06-08-2013

Provincial fears: Gas-sharing

WHEN petroleum and natural resources minister Shahid Khaqan Abbasi mused about the need to re-visit the gas-sharing formula between provinces, in particular Article 158 of the Constitution, which governs the distribution of gas between the provinces, it hardly set any pulses racing. But as the less-populous provinces have digested the implication of Mr Abbasi`s comments, the blowback has been fierce. On Sunday, Senator Raza Rabbani of the PPP issued a blistering condemnation of Mr Abbasi`s remarks and darkly hinted that the PML-N is allegedly flirting with the idea of reintroducing Ayub Khan`s `One Unit` disaster. As ever, when it comes to politicians sparring, matters tend to get a bit muddled. Two aspects are of importance here: one, the more efficient and economically rational use of dramatically scarce gas resources; and two, provincial autonomy versus the centralising impulse of Islamabad.
In the context of the more efficient and economically beneficial use of gas, Mr Abbasi`s comments about the need to revisit the gas-sharing formula between the provinces made much sense, as this newspaper has already endorsed in a recent editorial. If one province facilitates a plethora of CNG vehicles plying on its roads and the extravagant use of gas in homes while another province`s businesses and industry are progressively shuttered as the gas crunch worsens, something is very wrong in the overall allocation of a very scarce resource. However, economic decision-making and resource allocation need to remain within the constitutional scheme of things ― something Mr Abbasi`s suggesting of revisiting Article 158 of the Constitution ignores. At least two alternatives to achieve the same end, le a more productive use of gas across the provinces, can be immediately flagged. Gas is woefully underpriced across Pakistan: price it more in line with the international market and more of the scarce gas will inevitably make its way from less productive uses, like in CNG vehicles, towards more productive sectors, industry and electricity generation.
Second, the more arduous path, but by no means one that should be dismissed: taking the matter to the Council of Common Interests for the provinces to work out an agreement among themselves. That would take a lot of time but it would have the matchless benefit of provincial endorsement. The reality is that Mr Abbasi`s suggestion of amending the Constitution has been interpreted by some politicians in the less populous provinces as part of a PMLN attempt to incrementally reverse the process of provincial autonomy triggered by the 18th Amendment. For everyone`s sake, economic good sense must march in lockstep with inter-provincial harmony.

Incompetent management: Flooding in urban areas

IF it weren`t a matter of death and destruction on such a vast scale, the country`s current predicament would invite sarcasm. The leaders talk about grandiose projects such as bullet trains and media cities. But these ambitions are rendered fantastical when reality is factored in: ill planning is so endemic that the country has ground to a standstill after a short period of heavy rain. Almost 50 people have lost their lives, hundreds of acres of crops have been laid to waste, access to towns and villages has been washed away and homes and livelihoods have been destroyed. A stranger could be forgiven for assuming that the monsoons are a phenomenon new to Pakistan.
Beyond the flooding that has left thousands homeless or stranded across swathes of rural areas in the provinces, it is the damage sustained by urban centres such as Karachi and Sukkur that is worthy of remark. In Karachi, some areas have been submerged to such an extent that the army had to be called in and boats were used to rescue people. City administrations may argue that nature`s wrath is unpredictable, but the fact remains the aggregate amount of rain that had fallen until Sunday morning was 102mm ― high, but not calamitous. Yet disaster occurred because of poor urban planning; for example, the situation in Gadap Town would have been much better had it not been for the fact that many houses built on the Thado drain were swept away. Why had they been there at all? Why were storm-water drains not cleared out and encroachments removed in the run up to the monsoons? The answer is the habitual sluggishness of administrative bureaucracies, which function in sealed-off corridors where ground realities are barely visible. This is another reason why the stalled inception of the local government system has invited so much criticism: local leaders are approachable and responsive. Putting that project back on track may substantially improve local administrations` response to emergencies such as urban flooding.

A sign of hope: New Iran president`s offer

AMERICA`S positive response to Hassan Rouhani`s peace overtures could turn out to be seminal if the two sides try to build on it. Reacting to the Iranian president`s speech on Sunday after his inauguration, an American statement said Tehran would find Washington `a willing partner` if the new Iranian regime chose to `meet its international obligations` ― a veiled reference to Tehran`s position on the nuclear question. In his speech, the newly elected president dwelled mostly on domestic issues but also made a strong plea to the West to do away with `the language of sanctions` and instead treat his country with respect. Declaring his intention to move away from confrontation, Mr Rouhani said Iran never wanted `war with the world`.
After eight years of Mahmoud Ahmadinejad`s hard-line domestic and foreign policies, Mr Rouhani`s assumption of power holds out hope Iran`s intractable nuclear question could after all be resolved. The choice of sanctions as a weapon to browbeat Iran was unfortunate and turned out to be counterproductive. The sanctions hurt the Iranian people, and that served to increase anti-Western feelings. Mr Rouhani is a moderate and has been voted to power for that very reason. He has pledged to improve the people`s economic lot at a time when inflation officially stands at 36pc and unemployment at 12pc. There is also the vexatious question of political prisoners, who include such names as Hussein Moussavi, who lost the 2009 presidential election, and former National Assembly speaker Mehdi Karroubi. An end to sanctions will have a salutary impact on the economy and help the people. This will in turn strengthen Mr Rouhani`s position and enable him to adopt a more conciliatory policy on the nuclear question.

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