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progress education How to
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economy Trading with the 'enemy' The international trading system is characterised by growing intra-region trade, but South Asia lags far behind on this count By Hussain H Zaidi Trade within regional blocs constitutes more than half of the global trade. When it comes to South Asia, however, the picture is dismal. Trade among the countries of the region is less than five per cent of their global trade. The major reason for this is the low volume of trade between Pakistan and India, the largest economies and trading nations in the region. Though formal Pak-India
trade (the two countries have informal trade of more than $ 3 billion a
year) has increased from $ 236 million in 2001-2002 to $ 1.57 billion in
2006-07, it still constitutes less than one per cent of the global trade
of the two countries. This The increasing trade deficit of Pakistan is one of the two major reasons for Pakistan not granting the most favoured nation (MFN) status to India, while New Delhi has already granted the same to Islamabad. The MFN status, it may be mentioned, is not a ;special' or 'preferential' treatment -- but normal treatment. The MFN principle requires that any trade concession -- for instance, application of tariffs -- granted to one member of the World Trade Organisation (WTO) must be extended to all other members unconditionally. Thus, MFN status means -- more than anything else -- non-discrimination among trading partners. Pakistan trades with India on the basis of a 'positive' list of products that can be imported and with the rest of the world on the basis of a 'negative' list (import of all products is allowed, except those contained in the list for such reasons as religion, morality, national security, health, environment, etc). The other major reason is the political tension between the two countries because of the Kashmir issue. Thus, reasons for restricted trade with India are two-fold: economic and political. We take the economic ones first: The basic economic argument for restricted Pak-India trade is that, despite enjoying the MFN status, Pakistan's exports to India lag far behind those of India to Pakistan. Hence, if the bilateral trade is opened, cheaper Indian goods would flood the Pakistani market. This would not only cause serious problems for the import-competing domestic industry besides large-scale unemployment, but would also increase Pakistan's trade deficit with India and, thus, aggravate the country's already difficult current account position. A related argument is that the grant of MFN status to Islamabad by New Delhi has not helped significantly increase Pakistan's exports to India, mainly because the latter maintains high tariffs, as well as non-tariff barriers, on products of export interest to Pakistan. This high, solid wall of protectionism, the argument goes, makes it difficult for exports from Pakistan to have an effective access in the Indian market; and, thus, offsets any advantage conferred by the grant of MFN status. There is an element of truth in these arguments. In case Pak-India trade is liberalised, imports from India would probably price out Pakistani products and, thus, further widen the trade imbalance. It is also true that products of export interest to Pakistan face tough market access barriers in India; and that, despite the grant of MFN status, Pakistan's exports to India have remained at a very low level. For instance, whereas average Indian applied tariffs on industrial products are 16.4 per cent, those on textile and clothing products -- which account for almost two-thirds of Pakistan's global exports -- are 20.2 and 22.4 per cent, respectively. The maximum tariffs applied by India on textile and clothing products are 268 and 103 per cent, respectively. Moreover, Indian tariffs on textile and clothing products include both 'ad valorem' -- based on the value of imports -- and 'specific' -- based on weight or volume of imports -- duties. For a country like Pakistan, which is an exporter of low-end textile and clothing products, 'specific' duties are very restrictive -- the greater the weight of import consignment, not necessarily its value, the higher the duties. Having said this, a few things, however, need to be noted: One, the grant of MFN status or even preferential treatment in itself is no guarantee that exports will register a considerable increase. The foremost condition for considerable increase in exports is their competitiveness, which is a function of both quality and price. A country's competitive advantage rests on either high quality products or their low price. Both these components of competitiveness entail essentially overcoming supply-side constraints. A country's export performance is as good or bad as its industrial performance. Hence, for increasing Pakistan's exports to India, or for that matter to any other country, supply-side constraints have to be overcome. This, however, does not mean that once the supply-side position is improved, a restrictive Indian import regime will cease to be a serious issue. Two, regarding high Indian tariffs, as well as non-tariff barriers, on products of export interest to Pakistan, the international trading system (WTO) does not specify how much tariffs or non-tariff barriers are to be reduced -- such matters are to be settled largely at bilateral level through negotiations. However, international negotiations are based on a quid pro quo. If Pakistan asks India to cut its tariffs and non-tariff barriers, the former will also have to offer the latter increased market access in the shape of MFN status. Besides, grating the MFN status to other member countries is a basic requirement under WTO rules and no country can get away with that indefinitely. Three, Pakistan has unhindered trade with China whose products are as cheap, if not cheaper, as India's. Pakistan has signed a free trade agreement (FTA) with China, under which the two countries are required to give each other duty free or preferential market access. As a result, Pakistan's trade deficit with China ($ 2.94 billion) is much higher than that with India ($ 894 million). Four, certain safeguards are available under the WTO to protect the domestic industry -- for instance, under the Agreement on Safeguards, a country can restrict imports of a product if they increase to such a high level as to cause, or threaten to cause, serious injury to competing domestic products. Imports can be restricted either by increasing the bound rate of tariffs or by clamping quantitative trade restrictions (or quotas) on them. Normally, the safeguard measure has to be adopted in a non-discriminatory manner -- against imports from all countries affecting the domestic industry. In special circumstances, however, quantitative restrictions may be applied to only one country -- in case imports from that country "have increased in disproportionate percentage in relation to the total increase of imports of the product concerned in the representative period." The safeguard measure, however, is a stopgap arrangement available only for a maximum of 10 years, during which the competitiveness of the local industry has to be increased. Five, under the General Agreement on Tariffs and Trade (GATT), a part of the WTO, a country can restrict imports to overcome balance of payment (BoP) problems. Hence, if Pakistan faces BoP problem due to a possible onslaught of Indian imports, the said article can be invoked. However, again, this will only be a temporary arrangement. Six, trade with India will yield certain advantages. For instance, it will benefit Pakistani consumers, who will be having access to cheaper goods, particularly autos and medicines; as well as industrial buyers, who will have access to cheaper capital goods and raw materials. Since India is Pakistan's next-door neighbour, lower transport costs will also reduce the cost of doing business and, thus, help increase competitiveness of the country's exports. The legalising of trade through smuggling will also enable the government to earn revenue in the form of import duties. As for the political reasons, Pakistan has in the past linked normalisation of economic relations with India with peace, especially resolution of the 60-year-old Kashmir dispute. India's standpoint, however, is that political relations between the two countries should not affect their economic relations. The Indian argument, in principle, is sound. There are quite a number of examples of countries -- China and Taiwan, the United States and the former United States of Soviet Russia, China and India to name a few -- having normal trading relations notwithstanding political tensions between them. Besides, improved economic relations between Pakistan and India will lead to creation of common stakes, which will contribute substantially to defusing political tensions. In short, normal trading relations with India will have several advantages, though one must also be alive to their possible negative effects on the domestic industry, employment and BoP position. The important thing, however, is that whether Pakistan has restricted or open trade with India, the decision needs to be made primarily on economic -- and not political -- considerations. (Email: hussainhzaidi@yahoo.com)
By Kaleem Omar Two people were talking. One of them kept saying, "You know what they say? You know what they say?" Goaded beyond endurance, the other eventually retorted sarcastically, "I have no idea who they are or what they say." If there was a hint of snootiness in that reply, it was understandable, because, when all is said and done, people are given to saying some pretty strange things, especially in the good old United States of America (USA) -- once known as the land of mom and apple pie, but now known as the land of colour-coded security alerts. "I have opinions of my own -- strong opinions -- but I don't always agree with them," said George Bush Senior, when he was president. Bush Junior, no mean slouch himself in the quotable quotes department, probably gets his penchant for silly statements from his dad. It's an inherited thing. Bush Senior had Dan Quayle as his vice-president. Before Bush Junior took centre stage on the American political scene, it was Quayle who held the record for the silliest silly quotes. "It's time for the human race to enter the solar system," said Quayle, on the concept of a manned mission to Mars. "I'm Dan Quayle. Who are you?" he said, while extending his hand to a woman during a campaign stop. Woman: "I'm your secret service agent." On another occasion, Quayle said, "It isn't pollution that is hurting the environment; it's the impurities in our air and water that are doing it." Duh. During the US 2000 presidential campaign, a reporter asked Bush Junior whether it was true that he had never been to another country. "I went to South America once," he replied. "You know, they have a lot of countries down there." The tenor of his reply suggested that this fact had come as something of a surprise to him. Quayle had his own take on South America: "I was on a tour of Latin America, and the only regret I have was that I didn't study Latin harder in school so I could converse with those people." One can only hope that Bush Junior has taken a leaf from Quayle's book and is swotting up on his Latin, though it's probably too late now -- in the last year of his presidency -- to make any difference. During his first campaign for the presidency, Bush Senior said, "I want to make sure everybody who has a job wants a job." Quite. I mean, we don't want to be giving jobs to people that don't want jobs. "Now that the president has admitted wrongdoing, he should resign," said Bill Clinton, referring to Nixon's involvement in the Watergate scandal of 1972. Clinton's words were to come back to haunt him 27 years later when the Monicagate scandal broke. So did he resign, like he had said Nixon should? No, of course, he didn't. He decided to brazen it out and complete the remainder of his second term. Hollywood actress Brooke Shields is a beautiful woman. But when it comes to silly statements, she's right up there in Bush Junior's league. "Smoking kills," she said. "If you're killed, you've lost a very important part of your life." Truer words were never spoken. H Ross Perot, the Texas billionaire who has been described as a hand grenade with ears, and who jumped into the US 1992 presidential campaign as a spoiler against Bush Senior, said, "This planet is our home. If we destroy the planet, we've destroyed our home, so it is fundamentally important." Perot's remarks suggest that he and Brooke Shields may have been exchanging notes. When Jerry Brown, aka 'Captain Moonbeam', was governor of California in the mid-1970s, he said, "The private enterprise system indicates that some people have higher incomes than others." If he hadn't said so, we would never have known it. Could it be, then, that he, too, has been exchanging notes with Brooke Shields? Be that as it may, the good news is that Brown is now said to be thinking of running for governor again. The late Gerald Ford (remember him?) was once president of the United States. It was said that he was solid cement between the ears. "Things are more like they are now than they have ever been," he said. What that meant was anybody's guess. While running against Franklin Delano Roosevelt in the US 1936 presidential campaign, Kansas governor Alf Landon said, "Wherever I have gone in this country, I have found Americans." If former US Secretary of Defence Donald Rumsfeld ever decides to run for the presidency, he would probably say, "Wherever I have gone in this country, I have found al-Qaeda." Senator Barbara Boxer, a California Democrat, said, "Those who survived the San Francisco earthquake said, 'Thank God, I'm still alive.' But, of course, those who died, their lives will never be the same again." She sounds like a cousin of Brooke Shields to me. Maybe Brooke Shields, Bush Junior, Dan Quayle, Ross Perot, Jerry Brown and Barbara Boxer are all related with each other. If they decide to form a law firm, they could call it Duh, Duh, Duh, Duh, Duh & Duh. "A low voter turnout is an indication of fewer people going to the polls," Quayle said. Quayle's immortal words should be engraved in stone on the offices of the Election Commission of Pakistan. Miss Alabama of 1994 answered a question this way at the Miss Universe competition, "I would like to live forever, because we should not live forever, because if we were ever supposed to live forever, then we would live forever, but we cannot live forever, which is why I would not live forever." If I'd been one of the judges at that competition, I would have given Miss Alabama first prize.
A fresh perspective The involvement of great powers in Indo-Pak disputes is a serious threat to peace in the region. By Zaman Khan Professor Dr Mussarrat
Abid was born in Lucknow and her parents migrated to Lahore in Dr Mussarrat Abid did her master's in History from University of the Punjab in 1974 with distinction. She got her PhD degree from Leeds University, the United Kingdom, in 1986. She has three books and more than 20 research articles to her credit. Some of her major research articles include: Anglo-Pakistan Relations, Quest for Democracy in Pakistan: Role of Fatima Jinnah and the Cultural Heritage of the Mughals. Most of her research published in the form of articles is related to Pakistan's history and politics, to which she has brought a fresh perspective in her own right. Dr Mussarrat Abid has a rich teaching and research experience. Since March 2003, she has been working as director of the Pakistan Study Centre, University of the Punjab, Lahore. She is also chief editor of Pakistan Vision. Currently, she is busy in conducting research for an important research project on Kashmir. The News on Sunday interviewed her recently. Excerpts follow: The News on Sunday: Are you satisfied with the history textbooks and the teaching of history in Pakistan? Dr Mussarrat Abid: I have yet to come across a person of my field who can honestly reply in affirmative to this question. Most historians are not satisfied with what is being taught in the name of history in our schools, but this has finally been realised by the people in authority and there have been several good changes in the recent past. TNS: Would you like to tell us something about the Pakistan Study Centre? MA: The centre was established in 1981, but initially it had no proper physical infrastructure of its own. It shifted to its current building in 2003. The centre has been undertaking research on themes related to Pakistan's history, politics, foreign affairs, economy, culture and languages; and has so far published 34 books -- the most recent one being entitled East Indian Immigration to Canada. TNS: What are some of the other activities being undertaken at the centre? MA: The centre organises seminars and conferences on a regular basis. Last year, we arranged an international conference on Perspectives on Religion, Politics and Society in South Asia. Delegates from the United States, Britain, Germany, India, Iran and Pakistan presented their original research work at the two-day conference. The centre has started offering MPhil and PhD degrees in Pakistan Studies, and has also established links with a number of other research institutions. In particular, it has developed an exchange of publications programme with other research institutions. The centre's library has an extensive collection of books, journals and newspapers. It is also publishing original research works in the shape of books and monographs, as well as in its bi-annual research journal, entitled Pakistan Vision. TNS: Would you like to tell us about the Anglo-Pakistan relations, the topic of your doctoral research? MA: The main purpose of my research was to examine the Anglo-Pakistan relations. Major problems related to the subcontinent's partition, such as the Radcliffe Award and the communal violence in Punjab, were also part of my research. Similarly, Indo-Pak conflicts, amongst which Kashmir was the main, were part of my study, which also examined the effectiveness or otherwise of the British role. The main conclusion of my research was that the Anglo-Pakistan relations were gradually turning sour because of a number of factors. The most important was the policy of the two countries with regard to India. While Pakistan saw India as its prime enemy, Britain was anxious to foster good relations with it. Both Pakistan and Britain had strong reasons to back their respective policies, and since they were unable to change them, their relations suffered. Though the 'Indian factor' affected relations between the two countries to a great extent, it did not stop them from cooperating with each other in various fields -- economic, defence, political, etc. We all know it is in the best interest of South Asia that India and Pakistan resolve their differences and, if possible, work together in all fields because economic well being of the masses is important for both. The involvement of great powers in Indo-Pak disputes is a serious threat to peace in the region, but they seem to have no desire to antagonise India. When I went to Britain for my PhD, most works by Indian, as well as by some other important Western, historians suggested that the creation of Pakistan would not have been possible without the British good will, and that the British and the Muslim League had worked hand in hand for the division of India. I provided sufficient evidence, from the unpublished official British record, that this was a wrong assumption. In fact, the record of dealings between the British and the Muslim League in 1946 and 1947 shows quite the contrary in many important respects. My PhD research was not a study of events that led to the partition of India; rather, I focussed on points of disagreement between the British and the Muslim League. I provided sufficient evidence to prove that the two had opposite viewpoints regarding solution of almost all partition-related problems. TNS: Were any injustices meted out to Pakistan at the time of partition? MA: Many injustices were meted out to Pakistan at the time of partition. Pakistani historians often hold last British Viceroy Lord Mountbatten responsible for all of these, with some justification. In my research, I criticised the British government for allowing Mountbatten to stay in the subcontinent as the governor-general of India. Having accepted the post, he could not have been expected to act impartially on Indo-Pak affairs nor was it reasonable to think that the Indian government would have allowed him to be impartial in respect of its interests. It was nearly impossible for Mountbatten to remain impartial while deciding upon important partition-related problems. Not unexpectedly, some of his decisions -- such as to send Indian troops to Kashmir in October 1947 or the take over of Junagarh State by India -- were seen in Pakistan as an evidence of his bias in India's favour. TNS: What are you currently conducting research on? MA: These days I am busy conducting research on the Kashmir issue with a focus on Pakistan's policy in this regard. I am trying to find why this dispute has persisted for so long to become one of the longest outstanding issues in the world. The public opinion in Pakistan is critical of the international community's failure to condemn the continuous violation by India of the United Nations resolutions on Kashmir. This policy, in Pakistan's view, is unfair and reflects injustice. It goes without saying that settlement of the Kashmir dispute will lead to durable peace and prosperity in South Asia. TNS: How do you feel being wife of another historian? MA: I feel lucky, though we do not agree with each other on all issues. We also criticise the research being conducted by the other, but in the end get good suggestions for improvement. TNS: Do you face any problems being a woman? MA: Yes, being a woman does pose certain problems at times, not just in Pakistan but also in the so-called developed world. It is true that the women, being physically weak, face some challenges, but they cannot be stopped now from getting their due share in the society -- they are progressing slowly, but surely. Being a woman, I faced fewer problems than my mother did and I am sure that my daughter will have to tackle much fewer challenges than I had to. The most common problem the women face in our society is the contradictory attitude towards them. Certain segments of our society would extend respect to working women, but would not allow their own women family members to do jobs. TNS: How do you view the current status of women in Pakistan? MA: There is an ongoing debate in Pakistan on the status of women in society. The conservatives believe in subordination of the women and would like to confine their role within the four walls, but forces of change are getting stronger with each passing day. Traditionally, Pakistani women drive their status and strength from their family. The socio-cultural status of Pakistani women varies due to various factors -- rural-urban divide; uneven socio-economic and political environment; and, most importantly, class system, and tribal and feudal structures. Women friendly policies by the government or movements by civil society orgnisations alone cannot ensure a better status for the women in society; for this, attitudes have to be changed!
Terrorist attacks have resumed after the elections, with arguably even more intensity than before By Aasim Sajjad Akhtar In the immediate
aftermath of the February 18 general elections, there was a fleeting sense
that the indiscriminate violence that had coloured the lead-up to the
polls would subside, that some semblance of peace would be restored with
the defeat of Pervez Musharraf's King's Party. One was even inclined to be
moved by a statement printed in But the lull was too good to be true. The violence soon resumed, with arguably even more intensity than before. The figures tell their own story; in 2007 and now in 2008, the frequency and impact of what in common parlance has come to be called the 'suicide attack' have increased dramatically. It is sad that the majority of Pakistanis who have not yet been confronted with the trauma of such violence have become numb to it; the blowing up of innocents by 'suicide bombers' has become an everyday event that does not evoke the outrage that many believe it should. On the one hand this reaction, or rather lack of it, can be explained as a reflection of the alienation of many from the larger society. But this seems rather simplistic -- even if the community ties of old are being worn down by the imperatives of capitalist modernity, it seems a bit of a stretch to suggest that cold-blooded violence would not stir up feelings of anger or compassion. A more plausible explanation is that more and more people are suspicious about the role that the state -- or at the very least fragments of it -- are playing in perpetrating such attacks. Thus the confusion over who is ultimately responsible for the violence means that the reaction to it is muted. Of course the fact that one cannot be sure about who commits a crime does not preclude condemnation of the crime itself. But nevertheless it is important to understand that there is a growing cynicism within the wider society about the state's continuing manipulations of Islam and particularly of jihad. This then means that 'suicide attacks' are viewed very differently than if they could unequivocally be attributed to the so-called jihadi organisations that operated autonomously of the state. The most obvious example of this is Benazir Bhutto's assassination; both the government and international media insisted that she was killed by jihadis, while the majority of Pakistanis were convinced that this was the handiwork of the establishment. In any case the perceptions of most Pakistanis towards the notion of jihad and the violence that is invoked in the name of Islam are not that difficult to garner. Generally, religio-political movements have limited support within the wider society. This has been proven most emphatically at the polls, and is also reflected in wider societal norms and cultural practices. Religio-political movements have been given a great deal of space to ply their trade within society over the past three decades, and while their influence is immeasurably greater than it was before the beginning of the Afghan War, it remains somewhat superficial. The second and related point is that most Pakistanis are firmly against the kind of indiscriminate violence that has paralysed urban centres across the country for the most part of the last year. They may not voice this opposition vociferously, at least partially because they do not have the means to do so, but they are less and less convinced that violent jihad represents the path to salvation. In other words, even if the state was not thought to be complicit in violence, ordinary people would be unlikely to give sanction to it. The shameless manner in which the Musharraf dictatorship has subverted all democratic freedoms in the past year has meant that the energies of virtually all pro-active progressive forces in Pakistan have been spent protesting against the military regime. These protests have not targeted only Musharraf or demanded only the restoration of the deposed judiciary per se, but have also -- implicitly or explicitly -- demanded accountability of the military establishment more generally. Given that it has been this establishment that has nurtured the menace of jihadi violence and that this establishment has clearly not broken with its proteges -- regardless of its proclamations on the world stage -- the lawyer-led movement for democracy and the fight against the genie of jihad should not be thought of as mutually exclusive. It is true that jihadi violence will not vanish with the establishment of a democratic process, or an end to the so-called 'war on terror'. But it is also true that reducing the space for the military establishment to wage its secret wars is a first step in the right direction. Having said this it is also important to recognise that religio-political movements have enormous resources at their disposal to continue churning out jihadis regardless of how much organic support the latter enjoy in the wider society. Exposing the links between the ideological breeding grounds for jihad and the establishment, and ending state sponsorship for jihad, is necessary but not sufficient. At the same time, it is impossible to expect that the political and social vacuum that was created by the state for the ideology of jihad to take root in society can be filled by progressive forces just because it should. This will take time and, once again, the best bet is the promotion of democratic freedoms so that young people actually have options to articulate themselves beyond jihadi organisations. There are, of course, many more deep-seated problems that need to be solved. For example, there are three completely distinct systems of education that exist in Pakistan today. The majority of children attend Urdu-medium public schools, while a very small minority attends English-medium private schools. And then there is the madrassa system, which caters to the many that do not find space in even the public school system. Even if not all madrassas are linked to the jihadi juggernaut, many at least lay the ground for it. In the Federally-Administered Tribal Areas (Fata), there is the very real fact that local communities accept jihadi groups because they offer some semblance of normalcy to a society that has been ravaged by uncontrollable violence. In other words, just like the Afghan Taliban made their name by promising relative peace, in Pakistan's tribal areas too jihadi organisations fashion themselves as harbingers of order. In this calculus, the society does not necessarily support jihadis as much as it looks upon them as the lesser of various evils. In any case, undoing the processes that the state and its international patrons have systematically institutionalised in the Pakistani society over the past 30 years is not a short-term project. In the first instance, we must trust that the society has limited tolerance for violence and obscurantism, and then force the state to overturn its 30-year-old policy of instrumentalising jihad. Undoing the jihadi culture that has been inculcated in the Pakistani society will take time and patience, and it will not be painless. But as with so many other urgent tasks in Pakistan, there is no other choice.
The government needs to revisit its policy and approach to provide the people with better travelling facilities By Dr Noman Ahmed During a news briefing last month, a senior official of the Planning Commission conceded that vital transportation issues faced by the country's big cities are not being addressed through the various projects undertaken so far. One feels that the most significant shortcomings have been in the domain of mass transportation. For instance, projects like procurement of 8000 compressed natural gas (CNG) buses for Karachi, initiation of apposite mass transit programmes in Karachi, Lahore and Rawalpindi, and development of ancillary facilities for public transport have hit snags for several years.
It is disappointing to note that, instead of revisiting its policy and
approach towards the Many issues need to be considered before formulating policies, programmes and projects in the transport sector. There is a general misconception that increased automobile production and ownership is an indication of prosperity and improved lifestyle. Automobile operations are a reflection of incentive-based policies towards import and manufacturing of cars. Consumer finance schemes, augmented by a high liquidity regime, have supported this trend. Cars account for less than one tenth of total commuter journeys in Karachi. The figures are not very different for other big cities. Cars contribute to enhanced occupancy of road space, pressure on urban land for parking spaces and other service functions, unwarranted sub-urban development, and financial burden in terms of rising petroleum import bill. At the same time, the lesser privileged take a fancy to motorcycles, bulk of which are imported from a friendly neighbouring country. Municipal investments are solely done in roads and highways development in order to facilitate the operations of this private fleet. Options of commuting for non-owners of vehicles are becoming constrained with each passing day, as already scarce developmental allocations are being diverted to roads, highways and expressways. The decision-makers first create problems by introducing half-baked projects and then attempt to solve them by equally ill-conceived projects. It is a lose-lose situation for the common people, who depend on transportation choices either provided by the state or the private sector. Public transport planning has continuously been affected by myopic ideas that lack scientific analysis. For instance, several studies and consulting outputs have proved that indigenously developed urban railways are appropriate for mass transportation in mega cities like Karachi. The city used to have a circular railway system in the 1970s that accounted for almost 10 per cent of passenger trips. Due to gradual shift of emphasis towards road-based choices and poor management, the level of service declined and eventually led to suspension of its operation in 1996. Since then, the city dwellers have been subjected to false promises of the revival of the service. Researches have indicated that the right of way of the circular railway system is slowly being usurped by organised land-grabbers. If this neglect persists, Karachi shall soon lose the 'at grade' railway track that still passes through key residential and working locations. With overpasses and underpasses accordingly aligned, railway can shoulder a sizable passenger load at affordable costs to the government and the commuters. Most of the mega cities in the world have a functioning railway system as an integral component of transit networks. Mumbai and New Delhi already possess well-developed railway networks. In Kolkata, tramways are another useful mode along with railways. These basic railway and public bus combinations -- not the fancy light rail transits -- keep these cities working. It is common sense to learn from such affordable and easy-to-implement options rather than the flashy and outlandish technologies that are routinely promoted by the powers-that-be -- the cost of Lyari Expressway was enough to procure more than 10,000 CNG buses besides revitalising Karachi's circular railway system! Decisions related to infrastructure are greatly affected by economic considerations and the transport sector is no exception. Economic wizards working for dictatorial regimes normally juggle magic formulas to justify grandiose projects. In reality, such projects do not even meet the standards of common sense. A country, where car ownership is less than 20 per 1,000 people, cannot justify unabated spending in the road and highway sector. Sustainability of transportation infrastructure can only be ensured if the appropriate balance is applied between various modes, as well as the patterns, of urban and regional development. Sprawling cities, staggering 'ribbon' development along highways and inter-city links, and inappropriate choices of modes and technologies are some factors that continue to impede the performance of urban transportation in Pakistan. According to a study, the urban poor end up spending at least one fourth of their monthly earnings on commuting. It is hard to imagine that these people will ever be able to improve their living conditions due to a perpetually captive lifestyle. Pakistan's decision-makers need to come down to the ground to realistically analyse the problems of the transport sector. Planning for the 'doable' must be the starting point. Karachi and Lahore are in the ripe phase for an indigenously developed mass transit system. The focus of planning must include the separation of through and local traffic; facilitation of non-motorised transport; protection of pedestrian infrastructure; financial regulation of the automobile sector; and co-ordination of fares in multi-modal commuting for sub-urban dwellers.
Lights, camera, action: for a cause The coverage of health issues by the Pakistani media needs to be improved drastically By Dr Zaeemul Haq "This is BBC
news," said the broadcaster reading news from around the world. It
was a The three-and-a-half-minute video ended with Buerk's comment, but the news room fell silent for what appeared to be many hours. It took some time for the newscaster to recollect from the awe and move on to the next news. Same happened with the viewers at home. They were able to shed the shock and move to the call for action, but only after some time. The clip was followed by an announcement for donations to be sent to Ethiopia. Phone calls kept ringing till late at the BBC as individuals offered donations. All this and more happened in 1984 and a couple of years that followed. NBC's bureau in London conveyed the news report on the Ethiopian drought to New York by satellite for inclusion in the evening news on the same day. October 23 was just a month before the US presidential elections and the evening news were already packed with political stories. The NBC anchorperson, Tom Brokaw, saw the striking footage from Ethiopia and decided that it had to be included in the evening's news show. The segment was broadcast. Telephones at the headquarters of Save the Children, an international non-governmental organisation (INGO) mentioned by Brokaw on air, started ringing immediately. Massive news coverage of the Ethiopian famine followed in the New York Times, the Washington Post and other national media in the United States. Channels like NBC, CBS and ABC quickly dispatched their teams to Ethiopia. The US government and INGOs quickly joined in the relief efforts. Tens of millions of dollars were raised for food aid. The process continued for the next two years. A short documentary, which had an audio-visual punch, received an immediate positive nod from the desk-editor and brought forward an issue that was discussed throughout the world for quite some time. The history is replete with examples when the media brought an issue on to the public and policy agenda so strongly that it became a political agenda as well. The drunk-drivers campaign following the killing of a Boston TV anchor by a drunk driver, the HIV/AIDS campaign after the death of Hollywood star Rock Hudson and the 'Just say NO to Drugs' campaign of the 1980s are a few examples. The media in Pakistan, on the other hand, has had a different approach towards health. Barring the sporadic coverage of the dreaded Congo fever, SARS, Avian influenza or a possible outbreak of plague, the media mostly appears silent and waiting for the 'story' to come. An exception was the Kalalanwala incident in which a wire-manufacturing factory was polluting drinking water with excessive fluorides in a village near Lahore, causing bone deformation and degeneration in children as well as adults. In response to the extensive media coverage, the government had to adopt immediate remedial measures to solve the problem. There are many other issues waiting for the media to adopt a pro-active approach and to see the storm before it actually knocks at the door. By keenly observing the unhealthy behaviours of the people, the crippled health system and the rundown health facilities, one can highlight many issues and help the cause of better health care for the masses. One can easily spot vendors selling cigarettes to teenagers near or within the vicinity of their educational institutions, though it is prohibited under the law. Cigarette companies target these teenagers in order to engage long-term consumers and sustain their business. They sell disease because it brings profits to them! Countless licensed and un-licensed allopathic and homeopathic practitioners, as well as hakeems, can be seen using a single syringe to give injections to many patients. This practice of saving (less than) five rupees for a syringe can be a major reason for the spread of deadly diseases like Hepatitis B and C and HIV/AIDS. A large number of chemists can be seen both prescribing and selling those medicines that even specialist doctors prescribe cautiously. These and many more issues are waiting for the media's attention. The current maternal, newborn and child health situation in the country is another important issue that needs to be highlighted by the media. Today, Pakistani mothers and infants are facing a situation worse than the Ethiopian famine. A mother dies every 20 minutes while in pregnancy or while giving birth to her child in Pakistan. Similarly, a child less than a year dies every two or three minutes in the country. This is a 'story' much bigger than the African famine, because it has been happening for decades as opposed to the famine that spanned a few years only. One can say that lives equal in number to the passengers of a Jumbo Jet are lost every day, but no one reports this plane crash. An earthquake rocks more than 5,000 households on a daily basis, but there is no Richter scale to pick this jolt. A Tsunami happens to 15,000 families every month, yet fails to make it to the 'breaking news'. These mothers die because the health facilities provided by the government are highly inadequate. Finding no place there, 80 per cent of these mothers are subjected to untrained birth attendants, who do not follow any protocols and cannot identify danger signs. This is compounded by inadequate diet, as well as the unhealthy behaviours and unsupportive attitudes at the household level. Deaths of the little babies occur mostly because the unskilled birth attendant cannot ensure breathing, temperature maintenance and proper hygienic conditions. Small steps can prevent many of these untoward incidents, but the voices of sufferers are small and remain unheard mostly. To ensure these small steps, a large contribution is required from those whose voice is heard loud and clear. The Pakistani media has contributed some important things, but the country needs more. These dying mothers and infants are looking for their Buerks and Brokaws in Pakistan. Do we have some? (The writer works with Johns Hopkins University Center for Communication Programs. Email:
drzaeem@hotmail.com) No progress Oil production in Pakistan has remained stagnant over the years because of a number of reasons By Saud Khawaja By the late 1980s, the
world petroleum activity had declined from a cyclical peak, but Pakistan
seemed to be booming with drilling activity; and the country's oil
production It is fashionable to criticise government policies for the stagnation of oil production, but the fact is that our petroleum policies are much more liberal today than they were two decades ago. The next most common reason cited for the stagnation of oil production is political uncertainty. Once again, regardless of political upheavals and changes in government, neither did the drilling activity stop nor did it go into a downwards spiral. A few other reasons -- ranging from conspiracy theories to lack of abundant petroleum reserves or lack of investment in the petroleum industry -- are also cited to rationalise the stagnation of oil production. The scribe's views, however, are different, as elaborated in the following: Two decades ago five operating companies -- three local (OGDC, PPL and POL) and two American (Occidental Petroleum and Union Texas) -- were actively involved in drilling of oil wells in Pakistan. In comparison, today there are more than 20 operating companies. The major ones among them include: OGDCL, PPL, POL, BP, ENI, Petronas, Dewan Petroleum, PEL, Mari Gas, OMV, MOL and New Horizon. This significant increase in the number of operating companies (both local and foreign) in Pakistan negates the reasons commonly cited for the stagnation of oil production in the country. It is easy to blame factors that are not in one's control. The hard part is to be pro-active and to focus on an inward analysis, to find out the underlying factors that have contributed to the stagnation in oil production in Pakistan for two decades. Instead of 'lack of', I will use the words 'great need from' and 'room for improvement'. It is just a matter of thinking and a type of source paradigm. In fact, there is 'no lack of' in Pakistan. After analysing the problems that are contributing to the stagnation of oil production in Pakistan, the following main factors have been identified: Human Resource Development (HRD): In the field of oil, HRD can be divided in two categories: Human Resource Technical Skills Development (HRTSD) and Human Resource Management Skills Development (HRMSD). In Pakistan's petroleum industry, it takes seven to 10 years of working in the field before a technician or an engineer gains enough experience to become a staff engineer; and starts making technical contribution to enhance cost savings, operational efficiency and, ultimately, oil production. Also, once a technician or an engineer develops sufficient set of skills that are marketable internationally, overseas recruiters quickly grab him, offering him four to six times of his salary in Pakistan. This is undeniably a great opportunity for the individual and also benefits Pakistan, on account of foreign exchange earnings. This flight of technological skills abroad, however, creates a void in the local petroleum industry. The Pakistani technicians and engineers working abroad have proven time and again that the skills developed in the local petroleum industry meet the international standards. There is also a great need for accelerating HRTSD at a wider and more advanced scale, to ensure that the void created due to the flight of technological skills abroad is quickly filled. Lagging application of advanced technology: Some of the practices -- such as well drilling and construction, well intervention and production stimulation, and reservoir modelling, description and management -- are behind the international time curve because of two main reasons. The first is directly related with the need for HRTSD. As described above, the flight of seasoned manpower abroad results in a void in the local petroleum industry. When juniors with insufficient training and experience replace seasoned professionals, who had the gusto to stand on the well site and make crucial decisions, naturally a barrier is created in the way of application of advanced technology. Therefore, the pace of technical training should be increased for HRTSD at a grand scale. This is needed not only to fill the void created by the flight of technical personnel abroad, but also to elevate the threshold of skills and technical knowledge of the remaining workforce. The second reason is the need for HRMSD, as training structure for petroleum management is almost non-existent in Pakistan. The petroleum technology has developed by leaps and bounds over the past two decades, but the technical gap between staff engineers and the management has also widened. Often a new technological process that can enhance oil production involves expenditure of at least a few millions dollars. The feasibility studies are done by staff engineers at a very fast pace -- while the oil well is being drilled, the window of opportunity for the application of advanced technology is often very small. The critical thing here is making quick management decisions. Thus, it is of utmost importance that HRMSD is done in such a way that will help in real-time application of technology and ultimately result in a major boost in oil production. Positive balance between supply and demand of oil field hardware and material: The price of oil hit an all-time high of $ 108 per barrel this week. Worldwide increase in the demand for oil has created shortage not only of human resources, but also of oil field equipment, spare parts, chemicals and other materials. This is a universal problem and is specific to a particular country. The shortage of supply, however, has played a major role in hindering oil production in certain countries, including Pakistan. (The
author is president of Falcon International Inc, US. Email: saud@fpcbh.com) education An uphill task Overcoming unemployment with the sort of curricula being currently taught in Pakistan is easier said than done By Rehan Khan Pakistan increased its
defence budget for the financial year 2007-08 by 12 per cent to $ 4.1
billion, or almost three per cent of its gross domestic product (GDP).
With the There are three key steps to policy formulation: first, focus on the existing structures and stakeholder feedback; second, identification of the objectives and analysis of whether the system is capable of achieving them or not; third, authorisation of the policy through a political process, such as legislation or regulation. If this is not possible, then a well-planned alternative plan of action, in which the government demarcates its workings, should be decided upon. All these steps also apply to educational policies and they should be treated accordingly. Education, according to one view, is an investment made for higher income. This argument, however, is dogged by the content and the quality of the education that is being currently imparted in Pakistan. While many a management theory focusses on the importance of motivation of the employees, in our education system the teacher is at the receiving end. Educational institutions pay little heed to seminars on pertinent issues or extra-curricular activities. Recognising the dismal quality of the education system, the financially strong students prefer to go abroad for higher education. As a result, the less fortunate students, who cannot afford to study abroad, face an uphill task to compete with the foreign educated ones. When the graduates enter the market, with an ever-shrinking rate of absorption, they are faced with unemployment, as provisions for adequate internships are not integrated with their studies. Under the umbrella of economic development, the powers-that-be promise a continuous stream of employment opportunities to the masses -- but this promise is never fulfilled. The only reason that educational targets are not being met in Pakistan is the lack of schools. However, only opening more schools, prescribing non-market related curricula and making education compulsory is not the right approach. It is common sense that people, educated or otherwise, direct their actions where they realise the promise of return in monetary terms. The poor, therefore, identify opportunities abroad and emigrate to make the best use of them. On foreign soil, more often than not, they see the value of education and spend both time and money to increase their qualifications, as this improves their chances of getting better jobs. Sub-standard schools and curricula infatuated with religion will not allow the people to improve their job prospects. One way to overcome this problem is to focus on demand-driven education. Corruption too has played havoc with our education system. Analysts and academics keep on criticising this situation, but they offer no workable solution. The government here can take the initiative by building more schools and by removing syllabi that have neither worked in the past nor are likely to work in the future. One solution can be to reform our education system along the lines most other countries have done. In this globalised world, we cannot afford to provide our future generations with obsolete and sub-standard education, as this will have far reaching effects on the economy. The advances by the West in the education system are unparalleled in human history and moulding ours along similar lines will only make it more efficient. The level of education is directly proportional to the capacity of the educators. In most countries, all teaching decisions are left to the teachers, as they are closest to their subjects and developments therein. The teachers make key decisions in the education system -- curriculum design, teaching methodology, grading criteria, etc. In the Pakistani context, this means backtracking of the centralised syllabi decisions, thus allowing the teachers more autonomy. The educators should also be responsible for all related decisions, such as hiring, promotion and salary of the teachers. Our current education system does not treat teachers well and, as a result, the most qualified people refrain from joining the teaching profession. In the wake of this, those who become teachers are not interested in education and are a hindrance to quality education themselves. The government, therefore, must pay the teachers well and give them adequate prestige to make teaching an attractive profession. All education systems should be based on performance appraisals. The father of the study of human resource, Fredrick W Taylor, spent an entire lifetime studying these theories. Adopted by the West, it has done wonders, especially after the Industrial Revolution. Performance of educational institutions is judged by the quality of teaching imparted, the number of students attracted, and the facilities provided for education, such as libraries and teaching materials. One key factor in promoting healthy competition in the education system is to provide incentives for higher performance. Every educational institution in the public sector receives an annual grant from the government, which should be tied to its performance. Moreover, transparency must be ensured at all levels of implementation. The West has realised the advantages of nurturing diversity among the employees, as it brings to fore a variety of ideas. All educational institutions cannot be termed ineffective or effective at one time. Sticking to this school of thought will lead the education system towards efficiency. If facilitated, the upper segment of students and faculty will spring towards higher performance, while the lower segments will try to catch up and will ultimately improve. Competition amongst educational institutions is perhaps the easiest way to ensure quality education, and an innovative one at that. Privatising the educational institutions will allow only the quality-driven ones to survive. Thus, following the premise that the value and content of education is market-driven, the students will gain -- they will have an option of choosing which institution to join. This also means that centralised decision-making by the Ministry of Education will only hamper the growth of educational institutions. Giving a free hand to the autonomous ones will promote innovation and healthy competition. The most important starting point is to change the management of our education system. The very real threat of brain drain needs to be curbed, as the path to true reform lies in inducing professionals with credible academic record in the international market into the country's education system. Also, educational institutions must be granted autonomy with no government interference and their governing bodies should comprise industrialists who will hire the graduates themselves. (Email:
rehankhan82@gmail.com)
There is urgency for action at the governmental level to encourage industries to adopt compliance standards By Alauddin Masood In today's economically
integrated world, countries that have strengthened their links with the
global economy through trade and investment have generally grown more
rapidly over a sustained period of time. One of the major impediments in
the way of low-income In fact, a host of international protocols and conventions in these areas bind all countries to frame rules and regulations regarding implementation of social standards and ensuring their compliance at work places. Like other members of the global community, Pakistan is also a signatory to a number of international protocols and conventions on social standards, and it has also in place the attendant legislation corroborating to most of those international standards. But, till recently, most business concerns in the country have given a lukewarm response to the implementation of the relevant rules pertaining to social standards, while the concerned field staff has neglected their proper implementation. The apathetic attitude of the two has resulted in colossal revenue losses to the country. To illustrate the point, one may cite the example of a Sialkot-based sports firm. The firm used to export annually soccer balls worth two billion rupees to the Nike Inc, but the international buyer cancelled the order last year due to its non-compliance with labour and social standards. Similarly, the problems faced by Pakistan with regard to export of seafood, fruits and vegetables indicate the major challenges of quality, product safety, food handling and other manufacturing standards, the compliance of which is essential to remain competitive in the global arena. One must bear in mind that even the informal and agriculture sectors are now being increasingly covered by these global standards. An example is the Better Cotton Initiative, started by the major garment importing companies who intend to improve the standards at the tail end of their supply chain. Broadly speaking, these social standards address issues like workers freedom of association, occupational health and safety, forced and bonded labour, child labour, social security, labour inspection, tripartite consultation, vocational guidance, employment policy, women's employment, non-discrimination, wages, work duration, maternity, etc. Occupational health and safety, in particular, is a key concern in the buyers' code of conduct sourcing their products from Pakistan. The main reason for this emphasis is the close link of health and safety with the workers' rights protected in the labour laws of the developed world. However, occupational health and safety is also closely linked with productivity and investment, as well as the welfare and safety of the workers, who often meet grave accidents at work places. In 2005, the International Labour Organisation (ILO) estimated that globally about 2.2 million people die every year from occupational accidents and diseases, while about 270 million workers suffer serious non-fatal injuries and another 160 million workers suffer from short- or long-term illness from work-related causes. The total costs of such accidents and ill-health have been estimated by the ILO to amount to approximately four per cent of the world's gross domestic product (GDP), an amount that is over 20 times more than the official development assistance received by the developing world. This explains the cause for growing pressures on Pakistani business enterprises to stay competitive in a world economy that puts increasing emphasis on labour, environment, and safety and health of workers. The current dictates of the international trade also illustrate the urgency for action at the governmental level to encourage industries to adopt social compliance standards. Consequently, there is now a growing realisation in the country that the industrial, commercial and agricultural sectors need to be made aware of the challenges and issues faced or likely to be faced by them if they intend to remain competitive and increase the country's exports, which have stagnated for the last couple of years while the imports are constantly rising. This realisation, though quite late, augurs well for the country, especially since the ever-widening trade deficit (which has already reached an all-time high) needs to be arrested fast. To address these issues, the Government of Punjab has chalked out a Private Sector Development Programme as a core component of its policy reform agenda under the Punjab Resource Management Programme and the Punjab Government Efficiency Improvement Programme, focussing on a communication strategy for the promotion of core labour, as well as environmental and quality standards, by bringing on board various federal, provincial and international agencies through seminars / workshops and launching of a website on compliance issues. The programme has been based on the premise that increase in the awareness level of business community regarding labour, environment, and safety and health of workers shall definitely increase the volume of national exports and the export revenues on the one hand and would contribute to improving the socio-economic conditions of workers and the country's image abroad on the other. However, the business enterprises in Pakistan are currently faced with a two-pronged problem: 1) lack of capacity to handle the costs associated with compliance of international standards on labour, environment and quality; and 2) significant cost of non-compliance. Experience and studies reveal that in the modern economy the costs of non-compliance can be more damaging for business concerns, thus there is a dire need for educating the business community about the cost issues related to compliance and the negative and far more damaging fall-out of non-compliance with social standards. Since the product and process quality systems and product specification standards also play a major role in the global trade, the producers of goods need to be familiarised with the quality-related issues, as well and their link with the productivity, competitiveness, value addition, consequent enhancement in the export potential, and business growth. Major issues related to quality pertain to areas of standardisation, conformity assessment, accreditation, grading, health and safety. All stakeholders, both in the public and the private sector, in all the provinces and regions of the country, need to be taken on board, so that these issues could be addressed in the right earnest and with the seriousness that they deserve. We must remember that in the contemporary world, the volume of exports and foreign exchange reserves determine the economic strength of a country. The greater the volume of exports vis-a-vis imports, the greater the strength of a country. (The
writer is an Islamabad-based freelance columnist. Email:
alauddinmasood@gmail.com)
Successive governments have not paid the attention to this vital sector that it deserves By Sibtain Raza Khan Small and medium
enterprises (SMEs) are considered engine of economic growth, as they
provide low cost employment -- the unit cost of people employed is lower
for them in Currently, there are around 3.2 million SMEs in the country. They employ 80 per cent of the non-agricultural labour force, contribute 25 per cent to manufacturing-related export earning, have 35 per cent share in manufacturing value and almost 40 per cent share in the annual gross domestic product (GDP). Moreover, there are about 80,000 SMEs concentrating on trade and services, while there are still other significantly contributing to the informal sector. Though these SMEs are contributing positively to the national economy, their efficiency is constrained by financial, technical upgrading, marketing, regulatory procedures, risk management, human resource training and others development issues. Different governments, however, have taken various initiatives to improve the state of SMEs, and to create conducive environment for their growth and development in the country. One of these initiatives is the establishment of the Small and Medium Enterprises Development Authority (Smeda), which was established in 1998 under the Ministry of Industries and Production with a view to support the development of SMEs in the country. For improving the policy formulation and implementation, an SMEs Task Force was also constituted in 2003, which was composed of all the major stakeholders of the private as well as the public sector. The main aim of these bodies is to create public-private partnership, as well as to create a favourable business environment for SMEs in Pakistan's economy and to eliminate unnecessary obstacles hindering the productivity of this sector. Despite the fact that Smeda has been engaged in different projects for the uplift of SMEs -- for instance, development projects in the area of boat modification in the marine fishery sector, credit for auto vendors, carpet weaving, marble and granite, dates and apples processing, wooden furniture, leather garments, ceramic kilns, cotton ginning, and glass bangles cluster -- it needs to re-evaluate its policies and modify them according to the feedback given by investors whose stakes are involved in the sector. Because of their small size, SMEs usually lack management capacity and cannot afford costly support services. The quality of business development services that are being provided by Smeda is not up to the mark and, consequently, small investors are facing losses. The concerned authorities should give judicious financial, technical and marketing advices along with providing project feasibility and regulatory procedures assistance. For the purpose of improving skills of personnel working in SMEs, new training courses focussing on sustaining and enhancing growth in the sector should be initiated. In addition, well-qualified trainers should be employed for these courses. In August 2007, the outgoing government also launched an SMEs policy aimed at establishing globally competitive enterprises, by creating modern infrastructure and easier access to resources and services. The policy was initiated with a sum of Rs 13.1 billion and was expected to create job opportunities as well as enhance exports. The target areas identified initially were cluster development, promoting women's entrepreneurship and focus on neglected sectors of economy. Recently an SMEs Credit Advisory Committee has been established under the State Bank of Pakistan to provide a forum for interaction with all the stakeholders and deliberate on the issues hindering growth of financing in the sector. The fact remains that despite efforts to improve the SMEs sector, it has not received due priority and is still unable to achieve its maximum potential because of disoriented economic policies. Among the key problems for SMEs is non-availability of funds from the Public Sector Development Programme and the private banks. There are many banks claiming to be SME banks or there is usually a section dealing with them in most of the commercial banks, however, only a few are actually financing projects in the sector. Also, the credit offered to the SMEs sector is small in amount as compared with the loans offered to bigger entrepreneurs, as banks always prefer big loans to avail low-risk opportunity. The schedule of charges of the commercial banks is unfriendly to SMEs and the surcharge on transaction is higher for smaller entrepreneurs. In this regard, commercial banks need to launch innovative approach to meet the needs of this important sector of the economy. In addition to the loan facilities, there is also lack of reliable business service providers, weak marketing links, lack of skilled labour, and bureaucratic apathy towards the SMEs sector. Potential investors have to face long bureaucratic process and have to go to different government departments for investment, which discourages them and creates hurdle in the development of the SMEs sector. Perplexing procedures of sales tax, custom and exercise duties are also preventing the potential expatriate investors from investment in the sector. In order to overcome these problems, there is a need to create conducive environment for the SMEs sector and the potential investors. Though the government announced an SMEs policy last year, its effective implementation needs to be ensured, to prevail over the deficiencies in the government initiatives. Such initiatives need to be taken that involve all the stakeholders at an equal level, particularly during policy formation. Gaps in policy formulation and implementation still persist and they have to be removed for achieving the desired goals. There is also need for capacity building both within the banks and SMEs. According to the Asian Development Bank's recommendations, there is need for introducing reforms of fiscal and regulatory procedures and dispute settlement mechanisms, which will also reduce constraints to the growth of the SMEs sector in Pakistan. The advancement of SMEs can enhance the competitiveness of the economy and may lead to generation of additional employment. Promotion of small and medium entrepreneurs has a positive effect on the trade balance, since SMEs generally use indigenous raw materials. It also helps in achieving fair and equitable distribution of wealth by regional distribution of economic activities. The SME sector in Pakistan has substantial untapped potential to contribute to the overall economic growth and a dynamic SMEs sector would aid a more open economy. We can easily solve the problems of the SMEs sector through the combination of new technologies and indigenous entrepreneurs' wisdom and experiences. However, achieving maximum contribution from SMEs would require significant improvements in the support system, which requires greater initiatives and favourable policies by the government. |
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means a lot needs to be done for an appreciable increase in trade between
the two largest economies of the South Asian region. Another notable
feature of Pak-India trade is that trade balance has remained heavily in
favour of India. Pakistan's trade deficit with India has gone up from $137
million in 2001-2002 to $893 million in 2006-07.
the late 1950s when she was very young. She feels fortunate that most of
her childhood memories are associated with the campus of Forman Christian
(FC) College, Lahore, as her father Professor Dr Agha Sohail was head of
the Urdu department at the prestigious institution. She had a chance to
grow up in a well-educated community that believed in inter-faith harmony.
"We were asked by our parents never to comment on religious beliefs.
The interaction with believers of other faiths helped me a great deal as a
grown up person."
Pakistani newspapers on behalf of the mythical Baitullah Mehsud welcoming
the victory of the PPP and the PML-N; the leader of the 'Pakistani
Taliban' even vowing to negotiate for peace with the new government.
transport sector, the government intends to convene a moot to secure
support from donors and investors. The tall claims with regard to
'successes' in the transport sector stand exposed in the wake of the
current financial crisis. On the one hand, the president is inaugurating
low-utility high-cost projects like Lyari Expressway; while, on the other,
the people of big cities continue to suffer as a result of thoughtless
policies that fail to solve even their basic problems.
late October evening, which appeared depressing to the Londoners as they
heard the next news item about the ongoing famine in Ethiopia. The
newscaster announced: "Here is our correspondent Michael Buerk
reporting the latest from Ethiopia." The footage started with camera
panning on to a three-year old dying boy surrounded by some 20 adults. The
emaciated bodies looked like inmates of some death camp from the Nazi
period. All the bony structures visible on the screen were motionless. The
only movement was the invisible, yet perceptible, rustle of creeping
death. As viewers watched the child die on camera, Buerk narrated:
"Death is all around. A child or adult dies every 20 minutes."
reached its peak, hovering around 65,000 barrels per day. At that time,
this was almost 25 per cent of the daily oil consumption in Pakistan.
Today, while oil consumption has increased by at least three times, oil
production in the country is almost the same as it was two decades ago.
president declaring that the average age of a Pakistani is 18 years,
perhaps the government should divert the all-evaporating resources towards
sustainable development. A nation relying on the crutches of faulty
institutions is destined to misery. One of the functions of a government
that advocates good governance, therefore, therefore, is to regulate
institutions. A very strong school of thought identifies education as the
sole mean through which true societal upgrading can be achieved.
countries to adopt this path is their limited enterprise capacity to
comply with the requirements of international buyers, who demand not only
product quality and reliability but also compliance with social standards,
in particular those pertaining to labour, environment, and safety and
heath of workers. There is, however, nothing novel about these demands,
since there is a legal compulsion to comply with the international
standards on labour, environment, safety and health of workers, and
product quality.
comparison with bigger units. Vibrant and efficient SMEs are a
pre-requisite for positive economic indicators in any developing country,
as this sector plays a vital role in not only reducing poverty by
generating employment opportunities but also in removing sectoral
imbalances in the economy.