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Friday, June 29, 2007

Cyclone YEMYIN hits Sindh, Balochistan

Cyclone YEMYIN hits Sindh, Balochistan

 

 

 

7 army rescue helicopters fly off from Quetta to Turbat and Sibbi

 

 

4 helicopters waiting at Multan and Sukkur for rescue operations

 

PAF C-130 aircraft carrying relief goods

 

FWO construction teams to repair extensively damaged coastal highway

 

Mirani Dam in critical condition

 

Army Engineers Battalion moves from Panjgur to Mirani Dam

 

 

UN Secretary-General Ban Ki-moon offers assistance

 

FC  evacuates more than 600 families stranded in Turbat

 

RCD Highway blocked due to erosion of road

 

Awaran-Bela road also closed

 

Railway track damaged, trains stuck up between Mach and Sibbi

 

Bolan Express, Jaffar Express, Chilten Express and Baloch Express affected

 

 

National Disaster Management Authority sets up control room to ccordinate relief operations

 

NDMA control room numbers Tel: 051-9209338, Fax: 051-9201065

 

EARTHQUAKE:

 

30,000 people still living in tents and 3.5 Mln in non-permanent dwellings

 

Thousands stranded on rooftops in sweltering 43C heat

 

Helicopters air-dropping urgent relief

 

200,000 homes destroyed

 

Flooding in Pech River in eastern Afghanistan

 

Poorly installed hoardings kill more people than cyclone

 

 

Falling walls in katchi abadis, electrocution created huge problem

 

South Asian rains kill 400 people

 

230 dead Karachi, 25 in Balochistan, 155 in India, 40 in Afghanistan

 

800,000 people affected by tropical cyclone

 

 

 

 

 

 

                                                                                                          

     ISLAMABAD, Jun 28 (APP): Governor Balochistan Awais Ahmed Ghani Thursday said rescue and relief operation is in full swing  in the rain-affected province, shifting marooned persons to safer places and providing them relief goods.

      Massive relief activities are underway to provide edible items, tents and other facilities to the affected people, the Governor Balochistan said while talking to a private TV (CNBC).

     He said the tropical cyclone has badly affected almost the entire province.

     He said 14 persons were killed in recent rains and flash- floods throughout the province. Four of which were drown, while 10 others were killed in different incidents like roofs' collapse, he added.   

     The governor said federal government has allocated Rs. 200 million and the provincial government Rs. 100 million in addition to local funds to carry out relief activities.

     To a question about Mirani dam situation he said the dam is safe and situation is under control, rejecting the impression of occurrence of breaches in the reservoir.

 

 

 

 

Balochistan-Relief Over 20,000 'Family Packets' being distributed in flood hit areas of  Balochistan

 

      ISLAMABAD, Jun 28 (APP): More than 20,000 family packets of 16kg each  have been prepared for onward distribution among the stranded people of rain  and cyclone Yemyin hit areas of Balochistan.

      Balochistan Relief Commissioner Provincial Disaster Management  Authority Khuda Bukhsh Baloch told CNBC TV that the packet containing rice,  sugar, soap, etc will easily fulfil one week needs of a family.

      He said the same number of flour bags are also being provided to the affectees along with family packets.

      Moreover the concerned DCOs have also been authorised to purchase edibles for distribution in their respective areas to alleviate their sufferings.  The overall situation in the province is improving fast.Turbat, Jhal Magsi, Bolan, Lasbella, Jaffarabad, Naseerabad, Lasbela and Sibbi are worst affected districts having a population of around 0.8 million, he added.

      Six C-130 planes and 12 helicopters are conducting relief and rescue  operation in flood hit areas of Balochistan.Food items are also being dropped for stranded people by other relief agencies also.

  So far only two casualties have been reported in district Jaffarabad.  No casualty has been reported by any DCO from across the province.

      About 35000 vulnerable polulation has been shifted to safer places. Communication links of Turbat with rest of the country would be restored by  Friday, he concluded




-----------------------------------------------------------
N A D E E M M A L I K
CNBC PAKISTAN
BUREAU CHIEF
ISLAMABAD

0321-5117511

nadeem.malik@hotmail.com

16th Floor, Saudi Pak Tower, 61-A Jinnah Avenue, Islamabad. 051-2800113-14, Fax: 051-2800118

 



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NewsGuru on Disaster Management- Governor Balochistan

 

                                                                                                          

     ISLAMABAD, Jun 28 (APP): Governor Balochistan Awais Ahmed Ghani Thursday said rescue and relief operation is in full swing  in the rain-affected province, shifting marooned persons to safer places and providing them relief goods.

      Massive relief activities are underway to provide edible items, tents and other facilities to the affected people, the Governor Balochistan said while talking to a private TV (CNBC).

     He said the tropical cyclone has badly affected almost the entire province.

     He said 14 persons were killed in recent rains and flash- floods throughout the province. Four of which were drown, while 10 others were killed in different incidents like roofs' collapse, he added.   

     The governor said federal government has allocated Rs. 200 million and the provincial government Rs. 100 million in addition to local funds to carry out relief activities.

     To a question about Mirani dam situation he said the dam is safe and situation is under control, rejecting the impression of occurrence of breaches in the reservoir.

 

 

 

 

Balochistan-Relief Over 20,000 'Family Packets' being distributed in flood hit areas of  Balochistan

 

      ISLAMABAD, Jun 28 (APP): More than 20,000 family packets of 16kg each  have been prepared for onward distribution among the stranded people of rain  and cyclone Yemyin hit areas of Balochistan.

      Balochistan Relief Commissioner Provincial Disaster Management  Authority Khuda Bukhsh Baloch told CNBC TV that the packet containing rice,  sugar, soap, etc will easily fulfil one week needs of a family.

      He said the same number of flour bags are also being provided to the affectees along with family packets.

      Moreover the concerned DCOs have also been authorised to purchase edibles for distribution in their respective areas to alleviate their sufferings.  The overall situation in the province is improving fast.Turbat, Jhal Magsi, Bolan, Lasbella, Jaffarabad, Naseerabad, Lasbela and Sibbi are worst affected districts having a population of around 0.8 million, he added.

      Six C-130 planes and 12 helicopters are conducting relief and rescue  operation in flood hit areas of Balochistan.Food items are also being dropped for stranded people by other relief agencies also.

  So far only two casualties have been reported in district Jaffarabad.  No casualty has been reported by any DCO from across the province.

      About 35000 vulnerable polulation has been shifted to safer places. Communication links of Turbat with rest of the country would be restored by  Friday, he concluded




-----------------------------------------------------------
N A D E E M M A L I K
CNBC PAKISTAN
BUREAU CHIEF
ISLAMABAD

0321-5117511

nadeem.malik@hotmail.com

16th Floor, Saudi Pak Tower, 61-A Jinnah Avenue, Islamabad. 051-2800113-14, Fax: 051-2800118

 



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Wednesday, June 27, 2007

More effective disaster preparedness urged as storm kills over 200

PAKISTAN: More effective disaster preparedness urged as storm kills 200

KARACHI, 26 June 2007 (IRIN) - Three days after the rainstorm that lashed Paksitan's main port city of Karachi on 23 June, Khursheed Jamshed, 50, is unsure if her 20-year-old son, Pervaiz, has survived.

"He went out with some friends, and has not returned. We pray he is alive. He has not returned yet," Khursheed told IRIN in Karachi.

As if the chaos unleashed by the storm was not enough, people in Karachi, which has a population of some 15 million people, were bracing for Cyclone Yemyin 03b, which has formed in the Arabian Sea 150km south of Karachi.

"The cyclone will bring heavy rain to Karachi and coastal areas over the next two days," the director-general of Pakistan's Meteorological Office, Qamaruz Zaman, told IRIN.

By 26 June, there were indications the cyclone had spared Karachi but had lashed coastal areas of Sindh and the adjacent Balochistan Province. "We have made arrangements to evacuate people from coastal areas," Waseem Akhtar, adviser to the provincial chief minister of home affairs, said.

Four thousand evacuated

At least 4,000 people had been evacuated from coastal areas of Sindh and Balochistan by 26 June, and the army, navy and paramilitary forces remained on high alert.

Despite those measures, 14 cyclone-related deaths were reported in Balochistan by 26 June.

Rains triggered by the cyclone meanwhile created panic in a city still reeling from the storm on 23 June.

As a result of the winds and rain, house walls collapsed, giant billboards tumbled over and electricity cables fell to the ground.

Rizwan Edhi of the charitable Edhi Foundation said "at least 200 and possibly more people died in rain-related incidents".

This information was borne out by Sindh Health Minister Syed Sardar Ahmed, who confirmed the death toll. "We have alerted hospitals, and are trying to do all we can to manage the confusion."

Poorly installed hoardings

People though remain generally dissatisfied with the government's efforts.

"It was terrible. Poorly installed billboards crashed down before our eyes," said Ilyas Ghani, 24, who was out on his motorcycle during the storm. He and his brother, Riaz Ghani, called for tougher rules regarding the installation of giant advertising hoardings, which have caused deaths in the past as well.

People also staged protests over prolonged power cuts in Karachi. In some cases, power cuts lasted 28 hours or more.

With uprooted trees, billboards and debris blocking roads, traffic virtually came to a standstill. As ambulances belonging to the Edhi Foundation and other organisations began collecting bodies on 23 June, relatives searched the hospitals for their missing loved ones.

"My father is missing. We are not sure if he is dead or injured," said Ameena Anjumn, 20, daughter of Hamid Khan, 48, at Abbasi Shaheed Hospital.

The Edhi Foundation and other welfare groups said most deaths were caused by falling walls, tumbling billboards or electrocution - as power cables fell across roads.

According to initial estimates, at least 2,000-3,000 houses have been damaged in the city and at least 1,000 have suffered significant damage, including collapsing walls.

Shanty town hit

Some of the worst damage came in low-income residential areas, such as Orangi - South Asia's largest shanty town with a population of nearly 800,000 people.

"Virtually every second or third house here has been damaged," said Ali Kassim, 30, a social activist working in the area.

The Karachi-based Urban Resource Centre, a non-governmental organisation (NGO) that advocates housing rights, said 50 percent of Karachi residents live in shanty towns or 'katchi abadis' made up of houses built from clay, unbaked brick, timber or sometimes mere canvas. The number of such persons is also rising rapidly in all major cities, experts said.

Millions of people live in unsafe houses and are vulnerable to roof or wall collapses. According to the HRCP, at least 90 people died across the country in 2006 as the result of falling roofs or walls. Hundreds of others were injured.

Cyclone damage

Another 300-400 houses in Sindh and Balochistan were reported to have suffered damage from the cyclone still hovering over the coast.

While the storm and the havoc it has caused has apparently alerted the authorities to the need to take preventive action ahead of the cyclone, with evacuations continuing, many fear it is too little too late.

Sindh Chief Minister Arbab Ghulam Rahim has already criticised the "weather authorities" for failing to issue timely warnings about the storm.

After the devastating earthquake of October 2005 that hit northern areas of Pakistan and Pakistan-administered Kashmir, killing at least 75,000 people, there had been much talk of a disaster-readiness plan in the country.

"Each year, people die in floods or due to collapsing walls. Most housing in the country is unsafe," said I.A.Rehman, the director of Pakistan's independent Human Rights Commission (HRCP).



-----------------------------------------------------------
N A D E E M M A L I K
CNBC PAKISTAN
BUREAU CHIEF
ISLAMABAD

0321-5117511

nadeem.malik@hotmail.com

16th Floor, Saudi Pak Tower, 61-A Jinnah Avenue, Islamabad. 051-2800113-14, Fax: 051-2800118

 



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‘Musharraf election in uniform’

'Musharraf election in uniform'
Wednesday, June 27,2007

LAHORE, June 25: President Pervez Musharraf will have to get himself re-elected between Sept 15 and Nov 15 while retaining his military uniform, but if he takes the option of going in for re-election between Nov 15 and Dec 15, the protection given to him under the Constitution to hold two offices will become a moot point, says prominent constitutional expert and a former minister for law Dr Khalid Ranjha.

Talking to Dawn on Tuesday, the ruling PML Senator said under Article 41 of the Constitution, election of the president was to be held not earlier than 60 days and not later than 30 days of the expiration of the term of his office. Thus, the election of the president should take place between Sept 15 and Dec 15.

Article 41(7), he said, provided that the chief executive, as he then was, would assume the office of the president and shall hold the same for five years. However, by the same article, provisions of Article 43 that prohibit the president from holding any other office stand overridden.

"The president, therefore, enjoys the protection of holding another office along with the presidency for a period of five years i.e. up to Nov 15."

Also a former judge of the Lahore High Court, Dr Ranjha said the president had now two options. First he may get himself re-elected 60 days before the expiry of his term. In such an eventuality, the Constitution permits him to go into the electoral process while retaining his uniform and holding the office of the army chief.

His second option is to seek a fresh mandate within 30 days after the expiry of his term i.e. between Nov 15 and Dec 15. In this case, the protection available to him under Article 41(7) may not be available.

"However, one may not ignore the fact that prohibition under Article 63-D has been deferred by an act of parliament till Dec 31, 2007."

Dr Ranjha said: "It may, therefore, be argued that even after Nov 15 till Dec 15, the protection given to President Musharraf to hold dual office may remain. However, this is debatable."

Some other ruling PML leaders are of the view that Gen Musharraf should re-run for the post as a civilian, implying that the general should give up the post of the army chief before seeking mandate for another term.

Dr Ranjha said Gen Musharraf's term as president was due to expire on Nov 15, but was allowed to stay as army chief till Dec 31. The term could be extended by parliament by waiving the disqualification clause, he said.

He rejected as bad logic argument that since the existing assemblies were about to complete their five-year tenure, they were not competent to give another term to Gen Musharraf. He said if the opposition parties were not "Musharraf-specific", they would realise that the argument that existing assemblies could not re-elect a president for a full five-year term did not hold water.

He argued that if Gen Musharraf decided to quit, the existing assemblies would elect his successor for a full term. And if during the rest of the life of the existing assemblies the new president also resigned for some reason or he died, a new successor would also be chosen for five years. This, he said, clearly meant that the assemblies could elect presidents as many times as the post fell vacant.

Opposition parties' insistence that the existing assemblies could not give Gen Musharraf another term was a 'self-serving argument', said the former law minister.

He said it was the government's prerogative to decide when to hold the elections. However, whichever assembly was in existence would re-elect the president.

He said at one stage, the government gave a serious thought to holding elections in phases. However, he said, he did not know if the plan had been reviewed.

Under the said plan, the National Assembly elections were to be held while retaining the provincial assemblies.

Dr Ranjha said there was no possibility of any manipulations in the presidential polls even if Gen Musharraf was in uniform.




-----------------------------------------------------------
N A D E E M M A L I K
CNBC PAKISTAN
BUREAU CHIEF
ISLAMABAD

0321-5117511

nadeem.malik@hotmail.com

16th Floor, Saudi Pak Tower, 61-A Jinnah Avenue, Islamabad. 051-2800113-14, Fax: 051-2800118

 



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Tuesday, June 26, 2007

NEWSGURU ON POWER SECTOR CRISIS

WAPDA-Losses WAPDA reduces five percent line losses in four years:Chairman

ISLAMABAD, Jun 22 (APP): Through prudent measure the line losses of WAPDA have been brought down by five percent from 20.9 percent to 24.3 four years ago, Chairman WAPDA Tariq Hameed told CNBC channel.

Commenting on power shortages he said various long term measures have been continuing to overcome the scarcity from 500 to 200 mw.

More than 3,350MW power would be available in the country by 2008-09 including 330 MW through own sources as three thermal units of WAPDA would also start production by then.

Two power plants having capacity of 286 mw have been operationalised recently.IPPs thermal plants are working hundred percent.

Power demand has increased in the country at phenomenal pace due to rapid development.WAPDA's consumers have also increased from 14 million to 16.8 million.

To a question he said its wrong to blame WAPDA for power shortage saying: " We have submitted likely increase in demands to concerned department including Private Power Infrastructure Board (PPIB)."

Similarly no expansion of power plants was carried out in last years due to their privatisation plan, he added.

Regarding huge subsidy of Rs 55 billion being paid to WAPDA by the government he said the government is offering subsidy to lifeline consumers, tubewells, FATA people, etc.

"The income of WAPDA is Rs 250 billion.Government was bound to pay 2 percent of it to people as subsidy which is Rs 55 billion.So it is wrong to say that WAPDA was getting subsidy instead people are getting subsidy," he added.




 

-----------------------------------------------------------
N A D E E M M A L I K
CNBC PAKISTAN
BUREAU CHIEF
ISLAMABAD

0321-5117511

nadeem.malik@hotmail.com

16th Floor, Saudi Pak Tower, 61-A Jinnah Avenue, Islamabad. 051-2800113-14, Fax: 051-2800118

 



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Monday, June 25, 2007

Þæãی ÇÓãÈáی Êæšäÿ ˜ی ÊÌæیÒ ÒیÑ ÛæÑ ªÿ۔ ÔÌÇÚÊ ÍÓیä

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assemblies' tenure can be extended

* PML chief says he is against 'politics of references'
* Constitution will be amended if Musharraf decides to remain in uniform

Daily Times Monitor


LAHORE: Pakistan Muslim League President Chaudhry Shujaat Hussain says the government has various options if the MMA decides to dissolve the NWFP Assembly after the opposition's all parties conference, one of them being to extend the assemblies' tenure for a year.

In an interview with CNBC Pakistan on Sunday, he said the government could also dissolve the National Assembly. "We have options either to dissolve the NA and hold fresh elections or elect President Musharraf from the present assembly," he said. The provincial assemblies can exist constitutionally even if the NA is dissolved, he added.

"We would also resign if the opposition resigned from the provincial assemblies," Hussain said. He added that politics was a "game of cards" in which sometimes you bluffed, and statements about dissolving assemblies were part of the game. He said he was against "politics of references" and had asked the MQM to withdraw the reference against Imran Khan.

He said the Constitution would have to be amended if Gen Musharraf decided to remain in uniform after December 2007.

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Shujaat invites political parties to prepare code of conduct for elections PDF Print E-mail

ISLAMABAD, Jun 24 (APP): President Pakistan Muslim League (PML) Chaudhry Shujaat Hussain Sunday extended an invitation to opposition parties to prepare code of conduct for the upcoming elections, removing their reservations in this regard. Talking to CNBC television, the PML President vowed to ensure holdinns would be held in accordance with the Constitution, either these are Presidential or general elections.

Ch. Shujaat underlined the need to maintain culture of tolerance in politics, putting the country on consistent path of development and prosperity.

To a question he said the party getting majority in the elections would form the government as it was a democratic process.


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-----------------------------------------------------------
N A D E E M M A L I K
CNBC PAKISTAN
BUREAU CHIEF
ISLAMABAD

0321-5117511

nadeem.malik@hotmail.com

16th Floor, Saudi Pak Tower, 61-A Jinnah Avenue, Islamabad. 051-2800113-14, Fax: 051-2800118

 



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SHUJAAT SAYS PROPOSAL TO DISSOLVE NATIONAL ASSEMBLY BEING DISCUSSED

Assemblies' tenure can be extended

* PML chief says he is against 'politics of references'
* Constitution will be amended if Musharraf decides to remain in uniform

Daily Times Monitor


LAHORE: Pakistan Muslim League President Chaudhry Shujaat Hussain says the government has various options if the MMA decides to dissolve the NWFP Assembly after the opposition's all parties conference, one of them being to extend the assemblies' tenure for a year.

In an interview with CNBC Pakistan on Sunday, he said the government could also dissolve the National Assembly. "We have options either to dissolve the NA and hold fresh elections or elect President Musharraf from the present assembly," he said. The provincial assemblies can exist constitutionally even if the NA is dissolved, he added.

"We would also resign if the opposition resigned from the provincial assemblies," Hussain said. He added that politics was a "game of cards" in which sometimes you bluffed, and statements about dissolving assemblies were part of the game. He said he was against "politics of references" and had asked the MQM to withdraw the reference against Imran Khan.

He said the Constitution would have to be amended if Gen Musharraf decided to remain in uniform after December 2007.

----------------------------------

Shujaat invites political parties to prepare code of conduct for elections PDF Print E-mail

ISLAMABAD, Jun 24 (APP): President Pakistan Muslim League (PML) Chaudhry Shujaat Hussain Sunday extended an invitation to opposition parties to prepare code of conduct for the upcoming elections, removing their reservations in this regard. Talking to CNBC television, the PML President vowed to ensure holding of free, fair and transparent elections.

He said elections would be held in accordance with the Constitution, either these are Presidential or general elections.

Ch. Shujaat underlined the need to maintain culture of tolerance in politics, putting the country on consistent path of development and prosperity.

To a question he said the party getting majority in the elections would form the government as it was a democratic process.


-----------------------

 



 

-----------------------------------------------------------
N A D E E M M A L I K
CNBC PAKISTAN
BUREAU CHIEF
ISLAMABAD

0321-5117511

nadeem.malik@hotmail.com

16th Floor, Saudi Pak Tower, 61-A Jinnah Avenue, Islamabad. 051-2800113-14, Fax: 051-2800118

 



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RATE OF RETURN ON SAVINGS CERTIFICATES

ISLAMABAD: Central Directorate of National Savings revises rates of return on different instruments effective June 23, 2007- CDNS

 

ISLAMABAD: Return on Defense Saving Certificates rises 10 pct to 10.15 pct; Special Saving Accounts and Scheme from 9.17 pct to 9.25 pct, Regular Income Certificates from 9.24 pct to 9.54 pct- CDNS

 

ISLAMABAD: Return on Pensioners Benefit Account and Behbood Saving Certificates increase from 11.52 pct to 11.64 pct- CDNS

 

ISLAMABAD: Rate of return on Savings Account moves up from 6 pct to 6.5 pct- CDNS

 




-----------------------------------------------------------
N A D E E M M A L I K
CNBC PAKISTAN
BUREAU CHIEF
ISLAMABAD

0321-5117511

nadeem.malik@hotmail.com

16th Floor, Saudi Pak Tower, 61-A Jinnah Avenue, Islamabad. 051-2800113-14, Fax: 051-2800118

 



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Saturday, June 23, 2007

UBL GDRs & HBL IPO

ISLAMABAD:  Privatisation Commission sells 202 mln UBL shares for $650.3 mln- Privatisation Minsiter Zahid Hamid

 

ISLAMABAD: One GDR of UBL equivalent to 4 shares sold for $12.85- Zahid Hamid

 

ISLAMABAD: Privatisation Commission receives total offers of $2.5 bln for UBL GDRs- Zahid Hamid

 

ISLAMABAD: PC to launch HBL IPO at PKR 235 per share in next 2-3 weeks- Zahid Hamid

 

ISLAMABAD: CCoP approves 5 pct HBL shares for initial offering, with 2.5 pct green shoe option- Zahid Hamid

 

ISLAMABAD: HBL IPO comprising over 75 mln shares to fetch PKR 12.2 bln- Zahid Hamid

 

ISLAMABAD: PSO privatisation deferred till the beginning of next fiscal year- Zahid Hamid

 




-----------------------------------------------------------
N A D E E M M A L I K
CNBC PAKISTAN
BUREAU CHIEF
ISLAMABAD

0321-5117511

nadeem.malik@hotmail.com

16th Floor, Saudi Pak Tower, 61-A Jinnah Avenue, Islamabad. 051-2800113-14, Fax: 051-2800118

 



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Friday, June 22, 2007

Insider Trading Can Now Touch Many Corners of the World


 

Insider Trading Can Now Touch Many Corners of the World

 

By LANDON THOMAS Jr. and MICHAEL J. de la MERCED

Published: June 20, 2007

Life in the great Pakistan bull market had been good to Ajaz Rahim. He had a big house in an affluent Karachi neighborhood, a swimming pool with a wave machine and a Yamaha motorcycle that people who know him say he liked to ride without a helmet.

Friends said that Mr. Rahim, an admirer of Warren E. Buffett, often talked of how he had become a "rupee billionaire" from investments in Pakistani stocks, real estate and a recent winning streak in the American market.

Then, in late February, it all imploded. Stock in TXU, the Texas energy giant, had spiked after a $45 billion buyout offer and Mr. Rahim had just taken $5.1 million in profit. But his broker was telling him that his assets, which regulators say exceeded $7 million, were being frozen and that American legal authorities suspected he had traded on inside information.

Within weeks, Mr. Rahim left Pakistan and his job at Faysal Bank, where he had overseen stock trading, and went for a time to Canada, where his wife and two children had moved, say people with knowledge of his actions.

In May, prosecutors charged Mr. Rahim with 26 counts of insider trading in Federal District Court in Manhattan and said in the complaints that a friend at Credit Suisse, Hafiz Muhammad Zubair Naseem, had tipped him off that TXU would be taken private before his profitable trades.

Now, fearing that his Pakistani origins might be enough to land him in an American jail, Mr. Rahim has returned to his hometown, Lahore, a city in northeast Pakistan, say people who have been briefed on his whereabouts.

Mr. Rahim's lawyer, Spencer C. Barasch, declined to comment on his client's whereabouts, saying only that Mr. Rahim was not hiding but was "letting the legal process work itself out." Mr. Barasch said his client was innocent and would fight the charges against him.

The circumstances are more dire for Mr. Naseem, the former banker at Credit Suisse who is accused of feeding Mr. Rahim inside information on at least nine deals. Released on bail of $1 million, his passport confiscated and his assets frozen, Mr. Naseem remains confined to his home in Rye Brook, N.Y.

While the Pakistani locale may be unusual, the story of Mr. Rahim and Mr. Naseem revolves around themes of hubris and aspiration that are timeless. And it is one in a recent spate of such incidents. While many have involved Americans, others have spanned the globe, from Hong Kong to Croatia to Pakistan.

Mr. Rahim is one of a new generation of market players who have seen their fortunes soar as a wave of capital has propelled emerging markets to new highs, from China to India and most starkly Pakistan, where the stock market has jumped more than 800 percent since 2001.

Far removed from the insider trading scandals of the 1980s, these investors have become enthusiastic speculators on overseas markets. But, as they have taken on more risk, regulators say that some are violating American securities laws, prompting the authorities to range far and wide to try to catch them.

Since the attacks of Sept. 11, $10 billion in American aid, a stream of money from oil rich investors and a pro-economic reform government supported by Pakistan's president, Gen. Pervez Musharraf, have produced the most explosive bull market in the country's history.

This year the market is up 35 percent, shrugging off suicide bombs in Karachi and civil unrest protesting the rule of General Musharraf.

While there is no evidence that Mr. Rahim used inside information in the local market, legal specialists in Pakistan say that lax regulation has created a permissive trading environment.

"There is a culture of noncompliance in Pakistan," said Tariq Hassan, the former chairman of the Securities and Exchange Commission of Pakistan. "If you can't get caught, then you have the incentive to make a quick buck."

Mr. Rahim, 44, and Mr. Naseem, 37, could not be more different from each other.

Known for his love of Cuban cigars and sleek automobiles, Mr. Rahim seems a caricature of the classic Wall Street deal maker. His social network extended deep into Pakistan business circles, and he developed a reputation as an expansive host who held frequent parties.

As the markets boomed, so did his wealth. "How much do you think I'm worth," his associates recall him asking during a recent dinner party. "$30 million," guessed one. "Higher, higher," Mr. Rahim responded, according to one person who was there.

Mr. Barasch, the defense lawyer, says that while people have tried to guess his client's wealth, Mr. Rahim has never talked specifically about his net worth.

Mr. Naseem, the son of a civil servant, had little of his mentor's panache. He came to know Mr. Rahim while the two worked at American Express in Lahore in the late 1990s. In 2002, Mr. Naseem came to the United States to get a business degree at New York University. After a stint at JPMorgan, he joined Credit Suisse. He lives in a rented home in Westchester County, where he cares for a child who has cerebral palsy.

 

 

Insider Trading Can Now Touch Many Corners of the World

(Page 2 of 2)

At the time Mr. Naseem left Pakistan, Mr. Rahim's fortunes were at a low ebb. American Express was closing its operations in Pakistan, and Mr. Rahim had suffered deep losses from his investments in plummeting American technology stocks.

In 2002 he got a break, landing a job at Faysal Bank, a small commercial bank majority owned by the Dar al-Maal al-Islami Trust, an Islamic investment conglomerate in Geneva founded by Prince Muhammad al-Faisal al-Saud, a senior member of the Saudi royal family and an advocate of Islamic-based finance principles.

A spirited man who sports a French beard and enjoys a glass of whiskey, Mr. Rahim stood out among his more conservative colleagues within the Dar al-Maal al-Islami group, the slogan of which is "Allah is the purveyor of all success."

People who know him say that he always envisioned himself as a market-savvy deal maker, and when capital began flowing into Pakistan after Sept. 11, Mr. Rahim, put in charge of managing Faysal Bank's stock portfolio, became an influential investor in the local market.

He was promoted to head of investment banking in 2005 by Faysal's chief executive, Farook Bengali.

Feeling flush with success, Mr. Rahim burnished his public image by financing the building of a hospital in Karachi, named after his mother. And in 2006, he led the bank's push into real estate by investing in development projects in Lahore and Islamabad.

Unlike many investors in Pakistan who stick to the market they know, Mr. Rahim fancied himself a global investor, regardless of his losses in 2000, say people who know him.

In April 2006, according to the government's complaint, he began an extraordinary investment run by taking positions in nine American companies just before they were involved in takeovers or deals that allowed him to cash out quickly, culminating in the TXU trades in February.

In each case, the government accuses Mr. Naseem, who had joined Credit Suisse in March 2006, of tipping off Mr. Rahim that these companies would be taken over. He is accused of illegally retrieving the information from a database of Credit Suisse, which was an adviser in each deal.

"Let the fun begin," Mr. Naseem wrote in an e-mail message that he sent to a brokerage house in Karachi, asking to open up an account, according to the complaint.

A lawyer for Mr. Naseem, Michael F. Bachner, said that his client "denies all allegations that he engaged in any wrongdoing," and that he would contest the charges in court.

For his defense, Mr. Rahim is expected to argue that before the TXU trades, he had read a UBS research report, which said the stock sell-off represented a buying opportunity. People briefed on his defense strategy say that he also consulted a report on the Motley Fool investor Web site, as well as several articles on The Street.com.

Indeed, while the chronology of telephone calls and stock purchases seems persuasive on the surface, Judge James C. Francis IV, in Federal District Court in Manhattan cast some doubt on the government's case at a recent hearing, calling the evidence "plainly inferential."

Arif Habib, a prominent investor in the Pakistan market, says that Mr. Rahim was known for his propensity to pass along stock tips, although Mr. Habib says that he himself never acted upon them.

"He used to say that there were good opportunities in international markets," said Mr. Habib, the chairman of a securities firm that bears his name. "He had the habit of talking about everything."

In its complaint, the Security and Exchange Commission contends Mr. Rahim passed along Mr. Naseem's tips to "certain of his associates in Pakistan, including bank officers, bank directors and brokerage officials," and that these people also traded before the merger announcements.

While it is unclear if any further Pakistani executives will be named, Mr. Rahim's web of relationships reached all corners of the country's business world, and such a prospect has created anxiety in a financial community that has not been exposed to any serious regulatory scrutiny.

Reached on his cellphone, Mr. Bengali, the head of Faysal Bank, said that Mr. Naseem had never passed on any overseas stock tips to him and that Mr. Rahim had never used Faysal's capital to trade illegally.

He was adamant in saying that Mr. Rahim's days at the bank are over. It is a reality that is underscored by the swift disappearance of Mr. Rahim's picture from the bank's Web site, where he was once featured standing next to the man who had given him a second lease on his career.

"He has resigned and he is no longer with us," Mr. Bengali said. "None of us are aware of such happenings. It's a complete shock."

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CNBC PAKISTAN
BUREAU CHIEF
ISLAMABAD

0321-5117511

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Inflation Core principles

Inflation

Core principles

Jun 21st 2007
From The Economist print edition

Bond investors are living in a world where nobody eats or drives


DO THE financial markets believe that the typical American consumer is on a permanent fast, walks everywhere and survives without heating or air conditioning? After a jittery few weeks, bond markets rallied on June 15th on news that America's core consumer price index rose by just 0.1% in May. The data were warmly greeted by stockmarkets too. The Dow Jones index rose by 86 points on the day. Investors decided that the absence of price pressures would calm the nerves of rate-setters at the Federal Reserve, who have been worrying out loud about "elevated" core inflation.

What the markets blithely ignored was the day's bad news. Headline consumer prices rose by 0.7%, the biggest monthly increase for nearly two years. Unlike core inflation, the headline measure includes fuel costs, which rose sharply, as well as food prices. For bond prices to rise on such a big jump in inflation, markets must be placing a great deal of faith in the core index as the true gauge of price pressures. Is that wise?

The cold-and-hungry index

The lure of core inflation as a barometer is that headline inflation rates tend to be volatile. Last June the annual headline rate in America, pushed up by soaring oil prices, was as high as 4.3%, but by October it had plunged to 1.3%. The rationale for excluding food and fuel is to filter out prices that jump around for temporary reasons, such as the vagaries of the weather or the messy politics of the Middle East. A good core index excludes this noise, leaving only the enduring part of inflation that reflects the weight of spending in the economy.

Despite these statistical merits, there are several reasons not to rely blindly on core measures. First, the elements that the core index excludes are likely to pick up lasting shifts in inflation pressures earlier. Food and petrol are frequent purchases and their prices tend to be less "sticky" than those for more durable goods. Rising retail food prices can sometimes signal general price pressures. They are also a strong influence on perceptions of inflation, because consumers encounter them so frequently.

Second, the core and volatile elements of inflation are not entirely independent. Increases in food and energy costs can squeeze spending on other goods and services, depressing prices and artificially lowering core inflation. That is the reason why Mervyn King, the Bank of England's governor, referred in a speech earlier this month to the practice of excluding price categories as "highly misleading".

Third, core measures tend to stress the disinflationary supply-side of globalisation, but play down the inflationary pressures on demand. The integration of China and India into the global economy has led to lower prices for manufactured goods, trimming core inflation rates. But there is a sting in the tail: rapid growth in emerging economies has pumped up global demand for primary resources and boosted commodity-price inflation—not just in oil but in food too (see article). When these pressures are sustained, as they have been, core measures will under-represent true inflation.

The truth is that no index is perfect (there is a long argument to be had about whether housing costs are properly measured in the core number as well). What matters most are what real consumers spend their money on—and how they react to the prices of those things. Core measures are certainly useful if they can efficiently strip out price changes that are likely to prove fleeting, without losing track of underlying inflation. But investors should remember that they are never all you need to know about inflation. Unless, of course, you live in a world without cars, air conditioners and cornflakes.




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Thursday, June 21, 2007

Energy Sector Difficulties of Pakistan- Wapda, Finance Row

Energy Sector Difficulties of Pakistan- Wapda, Finance Row

 

 

ISLAMABAD (June 05 2007): Finance Ministry asked the Prime Minister Secretariat and Water and Power Ministry to take action against Wapda for its casual behaviour in implementing the directives of Prime Minister Shaukat Aziz, official sources told Business Recorder here on Monday.

Tanwir Ali Agha, Secretary, Finance wrote a letter on May 19 to the Principle Secretary to the Prime Minister, Khalid Saeed, a copy of which was addressed to Secretary Water and Power, suggested suitable measures to deal with the prevailing situation in the power utility.

"You will appreciate that the Finance Ministry can not provide an allocation for subsidies without reassuring that amounts are fully justified. This is where the matter stands today. I suggest that Water and Power Ministry take necessary steps to remedy unsatisfactory state of affairs which is prolonging Wapda's financial crisis," sources quoted Agha as saying.

The letter further said that the Finance Ministry had been requesting the utility to prepare a 'Financial Improvement Plan' (FIP), for some months now, and the Ministry of Water and Power has been kept informed. Up till now, Finance Ministry has not received anything despite the fact that it is the last week of April 2007, he complained.

"I met with Wapda's s team and explained to them in considerable detail on what the elements of the FIP should be. They promised to present their Disco-wise FIP within a week," he continued. Prime Minister Aziz had also directed during the presentation on Wapda on April 24 that the financial plan be reviewed by Ministry of Water and Power, Finance, Wapda, but unfortunately this directive of the Prime Minister remains unimplemented despite Finance Ministry's best efforts at every level, Secretary Finance maintained.

Agha further said that Finance Ministry was alive to Wapda's financial needs and it had arranged bank borrowing of Rs 33.8 billion including Rs 18 billion government guaranteed loans.

Further, Finance Ministry was providing all-out support to Wapda to float Sukuks to the extent of Rs 8.0 billion, which could be extended to Rs 20-25 billion, as Director General /Additional Director General were involved at a very personal level and were spearheading these efforts, he explained. "Again we have had to push hard for co-operation but Governor, SBP is on board and fully supportive of this proposal," he said.

Agha was of the view that these extraordinary financial arrangements had been made by Finance Ministry so that Wapda service its liabilities, including debt servicing to the government. In addition to these special arrangements, of which Minister for Water Liaquat Jatoi and Prime Minister's Principal Secretary were fully aware, Rs 33 billion and between Rs 15 and 20 billion were in the pipeline over and above additional Rs 18 billion subsidy that Wapda had been seeking without an FIP.

"Wapda has its own receipts over Rs 22-23 billion a month and, in June, their collections are historically high. In addition, on March 31, the utility had bank deposits of Rs 45 billion. So, we really need to get a hand on what is happening to Wapda's finances," the worried Agha said in the letter.

While summing up, he said that Finance Ministry had ensured that Wapda should have adequate finances so that it could service its debt to the federal government of Rs 17.8 billion urgently. "Wapda must, without any further delay, prepare a Disco-wise FIP, showing how they will improve on line losses, recoveries, etc consistent with Nepra's benchmarks," he suggested.

If Wapda does not carryout these efficiency improvements, the requisite subsidy from the budget will be absolutely untenable as would be required tariff increase, he viewed. Sources said that Wapda did not submit FIP to the Finance Ministry; rather sent a letter saying that it could not prepare FIP until tariff review petitions of Discos were finalised.

 

 

 

--------------------------------

 

Supply from energy sources up 50.2 percent in 10 years

ISLAMABAD (June 09 2007): The government said on Friday that supply from primary energy sources had increased by 50.2 percent during last ten years. According to Economic Survey 2006-07, the per capita availability rose from 0.295 ton of oil equivalent (TOE) in 1996-97 to 0.372 TOE in 2005-06--an increase of 26.1 percent--in last ten years.

The energy supply during first nine months of the current fiscal year increased to 45.35 million TOE from 42.44 million TOE, or 6.8 percent, as compared to last year. According to the survey, the balance recoverable reserves of crude oil, as on January 1, 2007, were estimated at 317.82 million barrels.

The average crude oil production during July-March was 66,485 barrels as against 65,385 barrels per day during the corresponding period of last year, showing an increase of 1.68 percent.

Production of crude oil per day increased to 66,485 barrels during July-March 2006-07 from 65,385 barrels per day during the same period of last year, showing an increase of 1.7 percent.

The overall production of crude oil increased to 18.2 million barrels during July-March 2006-07 from 17.9 million barrels during the corresponding period of last year, showing an increase of 1.7 percent.

On average, the transport sector consumed 50.7 percent of petroleum products, followed by power sector (32.1 percent), industry (11.4 percent), household (2.2 percent), other government agencies (2.3 percent), and agriculture (1.3 percent) during last 10 years ie 1996-97 to 2005-06.

However, during July-March 2006-07, crude oil production declined by 2.21 percent from the Northern region and the production efficiency increased in Southern region by 4.81 percent as compared to the same period of last year.

It further said that Pakistan's economy has been growing at an average rate of over 7.6 percent per annum over last three years and the government was making efforts to sustain growth momentum, addressing the challenges of rising energy demand. These include import of piped natural gas from Iran and Turkmenistan, import of LNG; increase in oil and gas exploration, utilising 175 billion tones of Thar coal reserves; setting up of nuclear power plants; exploiting the affordable alternative energy sources and overhauling existing power generation plants to enhance their production capacity.

The average production of natural gas per day stood at 3,876 million cubic feet during July-March 2006- 07, as compared to 3,825 million cubic feet over the same period of last year, showing an increase of 1.3 percent.

The overall production of gas increased to 1,062,124 million cubic feet during July-March 2006-07 as compared to 1,048,190 million cubic feet daily in the same period of last year, showing an increase of 1.3 percent.

On average, the power sector consumes 36.4 percent of gas, followed by fertiliser (21.6 percent), industrial sector (19.1 percent), household (17.8 percent), commercial sector (2.7 percent) and cement (1.1 percent) during the last 10 years ie 1996-97 to 2005-06.

Total installed capacity generation witnessed no change during July-March 2006-07, as it was 19,440 MW in first nine months of current financial year. Total installed capacity of Wapda stood at 11,363 mw during July-March 2006-07, of which hydel accounted for 56.9 percent or 6,463 mw thermal accounts for 43.1 percent or 4,900 MW.

During first three quarters of current fiscal year, 71,033 GWh electricity was generated as against 66,110 GWh produced in the same period of last year showing an increase of 7.4 per cent. The number of villages electrified increased to 113,605 by March 2007 from 103,231 up to 2005-06, showing an increase of 10 percent.

Presently, some 1414 CNG stations are operating in 85 cities and towns. By March 2007 about 1.35 million vehicles were converted to CNG as compared to one million vehicles during the same period last year, showing an increase of 35 percent. On average 29,167 vehicles are being converted to CNG every month. With these developments, Pakistan has become the leading country in Asia and the third largest user of CNG in the world, after Argentina and Brazil.

 




 

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CNBC PAKISTAN
BUREAU CHIEF
ISLAMABAD

0321-5117511

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16th Floor, Saudi Pak Tower, 61-A Jinnah Avenue, Islamabad. 051-2800113-14, Fax: 051-2800118

 



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Energy sector privatisation creating uncertainties: study

Energy sector privatisation creating uncertainties: study 

 

ISLAMABAD (June 12 2007): The Planning Commission (PC) has observed that the ongoing privatisation and market liberalisation in energy sector are creating uncertainties, limiting most of the country's population access to modern energy services.

"To meet the energy demand would be the biggest challenge in the country, where the government is striving to ensure that GDP grows at over 7 percent a year," the PC said in its detailed study on energy.

According to the study, the ministries of water and power petroleum and natural resources have failed to meet their development targets in 2006-07, citing lack of funds and deteriorating law and order situation in Balochistan as the main reasons.

The failure of the two ministries and as a whole of the government came at a time when the country is facing acute power shortage and the electricity outages are taking place across the country, a government official told Business Recorder.

For the fiscal year 2006-07, an amount of Rs 60.5 billion was allocated for the power sub-sector. The allocation included the budgetary allocations for corporations. Against the above allocations, the revised estimates were Rs 53.08 billion, which were 81 percent of the total allocation. The main reason for low utilisation of fund was non-availability of local as well as foreign aid for some of the development projects of Water and Power Development Authority (Wapda), said the official.

During last two financial years, the country had been facing acute power shortage, and there was only partial success in the power policies and projects, according to the PC. Major achievement by the power sector was the privatisation of Karachi Electric Supply Corporation (KESC) in 2005. The other important achievement was energy import from Iran to meet power requirements of coastal areas of Balochistan, said the PC.

In fuel sector, an allocation of Rs 931 million was made during 2006-07 excluding non-budgetary corporation programme. Against the above allocation, the revised estimates were 823 million, showing 88 percent utilisation. The reason of shortfall was the law and order situation in Balochistan, which slowed down the implementation of the projects, especially the oil and gas exploration in Balochistan-opening of exploration activities in Tribal areas commenced in the last quarter of the current fiscal year, according to the PC.

In oil and gas exploration, a total of 80 wells, both in public and private sectors (52 exploratory and 28 development/appraisal wells), are expected to be drilled by the end of this fiscal year against the target of 100 wells. Eight oil and gas discoveries, four in public and four in private sector, have so far been made.

Historically, the country has been subjected to energy demand suppuration due to limited supplies and lack of adequate infrastructure for provision of energy to the expanding economy. The lack of sustained and affordable energy supply has restrained economic and social growth, slowing down the investment in the country, the PC said.



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N A D E E M M A L I K
CNBC PAKISTAN
BUREAU CHIEF
ISLAMABAD

0321-5117511

nadeem.malik@hotmail.com

16th Floor, Saudi Pak Tower, 61-A Jinnah Avenue, Islamabad. 051-2800113-14, Fax: 051-2800118

 



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Major revenue spinners to yield Rs 34.556 billion

Major revenue spinners to yield Rs 34.556 billion

 

ISLAMABAD (June 15 2007): Big revenue spinners in the new financial year would be one per cent special surcharge on imports (Rs 13.24 billion); revision of tariff on automobile industry (Rs 1.3 billion); 20 percent sales tax on specified raw materials (Rs 9.1 billion); rationalisation of excise duty on international air travel (Rs 6 billion); increase in excise duty on cigarettes (Rs 4.5 billion); and extension of scope of excise duty on non-fund banking services would generate one billion rupees.

Official sources told Business Recorder that the federal government would generate additional revenue of Rs 13.24 billion from levy of one per cent surcharge on imports, which would be separately collected as an additional customs duty.

Sources said amnesty scheme to waive of fine/penalties and surcharges on payment of principal amount is expected to give Rs 700 million to the CBR, while the effect of waiver of capping export of goods from Export Processing Zones (EPZ) to tariff areas would be Rs 5 million.

They said the proposal to levy 20 percent sales tax on specified raw material of iron, steel, plastic and paper industries would contribute Rs 9.1 billion while increase/rationalisation of excise duty rates on cigarettes would generate Rs 4.5 billion.

The revenue effect of extension of the scope of non-fund banking services would be Rs 1 billion. However, revenue loss due to revision of tariff structure on automotive sector would be Rs 1.3 billion. It would cover three areas ie merger of CVT in customs duty; downward revision on old cars imports from 5 to 3 years and five-year plan for automobile sector. Whereas withdrawal of capital value tax (CVT) on cars and power of attorney executed between first relations would cost Rs 1.5 billion to the government.

The proposal to rationalise levy of excise duty on international air travel would contribute Rs 6 billion, followed by Rs 400 million from withdrawal of sales tax zero rating on chemicals of multiple usage and Rs 300 million from the proposal to withdraw input tax adjustment on supply of electricity/ gas to residential colonies of registered persons.

The CBR would collect Rs 1 billion revenue from sales tax on Compressed Natural Gas (CNG) station from gas distribution companies while the amount of revenue would be Rs 2 billion from introduction of withholding agent system in sales tax, the sources maintained.

However, withdrawal of exemption provided to mutual fund on CFS interest income would contribute Rs 350 million to the national kitty, besides, Rs 700 million from presumptive tax regime applied on CNG stations.

However, the proposals of withholding tax on electricity as minimum tax for non-corporate consumers and companies to pay advance tax in the first year would have nominal impact on revenue generation.

Sources said the aggregate revenue effect of all measures announced in the federal budget would generate Rs 44.425 billion from customs duty, sales tax, federal excise and income tax descriptions whereas revenue loss has been estimated at Rs 9.869 billion from tax exemptions and relief measures. The net revenue effect would be Rs 34.556 billion.



-----------------------------------------------------------
N A D E E M M A L I K
CNBC PAKISTAN
BUREAU CHIEF
ISLAMABAD

0321-5117511

nadeem.malik@hotmail.com

16th Floor, Saudi Pak Tower, 61-A Jinnah Avenue, Islamabad. 051-2800113-14, Fax: 051-2800118

 



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Tuesday, June 19, 2007

28 pct reduction in registered voters

PILDAT expresses concern at 45 % drop in Women Voters in NWFP; 96 % in FATAs

Pakistan Institute of Legislative Development And Transparency – PILDAT has expressed grave concern at the drastic reduction in female voters in the NWFP which has seen the number of registered female voters decreasing by 45 per cent from 3.92 million in 2002 to 2.17 million in 2007. In contrast to this significant reduction in women voters, the male voters in the province have registered a nominal reduction of less than 6 % despite an overall reduction of voters in the country by about 28 %. The number of women voters has registered a drastic decrease of 96 % in FATAs, 41 % in Sindh, 37 % in Punjab and 19 % in Islamabad Capital Territory.

In contrast to the other three provinces and the Islamabad Capital Territory, Balochistan has registered an increase in women voters but the increase appears too good to be real. The number of registered women voters has increased by 144 % from about 470,000 in 2002 to 1.14 million in 2007 in Balochistan. The male voters in Balochistan have also registered an extra-ordinary increase by 104 %. Another significant finding of PILDAT analysis is that the percentage reduction in the women voters in the country is more than twice the reduction in male voters. While the number of women voters has dropped by 39 %, male voters have dropped by 18 %. This has led to shrinking of the share of women voters in the total number of voters. The women voters, which constituted 40 % of the total voters in 2002, have shrunk to 30 % of the total voters in 2007.

PILDAT analysis is based on the break-up of 2002 Electoral Rolls and 2007 Preliminary Computerised Electoral Rolls both of which are released by the ECP. PILDAT expressed surprise at omission of FATA voters from the break-up of 2007 Preliminary Computerised Electoral Rolls given in the ECP Press Release of June 5, 2007. PILDAT has already expressed concern at an overall reduction in the number of voters in the country from 71.86 Million in 2002 to 52.1 Million in 2007.




-----------------------------------------------------------
N A D E E M M A L I K
CNBC PAKISTAN
BUREAU CHIEF
ISLAMABAD

0321-5117511

nadeem.malik@hotmail.com

16th Floor, Saudi Pak Tower, 61-A Jinnah Avenue, Islamabad. 051-2800113-14, Fax: 051-2800118

 



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Review of the Federal Budget 2007-08

Review of the Federal Budget 2007-08

by

Dr. Ashfaque H. Khan

Economic Adviser

The Federal Budget 2007-08 has been presented at a time when Pakistan is in the

midst of its strongest economic expansion phase and is experiencing the longest spell of

its strongest growth in years. With economic growth at 7.0 percent in 2006-07,

Pakistan¡¯s real GDP has grown at an average rate of 7.0 percent per annum during the

last five years and 7.5 percent in the last four years in running. This year¡¯s economic

growth is broad-based as agriculture, manufacturing and services have grown at robust

rates. As a result of strong economic growth on sustained basis, the real per capita

income has grown at an average rate of 5.5 percent per annum during the last four

years, thus giving rise to the real disposable income and supporting consumption boom

in the country. This consumption boom is helping domestic markets to expand and

encouraging private sector to invest more to meet the rising demand. Accordingly,

overall investment increased from 16.6 percent of GDP to 23.0 percent, i.e. 6.4

percentage points increase in the last four years (2004-07) and most importantly, private

investment jumped from 10.9 percent to 16.2 percent ¨C 5.3 percentage points increase in

the same period. This clearly reflects the buoyant mood of local and foreign investors in

Pakistan.

The financial health of the economy has also gained traction in the outgoing

fiscal year. The government has succeeded in achieving fiscal deficit target of 4.2

percent GDP; across all measures of vulnerability to external shocks, Pakistan¡¯s debt

profile has improved significantly; workers¡¯ remittances and foreign investment

reached all time high; foreign exchange reserves have crossed $ 15 billion ¨C the highest

ever in the country¡¯s history; the overall balance of payments is in surplus and so on.

It is in this background that the Federal Budget 2007-08 has been presented with

a view (i) to providing relief to the common man, including government servants,

industrial workers, widows of industrial worker¡¯s etc.; (ii)promoting investment and

sustaining growth momentum; (iii) creating employment opportunities; (iv)

strengthening the country¡¯s physical infrastructure; and (v) improving social indicators.

It would, therefore, be safe to argue that the Federal Budget 2007-08 is peoples¡¯ friendly,

farmers¡¯ friendly and investment friendly. Let me explain these points in ensuing pages.

The total size of the consolidated budget is Rs.1874 billion or 18.8 percent of

GDP and total revenue (consolidated) is estimated at Rs.1476 billion or 14.8 percent of

GDP with overall fiscal deficit is estimated at Rs.398 billion or 4.0 percent of GDP.

Hence, fiscal deficit is projected to decline from 4.2 percent of GDP (including earthquake

spending) to 4.0 percent (including earthquake spending). One critique has recently argued

in news analysis that budget deficit is projected to rise from 3.7 percent to 4.0 percent of

GDP this year. He should correct himself. Let me turn to each objective separately.

2

Relief to the Common Man

The government has been providing relief to the common man in every budget

over the last five years. The relief has been consistent with growing strength of the

economy as well as the availability of fiscal space. Following the tradition, the

government has enhanced the level of relief to the common man because the financial

health of the economy has also improved. Several analysts, both in print and electronic

media, have been complaining for the last several years that government is not

providing relief to the common man despite rising foreign exchange reserves and

growing fiscal space. As stated earlier, the government has been providing relief all

along the years and this year, the level of relief is consistent with growing financial

strength. And yet, the critiques continue to criticize as to why the level of relief has been

enhanced. Some have called this ¡®populist in tone¡¯ and some have dubbed this as ¡®Election

Year Budget¡¯ as if, nowhere in the world, budget is presented during the election year.

Whatever relief the government has provided is consistent with stable macroeconomic/

fiscal environment. Relief is not being provided through printing money but from the

resources the government is going to generate from the economy. Despite relief, the

fiscal deficit is targeted at 4.0 percent of GDP ¨C down from 4.2 percent in 2006-07. The

salient features of the relief to the common man are summarized below:-

a) Salary and Pension

In the last four Budgets of this government, the salary of the government servants was

raised every year. In the Budget 2007-08 the government will provide an increase of

equivalent to 15 percent of pay to all federal government employees ©¤ civilian and

defense employees.

Pensions of the government servants have also been raised. Those government servants

who retired before July 1, 1997, their pensions are up by 20 percent. Those who retired

after July 1, 1997, their pensions are up by 15 percent.

Upgradation of employees in BPS-1 to BPS-4 to the next grade; and the upgradation of

the post of clerical/ auditors from BPS-5 to BPS-7; BPS-7 to BPS-9; and from BPS-11 to

BPS-14.

Upgradation of posts of operational staff in Pakistan Railways and enhancement in the

rates of their operational Duty Allowance. Upgradation of basic scale by one step for all

remaining staff (excluding secretarial) in Railways.

The Employees Old Age Pension, old or new, has been increased by 15 percent.

Workers¡¯ minimum pension has been increased from Rs.1300 to Rs.1500 per month.

In the event of the death of the workers, the grant to their heirs has been increased from

Rs.200,000 to Rs.300,000.

Earlier, husband or wife both contributing to old age pension were not entitled for the

pension of the deceased pensioners. Now the serving partner will get the pension of the

deceased spouse also.

The Minimum Wage of the Worker has been increased by 15.0 percent, that is, from

Rs.4000 to Rs.4600 per month.

3

The contract employees will also be entitled to get share in profit for which, the

Companies Profit / Worker¡¯s Participation Act 1968 is being changed. The difference

between contract and permanent employee is being eliminated. The minimum ceiling is

being revised from Rs.12,000 to Rs.20,000. This measure will benefit the contract

employees.

b) Food Subsidy

In order to provide relief to the common men the government has increased food subsidy

to Rs. 13 billion. Essential items such as Sugar, Atta, Pulses, Edible Oil/Ghee, medicine

(some basic medicines) and other essential items will be sold at discounted prices through

the Utility Stores. The prices of some of the items which will be sold through the Utility

Stores are given below:

Gram pulse will be sold at Utility Stores at Rs. 29 per Kg against the average market

price of Rs. 38 per Kg.

Moong pulse will be sold at Rs. 47 per kg against the average market price of Rs. Rs. 56

per kg.

Daal Mash will be sold at Rs. 57 per kg at the Utility Stores against the average market

price of Rs. 72 per kg.

Ghee is currently being sold at Utility Stores at Rs. 67 per kg against the average market

price of Rs. 80 per kg.

Sugar will be available at Rs. 25 per kg at Utility Stores as against the average price of

Rs. 30 per kg in the open market

Tea will be sold at Rs. 10 per kg less than the market price at Utility Stores

The different varieties of Rice will be sold at Rs. 5 per kg less than the market price.

The number of Utility Stores is currently 1000 in the country. In order to extend the

coverage of the Utility Stores to the Union Council level, the government is opening

5000 more Utility Stores, one in each Union Council, in 4 months time. This will not

only create job opportunities but will enhance the availability of essential commodities at

the door step of the people even at the union council level at an affordable price.

Under the President¡¯s Initiatives, the launch of Rozgar Scheme has been very successful.

Many young people have already established their businesses with a loan at a fixed

interest rate of 6.0 percent per annum. In the next 5 years, 1.8 million young people will

establish their businesses.

The President¡¯s Initiative for Urban Clinics has been launched and some 815 medical

clinics are being established in Islamabad, Rawalpindi, Karachi, Lahore, Faisalabad,

Peshawar and Quetta. In every clinic, there will be one doctor, one lady health worker

and one dispenser to provide medical consultation.

Clean drinking water plant in each Union Council level is being installed. Already 327

plants have been installed in the country.

4

Agriculture

Agriculture continues to be the single largest sector, a dominant driving force for

growth, employing over 43 percent of workforce and the main source of livelihood for

66 percent of the country¡¯s population. As such, agriculture is at the centre of the

national economic policies.

The government has taken revolutionary measures to enhance agricultural

productivity by increasing the subsidy on DAP fertilizer from Rs.400 per bag to Rs.470

per bag. Encouraged by the results of last year subsidy on DAP that helped Pakistan

achieve the highest level of production of wheat crop (over 23.5 million tons), the

government enhanced the level of subsidy to achieve even better results this year.

Through this subsidy the government is encouraging the use of phosphatic and

potassic fertilizer. Last year, the yield per acre increased by almost 10 percent ¨C from

2519 kg/ hectare to 2769 kg/ hectare as a result of the subsidy on these types of

fertilizer. The government has reduced the electricity tariff for the use of agriculture

tube well by 25 percent. These two measures will reduce substantially the cost of

agricultural production, increase the level of incomes of farmers and will help reduce

rural poverty.

Furthermore, the government has allocated almost Rs.16 billion in the Budget for

further development in agriculture. Almost all agricultural implements imported

from outside have already been made zero-rated. The farming community is

delighted over these revolutionary measures but one critique in his recent article

termed these measures as ¡°neutral for the agriculture¡±. The critique must be belonging

to the non-farming community.

Promoting Investment and Growth

In order to further promote industrialization, improve the competitiveness of our

industry and build their capacity the government has taken wide-ranging measures in

the Budget through rationalization of tariff with a view to reducing cost of doing

business.

In doing so, the government has maintained consistency and transparency in

tariff policy. In the Budget 2007-08, the government has reduced duties on raw

material, parts and component of CNG compressors; paper and paperboard;

equipments for alternative renewable energy resources like solar, wind and biotechnology,

transformers, submersible motors electricity meters, switchgears and

electric bulb and tube lights, light engineering products; energy saving lamps and its

raw materials/ parts; footwear, football leather, aviation equipments; gems and

jewelry; furniture, marble and granite, horticulture; surgical equipments / medical

devices etc. Poultry feed items, poultry vitamins, evaporation air cooler, insulated

sandwich panels and silos for storage of poultry have been exempted from duty.

Besides these, hundreds of other measures have been taken to promote

industrialization through improving competitiveness which is difficult to list them

here. These measures are in continuation of consistent tax and tariff reforms which

have been going on for quite sometime.

5

Strengthening of Physical Infrastructure

A strong infrastructure is pre-requisite for country¡¯s development. Investment in

infrastructure directly affects economic growth and reduces poverty. Investment in

infrastructure has been a priority area and the same is true in this year¡¯s Budget. The

Federal Budget 2007-08 has earmarked Rs.520 billion for development program. In

addition, development program worth Rs.204 billion is put outside the budget which

will be undertaken by WAPDA, NHA and other organizations.

Of the total size of the PSDP, Federal PSDP is estimated at Rs.335 billion. Out of

the Federal PSDP, 49.7 percent (Rs.166.5 billion) will be spent on physical

infrastructure. Within infrastructure, water and power including village electrification

receive Rs.84.1 billion or 50.5 percent of total infrastructure spending. This amount is

19.0 percent higher than last year. Allocation to communication including National

Highway Authority, Ports and Shipping and Railways is estimated at Rs.42 billion or

25.2 percent of infrastructure spending. Apart from budgetary spending, Rs.187.5

billion will be spent on power, fuel and transport and communication from outside

the budget. As such, over Rs.354 billion will be spent on infrastructure during 2007-08

which will not only strengthen the country¡¯s infrastructure but also will help in

supporting the on-going growth momentum and reducing poverty.

Improving Social Indicators

Pakistan has impressive record of respectable economic growth but its social

indicators lag behind countries with comparable per capita income. In recent years,

Pakistan has made substantial progress in improving its social indicators. For

example, Pakistan¡¯s literacy rate has improved from 45 percent in 2000-01 to 54

percent in 2005-06; gross enrolment at primary level (5-9 years) improved from 72

percent to 87 percent in the same period; infant mortality is down from 82 to 70, and

total fertility rate has declined from 4.5 to 3.8 during 1998-99 to 2005-06.

Notwithstanding these improvements in recent years, much more needs to be done to

align Pakistan¡¯s social indicator with its growth potential. It is in this perspective that

the government is allocating more resources to education and health. It is important to

note that education and health are provincial subjects and bulks of expenditure on these two

items come from Provincial Governments¡¯ Budgets. In the Federal Budget 2007-08, the

government has allocated Rs.24.5 billion on education, including higher education,

which is up by 21.3 percent over last year. This is only the development budget on

education while non-development (salary of the teachers etc.) budget is several times

higher than the development one. Interestingly, one critique in his recent article

sarcastically remarked that education budget is 6.5 percent of defense budget. For

such type of critique it is reminded that Rs.24.5 billion is only development budget of

the federal government while bulk of expenditure on education comes from

provincial governments. In the year 2006-07, the total public sector expenditure on

education was Rs.211 billion which was 84 percent of defense spending. In 2000-01,

the education budget was 58 percent of defense spending which has increased to 84

percent in 2006-07 ¨C a 26.0 percentage points increase in 7 years. We encourage

6

criticism but the fact should be right. The total expenditure (development and nondevelopment)

on higher education amounted to Rs.33.8 billion in 2007-08, of which,

development budget is amounted to Rs.18 billion. It has grown at the compound rate

of 35 percent per annum since 2000-01. The development budget on the other hand,

increased from Rs.337 million in 2000-01 to Rs.18 billion in 2007-08 ¨C over 50 times

increase in 8 years. I hope the critique would know the facts and before writing next

time he/ she should be careful. Allocation to health and population (development

budget only) amounted to Rs.18.6 billion which is up by 24 percent from last year. Once

again, it is reminded that expenditure on health is a provincial subject and bulk of its

allocation will come from provincial budgets.

Housing Initiatives

Housing schemes for poor is being launched. Land will be provided on official rate by

district/ provincial governments. This scheme is expected to provide 250,000 units and

shall benefit more 1.5 million families in all provinces.

A scheme is under preparation for construction of 37000 apartments for low paid federal

government employees.

The government has instructed the CDA to develop a Sector of 3 and 5 marla plots for

low paid employees.

In addition, in Sector I-15 in Islamabad, 5500 plots and 8500 apartments will be reserved

for low income employees

Let me conclude by saying that Pakistan of today is different from Pakistan of

yester years. Pakistan has emerged on the radar screen of the global economy. It has

positioned itself as one of the fastest growing economies in the Asian region. Some 15-

20 years ago, China, Singapore, Korea, Hong Kong and Malaysia used to figure in

Asian region as emerging economies. Today, it is China, India, Pakistan and Vietnam

that figure in Asian horizon. What a change in just 8 years. Let us accept this change

and be proud of our success. As a nation we must learn to celebrate our success. This

does not mean that we do not have any challenge. There is no economy in the world ¨C

how strong it may be ¨C that do not suffer from one challenge to another. Although we

have made great strides over the last eight years, we are fully aware that we have

work to do for better tomorrow.




-----------------------------------------------------------
N A D E E M M A L I K
CNBC PAKISTAN
BUREAU CHIEF
ISLAMABAD

0321-5117511

nadeem.malik@hotmail.com

16th Floor, Saudi Pak Tower, 61-A Jinnah Avenue, Islamabad. 051-2800113-14, Fax: 051-2800118

 



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Monday, June 18, 2007

PAKISTAN RANKS 12TH ON FAILED STATE INDEX IN 2007

PAKISTAN RANKS 12TH ON FAILED STATE INDEX IN 2007

 

 

 

Pakistan

 

 

Total Score

Indicators
Social Economic Political/Military
2005 89.4 5.0 5.0 6.9 8.0 9.0 3.3 9.8 7.5 8.1 9.0 9.3 8.5
2006 103.1 9.3 9.3 8.6 8.1 8.9 7.0 8.5 7.5 8.5 9.1 9.1 9.2
Point Change +13.7 +4.3 +4.3 +1.7 +0.1 -0.1 +3.7 -1.3 0 +0.4 +0.1 -0.2 +0.7
Pct Change +11.4% +43% +43% +17% +1% -1% +37% +13% 0% +4% +1% -2% +7%

 

Overview
The modern state of Pakistan came into being in 1947 following a partition of India and has been plagued by chronic unrest ever since. Pakistan is located in South Asia, bordering India, Afghanistan, Iran, and China. Following the September 11 terrorist attacks, Pakistan's strategic location has placed it on the frontlines of the Global War on Terror (GWOT). The major ethnic groups in Pakistan include Punjabi, Sindhi, Pashtun, Baloch, and Muhajir. Most of the population (97%) is Muslim although tensions between the majority Sunni (77%) and minority Shia (20%) factions have led to ongoing outbreaks of violence. In addition, violence between Muslims and Christian and Hindu groups (3%) has led to tens of thousands of deaths since independence. Pakistan has a population of approximately 165 million and population growth rate of 2.09%. It is also an impoverished and underdeveloped nation, with an annual GDP per capita rate of $2,400. A simmering conflict with India over Kashmir, as well as the inability of the government to crack down on radical groups in the autonomous regions of Baluchistan and the North West Frontier Province, have been the source of wider regional instability.

Social Indicators
The October 2005 earthquake, which registered a 7.6 on the Richter scale, is the single largest factor in Pakistan's significant jump on the Failed States Index 2006 (FSI 2006). While the devastating earthquake contributed most to Pakistan's tumble in scores from last year, the escalation of internal strife also played a role in Pakistan's ranking. The earthquake, which resulted in the deaths of an estimated 88,000, also displaced millions in Pakistan-controlled Kashmir and the North West Frontier Province, which accounts for the high score in indicator 2. Demographic pressures resulting from the earthquake, including the scarcity of food, water and shelter in the months following the quake, resulted in the sharp increase in the indicator rating from a 5.0 on the FSI 2005 to a 9.3 on the FSI 2006. The increase in the score for indicator 3, group grievance, was not only a result of popular unrest following the slow distribution of aid after the earthquake, but also a spike in clashes between government security forces and militants in Baluchistan and the North West Frontier Province. From June to December 2005, clashes occurred almost nonstop resulting in the deaths of hundreds of suspected militants as well as Pakistani security forces. In addition, a widening rift between the government of General Pervez Musharraf and the powerful Pakistani security apparatus and religious leaders became increasingly evident throughout the year. Pressured by the U.S. government to crack down on Islamic fundamentalist groups operating within the country, particularly in the border area between Afghanistan and Pakistan, Musharraf appeared to be losing the balancing act of trying to appease the U.S. while simultaneously not alienating the country's powerful mullahs.

Economic Indicators
Pakistan's economy, already suffering from low levels of foreign investment and a 2005 inflation rate of 9%, was further damaged by the October earthquake. It is officially estimated that 32% of the population live below the poverty line, although the real number is likely to be much higher. In Kashmir and the North West Frontier Province, the earthquake completely destroyed several main towns and devastated the agricultural sector, which accounts for the livelihoods of the majority of citizens in these areas. Pakistan's economy is heavily reliant upon worker remittances and that remained unchanged in 2005. Pakistan's economy was artificially inflated in the months following the earthquake, with billions of dollars of international aid and development assistance pouring in from the World Bank, the Asian Development Bank, and other donors. One promising economic trend in 2005 was GDP growth (7%), driven by gains on industrial production and the gradual shift away from dependency on the agricultural sector.

Political/Military Indicators
Pakistan's political and military indicators all remained high in the FSI 2006, reflective of the deep divisions within the country and continuing hostilities with neighboring states. The score for indicator 9, human rights, jumped almost half a percentage point as international media reports increasingly focused on Pakistan's deplorable human rights record, particularly with regard to women. In addition, the indicator score for security apparatus remained high, as the shadowy Pakistani Inter-Services Intelligence Agency (ISI) continued to operate as a state within a state. The ISI is believed to wield significant support from Islamic jihadist groups and tensions between the agency and the Musharraf government have been exacerbated by the systematic crackdown on religious groups and madrassas. The indicator score for external intervention also rose in the FSI 2006, due mostly to international relief campaigns following the earthquake and U.S.-led counterinsurgency efforts in the border areas with Afghanistan. Public services remained inadequate throughout the country, with the much of the population not having access to basic medical services, particularly outside of urban areas. While the score for state legitimacy improved in the FSI 2006, the ability of the Musharraf government to reign in Islamic extremists while not completely marginalizing both the security apparatus and religious leaders remained uncertain. Particularly in the frontier provinces, legitimacy has little connection with the central government and tribal affiliations supplant state authority.

Core Five State Institutions
 

Leadership Military Police Judiciary Civil Service
Moderate Good Moderate Moderate Moderate

General Pervez Musharraf's leadership has continually been tested since he assumed power in a military coup in 1999. His cooperation with the U.S. in the Global War on Terror, and his crackdown on religious fundamentalists, have undermined his domestic legitimacy to a certain extent with parts of the population sympathetic to the jihadists.

With one major exception, the Pakistani military is well trained and remains under the control of the state, with General Musharraf as the Chief of the Army Staff and Head of State. The questionable element is the ISI, which is believed to operate with near complete impunity.

The police contain both civilian and paramilitary wings. Both the civilian police and the paramilitaries commit human rights abuses and are highly corrupt. Recent efforts to reform the police have resulted in decreased reports of extrajudicial killings and torture, but police still often act with impunity.

The judiciary is overburdened and susceptible to outside manipulation, particularly from powerful religious leaders who monitor the proper interpretation of Sharia law, known as the Hudood ordinances.

The civil service is generally well trained and professional, although underpaid and susceptible to manipulation.

Prognosis
The future of Pakistan is largely dependent on the ability of General Musharraf to maintain the precarious balancing act between cooperating in the Global War on Terror while appeasing the powerful military and religious leaders that are crucial to his power base. In addition, to prevent wider regional destabilization emanating from the lawless border zone between Pakistan and Afghanistan, Musharraf must find a formula that allows for tribal leaders to maintain autonomy but not at the cost of funding the insurgency. International efforts to rebuild the areas of Pakistan affected by the earthquake have been steady, but there still needs to be a stronger government–led drive to address wider Pakistan's chronic poverty and endemic corruption.




-----------------------------------------------------------
N A D E E M M A L I K
CNBC PAKISTAN
BUREAU CHIEF
ISLAMABAD

0321-5117511

nadeem.malik@hotmail.com

16th Floor, Saudi Pak Tower, 61-A Jinnah Avenue, Islamabad. 051-2800113-14, Fax: 051-2800118

 



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Benazir, PPP, Deal

Pakistan's Bhutto claims deal on power share

By Jo Johnson

Published: June 17 2007 22:11 | Last updated: June 17 2007 22:11

Benazir Bhutto claims to have secured a "verbal" agreement from her principal rival for the prime ministership of Pakistan to a power-sharing arrangement that would see her have first crack at running the country for five years.

In an interview with the Financial Times, Mrs Bhutto said that she and Nawaz Sharif, the exiled leader of the Pakistan Muslim League (N), had struck the bargain so that they could present a common front in their battle to reassert civilian control over the army.

Any such arrangement would go far beyond the published terms of the Charter of Democracy – a 36-point common programme to "save the motherland from the clutches of military dictatorship" – that Mrs Bhutto, who heads the Pakistan People's party, and Mr Sharif signed in May 2006.

"Both of us are committed to reforming the military establishment. So I hope that we will have a consensus within the parliament on the reforms that we are going to bring and that the military would not be able to play one of us off against the other," Mrs Bhutto said.

"Mr Nawaz Sharif and I agree. Mr Nawaz says, 'You should be the prime minister for the first five-year term', and after that five-year term he wants to run. So I hope that we can move forward. That's a verbal discussion between us but that is what he has said to me."

But Iqbal Zafar Jhagra, the secretary-general of the PML (N), denied there was any such offer from Mr Sharif. The claim and counter-claim illustrate the tensions between opposition groups as they jockey for position in a fast-changing political scene.

"The people will decide in fair elections who forms the government," he said. "If she forms the government, Mr Sharif has said we will respect her mandate, or that of anyone else elected by the people. This is a new development in Pakistani ­politics."

For either to become prime minister would require General Pervez Musharraf, Pakistan's embattled president, to reverse his position that neither of the former prime ministers will be allowed back into the country and to rescind a law barring them from a third term.

Gen Musharraf is under US pressure to honour a pledge to step out of uniform by December, allow back the two exiled leaders and abandon plans to be re-elected by the outgoing parliament before fresh elections throw up a less favourable electoral college.

Mrs Bhutto, who has served as prime minister twice, between 1988 and 1990 and 1993 and 1996, acknowledged that the PPP had been discussing a possible deal with Gen Musharraf that would enable him to continue as president, provided he agreed to quit as army chief.

"We've had discussions but they have not moved forward," she said. "We've left all options open. We may abstain or we may resign. To say that we've decided not to vote against him would be wrong."

A poll published in April by the Washington-based International Republican Institute showed the PPP to be the most popular party, with support from 25.7 per cent of sampled voters, an increase of nearly four points on the IRI's September 2006 poll.

 

Benazir Bhutto prepares for encore

By Jo Johnson

Published: June 17 2007 22:11 | Last updated: June 17 2007 22:11

Nearly two decades after she became the first elected female prime minister in the Islamic world at the age of 35, Benazir Bhutto is preparing for an encore. Within the next few months, as Pakistan lurches towards elections, she plans to return to the country she fled in 1999 in a bid to seize the prime ministership for a third time.

In an interview with the Financial Times, she warned the US that a further prolonged period of "unrepresentative" military rule in Pakistan would encourage the spread of extremism and anti-Americanism, creating a severe backlash against western interests in this strategically located country of 150m people.

"Very little of the $10bn in US aid has trickled down to the people," she says. "As people get poorer and as unemployed figures go higher, they say that the reason we're suffering is because we don't have representative government, because the US needs Musharraf for the war in Afghanistan. They see that identification and they react against it."

Her return, if permitted by the authorities, will shake Pakistan. Although her two stints in office, 1988-90 and 1993-96, ended ignominiously, as the bearer of the Bhutto name and legend she is the custodian of the biggest brand in south Asian politics after India's Nehru-Gandhi dynasty.

The Bhutto name may have been tarnished by allegations of corruption and compromises with the military, but it remains powerful, steeped in blood and history. Mrs Bhutto's father, the populist prime minister Zulfikar Ali Bhutto, was executed by General Zia in 1979. Her two brothers were murdered. She underwent long and gruelling incarcerations.

Mrs Bhutto, head of the Pakistan People's party – the largest centrist party in the country – senses that the pendulum of Pakistani civilian-military relations is swinging in her favour. General Pervez Musharraf has been weakened by outrage over his suspension of the chief justice, tolerance of riots in Karachi in which pro-government mobs killed 48 people and crude attempts to muzzle the media.

With his popularity ebbing and hers once again soaring, Gen Musharraff's plan to have himself re-elected looks untenable. With even the US, his main international backer, now also calling for him to honour a promise to step out of uniform and unlikely to support him in any move to impose a state of emergency, he has little option but to expand his coalition.

Mrs Bhutto has signed a 36-point programme with Nawaz Sharif, leader of the rival Pakistan Muslim League (N), setting out their demands for the holding of fair elections. However, analysts still expect her to try to strike a deal with the general.

Delicate discussions have been under way for several months, but "have not moved forward", she says, noting that he has met only one of the 36 demands, relating to transparent ballot boxes.

The big stumbling block is the PPP's insistence that Gen Musharraf step out of the uniform from which his authority flows.

But it is not the only point of difference. Mrs Bhutto wants Gen Musharraf to drop the corruption charges, brought by Mr Sharif in the 1990s, that have kept her in exile. She also needs him to scrap the two-term limit he imposed on the office of prime minister and to give credible guarantees that parliamentary elections will be fair.

She says she is "troubled" that the Election Commission has refused to give the PPP an electronic list of voters and that the number of voters has fallen to 50m from 70m in 2002, even as Pakistan's population has grown.

"We suspect that 20m votes, which are opposition votes, are not there," she says. "The entire election is rigged if 20m votes are missing, one-third of the vote in elections that are won by 1-2 per cent. My concern is that Gen Musharraf's regime is not heading towards fair elections.

"The international community can't risk the backlash if he moves in a direction that does not allow free and fair elections."

Her critics say her deal-making reflects the perennial weakness of Pakistan's opposition parties, which have allowed military rulers to play one off against another and let themselves be co-opted into governments that are little more than fronts for the army.

Non-partisan analysts say that Mrs Bhutto's perceived deal-making and adoption of a less aggressive stance towards Gen Musharraf than rival politicians, risks undermining the Alliance for the Restoration for Democracy, the umbrella group that has, at least for the moment, managed to forge a common front out of bickering opposition parties.




-----------------------------------------------------------
N A D E E M M A L I K
CNBC PAKISTAN
BUREAU CHIEF
ISLAMABAD

0321-5117511

nadeem.malik@hotmail.com

16th Floor, Saudi Pak Tower, 61-A Jinnah Avenue, Islamabad. 051-2800113-14, Fax: 051-2800118

 



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Friday, June 15, 2007

U.S. Assistant Secretary of State, Richard A. Boucher Interview

EXCERPTS -- UNOFFICIAL TRANSCRIPT

 

U.S. Assistant Secretary of State, Richard A. Boucher

On Camera Panel-interview with Pakistani Television Media

 

 

June 15, 2007

U.S. Embassy, Islamabad

 

(Begin Excerpts)

 

QUESTION: Thank you very much for inviting us here and having the time for us.  President Musharraf has been saying that he will decide about his uniform issue as per the Constitution of Pakistan. Two days back, the State Department Spokesman expressed his belief that General/President Musharraf will remove his uniform and he will get re-elected from the next assemblies.  What formed the basis of that belief in the State Department?  Is their some assurance from President Musharraf or this is your own democratic aspirations?

 

ASSISTANT SECRETARY BOUCHER: I think, first of all, that there is the assurance that you cited in your question, that the President has said he would deal with this matter of two jobs in accordance to the Constitution as part of the election process. We take him at his word that he will do that. So, we're repeating what we've already heard and said.  That is, that the President has said he will deal with this matter in accordance with the Constitution as part of the elections.

 

As far as how the scenario unfolds this fall, I think our Spokesman also noted that there were different scenarios and I guess we'll see what happens.  But to a great extent, how the election happens, how a new election happens, is up to the Pakistani people.  Our interest is in seeing an election that is free and fair and that gives a choice to the Pakistani people, where the Pakistani people can really choose who their leadership is going to be.

 

QUESTION:   Ambassador Boucher, this is a question about the bigger picture.  A section of Pakistani public opinion, one that a visitor to the country may not often get to meet directly because this section of the public opinion is not affiliated with any of the political parties, opposition, or government. This section believes that Pakistan, our country, needs an incremental democratic process, the kind that the Musharraf administration unleashed over the past eight years.  I am just wondering, what is the prevalent viewpoint within, among, the Pakistan watchers inside the State Department about this?

 

ASSISTANT SECRETARY BOUCHER:  I think that the prevalent viewpoint in the U.S. Government, that is really mirrored by a lot of opinion I meet here, not just some specific section but a lot of different people, is that it's time for Pakistan to move back to democratic elections and civilian rule.  But that's part of moving in a more moderate direction.  And in fact that's the direction that President Musharraf has set.  We're happy to work with him in that regard.  He's announced a program moving the country in a moderate direction, moving the country to free and fair elections. 

 

Just the other day, he reversed some regulations against the press and reaffirmed the need for a free press.  Those are all things that we support and we're frankly happy to work with the government, we're happy to work with the Pakistani people as a whole, to help the country move in that direction. That's our goal too:  to help Pakistan succeed as a stable, moderate, democratic, prosperous society.  So, I don't see any contradiction between supporting democracy, working with President Musharraf on all the big things before him and before us, and helping us all move in that direction that's good for everybody. 

 

QUESTION:  My question is the role of Pakistan in the war on terror. After 9/11, Pakistan has done a lot in the war on terror.  Hundreds of suspects of al Qaida and Taliban were captured and handed over to the U.S. Department and U.S. authorities and hundreds of Pakistani soldiers have sacrificed their lives.  But we often see statements from U.S. officials that Pakistan should do more. What specific U.S. wants to do Pakistan?

 

ASSISTANT SECRETARY BOUCHER:  Well, I think first of all there are a lot of different statements in the United States because we are a democracy and you'll hear a variety of views in the press and in the Congress.  Hopefully you hear a very consistent view from the Administration - we're the ones who have to annunciate a consistent policy working with Pakistan in the war on terror.  And that's what our goal is.

 

We certainly recognize the enormous effort, the enormous achievements and the enormous sacrifices that Pakistan has made so far.  I've often said in the Congress and elsewhere that no country has done more against the terrorists or lost more people doing so than Pakistan.  And I think that's an important place to remember. 

 

At the same time, we're not done with this.  We have a job to do in Afghanistan and in Pakistan, where we all need to work together to eliminate this threat.  This threat comes to the nations of the region, to Pakistan or Afghanistan, comes to the greater world, from having spaces where terrorists can plot and plan. We have already seen many times what happens if governments don't have control of those spaces.  We see what happens to the people of those areas, whether it's southern Afghanistan or the Pakistan border areas, where people have been left behind, where people haven't had economic opportunity, where they haven't had education for their kids.  So for both those reasons, controlling the terrorists and developing those regions, we're working with Pakistan and we're working on the security side but also on the economic side. 

 

QUESTION: Mr. Boucher, there are media reports that you are for mediating a deal between President Musharraf and the Pakistan People's Party.  Is it a true story?

 

ASSISTANT SECRETARY BOUCHER: You know, I think I've come here about nine times since I took this job fourteen months ago, so I'm here on a very regular basis.  And I know every time I come there's some speculation that I'm going to get involved in the most recent crisis or issue.  I see my visits much more as a regular process of discussions between the two countries, strategic discussions between the two countries, discussions on the region, on what's going on in Pakistan, relations with Afghanistan, economic development, developing the border regions, all these different programs we have on education and economics and health.  So that's really the context for this visit, for my visits, whenever I come. 

 

Obviously, we're interested in the political situation.  I've had a chance to talk to a whole variety of people during my meetings and also at the reception the other night when all the political parties were there.  So, yeah, we talk about politics, and I hear about politics.  I'm interested in political developments.  I think as far as our role in that, ultimately the politics is going to work itself out in Pakistan.  The people in an election are going to decide which party and which party goes down and where they sit in various assemblies. 

 

But to the extent that we can encourage the parties to sort of move together, create a stronger moderate center, we do that and we think that's part of the overall direction of the country.  We think that the parties need to look for their common interest, need to look for how to stabilize the center of Pakistani politics.  And when we meet with leaders of the parties we make that view known. But that's encouragement to sort of move forward in a moderate and stable direction and we do that with everything.

 

QUESTION:   Mr. Assistant Secretary of State, you rightly said that you were interested in politics, but coming back to the question which I was asking from you, that well, there could be some assurance as you have just spoken from President Musharraf but here in the domestic scenario, he has never made a categorical statement that he will remove the uniform. 

 

Do you feel that his assurances include that he will remove the uniform?  Or do you believe that retaining the uniform will provide some chance of free, fair and transparent elections in this country?

 

ASSISTANT SECRETARY BOUCHER:  The answer is no. I don't believe either one of those things.  I don't believe that the whole issue of the election rises or falls on whether or not or when President Musharraf carries out whatever is appropriate under the Constitution with regard to his two jobs. The issue of a free and fair election is much more fundamental than that.  We've been here supporting the right of the Pakistani people to choose.  We've been supporting the work of the Election Commission.  We've been talking to the parties.

 

You know, the other night, all the party leaders were talking about an all-party conference to get all the parties together and agree on how to get to a free and fair election and what are the elements of that.  Whether this comes into it or not, you know, could be a subject for their discussion, but I think that the issue of the election is much broader.  We support an election process that is free and fair and gives the Pakistani people the right to choose, and it's not going to hang on one particular question.  That particular question needs to be answered but I think we have a bit of patience in seeing it answered at whatever is the appropriate time. 

 

QUESTION: You visited the Chaman border point between Afghanistan and Pakistan and I understand, according to the press reports, that you also saw the biometric system for identification of people crossing that border point.  Now there's a frustration among the, with the Pakistani government about that particular point.  They introduced that system in order to identify people crossing that area but the position of the Afghan government is not very positive, to say the least, non-cooperative really on that point.  What's your impression?

 

ASSISTANT SECRETARY BOUCHER: First of all, let me say I had a very interesting day yesterday. I want to thank everybody who was a host to me then in Quetta, the Chief Minister, the Chief Secretary, some of the members of the Provincial Assembly that I met with, the Police Chief. The Frontier Corps colonel who's in charge of that area took me around to one of the border points, one of the points where they stop the flow of illegal goods or people and then I was able to see the Chaman border crossing port including this really quite remarkable fingerprint identification, biometric identification system. 

 

I think, you know, we're talking about my visits and I remember being here in January when that was introduced and you're right, the reaction on the Afghan side was not positive, should we say. There were demonstrations and other things. Our hope is that some of these things can be worked out.  One of the things I've done in all my meetings here and in my meetings with Afghans recently is to say where, how many different matters can Pakistan and Afghans start really cooperating on.  They are cooperating on refugees.  There's more they can do on cooperating on economic exchanges and cross-border trade.  Obviously, the political discussions between the presidents in, meeting between President Musharraf and President Karzai in Turkey was important. The meeting between Foreign Minister Kasuri and Foreign Minister Spanta in Germany was important.

 

Those kind of political discussions need to keep going.  Issues like border crossings are naturals.  And somehow Pakistan and Afghanistan have to look at their common interest in having regular and well-regulated flow of people and goods across their borders.  And that's one of the issues we've encouraged them to take up. There have been some discussions but as you point out with this biometric system, we're not there yet and so we continue to encourage both sides.

 

QUESTION: But do you think it's a good system?

 

ASSISTANT SECRETARY BOUCHER: I think it's a great system. Whether it works for both sides or not, that's something that those sides are going to have to sit down and talk about. But in terms of Pakistan and that particular point, where they have so many people going across to the market in the morning and coming back in the afternoon, that having a quick way of identifying the known people, is very important.  Because then you can concentrate your efforts on the unknown people. And that's where your problems are going to be.

 

So, I think it's a great system for that location and given that kind of transit trade.  If it works for both sides, maybe we can get both sides to use it.  If not, at least if the sides start to sit down and work on cross-border movement, maybe they can figure out some other things that work.

 

QUESTION: Mr. Boucher, after 9/11, the United States has started military operations against terrorism.  Do you think that the military is the only way to combat extremism and terrorism?

 

ASSISTANT SECRETARY BOUCHER: Absolutely not.  And I think if you look at what we're doing, look at what we're doing in Afghanistan, look what we're supporting here.  You know, we've just got from our Congress a major, major, increase in funding for Afghanistan.  A billion dollars more.  And that money is going into our military operations which are necessary, building up the police so that the people of Afghanistan can have safety, building up the army so Afghanistan can take over its own security.  And a lot of money also is going into roads, electricity, and provincial government, provincial justice system.

 

Basically, people need a lot of things from their government and we have to be sure government can give them that.  Government has to extend itself and it has to deliver what the people need.  They want safety, they want justice, they want opportunity.  And opportunity comes about when you have a road and you have electricity and you have an irrigation system.  And they want a chance to decide their futures.  And that is, elections, democracy and a role in government.  So if you look at what people need, that's what you have to give them to stabilize these regions.  And I think that, frankly, that's the approach the Pakistani government is taking as well with regard to the tribal areas, the border areas.

 

You all know the history of these areas better than I do.  But they haven't been governed under normal arrangements since history (began).  And so as we move forward, we also need to develop these areas, give these people a stake in the national economy, give them opportunities.  So, we're supporting a sustainable development plan for the tribal areas that's going to be a significant investment for the Pakistani government, but also we're going to make sure that there's 750 million dollars available from the United States over the next five years to support that.  And we've already taken the steps with our Congress to make the money ready this, the portion, 150 million, available for this year. 

 

QUESTION: Mr. Boucher, the U.S. declares itself as one of the largest democracies.  Then why does your government support a military regime in Pakistan?

 

ASSISTANT SECRETARY BOUCHER: Well, we've been one of the largest democracies for 200 and some years.  Our goal is to support democracy and movement towards democracy wherever it appears, to give the people that are struggling, that are fighting, that are moving forward to democracy all the support that we can.  In Pakistan, it's not really an "us against them" scenario.  You have political parties pledged to democracy.  You have a President who is pledged to democracy.  And yes, he's a military ruler.  But he's pledged free and fair elections.  So we could say our task here is to support everybody. Everybody says to us, we want a free and fair election, and we're working with all of them.  We're working with parties, with the government, the Election Commissions, across the board with Pakistani society to try to help the whole society achieve this goal.  Everybody, as I said, everybody says they want free and fair elections.  We're going to try to help people get there. 

 

QUESTION: Let me come to follow up to initiatives of  President Bush's visit to Pakistan last year. It has been one year, three months, and around twelve days.  Some of the initiatives have not been implemented like the Strategic Dialogue was once held in Washington, follow-up was due in Pakistan after December and this is June now. And then Reconstruction Opportunity Zones, they have not got materialized into physical planning and action and then so on, you know, energy cooperation there were two meetings and then there is no follow-up.  Why are things not moving at the pace which was expected?

 

ASSISTANT SECRETARY BOUCHER: Well, I think we're doing better than you give us credit for.  But you're right, we have an agenda coming from President Bush's visit, from the meetings at that time with President Musharraf and we do follow up very carefully on that agenda.  That's one of the things I did this time and I've done on previous visits with the Foreign Ministry.  We have had a series of discussions, we had a Strategic Dialogue last year, we've had an economic meeting, we've had the Education Dialogue, we've had science and technology meetings, we've had a number of energy meetings, more than the high-level meetings, we've had some very specific ones on new technologies and cooperation in those areas.  And so we're going through a whole strategic agenda, the whole complete agenda. 

 

We have many programs here.  You know, this is the largest Fulbright Program, exchange program, that we have anywhere in the world, and that is going great guns.  And there are more scholars this year than last year.  So these things are going forward that have been announced. 

 

We haven't had the formal Strategic Dialogue.  But again, I have to say, every time we have a visitor - me, Secretary Gates, our Deputy Secretary of State who is going to come in and have discussions here for the next two days as part of the regular consultations - those are strategic level discussions between the United States and Pakistan.  There's no question that our relationship is a strategic one.  It's based on Pakistan's position in the world.  It's based on Pakistan's position in the region, on Pakistan's success as a moderate nation.  And those are the kind of talks that we have.  And yes, we will schedule a formal Strategic Dialogue soon.  But I think all this is going forward.  Some of it has produced its fruits faster than others, just like some trees produce fruit faster than others. 

 

Reconstruction Zones are going forward.  We said at the time it was going to take a little while to get it going.  We've done the economic studies to identify real economic potential for the zones.  We've now been working to craft the legislation.  And I think we're very close to the point where we'll have something to submit to our Congress.  So, it's a lot of in-house work to get that ready; it's a very complicated economic matter.  But it's pretty much on schedule, maybe a little bit slower than we would have hoped, but it's pretty much on schedule and moving forward even though most of the work so far has been in-house work and hasn't had much of the public impression.

 

QUESTION: Ambassador Boucher, this is more like more of a personal question. Often when you come here, I'm fascinated by the way often opposition politicians or local politicians in the provinces come up to you and draw your attention to very local provincial politics.  For example, yesterday you were in Quetta and one of the politicians there, who happened to be from the opposition, drew your attention to problems in his province, 'the government is not consulting us on major project' and other things, you know, very local political issues and I think he forwarded to you a complaint against the federal government of Pakistan regarding that, and you accepted that letter.  So I'm just fascinated, I mean, when you do this, when you accept this, what do you feel, I mean?  Do you, for example, give them a sign that you would help in this or get involved in that kind of local politics?  What's your feeling on a personal level?

 

ASSISTANT SECRETARY BOUCHER: Well, I think first of all, I try not to be, a Pakistani.  I'm not part of the political process here.  It's not my job to carry messages inside the country or to advocate a point of view inside the country. You know, I'm an outsider, and so my interest is in sort of, what's going on around here.  How does this affect the development of the country, how does this affect the stability of the country, how does it affect our ability to work together on things that are important?

 

So, I suppose politicians talk to us for a variety of reasons.  One is that's what politicians do and that's what we do.  So we fit together pretty well – they talk, we listen, it's always interesting.  Second of all, we're always looking for people to support their cause.  And third, if you want to have an understanding of what's going on in Baluchistan - that is very important to us because there's sort of two problems of violence.  There's the problem with the nationalist groups, and there's the problem with the border area with Afghanistan - you've got to listen to people, you've got to hear points of view about what's going on and why these problems exist, whether they can be settled in one way or the other. 

 

And second of all, this whole - you know, you say, national development projects are a local issue, but when we look at the strategic approach from Pakistan and the strategic goal of Pakistan in regard to the corridors to Central Asia, the opportunities that we see, and that Pakistan sees, that Afghanistan sees, for more trade and transit through Afghanistan down to the ports of Pakistan and beyond.  The port of Gwadar, the road links, the transportation links, how they're handled, how they're supported by the local population, that's a key element of the strategic picture. 

 

And so, these things sometimes look local but when I look at them, I tend to see them as part of a big strategic position of Pakistan and strategic cooperation with Pakistan, and how they're going to affect really the long term future for this part of the world.

 

QUESTION: Mr. Boucher, my question is about Pak-India relations and the Kashmir issue. And you now this Kashmir issue has created tension between these two countries and is also part of (inaudible) and heavy defense budgets, other people and nations.  The people of this region believe that United States can play a very important role to settle this issue, but it is not doing so. How would you respond to that?

 

ASSISTANT SECRETARY BOUCHER: I think we've played a role as best we can.  We are very interested in seeing progress between Pakistan and India.  We think that the progress that has been achieved in the last year or two, several years really, is quite remarkable, and certainly the prospects are better, the tensions are lower than at any time for decades.  You know, I was working with Secretary Powell in 2001-2002 when a lot of people were saying there's a risk of nuclear confrontation.  Now, a few years later, we have people saying there's a prospect of solving a decades old conflict over Kashmir.  I think it's, I'd rather be in this position than that position.

 

Our job I think is to encourage progress.  And every time we talk to either India or Pakistan, we talk about, we find out about where they stand in their relationships and their composite dialogue and their terrorism mechanism.  We encourage them to keep using those mechanisms, keep moving forward.  We encourage them to really finalize some of these things, not just to discuss the option or discuss the Kashmir deal or discuss cooperation but to really do it.  And I think that's the appropriate role for us. 

 

We recognize that movement in Pakistan and Indian relations has been based on statesmen from both sides.  President Musharraf has put out ideas, Prime Minister Singh has put out ideas, they've had conversations at various levels. They're doing quite well without us.  They're doing quite well on their own with our encouragement and so our desire is to keep that ball rolling and see if they can bring some of these things together as soon as possible and make some of this more concrete.  But so far, so good.  

 

QUESTION: Mr. Boucher, during your stay here you met political parties, leadership from political parties and other people around. Do you, are you satisfied with the political condition in Pakistan and do you expect that elections will be free and fair?

 

ASSISTANT SECRETARY BOUCHER: I think, I hear a lot from the political party leaders and have over time here and elsewhere, about the prospects for the elections.  I emphasize again and again our desires to see free and fair elections, to give the people of Pakistan a real choice, and a credible choice, and a fair choice, and have their choices respected by everybody. And everyone tells me that's what we need to do and then they start telling me, no in order to get there, you have to do this, have to do that, have to do that. 

 

Some of it's political.  Some of it's fundamental though - things like having voter lists, things like having the voter lists available for people to check, political parties to check, trying to see if they can't be made available in electronic form.  I think that would be a good idea.  Having a stronger, more independent Election Commission.  Tat was one of the reasons why I went to see the Election Commission.  Making sure that the parties and anybody else just stays out of the process once the voters go to vote. 

 

There are a lot of fundamental issues.  Our interest is in the process of democracy.  We support it with money, we support it with expertise, we support it with observers. We've seen a lot of examples from around the world, so we try to be very active.  But our interest is in seeing the process develop freely and fairly. And we'll work with the parties, we'll work the Election Commission, we'll work with everybody to try to see that that happens.

 

QUESTION: Excellency, as my friend pointed out, the regional peace.  There is a very important project called Iran-Pakistan-India gas pipeline.  We know that the European countries, they are having good relations with Iran as far as Iranian petroleum products are there.  There is no UN Security Council resolution even by (inaudible) Iranian petroleum products.  But when this comes to the question of IPI, the United States is all-out against this project.  It's a belief that it's going to enhance further the regional peace and security environment.  Why this particular position is from the United States?

 

ASSISTANT SECRETARY BOUCHER: Well, I think there are a couple of factors at work here and we've expressed - you're right, we've expressed our skepticism about the project.  We've expressed our reservations about the project.  That's the way I'd put it.  And let me tell you why. 

 

First of all, I don't think you can separate Iran's behavior in one particular area, where of its own personal and particular interest, from what Iran is doing more generally in the region and in the world.  And, yes, Europeans have oil and gas, and petroleum relationships with Iran.  But they're also, like us, pretty much fed up with the way Iran has pursued nuclear weapons, and I don't believe Pakistan wants another neighbor with a nuclear weapon. 

 

So, you have to look at you bigger interests in all these things.  You have to look at the issues of terrorism, you have to look at the issues of Middle East peace.  You know, every time we talk to President Musharraf, he's always interested in promoting or pursuing peace in the Middle East, while Iran is directly opposed to that.  Iran is trying to sabotage Middle East peace through their support for terrorist groups. So, I don't think you can say this is OK even though Iraq is a problem.  I think you have to look at some of these things in a bigger context. 

 

Second of all, I don't know that you want to tie your gas supply to Iran.  That's a question, that's a question people have to answer.  There are also commercial questions about the deal and we'll see where that goes.  And third, we have to point out, in fairness and honesty, that there are U.S. regulations that determine how we can cooperate with countries that invest in Iran.  And so, we wouldn't want someone to go into a deal and find out there are consequences for the United States that they hadn't anticipated.  So, we do make that clear. 

 

But, you know, energy supply for Pakistan, we recognize is a very important question.  And we've been working with Pakistan in a variety of ways. We've been working now to promote the electricity supply from Central Asia and really there's going to be electricity coming down here from Central Asia in a few years and we've been part of that.  We've been going to all the meetings, we've been promoting feasibility studies.  Companies are now expressing interest in building the power lines.  So, we've tried to help Pakistan deal with its energy problems and develop new energy sources without saying you should start relying on a country like Iran, which is not necessarily the most reliable for a significant portion of their supply.

 

QUESTION: About Central Asia, Ambassador, which is your area.  Last week's spat between Washington and Moscow over the missile defense system for Europe.  Now there's a sense among observers that this might negatively impact the U.S. cooperation with the Russians as far as the security in the Central Asian region is concerned, which is our region really.  What's your sense of that?

 

ASSISTANT SECRETARY BOUCHER: Well, I think two things.  One, on missile defense, the developments were sort of interesting last week because Russia had gone on record before that as saying there's no point to having this system, it's a bad thing, it's threatening.  And then they moved last week to say, well, it's OK, it has a point, it has a use, but it shouldn't be here, it should be there.  So, we're no longer whether it's good or bad, we're talking about where it should be.  That's progress.  On the other hand, we're going to have to talk about these things and with the Europeans and the Russians, we'll get together and talk about missile defense because that's what it is, defense, and it helps all of us.  So, I think we've, they say in diplomacy if you can move your argument forward, you've actually made progress.  I think last week was a good week and we've made progress on missile defense. 

 

As far as U.S.-Russian cooperation in Central Asia, it really revolves around the countries themselves.  These countries, they want to stop the drug flow, they want to prevent terrorism, they want to have strategic options that go beyond Russia and China and come to the south, just like Pakistan wants to develop her role as a gateway.  So, there's a lot of common interest there and frankly, interests that we believe fundamentally serve, are good for the Russians, good for the Chinese, good for everybody in the region.  It has to be based on the countries themselves and we have regional cooperation with the countries themselves.  One of the things I did in Almaty was to visit a regional drug control center that's being put in place where we'll be there, the Russians will be there, the countries will be there.  We think we can enhance the already very active counter-narcotics cooperation in the region. 

 

We're supporting regional trade developments because it's one thing to build roads and electric lines, and we're doing all that, but at the same time, you need to make sure the border posts operate smoothly, we need an end to bribery, change the trucking regulations, whatever else it takes for the vegetables to flow, or the goods to flow, or ideas to flow.  So, we are working in a regional context and we do hope to work with Russia in that context.  

                                               

QUESTION: But the fact, Mr. Ambassador, would you be open to the idea of the Russians, that the one that the Russians are proposing, the using of the radar in Azerbaijan instead of the radar you want to put in Europe?

 

ASSISTANT SECRETARY BOUCHER: In many ways, that question goes beyond my personal competence and I haven't seen any studies.  Part of it's technical, would it work, and part of it's what's the most economic and efficient way to organize this system.  But I think we, NATO, European countries have said we ought to sit down with the Russians and talk about this.

 

QUESTION: Mr. Boucher, after this latest legislation by the U.S. Congress about Pakistan, what is the status of F-16 deal? 

 

ASSISTANT SECRETARY BOUCHER: Which latest legislation? 

 

QUESTION: Legislations that U.S President Bush, will, the President will provide a certificate about Pakistan is doing...

 

ASSISTANT SECRETARY BOUCHER: You have to remember that it hasn't passed.  That's not legislation; that's not a bill; that's not an act of law.  That was a bill passed by one side of our legislature, the House.  The Senate didn't have that provision and they have to get together to work it out. So, we'll see what ultimately emerges from the Congress.  We have been opposed to that provision.  We've made that very clear on the record.  I have taken it up with people on the Hill. Others in the administration, the White House, senior levels of the State Department, have objected to that provision.  So it may never become law.  It may change or be dropped by the time final legislation is prepared.

 

As far as you more basic question, what's the status of the F-16 bill - right on track.  It's going forward fine, won't be affected, we intend to proceed with it.  It's an important commitment, it's an important area of cooperation.

 

QUESTION:  The government of Pakistan claim that disturbance on Bandakhan border was mainly due to refugee camps there and that people move here and there and have sympathy for terrorists. (inaudible) Do you agree with this, and do you support Pakistan for repatriation of refugees to their homeland?

 

ASSISTANT SECRETARY BOUCHER: Well, first of all, I think we do support the refugees going back home.  When it comes down to it, people want to be home and they want to be able to live safely and securely at home.  And so, part of it is the conditions in Afghanistan and part of it is the encouragement and incentives we can give them to move back across. One of the reasons I wanted to go down to Baluchistan and Quetta is to talk to people and to see a little bit myself of the conditions at the, in the area, and talk to people about the repatriation process.  And, I think the only thing I'd say is there is a good process underway of Pakistan and Afghanistan working with the UN High Commissioner for Refugees and that they have the full support of the international community both for the Pakistan movement and also for resettlement in Afghanistan or wherever.  And that's the way this process should unfold and I was fairly pleased to hear that's the way the process is unfolding.  There's a lot of cooperation, there's a lot of effort being put in now.  It will help make all of us more secure but also that's how if we can help, give people a chance to move back to their homes and live safely, and grow with their families in their homeland. 

 

(End Excerpts)

 

# # #

 

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ISLAMABAD

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POWER SECTOR SHORTAGES JUNE 2007

ISLAMABAD: Prime Minister orders immediate measure to meet unprecedented power demand-

ISLAMABAD: Electricity demand up by 15-20 pct during the year- Industries Minsiter Jahangir Khan Tarin

ISLAMABAD: Prime Minister allows captive power plants up to 50 MW capacity to sell power to buyers at mutually agreed rates- Tarin

ISLAMABAD: Captive power to add 250 MW to National Transmission System- Tarin

ISLAMABAD: PM approves provision of 21 MMCFD gas for KESC enabling additional generation of 100 MW of electricity- Official statement

ISLAMABAD: WAPDA to lease 100 MW power plants on fast track basis- Official statement

ISLAMABAD: Strict enforcement of National Power Conversation Policy orderd to save 600 MW- Official statement

ISLAMABAD: WAPDA allowed to replace Guddu plant with the state of the art power plants generating up to 300MW additional powers- Official statement

ISLAMABAD: Increased inflow of water in dams to enhance hydel power generation by 500 MW to 600 MW within the next ten days- Offficial statement

ISLAMABAD: Ground breaking of 220 MW KESC plant within a week- Official statement

ISLAMABAD: Muzaffargarh, Guddu, Jamshoro and Lakhra generation companies asked to keep plants in operation round the clock- Official statement

ISLAMABAD: Repair work to be expedited at Guddu, and Muzzaffargarh thermal power stations- Official statement

ISLAMABAD: Peak power demand has increased by 2566 MW- Official statement

ISLAMABAD: Water and Power Ministry appeals consumers to replace normal Bulbs with Saver Energy Bulbs- Official statement




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N A D E E M M A L I K
CNBC PAKISTAN
BUREAU CHIEF
ISLAMABAD

0321-5117511

nadeem.malik@hotmail.com

16th Floor, Saudi Pak Tower, 61-A Jinnah Avenue, Islamabad. 051-2800113-14, Fax: 051-2800118

 



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Wednesday, June 13, 2007

Principles of Justice

There is a widely accepted principle of natural justice that there should be no hint of bias or prejudice in the administration and application of law.

British law (much of which was inherited by Pakistan) has over the centuries evolved several principles of natural justice, three of the best known being:

"Justice should not only be done but manifestly and undoubtedly be seen to be done"
(Lord Hewart, C.J - R. v. Sussex Justices, 1924)

"Judges, like Caesar's wife must be above suspicion"
(Lord Bowen, J - Leeson v. General Council of Medical Education & Registration, 1889)

Justice must be rooted in confidence and confidence is destroyed when right-minded people go away thinking 'the Judge was biased'
(Lord Denning, Master of the Rolls - Metropolitan Properties Ltd. v. Lannon, 1969)



-----------------------------------------------------------
N A D E E M M A L I K
CNBC PAKISTAN
BUREAU CHIEF
ISLAMABAD

0321-5117511

nadeem.malik@hotmail.com

16th Floor, Saudi Pak Tower, 61-A Jinnah Avenue, Islamabad. 051-2800113-14, Fax: 051-2800118

 



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Tuesday, June 12, 2007

CJ CASE DETAIL

Easily exposed to naked eye


By Ansar Abbasi

ISLAMABAD: Some serious discrepancies in the government affidavits filed with the Supreme Court's 13-member full court are too obvious to the naked eye.

The most hilarious affidavit is the one submitted by an Information Ministry official, whose statement dated March 8, 2007 addresses the chief justice as "ineffective" and talks of the events that actually unfolded only after March 9 when the reference was filed by the president against Justice Iftikhar before the Supreme Judicial Council.

Such serious discrepancies might just be the result of human errors but these are too scandalous to be ignored by even an ordinary eye and that in such a high profile case. Signed by Deputy Director PID Khalid Bilal on March 8, 2007 -- a day before the reference was filed against the chief justice --, the affidavit said towards its conclusion, "Being the interpreter of Law, the ineffective Chief Justice knowing well that his status & law demands that he should not address the bar councils, public rallies, media or conveying through his lawyers the comments, once the reference is subjudice with Supreme Judicial Council."

The pre-March 9 affidavit of Khalid Bilal also said, "The ineffective Chief Justice Mr. Iftikhar Muhammad Chaudhry infringed my rights under section 10 of the constitution of Islamic Republic of Pakistan and elevated his son ignoring more capable officers than his son. The detail of which is tabulated in the charge sheet served to him by President of Pakistan."

Bilal, who served as PRO to the chief justice, said that during his short tenure with the "ineffective chief justice" he experienced and observed some unusual incidents prejudice to the decorum of the apex court. Bilal ended his statement by saying, "The statement has been prepared and submitted without any external pressure, duress or fear but on the internal pressure from my conscious (sic)."

The affidavit of Jahangir Mirza, IG Sindh Police, was dated March 1, 2007 -- meaning thereby that it was prepared eight days before the filing of the reference against the Chief Justice. Mirza's affidavit used past tense giving the impression as if it was too prepared after March 9. For example, the affidavit said, "Mr Justice Iftikhar Muhammad Chaudhry generally had a coercive, intimidating and humiliating attitude towards the police officers including the undersigned, while hearing cases in court...."

At a later part of his affidavit, he added, "Mr Justice Iftikhar Muhammad Chaudhry was extremely fond of pomp and show....." Former IG Punjab Ziaul Hassan Khan's statement had scrapped words (not readable). These scrapped (blackened) words were used before "Chief Justice of Pakistan".

The details show that at least six of the affidavits were signed before the March 9 action while one does not carry any date. The affidavit by Lt-Col Saeedullah, Military Secretary to the Governor NWFP, was undated.

The affidavit by Khushnood Akhtar Lashari, former Additional Chief Secretary Punjab, is dated March 3rd, 2007; affidavit by Ali Junejo, district police officer, is dated March 8, 2007; affidavit by Khalid Bilal, former public relation officer, Supreme Court of Pakistan dated March 8, 2007; affidavit by Mudassir Iqbal, Director General (Protocol) Sindh along with details March 8, 2007; affidavit by Zia ul Hasan Khan, former IG Punjab dated March 7, 2007; and affidavit by Jehangir Mirza, former IG Sindh dated March 1, 2007.

According to the affidavit of the Lt-Gen (retd) Hamid Javaid, the details of the draft reference and the code of conduct for judges were brought to the notice of the president by the prime minister on 7 March in his presence. On March 8, 2007, he said, the President Secretariat received a summary containing advice of the prime minister to the president to make a reference against the chief justice of Pakistan to the Supreme Judicial Council under Article 209 of the constitution.

The affidavits that were not annexed with the CoS's bulky affidavit, available to the press, but partially reportedly included those of Balochistan Chief Minister Jam Yousaf, Interior Minister Aftab Ahmad Khan Sherpao, Interior Secretary Syed Kamal Shah, Establishment Secretary Syed Tariq Ali Bukhari, Director-General FIA Tariq Pervaiz, and former Chief Secretary Sindh Fazl-ur-Rehman etc.

The Establishment Secretary's affidavit is dated March 6, 2007 i.e three days prior to the filing of the reference and exactly three days after Bukhari was given controversial re-employment contract for the third consecutive year. Fazl-ur-Rehman's affidavit was also dated March 6.

Meanwhile, it is learnt that with regard to Thursday's story of The News about one of the signatories of the affidavits, who was claiming not to have signed any affidavit, the government is of the view that this correspondent had pressurized and also offered rewards to him to make him ready to say this.

One is constrained to clarify that such tactics are alien to journalistic professional ethics and that the officer, whose name was withheld by us on his request, had voluntarily said more than once that he did not sign any affidavit. However, he was invited to give his statement on the record if he was sure of what he was stating but he declined, adding that he, being a civil servant, was too weak to fight against the powerful.

The officer was doubtful not only about the signatures on "his" affidavit but also its contents. At one point, he categorically said that the affidavit was never signed by him. At another stage he said that the signatures appearing on the affidavit were not his but these do resemble to his initials.

 

 

 

Not beyond a reasonable doubt!


By Ansar Abbasi

ISLAMABAD: Will the signatories to the affidavits, filed with the sworn statement of the chief of staff to the president, submitted to the full court, depose before the judges about the authenticity and veracity of their statements?

At least, one of them is now uncertain not only about the signatures on "his" affidavit but also its contents. At one point, he categorically said that the affidavit was never signed by him. At another stage, he said that the signatures appearing on the affidavit were not his but these did resemble his initials.

Talking to The News on the assurance that his name would not be disclosed, the concerned signatory was apprehensive and shy of going to the court for being a government servant. Since the filing of an absolutely "fake" affidavit does not make sense, the officer was asked to come on the record but he did not oblige. The officer hails from the Punjab.

Well over a dozen affidavits of government servants, both from the Centre and the provinces, are attached to the affidavit of Lt-Gen (retd) Hamid Javaid, the Chief of the Staff.

The CoS's affidavit includes the sworn statements of Chairman Central Board of Revenue Abdullah Yousaf; Lt-Col Saeedullah, MS to the NWFP Governor; Khushnood Akhtar Lashari, former Punjab additional chief secretary and, at present, the Health Secretary; Ali Ahmad Junejo, Hyderabad District Police Officer; Amil Shameen Wyne, former Pishin DPO; Khalid Bilal, former Public Relations Officer of the Supreme Court of Pakistan; Mudassir Iqbal, Director-General (Protocol), Sindh; Ziaul Hasan Khan, former IGP Punjab, and, at present, Commandant, National Police Academy; Mushtaq Hussain Hamdani, Director-General (Protocol) Punjab; Jehangir Mirza, former IGP, Sindh; Safdar Ali, Constable; Muhammad Naeem, Assistant In-charge (security guard); Javed Sadiq Malik, former principal secretary to the prime minister, and, at present, the Federal Ombudsman.

Among those present in the Army House, Rawalpindi on March 9 — as claimed by the Chief Justice Iftikhar Muhammad Chaudhry in his affidavit submitted before the full court earlier — three, including the CoS to the president, Director-General Military Intelligence Maj-Gen Nadeem Ijaz and Director-General Intelligence Bureau Brig (retd) Ijaz Shah have submitted their affidavits.

The Director-General Inter Services Intelligence (DG ISI) Lt-Gen Ashfaq Kiani, who was also present in the Army House on March 9, did not submit his affidavit.

A senior government legal aide, when asked about the reason for this conspicuous miss, said that there was no need for all to submit their affidavits. The chief justice, in his affidavit, had said that after he declined to resign before the president, the DG ISI and the DG MI pressurized him to quit but he refused to do so. The DG MI, in his affidavit, however, denied to have exerted any pressure on the CJ to resign.

Meanwhile, it has been learnt that the Chief of Staff to President Lt Gen (retd) Hamid Javaid's part of the affidavit was included after much indecisiveness because of the fear that it might lead to supplement the judicial crisis.

According to sources, in a high-level meeting, it was no less than the president's top legal aide, Sharifuddin Pirzada, who advised the government to ignore the inclusion of the said evidence. Pirzada, these sources said, insisted that if the said evidence is produced against the chief justice, then two other senior "authorities" falling in the same category of "corruption" should also be proceeded against by the government.

The CoS, in his affidavit, said, "The CJP submitted numerous claims and received cash worth hundred of thousands of rupees for reimbursement of petrol for car No. CIA-9 on the basis of receipts, purportedly issued by a Shell Pump (Abdullah & Sons) at Sumungly Road, Quetta. All the receipts are bogus. The pump, at all material times, only sold diesel, it did not sell petrol. The amounts were reimbursed to the CJP against these fake receipts."

According to the sources, it was revealed to the official investigators during the probe that it was not the chief justice alone but also two other respected authorities, who were getting reimbursement of petrol on the basis of receipts issued by the same Shell pump, which the CoS affidavit claims does not sell petrol and only deals with diesel.

These disclosures upset the decision makers for the reason that if the said evidence was produced against the chief justice, then how could the other two be spared.

 

 

 Redrawing battle lines


By Ansar Abbasi

ISLAMABAD: Battle lines against the media are likely to be drawn afresh amid a pitched war between the government and the private broadcasters with strong opposition to the just promulgated amendments to the Pemra law being dubbed as a black law even in senior official echelons.

While some hidden forces are dictating the government's media policy, the recent promulgation of the draconian Pemra Ordinance seemed to be part of a greater strategy evolved to keep a check on the pro-chief justice press-public sentiments.

The media and the political parties-sponsored public rallies in support of the chief justice, according to government sources, are influencing the 13-member full court of the Supreme Court currently hearing the constitution petition of Chief Justice Iftikhar Muhammad Chaudhry.

The Punjab government has already launched a crackdown against opposition activists, who are being arrested for 30 days under the Maintenance of Public Order.Background interviews reveal that the government has recently evolved a strategy to defeat the ongoing judicial crisis, according to the expectations of the top rulers. The crackdown against the political activists and the media is part of the same strategy, which, however, in case of the media has not so far worked so productively.

It is believed that the arrest of the political activists under the MPO for one month would effectively harm the pro-chief justice demonstrations, while the move to put the media, particularly, the private television channels, under pressure would minimise what the government sources call "pro-CJ" propaganda.

Such "propaganda" in the government's view influences the 13-member full court that is hearing Chief Justice Iftikhar Muhammad Chaudhry's petition. The government through its aggressive strategy wants to "free the full court from external influences". As against the government worries for the Supreme Court, the full court has recently declared that they are not being influenced by what is happening outside the courtroom.

It is learnt that the new strategy has been adopted by the government following its failure in its earlier endeavour to "seek accommodation" from the judiciary. Using different tactics, the government has assigned different players to win the sympathy of the Supreme Court judges for the government. However, the move did not work.

A source said that in a recent briefing, the rulers were told that the objective of winning the sympathies of the Supreme Court judges could not be achieved. Rather, it was said that the things are seemed to be getting out of the government's hand.

The failure of the background manoeuvres led to the evolution of the latest strategy. It is said that the government wants to come down hard on the media as well as the opposition parties for another few weeks time, considered extremely crucial for the judicial crisis.

Meanwhile, it is not yet clear as to who is the author of the new media policy as the top bosses of the Information Ministry were heard distancing themselves from the lately promulgated Pemra Ordinance. It is rather said that both Information Minister Muhammad Ali Durrani, and Information Secretary Anwar Mehmood were unaware of the promulgation of the Pemra Ordinance.

The two, it is said, were sitting with members of the Pakistan Broadcasting Association (PBA) at a five-star hotel in Islamabad on Monday to discuss the recent closure of the television channels — Geo, ARY-One and Aaj — when they were informed about the promulgation of the new ordinance.

The Information Ministry, it is claimed, was also not consulted when an FIR was registered against 250 journalists by the Islamabad police on Tuesday for staging the protest demonstration on Monday in violation of section 144.

While some hidden forces are said to be behind this media-centric official assault, apparently it was the Pemra that had sought the draconian changes in the Pemra law. The draft amendments, it is said, were prepared and moved by Pemra and were promulgated through an ordinance bypassing the federal cabinet to take on the electronic media sternly. Those who have been interacting with Pemra Chairman Iftikhar Rashid, during the last few years are of the view that the kind of amendments introduced to the Pemra ordinance were not in line with the temperament of Rashid.

The chairman, these sources said, has always been showing his media-friendly posture. However, an official source said that in the official meetings he has been seeking "concrete" powers to effectively tame the electronic media.

The latest amendments introduced to the Pemra Act were also rejected by the Law Ministry, which had clearly said, "In Section 29 and 30 certain powers are proposed to be conferred on the Authority or the Chairman to take certain actions without giving show cause notice to the affected party. No action adverse to a party can be given without giving the affected party an opportunity of being heard. The proposed provision being violative of the principles of natural justice enshrined in maxim audi alteram partem."

Although the Pemra ordinance was promulgated in an indecent haste, following the strong reaction from national and international media and member of civil society now the authorities are prepared to redraw battle lines against the media through give and take. The government is even prepared to undo the latest Pemra ordinance but only after some sound assurances to "balance" the reporting on judicial crisis.

 

 

 




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SC Chief Justice and Angels

Govt gathering information against four SC judges
 

ISLAMABAD: The authorities are gathering "credible information" about certain actions considered contrary to the rules and regulations of, at least, four learned senior judges of the
Supreme Court.

Once the unimpeachable evidence is available with the authorities concerned, the process of tabulating the reference against the judges of the apex court would be initiated. Law Secretary Justice Mansoor Ahmad, who has reportedly choreographed the first reference against Chief Justice Iftikhar Muhammad Chaudhry, has expressed ignorance about any fresh reference. "We are implementing the authority and once the matter is referred to us, we proceed accordingly," he added.

Sources well-versed with the affairs of the senior legal fraternity and widely respected by the bar and bench told The News here on Sunday that the reaction about the first reference should not deter the authorities from filing yet another and some more references against the judges who are "not clean in their conduct".

The sources indicated that one senior judge has also obtained a plot in a similar manner in which Justice Iftikhar Chaudhry got in Karachi. Interestingly, the judge belongs to Karachi. Yet another senior judge, who is extensively being discussed in media these days and fond of staying in the news, had recalled a case after promulgating his verdict on the instance of his son, who is also a practising lawyer. The judge in question also attended the party thrown by his son on winning the case that also involved some customs officials.

The two other senior judges who are from a backward province used to get petrol from pumps which do not sell petrol but have the reservoirs of diesel only. The judges got the payment reimbursed on that count.

The sources indicated that once the requisite evidence is gathered, the authorities concerned would be given a green signal for preparation of legal documents required for reference in accordance with the law against the judges. In normal course, such references are prepared by the Ministry of Law and Justice and are submitted to the chief executive (prime minister) who refers the same to the president for filing before the Super Judicial Council (SJC).

The sources in the Prime Minister House are also not aware of preparation of any such reference but they have confirmed that another reference against Chief Justice Iftikhar Muhammad Chaudhry would be filed in due course.

The News has gathered from credible sources that the fresh reference against the CJ would be filed next week and the possibility of filing yet another reference against him afterwards cannot be ruled out since the authorities concerned are of the view that the affidavits submitted in the full court do provide for constitution of more than one references against the CJ.

Meanwhile, Syed Sharifuddin Pirzada, the counsel for the president, in the reference against the CJ has expressed willingness to meet Chief Justice Iftikhar Muhammad Chaudhry and play a conciliatory role in the matter since the learned head of the full court Justice Khalilur Rehman Ramday has asked Pirzada to come forward for such a role. Pirzada, who enjoys international stature as an expert on constitutional affairs, is reluctant to take any initiative but he is prepared to oblige the learned court's observation provided the chief justice shows interest in it, sources close to Pirzada told The News Sunday.

  Print Version  

 CJ opens his heart to angels

By Ansar Abbasi

ISLAMABAD: The chief justice is too cautious these days and does not talk to any person on the issue of affidavits filed by the government before the Supreme Court last week. But he does open his heart before angels with whom he has developed extraordinary intimacy against the backdrop of the March 9 episode.

And to our good luck, one of these angels has started visiting The News office frequently. He is not shy of sharing with this correspondent what the Justice Iftikhar Muhammad Chaudhry shares with him. Neither it is against their code of ethics. "The chief justice laughs at the affidavits," the angel said.

One can doubt a source close to the chief justice but not the angels because of their known credibility that they do not distort facts they are shared with. One can, however, question the chief justice's claim. On the issue of allocation of plot in Karachi, the chief justice is quoted as saying, "Nothing was done against the rules and regulations."

According to the angel, the chief justice in his rejoinder said that while applying for the Karachi residential plot, he had categorically stated that neither he nor his family had any plot in Karachi. It may also be noted that having a plot in Islamabad was not a bar in the criteria for eligibility. Secondly, the criteria included that the applicant should not have a plot in Karachi but, at the same time, it included a provision that this condition could be ignored for purpose of allotment in second preference. The angel also brought with him the documents to substantiate the above claims.

Regarding the protocol to the chief justice, the angel wonders if the protocol of the chief justice was more than his status as given in warrant of precedence. According to the warrant of precedence, the chief justice comes at number 3 above the governor and the chief minister of a province "who are at number 4". When a provincial chief minister could have a heavy protocol, then what about the chief justice.

As for use of Mercedes/BMW when the chief justice is outstation, it is claimed, if the log book for the previous 10 years or even more is checked, it would be revealed that the chief minister and the governor secretariats have been providing these vehicles to the chief justice as his status of warrant of precedence No 3 in Pakistan. "It's foolish to say he got more than his entitlement of protocol," the angel quoted Justice Iftikhar as saying. And even otherwise, the angel reminded that it is not for the chief justice to deal with such petty issues.

Referring to the allegation of interference in administration, the chief justice told the angel that such allegations are simply "fake". "Interestingly, the affidavit given in this matter by DPO (district police officer), Pishin, Amil Shamim Wayne, who is the brother of nominated corps commander, Quetta, Lt-Gen Khalid Shamim Wayne. The corps commander's appointment was made on April 14, while his brother gave the "false" affidavit on the 17th of April."

The angel said that the chief justice refuted the allegation that the DPO promoted a constable on Justice Iftikhar's direction as reflected in the affidavit of the chief of staff to the president. "The person who he said was forced to be promoted was never promoted." "Interestingly, the said constable Abdul Rehman was promoted on May 7, 2007 whereas the chief justice is on leave since March 9. It also speaks to the hollowness of the allegations," revealed the angel and also provided the documentary evidence.

Regarding the re-imbursement of petrol bills, the chief justice is quoted to have said that the judges of the superior judiciary are entitled to 400 litres per month. Terming the CoS's affidavit as an attempt to do his character assassination, the chief justice told the angel that never ever a single litre beyond the entitlement was used or reimbursed. "The irony is that in spite of using all the agencies they made a fool out of them that Chaghi 9 (CIA 9) was a Toyota Corolla 2000 model given to the chief justice when he was elevated judge of the Supreme Court. Whereas the fact is that the Chaghi 9 is a Honda Accord that was purchased only a few months back on the occasion of SC's golden jubilee."

"Perhaps agencies should have done their homework to ascertain the facts about the CIA 9," the chief justice told the angel, who added that the chief justice is not supposed to put his signatures on petrol bill. It is the staff that is required to process such matters.

The CJ also revealed to the angel that in case of all the judges, reimbursement of petrol bills is not claimed by the judges themselves but by the staff. "One should not forget that Supreme Court has a mechanism of internal and external audits. No objection was ever raised by any."

Referring to the CoS's allegations pertaining to "objectionable" TA/DA and medical bills drawn by the CJ, Justice Iftikhar disclosed to the angel that he had claimed one day's daily allowance (DA) when stayed a night in Nathiagali upon his return from Abbottabad where he had attended a bar association function. "In the 17 years of my judicial career, claiming just one day's DA has perhaps made me the richest person of Pakistan," Justice Iftikhar cynically told the angel.

Regarding the TA/DA of children, the chief justice was quoted as saying that they never got TA while travelling with the CJ. Neither the spouse ever claimed the TA if the tour was less than five days period. However, two ailing children of the chief justice who are totally dependent because of their ailment, claimed their TA as per medical rules.

"All these claims were verified by internal and external audit and no objection was ever raised, even when the chief justice was a judge of the apex court," the angel said, adding that this is a pre-planned vilification campaign against the chief justice to tarnish his image and the image of the judiciary as was done before the filing of the reference on March 9.

Responding to the CoS charge that the chief justice misused his authority, Justice Iftikhar told the angel that Justice Ejaz Yousaf of the Federal Shariat Court had retired after completing his tenure of three years. "It is baseless to say that he got retired before time." The angel said that the chief justice was never consulted and there is nothing in black and white to deny this.

As for the appointment of Justice Nasim Sikandar, a sitting judge of the LHC, to the FSC, a notification was issued but, subsequently, it was withdrawn. According to the angel, the chief justice had pointed out that Justice Sikandar's notification was issued contrary to Article 207 of the Constitution. It is also said that it was not the chief justice but the Ministry of Law that had sought the names of judges for their appointment in the FSC.

The CJ also refuted the former IG Punjab Ziaul Hasan's allegations about his son's Dr Arsalan's foreign training in Turkey. "The CJ had nothing to do with it. The IG recommended Dr Arsalan for foreign training for the reason that his son was serving under him." Similarly, the chief justice said if the IG Punjab had any reservations with the TA/DA of Dr Arsalan, then he should have taken up the matter with the FIA, which was Dr Arsalan's parent organization.

Though the angel does not personally know anyone of those who had filed their affidavits against the CJ, he is told by Justice Iftikhar that who's who in the affidavit list shows one thing clear that most of them are serving soldiers or ex-servicemen or their close relations.

These include the CoS, a retired Lt-Gen; DG MI, a serving Maj-Gen; DG IB, a retired Brig; Khalid Bilal, a retired major; Col (retd) Hamdani; DPO Pishin, brother of nominated corps commander Quetta; MS to the governor Frontier, a serving Lt Col; Abdullah Yousaf, close relative of the CoS; ex-IG, Punjab Ziaul Hasan, a close relative of ex-VCOS.



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Monday, June 11, 2007

BUDGET SPEECH 2007-08

 

(PLEASE CHECK AGAINST DELIVERY)

Mr. Speaker

 

1.         I am grateful that I have the privilege to present the 5th Budget of a democratic government, which is historically an unprecedented event.

 

Mr. Speaker

 

2.         As a mater of fact this is the first time that an elected government is completing its five years term and the honour of having achieved this land mark rests with Muslim League and its allied parties. Indeed it is the Muslim League that has guided the Muslims of the Sub-Continent at every critical juncture.

 

Mr. Speaker

 

3.                     I do not have any soft corner for economic terrorists whose sole purpose is to push society into an economic abyss.

                        Our elders had categorically stated that some people would be over-affluent while others indigent. We will not let this happen. People who do not have the capacity to listen to criticism should abstain from criticizing others.        

                        Our opponents are afraid that the seeds of prosperity that we have sown will bear fruit; but the nation is destined to develop and prosper.         

            Trials and tribulations are a part of every nation's history. But those nations who face them with courage and fortitude come off with honour and dignity. Before the coming into power of the present government, we were cut off from the world and had actually defaulted.  By the grace of God our government, in the last five years, has amply demonstrated that it is the party which not only created Pakistan but is capable of running its affairs in the best manner possible.

 

Mr. Speaker

 

4.                     In the budgetary process, we held extensive consultations with the Prime Minister of Pakistan Mr. Shaukat Aziz, national representatives and experts in different fields so that the budget reflects national consensus on important issues. In order to make the budget welfare oriented we were guided by the President of Pakistan General Parvez Musharaf at every stage.

 

            Earthquake of 8th October 2005 devastated houses, hospitals, roads and mosques but it could not undermine our resolve which remained unflinching. We accepted it as a challenge and with the grace of Almighty came off well. Surely, there is no substitute for the precious lives lost but it was our moral duty to provide solace to the survivors of the tragedy. The whole world witnessed that the Pakistani nation played historic role in the rehabilitation work. Places littered with dead bodies and razed habitats have again come to life which speak of the efforts and courage of the nation. Government  has disbursed Rs.66 billion for house construction and Rs.40 billion for death/injury compensation. Whatever the government is constructing, it is being done under the principle of "Build Better". After the Earthquake, no one died of hunger or cold.

 

            During the previous year 1500 schools, colleges and hospitals have been built and additional 2500 buildings would be constructed. An amount of Rs.1.5 billion would be spent on agriculture and livestock which will enable people to become self supporting.

 

Mr. Speaker

 

5.                     Due to our geographic location we had to move with extreme caution lest our enemies inflict damage affecting our future generations. But their dream did not come true.

 

Mr. Speaker

 

6.                     Besides putting an end to a system of exploitation and misuse of powers, we have transformed the budget from its elitist stance to welfare orientation for the poor. Increase in oil prices in the international market last year posed a new challenge but the government, by giving a subsidy of Rs.111 billion on diesel, kerosene, fertilizer, electricity and food items, stabilized prices. Government did not leave people to the vagaries of high prices, but stood by the people.

 

Economic Performance

 

Mr. Speaker

 

7.                     It is my pleasure to announce that our GDP growth rate remained at 7.02 percent. We had promised the nation a growth rate of 7 percent on which we delivered. Then we promised a growth rate of 5 percent in agriculture which we delivered. We had resolved that the manufacturing sector will grow by 8.8 percent which we achieved. We had resolved that the services sector would grow by 8 percent which we delivered. We acted as a shield against rising oil prices and did not transfer the price increase to consumers. We had promised to provide conducive economic environment where people will find jobs. As a result of these policies, during the last 5 years more than 10 million persons were provided livelihood. We had promised to develop investment friendly environment, we fulfilled this promise. Since July of last year to April this year i.e in a 10 month period FDI in Pakistan exceeded $ 6 billion. Foreign investors are making investment due to the development taking place in the country. Why our opponents are blind to this development?

 

Mr. Speaker

 

8.                     In order to run the country according to Quaid's vision, we have to ensure that our economy and democratic culture not only flourish but are also consolidated. Continuity of policies and single-mindedness are the pre-requisites. This would be possible only when people are prosperous, they have trust in national institutions, Parliament is supreme beyond any doubt, majority is not held hostage to minority and everyone works according to the given mandate.

 

Mr. Speaker

 

9.                     Our government would honour the promises it has made. Our priorities include transferring benefits of growth to people, promotion of people's welfare programme, and providing education, health, justice, sewerage, gender equality and safe drinking water.

 

Mr Speaker

 

10.                   Our government has taken various measures to increase income of people and put an end to poverty. As a result, there is substantial reduction in rural poverty. Government policies aiming at allocation of greater resources for poverty alleviation and creating employment opportunities have resulted in reduction of incidence of poverty from 34.4 percent in 2001 to 23.9 percent in 2005. In this way 12,700,000 people came out of poverty. We have decided to further reduce poverty from the country. Our future plans envisage employment opportunities for youth. The amount of money spent on poverty reduction and employment generation during last 5 years is Rs.1,441 billion which is commendable especially in comparison with all previous governments.

 

 

 

 

Mr. Speaker

 

11.                   By the grace of God the Budget that I am going to announce has an overall size exceeding Rs.1,874 billion. Federal Government expenditure is estimated at Rs.1,353 billion. This is a record budget in the history of Pakistan, especially in terms of expenditures on welfare of people. Expenditure of this magnitude was made possible through greater revenue collection especially by CBR which will exceed Rs.1025 billion. In view of this, the size of total revenue has been set at Rs.1475 billion. Hence the overall fiscal deficit is estimated at Rs.398 billion which is 4% of GDP. During 2006-07 our budget deficit was 4.2 percent of GDP which was according to the target even though we had to bear the brunt of rising international oil prices and earthquake expenditure. It was not an easy task neither did we have any magic wand. It was because of God's blessing, guidance of the President, farsightedness of the Prime Minister, untiring efforts of government machinery, and prayers of the nation that we emerged successful.

 

Mr. Speaker

 

12.                   Our government has allocated Rs 520 billion under PSDP which will be spent on development and welfare of people. This is a huge sum which is unprecedented in the history of Pakistan. This is a record. Out of this, 52 percent will be spent on infrastructure development and 48 percent on welfare of people and on social sector. On whom will this amount be spent? It will be spent on welfare of people. If we compare the hefty amount being allocated this year for welfare of people, with earlier periods the latter would not be even 18 percent of it. A question arises as to what was the reason that those governments did not spend on development work despite their large fiscal deficit? Their budget deficit used to be more than 7% of the GDP. Had they not filled their pockets, there would have been more benefits for the people. They spent insignificant amount on development. As against our PSDP size of Rs.520 billion theirs was only Rs.96 billion. 96 percent of the PSDP would be utilized during 2006-07. This proves that our government honours the promises that it has made with people unlike the previous governments. This is in contrast to the low utilization of PSDP by the previous governments which was due to their misdeeds and wrong policies. This made the people hostage and the country in fact had defaulted. People want to ask as to why were they not fairly treated during the period of earlier regimes. They demand that they should not be pushed back to those dark periods. But now, by the grace of Allah, we can move proudly holding our heads high and are also in a position to help our brethren. 

 

Mr. Speaker

 

13.                   Pakistan is a federation and provinces are its federating units. Based on Provincial Chief Ministers and Finance Ministers assent to Presidential Orders amending NFC award, 45 percent of provincial share has been transferred to Provinces.  During 2006-07 an amount of Rs.418 billion has been transferred while Rs.497 billion would be transferred during 2007-08 which would be 46% of the total amount. Under the directions of the President, transfer from divisible pool would reach 46.25% by the year 2010-11. If subventions are added, transfer of provinces would get 50 percent of the total amount. This would be a golden period of equitable sharing of resources with provinces. Why did not the previous government pay the provinces their due share? It was our government that has paid these hefty amounts to the provinces.

 

Mr. Speaker

 

14.                   It is the national leadership that determines the direction that the country has to take. If the leadership is true and has a vision it can change the destiny of the nation. But if the perspective is narrow and limited to self aggrandizement, the nation gets stranded in quagmire and succeeding generations pay the penalty. In our recent history many such governments were in power who used borrowed money for non-productive purposes, thereby mortgaging the future.

 

Mr. Speaker

 

15.                   In the last budget, I paid tribute to the present Parliament for having unanimously passed the Fiscal Responsibility and Debt Limitation Act. This law provided a sound basis for our economic development and for world's confidence in our policies. The credit for this goes to the Prime Minister of Pakistan who was the exponent of this law. It is through promulgation of this law that the executive is accountable to the House. It cannot exceed the borrowing limit of 60 percent of GDP without seeking your approval. It gives me a great pleasure to announce that Debt to GDP ratio has not been allowed to cross 53 percent as against a target of 60 percent set to be attained by the year 2009. Moreover, the loans that we raised were meant for development of the country.

 

Mr. Speaker

 

16.                   We raised 10 years Euro Bond in the international market which was over subscribed by more than seven and a half times. We raised US $ 750 million through this Bond. This was despite the fact that the rate of interest offered was lower than that of previous periods. Last year this government launched 10 and 30 years bonds in the international market which elicited good response. This is a reflection of confidence of international investors in our policies. Prior to this no one was ready to invest even for 2 to 3 years in Pakistan. But now they are keen to invest for 10 to 30 years. Investment for a period of 30 years is not child's play. It is the time span of a whole generation. Why this huge difference between yesterday and today? The difference is that of the intention, policies and good governance. I would like to ask these people whether they have forgotten those days when they tried to issue bonds in New York but there was no buyer. The reason was that due to wrong policies of the rulers at that time the country had become bankrupt, its economy was weak and international community knew that. Those were embarrassing moments for us. Who would put money in a weak economy. The same international community is now keen to invest in our bonds. They know that our economy is strong and people are prosperous. Today we move proudly holding our heads high. The entire amount would be spent on development and no one would be allowed to misuse it.

 

Mr. Speaker

 

17.                   Is it not a proof of our economic development and prosperity that the world is not only acknowledging it, but is ready to invest in the country. By the grace of Allah, Pakistan has emerged a prosperous country through dedication and sincere efforts of the government. It is only a small minority that refuses to acknowledge the fact of our development.

 

 

Mr. Speaker

 

18.                   It would not be out of place to mention here that the previous government between 1996-99 raised the rate of interest on National Savings Schemes as high as 18 percent because of which our government now has to pay a huge accumulated liability of Rs.163 billion which is more than 4 times of the principal. This proved to be a heavy burden for the nation and due to imprudent policies of previous government the nation was pushed to a dead end. By taking these expensive loans they tried to hide the fact of the country's bankruptcy. But the present leadership not only paid off this heavy debt but put the nation on the road to development. Had the previous government cared for future of the nation and exercised prudence in raising debt, the resultant saving could have been used for more development and welfare of people. But they did not want to do that. The present government adopted such policies that have opened new avenues of development.

 

Mr. Speaker

 

19.                   Impregnable defence is indispensable for a nation who wants to live with honour and dignity. Our nation is ready to give any sacrifice for defence of their country. Today Pakistan and its geographic and ideological boundaries are invincible due to its independent foreign policies and economic development. In order to ensure protection of its ideology and economic independence Pakistan must have a credible deterrence and invincible defence. Pakistan is a nuclear power. If any one looks at us with bad motive we will respond with full force. This year an allocation of Rs.275 billion is being made for defence of the country. Armed forces are ever ready to lay down their lives for defence of the country. Whenever any natural calamity has befallen the country, Armed forces have dealt with it with determination. Peace can be had only through making  defence invincible. 

 

Relief Measures

 

20.               Now I am going to present a list of relief measures. My request would be that my those colleagues who are not amenable to any reasoning or logic should listen with patience. I understand their unease and anxiety. They could not provide relief but did create problems for the people. We have provided relief and shall continue doing so.   

 

Mr. Speaker

 

21.                   Government servants are our asset and it is duty of the government to take care of their needs. It goes to the credit of the government, who is the first to have completed its five year term, that salaries of government servants have been raised substantially four times, which is unprecedented. Government is fully conscious of welfare of its employees. Salaries of government employees are being increased by ____ percent in the present budget. This budget has been prepared keeping in view needs of workers, labourers, and government employees. But we cannot forget the role of pensioners in national development. They deserve respect and we feel that it is our moral obligation to take care of their needs. Government has, therefore, decided to increase pension of government pensioners by 15 to 20 percent. Increase in pension is being given in two tiers: old pensioners will get 20 percent raise while new pensioners will get 15 percent raise.

 

Mr. Speaker

 

22.                   Upgradation of posts was a long standing demand of the clerical staff. It gives me pleasure to announce that government has accepted this demand and employees in BPS 5, BPS 7 and BPS 11 are being promoted to BPS 7, BPS 9 and BPS 14 respectively. A total of 87500 federal employees will benefit from this measure.

 

Mr. Speaker

 

23.                   Residential accommodation is a major problem for employees in Islamabad. Government has decided to solve this problem. Prime Minister of Pakistan Mr. Shaukat Aziz has directed the Ministry of Housing and Works to immediately construct 37000 houses for the low paid employees and give it to them on ownership basis. In phase I, work on the construction of 5000 units will immediately start for which land will be provided by CDA at official rate. Government employees will have the facility to get loan for construction of house.

 

Mr. Speaker

 

24.                   House  is a need of every one. I ask whether any government thought of providing this facility or they were only concerned with amassing wealth. Did they not know that constructing a house is a back breaking experience. Our government realized this need of low income people. Low cost Housing Scheme would be started in collaboration with Provincial and District Governments. Loan from HBFC will be available. Under this scheme an estimated number of 250,000 units would be constructed in the next 5 years.

 

Mr. Speaker

 

25.                   Railway is an economical means of public transport. It is the duty of Railways to take passengers to their destinations safely. Welfare of Railway employees is responsibility of the government. Government has decided upgradation of Basic Scale by one step for the remaining 62482 staff excluding Secretarial Staff.  Long standing demand of Railway employees regarding upgradation of posts has already been accepted alongwith increase in their allowances. A total of 12510 employees have benefited from this increase. In this way, our government has provided relief to 74,992 Railway employees and their long awaited demand has been met.

 

Mr. Speaker

 

26.                   It is our religious obligation to pay a labourer his wage before his sweat  dries. It was the government of Muslim League and its allied parties which fixed minimum wage of Rs.4000/- per month in the last year's budget. Workers are the backbone of a society. Not taking good care of their needs would tantamount to weakening the economy. You ask workers as to whether they did not benefit from the increase in their minimum wage. These who are not ready to acknowledge this fact are people who did not themselves work in their life neither do they know what really hard work is. I would like to give good news to my working class brothers :-

1.                  Minimum wage of unskilled workers is being increased from Rs.4000/- per month to Rs.4500/- per month.

2.                  Old Age pension, old and new both, has been increased by 15 percent. Minimum pension has been increased from Rs 1300/- to Rs 1500/- per month.

3.                  Worker's widow shall now get pension of her deceased husband as per entitlement. Earlier she used to get minimum pension.

4.                  Earlier husband or wife, both contributing to Old Age Benefit, would not get pension of the deceased partner. Now the surviving partner shall get the pension of the deceased spouse.

5.                  Under the Workmen Compensation Act 1923 workers receiving more than Rs.6000/- per month were not entitled to compensation on account of disability. This restriction has been removed and now all the workers regardless of their wage level would be entitled to compensation on account of disability caused during the course or as a result of performance of duty.

6.                  Contract employees have been made entitled to receive companies profit under the Companies Profit (Workers Participation) Act 1968. The limit of profit has been enhanced from Rs.12000/- to Rs.20000/-.

7.                  Workers Welfare Fund Ordinance 1971 is being amended to allow industrial workers to get medical, education, housing and death grant from Worker Welfare Fund. This facility shall apply to those units having an annual income in excess of Rs.500,000/-

8.                  Workers Welfare Fund Ordinance 1971 amended to increase the limit of death grant from Rs.200,000 to Rs.300,000/-.

 

Mr. Speaker

 

27.                   Government is determined to protect people from price hike and considers extending benefits to poor segments of society its mission. . Government allocated funds in last year's budget for food subsidy which was given to people through Utility Stores. People even in far flung areas benefited from it. Under this and under the Prime Minister's Ramzan and Eid package, relief of about Rs 5 billion was provided to people by Utility Stores Corporation. In addition, government has allocated subsidy worth billions of rupees in the Financial year 2007-08.

 

Mr. Speaker

 

28.                   I want to ask why previous governments did not give the relief  that our government has announced and the one I shall soon announce? The difference is that of the intentions, policies and way of governance. Pakistani nation had to pay a heavy price for plundering of wealth by rulers of that time. We did not fill our pockets but fill national treasury.

 

Mr. Speaker

 

29.                   Daal Chana, Moong and Mash which is being sold in market at Rs 38 per kg, Rs 56 per kg and Rs 72 per kg would be sold in Utility Stores at Rs 29, Rs 47 and Rs 57 respectively. From tomorrow  there would be a per kg relief of Rs 10, Rs 5 and Rs 5 on  tea, sugar and rice respectively. At present the price  of cooking oil is increasing rapidly in the international market. On the direction of the Prime Minister it will sell at the utility Stores at Rs.67 as against the market price of Rs.80/- per kg.

 

Mr. Speaker

 

30.                   People with low income will get this relief which is being given on the directive of the Prime Minister. I will ask my brothers and sisters through this House to go to Utility Stores tomorrow to get the items at lower price.

 

Mr. Speaker

 

31.                   In view of wishes of the people our government has decided to give relief to people and continue giving it. People wanted that prices of their kitchen items should be reduced. We have done that. With this relief, people would be able to adjust their budget. We have lightened the burden of people by giving subsidy worth billions of rupees. I ask as to why did not the previous governments take these measures. They plundered national wealth and emptied the treasury. We used the national resources for benefit of people so that they get essential items at reduced rates.  

 

Mr. Speaker

 

32.                   Our government has decided to extend the relief measures to every nook and corner of the country. In order to enable all the citizens to benefit from the relief measures it has been decided to increase the number of Utility Stores by additional 5000 and provide a utility store at every Union Council in the next 4 months. It will also result in creation of employment opportunities. In these stores necessities of life like daals, rice, sugar, ghee and basic medicines would be available and due to their close proximity people will save time and money by not going to the distantly located markets.

 

Mr. Speaker

 

33.                   My question whether some one before has thought of people living in far off areas? They had to travel long distances to get basic medicines. In Pakistan for the first time people will get medicines at reduced rates. People would not have to travel for miles but would get the facility at their door steps.

 

Mr. Speaker

 

34.                   Housing in Islamabad for low income people has become quite a complex issue. Taking notice of this situation, Prime Minister of Pakistan Mr. Shaukat Aziz has directed CDA to allocate a sector for 3 to 5 marla plots. In sector I-15 a total of 5500 plats and 8500 apartments have been reserved for low income people who will have the facility of loans from Banks. This will solve the problem of low income people.  Moreover, work in 4 sectors of Islamabad has started after 17 years due to the efforts of the Prime Minister Mr. Shaukat Aziz. With this prices of land in Islamabad, which were soaring sky high, went down and got stabilized.  

 

 

 

Mr. Speaker

 

35.                   A question arises as to the source from where the money has come to make the relief measures possible. It is the leadership of President of Pakistan General Pervez Musharraf and farsighted policies of Prime Minister of Pakistan that made this happen. Funds became available for the welfare expenditures. We did not follow the example of previous rulers who amassed national wealth for personal gains. Our relief measures have unnerved our political adversaries who are trying to create chaos but they would not be able to withstand public scrutiny.

 

Mr. Speaker

 

36.                   Rich people do not go to whole sale markets for purchases. It is the low income people who benefit from such places. Therefore, we are setting up farmer markets at federal, provincial and district level. With this, farmers would be able to bring items directly to the market, thereby circumventing hoarders, middlemen and profiteers. People will be able to buy goods at cheaper price. Moreover, daily bazaars would be set up, besides farmer markets. First daily bazaar would be set up at Islamabad.  In addition, first whole sale bazaar is being immediately set up in Islamabad.

 

Mr. Speaker

 

37.                   It is quite evident that if price of an item increases it never goes down. But we, being public representatives, broke this myth. When sugar prices skyrocketed we took immediate action and brought them down. When cement prices increased we not only arrested the increase but also brought down their prices considerably. Prices of pulses were brought down as well as that of ghee and flour.

We did not do this as a matter of favour to anyone but did it as a part of our duty. We have changed the tendency of government of being a spectator in the event of a profiteer fleecing the public. We would not let it happen again and come to the rescue of people by keeping our eyes and ears open. This is despite the fact that check on prices is the responsibility of the Provincial and District governments.

 

Mr. Speaker

 

38.                   It gives me great pleasure to state that the recent production of wheat has broken all records. When wheat and flour prices started skyrocketing in the international market there was a sudden acceleration in their export. Prime Minister of Pakistan ordered immediate ban on export of wheat and flour to keep their prices at affordable level. Timely action saved the people from any price increase but due to the existing stocks decline in price is expected. Now Pakistan is the only country in the region where rates of flour and wheat are the lowest. That is what common man needs.

 

Mr. Speaker

 

39.                   In addition to catering to the daily needs of the nation, it is the duty of the Government to promote national self esteem. Most poor live in small towns and villages and often face hardship. It is the moral responsibility of the government to look after them. For this purpose an allocation of Rs.7.5 billion has been made for Pakistan Bait-ul-Mal which is Rs.2.5 billion more than the allocation for last year. I would also like to say that between 1992 and 1999 the annual budget of Pakistan Bait-ul-Mal was no more than Rs.35 crore. It is only this government which has exponentially increased resources spent for the welfare of the people. This large allocation will benefit those who are most deserving and its benefits will reach more and more people. Pakistan Bait Mal is at present helping 1,500,000 households through its food support programme. This year 700,000 more households will benefit thus bringing the number of beneficiaries to a total of  2,200,000.

 

Mr. Speaker

 

40.                   Some of my colleagues in this House have today been hearing the words subsidy, relief , help again and again. They are perhaps tired of this repetition for which I apologize. But the fact remains that our mission is to serve the nation. They may rest assured that I will announce further relief measures. I would like to ask them what promises did they fulfill during their time in government; they increased the budget deficit to 7% of GDP and made the country bankrupt.

 

Mr. Speaker

 

41.                   For the hardworking farmers of this nation, I today announce a tubewell subsidy of 20% payable on electricity charges for tubewells. This subsidy will be shared by the Centre and Provinces equally; with the Federal Government contributing one half and the Provinces the other half.   Pakistan is an agricultural country. The fertile land of this country yields bountiful fruits of the farmer's labour. It is our duty to look after their interest because they produce not only for themselves but to feed the whole country. Their biggest need is water. As a result of this relief, this country will become prosperous, food production will increase and inflation will be controlled and farmers will have to pay lesser bills for tubewells that operate with electricity. This is a historic decision.

 

42.                   I wish to announce this good news to our farmers that we are providing further subsidy under DAP. The subsidy will increase from Rs. 400 per bag to Rs. 470 per bag. As a result of this, the price of each bag of DAP will be reduced by 70 Rupees. This is a subsidy of billions of rupees which will directly benefit the farmers. Agriculture produce will increase through use of DAP; incomes of farmers will further increase; it will bring prosperity to their doorstep.  I wish to ask as to which government provided its farmers with so much benefit. The previous governments infact believed in taking money away from the nation.

 

Mr. Speaker

 

43.                   The government wishes that the dreams of its youth come true. We know that the future of the nation is dependent on its youth. If we want to encash the demographic dividend, we will have to use our youth as a powerful force. For this purpose, we have prepared and launched several robust  programmes, the results of which will be better than expectation. We feel that our youth are patriotic Pakistanis and our asset.

 

Mr. Speaker

 

44.                   The President of Pakistan, General Pervez Musharraf announced the Rozgar Scheme in the last financial year which has been very successful. The small amounts advanced at low rate of markup of 6% enabled the youth to start their own businesses, thereby providing succour to many  families. These small businesses also generated employment for other unemployed youth. Under the scheme, 1.8 million youth will be able to stand on their feet, and provide support to their families. In the last financial year 10,321 applications were approved under this scheme and Rs.1 billion disbursed. The youth set up PCOs, established  transport businesses, utility stores, mobile general stores and tele centres. Rs.104.7 billion will be disbursed under this scheme in the next 5 years. I appeal to my young brothers and sisters that they should apply for assistance under the Rozgar Scheme and make good use of it. I would like to ask if any other government had such positive views about the development of its youth.  

 

Mr. Speaker

 

45.                   As Pakistan is progressing rapidly, we feel there is a shortage of skilled people. I would like to ask why this shortage was not felt by previous governments. Because in those times the country was simply not progressing and factories were infact being shut down. In order to meet the need of skilled people,  in last year's budget we established NAVTEC . The aim of this institution was to develop the potential of the youth by providing them skills. It was decided to move forward with the implementation of this scheme by working closely with all four provinces. This was so that skilled individuals are distributed throughout the country.  This amount is five times last year's allocation.

 

Mr. Speaker

 

46.                   They  say that there is no substitute for experience. Our educated youth possess good degrees but lack of experience prevents them from getting meaningful employment. In order to help our youth, the President of Pakistan General Pervez Musharraf directed that an Internship Programme be started so that  our youth  can gain valuable experience in different government departments, thereby being able to be gainfully employed in different private and government concerns. For this purpose, each graduate will be provided a stipend of Rs.10,000 per month. As of now 8,000 interns are working and this figure will increase to 30,000 next year.  It pains me to state that previous governments, who claimed to serve the masses, did not give  any serious thought to helping the youth.

 

Mr. Speaker

 

47.                   When a low income individual wishes to start a business, where should he go? He has no collateral to offer. The rich easily procure loan but the poors have difficulty in getting even small loans. In order to resolve this problem, Micro-Credit Banking has been started the world over. Our government has instituted a regulatory frame work which is one of the best in the world. So far, one million households have benefited from Micro-Credit. The target for the next three years is 3 million households. Please come with me and see for yourself, how the lives of those who have availed Micro-Credit have changed; they are now self-sufficient and prosperous.

 

Mr. Speaker

 

48.                   As our cities expand rapidly, basic health facilities have difficulty keeping up. The hospitals are there but citizens have difficulty in reaching them which involves expense and travel. Keeping this view point in mind, President Initiative for Urban Clinics has been started. In the cities of Islamabad, Rawalpindi, Karachi, Lahore, Faisalabad, Peshawar and Quetta, 815 medical clinics are being set up at the Union Council level. In each medical clinic there will be a doctor, lady health-worker and dispenser who will provide medical consultancy  close to people's places of residence. In these clinics staff will be recruited from local union councils which will provide 4,917 employment opportunities. The question is, did any body else think about providing this basic facility in big cities? It seems, only we have found solutions to these problems.

 

Mr. Speaker

 

49.                   Safe drinking water is the basic need of every human being. Due to non-availability of safe drinking water, people suffer from various diseases. President General Pervez Musharaf gave directions for installation of a water purification plant in each Union Council on emergent basis. A total of 327 plants have been installed and people have started getting safe drinking water and got protection from various diseases.

 

Mr. Speaker

 

50.                   We are asked as to what development activity  we have undertaken other than mega projects. I would like to say that  in order to eliminate the differentials between the urban and rural areas it has been decided to undertake Khushal Pakistan Programme along side mega projects. Under this welfare programme, 14,000 villages were provided electricity, at a cost of 1.5 billion rupees; 1207 cities and villages were provided sui gas at a cost of 71 billion rupees; roads were constructed  and water supply schemes launched.  For the KPP, around 34 billion rupees are being kept in the current budget. In the last 5 years, our government  provided electricity, sui gas connections, constructed roads, provided clean drinking water and sanitation facilities at a cost of Rs. 51 billion. Under the KPP, in 25 districts of Balochistan,  development work of Rs. 3 billion is being undertaken.  Further schemes will be identified by MNAs which will be implemented immediately. Under the directive of the President of Pakistan Rs.5 crores will be paid to each district, Rs.1 crore to each Tehsil and Rs.10 lac to each Union Council for development work.

 

Mr. Speaker

 

51.                   We can rightfully challenge whether any previous government has spent such a large amount for development activities. Who has benefited from Rs.51 billion spent in the last five years under the KPP programme on the web of roads linking villages and Goths and small cities with large towns?  Certainly the poor people of Pakistan who could never imagine that those essential facilities could ever reach their village, Taluka and Goth; that their children would be able to sleep under a fan and air conditioner;  that their houses have water motors;  that they could make  use of basic facilities like sewerage. It is only the dedication and hard work of the present leadership  which has provided the development funds necessary to carry out these activities,  who promised that they will deliver electricity to each village and link each Goth with a highway. Today they have delivered  on this promise.

 

 

 

 

Mr. Speaker

           

 52.                  The nation would be within its right to ask as to which kind of government could provide such large amounts to maintain the self esteem and dignity of the nation. The answer is that only an honest, dutiful and God fearing  government can undertake such a challenge.

 

Agriculture Sector

 

Mr. Speaker

 

53.                   With your permission, on behalf of the government and this House, I would like to congratulate my brother farmers for their hard work that has made us self-sufficient in food production today. God