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Old Thursday, March 15, 2012
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Iran gas pipeline

March 15th, 2012


As much as we like to delude ourselves into believing that China is an all-weather friend who will stand by us no matter what, the alliance between the two countries is one that is based, like all alliances, on convenience and self-interest. There are now increasing signs that, in many areas, these interests are now diverging. The Industrial and Commercial Bank of China, which had previously committed to financing the Iran-Pakistan gas pipeline, has now decided to back off, most likely because another alliance — that with the US — took precedence over the alliance with Pakistan. The US has already threatened to impose sanctions on any company that deals with Iran and it appears that the Chinese have caved in. The former has also worked overtime to ensure that the Iran-Pakistan gas pipeline does not become a reality and its efforts do not seem to have been in vain.

Fortunately, for Pakistan there are possible alternatives to finance the project. The second-lowest bidder for the contract, which is a consortium that includes local firms and foreign firms with experience working in Pakistan, can be a possible alternative to finance the project. Although this option will end up costing the government more, the Iran-Pakistan pipeline is so vital to the country’s energy needs that the extra cost can be overlooked. Other options available include cutting out the middlemen and dealing directly with friendly governments or even coming to a barter agreement with Iran where we would exchange wheat in return for construction help for the pipeline. A gas levy is also reportedly being considered but, given recent gas price increases, that option may not be palatable to the Pakistani people.

As for China, we need to prepare for a time when our alliance with them is severely undermined by growing relations between China and India. Trade between the two countries has now reached nearly $50 billion a year and is only expected to increase substantially in the next few years. For an alliance that started only because the two countries shared a mutual suspicion of India, this spells trouble. Relying on only one ally is never a good idea, and in the case of China, it is becoming increasingly problematic.


White elephants

March 15th, 2012


In ancient times, armies stole the wealth of states including gold, jewels, silver and other valuables from buildings and monuments that were state-owned. Similarly, colonial rule caused grave losses to scores of countries which struggle to recover even today. But in our case, it appears that we don’t need an outside force to loot national institutions. Hearing a suo motu case regarding the alleged corruption of Rs22 billion in the Pakistan Steel Mills, the Chief Justice of Pakistan headed a three-member bench to take notice of the matter. He observed that institutions including Pakistan Steel Mills (PSM), Pakistan Railways and Pakistan International Airlines (PIA) had all been ruined.

This is, of course, hardly surprising for any of us. Over the last few years, we have seen open plunder of these institutions. PIA, which once used to be a high-ranking international airline has plummeted to depths so low that recovery seems difficult and the Pakistan Railways barely moves in its own tracks. However, the story told before the Court regarding the PSM goes a long way to explain how all this came about. The counsel for PSM produced an audit report for the year 2008-09, which showed losses of Rs26.5 billion. Of this large amount, Rs9.98 billion have been lost to corruption and the rest to poor business mismanagement. The counsel also pointed out that the Federal Investigation Agency (FIA) had failed to act despite five enquiries, while the chairman of the PSM at the time managed to evade jail by claiming sickness. Asked why it had failed to act, the secretary for the ministry of industries claimed that the state of operations at the FIA is known to all.

The observations made by the court, regarding the state of the FIA, the criticisms heard when courts intervene and the appointment of inept or dishonest officers in the PSM are familiar ones. What is sad is the detailed account of ruin we see before us and the fact that it could have been avoided, leaving our nation in a far better condition than the one it is in currently.


Making use of radio

March 15th, 2012


While the power of radio has more or less been on the wane in the urban centres, the medium still has a huge influence in more remote locations, which includes our tribal areas. Radio was the medium which stirred up the Taliban frenzy in many places in the tribal areas, with Maulana Fazlullh — commonly known as ‘Mullah Radio’ — using it to spread his message of hate into every household in a manner few other mediums could achieve. In this sense, the government’s decision to set up four FM radio stations across the tribal belt made sense. The idea, obviously, was to change mindsets and win over the hearts of the people — that rather clichéd phrase we have heard so often — and lead them away from militant hands towards mainstream national life.

Sadly, due to mismanagement — like so many other official policies — this attempt was unsuccessful. Indeed, it may have had just the opposite impact. Rather than voicing the views and thinking of the people of these areas, or emphasising their needs, the Radio Pakistan channels were used as an official propaganda tool. On the other hand, there are reports, which state that the Pashto language services of international radio stations are far more popular than the government-run channels. In fact, one of the government-run stations in South Waziristan has already been closed.

Meanwhile, despite a ban, stations run by the Taliban continue to function illegally. Their message remains vicious and full of hate. This is a case of a policy gone horribly wrong. The plan of using radio to win over the populace, could have succeeded but it has not because of sheer incompetence, coupled quite possibly, with a lack of genuine interest and commitment towards bringing about change in those parts of the country where distrust for officialdom still runs high. In other words, a valuable opportunity to address the problems faced by the people of the tribal belt has been lost.
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