Mao Tse-Tung wrote prolifically on many subjects that are nowadays considered anachronistic. Indeed, the vast majority of the young and educated may never have any exposure to Mao’s ideas, notwithstanding Pakistani rulers’ exhortations about our ‘special relationship’ with the People’s Republic. In the wake of the never-ending scandal that is the WikiLeaks phenomenon, I believe it is necessary to revisit one of Mao’s enduring themes — and that of Marxism in general — so as make sense of the media frenzy that has erupted around us.

Marxist philosophy is premised on the notion that social conflict — and particularly class inequality — is the driving force of history. More generally, Marxist praxis entails identification of the prevailing contradictions in any given society and an appropriate politics on the basis of what are principal and secondary contradictions. Mao distinguished between antagonistic and non-antagonistic contradictions — the former when pushed through to their logical conclusion produce revolutionary transformation whereas the latter can be managed judiciously.

Certain Marxist analyses of Pakistani state and society have oversimplified the extent to which the ruling establishment has maintained a consensus over time; even non-antagonistic contradictions have been left unacknowledged. In particular, Pakistani governments have too often been depicted as virtual puppets of imperialist powers. The WikiLeaks ‘revelations’ appear to confirm the impression that Washington truly does call all the shots in Pakistan.

To the contrary, I believe that what emerges from the thousands of diplomatic cables that have the global media foaming at the mouth is a complex and contradictory picture which precludes overly simplistic assertions. This is not at all to suggest that empire does not exercise its influence within Pakistan or that successive regimes in this country have been meaningfully autonomous from the machinations of imperialism or the broader effects of the capitalist world-economy. But the relationship has ebbed and flowed and recognition of the various ups and downs is necessary to understand the non-antagonistic contradictions between imperialism and Pakistan’s establishment, the non-antagonistic contradictions within our ruling circles, and the antagonistic contradictions between the Pakistani people and the global-domestic structure of power.

For the best part of our history the combination of generals, bureaucrats, landlords, industrialists, mullahs and co-opted segments of the middle class has willfully served the geo-strategic interests of the American Empire. But at the same time, different governments have maintained varying levels of commitment to their own parochial interests, which at any given historical conjuncture, may or may not correspond fully to the interests of our imperial patrons. So, for example, Ayub Khan publicly offered Pakistani territory and troops to the United States suggesting that there was no need for Americans to come all the way out east when Pakistanis could do the job for them. However, the same Ayub Khan assiduously cultivated a relationship with China following the Sino-Indian border dispute in 1962; this policy flew in the face of Washington’s dictates and reflected how even the most shameless of imperialist touts could antagonize his patrons. In a very different way, throughout his tenure Zulfikar Ali Bhutto decried imperialist conspiracies, yet made sure never to seriously annoy Washington. Bhutto was known to be quite proud of renewing the supply of arms from the Pentagon and famously arranged the secret meeting between US Secretary of State Kissinger and Chou-en-Lai.

But perhaps the most important relationship that needs to be understood is the largely autonomous one between the Pakistani Army and Washington. For the best part of the last two decades, the army has played a public relations card that positions it in opposition to "American interference" in Pakistan’s sovereign affairs. In practice of course, the army has been the single biggest beneficiary of American largesse both in bygone eras and in the so-called "Age of Terror". GHQ’s efforts to distinguish itself from the "soul-selling" politicians reflects only its desire to deflect criticism of the increasingly shameless manner in which imperialist policies are operationalized by our very own national saviours.

In much the same way as WikiLeaks cables shed light on the actually existing relationship between empire and our rulers, they also make clear how consistent — and sometimes even acute — tensions notwithstanding, mainstream political parties and the military establishment share a basic commitment to an exclusive political and economic system. There can be no doubt that the long-standing mistrust between our mainstream politicians and the GHQ has far from dissipated, and that there is an undeniable contradiction between the two. But Mao would suggest that this contradiction is non-antagonistic insofar as our elected rulers are only marginally more progressive than the men in khaki when it comes to basic structures. Of course, those of us who are unequivocal defenders of this flawed political process maintain that successive military adventures into the political realm have actually helped to insulate our elitist parties from substantive organic changes from below.

This brings us to the antagonistic contradiction. In the final analysis, WikiLeaks will precipitate nothing more than a sensationalist media orgy. Indeed, it is not beyond the realm of possibility that the leak of diplomatic cables is part of some well-thought out imperialist conspiracy (although such assertions are best left to the dream world of the religious right).

In a time and place when genuinely anti-establishment and anti-imperialist forces were organized enough to take advantage of this de-masking of our rulers’ antics, we might even have believed that the recluse Australian founder of the website was committed to substantive political and social change. But the fact of the matter is that, in contrast to times past, diplomatic cables dealing with Pakistan in this day and age make no mention of left-wing intellectuals, working-class movements or student rebels. Those of us who go beyond sloganeering have always known that contradictions within the ruling class are ever-present. But to take advantage of these non-antagonistic contradictions and foment systemic rupture requires the working people of this country, whose contradiction with the establishment and dominant social forces is of an antagonistic nature, to be mobilized and armed with an appropriate political strategy. WikiLeaks is hardly interested in fomenting such things.

Senator Mian Raza Rabbani of Pakistan People’s Party deserves kudos for pointing out in the Upper House that after the passage of the 18th Amendment, Parliament cannot debate or pass any law providing for sales tax on services as it is a provincial subject. He categorically opined, "First, the provincial assemblies must pass the GST Bill and also adopt a resolution. It is only then that the federation could enact it".

The objection raised by Senator Raza Rabbani was valid as section 8 of the proposed law (The General Sales Tax Bill 2010) reads as under: "8. Administration and collection of Provincial Sales Tax — (1) Where a Provincial Sales Tax law authorises the board to administer, regulate, and collect the Provincial Sales Tax imposed under that law, the Board shall, subject to the conditions specified in that law, collect, regulate and administer the Provincial Sales Tax and shall apply all provisions of this Act and the rules made thereunder necessary to ensure that the Provincial Sales Tax and the Federal Sales Tax operate together as an integrated tax regime.

(2) The provisions of this Act relating to penalties, offences, and default surcharges shall apply irrespective of whether the tax payable, or the adjustments allowable, relate to supplies of goods, services, or supplies of goods and services, and irrespective of whether the tax is payable under this Act, a Provincial Sales Tax law, or under one or more such laws".

At the time of presentation of General Sales Tax Bill 2010 in Senate no provincial assembly has authorised the Federal Board of Revenue (FBR) to administer, regulate and collect sales tax on services. The tabling of bill vis-à-vis provisions of its section 8 was, thus, blatant violation of Constitution pre-empting the right of provinces.

Earlier, Finance Minister, Abdul Hafeez Shaikh, told the Senate that there was no other option but to implement the agreement with the International Monetary Fund (IMF) on the General Sales Tax (GST). Mr. Hafeez Shaikh, like his predecessor Mr. Shaukat Tarin, seems least pushed about the command of supreme law of the land that forbids the government to table this kind of bill having provisions falling outside the Federal Legislative List without first seeking the resolution from all the four provincial assemblies.

It may be remembered that in a two-day conference on Value Added Tax (VAT), held in Islamabad jointly by FBR and International Monetary Fund (IMF) on September 4-5, 2009, controversial issue of levy of VAT on services by the federal government came into focus. The then Finance Minister, Shaukat Tarin, assured the IMF that he would get the law passed by Parliament. He asked the FBR "to go ahead with the proposed plan of VAT from July 1, 2010". We criticised him in these columns observing, "One wonders how he could have spoken on behalf of the entire parliament and more seriously against the 1973 Constitution that bars the federal government to levy VAT on services".

It is lamentable that even after the 18th Constitutional Amendment the federal government is bent upon transgressing the supreme law of the land by tabling a law requiring prior consent from the provinces. It is a classic case of federal highhandedness; gross encroachment on the rights of provinces. The federal government has no authority to draft any law for any province — it is obvious that the stalwarts sitting in the Ministry of Law and FBR have blatantly violated Articles 141, 142 and 144 of the Constitution of Pakistan. Mian Raza Rabbani has rightly warned the government of possible consequences of such unconstitutional act. Even if this law is passed by National Assembly, it will be challenged in High Courts under Article 199 of the Constitution.

Successive governments in Pakistan — civil and military alike — have never bothered to work out judicious distribution of taxation rights between the federation and the federating units. Provinces were deprived of their right to levy tax on goods and serves emanating from their territorial boundaries. Perpetual abuse of constitutional provisions by Islamabad has created disharmony and animosity between the Centre and the provinces.

In all major federations — US, Canada and India for example — the federating units have the exclusive right to levy indirect taxes on goods and services transacted within their geographical boundaries. In Pakistan, the federal government has denied this right to the provinces till today — this issue was not raised by any province during the NFC meetings. The federal government, even after the 7th NFC Award and 18th Constitutional Amendment is collecting enormous amount of taxes on services that constitutionally belongs to the provinces.

Sales tax at the time of independence was a provincial subject. However, in 1948 it was made a federal subject by the Constituent Assembly of Pakistan through the Pakistan General Sales Tax Act, 1948 enacted on 31st March 1948. The right to levy sales tax on services remained with the provinces — this Constitutional position has always been unambiguous. This Constitutional position has never been challenged by anyone. The Centre derives powers from the Federal Legislative List, Part I, Fourth Schedule to the Constitution of Pakistan, through Entry 49, for the levy of sales tax on goods.

The exact language of this Entry is: "Taxes on the sales and purchases of "goods" imported, exported, produced, manufactured or consumed". How, on the basis of this Entry, the federal government can draft any law proposing sales tax on services on behalf of provinces? If the National Assembly cannot levy GST/VAT on services, how can such a law be tabled for debate, let alone be passed?

On the dictates of IMF and with the consent of PPP leadership, FBR proceeded to work on the draft of a law part of which was outside the Constitutional competence of the National Assembly — it did not even bother to secure prior resolution(s) of at least two provincial assemblies under Article 144 of the Constitution. Through Section 8 of the General Sales Tax Bill 2010, federal government has already pre-empted the right of the provinces to collect GST on services at their own.

No entries related to taxes in Federal Legislative List caters for GST/VAT on services by the Centre, but IMF is insisting that FBR should collect it on behalf of all the four provinces. The federal government even did not bother to wait for the provincial assemblies to pass resolutions to this effect under Article 144 of the Constitution. Needless to say that blatant violation of Constitution is being committed by the federal government by tabling the General Sales Tax Bill 2010.

IMF and World Bank are of the view that levy of VAT will be an important measure for documentation of the economy and ultimately leading to better income tax collections. They cannot comprehend that in our milieu where corruption is rampant in tax machinery and businessmen are unscrupulous, it will open new vistas of tax evasion. The crooked businessmen would collect GST from the masses but would not deposit the entire amount in the government treasury to avoid actual quantification of their turnover/income—the large portion of GST would go in the pockets of dishonest tax collectors and their friends in business and industry

The independent economists also stress that from pure economic point of view, leaving aside the legal dimensions of the conflict, levy of tax at 15% in the peculiar Pakistani conditions will have disastrous consequences. They apprehend that imposition at such a high rate would be a final deathblow for the country’s weak economy and would lead to further recession and poverty. Sales tax in its very nature is a regressive tax, being an ad valorem imposed on the seller; while the consumer ultimately bears its burden.

It is well established that such taxes take a larger proportion of smaller incomes than of larger incomes. Pakistan needs reintroduction of progressive taxes e.g. inheritance tax, wealth tax, gift tax, capital gain tax — abolished by military dictators. Instead of regressive indirect taxes, we must tax collossal wealth of rich and the mighty, especially that of absentee landlords. If untaxed and looted wealth of nation is confiscated through an asset-seizure legislature, current tax-to-GDP ratio of below 10 percent can jump up to 20 percent in just one year.

In 2001 we destroyed our income tax law by promulgating Income Tax Ordinance 2001 on the dictates of IMF — adjudged by the apex court in 2009 PTR 23 (S.C. Pak) as a law that was hurriedly enacted and uncaringly amended. Now in 2010 we intend doing the same with Sales Tax Act, 1990 — interestingly it is again IMF that is twisting our arm to go for new sales tax codes, both at federal and provincial levels. Pakistani tax experts have been pointing out over and over again that the country would be better off with a single-stage simple sales tax (at a low rate of 3% to 5%) as in Singapore and Japan, two highly developed economies. However, the tax bureaucracy wants complex rules and cumbersome procedures coupled with legal loopholes with unfettered discretionary powers — creating ideal conditions for corruption to thrive and flourish unabated.

The writers, tax lawyers, are Adjunct Professors at Lahore University of Management Sciences (LUMS)

__________________
Verily, His command, when He intends a thing, is only that He says "Be!" - and it is! (Al-Quran)

South Asia Subcontinent, which was reputed to be the ‘golden sparrow’ in the medieval ages, seems to be poised for rise, once again. However, the economic growth of Pakistan’s eastern neighbours — India and Bangladesh — is more impressive at present compared with the former.

The Indian economy is expected to rise by 9.2 percent in 2010-11 following impressive growth in the manufacturing and services sectors, according to the Centre for Monitoring Indian Economy (CMIE).

The foreign investment in the Indian stock market has crossed Rs1 trillion ($22 billion), hitting Rs1,005,742 million on October 13, 2010, for the first time in history. According to the Daily Tribune (Chandigarh, October 13), analysts predict that the overseas inflows will continue to increase in the coming months.

Going by the pace of foreign fund inflows, analysts are positive about the continuation of the trend in the near term, given that the country is one of the hottest destinations for investment by overseas fund houses. Last year, Foreign Institutional Investors (FIIs) purchased shares of Indian companies worth Rs834,230 million. During the same year, the stock market benchmark — SENSEX recorded a gain of over 80 percent.

The surge in the Indian market is primarily due to inflows by FIIs that have been pumping funds into emerging markets on account of their strong growth prospects and fundamentally sound companies.

Driven by FII inflows, Indian bourses picked up significant momentum during the second quarter of the current fiscal year. This helped the stock market to break out of the tight range that it was confined in the previous three quarters.

Analysts believe Delhi’s plans to disinvest in public sector companies, including Coal India Ltd; will give more investment opportunities to FIIs.

As regards Bangladesh, the International Monetary Fund (IMF), in its latest economic outlook, has projected the country’s economic growth at 6.3 percent for the current year, higher by 0.5 percentage point than last year.

Compared with India and Bangladesh, Pakistan’s economic outlook is depressing. "Hardly had our economy started showing signs of recovery when it was hit hard by the recent calamity," President Asif Ali Zardari said, on November 6, 2010, during a dinner meeting with some ambassadors of countries in the Friends of Democratic Pakistan (FoDP) forum.

Economy is the most vital element of national power because it is the one element which keeps the other moving. In addition to the recent unprecedented devastating floods, the war on terror, global financial crises and internal security conditions are some of the factors which adversely affected Pakistan’s economy.

After an impressive and above 5 percent growth for a couple of years, Pakistan’s GDP growth is projected at 2.8 percent during the current financial year. The foreign direct investment (FDI) in the country has tumbled down by 50 percent and economic activities have slowed down massively in the wake of non-provision of power and gas.

Meanwhile, with a burden of Rs9 trillion public debts, the country’s debt to GDP ratio has swelled alarmingly to 69 percent. (According to officials, the existing public debt hovers around Rs8.6 trillion.) The economic experts say that the debt burden is too much and the poor country has no debt carrying capacity.

Officials working for the IFIs and diplomats representing FoDP (Friends of Democratic Pakistan) member states believe that no one in the government looks serious to bring the economy on radar screen, upsetting FoDP and IFIs, including IMF, WB and ADB, as to why the state hierarchy are not serious to increase the national resources.

In a report entitled "Doing Business 2011," the World Bank has lowered Pakistan’s ranking as a place to do business by eight places, from 75th in 2010 to 83rd in 2011. The report might cast adverse impact on the potential investors and keep them away from the country, thus negatively impacting the efforts and hopes of economic turnaround that the nation and the country need so desperately.

In eight of nine categories, Pakistan’s ranking has slumped from 69th place during the previous year to 85th place; while globally the country has fared the worst in terms of its ability to enforce contracts. However, the report commends Pakistan’s judiciary because of the improvement in the time taken to settle cases.

According to Sultan Ahmed Chawla, President of the Federation of Pakistan Chamber of Commerce and Industry (FPCCI), Pakistan’s economy was in a critical situation only due to mismanagement and one-sided decisions. Addressing a meeting at FPCCI’s Lahore office on November 5, 2010, he exhorted the government to take the private sector on board in the process of policy-making.

Mired in poor governance and rampant corruption, Pakistan has paid almost Rs2.6 billion ($ 30 million) as commitment charges to ADB for not using efficiently, timely and in transparent manner the credit lines amounting to $4billion.

One of the perceived pre-requisites of good governance is transparency in administration and, in fact, in public life as a whole. If the government business is conducted openly, the authorities can afford transparency in most of public activities. It is now universally agreed that the more the transparency the less the corruption.

On the other hand, corruption inhibits good governance. It undermines economic development, stunts growth, fuels poverty and creates political instability. No nation can develop to its full capacity or realize its full potential in any field if its social system is plagued by corruption and inefficiency. Corruption not only causes a severe drain on the national economy, it also acts as a major disincentive to foreign investment.

The World Bank report brings to the fore the implications of poor governance, which has stifled growth, raised unemployment and depressed the economy in innumerable ways. The bleak picture painted by the World Bank must be taken seriously because without investment there can hardly be any prospects for turn around that Pakistan so urgently needs.

The writer is a freelance columnist based in Islamabad

alauddinmasood@gmail.com

__________________
Verily, His command, when He intends a thing, is only that He says "Be!" - and it is! (Al-Quran)

There have been quite a few reports about land scams these days. Procedures of land transactions, development, and transfers are executed. In urban areas, advertisements of land schemes are found everywhere.

Eye-catching images of lush green access ways and an overall up market profile make most of these schemes the ultimate aspiration for the masses. Despite the reality that city and regional planning is seldom applied in real professional sense, no proposed township stops short of claiming the ambience of technological advancement.

Land is not comparable to other commodities because it is finite. Technology or science can create many entities but land remains a non-extendable measure. Intelligent, judicious and sustainable use of land is the underlying principle of most city planning exercises. Livable cities are those where this principle has been respected in a letter and spirit.

London, New York, Sydney, and Los Angeles are all mega cites. They have experienced enormous pressures on their land development priorities. In comparative terms, these cities have been able to grapple with speculative pressures on land in a commendable manner. Ankara, the capital of Turkey, for example, experienced very rapid urbanisation. To deal with the issue of safeguarding its land assets as well as urban environmental quality, a huge plantation drive was undertaken by the Middle East Technical University — a well-known institution in Ankara.

Millions of full-grown trees were added to cityscape in a couple of decades. The effort was so outstanding that it was bestowed the Aga Khan Award for Architecture a few years ago. Approach in all of these and many other attempts is common — to protect the land from misuse and undesirable commercialisation. They offer worthwhile lessons to be learned.

Despite economic slowdown, new real estate ventures are picking up. The investments in the real estate are considered to be safer in comparison to the other options. This aspect automatically creates an attraction, especially for small and medium-scale investors. The capitalists connive with the land owners, land management agencies, influential politicians, and the armed forces authorities to carve out schemes of various kinds. These schemes supposedly serve mutual interest of the stakeholders who collectively steer them to achieve the best of market returns.

Trusts, foundations, and other similar organizations make use of their connections with the powers that be to acquire favours in the land sector. Permissions, approvals, no objection certificates, and concept clearance all fall in their way, apparently without scrutiny or in disregard to standard practices.

There are many problems in some land development schemes. According to some reports, hardly any schemes present correct internal zoning plan to the approving authority. What is normally done is that the submission documents are prepared in total conformity to the available guidelines. The plans are thus granted approval. Thereafter, the management of the schemes changes layouts, plot sizes, density provisions and even price schedules. A few of them announce schemes on incorrect information, interim approvals or other fraudulent means.

For example, many development schemes in our cities have developed along the path of natural storm drains. After occupation, such neighbourhoods are inundated during monsoons. The provision of appropriate infrastructure is another promise advertised without restraint by scheme managements. Scrutiny of the status of various schemes has shown many deficiencies. Some schemes have never even applied to the concerned departments/agencies for obtaining consent for the provision of the said services.

It is true that the existing load on services is beyond the capacity of service providing agencies. Obviously, the schemes are either delayed for decades or become an under-valued slum in case of non-availability of services. The management of such schemes only lure prospective customers through craftily-worded ads. Another way of advertising is about self generation of infrastructural services. From electricity to water, every service is pledged to be provided through self-generation. For electricity, thermal power plants are refered to as the solution. No one, however, explains as to how the colossal capital cost would be met or how its operation and maintenance would be financed.

Desalination plants, which are considered to be the ultimate solution for water supply in coastal belts, are an expensive proposition. Access roads are the next costly element in the set of requirements in any scheme. More often than not, they are left undeveloped even after possession is granted to occupants. Larger promises such as swimming pools, gymnasium, sports and recreational facilities are announced without giving details of design or completion. Either they are left completely unattended or developed much below the announced targets. Disgruntled buyers often end up in lengthy legal proceedings which add more to their financial woes.

Some institutional inputs need to be launched to make things better. An effective regulatory body must be created to look after land transactions. This body must hold dialogue and meetings with the stakeholders. Broad-based need analysis must be carried out to control land supply in relation to the need. Bogus land sales must be discouraged. Regulatory mechanism must ensure the participation and input of infrastructure providers.

Finally, laws and regulations related to safeguarding natural environment, land titles, and investment must be implemented through regulatory framework. The announcement of schemes may be tied up with clearance/approval from the regulatory body. It must be remembered that land is a finite asset. If it is lost to the unbridled ravenousness of a few, the forthcoming generations shall be more impoverished than us.

__________________
Verily, His command, when He intends a thing, is only that He says "Be!" - and it is! (Al-Quran)

The United Kingdom has recently revamped its entire education system. With re-doubled stress on languages and communication skills they are trying to emphasise the age-old point about education not being about the destination but the journey. Systems have already replaced the A levels in many of the leading schools in Britain, such as Charterhouse and Westminster. Of course, we Pakistanis still lag behind, and as each year passes, the number of pounds we pay foreign bodies such as the CIE only increase.

The problems with the education system in Pakistan can be divided into two main categories. Firstly, the structural problems in the system would require the entire set up to be overhauled. Secondly, there are procedural issues which have come about due to the sheer lack of regulation in both our public and private educational systems.

First come the problems with the structure of our educational system. One of the guiding principals of any educational system is equal opportunities for all. In fact, one purpose of education is to counter act the inequalities prevalent in society. The system in Pakistan is strictly divided into the haves and have nots.

The gap between the public and private systems is great in many countries all around the world. But in Pakistan, the discrimination is more institutionalised, it is in fact a part of policy. We have the local matriculation system and the British GCSE O/A level system running side by side.

The British system clearly provides a better standard of education, a fact that universities seem to have caught up on. A student from the inter system, no matter how bright, will never be on a level-playing field when competing with the GCSE students. Apart from a few half-hearted efforts by our medical colleges, little seems to have been done to correct this.

As it stands, our government has little incentive to remove this disparity. As long as their own children and the children of the influential educated upper middle class have access to quality education, little heed will be paid to the children in the matriculation system.

If anything, the direction the government is heading towards is providing greater incentives to students studying in foreign systems. Until and unless our policy-makers’ own children have to go through the same system as the masses, they will have little incentive to try and improve it. The best and only way to give our law-makers a stake in the system is to make it compulsory for all students across the board.

India started off in a predicament very similar to ours. They chose to focus on their own domestic system of education. Even though initially it was not internationally recognised, after a few years it became so. Now universities across the world recognise and widely accept Indian students. In fact, Pakistanis doing the GCSE have little edge over regular Indians when it comes to university placements.

The problems with education in Pakistan don’t just end there; we have issues which make even our high end GCSE set-up an embarrassment for any god-fearing educationalist. As mentioned before, education should be about the journey, but such is not the case in Pakistan. We have effectively killed any seed of creativity our young ones may have possessed by deliberately boxing education into 3-month crash courses. But it’s not all bad, these courses come with a guaranteed A grade, or at least the more expensive ones do. Thus, another more way in which parents can buy their children’s future.

Naturally, these crash courses hardly inculcate in one things like ettiquettes and grooming which are supposed to be as integral a part of education as learning. Their focus is entirely on the exam at the end of the three months, and they will stuff you with information they know you will forget as soon as the exam ends just so you can get that grade you were aiming for.

Retaining information or getting more out of the school experience than just one’s CIE certificate, these are things one can’t gloat about or which don’t make a student look smarter in drawing room discussions. In a society as materialistic as ours, where one reason kids are so pressurised is this social pressure parents themselves feel, it is not a surprise that we have so conveniently turned education into a tool to promote conformity and social inequality.

__________________
Verily, His command, when He intends a thing, is only that He says "Be!" - and it is! (Al-Quran)

The discovery of untapped lithium deposits in Afghanistan by the United States is far beyond any previously known reserves and enough to fundamentally alter the Afghan economy and perhaps the Afghan war itself.

Lithium has multiple uses in the modern world, including as a mood stabilizing drug, but its first serious industrial use was during the Second World War as part of high temperature greases that were perfect for use in aircraft engines.

The US was the world leader in lithium production from this era until the 1980s when vast South American deposits began to dominate. It is said that Afghanistan could be the "Saudi Arabia of lithium," a key raw material in the manufacture of batteries for laptops and mobile phones.

While it could take many years to develop a mining industry, the potential is so great that officials and executives in the industry believe it could attract heavy investment even before mines are profitable, providing the possibility of jobs that could distract from generations of war.

With the potential being great and the possibilities of making an enormous profit, certain realities make us ponder whether lithium could be the miracle that would turn around the situation in this war-torn Afghanistan.

The value of the newly discovered mineral deposits dwarfs the size of Afghanistan’s existing war-bedraggled economy, which is based largely on opium production and narcotics trafficking as well as aid from the United States and other industrialized countries. Afghanistan’s gross domestic product is only about $12 billion, whereas these vast deposits could become the backbone of the Afghan economy.

However, while looking at all these possible prospects certain questions come into our mind. Firstly, instead of bringing peace, the newfound mineral wealth could lead the Taliban to battle even more fiercely to regain control of the country. The corruption that is already rampant in the Karzai government could also be amplified by the new wealth, particularly if a handful of well-connected oligarchs, some with personal ties to the president, gain control of the resources.

Just last year, Afghanistan’s minister of mines was accused by American officials of accepting a $30 million bribe to award China the rights to develop its copper mine. The minister has since been replaced. Endless fights could erupt between the central government in Kabul and provincial and tribal leaders in mineral rich districts.

While these are internal problems we have the external threats. Another question is the role of the White House. Taking a trip down memory lane when we look at Iraq and how the war on terrorism was a disguise to smuggle oil. We have our doubts whether the lithium may actually be used to reform Afghanistan and not the United States. At the same time, American officials fear resource hungry China will try to denominate the development of Afghanistan’s mineral wealth, which could upset the United States, given its heavy investment in the region.

With all this, another complication in the technical aspect is that because Afghanistan has never had much heavy industry before, it has little or no history of environmental protection either. The big question is, can this be developed in a responsible way, in a way that is environmentally and socially responsible? With virtually no mining industry or infrastructure in place today, it will take decades for Afghanistan to exploit its mineral wealth fully.

Still, good news is hard to find in Afghanistan these days. Will the attempt to remain positive despite the "ifs" that surround this news succeed? Is there really a choice?

__________________
Verily, His command, when He intends a thing, is only that He says "Be!" - and it is! (Al-Quran)

This thread contains marvellous substance for CSS aspirants.
Keep it up Bro . May Allah and His Blessings be with You.

__________________
Thanks Allah

Zar Buland sat at the side of the rocky Karakoram Highway at Dubair Bazaar in Kohistan, staring into the tranquil flow of the river Indus right below him. He cursed at the deceiving nature of the water which only months ago had engulfed the entire bazaar, its mighty current washing away the road, shops, and bridges. There was hurt in his eyes, the very water that had sustained him, his family and the entire community -- running water mills, generating electricity, and irrigating what little land they had managed to cultivate had also been the source of immense destruction.

His son, Abdullah, can no longer attend school, most of his day spent traveling far from home to fetch water for the family. The flash floods have come and gone, but they have left behind collapsed bridges and wrecked roads. The valley where Zar Buland’s village is located is now cut off from the main bazaar and what was before the floods an hour’s journey, now takes days of difficult hiking through the mountains. Even the communal water mill that his wife used to go to every week to grind their grain for cooking has been washed away by water.

On Thursday 28th October 2010, we accompanied the staff of Omar Asghar Khan Development Foundation (OAKDF) to the remote Kohistan district in Khyber Pakhtunkhwa (KP) to see flood relief and rehabilitation activities in the area. The Indus River divides Kohistan into two parts with the eastern portion referred to as the Indus Kohistan and the western portion referred to as Swat Kohistan.

The Karakoram Highway passes through Kohistan on its way to Gilgit, and as we drove from Abottabad to Batagram, into Besham (Swat), finally crossing the Chakai checkpost to enter Kohistan, we instantly became aware of the abundant natural richness of the area. Driving along the Indus on one side of the Karakoram Highway, one is surrounded by massive mountains that lead into lush green valleys and forests home to some of the world’s most endangered species such as the tragopan pheasant, musk deer, and snow leopard.

Kohistan consists of 14-15 valleys where people have settled along water streams that flow from the Indus. The population is estimated at 472,570 (1998 census) -- a highly contested figure as it is presumably understated. After Dera Bugti, Kohistan is the most impoverished district in Pakistan and ranks second lowest in terms of human development. Even before the floods hit, people led a harsh and difficult life devoid of basic literacy and health services (the entire district is only served by 3 Rural Health Centers and 15 high schools). Kohistanis rely on forestry and rearing livestock for their livelihood and many of them travel to find work in the major cities of Pakistan or migrate to the Middle East.

OAKDF is one of the few organisations operating in Kohistan. The area is difficult to access not just in terms of its geographical terrain, but also because of the complex tribal dynamics and conservative culture that prevails. The fact that we did not come across a single woman on the visit and that many of the men were carrying guns speaks volumes of the difficult environment of the area. Due to these reasons, the district has been underserved not just by civil society organisations but also by the government.

Over the years, Kohistanis have learned to rely on themselves to meet their needs and this goes to explain the great self-sufficiency and resilience of these people. However, recent flooding has opened an entry point into the area as introverted governance and communal structures of the area are now becoming more open to assistance and engagement with outsiders. The disaster has also highlighted the need for tribes that are hostile towards each other to put aside their differences and come together in a time of great distress.

On Friday 29th October 2010, we held five meetings with people from various Union Councils of Kohistan regarding their flood relief and reconstruction needs:

Floods have affected people’s mobility in the region. Bridges, pathways and roads have been swept away. This is incredibly problematic as Kohistanis living up in the valleys come down to the main town centers with their livestock when winter approaches. Without roads and bridges making this journey through the mountains has become next to impossible. People claimed that they now make an hour’s journey in a day. The distinction between relief and reconstruction becomes blurred in practice as without access to bridges and roads it becomes very difficult for people to carry the food they receive through food distributions to their villages.

People’s discontent with the role (or lack thereof) the government has played in terms of flood relief and rehabilitation in the area was highlighted repeatedly. They feel that Kohistan has always been an excluded district of KP and the same has held true even in the post flood situation. The government’s efforts have been focused on areas such as Nowshera and Charsaddah.

Even though distribution of Watan Cards has been promised the government has not yet fully delivered. There are immense issues using the few cards that have been distributed as people lack information on usage and there is only one ATM machine servicing the population.

Water mills that were used to grind grains and water run electricity generators have also been destroyed. Rehabilitation of water channels is urgently required. Education, already lacking in the area, has suffered even more after the floods. Lack of access to potable water has meant that children now have to travel far to fetch water and cannot attend schools.

Health situation is already dismal (not a single hospital exists in Kohistan) and has been worsened as a result of lack of mobility caused by floods. The nearest hospital is in Mansehra which has become difficult to access now that bridges and roads have been destroyed.

Apart from identifying the needs of these communities, the meetings were also used as a platform to discuss advocacy possibilities. The sheer scale of needs identified in Kohistan makes it clear that both international donors and the government have to step up their assistance and address these needs with a comprehensive strategy.

This will only happen if the people of Kohistan form alliances with each other and with the rest of the Hazara population and demand their rights. At the final meeting held in Pattan, where all the communities came together, they were asked to set aside their differences and form committees that can come together on the platform of Tehrik-e-Huqooq-e-Hazara that was formed by OAKDF when the earthquake hit in 2005. They were also asked to map the needs they had identified at the earlier meetings to start forming a relief and reconstruction strategy.

Even though the flooding in Kohistan has almost entirely destroyed Zar Buland’s livelihood, his dreams are not yet shattered. The second most marginalised district of Pakistan is being included in the process of relief and reconstruction in a way that is mobilising communities such as the one Zar Buland belongs to, and giving them the agency to voice their flood related concerns.

OAKDF has already helped rebuild three bridges, conducted food distributions in the area and their technical team has completed feasibility and costing of roads and pathways that will improve access in some of the valleys of Kohistan. There are some other organisations working there too.

Despite these interventions, the flood relief/reconstruction efforts in the area are incredibly insufficient. The havoc created by the floods has been monumental and needs to be met by an equally colossal response. For years, the plight of people like Zar Buland has gone unnoticed. We must not let the flood affectees of Kohistan become the forgotten victims of this dreadful catastrophe.

The writer is Assistant Programme Officer, Open Society Foundation Pakistan

__________________
Verily, His command, when He intends a thing, is only that He says "Be!" - and it is! (Al-Quran)

Senior Vice President of the Awami National Party, Bushra Gohar, is a vibrant and articulate politician known for her unambiguous opinion on matters most politicians tend to avoid. Member National Assembly, Gohar hails from Swabi, Pakhtunkhwa. She is also Chair of the Standing Committee on Women’s Development. Gohar has once again taken an unequivocal stance by refusing to sit on the proverbial political fence and has moved a bill for the repeal of the Blasphemy Law.

In an interview with The News on Sunday, Gohar expresses concern over the statement of the minister for minority, Shahbaz Bhatti, on amending the law instead of repealing it and regrets the politically expedient factor reserved in it.

Gohar has also moved bills for Child Rights and Protection, Pakistan Citizenship, and the Prevention and control of Women Trafficking. Following are excerpts from the interview:


The News on Sunday (TNS): What prompted you to move for the repeal of Blasphemy Law in the National Assembly?

Bushra Gohar (BG): It has been a longstanding commitment of the human rights activists and progressive political parties in the country. I have also actively struggled for the repeal of all discriminatory laws, including the blasphemy law. These laws were made a part of the statute books during the Zia era with malafide intent, mainly to appease a handful of religious extremists in the country in order to secure support for his illegitimate government. These laws are in contradiction to Islam, our constitution, and national and international commitments. The amendments to the blasphemy provisions in the PPC have allowed religious zealots to go ahead with their extremist agenda disregarding the essential requirement of malicious intention in any criminal offense. In the present state, the blasphemy laws in Pakistan can easily be misused and practical instances testify this horrible fact. Decades have passed since the black law was enacted but none of the governments that followed found the strength or courage to repeal the discriminatory laws that contributed significantly to intolerance, violence, bigotry, hate and injustice in the country.

As the country struggles with challenges of extremism, militancy, and intolerance, I felt it was important now more than ever to make concerted efforts to ensure a level-playing field for citizens irrespective of their caste, creed, colour, and religion. It is unfortunate that in Pakistan the mere mention of taking up laws promulgated by a dictator in the name of religion is tantamount to blasphemy. I felt by submitting the bill I would give strength and courage to other members who too have long struggled against Zia’s black laws and would come forward and submit amendments. I submitted the bill for repeal hoping that it would initiate a meaningful debate within the Parliament. It is important that a Parliamentary Committee is formed to review all laws promulgated by dictators to further their illegitimate rule.

TNS: Were you supported by the minister for minorities, Shahbaz Bhatti?

BG: I didn’t seek or require his support as I don’t consider the matter to be only a minorities’ issue. It is more a constitutional and human rights issue. The ministry of minorities has a weak and poor record of safeguarding religious minorities’ rights and is nothing more than a window dressing with no substantial role in any policy making regarding minorities in the country. It has not played a pro-active role within and outside the parliament to evolve a consensus on equal citizen’s status for minorities, mainly religious minorities, in the constitution through the 18th amendment. Instead of removing the limitation in the constitution on a minority becoming a head of state, through the 18th amendment even the prime minister is now required to be a Muslim citizen. The Awami National Party (ANP) is the only party that has put a note of reiteration on both these clauses reaffirming its commitment to removing such discriminatory clauses. The party believes that as citizens, minorities have equal rights, which include elections to any statutory position in the country.

Shahbaz Bhatti has at best only given lip service to the myriad issues faced by religious minorities. On several occasions he made commitments to amend the Blasphemy Law and/or procedures but we have not seen anything of substance from him and don’t expect anything worthwhile in the near future.

I don’t understand why we have a ministry of minorities and a ministry of religious affairs with both working on matters related to religion and doing a terrible job in ensuring religious freedom, harmony and rights as ensured in the Constitution. I feel we should not have a ministry merely on the basis of religion as the rights of all other minorities in the country are invariably compromised.

TNS: Now that the minister has categorically stated that there shall be no repeal and only amendments to the law, will you withdraw your demand?

BG: I am deeply concerned at the statement made by Bhatti as it is not based on any consensus built within the parliament or the government. This could be his personal position and he has not taken any of the coalition partners or civil society on board. I don’t see why I would change my position on the basis of a politically expedient position taken by the minister of minorities.

TNS: Coming from an area like Swabi were you not deterred by conservative elements in demanding for abolition?

BG: I have been part of a long struggle for human rights in the country and have always been ready for the worst consequences. The people of Swabi were at the forefront of Fakhre Afghan Khan Abdul Ghaffar Khan’s struggle for freedom against the British and later for equal rights and provincial autonomy. I don’t believe any major opposition to the proposed bill will come from Swabi as the majority of the people are politically aware and uphold democratic norms.

TNS: Do you think your demand could adversely affect the ANP?

BG: The proposed bill is in line with the ANP’s longstanding commitments articulated in its election manifesto.

TNS: As a woman, are you comfortable sitting in the parliament?

BG: I have never felt inhibited or uncomfortable at any public forum because of my strong convictions and commitments.

TNS: Do you think you have reached your glass ceiling or being a member of the National Assembly is just a beginning to achieve your objectives?

BG: The National Assembly is only a means and not an end for me. It is, in fact, just a beginning of a long struggle that lies ahead if we are to see strengthening of democratic processes, social justice, and human rights in the country.

TNS: Where do you place yourself in terms of policy-making in ANP?

BG: The Awami National Party is the only political party that has women as equal members at all levels and has not boxed them in some odd wings. As Central Vice President of the party, I am an integral part of the party’s policy and decision-making. I am also a member of the party’s think tank where matters of national importance are reviewed on a regular basis.

TNS: What is your role as chairperson on Women’s Development for the National Assembly’s Standing Committee?

BG: National Assembly Standing Committees are a constitutional body within the Federal Government. Standing Committees provide legislative guidance and oversight to the relevant ministry as per the Rules of Procedure and Conduct of Business of the National Assembly.

As Chair of the Standing Committee on Women’s Development, my primary responsibility is to review, examine, and propose amendments to any Bill pertaining to Women’s Rights, Empowerment, Welfare and Development referred to the Standing Committee by the National Assembly. So far, two major bills, i.e., Domestic Violence Bill and Harassment at Workplace, among others, were reviewed by the Committee and sent back to the National Assembly with recommendations. The Committee regularly examines all other related ministries’ project commitments, budgets, policies, and procedures and gives recommendations. The Committee has taken up important public petitions pertaining to harassment at workplace in major public sector institutions.

TNS: Which other bills have you moved in the National Assembly?

BG: These are: Child Rights and Protection Act, 2010, Pakistan Citizenship (Amendment) Act, 2010, and Prevention and control of Women Trafficking Act, 2010.

TNS: Is there a supporting strategy to implement them?

BG: All the above proposed bills have been tabled in the National Assembly and except for the Child Rights and Protection Act, 2010, which was deferred because the ministry wanted to bring its own bill, all others have been sent to the relevant Standing Committees for review. The bill for Promotion of Minority Rights, Religious Tolerance and Inter-faith Harmony Act, 2010 (Repeal of Blasphemy Law) has yet to be tabled in the National Assembly.

TNS: Are you lobbying to replicate the formation of the Women Parliamentarian Caucus in Pakistan on the South Asian level?

BG: We have initiated a process of forming a Women’s Parliamentary Caucus at the South Asian regional level. The Speaker National Assembly, Ms Fehmida Mirza, who is patron of the Women’s Parliamentary Caucus, has been leading the process.

TNS: Could you explain why does the ANP not have an intra-party women’s wing?

BG: The ANP considers women as equal members with equal space and opportunity at all levels within the party. This doesn’t mean that women members in the party cannot have their own organising forum to debate and discuss issues specific to them before bringing them to mainstream decision-making forums. The party women members have held women conventions, conferences, and an all-women jirga on peace and security. Protracted dictatorships, conservatism, religious extremism, and terrorism have left women’s political participation weak not only within the party but throughout the country. Under the leadership of Asfandyar Wali Khan, the ANP has focused on bringing women members at par within the party. Wings are retrogressive and end up marginalising women’s participation within the party.

TNS: Is that not contrary to your nomination as a member of the National Assembly on a reserved seat?

BG: Membership in a women’s wing is not a prerequisite for election to a National Assembly seat reserved for women. Once elected to the National Assembly, all members are equal. I don’t see any contradiction. I, however, feel that there should be a review of the Political Parties Act to improve the process of election on reserved seats.

__________________
Verily, His command, when He intends a thing, is only that He says "Be!" - and it is! (Al-Quran)

Addressing the Lahore Chambers of Commerce and Industry the other day, the Indian High Commissioner to Pakistan underlined the need for shoring up intra-region cooperation in this part of the world as the engine of growth. He observed that while South Asian countries were integrating with the international economy, they remained less integrated with one another.

One can hardly disagree with the Indian envoy. The countries of South Asian Association for Regional Cooperation (SAARC) are mired in poverty and underdevelopment. South Asia accounts for nearly 23 percent of the total world population. However, its share in the global GDP is less than 3 percent. The region is home to the world’s 400 million poor, which means nearly 30 percent of the region’s population lives below the poverty line.

All South Asian countries have a rather low-ranking on the Human Development Index (HDI), which according to the Human Development Report 2010 is: Sri Lanka (91), the Maldives (107), India (119), Pakistan (125), Bangladesh (129), Nepal (138) and Afghanistan (155). The ranking for Bhutan is not available but it was 133rd previous year. The HDI ranking is based on achievements in terms of life expectancy, education, and real income. The low HDI ranking reflects poorly on these vital indicators in the region.

Trade is an instrument of development. However, SAARC’s trade performance is also disappointing. The combined trade of all eight member countries accounts for less than 2 percent of global trade. The region accounts for 1.7 percent of world exports and 3 percent of global FDI inflows. The share of South Asia in total Asian exports and imports is merely 4.7 and 7.5 percent respectively. Not only is global trade volume of SAARC member countries small, intra-region trade is also low. Intra-SAARC trade accounts for less than 5 percent of the total trade of the region.

With a view to achieving regional integration, the member countries created South Asian Free Trade Agreement (Safta) in 2004 at the twelfth SAARC Summit. The agreement, which came into force on January 1, 2006, provides that members will reduce their tariffs to 0-5 percent by December 31, 2015. The success of Safta, however, largely depends on normalisation of Pakistan-India relations. In case the relations between the two countries do not normalise, Safta’s fate will not be different from that of its predecessor, South Asian Preferential Trade Agreement (Sapta).

The major reason for meager intra-SAARC trade is low volume of trade between Pakistan and India, the largest economies and trading nations in the region. Though formal Pak-India trade (the two countries have informal trade of more than $3 billion a year) has increased from $236 million in 2001-2002 to $1.32 billion in 2009-10, (including $259.4 million exports from Pakistan and $1.06 billion exports from India), it still constitutes less than 1 percent of the global trade of the two countries. Pakistan has not even granted MFN status, a basic requirement under the WTO, to India and continues to conduct its imports from India on the basis of a positive list. On its part, India maintains high tariffs and non-tariff barriers on products of export interest to Pakistan.

South Asia is clearly dominated by India. It accounts for 74 percent of the region’s population, 75 percent of its GDP, 79 percent of its trade and 81 percent of the region’s FDI inflows. India has trade surplus with all other South Asian countries except Bhutan. In addition, India is the largest military power in the region and, together with Pakistan, a nuclear state. Because of its formidable position in South Asia, India thus bears the responsibility more than any other country to make SAARC a success.

However, it is with India that most other countries in South Asia have had bilateral disputes. These countries look to New Delhi’s growing military expenditure with grave suspicion. This has on the one hand prevented India from assuming the leadership of SAARC, much to the former’s disappointment, and on the other, made its neighbours look outside for help and mediation.

For instance, Norway mediated between the Sri Lankan government and Tamil Tigers and Pakistan has been calling for third-party mediation, particularly by the US, to help resolve the Kashmir issue.

The problem in case of South Asia is that not only are the resources scarce, they are also misallocated. Too much is spent by the countries on military goods and services leaving a very small amount, after debt servicing and meeting administrative expenditure, for capital formation and human resource and social sector development. In case of India, military expenditure accounts for 2.5 percent of GDP, while the ratio in case of Pakistan, Sri Lanka, Bangladesh, and Nepal is 4, 2.6, and 1.5 percent respectively. The vicious cycle of poverty and debt in SAARC countries can end only if the meager resources are optimally utilised for capital formation and human resource and social sector development. This will also increase their attractiveness as markets for foreign direct investment.

The poor trade performance of SAARC stands in marked contrast with that of the neighbouring regional alliance -- Association of South East Asian Nations (ASEAN). The ASEAN countries account for merely 8.4 percent of the total world population. However, their share in total world trade is nearly 7 percent. ASEAN’s contribution to Asia’s total trade is 23 percent. Intra-ASEAN trade accounts for nearly 30 percent of the global trade of the 10-member countries. ASEAN countries have remained embroiled in territorial disputes but that has not hampered their trade relations.

The efforts to normalise relations between Pakistan and India, therefore, must continue. The search for resolving the contentious issues should go on. In principle, these issues should not deter economic cooperation in the region. China and Taiwan have a serious political dispute but that has not prevented them from enhancing economic cooperation.

As a matter of fact, this separation of economic and political issues does not apply to South Asia, particularly to Indo-Pak relations. Therefore, pragmatically, the best approach will be to address economic and political issues together. This is what the stalled Pak-India composite dialogue was meant for. Therefore, the sooner the dialogue is resumed, the better it will be not only for the two countries but also for the region.

hussainhzaidi@gmail.com

__________________
Verily, His command, when He intends a thing, is only that He says "Be!" - and it is! (Al-Quran)