces regarding the restrictions Punjab is placing on sale of wheat outside its borders. The government doesn’t want to allow private traders to sell directly, but it wants to purchase the grain for shipment to government granaries. The provincial attempt to control prices has reduced supply and led to price spikes in the other provinces.
In both cases, the government makes two erroneous assumptions. First, the government arrogates to itself the ownership of the products created by entrepreneurs: cattle and wheat. In neither case (with minor exceptions) has the government itself actually created these products. Second, the government assumes that it knows better than the public what the ‘fair’ price for these products should be.
No one would ever argue that the market mechanism in Pakistan is open and honest. There is serious collusion that goes on everyday among the large commercial operators. However, price controls is exactly the wrong medicine for the disease that afflicts Pakistani consumers who are seeking lower prices for their necessities.
By instituting caps on prices and constraints on internal trade, the government sends a clear warning to producers that it will do whatever it can to prevent them from making a legitimate profit. This reduces any interest a producer might have to invest capital in order to increase his production in order to meet an expanding market. It also increases the games played by both producer and regulator to make profits by evading the rules. Thus, the consumers in Pakistan are forced to face the economic hardships created by the government’s efforts to ‘help’ them.
Of course, most observers of governance in Pakistan know full well that government price controls have little to do with aiding the consumer. They have everything to do with power, authority and rent seeking behavior of the politicians and bureaucracy.
If sales of meat and wheat to small markets like Afghanistan and NWFP cause the governments of Pakistan so much consternation, what on earth are they going to do once border trade with India becomes legitimate?
[The story copied below sounds like something straight out of Jonathan Gullible! Can you imagine people claiming that 'illegal exports' of meat must be stopped or 500,000 butchers and their families will starve from lack of work. Or forcing shopkeepers to sell meat at prices lower than they purchased it. Doesn't anyone think that if more animals can be sold then more animals will be raised and more people will make money?
I hope you can take up this issue in your newsletter.
Regards,
Paul Lundberg]
MEAT-LOVING PAKISTANIS SUFFER AS EXPORTS FLOURISH
Ahmad Naeem Khan, OneWorld South Asia
LAHORE, Apr 16 (OneWorld) - The prices of Pakistanis' staple food, red meat, have soared in the past few months thanks to a liberal export policy and the unchecked smuggling of animals to neighboring countries, with butchers warning that if the situation continues, half a million of them would be left jobless.
An official of the livestock department reported an acute shortage and sharp increase in the prices of mutton and beef in the southern city of Karachi, eastern city of Lahore, central city of Faisalabad and Rawalpindi in the north.
In Lahore, exporters have begun purchasing 2,000 animals a day, eating into the daily domestic demand of 6,000 animals, the official added. A market survey shows that mutton prices increased from US $2.8 to $3.9 in the retail market.
The situation worsened after the economic coordination committee of the cabinet removed livestock from the negative list under the Afghan Transit Trade Agreement in February and allowed the continuation of livestock exports to Afghanistan, despite an acute shortage in the local market.
According to official statistics, over 300,000 cattle are slaughtered daily in Pakistan.
Livestock expert Zafar Hussain alleges that officials who are supposed to ensure that export contractual clauses are not violated often look the other way, enabling a large amount of meat to be surreptitiously transported out of Pakistan.
Local butchers also blame the lucrative meat exports to Arab states for the price hike.
Mutton and beef prices began rising in 2001, when Saudi Arabia, the United Arab Emirates (UAE) and Jordan lifted a ban on Pakistani meat imports, imposed after reports that the contagious cattle disease rinderpest had spread in Pakistan.
The Gulf states revoked the ban on the condition that exporters would establish livestock farms to meet their demands. But the livestock department official accuses exporters of ignoring the clause and exporting meat from slaughterhouses.
Meat is sent to Saudi Arabia, UAE, Oman, Bahrain, Qatar and Kuwait in the Middle East and Malaysia in the Far East. Pakistan exports around 40,000 live animals and 2.83 million kilograms of meat to the Gulf and meat worth $30 million to Malaysia per month.
Claims the president of the Jamiatul Quresh Meat Welfare Association Khursheed Qureshi, Pakistan faces a meat shortage because hundreds of thousands of animals are smuggled to Afghanistan daily through the North West Frontier Province and thousands through the southwestern province of Balochistan.
"There is no chance of a reduction in meat prices unless illegal exports are halted," Qureshi maintains.
He estimates the illegal exports business has forced 45 percent of butchers to close their shops. He warns that if the situation continues, around half a million meatsellers will be left without jobs and their families might have to starve.
A butcher from Lahore, Muhammad Liaquat, explains that meat prices shot up because exporters started paying animal owners almost 50 percent more than the retail prices fixed for the local market.
Instead of targeting exporters or slaughterhouses to curb skyrocketing prices, city authorities swooped down on shopkeepers who were selling meat at inflated rates. Asks Liaquat, "How could they sell mutton at a lower price than they paid for it?"
Minister for Food, Agriculture and Livestock Sardar Yar Muhammad Rind reveals that a committee was constituted to regulate the exports of livestock after the government received several complaints about the violation of export rules.
The NWFP government also constituted a committee to chalk out ways to curb the smuggling of cattle to Afghanistan. The committee will submit its recommendations to the cabinet for legislation within a month.
According to the State Bank of Pakistan, earnings from animals and animal products in February were $12.89, against $11.98 million in February 2003. In the first six months of the current fiscal year July 2003 to February 2004 export earnings from live animals and animals products were $132.8 million, compared to $111.34 million in the same period last year.
Says Professor Dr Talat Naseer Pasha, dean of the faculty of animal production and technology of the University of Veterinary and Animal Sciences, "Provincial meat development authorities should improve the quality of products and identify future development strategies to meet local demands, besides exports."
PAKISTANI PROVINCES LOCK HORNS OVER WHEAT
Ahmad Naeem Khan, OneWorld South Asia
LAHORE, Apr 28 (OneWorld) - Thousands of mill owners and consumers in Pakistan are protesting a move by the government of the eastern province of Punjab to bar wheat trade in some districts, severely impacting supplies of the cereal in the country's three other provinces.
The Punjab government says it stopped traders in 18 out of 34 districts from selling wheat in a bid to prevent hoarding and ensure prices were not inflated, but the move has angered officials of Balochistan, the North West Frontier Province (NWFP) and Sindh. The government imposed a similar ban last year but lifted it after protests from the other provinces.
Punjab Food Secretary Shahid Hassan Raja explains, "The other provinces should support Punjab's decision because it is in their best interests. Otherwise, they will have to buy wheat for US $206.9 to US $241 per metric ton, but now the Punjab government will be able to provide them wheat for around $151 per metric ton."
The secretaries of the four provinces met in the Pakistani capital Islamabad Monday to resolve the crisis. The Punjab government has promised to provide wheat to the other provinces according to their quota, but they are not satisfied and want the ban completely removed. Authorities will now convene a ministerial level meet as soon as possible to address the problem.
Amid growing resentment against the government move, the Pakistan Flour Mills Association Monday closed down 80 flour mills in the southern province of Sindh to protest the ban. It also threatened to call a countrywide strike.
Vice chairman of the association Malik Naeem complains that the ban has resulted in a sharp increase in prices. "It is simply impossible for mill owners to provide flour at the rates fixed by the Sindh Food Department," he snaps.
The Punjab government imposed the ban last week following the start of the harvest season, during which the province is expected to produce 16 million tons of wheat against a consumption requirement of 12 million tons. Punjab accounts for most of Pakistan's annual wheat needs of 20 (million) tons.
Accusing the Punjab government of creating a crisis for the other provinces, the Mutttahida Majlis-e-Amal (MMA) government in the North West Frontier Province (NWFP) warns that the move will "sow hatred" among the provinces.
The NWFP needs two million tons of wheat from Punjab annually as its own annual production totals a million tons.
The NWFP Minister for Food Fazl-e-Rabbani accuses the Punjab government of violating the constitution by imposing the ban. The move will lead to the closure of around 160 flour mills in the NWFP, cautions Rabbani. He warns that the NWFP government will rally political parties, social groups and trade organizations to take on the Punjab government if it refuses to yield.
Punjab Food Minister Chaudhry Muhammad Iqbal says Rabbani's criticism of the ban is totally uncalled for and unjustified, especially since Punjab has always met the food requirements of the three other provinces.
Iqbal claims there is no ban on transporting wheat, and that the state-run Pakistan Storage and Supply Corporation (PASSCO) has been allowed to purchase the grain for the other three provinces.
An official of PASSCO discloses that the inter-provincial wheat committee of the federal government has set a target of 5.7 million tons for wheat procurement by PASSCO and food departments in Punjab, Sindh and Balochistan.
A delegation of flour mill owners from NWFP and Islamabad met Federal Minister for Food and Agriculture Sardar Yar Mohammad Rind in Islamabad and sought his help. He has asked the Punjab government to immediately lift the ban, which he says was imposed without consulting his ministry. He also accuses Punjab of fixing an inflated procurement target for the province.
Liaqat Ali Khan, chairman of the Punjab chapter of the Pakistan Flour Mills Association, warns of a crisis in Islamabad and Sindh if Punjab does not lift the restriction. He accuses the government of betraying flour mill owners, who he claims took loans to buy wheat at the government’s request.
Khan says the Punjab government is transporting wheat to government centers instead of flour mills with the help of the police, because of which wheat is not available at the support price. He adds that because of the government's "bad policies," farmers are not selling wheat to flour mills and stockpiling it in the hope that prices will rise.
The government provides wheat to flour mills, which are allowed to keep wheat stock equal to their weekly grinding capacity.
FREE TRADE IS CRICKET
By Khalil Ahmad
[Wall Street Journal Asia April 15, 2004
Original URL: http://online.wsj.com/article/0,,SB108196883003282689,00.html]
It has been 15 years since an Indian cricket team completed a tour in Pakistan. But a new spirit of reconciliation has gripped the two countries recently. The renewal of this sporting fixture is the first tangible triumph of talks between leaders of the two countries that began at January's South Asia summit in Islamabad. Make no mistake: for the people of these cricket crazy countries it is a gesture of the utmost political and diplomatic significance.
It's possible that after more than half a century of animosity, India and Pakistan could be on the path to lasting friendship. That path is strewn with obstacles, many of them of Kashmiri origin, but just as the cricket matches are uniting the people, so free trade, a concept also espoused at January's summit, could prove a further catalyst to lasting peace and prosperity.
Both India and Pakistan have long histories of economic introspection and protectionism. Over the past decade, India has begun to throw off the shackles of its socialist economic model, abandoning its discredited drive for self-sufficiency and embracing globalization, privatization and trade liberalization. The resulting economic boom has provided a burgeoning middle class with unprecedented prosperity. Pakistan's government would do well to learn from its neighbor's success.
India-Pakistan trade relations have been compounded both by the tendency of each nation to protectionism. Protectionism, for a long time the economic mantra, is cemented and further justified by enmity. Trade between the two neighbors is restricted to a limited number of items.
But this situation has been economically destructive and has completely failed. Indian goods supposedly banned by Pakistan are on sale openly in every corner of the country. Smugglers provide Pakistanis with everything, from items such as tea, betel nut, alcohol and cement, to the staples of industrial and commercial activity like iron ore, chemicals, machinery and agricultural products. Conversely, Pakistani food products and synthetic fibers can be bought in India.
Inefficient local producers, who are not subjected to the rigors of the competitive market, gain from the embargoes, as do smugglers and black marketeers. Corrupt law-enforcers can also access a stream of revenue from bribery and racketeering. The interests of a minority are served under the banner of localism, patriotism and nationalism, while the majority suffers.
In a recent article on India-Pakistan trade, Shahid Kardar, a leading Pakistani economist and former finance minister of Punjab province, put it this way: "Should we continue to protect inefficient industry at the consumer's cost? Is there any justification for continuing to punish him if industry in Pakistan somehow just does not (or refuses to) grow strong enough to survive competitive pressures?"
In trade, producers and consumers behave like the citizens of the same country. To them, the whole world is a market without borders. Producers will sell where they get the maximum price for goods; consumers will buy from where they find the lowest price. Tariffs and embargoes amount to government interference in the free flow of goods -- to be circumvented where feasible. Illegal trade between India and Pakistan is estimated to be worth $2 billion, much of which is routed through countries like Dubai and Afghanistan.
What Kardar, the son of the famous Pakistani cricket captain Abdul Hafeez Kardar and nephew of equally famous wicket-keeper and batsman Imtiaz Ahmed, is talking about here is good cricket -- a game played on a level playing field with agreed rules; a game in which the only way to improve is to compete.
The same goes for trade. Competing with rivals brings quality, low prices and technological advancement. Free trade with India won't hurt anybody in Pakistan. It will benefit Pakistan's consumers and sharpen the skills of Pakistani entrepreneurs. And it will mitigate old enmities and help along better relations between the two nations. [Courtesy: Wall Street Journal Asia]
[http://asinstitute.org/page.php?instructions=page&page_id=321&nav_id=134]
Letters from the Press
JUDICIARY!?
[Murad Jazy, Rawalpindi]
As we know that moral laws are above civil laws, and it is the civil law that is for the people and not the people as its fodder. And we also know that judiciary is supposed to be a haven that protects a state as well as its people, against any misuse of power by any existing government or by any powerful individual or group, etc.
Yet it is an irony of a static condition in which they are that a society of approximately 145 million people has to depend on judiciary that can’t fully protect or enforce its own rights. In fact no state can survive for a longer period without its judiciary being supreme.
But there, in a country, judiciary has been in shackles since its inception. Instead of its supremacy over any successive government, judiciary has been seen to be under aegis of all successive governments.
What an incredulous situation they are in! One’s hearts bleeds due to such adverse circumstances as a country as well as its society is in. [The News]
CARS AND EXPECTATION
[Mohsin Qazilbash, Peshawar]
In order to meet a shortfall of nearly twenty thousand cars the Government of Pakistan had decided to import re-conditioned cars by June 2004. But this decision has been sabotaged by our finance minister.
Will our ‘light weight’ prime minister whose decisions are, always multiplied by zero, by the powers to be, or the so-called NAB which is always busy witch hunting opposition politicians and poor civil servants, will probe into the matter immediately, restore the decision of importing re-conditioned cars and proceed against the high and mighty. [The News]
IMPORT OF RECONDITIONED CARS
[Saeed Khan, London]
We Overseas Pakistanis are disappointed to know that the government has decided not to allow import of reconditioned cars, so our rich finance minister and rich commerce minister have finally been influenced by the big car assemblers who according to car dealers’ statement published in today’s Jang are holding rupees 50 billion as advance for car deliveries after 6 to 12 months. I was surprised to read the statement of a bureaucrat turned entrepreneur probably chairman of Toyota assemblers against government’s willingness to import reconditioned cars. The gentleman should first put his boots in previous job of a government officer and tell us if he could afford a car in present condition if he was still a government servant.
We Overseas Pakistanis who have contributed to country’s fifty percent reserves would have expected the government to not only allow import of reconditioned cars but also at 50% duty less than allowed to others.
[The News]
TEXTBOOKS DEBATE
[Editorial The News]
For once, Pakistan is witnessing a burning debate on religious and ideological contents of textbooks used in public sector schools and whether they are inculcating intolerance, religious bigotry and gender biases in the country. Although a causal relationship between textbook contents and myriad issues facing society is difficult to establish, the ideological and religious focus of education in a particular socio-economic and geo-political context does create identities that suit the interest of the state at a particular point of time. The question, however, remains whether the country still requires creation of similar identities as it did during the Afghan Jihad and subsequent state-driven Islamisation of polity, and whether this identity should come at the expense of demonising other identities.
The debate has its roots in a report released sometime ago by a non-governmental organisation which concluded that Pakistani children are being taught to hate peoples of other faiths and nations, accept bias against women and minorities, glorify violence. What they are not being taught are values of mutual respect, equality, justice and peace that can contribute towards a just, peaceful and democratic Pakistan. The report was strong enough to have sent ripples among the conservative guardians of the state, as it questioned the basics. Extreme views are being put forth, ranging from suggestions for the total revision of the textbooks to make them value-free to the need for keeping such contents, as they are necessary to maintain the country’s Islamic identity.
In this argument between the modernists and traditionalists, the role of the government becomes central in harmonising the extreme positions. But this will require the government to stay neutral and treat the viewpoints of various lobbies on merit, considering the importance of the issue that relates to the shaping of young minds and eventually national identity. But unfortunately, the government is already taking sides, caught at a wrong foot between its declared stand of making Pakistan a moderate, progressive state and its domestic support base largely composed of rightwing, conservative lobbies. Political expediency once again seems to be dictating the official priorities.
What is, however, needed is an open minded, broad based review of the textbooks contents as well as the education policy, which places a heavy emphasis on ideological aspects of learning. According to the policy’s framers, Pakistan is not a country that was founded on its territorial, linguistic, ethnic or racial identity, and the only justification for its existence is its total commitment to Islam as its identity. Such a focus has led to exclusion of themes and subjects that are in conformity with the image and identity that Pakistan now wants to create. Instead of taking sides at the outset, the government must try to bring together disparate groups and facilitate a dialogue between them in order to transform the education system in line with the future vision.
Sadly this debate has seriously affected the students who are without books and it seems it will be so for a long time till new expurgated books are printed. Why this matter was not settled earlier needs to be explained specially at a time when the government is determined to totally eliminate illiteracy.
THE EDUCATIONAL DILEMMA
[Samreen Adil, Karachi]
In recent days, the report by an NGO, Sustainable Development Policy Institute (SDPI), about educational structure and possible reforms has triggered off debate in academic circles. It throws light on the prejudices shown in our textbooks towards minorities, anti-Hindu sentiments and undue emphasis on jihad and makes recommendations to reform them.
There are some among us who oppose such changes, thinking it to be an imperialist plot to rob our children of their identity and heritage. However, the authors of the report and those who favor its recommendations, call these allegations baseless.
Amidst all these controversies the most neglected group is the one which is the most affected, that is, the students. I, as a student, wish to write against the two extremes.
There's no doubt that our students are exposed to a very biased approach towards events of history, but every country has a certain ideology. Distortions can be of three types. One, an event is wholly omitted; second, an event is incompletely depicted and, third, an event is written from a certain perspective. In our textbooks the mutilations mostly fall under the third category.
It is true our books tend to create anti-Hindu emotions. I quote from our Pakistan Studies book about the impact the advent of Islam had on the subcontinent's art and literature:
"The people rejected the outdated and absurd customs of Hindu society." This sentence clearly maligns and ridicules the Hindus. Our books do not refer to the Hindu contribution to the development of mathematics/astronomy in the history of Indian region.
The most contorted event in our textbooks is about the creation of Bangladesh. In the book mentioned above, Bangladesh's creation is mainly attributed to Mujib's separatist design and Indian exploitation of our internal rifts.
But the fact remains that it was the economic disparity between the two wings, the bureaucracy's role, and lack of fair representation of the Bengalis in the administration that led to the creation of Bangladesh.
Similarly, Gen Zia is portrayed as a true Muslim and his efforts to Islamize the country as "honest". But there is no discussion on how he made anti-women laws and crushed civil liberties and exploited the name of Islam to cement his grip on power. It was he who deformed the entire history and effected a major change in the textbooks.
If we glance at the books of the Sindh Textbook Board, they give an altogether different picture. There are no sections available on the creation of Bangladesh or on successive governments in the post-independence area.
As far as Islamic ideology and the two-nation theory are concerned, a subject also discussed in the report, we all face an educational quagmire as this issue is sensitive and even after 56 years of independence we have not yet decided whether nations are made by an ideology or on the basis of land. If we regard nations to be made on the basis of ideology, then we should, in principle, accommodate all Muslims in India as Israel offers its territory to all Jews.
The report has sparked much controversy about jihad. I see no reason why there should not be a lesson or two on jihad, which has a much wider meaning than just taking up arms. However, it's true that equal or more emphasis should be placed on Islam's ethical aspects.
Another dimension of our curriculum is to degrade women and confine them to stereo-typed roles. So, our curricula should be revised to help us achieve the following targets:
- To make studies practical to help students in their professional lives.
- To help evolve students into responsible and contributing citizens.
- To help students realize and fully develop their potential. [Dawn]
BLUNDERS IN BOOK
[Simmi Gul, Karachi]
I am a Pakistan studies teacher, and presently teaching class X.
About a week ago, the new edition of the book "Pakistan studies" by Punjab text board came into my hands. At first glance it appeared like a "Key Version" but in fact it turned out to be the latest version of the book.
I am one of those who like to move with the pace of line, but the change should be positive; however after a thorough study of the very first chapter of the book I came across many errors, which dismayed me.
The very first paragraph of the chapter holds an example which I found was irrelevant and I am sure that could have been more thoughtful than saying "Girls are more emotional than boys."
Another example used to explain ideology seemed very silly and childish to me. It says that Bengal was included in Pakistan "while Afghanistan which was situated next to Pakistan was not included in it." I mean could we have included Afghanistan?
On page 15, when an attempt is made to make students understand the Beliefs of a Muslim, it is mentioned that "future" is a belief of a Muslim. I felt that it should be replaced by "day of Judgment" or the word "Hereafter."
The book comes to me as a surprise, I have not yet gone through the whole book but the first impression is the last one.
I would request the concerned authorities to take some action. [The News]
HEAVY LOAD
[Shahroz Shamim, Rawalpindi]
I am a student of Class VII (English medium). I am studying so many subjects together. These are English, mathematics, Urdu, geography, history, computer, Islamiat, Arabic, and science. There are one to three books for each subject. The total comes to 14. I have to keep notebooks for each subject, science practical notebooks, rough notebooks and one for the homework.
All that along with writing material, food box and water bottle etc., make a big load, difficult to carry. I request my dear president and the education minister to please reduce the subjects. May you be happy and live long! [The News]
MEDIUM-INCOME COUNTRY
[A. Rehman, Hyderabad]
The ministry of finance and the Central Board of Revenue have spent thousands of dollars on public relationing for Finance Minister Shaukat Aziz, who has been praising his president's economic policies because of which the per capita income for the current fiscal year will be $600, making Pakistan a medium-income country from a low-income one.
How much of this is the truth? Must all governments in Pakistan fool all the people all of the time? Sixty-five per cent of our people live in villages. Does Mr Aziz want us to believe that the per capita income of 65 per cent people is now $600? What hogwash! How come the Human Rights Commission of Pakistan, in its survey, states that the condition of our children is the worst in South Asia, with eight million children facing malnutrition and 3.5 million children working are indented child laborers?
The State Bank's economic survey states that the "incidence of inflation falls disproportionately on the most vulnerable income groups, who are least prepared to absorb the burden impoverishing more than a third of Pakistan's 145 million people."
Mr Aziz, what about unemployment? Again, the State Bank survey states that unemployment stood at 7.8 per cent in 2003 compared to three per cent in 2002. It has more than doubled from the 3.1 per cent recorded in 1990. What Mr Aziz's policy has done is to make the rich richer and the poor poorer.
The banks in Pakistan have made a profit of Rs48.6 billion at the expense of depositors who are getting a negative return. The auto, cement and sugar mafia has created artificial shortages and price increases with the help of banks, which are hand in glove with them by giving them credit at low interest rates.
All avenues for investment by the middle class have been sealed. The profits on the national savings schemes have been slashed, and the taxation is so high that it is not worth investing.
While Mr Aziz has so generously given $12.65 billion foreign exchange reserves to US banks at two per cent and has floated euro bonds at 6.75 per cent interest, the middle class of Pakistan have no avenue except stocks and shares.
Unfortunately the share market is manipulated by the stock market mafia, who will gobble up the middle class through their ruthless manipulative speculation tactics. It is ironic that Mr Aziz is exhorting Pakistanis in the country and abroad to invest in Pakistan.
It is time for people to wake up as they are being led to economic slaughter and the time will come when even their plastic cards won't keep them alive. [Dawn]
TAX FRIENDLY CULTURE
[Dr M.Tariq Mirza, Jhelum]
The Income Tax System in our country is a strange balance between the unwilling taxpayer trying to hide his actual income and the ferocious income tax officers trying to catch weak points with pressure tactics to gain personally first and later under Circumstances compelled to get more deposit for the Government. This system is changed rarely as some honest taxpayers or the income tax authority both remain under high tension to do their job according to their true soul voice. It is strange to note that there are only 1.2 million taxpayers in whole of the country and only these may have to undergo detailed scrutiny and none of those, who are enjoying immunity from taxes and having greater wealth.
A great deal needs to be done to restore faith in giving more taxes, which can easily be achieved in friendlier and honest atmosphere rather than by sending strange notices. The delay in deciding matters for years results in more distrust and pressures than moving with time. It also seems illogical for referring the reassessment of a case to the same officers and without definite guidelines and then there is no punishment for those who do not abide and make more mistakes in enhancements.
To restore public interest in income tax, this department should also promote ideas for increasing income of NTN cardholders, so that if they increase income, they could pay more taxes and also incentives for good taxpayers and with proper protocol. The system can improve certainly with more transparency and training in tax culture and better friendly atmosphere. [The News]
NEGLECTED CIVIC PROBLEMS
[Mohammad Farooq Kunda, Karachi]
The Karachi government has focused its attention on beautifying roundabouts and is spending millions of rupees on them while many civic problems of the people are neglected, such as the shortage of water, frequent power breakdowns, broken roads and overflowing gutters. I request the city nazim to first resolve the civic problems of the people. [Dawn]
FreePakistan News-Briefs
GLOBAL COMPETITIVENESS REPORT: PAKISTAN RANKS 72
The Global Competitiveness Report, published by the World Economic Forum annually since 1979, is the leading cross-country comparison of data and information relating to economic competitiveness and growth. According to the Global Competitiveness Report 2003-2004, the latest and most comprehensive edition providing an authoritative and thorough assessment of the comparative strengths and weaknesses of 102 industrialized and emerging economies, in Growth Competitiveness, Pakistan ranks 73, and in Business Competitiveness, 72. For details, please visit: http://www.weforum.org
CAR IMPORT BAN UNLIKELY TO BE LIFTED
A source close to the government’s committee on the auto sector has revealed that the government is highly unlikely to lift the ban on the import of reconditioned cars and will instead use the opportunity to exert pressure on local auto assemblers to urgently even out the demand and supply gap. “The chapter has been closed on allowing the import of reconditioned cars,” the source said.
IMPORT DUTY ON NEW CARS BE REDUCED
Business community of provincial metropolis, Lahore, has demanded of the government to reduce duty on the import of new cars. The President of Lahore Chamber of Commerce and Industry said that import of reconditioned cars would impede the development of car industry in the country hence it should be allowed with the gradual decrease in import duty. He said that the import would help fill the demand and supply gap thus creating a competitiveness and help decrease the prices of the vehicles in the domestic market.
PAKISTAN LIKELY TO FACE POWER SHORTAGE
The Chairman of Water and Power Development Authority (WAPDA) has said that Pakistan is likely to face power shortage after 2007, and immediate steps are required to meet the growing needs of electricity in future. The ongoing WAPDA projects have a capacity to generate only 450 megawatt, while in order to meet the ever-growing requirements of electricity, big projects are needed.
INCREASED PRIVATE SECTOR INVOLVEMENT STRESSED
The Federal Privatization and Investment Minister, Dr. Abdul Hafeez Sheikh has said that increased private sector participation in the areas of water supply, waste management and sanitation and urban transport was necessary to promote economic growth and reduce poverty. He said that public sector had been the main provider of basic infrastructure in Pakistan; however, paucity of resources limits the government’s capacity to meet growing needs of the country.
TWO STATE-RUN UNITS TO GO PUBLIC IN TWO MONTHS
Pakistan’s stock market will see two more state-run entities going public apart from the secondary offering of the Pakistan International Airlines by the end of the current fiscal year. Dr. Abdul Hafeez Pasha, Federal Minister for Privatization and Investment has said that the government would offload shares of at least three state-run entities through the local bourses till June 30. The expected initial public offerings include Pakistan Petroleum Limited and Kot Addu Power Company.
CISPs IN PRIVATE SECTOR SHORTLY
The State Bank of Pakistan is going to allow establishment of Credit Information Service Providers under private sector. The Credit Information Bureaus of the private sector would be allowed to collect and distribute the credit information reports to all banking companies of the country.
GOVERNMENT HAS NO BUSINESS TO RUN BUSINESSES
Tariq Kirmani, Managing Director of Pakistan State Oil, while speaking to a select gathering of management professionals and chief executive officers at a convention of the Management Association of Pakistan in Karachi, said that government’s privatization policy was reflective of global trends where governments are fast realizing that they have no business to run businesses; rather, their job is to provide a conducive environment for economic activities. “All this should be directed towards safeguarding consumers’ interests,” he said. He said privatization basically aims at improving in an organization while it was also important for fiscal correction and to curb political interference.
50 YEAR HOUSING PLAN TO BE PREPARED
The Punjab Housing and Urban Development minister has said that 50 years master plan will be prepared to fulfill the housing needs of the province.
MOBILINK DONATES RS.100, 000
Mobilink Pakistan, one of the biggest private cellular phone companies operating in the country, has donated Rs.100, 000 to the Radiology Department of Pakistan Institute of Medical Sciences, Islamabad. The donation would be used for setting up a computer laboratory for the postgraduate students, trainees in the department for specialization.
UNEMPLOYMENT NOT SLIDING IN PAKISTAN
Asian Development Bank has said that despite the achievement of economic stability by government of Pakistan, the unemployment rate has not plunged.
IMF WARNS TO WATCH OUT FOR INFLATION
The International Monetary Fund estimates that inflation may touch 5 % mark next fiscal year and has warned the authorities to tighten up the monetary policy if prices pressures continue.
60, 000 POWER LOOMS CLOSED
The Vice President of Pakistan Power Looms Association has said that around 60, 000 power looms have closed down their operations since 1998 in the wake of unabated smuggling, discriminatory tariff structure and under-invoicing. In 1998, some 90, 000 power looms were operating in the country which have shrunk to 30, 000 in a short span of five years. He said that 30, 000 power looms were functioning in Punjab and 60, 000 in Sindh, and now of those only 10, 000 were operating in Punjab and 20, 000 in Sindh.
CBR DIRECTED TO ISSUE COMPLAINANT’S REFUND
The Federal Tax Ombudsman has directed the Central Board of Revenue to properly work out a complainant’s refund and issue it without further delay.
FTO DIRECTS CBR TO VACATE ST ORDER
The Federal Tax Ombudsman terming the action of taxation officials has directed that order of the Collector Sales Tax should be vacated. The FTO further stated that the case should be sent to the competent authority for adjudication under the law.
TAX COLLECTION LIKELY TO SURPASS TARGET
According to an official report on the state of the economy during 2003-04, the booming industrial and trade sectors have helped the Central Board of Revenue to surpass it tax collection target by Rs.10.4 billion during the first nine months of the year.
CALL FOR DISCLOSING PROPOSED TAX AMENDMENTS
Dr. Ikramul Haq, a leading tax professional and author of books on revenue and taxation, while speaking as the chief guest at the conclusion of the Pre-Budget Seminar organized by the Karachi Income Tax Bar Association, said, “Throughout the world, whenever there are amendments being made in the taxation laws, they are made public six months prior to the presentation of the budget so that there could be a discussion among the masses as well as in the parliament.” Dr. Ikram said unlike the normal practice throughout the world, the situation in Pakistan was pathetic. The government makes overnight amendments in the Income Tax Ordinance without informing the tax payers and then wastes time in removing the lacunae created due to the amendments. He demanded government should disclose the proposed amendments in the Income Tax Ordinance, 2001 six months prior to the presentation of the forthcoming federal budget.
REVIEW OF HOUSE RENT LAWS, TAXES ORDERED
The President General Pervez Musharraf has asked for the review of rent control laws, tax and fee structures, along with streamlining of procedures to provide an impetus to the construction and housing industry in the country.
CHANGE IN TAX SYSTEM URGED
The Founders at the Lahore Chamber of Commerce and Industry have criticized the existing taxation system of the country claiming that it is discouraging documentation and is eliminating the corporate culture from the country.
AN AD: PAKISTAN IS LOSING OUT ON TOURISM DOLLARS
An ad in the newspapers reads as: The hotel industry generates employment opportunities and thus alleviates poverty. It can be a significant contributor to the national economy by earning millions in foreign exchange through tourism. Due to higher taxes on the hotel industry, this sector is on a decline, thus discouraging tourism. We are losing out on the international tourism business, as tourists are heading towards our neighboring countries. Now, steps should be taken by the Government to attract tourism by promoting the hotel industry, to further boost Pakistan’s economy. Support and Promote Tourism through Liberal Policy. Reduce Sales Tax (Central); Abolish Bed Tax (Provincial); Abolish Entertainment Tax (Provincial); Grant Industrial Status Category “A” (Central). Let’s make tourism affordable for all. Pakistan Hotels Association.
WHEAT MOVEMENT BAN TO STAY
The Chief Minister Punjab has said that unless the wheat procurement target fixed at 3.5 million ton is achieved, the ban on wheat movement will not be lifted at any cost.
ADB RESENTS BAN ON WHEAT MOVEMENT
Asian Development Bank has warned Islamabad that Punjab’s decision to ban inter-provincial and inter-district movement of wheat could jeopardize $350 million second agricultural reforms program singed between the two sides in 2001.
PARLIAMENTARIANS RECEIVING A HANDSOME MONTHLY PAY
As a result of the raise in pay and allowances of the Parliamentarians by the government last November, a Parliamentarian is paid a gross monthly income of Rs.17, 600, according to the following break-up: Rs.5000 as salary, Rs.3000 as sumptuary allowance, Rs.5000 as office maintenance allowance and Rs.4600 as telephone allowance. In addition, an MP is also allowed a daily allowance of Rs.800, housing allowance of Rs.2000 per day and conveyance allowance of Rs.750 per day during the session of the Parliament. On average, total emoluments, including salary and allowances of a member of National Assembly or Senate, is about Rs.24, 000 per month.
PUBLISHERS MAY OWN TV CHANNELS IN PAKISTAN
The Federal Minister for Information has said that government had taken a policy decision that print media owners may be allowed to operate the electronic media in Pakistan.
CORRUPTION IS A COMPLEX ISSUE IN PAKISTAN
Foreign experts have termed corruption in Pakistan as a complex issue and promised help to eradicate the menace with an aim to boost the economy during a three-day International Conference on the United Nations Convention Against Corruption in Islamabad.
12, 000 COMPLAINTS AGAINST PTCL AND WAPDA
The Federal Ombudsman in his recent meeting with the President General Pervez Musharraf apprised him that WAPDA (a government entity) and PTCL (another government entity) were the two main organizations against which about 12, 000 people filed complaints in Ombudsman’s office during 2003. The others government departments against whom big numbers of complaints were filed are: SNGPL-SSGPL, Banks, AIOU, SLIC, and Estate Office.
LHC: MAKE POLICY FOR JOBS ON MERIT
The Lahore High Court has ordered the Punjab government to form of a policy for eliminating interference of parliamentarians and nazims (locally elected administrators) in appointments in government departments.
COPYRIGHT LAWS TO BENEFIT LOCAL SOFTWARE DEVELOPERS
The Federal Minister for IT and Telecom has said that strict enforcement of copyright laws would encourage the local software developers, because without it there were almost no incentives for the software developers to develop new software.
ADB TECHNICAL ASSISTANCE GRANT FOR POVERTY REDUCTION
The Asian Development Bank has approved a technical assistance grant of $400, 000 to the Pakistan government to research the determinants and drivers of poverty reduction, and ADB’s contribution in rural Pakistan.
PAKISTAN, SINGAPORE TO SIGN FREE TRADE PACT
Pakistan and Singapore have agreed to sign Free Trade Agreement to increase bilateral trade starting formal talks by the end of this year.
BoI TO PROPOSE BAN ON CEMENT EXPORT
Board of Investment is weighing the prospects of preparing a summary aimed at banning the export of cement so that its local availability could be ensured.
PUNJAB PROVINCE TOPS THE CHART IN HUDOOD CASES
According to the Lahore High Court annual report for 2003 released on April 24, Punjab province in general and Lahore in particular figures top in the institution of Hudood cases in sessions courts with murder cases second in line followed by narcotics.
FINE FOR USING PHONE WHILE DRIVING
People will not be allowed to use their cellular phones while driving their vehicles on motorways and highways across the country from May 1, 2004. Those violating the rules on motorways will be fined Rs.500 and on highways Rs.300.
OJHRI BLAST PROBE REPORT TO REMAIN SECRET
The government has informed the Senate that “national interests” do not permit to make public reports of two high level inquiries conducted into the incident of Ojhri ammunition depot blasts in 1988 in which many lost their lives.
INDIAN MUTUAL FUND MANAGERS WILLING TO INVEST IN PAKISTAN
Indian mutual fund managers have shown interest for investing in Pakistan and Indian Bajaj Capital Management has shown intention to create a distributor company in Pakistan.
PAKISTAN OFFERS INDIA TROOP-CUT TALKS
Pakistan has offered India to follow suit and consider reduction in troops to improve regional situation. Pakistan Military spokesman and Director General ISPR has said, “The decision to cut the tail of the army by 50, 000 heads was Pakistan’s unilateral decision but the idea of reduction in troops could be discussed with New Delhi if India agrees for a mutual agreement in this regard.”
200 CINEMAS READY TO SHOW INDIAN FILMS IN PAKISTAN
The Chairman of Punjab and NWFP Film Exhibitors Association Action Committee has revealed that owing to the non-availability of good films and Pakistan government’s indecision on allowing the exhibition of Indian movies, the owners of 270 cinemas in Punjab and NWFP have decided to close down their business in about 15 days if the government did not listen to their ‘distress calls.’
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Edited and prepared by
Khalil Ahmad
[No opinion expressed here should necessarily be taken as reflecting the view of FreePakistan Newsletter.]
