Originally Posted by supersonic dexter

Socio-economic decline

Daily Dawn, Friday, 22 May, 2009 | 01:54 AM PST
SINCE the last decade the socio-economic conditions of our country have been deteriorating. This is not only due to the spending on the fight against the Taliban, but also because of the lopsided federal-provincial relationship, basically in favour of the former.
A vital issue for balancing the federation vis-a-vis provincial relationship is the fair distribution of resources in a consensual NFC Award, which may adequately redistribute the revenue among the federating units.
The revenue is generated from general sales tax, wealth tax, capital gains tax and custom and excise duties.

This issue has remained controversial because the centre has been unjustfiably distributing the resources on the basis of population while ignoring the revenue generation capability, geographical location, the requirements and the backwardness of the provinces.

Sindh produces 60 per cent of oil and gas and 80 per cent of custom duties being the industrial hub of the country. It generates, overall, 70 per cent of the revenue for the federation. It also offers huge Thar coal resources which can be utilised to overcome electricity scarcity in the country. Yet Sindh’s share in the award is merely nine per cent. The condition of the province is very appalling. Fifty per cent of its rural population live below the poverty line. The educated youth is either struggling for jobs or staging sit-ins for salaries.

Moreover, in Sindh the condition of education, healthcare, sanitation and other amenities as well as the governmental institutes is markedly deteriorating day by day.

Roads are also in dire need of repair. Much can be done if the capital is fairly distributed. If the NFC is not run by a consensus and multiple criteria basis, the sense of depravation and alienation will increase.

Likewise, Balochistan’s geographical contribution to Pakistan and its mineral resources and gas cannot be overlooked. Similarly, hydroelectricity generation and development projects in the NWFP need equal attention in the wake of the counter-insurgency operation launched by the government to eliminate/oust the Taliban and Al Qaeda.

Besides the fight against extremists and the safety of the nuclear arsenal, the internal affairs, especially the economic well-being of the populace, need equal attention. To keep the civilian government consolidated, it should maintain the nation’s trust in the democratic federation, redress the grievances and prevent disharmony among the provinces by a reasonable distribution of resources.

KIRAN SHIRAZI
Jamshoro