Comment by Riaz Haq on March 23, 2013 at 10:01pm

Here's an interesting Op Ed by Mazur Ejaz in Friday Times:

The condition of an economy is often confused with the financial health of its government. Pakistan's economy is perceived to be in a deep hole because of its near-bankrupt fiscal conditions. Similarly, America's inability to settle on a national budget is taken to be an indicator of the collapse of the US Empire.

In some ways, the condition of the economy and the financial health of the government are separate matters. Major stock market indexes at Karachi Stock Exchange and the Wall Street are at their highest level, but both governments are facing serious financial problems. Most of the countries around the world are facing similar dichotomous situations. So how does one solve the riddle of the corporate sector making record profits while governments around the world are in serious financial jeopardy?

The phenomenon needs to be analyzed at grass-roots level. A shopkeeper from my village comes to mind. He told me that he sells PTCL internet cards grossing about Rs 9,000 every day. There are several other such shops in the village. That means that just in one village, the total sale of PTCL internet cards is up to 50,000 rupees. This consumer item was not present five years ago, which means hundreds of computers have been bought in the village recently. Furthermore, if such luxury products are making such huge profits for village shops, traders throughout the country must be making much larger profits selling essentials every day. One of the indicators of booming business in our village is that the United Bank branch in the village is doing very well, according to its manager.

There are thousands of such villages in the country, and that gives one an idea of the mammoth growth of rural markets. Such an undocumented economy is not even factored in estimating the economic growth of the country. From these supposedly marginal markets, one can extrapolate the profits of the corporate sector in towns and cities.

It may be astounding for some that Pakistan's banking sector is considered fourth in profitability in the entire world. Producers of other major industrial and agricultural products are also making huge profits. Cement, fertilizer, automobile, construction and telecommunication industries are doing extremely well. Other than the textile industry, which has been hit by power shortages, there is hardly any manufacturer or importer/exporter of any kind of goods who is not making money. The stock markets look at the profits of these industries and price them accordingly. Therefore the claims of Pakistan's economic growth are not a fairy tale. The evidence is out there in the market.

The government is also like a large corporation whose income depends mainly on tax revenue. Most of the goods and services (such as roads, defense, education and health) provided by the government are public goods which are not priced directly. The government has to price its public goods through direct taxes on income and sales, or indirectly. Following a certain brand of capitalism, countries like Pakistan and the US are not collecting enough taxes to cover the cost of public goods. They have failed mainly in collecting direct taxes on income. While Pakistan cannot implement an appropriate tax collection mechanism because of corruption, the US has leaned towards favoring high income groups and ended up in a jam. The net result is the same: the rich are getting richer, appropriating most of the new wealth generated....

http://www.thefridaytimes.com/beta3/tft/article.php?issue=20130322&...

Comment by Riaz Haq on March 24, 2013 at 10:02am

Here's an excerpt of an Express Tribune Op Ed on youth vote in Pak elections:

Figures released by the Election Commission of Pakistan (ECP) show that a significant proportion of this year’s electorate is made up of people under the age of 35. Nearly half of the 84 million registered voters — 47.8 per cent — are aged between 18 and 35, while 19.77 per cent, or 16.88 million voters, are under the age of 26.

There is no doubt that political parties are aware of this sizeable youth vote and its potential voting power. Perhaps, the most obvious example is Imran Khan’s Pakistan Tehreek-e-Insaf (PTI), which has targeted much of its campaigning at young people over the last two years. It has a greater online presence than the other, more established parties, using Facebook and Twitter to disseminate information and engage supporters. PTI campaign material also places emphasis on the concerns of disillusioned youth, pledging to build a better economic environment with more job opportunities. These efforts have been reflected in its pubic rallies, largely populated by young people. While the PTI — a relatively new entrant to the political scene — has an obvious interest in utilising the youth vote to challenge the status quo, the more established parties have also made attempts to court the young. For its part, the ruling Pakistan People’s Party (PPP) has been aggressively encouraging registration for Computerised National Identity Cards (CNIC). Without one, you cannot vote and many of the new registrations are expected to be in rural areas where the PPP can rely on support. There is also the fact that along with a CNIC comes eligibility for vote-winning public welfare and loans, which young people can benefit from. Meanwhile, in Punjab, the Pakistan Muslim League-Nawaz (PML-N) has given away thousands of free laptops to college students.

It is obvious, then, that the big parties don’t want to miss out on the votes of young people. But how important will this group actually be in deciding the election result? The first thing to note is that no one knows how these voters are going to behave. Many of them — around eight million — are new voters, created when the voting age was reduced from 21 to 18 in 2002. There is no guarantee that these newly registered voters will even make it to the polling stations and there isn’t much data available for comparison. The ECP does not collate information on how people have voted according to age group, so it is a mystery what under-35s have done in past elections. Certainly, the influx of new voters didn’t have much impact on the status quo in either the 2002 or 2008 elections. This lack of information makes it difficult to predict the future with any accuracy.
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The political parties may all be engaging with youth when it comes to winning votes, but after the next government has been formed, whoever emerges victorious would do well to focus on the things that will actually keep this young population happy, productive and engaged with society. Rather than free computers or welfare handouts, the only things that will make a difference in the long term are education, economic development and the jobs that go with it.

http://tribune.com.pk/story/525778/pakistans-youth-bulge/

Comment by Riaz Haq on March 25, 2013 at 10:46pm

Here's an ET blog post by Paul Keijzer,a Dutch resident of Karachi:

It has been ten awesome years since I started working and living in Karachi, Pakistan. It’s a strange realisation that I have never lived longer in any other place my whole life.

I arrived in March of 2003.

It was the start of the Iraq war and one can only imagine the concern my parents felt when I told them I was moving to Pakistan. Their apprehension has not faded (they get daily reminders of the horrors that Pakistan is exposed to) but they have now accepted that this is my home.

Obviously I was also quite uneasy at first, and to make matters worse in June 2003 Time Magazine ran a front cover story with the headline:

“Karachi: The world’s most dangerous city.”

The interview inside quoted one of Karachi’s most infamous hit-men. Surprisingly, it was not the interview or the murder statistics that blew me away, it was the fact that even Karachi’s most notorious hit-man had a number of body guards for his own protection.

When I first moved here, driving on MT Khan Road was a short and excruciating version of the Paris – Dakar race. The city would get completely swamped and immobile for days following a refreshing summer rainstorms, and there was just McDonalds at Park Towers for entertainment.

Ten years is a long time and Karachi is a different city now.

Despite all our complaints, the infrastructure of the city has completely transformed and life in Karachi has moved on. It remains a city of extremes, with the newest and most expensive imported cars trading places with camel carts. With high-flying socialites enjoying coffee at the newest hot spot in town and millions of people living from day to day, if not hour to hour, fighting for survival.

However, as a Dutch man I strongly believe in an equitable society where people have similar opportunities and chances, and where success is based on merit.

We live in a country where 100 million people are under the age of 25, all who dream to acquire a branded life style. Sadly, only a small percentage of them have the abilities to do so (50% of the population under 25 can’t read or write). It is a wonder that this social time bomb has not gone off yet.

Ten years living here and I have learned to love this country.

Pakistan is an absolutely amazing place with amazing people. No other country in the world would be able to get back on its feet after the numerous mortal blows it has received.

An example that will always stay in my heart was the reaction to the 2005 Kashmir earthquake. In a time of great need, it was humbling to witness the compassion and commitment to help fellow citizens.

I am very optimistic about our future. With our resources, our resourcefulness, the desire to build a better life for our families, our compassion and our love for the country, we will get it right and prosper. We will elect the right leaders that will sort out our governance issues.

We will come together unite, showing the world how magical Pakistan can be, the place that I so dearly call home.

Happy Pakistan Day – Pakistan Zindabad!

http://blogs.tribune.com.pk/story/16591/celebrating-10-amazing-year...

Comment by Riaz Haq on March 28, 2013 at 8:54am

Here are some excerpts of an interesting story published in The Hindu:

Can anyone really live on Rs. 26 a day, the income of the officially poor in rural India? Two youngsters try it out.

Late last year, two young men decided to live a month of their lives on the income of an average poor Indian. One of them, Tushar, the son of a police officer in Haryana, studied at the University of Pennsylvania and worked for three years as an investment banker in the US and Singapore. The other, Matt, migrated as a teenager to the States with his parents, and studied in MIT. Both decided at different points to return to India, joined the UID Project in Bengaluru, came to share a flat, and became close friends.

The idea suddenly struck them one day. Both had returned to India in the vague hope that they could be of use to their country. But they knew the people of this land so little. Tushar suggested one evening — “Let us try to understand an ‘average Indian', by living on an ‘average income'.” His friend Matt was immediately captured by the idea. They began a journey which would change them forever.

To begin with, what was the average income of an Indian? They calculated that India's Mean National Income was Rs. 4,500 a month, or Rs. 150 a day. Globally people spend about a third of their incomes on rent. Excluding rent, they decided to spend Rs. 100 each a day. They realised that this did not make them poor, only average. Seventy-five per cent Indians live on less than this average.

The young men moved into the tiny apartment of their domestic help, much to her bemusement. What changed for them was that they spent a large part of their day planning and organising their food. Eating out was out of the question; even dhabas were too expensive. Milk and yoghurt were expensive and therefore used sparingly, meat was out of bounds, as were processed food like bread. No ghee or butter, only a little refined oil. Both are passionate cooks with healthy appetites. They found soy nuggets a wonder food — affordable and high on proteins, and worked on many recipes. Parle G biscuits again were cheap: 25 paise for 27 calories! They innovated a dessert of fried banana on biscuits. It was their treat each day.
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Living on Rs.100 made the circle of their life much smaller. They found that they could not afford to travel by bus more than five km in a day. If they needed to go further, they could only walk. They could afford electricity only five or six hours a day, therefore sparingly used lights and fans. They needed also to charge their mobiles and computers. One Lifebuoy soap cut into two. They passed by shops, gazing at things they could not buy. They could not afford the movies, and hoped they would not fall ill.

However, the bigger challenge remained. Could they live on Rs. 32, the official poverty line, which had become controversial after India's Planning Commission informed the Supreme Court that this was the poverty line for cities (for villages it was even lower, at Rs. 26 per person per day)?
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... Do we really need that hair product or that branded cologne? Is dining out at expensive restaurants necessary for a happy weekend? At a larger level, do we deserve all the riches we have around us? Is it just plain luck that we were born into circumstances that allowed us to build a life of comfort? What makes the other half any less deserving of many of these material possessions, (which many of us consider essential) or, more importantly, tools for self-development (education) or self-preservation (healthcare)?

We don't know the answers to these questions. But we do know the feeling of guilt that is with us now. ....

....And above all — in Matt's words — that empathy is essential for democracy.

http://www.thehindu.com/opinion/columns/Harsh_Mander/barefoot-the-o...

Comment by Riaz Haq on March 30, 2013 at 9:56pm

Here's how PPP boasts of its record of the last 5 years, as reported by PakistanToday:

The Pakistan People’s Party on Saturday released a 29-point report on its five year performance, highlighting major achievements during the period.
It makes special mention of the constitutional reforms, particularly the 18th, 19th and 20th amendments which provided provincial autonomy, transfer of presidential powers to parliament, smooth installation of caretaker governments and striking down of president’s power to dissolve the assemblies.
Munir Ahmad Khan, the PPP in-charge policy and planning cell, presented the report before the media at a press conference. He said that credit goes to the PPP for ensuring independence granted to the Election Commission of Pakistan.
Khan also came up with a list of important decisions and steps taken by the PPP government to mitigate sufferings of the people despite terrorism in the country.
In this regard, he mentioned a record increase in wheat production, increase in salaries of govt officials up to 158 percent, disbursement of Rs 70 billion among 7.5 million deserving families through the Benazir Income Support Programmed and financial help to 135,000 deserving people by Pakistan Baitul Maal.
On steps taken by the government for economic revival, Khan cited the Pak-Iran agreement on the gas pipeline, agreement with China on Gwadar Port, increase in foreign exchange reserves from $6 billion in 2008 to $16 billion in 2013, increase in export from $18 billion in 2008 to $29 billion in 2012, boost in stock market from 5,220 points in 2008 to 18,185 points in 2013 and reduction in interest rate from 17 percent in 2008 to 9 percent in 2013.
He believed that these measures would help improve the economy and ameliorate the people.
Talking about the measures taken to increase production of electricity, the PPP leader told reporters that the PPP-led government added 3,600MW of electricity to the system besides initiating additional work on Mangla and Tarbela dams for increase of 4,500MW in the system.
The previous government, he added, also got $3.5 billion for Basha Dam, initiated Neelum-Jhelum, Gomal and Satpara dams and Thar Coal project to get electricity from coal besides Jamphar project to get electricity out of air.
He said further the PPP government also reinstated thousands of government servants who were dismissed during the last 13 years and also regularised thousands of contract employees.
Among steps taken by the government for welfare of the masses, Munir Khan listed resumption of trade union activities, distribution of shares among 500,000 industrial workers, cheep tractors to farmers through Benazir Tractor Scheme, increase rural economy from 50 billion in 2008 to 800 billion rupees in 2013.
He said Faisalabad-Multan Motorway and construction of thousands of kilometres of roads.

http://www.pakistantoday.com.pk/2013/03/30/news/national/ppp-releas...

Comment by Riaz Haq on April 1, 2013 at 10:39am

Here's a Dawn story on NADRA software to enable Pak diaspora to vote in national elections:

In compliance with an order of the Supreme Court, the National Database and Registration Authority (Nadra) has devised a software to help 4.5 million overseas Pakistanis to cast their votes in the coming general elections.

The $1.5 million software will help overseas Pakistanis in 15 countries, including the US, UK, Canada, Saudi Arabia, UAE, France and Australia, to vote at 150 polling stations. However, approval of the Election Commission of Pakistan (ECP) and cooperation of the Ministry of Foreign Affairs will be required to prepare required legislation.

Nadra chairman Tariq Malik said at a news conference that a detailed briefing would be given to ECP on the software on Monday and if the ECP approved it, a briefing would be arranged for the Supreme Court.

The chairman said that almost 70 per cent of overseas Pakistanis were living in Saudi Arabia and Gulf countries where there was a ban on political gatherings and rallies. Therefore, the Ministry of Foreign Affairs would have to get permission for polling process in those countries, he added.

“Permission from those countries and travel arrangements of Nadra officers have to be completed by April 5 because establishment of polling stations for e-voting will be a lengthy process. One computer, printer, thumb digitiser and secure internet connection will be required at every poling station,” he said.

Mr Malik said overseas Pakistanis would get the facility of e-voting through embassies. Polling stations will be set up in designated missions. A biometric system will also be installed in the poling stations to avoid casting of bogus votes.

On the polling day voters will have to come to the polling station. They will be required to produce machine readable passports and National Identity Cards. The process of voting will be simple and the vote will be cast in the ECP database without recording identity of the voter.

On completion of polling, the ECP will have electronic results available in its database. Constituency-wise aggregated result will be printed by the ECP and faxed to returning officers for inclusion in preliminary results. “Although software appears to be safe, it has never been used in Pakistan, so Nadra will suggest that polling for overseas Pakistanis should be arranged two or three days prior to elections,” he said.

http://dawn.com/2013/04/01/nadra-develops-15m-software-for-voters-a...

Comment by Riaz Haq on May 9, 2013 at 8:41am

Here's an Aljazeera report titled "Pakistai economy grows in spite of state":

Lahore, Pakistan - Zia Hyder Naqi started his first business when he was eight years old, turning old newspapers into paper bags in the eastern Pakistani city of Lahore. He didn’t earn much, but the 1.5 Pakistani Rupees ($0.02) he made every day was enough to buy him his lunch, and a sense of satisfaction at having made something.

Today, 40 years later, Naqi is the managing director at a plastics manufacturing firm that employs 430 people, and earned $14.2m in revenue last year.

Synthetic Products and Enterprises Ltd (SPEL) is one of the largest firms of its kind in the country, and makes everything from plastic cups to the inner sides of car doors for firms such as Toyota, Honda and Suzuki, and everything in between.

Business has been good for SPEL, Naqi says, but that's not because the government is providing a conducive climate for economic growth.

"Let's start by saying that we work in spite of the government and not because of the government," Naqi told Al Jazeera. "It really means that we have to struggle. We compete against the best in the world."

Power cuts

Pakistan suffers from a raft of economic problems - spiraling inflation and unemployment, a chronic energy crisis, a lack of implementation of existing policies and an unstable investment environment, owing to the country’s tense security situation.

Primary among those difficulties, Naqi says, is the issue of power cuts - or load-shedding, as it is referred to in Pakistan.

"Our reliability is affected when we have load-shedding, because we don't know when power will arrive and go. So we have to create back-ups, which means that the cost of operations goes up. It affects morale, it affects our work, it affects our delivery, it affects our customers. [It affects] the cost at which we deliver, and how competitive or uncompetitive we become to the customer," he says, estimating that the cost of putting in those back-up system raises the overall cost of his products by as much as 10 percent.

Last year, Naqi’s firm spent an extra $1.2m on putting back-up generators into place, fuelling them and paying for their general upkeep, as opposed to taking electricity off the grid. Moreover, he says, that $1.2m is a sunk cost, as it is not being invested into productive processes. The result: it’s harder for Pakistan’s products to compete in the international market, as the cost of producing electricity pushes firms into a loop of spiraling costs and being unable to further invest in new technologies.

Pakistan’s electricity woes, analysts say, are a result of industrial growth outstripping the pace of growth in generation, and a woefully maintained distribution system that results in line losses of around 20 percent At its peak last summer, the country’s electricity shortfall was a staggering 8,500MW - about 40 percent of the country’s total generation capacity (not counting transmission losses)
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Meanwhile, far from the think tanks and policy committees, the entrepreneurial spirit of the eight-year-old Naqi is still alive and well. Over the last month, dozens of shops have sprung up all over Lahore, selling elections campaign-related merchandise - everything from pins and badges (for about $0.40 each) to gigantic flags ($2.44), from T-shirts ($3.05) to stuffed soft toys in the shape of party election symbols.

"With the amount of money that I’m making right now," says Muhammad Imran, 30, the owner of one such shop, "we could have built a whole bridge!"
....

http://www.aljazeera.com/indepth/features/2013/05/20135816311478219...

Comment by Riaz Haq on May 15, 2013 at 5:25pm

According to World Values Survey done by two Swedish researchers, India, Jordan, Bangladesh and Hong Kong by far the least tolerant.

In only three of 81 surveyed countries, more than 40 percent of respondents said they would not want a neighbor of a different race. This included 43.5 percent of Indians, 51.4 percent of Jordanians and an astonishingly high 71.8 percent of Hong Kongers and 71.7 percent of Bangladeshis.

Unfortunately, the Swedish economists did not include all of the World Values Survey data in their final research paper. So I went back to the source, compiled the original data and mapped it out on the infographic above. In the bluer countries, fewer people said they would not want neighbors of a different race; in red countries, more people did.

Pakistan, remarkably tolerant, also an outlier. Although the country has a number of factors that coincide with racial intolerance – sectarian violence, its location in the least-tolerant region of the world, low economic and human development indices – only 6.5 percent of Pakistanis objected to a neighbor of a different race. This would appear to suggest Pakistanis are more racially tolerant than even the Germans or the Dutch.

http://www.washingtonpost.com/blogs/worldviews/wp/2013/05/15/a-fasc...

Comment by Riaz Haq on August 22, 2013 at 8:06am

Muslims have lowest living standard in India: Govt survey

Muslims in India continue to be the worst off. Indian Muslims are worse off than even the untouchables...they are the new untouchables

http://m.timesofindia.com/india/Muslims-have-lowest-living-standard...

Comment by Riaz Haq on September 1, 2013 at 11:04am

In "A History of Pakistan and its origins", Christophe Jafferlot cites British-Pakistani Prof Samuel Martin Burke rejecting the notion that the Two-Nation Theory died in 1971 with Pakistan's split into Pakistan and Bangladesh.

Burke says that the two-nation theory was even more strongly asserted in that the Awami League rebels had struggled for their own country, Bangladesh, and not to join India. In so doing, they had put into practice the theory behind the original resolution to form Pakistan, which envisaged two Muslim states at the two extremities of the subcontinent.

http://books.google.com/books?id=Q9sI_Y2CKAcC&printsec=frontcov...

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