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perception From close quarters A business trip to Israel ends up being a myth-shattering experience in many ways By Toaha Qureshi When I stepped outside the Easy Jet on Tel Aviv International Airport, I felt chills travelling down my spine. Partly, it was due to the baggage of history being a British Pakistani entering in Israel, perhaps the most hated place on earth in Pakistan, its ideological twin; and mainly, it was the weather. Tel Aviv was almost bordering zero with strong wind that made it feel even worse where I had left London basking in glorious sunshine that resembled more of spring than fall. The
battle of ideas will go on One down,
more to go The
question of ‘free and fair’ first
person Looking
for gains
perception From close quarters A business trip to Israel ends up being a myth-shattering experience in many ways By Toaha Qureshi When I stepped outside the Easy Jet on Tel Aviv International Airport, I felt chills travelling down my spine. Partly, it was due to the baggage of history being a British Pakistani entering in Israel, perhaps the most hated place on earth in Pakistan, its ideological twin; and mainly, it was the weather. Tel Aviv was almost bordering zero with strong wind that made it feel even worse where I had left London basking in glorious sunshine that resembled more of spring than fall. However, my racing heart started calming down when we entered modern airport building. It all looked business as usual. There were passengers trolling their luggage and scurrying around. Airport staff was amicable and polite. We were showered with smiles which was quite unusual for immigration staff of an international airport. Quite importantly, there were no armed policemen around compared to the British airport we flew from. Gradually, I noticed my group members, mostly senior British Pakistani businessmen, easing up which might sound little horrific being in Israel. Our Trip was comprised of the members of UK Pakistan Chamber of Commerce and Industry and London South End Chamber of Commerce. Our next few days in
Israel were spent on a rollercoaster. We have been travelling, attending
meetings, speaking at receptions, engaging in discussions and waiting for
the most coveted moment of our lives; offering Friday prayers at Al-Aqsa
Mosque, which is one of the three holiest places in Islam. Recalling
someone’s quote that if romance and passion are taken out; only fatigue
is left after a journey. Our passion was visiting Al-Aqsa mosque which
kept us on our toes till we got there on Friday. Having been to Makkah and
Madina so many times, the two holiest cities for the Muslims, presence in
Jerusalem always seemed next to impossible so in a way it was a dream
coming true. Trip to Israel was myths shattering in several ways. I had attended Fordham University’s Future of Business Series on Turkey and Israel relationship at King’s College London in January 2012. Another event was ‘Palestine Memorial Week’ which was organised in the House of Commons that left so many bruises on my soul knowing the scale of Israeli atrocities in ‘Operation Kaslat’. Two things were the end product of these interactions; One, I sensed the irritation of the global community at large on Israel’s blatant violations of human rights and US support of its illegitimate actions and denial of Palestinian enrolment at the United Nations. Second, Israel’s rise as an economic power and a leader in high tech industry was kind of surprise. First time I figured out that the Israel had changed from a ‘parasite state’ to country with huge financial muscle and technological weight to be reckoned with. More myths were broken when we landed there. Israel was not the garrison state what it was branded like in media. No scary atmosphere. No guns totting policemen. No sirens blazing police cars buzzing around which were so common in London. Most surprisingly, Israeli chefs in the Grand Beech Hotel, when they figured out my Pakistani roots, knew how to prepare the big spicy mother of omelettes for a hectic day ahead. I found out that Zionism had a separate existence from Judaism when two orthodox Jews criticised Israeli atrocities on my flight from London to Tel Aviv. I was also kind of shocked when I heard from a senior retired air force officer, ‘what America blundered by creating jihadi industry in Afghanistan and Pakistan; Israelis floundered by supporting Hamas against Al-Fatah’. I met Israeli businessmen who whined about Israel’s isolation in global fraternity due to its Zionist movers and shakers. The biggest of all surprises was around 1,500 Israelis taking to the streets on 11 January to protest what they saw as institutionalized discrimination against Ethiopian immigrants Jews. Members of Israel’s Ethiopian community joined politicians, NGOs and activists outside Parliament in Jerusalem to agitate for the end of racism. The young protestors, some with faces painted half black or white, carried signs reading, “A new generation demands change,” and “I’m black and I’m proud.” This latest demonstration was sparked by reports that Kiryat Malachi landlords refused to rent or sell their properties to Ethiopian Jews. We were invited by the Federation of Israeli Chamber of Commerce and Industry to look into its technologically advanced market economy. Being the 24th largest economy in the world, and ranking 15th among 169 world nations on the UN’s Human Development Index, Israel’s economy also ranks 17th among the world’s most economically developed nations, according to International Institute for Management Development’s World Competitiveness Yearbook rankings. Last year, the Israeli economy was ranked as the world’s most durable economy in the face of crises, and was also ranked first in the rate research and development centre investments. Israeli economy depends on imports of crude oil, grains, raw materials, and military equipment. Cut diamonds, high-technology equipment, and agricultural products are the leading exports. When Israel runs into trade deficits, these are covered by tourism and other service exports, as well as significant foreign investment inflows. Surprisingly, the global financial crisis of 2008-09 spurred a brief recession in Israel, but the country’s economy showed resilience and entered the crisis with solid fundamentals — following years of prudent fiscal policy and a resilient banking sector. Surprisingly, the economy has recovered better than most advanced, comparably sized economies. In 2010, Israel formally acceded to the Organization of Economic Cooperation and Development. Natural gas fields discovered off Israel’s coast during the past two years have brightened Israel’s energy security outlook. The Leviathan field was one of the world’s largest offshore natural gas finds this past decade. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. The government formed committees to address some of the grievances but contrary to populist demand maintained that it would not engage in deficit spending. The country is a world leader in software, telecommunication and semiconductors development. The high concentration of high-tech industries in Israel, which are backed by a strong venture capital industry, gave it the nickname “Silicon Wadi”, which is considered second in importance only to its Californian counterpart. Israel’s dominance in high tech industry including manufacturing of computer processers (Intel), Kindle ebook readers and semiconductors provided it the cutting edge in eavesdropping endeavours as well. Even long standing friends, including United States have been irked with Mossad’s reach in this particular area. American journalist and writer James Bamford has landed lots of accusations in his book, “The Shadow Factory: The Ultra-Secret National Security Agency (NSA) from 9/11 to the Eavesdropping on America”, which came out in the United States in 2008. Bamford, a former producer for the ABC television network, has spent the last 30 years writing about the NSA — one of the most important and least-known intelligence agencies in the United States, but usually in the shadow of the Central Intelligence Agency. Bamford’s main thesis with respect to Israel is that 80 percent of all American telephone transmissions are conducted by means of the Israeli companies’ technology, know-how and accessibility. Thus, Bamford believes, the American intelligence community is exposing itself to the risk that the Israeli companies will access its most secret and sensitive digital information. Bamford does not provide any backing for this thesis; he only points to a circumstantial relationship. The Israeli companies were largely established by graduates of 8200, and, therefore, he says they are connected by their umbilical cords to Israeli intelligence, and their CEOs and boards of directors. As the trip was organised from a business perspective, we missed the chance to visit Palestinian areas, particularly the Gaza Strip. When I contrasted the developed State of Israel with underprivileged areas of Palestinian territory, Israelis claimed that they had handed the control to Palestinian authorities who wanted to keep as it is to showcase their miseries. They also blamed rampant corruption in Palestinian authorities as another source of underdevelopment. However, the construction of the wall to isolate Palestinian areas from Israeli areas does raise questions on an act of raising barriers in the 21st century in which humanity claims to come a long way since demolition of Berlin Wall. I kept roaming Jerusalem in keffiyeh; the traditional Arab headdress fashioned from a square cotton, scarf made popular by Yasser Arafat. Past the Wailing Wall, I saw two fully armed Israeli soldiers in alert position for the first time and stopped there for a memento. The photograph shows the three faces cracking in wide grin with barrels of guns down to the ground; a weird mix of guns and roses. I wonder if the roses might have conquered guns by my next visit to the Holy Land; which is definitely spacious enough to accommodate all the Abrahamic faiths. The
writer is Chairman Forum for International Relations Development — a UK
based think-tank. toahaqureshi@hotmail.com
The
battle of ideas will go on It may be news for the Pakistani youth of today to know that once upon a time the scions of ‘Indian Ashrafia” used to go to Britain for Higher Studies and became Marxists. It is no more so. Progressive Writers Association (Anjman Tarqi Pasand Musanfien) was established by such individuals in 1936 and the great writer, Prem Chand, presided over its first meeting. This was the formal launching of a progressive organization. Progressive Writers Association organised a two-day function on March 3-4 at HRCP’s Dorab Patel Auditorium, Lahore to celebrate the platinum jubilee seminar and the second convention to elect its new office-bearers. PWA Pakistan was banned
in 1954. The establishment was so afraid of it that it was declared a
political party. The Communist party was also banned in 1954. Bhutto,
after coming into power, formally lifted ban on these organisations. Veteran human rights activist and intellectual, I. A. Rehman, in his address explained the reason. He said that in 1954 provincial election in East Pakistan Muslim League was an upset and some communists also won the election which raised alarm bells in the corridors of power. They thought it was the time to ban it. In March 1986, after about 32 years and many deliberations, a PWA national convention was held in Karachi attended by 400 delegates from all over Pakistan and abroad where it was resolved to revive PWA in Pakistan. The seminar was titled, “75-years of PWA” but one of the speakers asked how one could count the years when PWA remained banned and did not do any activity under its banner? Dr. Waheed Qureshi from Haripur said terrorism was the biggest problem faced by Pakistan. Prof. Zia Ul Hassan of the University Oriental College said from 1936-1945 five conventions were held. After the partition of the Subcontinent in 1947 PWA was divided into two. In Pakistan, it organized two conventions — 1949 and 1952. The Indian PWA and Pakistani PWA had different attitudes. In those days, the ideological divide was so strong that progressive writers’ writings would not be printed in papers. After the ban on PWA, progressive writers established writers’ organisations under different names. In Lahore, they joined Halqa Arbab-e- Zaoq and influenced its policies. He said regional literature was more powerful than Urdu and anybody who opposed Gen. Zia ul Haq was a progressive. Whoever resisted oppression was a progressive. He lamented that most of progressive intellectuals did not bother to read the rightist literature except veteran writer and intellectual Dr. Mohammad Ali Siddique who, after reading it, criticised their ideas with logic. Asmat Chughtai and N. M. Rashid opposed all kinds of restriction or censorship on literature. Rashid Misbah had his own point of view, saying the progressive people did not stop writing and that they joined other organisations or created new ones kept on writing. This changed the trend of writings and influenced many generations by preaching tolerance. He said the resurgence of the present PWA took place in Multan where the first convention was held and a new body was established in 2007. Veteran Sindhi Communist, Sobho Gyan Chandani, was elected president and Hamid Akhtar (late), Secretary General. Fifty two writers were dismissed from service just for signing a resolution against Gen. Zia’s martial law. Dr. Saadat Saeed pointed to the irony of history, saying capitalists were talking about revolution. He also pointed out how progressive writers changed the very basic stance of Halqa. He said it is very difficult for a public university teacher to divert from the established curriculum and talk about progressive worldview. He criticised commercialisation of literature. Altaf Ahmed Qureshi was of the view that writers of other provinces write in their mother tongue but Punjabis still shied away from their mother tongue. He highlighted the fact that we have to chalk out strategy how to defeat religious extremism which was destroying our society. Rahat Saeed, the outgoing secretary general, who succeeded Hamid Akhtar in his report informed the audience that the PWA had branches in twenty two cities. He pointed out that PWA’s chapters are working in all provinces except Balochistan where due to its peculiar situation. Shah Mohammad Shah said he intends to establish SAARC Progressive Writers Association. Dr. Soolat Nagi represented Gujranwala and Mr. Abid Ali Abid presented the Punjab report while Dr. Badar ud Din Ujan presented the Sindh report. He informed that PWA’s branches were being opened in the interior Sindh In the concluding session, the following office-bearers were elected by consensus: President Dr. Mohmmmad Ali Siddiqui, Secretary General Mr. Salem Raz, Deputy Secretary General Mr. Rashid Misbah, and Joint Secretary Mr. Maqsood Khaliq. Dr. Saadat Saeed, has been elected President Punjab Chapter with Abid Ali Abid as Secretary General Punjab. Veteran writer Dr. Mohammad Ali Siddique thanked delegates for making him president of PWA, saying we have to spread the message of progressive thinking. He believed political parties were not playing their basic role. Salim Raz demanded ‘Objective Resolution’ in the Constitution should be replaced by Quaid’s speech ON August 11. I. A. Rehman said ‘freedom from imperialism’ was the target of PWA before 1947. After the ban on PWA, he said, some people stopped working while others continued their mission under other banners. He believed that every conscious writer wrote about the present and that is called progressive literature. A writer, according to him, cannot shut his eyes from people’s problems. One must give credit to workaholic Rahat Saeed who put life into PWA, Pakistan and toured the country for establishing its braches. Now PWA is lucky to have an experienced, energetic and towering literary figure at the helms of affairs. But they will have to prove their capability in carrying further the battle of ideas in practice because in the present milieu the challenge is difficult.
review An
optimist’s tour of the future We welcome cutting edge technologies like biotechnology and nanotechnology since we believe they will revolutionize industry and healthcare and provide our planet the impetus it needs to channel our finite resources into the most efficient outcomes. At the same time, we greet these innovations with a sense of trepidation since we fear the doomsday scenarios that have been prophesized in the pop culture of Jurassic Park and other media. An optimist’s tour of
the future is one man’s attempt to travel around the world and
understand how industry and our environment will change over the coming
years. The author travels from Boston to London to New Zealand to Maldives
to get a first-hand account of the research that is being conducted around
the world to give us the future that science fiction has promised us. It
is highly readable account which makes ample use of anecdotes to follow a
style more commonly associated with fiction books. It would be easy for such a book to become dry and monotonous very quickly. But the author is an accomplished writer with a quick wit, an eye for detail and an ability to personalize his experiences very rapidly. He is not giving us a textbook-style account of life in the future. In fact, he gives a vivid account of his sentiments and experiences as he meets some of the movers and shakers of tomorrow. We are thus presented with a holistic overview of the most important technologies that are brewing in global laboratories. The initial chapters are focused on the most exotic technologies: robotics, the internet and sophisticated materials. The author identifies the person who is most knowledgeable about each sector and visits him in person to understand his point of view on how our technological future will play out. The most compelling section is that on nanotechnology which posits a revolutionary future where new materials, products and services will be conceived on the smallest of scales and churned out by programmable and flexible factories that will ensure mankind will never be afflicted by a shortage of resources. It sounds utopian but we learn how close we might be to such a reality. Another intriguing section is that on space exploration where we learn about how space tourism may become commonplace soon The author does broach upon the possible negative ramifications of such technologies but is quick to dismiss concerns based on his findings. He is more fascinated by how costs of everything from DNA sequencing to solar energy are falling and how these technologies will thus become staples of industry and commerce over the coming years. The overall tone of the book remains optimistic and communicates the message that most people working on modern technology desire to use it for humanistic and utilitarian outcomes. The second half of the book is more focused on the environmental consequences of the contemporary surge in industrialisation. But even here the author refutes the traditional pessimism around the future of the planet. He tells us about several public and private sector groups around the globe that are working on successful prototypes of machines that may reverse global warming. We also learn about modern farming techniques that are taking root around the world to help promote sustainability. Perhaps the most interesting section of the book is on the little island of Maldives. We are introduced to an idyllic land which is aware that with the rise of the sea-level, it may just get inundated with many cosmopolitan cities soon to follow. But that doesn’t mean that the Maldives has accepted its fate. Indeed, the current government is committed to reversing the trajectory of the approaching waters through a commitment to renewable energies including vast wind turbines off its shores. Maldives hopes that its national level commitment to protecting the planet will reverberate around the globe and bigger nations will realize what kind of policies they need to adopt to ensure a sustainable future for all of us. One of the most important messages of the book is that even people working on the smallest scales are able to develop technologies that may be vital for our future. It doesn’t matter whether you are working in the public or private sector, whether you are working alone or in a large team. People from all backgrounds have the kind of entrepreneurial zeal needed to bring in future innovations. But perhaps the most important message is that the cloud of pessimism surrounding technology and the environment are largely misguided. If we go out and explore the planet, we realise that there are brave crusaders all around the world who are ensuring that mankind’s commitment to innovation never wavers. We should embrace modern technology since it has the potential to solve many of our most pressing problems.
One
down, more to go Pakistan, among other countries, has achieved one of the Millennium Development Goals (MDGs) of reducing in half the number of its population without access to safe drinking water. That has happened five years ahead of the 2015 target. A report issued by the WHO/UNICEF Joint Monitoring Programme (JMP) for Water Supply and Sanitation last week says that over 2 billion people gained access to safe drinking water between 1990 and 2010, which means 89 percent of the world’s population has access to safe water source by end of 2010. It is one percent more
than the goal of 88 percent set at the UN Millennium Summit in 2000.
According to JMP, Pakistan has achieved the target of providing safe
drinking water source to 92 percent of its population by the end of 2010
while the target is to provide facility to 93 percent by 2015. The target is achievable though there are still some areas that need to be looked further into. “News that the world has met the MDG target on water is a great encouragement. Good progress has been made on water in Pakistan, yet sustaining the water services and monitoring quality are the greater challenges in Pakistan”, says Abdul Hafeez, manager advocacy WaterAid, an international NGO dedicated exclusively to the provision of safe drinking water, sanitation and hygiene education, Pakistan. This is a huge achievement for the world but it is only the beginning and still there is a lot of work to do to achieve the MDG on sanitation which the world is still far from meeting. According to report only 63 per cent of the world now has basic sanitation and the figure will increase to just 67 per cent by 2015, well below the 75 per cent required to reach the target. Globally, it is predicted, the MDG target on sanitation would not be reached until 2026. The situation in Pakistan even worse, Pakistan’s sanitation target under MDGs is 67 percent and currently only 48 percent people are using improved sanitation. Progress to achieve sanitation targets in the last two years has been very slow in Pakistan with only 1.5 percent increase per year. With this rate of progress it will take more than ten years to achieve MDGs and 34 years to provide access to 100 percent population. In Pakistan, 14 million people still do not have access to safe drinking water and over 90 million are without improved sanitation. “The state of sanitation is of even greater concern. It is highly unacceptable that 40 million people nearly one fourth of the population in Pakistan practice open defecation which is a violation of their right to live with dignity,” he says, adding, “We are calling on the government of Pakistan to strengthen and clarify institutional roles for implementing sanitation programmes, expedite reform process at provincial level to prepare time bound action plan to translate policies into real actions. He calls upon the federal and provincial governments “to prepare a programme to target un-served and excluded people and fulfill commitments made at the 2011 South Asian Conference on Sanitation (SACOSAN)”. Hafeez informs that new figures have revealed that South Asia as a region is facing an even more daunting challenge in sanitation. The target for providing access to sanitation, which is even more crucial in tackling killer diseases in developing countries, is one of the most off track of all the MDG targets. Over a billion people in South Asia do not yet have access and the region has the highest proportion of people (67 percent or 690 million) still practicing open defecation. “Despite several commitments,” he says, “South Asia is lagging behind other regions in sanitation. This is an affront to citizens’ rights. We need a better monitoring mechanism to improve sector governance and bring the required accountability to ensure that programmes and policies are delivering and governments are reaching people with the greatest need. We are calling for effective regional cooperation to address this challenge through governments targeting the un-served and proactively engaging in the existing regional and global mechanisms, such as SAARC, SACOSAN and (SWA)”. Pakistan has been bearing a huge cost due to lack of improved sanitation facilities. According to WHO, 52000 children die annually due to diarrhea in Pakistan. The World Bank Strategic Environmental Assessment for Pakistan estimates the total healthcare cost of diarrhea and typhoid, both water and sanitation related diseases, to be Rs112 billion (US$1.33 billion), or 1.8 percent of the country’s gross domestic product (GDP). The problem is prevalent in underdeveloped urban areas and a majority of rural areas of the country as 72 percent urban population has reach to improved sanitation while the number is only 34 percent for rural areas. Pakistan will be attending the Sanitation and Water for All (SWA) High Level Meeting next month to take stock of progress made since 2010 in the sector. Pakistan needs to spend more on sanitation from domestic resources and politically prioritize sanitation in development programmes. Experts believe that there is discrimination in Pakistan with regard to budget allocations for sanitation schemes and municipal services in urban and rural areas. “More than 85 percent of sanitation and solid waste management budget is used in big cities” says Nazir Wattoo, Chairman Anjuman Samaji Behbood, Faisalabad and member Water and Sanitation Committee of Punjab government. Wattoo says the problem is in the mindset of our policy makers who hardly consider sanitation and solid waste management as an issue of rural areas. “Have you ever heard about a national emergency for sanitation for all in Pakistan though there are some for safe drinking water for all like installment of water filtration plants all over the country? We need to change our mindset and make sanitation a top priority, otherwise diseases like diarrhea and polio can never be controlled”, he says, adding, “this is time for authorities to rethink policies as after the 18th Amendment the issue has become provincial.” The
question of ‘free and fair’ The question of elections in Pakistan being free fair, transparent and credible remains fashionable in country’s politics .This is mainly because most of the political pundits are convinced that except the 1970 general elections no other elections held in the country can be called totally fair. Have the political ruling elite have learnt from the past experiences? It is true that the establishment forces have definitely learnt from the past experiences, ironically by not providing a stage for free and fair elections in the country. There is no doubt that intelligentsia groups having a strong role and establishment forces and their agencies want to get results of their own choice and not through election process. Unfortunately, some Pakistanis believe that change cannot come through our vote or the electoral process. Most of the political parties and intelligentsia groups are talking about free and fair elections through an independent Election Commission but ironically they seldom come up with any major and positive step in that direction. One major reason is that both some ‘political parties’ and establishment forces shake hands and play a conspiracy against the real representatives of the people. There are many issues to be resolved such as independent election commission, fair voters lists, violation of election rules and procedures, bogus voting, and misuse of NIC card, etc, have to be looked into. Last time, the Election Commission had declared four crore votes as bogus in our voters’ list showing where we stood in terms of transparency in elections. Many people raised the question of elected representative’s credibility and legitimacy under the ‘bogus’ voters list.’ A few months ago, the opposition and government’s ruling parties had a serious debate about the up-coming general elections being transparent elections. We also witnessed politicisation within the government and the opposition clearly mentioning the probability of not accepting the next general elections. After the unanimous
approval of the 20th Amendment bill from National Assembly the situation
has changed. Interestingly, both the mainstream parties engage in a
two-week exercise and pass the 20th Amendment bill and also get support
from other parties. Interestingly, a few months before the PML(N) had badly criticized the PPP government, even calling it a corrupt government and vowing to hold no political dialogue with the ruling elite. Talking and holding discussions on important issues is really good in the context of free elections. The amendment has laid the framework for creating an enabling environment for an independent Election Commission and validated the by-election conducted by a constitutionally incomplete election commission. Interestingly, the amendments give final authority to the Election Commission to appoint national and provincial caretaker set-up if the government and opposition parties in the parliament don’t reach the consensus of the caretaker government. Secondly, the 20th Amendment 2012 has given the ECP sweeping powers by minimizing the government’s direct role in the appointment and removal of its members. Under this amendment both Prime Minister and opposition in the National Assembly would hold consultation on the appointment of caretaker setup in the country. The process of finalising the caretaker set-up must be completed within three days of the assembly being dissolved. The amendment also envisages that four members, one from each province, would be chosen for five years and the government would have to follow the same procedure to seek their removal, as is the case with High Court Judges. Another recent landmark from the EC is regarding the overseas Pakistani voting rights in the electoral process. Hopefully 3.7 million overseas Pakistanis would get benefits from this decision. The ECP decision, obviously, is to strengthen the democratic process through involving more public participation in the electoral politics. Pakistan Tehreek-e-Insaf Chairman, Imran Khan, had earlier moved a petition in the Supreme Court, demanding that those living abroad should be allowed to vote. The EC has also ensured new voter computerized list with the support of NADRA before the general elections are held. This is a good move. Now the question is of having free and fair elections in the country. Would it be possible after the unanimous passing of the 20th amendment from the parliament? We have laws and mechanisms but the real issue is of transparent implementation mechanism of laws in the country. After the approval of 20th Amendment the parliament needs to engage other political parties, especially those that are not in the parliament. The Prime minister should take lead and ensure broad- based consensus because already people have doubts on the government and their coalition partners about the fulfillment of their promises and commitment. The real question in our mind is the role of the agencies in electoral politics on the election day and after the results formulation. The issue is not only related with internal establishment forces also the link with the international players who intervene elections and destroy the true representation from the democratic and voting process. If some intelligentsia groups feel that the role of both internal and external establishments will be eliminated; then it seems to be their misconception. Yes, an independent election commission is the real part of holding free and fair elections after 20th Amendment. But the real issue is how the ECP translates this power independently. Because in the past lots of ambiguity was there about the election procedure. So let’s see how the ECP controls and takes action against criminal elements. Elections in Karachi is the test case for ECP where the whole process is hijacked by some political groups. Free and fair elections are not only the sole responsibility of ECP and caretaker government; the political parties, common people, intelligentsia and other are equally responsible to play a proactive role though monitoring and resisting criminal mafia, including non-state actors. The
writer is a political analyst and can be reached at salmanabidpk@gmail.com violence The assassination of 18 Shia passengers in the remote Kohistan district on February 28 brought to the surface the under-reported sectarian problems in neighbouring Gilgit-Baltistan. The killers cleverly chose an isolated place in Kohistan, a mountainous, Sunni-populated district in Khyber Pakhtunkhwa province, to commit the crime. The Kohistanis, through their public representatives and tribal elders, have continued to deny their involvement by arguing that no such incident has happened in their district in the past despite the fact that the Karokoram Highway, linking rest of Pakistan with Gilgit-Baltistan, passes through Kohistan for hundreds of kilometres. They demanded a proper probe to unearth the conspiracy under which Kohistan was dragged into a sectarian conflict in which it had no role. Mahboobullah Jan,
Kohistan’s lone MNA and Pakistan’s richest parliamentarian according
to documents presented to the Election Commission, pointed out that the
place of occurrence, Harban Nala, was close to the boundary between
Kohistan and Gilgit-Baltistan and didn’t have any population centre or
security. He also reminded that two Sunnis from the Chilas area in Diamer,
one of the seven districts in Gilgit-Baltistan, had been killed in
apparent sectarian disputes earlier in Gilgit and the Kohistan killings of
18 Shias could be an act of revenge. The linkage of an act of violence to another isn’t something new, but the perpetrators of the Kohistan killings, even if they were avenging something, crossed all limits and shot dead 18 innocent Shias. Eyewitnesses reported that gunmen wearing military uniform intercepted buses, checked the passengers’ documents, separated the Shias and forced them to disembark before shooting them dead execution style. The survivors were quoted as saying that armed men across the river waited to reinforce the killers in case of need in the well-planned attack. Every act of violence has repercussions and the cold-blooded execution of the Shia passengers triggered widespread protests, particularly in Gilgit-Baltistan’s headquarters and biggest city, Gilgit. Tension ran high for days as strike was observed and markets, offices and educational institutions closed down. Section 144 had to be enforced and there was virtual curfew in Gilgit. Just when the situation calmed down a bit, a procession of Shia protestors was fired at near Gilgit city and a person was injured. It stoked further tension and made it even more difficult for the authorities to pacify the people. So strong was the reaction in parts of Gilgit-Baltistan that protestors in Kharmang tehsil in Baltistan district marched towards the Line of Control (LoC) and demanded opening of the Skardu-Kargil road so that they could get supplies and do trade with Ladakh and other places in Indian-Administered Jammu & Kashmir in case the Karakoram Highway was rendered unsafe for use. This has been an old demand of the Baltis and Ladakhis and has gained momentum following the reopening of Muzaffarabad-Srinagar road across the LoC. The closure of the once regular trade routes due to the non-resolution of the intractable Kashmir dispute has affected the economy of this area, made it difficult to exploit the huge potential of the tourism industry and separated people belonging to the same stock. Taqi Akhundzada, a journalist in Baltistan, said the Kohistan killings increased the concern of the people in Gilgit-Baltistan about the security on the Karakoram Highway and prompted them to look for any possible alternative routes. Besides, he said the killing also revived demand for restoring the state subject rule to ban buying of property by non-residents in Gilgit-Baltistan because the people are worried about the influx of outsiders. He felt the assassination of 18 Shias in Kohistan appeared to be the continuation of the attempts to destabilize Pakistan through sectarian strife in Gilgit-Baltistan and Balochistan. “Gilgit-Baltistan is a strategically important area. It contains the Siachin Glacier and the Kargil sector while the Karakoram Highway passing through it and linking Pakistan with China is presently being widened. Sectarian problems in Gilgit-Baltistan are a threat to Pakistan’s integrity,” he added. The vehicles that were waylaid were on the way to Gilgit from Rawalpindi and were making the long journey that normally takes more than 22 hours, or even more nowadays due to the dilapidated condition of the 840-kilometres long Karakoram Highway. Those slain were largely from Gilgit district, though one of the victims was from Skardu and another from Kurram Agency. Among those killed were Shia pilgrims returning from Iran and this could be the reason that the attackers’ spokesman Salim Marwat, identified his group as Jundullah. This was intriguing and possibly an attempt to confuse the investigators because Jundullah is an organization of extremist Sunni Baloch active in Iran’s Seistan-Balochistan province and claiming to be fighting for equal rights against the Shia-dominated Iranian government. Jundullah, which according to Tehran, is backed by the US and British governments, never had any presence in Khyber Pakhtunkhwa, the Federally Administered Tribal Areas (Fata) or Gilgit-Baltistan and its spokesman hadn’t been heard of before. The Jundullah leader, Abdul Malik Regi, was captured last year by Iranian commandoes with Pakistan’s help and executed. There have been incidents of sectarian riots in the past also in Gilgit-Baltistan, which was known as Northern Areas until August 2009 when the Pakistan government introduced reforms giving it self-rule, an elected Legislative Assembly and a de facto province-like status. In the mid-1970s, differences over staging a public meeting on the road in Gilgit caused sectarian problems and in May 1988 a dispute over the Ramazan moon-sighting caused Shia-Sunni strife. Minor sectarian disputes also arose in 1990 and 1991, but the situation turned serious when a Sunni elder, Ghayasuddin, was killed in 1992 and a Shia leader, Latif Hassan, was assassinated in 1993. In subsequent years, the situation calmed down. The assassination of Shia religious scholar Syed Agha Ziauddin Rizvi, the prayer leader of Gilgit’s Imamia Mosque, in January 2005 was a turning point as it led to days of rioting and sectarian killings. Rizvi had also led objections to the textbooks being used in government schools in Gilgit-Baltistan as he felt parts of it ignored Shia beliefs. The textbook issue remained unresolved for quite sometime and in the end it was decided that flexibility would be observed in using the textbooks in Shia-populated areas keeping in view their objections. The frenzied killings during bouts of sectarian strife not only resulted in loss of life of many civilians but also senior government officials, including the Inspector General of Police, Sakhiullah Tareen, Major (Retd) Nadeem Manzur, the district forest officer and the director health. The recent killings in Kohistan have reignited the sectarian issue and put on trial the administration that came into being after the reforms initiated by the PPP-led federal government. Chief Minister Syed Mehdi Shah and Maj Gen Ikramul Haq, the Force Commander for Gilgit-Baltistan, visited Chilas, the headquarters of Diamer district to meet Sunni Ulema and tribal elders and seek their help in tackling the homegrown Sunni extremists who may have played a role in the Kohistan incident. They told the Sunni leaders from Diamer and Astore that peace in Gilgit-Baltistan was essential for building the Diamer and Bunji dams and completing the widening of the Karakoram Highway on which China is spending billions of dollars and achieving prosperity. The message they conveyed in Chilas was also given to Shia, Ismaili and Nurbakhshi elders and Ulema in Gilgit, Skardu, Ghanche, Ghizer and Hunza-Nagar as the two sects needed to live in peaceful coexistence if they wanted to benefit from these big projects and attract tourists to a part of Pakistan that has been bestowed with five of the eight peaks of over 8,000 metres in the world and three (Biafo, Baltoro and Baturo) of the world’s largest glaciers outside the polar region. Tax
scenario after the 18th Amendment The Constitution (Eighteenth Amendment) Act, 2010 made many changes in the Constitution of Republic of Pakistan that included omission of entire Concurrent Legislative List and certain amendments in the Federal Legislative List contained in the Fourth Schedule. We are confined here to examine the impact on taxes alone. Before analysing various changes relating to taxes, it is important to mention that in terms of Article 142 of the Constitution, Majlis-e-Shoora [Parliament] enjoys exclusive powers to make laws with respect to matters mentioned in the Federal Legislative List, but have no authority to enact laws with respect to matters not enumerated therein, except that it shares with Provincial Assemblies the right to enact laws relating to criminal laws, procedures and evidence. However, Parliament has exclusive authority to enact laws for areas not included in any province. In the wake of 18th
Amendment, the main entries related to imposition of taxes in Part I of
the Federal Legislative List are: Duties of customs, including export duties (Entry 43) Duties of excise, including duties on salt, but not including duties on alcoholic liquors, opium and other narcotics (Entry 44) Taxes on income other than agricultural income (Entry 47) Taxes on corporations (Entry 48) Taxes on sales and purchase of goods imported, exported, produced, manufactured and consumed, except sales tax on services (Entry 49) Taxes on the capital value of assets, not including taxes on immovable property (Entry 50) Taxes on mineral oil, natural gas and minerals used in generation of nuclear energy (Entry 51) Taxes on the capital value of assets, not including taxes on immovable property (Entry 50); Taxes on the production capacity of any plant, machinery, undertaking or installation in lieu of one or more taxes (Entry 52); and Terminal taxes on goods or passengers carried by railway, sea or air, taxes on the fare and freights (Entry 53). The 18th Amendment omitted two very important entries from the Federal Legislative List entitled, ‘Duties in respect of succession to property’ [Entry 45] and ‘Estate duty in respect of property’ [Entry 46] meaning by that the provinces alone can levy these taxes. It also amended Entry 50 replacing the phrase ‘not including taxes on capital gains on immovable property” with “not including taxes on immovable property”. The omission of Entries No. 45 and 46 was of no practical importance because long ago the federal government withdrew progressive taxes like Estate Duty and Gift Tax. The major change was in Entry 50 as Capital Value Tax (CVT) on immovable property in the wake of 18th Amendment became provincial subject. Strangely, Federal Board of Revenue (FBR) thought otherwise. It reportedly sent a proposal of imposition of Capital Gains Tax (CGT) on the sale of immoveable property to Ministry of Law. Quite shockingly, it was reported that the Law Division also opined that after amendment in Entry No 50 of Federal Legislative List through the 18th Amendment Act, 2010, the levy of tax on capital gain on the disposal of immovable property would fall within the domain of the Federal Legislative List. At present, gain on disposal of immovable property falls outside the ambit of Income Tax Ordinance, 2001 as its section 37(5)(c) says that “capital asset” does not include any immovable property. FBR after securing favourable opinion from Law Division was reportedly considering adding a new section 236C in the Income Tax Ordinance, 2001 for collection of tax from the seller at the time of transfer of property. The aspect that escaped the attention of FBR and Law Division was that amendment in Entry 50 of the Federal Legislative List, in fact, debars the federation to levy any kind of tax on immovable property. Therefore, the Capital value Tax (CVT) stands transferred to provinces. If federation cannot levy any tax on immovable property, how can it tax “capital gain” arising out of immovable property? It is not comprehensible how FBR and Law &Justice Division by mere omission of the words “capital gains” in Entry 50 of the Federal Legislative List by 18th Amendment have concluded that the right to taxation on gain of immovable property has been shifted to federation from federating units? They have certainly misread the law. The second part of Entry 50 is couched in negative phrase — the phrase “not including taxes on immovable property” in Entry 50 cannot be read to “include taxes on capital gains on immovable property”. The undeniable fact is that the rich and mighty dominating the Parliament, through the 18th Amendment, have saved themselves from estate duty, gift tax and wealth tax. They do not pay any progressive taxes under any provincial tax law (agricultural income tax is just a farce under provincial laws and there is also no political will to secure its collection). They have now ensured through 18th Amendment that on their collossal immovable assets no wealth tax, estate duty, or gift tax can ever be levied by the FBR. The
writers, tax lawyers, are Adjunct Professors at Lahore University of
Management Sciences (LUMS)
first person Majed Akhter is a PhD candidate in the School of Geography and Development at the University of Arizona. He is currently visiting faculty at Beaconhouse National University in Lahore, and is conducting research towards his doctoral dissertation on the water issues between India and Pakistan. Akhter shows keen interest in the issues of agrarian development, international law and politics, and territory which are being manifested as a legal dispute over the terms of the Indus Water Treaty. The News on Sunday had a chance to know his views through an interview. Excerpts follow: The News on Sunday: In
recent years, water scarcity in Pakistan has led to calls for revisiting
the Indus Water Treaty (IWT). What are the contentious components of the
treaty and why has it become such an alarming issue in recent years? Majed Akhter: On the level of strict legal interpretation, the contention is around India’s construction on the rivers Jhelum and Chenab. Article 2 and Annexures D and E of the IWT cover this in technical detail — to simplify, India is not allowed to diminish the flow of the waters of these rivers as they flow into Pakistan. What is known is that India has been constructing dams on these rivers. You’ll see different numbers thrown around for exactly how many dams, and I won’t pretend to know which one is accurate. So Pakistan’s grievance is that these dams will diminish downstream flows, and India claims that they won’t. Pakistan has brought two cases against India. Most agree that Pakistan lost out in the Baglihar verdict of 2007, and we should hear a decision on the Kishenganga case from the International Court of Arbitration sometime in 2013. On a deeper level, the level of political economy and geography, it is hard for me to say at this point what exactly is going on but this is what my research is about. I’m interested in the underlying issues of agrarian development, international law and politics, and territory which are being manifested as a legal dispute over the terms of the IWT. TNS: You argue that there are three major responses in Pakistan to the anxieties caused by water scarcity, namely the ‘chauvinistic camp,’ the ‘techno-utopians’ and the ‘optimistic managers’. What distinguishes each of these groups and what are their limitations? MA: First let me say that I use these categories abstractly, and no one probably fits fully or exclusively into any one of them. But they are useful to identify ways of thinking about this issue. The chauvinist camp is basically anti-India; it sees Pakistan’s problem as caused fully by Indian machinations. Their solution is, therefore, also centered on India, not internally. The techno-utopians see the greater application of technology as the problem, and the optimistic managers see the behaviour of water-users as individuals. These views share two tendencies; to view the Indus issue as one of India vs. Pakistan and to see it as simply of water distribution between homogenous individuals. What these tendencies do is flatten the material differences between members of society, and hide what should be at the center of the analysis if we are concerned about water scarcity and how it impacts the poorest. This is that it is class, or one’s position in the structure of property relations, that determines access to water. Even if all canals in Pakistan were lined, even if we had the most advanced telemetry system, even if India were never to build a dam on the Jhelum or the Chenab again and tore down the ones it has built right now, do we really think this would improve the ability of the half of rural Pakistan that is landless to provide for itself? TNS: You mention that class relations are an important factor contributing to water scarcity. Would you explain this relationship between social relations and nature, and what implications does it have for the debate on water scarcity and environmental degradation in Pakistan? MA: The idea of scarcity is powerful, and we have to understand cases in their specificity when we invoke it. What is often left out of the picture is, again, class. “Appropriate pricing”, the economists’ answer to scarcity, often does not take into account that willingness to pay a price is not the same thing as ability to pay a price, and further that ability to pay a price has a tenuous, if any, connection to the innate worthiness or capability or hard work of an individual. Pricing as a simple and final solution to scarcity is therefore unsatisfactory, especially when we are talking about goods people need to survive, like water. Another thing you often hear, especially in Pakistan, in response to scarcity is that what must be attacked is “overpopulation”. When scarcity is involved, we have to ask what is being assumed in relation to resource consumption. Is it that more people are equal to more resources being consumed? But do all people consume the same amount? Of course they don’t. How much you consume is directly linked to your class position — the wealthy, almost by definition, consume more than the poor; more water, more energy, more food, more everything. But when we think about implementing solutions to “overpopulation”, is it curbing the excesses of the relatively rich we have in mind? Or is it more often about “educating” or controlling the poor? I am not saying, of course, that education is bad; merely that we have to re-insert class into the analysis to understand its political dimensions. TNS: Since you describe this issue as a trans-border class issue, do you feel there needs to be some coordinated efforts from landless peasants on both sides to the border to demand more access to water resources? Are there historical precedents for such a coordinated transnational movement for resource distributions? MA: That would be tremendous if it could be done, and there are peasant movements that have established strong transnational linkages. The MST of Brazil is an example. But my own view, especially in the Pakistani context, is that it is at the national and regional level that the first steps must be taken. Indeed, Pakistanis are not waiting for a fully-fleshed analysis or a political party or the Supreme Court to make a decision to take those steps — the Anjuman Muzareen Punjab, as you know, is a peasant movement 1 million strong that has for the past 12 years struggled successfully to change property relations, and access to resources, on the ground. TNS: Tell us a bit about your research on the Indus Waters Treaty and Punjab. MA: Theoretically, I am interested in the role played by experts in the political and economic development of a society. This is a broad question that scholars from across the social sciences, and in many parts of the world, are interested in. In particular, and concretely speaking, I am interested in the role that engineers have played through water in the development of the Pakistani state, and in Pakistani state-society relations. The canalisation of Punjab, the negotiations leading to the Indus Waters Treaty and the way it is arbitrated now, the prestige, power, and fall from grace of WAPDA, are all fascinating parts of this story. I think analysing Pakistani politics and history from this perspective not only gives new dimensions to the way we have studied it in the past, primarily as a military-bureaucratic and authoritarian state in which the landed agrarian classes have a strong stake, but can also hopefully add fresh understanding. TNS: You are currently teaching at a local university. What do you feel are the salient differences between academia in the US and Pakistan? What measures do you feel can be taken to improve the state of affairs in the Pakistani academia? MA: Michael Buroway, a sociologist, has written about four styles of social science; policy, professional, public, and critical. Each has a different driving motor; generating advice for the state for “policy”, solving intellectual puzzles and pushing theory for “professional”, representing the demands of marginalized communities for “public”, and conducting a relentless internal critique of standing disciplinary assumptions for “critical”. These different sides feed off each other to give social science dynamism, legitimacy, credibility, financial viability, and a live link to broader society. And this is a situation in which space can be carved out of academia for progressive purposes — to produce knowledge about society that will help change it for the better. But in Pakistan, perhaps, social science is overwhelmingly of the “policy” stripe. I think there may be a great opportunity for regeneration in Pakistani academia in the next several years. For a combination of reasons, there has been a flood of students who have gone abroad for PhD or Masters studies in the past seven or eight years. It is likely that many of these students have imbibed the other strands of social science. If these students come back to Pakistan, if there are forums and institutions which provide space for them to talk to each other, if the “old guard” in universities is supportive, maybe an academic community can take root that will develop a presence and its own intellectual culture. After all, social science and the humanities are less about expensive equipment and facilities, and more about a community of people devoted to mutual critique, debate, and carrying on a conversation at a high intellectual level. And then, maybe, social science can assume a more active role in guiding the country’s political, economic, and cultural development. That is a lot of ifs, but any historical process is nothing but a lot of ifs thrown together.
Looking for
gains The continuous bullish trend in the stock market over the last couple of days shows more and more investors are returning to shares’ trade which had decreased to an alarming level. Different stakeholders believe the positive impact is due to the recent government decision to provide certain incentives to stock market players in the upcoming budget. These include proposed
revision in the existing Capital Gains Tax (CGT) regime, reduction in
corporate tax rate and an exemption for investors (who hold shares for at
least 120 days) under which they will not be asked about the source of
their funds. CGT was imposed on share trading in 2010 budget but so far it could not be implemented properly. Bourses have not been clear on how to calculate CGT on different transactions and many cases are still pending. The logic behind CGT is to document this trade and discourage speculation. The investors who sell their shares within six months of their purchase are charged CGT rate of 10 percent, those who retain them for more than six month and less than one year are charged 8 percent and the investors who hold on shares for one year or more are exempted from CGT. The above-mentioned incentives have been proposed by the Securities and Exchange Commission of Pakistan (SECP) as it believes the faulty mechanism of calculating and deducting CGT has made many investors withdraw their investments from the market. Similarly, it says the high corporate tax rate of 35 percent discourages large corporations and banks from investing in the stock market. In words of SECP Chairman Muhammad Ali, a number of companies have deferred plans of fund raising from the capital market due to the complexities in the existing CGT regime and the resulting lack of investor appetite. The intended move has both supporters and opponents. The former believe financial markets should be given maximum incentives and exemptions as weak health of the economy cannot afford stringent measures. The latter, on the other hand, insist it’s time to end tax holiday for stock market including big time brokers and investors who have made billions over the years. The suspension of condition to declare source of funds, they believe, is bound to promote money laundering and whitening of black money. Hafiz Muhammad Yousaf, Vice President (North) of the Institute of Chartered Accountants of Pakistan (ICAP), tells The News on Sunday (TNS) that stock market players have no justification to ask for CGT exemptions. His point is the brokers should pay for the huge earnings they have made. This, he thinks, is necessary to widen the tax net and increase the revenue. Yousaf tells TNS taxation on shares trading can be the best source of revenue generation for the country. Policymakers talk a lot about imposition of agriculture tax but estimates show the maximum revenue generated this way will be hardly around Rs40 billion, he adds. This, he says, is for the reason that very few people have big and large landholdings and most of the landowners have small units that enjoy exemptions. His point is that they should focus on stock market for revenue generation instead of the agriculture sector which is subsidized all over the world. “I don’t support the idea of full tax exemption to investors who hold their assets for one year or more. They could be charged at a lesser rate than those who dispose shares within smaller periods.” Yousaf says CGT is a tax on the income generated by sale of an asset retained over a year. The difference in the price at which it is bought and the price at which is sold is called capital gains. The most common capital gains are realised from the sale of stocks, bonds, precious metals and property, he adds. Irfan Saeed, Director, Maan Securities, a Lahore-based securities firm, tells TNS the proposed revision in CGT regime is an incentive but the healthy activity in the stock market is mainly due to the decision of the government not to ask source of funds from investors. He says bourses all over the world attract funds without asking for their source. It’s not always the black money that’s pumped into the market; it can be the one raised through undocumented business or sale of property and other assets like jewellery. Besides, he says, people want to avoid interaction with tax authorities and do not declare the source even if they can. Irfan tells TNS they are not opposing CGT but they want the tax to be rational and its calculation and collection simple. “It’s the SECP and not we who analysed the situation and forwarded these suggestions to the finance ministry.” He adds, from now onwards the tax will be calculated by the National Clearing Company of Pakistan Limited (NCCPL) which has the expertise required to do this. The SECP had to face severe criticism from different quarters on grounds that it was promoting money laundering in times where any suspicious financial transaction is immediately linked with terrorism financing. To counter this allegation, the commission has come out with a statement which says although investors would be exempted from explaining source of investment under Section 111 of the Income Tax Ordinance, 2001, the provisions of the laws of the National Accountability Bureau (NAB), Anti-Narcotics Force (ANF), Federal Investigation Agency (FIA) and other national institutions would continue to apply regarding the source of investment. This leaves a question mark on how meaningful this exemption is in the presence of these laws. The government plans to offer shares of Pakistan Petroleum Limited (PPL) and Oil and Gas Development Company Limited (OGDCL) to the public soon, says Irfan. The public response cannot be positive without making investment in shares a lucrative business, and removing concerns of the wary investors, he believes. The proposed cut in corporate tax rate to 32 percent from 35 percent in this year’s budget can be termed one such step. Whether the improved CGT regime leads to a win-win situation for revenue collectors as well investors is a question that needs to be discussed and answered.
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