Pakistan: A Case for Small Government: American Chronicle

As the subcontinental saying goes, "Every two miles the water doth change, and every four the dialect". It can be rephrased to represent the reality of Pakistani Government as well..."Every two mile the water doth change, and every four the (governmental) authority".

Muhammad Saad Sarwar

“Who will monitor the monitors?”, a famous quote from the movie “Enemy of the State” starring Will Smith fits well with the case for small governments all around the world. Pakistan’s way of dealing with its problems of ensuring quality is the same. Create one authority after another to monitor this or that in order to ensure quality. All around the world governments have given up the job of monitoring different businesses and services. They have instead handed the baton to the private corporations with the premise that they would be able to take care of their customer in a better way without much government involvement. Flat and lean structure of a modern private organization would also result in transparency which government departments seldom offer. Governments all around the world are filled with bureaucratic layers, which make workings of these organizations crawl even at the best of government speeds. This problem is even more pronounced in developing nations such as Pakistan.

The West, however, is also not immune to such problems. Voice is raised every now and then on curtailing the size of the government. Big governments can devour big budgets in no time and hard earned tax payer money is spent in a lost cause. The Food and Drug Administration (FDA) is an agency under the US Department of Health and Human Services charged with the regulatory oversight of many products that affect the health and lives of Americans. FDA has been under heavy criticism from many segments of the American society regarding its role in the approval and monitoring of drugs. It has also been criticized for being influenced and pressured by the American pharmaceutical industry for approval of certain drugs. Even in Pakistan the drug testing labs have been criticized for receiving kickbacks and allowing or disallowing a drug based on favors given to them by pharmaceutical companies rather than the merit of the drug.

The solution is to create non-profit independent organizations or give the lead to other private companies who can do that particular job in a better way. International organizations can also be developed which are independent of government or operate under the auspices of the United Nations. For approval or disapproval of drugs it could be any private company whether from Pakistan or around the world which is renowned for its independence, vigor, quality and integrity, whose seal of approval could be respected by customers all around the world. The website of this private company could display a list of approved drugs from all around the world, complete with relevant information about the medicine. Any customer should be able to go to its website and find out for him or herself about the nature of the drug and its validity.

International Corporation for Assigned Names and Numbers (ICANN) is a practical example of such an international organization for the internet. It is designed to handover the administration of the internet from the government to private enterprise. It manages domain names and IP addresses for the internet and the World Wide Web for much of the world.

Regulation of Higher Education in the West, especially the US is another example that underlines the role of private enterprise in the garb of regulatory bodies. The public universities or state universities of different states in the US are governed by a board of regents or governors, many of whose members have ex-officio appointments. The respective board of regents of these states prescribe the standards, functions, course guidelines, degrees and funding for the public universities in the different states of the US. All financed through the US tax payer pocket. However, they have no control or authority over private universities operating in the state, which have their own board of governors or trustees. The private universities in the US are accredited by different non-governmental organizations such as the Southern Associate of Colleges and Schools (SACS) which is responsible for accreditation for the schools in the southern states such as Virginia, Florida, Kentucky, Louisiana etc.

The different departments in these schools are accredited by other non-profit non-governmental organizations such as Accreditation Board for Engineering and Technology (ABET) for engineering departments of the universities in the US. In fact, ABET also certifies the engineering departments all around the world. Engineering students, who are the customers of the colleges and universities would go into any school with an ABET stamp of accreditation on it whether in the US or abroad. If any Pakistani university gets accreditation from ABET for any of its engineering departments it would also be able to attract best students from all around the world who will be willing to join the university for the sake of an ABET accredited degree at a cheaper cost from a developing country. Similarly, Association to Advance Collegiate Schools of Business (AACSB) founded in 1916, a non-governmental organization was charged with accreditation of business schools world wide with Harvard, Yale, Dartmouth, UPENN etc. (the IVY leagues) as founding members. Currently, none of the business schools in Pakistan is a member of AACSB, which is a shame. One of the biggest criteria for me to search for a business school for my business degree was also coincidently, AACSB accreditation which is recognized all over the world. Any student like the author who has been a graduate from AACSB accredited business schools can boast of such a qualification and is preferred over the rest for job applications. Even the ranking for the universities in the US is done by private corporations such as the Princeton Review or US News and World Report which helps give transparency and objectiveness to the rankings. The role of non-governmental organizations in regulating educational institutions can never be overestimated and can help keep the size of the government small.

An institution of higher learning can never be deemed legal or illegal, as is being done in Pakistan. Private universities should be encouraged to bud without the threat of sanction from any governmental regulatory body. The customer who is the student is smart in enough to judge for him or herself, whether the school he or she is joining has a good accreditation or none, as is the case in the US. Private enterprise should be allowed to flourish at all costs for the good of the country. Both, in the academic institution role as well as, in the role of the accreditation body. Similarly, other regulatory authorities in Pakistan should be non-governmental to ensure transparency, productivity and integrity of the different domains regulated. This would also result in the cost-effectiveness for our government and tax payer money could be well spent in some other area of development where funds are badly needed. The environmental blight of the green number plate cars would also be reduced while at the same time increasing private job opportunities for the populace where salaries and perks would be much more in congruence to the productivity exhibited by these private non-governmental organizations.

Original Link: Pakistan: A Case for Small Government

US accounts for 27.7pc of July-March remittances: Dawn

By Anwar Iqbal

WASHINGTON, April 28: The United States continues to be the largest source of workers’ remittances accounting for 27.7 per cent of the total of almost $4,728.3 million sent by overseas Pakistanis during the first nine months (July-March) of the current fiscal year.A document released by the Pakistan embassy in Washington showed that Pakistanis living in the US sent $1,312.3 million during this period.Pakistanis in Saudi Arabia are second on the list, sending $882 million or 18.6 per cent of total remittances.The UAE is third on the list. Pakistanis living there sent $793.6 million or 16.8 per cent of total remittances.Pakistanis in other Gulf Cooperation Council countries sent $704.2 million or 15 per cent. Those in Britain sent $334.8 million or 7 per cent.Pakistanis in rest of the world contributed $427.1 million or 9 per cent of the total.When oil-rich countries like Saudi Arabia, the UAE and the GCC countries are taken together the total remittances from these nations go up to $2,379.8 million or 50.3 per cent of the total.The oil rich countries along with the US accounted for more than three-fourth of the remittances in the same period.The current calendar year - 2008 has started on an encouraging note. Workers’ remittances amounted to $602.2 million in March – up by 15.7 per cent over the corresponding month of last year as well as the highest ever monthly inflows.The State Bank of Pakistan attributes this surge in remittances to the growing confidence of expatriate Pakistanis on the current and future prospects of the economy.During the first nine months (July-March) of the current fiscal year, workers’ remittances stood at $ 4,728.3 million – up by 20.1 per cent over the same period last year.Pakistan received almost $5.5 billion remittances in the last fiscal year (2006-07) – 19.4 per cent more than the previous year. It has set a target of $6.2 billion for the current fiscal year.An increase of 20.1 per cent in the first nine months of the current fiscal year suggests that the remittances target is most likely to be achieved.Remittances grew by 27 per cent amounting to $1.31 billion from the US during the period under review. Remittances grew by 33.1 per cent and 31 per cent from the UAE and other GCC countries amounting to $793.6 million and $704.2 million, respectively.

Original Link: http://www.dawn.com/2008/04/29/ebr9.htm

China, The World's Factory: From a Producer to a Consumer Economy: American Chronicle

Muhammad Saad Sarwar

They say that making a thing is easy, but selling it is the more difficult part. China not only makes products for the entire world but sells it too. It is no surprise that China’s economy has been growing with a double digit growth rate for the past twenty years or so and shows no sign of abating. Resultantly, China has accumulated a big pile of reserves that would reach a figure of two trillion dollars in a couple of years time. Part of this increase can be attributed to China’s pegging of its currency, the Yuan to the US dollar. United States, which is running a big deficit to its trade with China has been influencing Beijing to ease the tight peg and let its currency float according to the dictates of the market. China has so far been largely reluctant to accede to the US demands and continues to accumulate reserves. China’s huge energy and other raw materials resources demands have made China the new colonial power according to the Economist. It has been building infrastructure all across Africa and most of the world in return for the badly need raw materials to run China’s factories. The local communities in these poor countries have been benefiting from China’s dominance in the world scene as an economic power with hospitals to stadiums being built by the endowments from the People’s Republic of China. Even the stadium where the Cricket World Cup 2007 was held in the Caribbean was built with China’s help. China has a long standing friendship with Pakistan, where it has historically been part of major infrastructural and energy related initiatives. From Karakorum highway to nuclear power plants along with the collaboration in defense fields, China has been part of the major developments in Pakistan. China’s thirst for the warm waters of the Arabian sea have led it to collaborate with Pakistan for building of the Gwadar seaport which would create a corridor for Chinese goods straight from the Arabian sea to China’s frontiers. Even a railroad project through one of the highest terrains in the world is underway which would greatly speed commerce between China and Pakistan and the world, where goods from the Gwadar seaport would reach China in no time. Economists are of the view that China’s economy is in the danger of overheating. Whatever their prerogative, it is about time China looked indoors rather than outside for selling its goods. Developing a local consumer economy would not only increase the standard of living of Chinese people but it would also help China to utilize its monies more effectively for the benefit of its own people. Accumulating trillions of dollars of reserves would be to the detriment of China especially at a time when the US dollar is virtually worthless for China. The world’s factory should finally look towards alleviating the plight of its factory workers rather than sell its products to supposedly rich outsiders (US) who might not be able to pay for the products they purchase due to huge fiscal trade deficits. China should gradually move from a producer economy to a consumer economy where the average Chinese citizen is a beneficiary to the economic boom that China has enjoyed at a macro level.

Original Link: China, The World's Factory: From a Producer to a Consumer Economy: American Chronicle

Pakistan's Currency's Downward Spiral

Muhammad Saad Sarwar

April 26th, 2008

Pakistani rupee has been spiralling downwards against the dollar in the past few weeks touching Rs. 65 to a dollar. This at a time when most currencies in the world, including those of the developing countries are showing a rise in value to the dollar. Some of this decline can be attributed to Pakistan’s swelling trade deficit along with the price hike of oil touching an all time level of $120 to a barrel. This trend is difficult to arrest unless concrete measures are taken to stop the import of exotic food items which the general populace can live without, such as foreign juices, cheese, chocolates etc. Also, the import of items of luxury which do not directly take part in the development of the country should be somewhat limited and kept to an appropriate level per year. Pakistan also very desperately needs to diversify its reserves into a basket of currencies which should include the rising Euro and the British Pound amongst other rising currencies such as the Thai Baht, Turkish Lira and Brazilian Real. Warren Buffet the world’s most famous investor has also been reported to have invested a substantial amount of money in rising currencies such as the Brazilian Real away from the traditional stocks. It is about time Pakistan took the diversification of reserves seriously and pegged the Pakistani rupee to a more stable euro than a vulnerable dollar.

Pakistan's Lucky Cement Revives Overseas Share Sale: Bloomberg

By Farhan Sharif
April 24 (Bloomberg) --

Lucky Cement Ltd., Pakistan's biggest maker of the building material, plans to raise $150 million selling shares overseas for the first time after delaying the offering by six months because of political turmoil.
The offer of global depository receipts will run from April 27 to May 7 before listing on the London Stock Exchange, Muhammad Abid Ganatra, Lucky's company secretary, said by telephone from his Karachi head office.
Construction of offices, homes and infrastructure in the Middle East, India and Afghanistan is driving demand for cement from Pakistan, which sells the cheapest building material in the region. Cement sales, including exports, rose 39 percent in March to a record 3.18 million metric tons, according to industry data.
``The issue will obviously get a positive response from investors,'' said Bilal Hameed, research analyst at JS Global Capital Ltd. in Karachi. ``The company is a leader in production, sales and also plans further expansion.''
A successful offering may help the government revive share sales in National Bank of Pakistan, Habib Bank Ltd and Kot Addu Power Co. The offers were delayed after President Pervez Musharraf imposed emergency rule for six weeks in November.
Lucky Cement, which has climbed 22 percent this year, rose 0.4 percent to 142 rupees at the 2:15 p.m. local time close on the Karachi Stock Exchange.
``We had planed the sale for after September or October last year, but we delayed it due to political instability at that time,'' Ganatra said. ``Now things have changed and we see a tremendous response.''
Delayed Sales
Pakistan's cement exports more than doubled to 5.2 million metric tons in the nine months ended March 31, compared with 2.14 million metric tons a year earlier, according to the Lahore-based All-Pakistan Cement Manufacturers Association.
The funds raised in the overseas share sale will be used to increase production capacity by 2.5 million tons, Lucky Cement said in a statement in July. Output will rise to 9 million tons in three years from 6.55 million tons.
Lucky Cement posted a 20 percent increase in third-quarter profit on April 21, because of higher overseas sales. Net income rose to 665.3 million rupees ($10.4 million) in the three months ended March 31, from 553.7 million rupees a year ago.
The company has the capacity to produce 6.5 million tons of cement a year, according to JS Global. D.G. Khan Cement, the second-biggest cement maker has the capacity to produce 4.2 million tons a year.
To contact the reporter on this story: Farhan Sharif in Karachi, Pakistan at fsharif2@bloomberg.net. Last Updated: April 24, 2008 06:55 EDT

Original Link: http://www.bloomberg.com/apps/news?pid=20601091&sid=aC0fzssI3P3U&refer=india

PCB to launch Pakistani version of IPL: Thaindian

April 25th, 2008

Karachi, Apr 25 (ANI): The Pakistan Cricket Board is planning to launch a new look Twenty20 domestic tournament next year on the lines of the Indian Premier League (IPL).
Just like IPL, the Pakistan Premier League would offer franchises of city-based teams to sponsors and companies.
A foreign news agency quoted PCB officials as saying that this year’s T20 competition, which was delayed until August 10, would be the last time that the popular domestic event would be held on regional basis and without team sponsors.
The Twenty20 national championship would also be expanded to possibly include foreign players, officials said.
The board also planning make it mandatory for every city team to have at least four under-19 players in their playing eleven, The News reported. (ANI)

Original Link: http://www.thaindian.com/newsportal/india-news/pcb-to-launch-pakistani-version-of-ipl_10042010.html

CHOOSING THE FUTURE OF GAS PIPELINES IN SOUTH ASIA: IPI OR TAPI: American Chronicle

Safdar Jafri
April 23, 2008

The upcoming gas-related meetings in Islamabad and Delhi (starting 23rd April 2008) will be crucial for the future of gas delivery to Pakistan and India. The outcome of these meetings will determine the future course of economics, politics, inter-state relationships, economic cooperation and security status of the region as a whole. The stakes are high not just for India and Pakistan, the two roaring but short of energy economies of South Asia but also the economies of the Middle East and Central Asia while indirectly affecting the economies of China, Russia and the US. The first notion of building regional gas pipelines emerged with the proposal of IPI (Iran, Pakistan & India pipeline) in late 1990s. As it involved, India and Pakistan, experts also named it the 'Peace Pipeline' believing that economic interdepenence that this pipeline will create between the two will also ensure a peacful co-existence for the two rival states. However, several years which according to newly emerging proposal by Pakistan may turn into an IPC (Iran, Pakistan & China) pipeline, in case India pulls out of the deal and TAPI (Turkemenistan, Afghanistan, Pakistan & India pipeline). All these pipelines and the political and economical considerations of the states involved create a complex scenario that must be understood to both capture the whole scene as well as make a calculated guess as to which of these projects is more likely to materialize.The IPI project was conceptualized in 1989 when both India and Iran enjoyed relatively better terms with a democratic set up in Pakistan. The proposed project involves a gas pipeline from Assalouyeh in southern Iran through Baluchistan and Sindh provinces of Pakistan to India. The deal however received several set backs over wide ranging issues including the gas price and security of the pipeline from Pakistan. India and Pakistan finally agreed in February 2007 to pay Iran $4.93 per million British thermal units ($4.67/GJ) but some details relating to price ajustment remained open to further negotiation. The more than 1700 miles of pipeline would send 3.2 billion cubi feet per day of Iranian gas to Pakistan and 2.1 billion cubic feet per day to India by 2011. The project is presently expected to cost in the region of 7-8 billion dollars. Originally, Pakistan was to get a totla of 2.1 BCFD and India 3.2 BCFD, making a total gas supply of 5.3 BCFD. However, if India pulls out of the deal, then the pipeline's length would come down to 1600 kms and the gas volume to Pakistan would increase to 3.2 BCFD. The pipeline would initially transport 60 million cubi meters per day of gas, which would be equally shared between India and Pakistan. Since mid-2007 however India has been reluctant to participate in the meetings, which critics allege has been primarily due to the US pressure on India for not becoming a part of the deal to punish and isolate Iran over its nuclear enrichment and political hostilities with the US; the US has instead offered India a civil nuclear deal as a compensatory olive branch. Indian officials however argued that the real reason behind their foot dragging has been their concern for security of the pipeline through Pakistan and its restive province of Baluchistan as well as Iran's insistence that a clause for the revision of gas price every three years be incorporated into the agreement, which both India and Pakistan disagreed with.However, Pakistan's recent declarations that if India is not interested in the project, then they would consider bringing China in and converting it into a IPC (Iran, Pakistan & China) project has sent shockwaves to the Indian government. China has welcomed this proposal but has sought feasibility report, provided India fails to show further interest in the deal. A similar feasibility study carried out in 2005 concluded that such pipeline that would pass through the Karakoram Highway via Gilgit in Northern Pakistan, about 15,000 feet/4500 meter high, would be both a costly and technically challenging project. However, should India drop out of the project, then China would seriously look into making this proposal a reality. China has the necessary expertise, resources and of course, substantial economic interest in having such a gas pipeline entering its roaring and thus, gas-hungry economy. China has also enjoyed excellent relations with both Pakistan and Iran and is currently engaged in a number of development and energy related projects in the two countries. This indeed has caused concern in New Delhi and apparently India is joining the meeting being held in Islamabad on 23rd April with a revised sense of urgency, despite the US pressure. India's demand for gas has been sent soaring in the past few years and is estimated to be around 280 mcmd while domestic production is only around 190 mcmd. Pakistan's situation with regard to gas supply is relatively better as it is meeting more than 50% of its gas requirements from domestic supplies. China will certainly be watching the proceedings of these meetings quite closely. When the three sides, India, Pakistan and Iran, meet on 23rd April 2008 to discuss the pipeline further, they will not only be discussing the issue of signing of the Gas Sales Purchase Agreement (GSPA) which is likly to be signed when Iranian President Mahmoud Ahmadinejad visits Pakistan on 28th April 2008 but there will also be key outstanding issues to be ironed out. These key issues are:
1. Transit Fee: Paksitan is claiming a transit fee of $0.49 per million British thermal nit (mBtu) while India has offered $0.15 mBtu for providing both the right of way and the security of the pipeline. The gap between the demanded fee and the offer is too large to expect an easy arrival on a mutually acceptable transit fee. 2. Gas Price Revision: Iran is adamant that since gas prices are likely to fluctuate and most probably rise in the future, a clause must be incorporated in the agreement that the gas price must be revised every three years. Both India and Pakistan have opposed this proposal. However, it seems that it will be relatively easy to reach a common ground on this point.However, the above two are only the economic considerations connected to this project. There are also political considerations that are equally significant. US is strongly opposed to the IPI project and has instead insisted that both Pakistan and India pursue the TAPI project instead. Indeed, the objective is to isolate Iran and deny it any economic expansion in the region. This is no small consideration for the sort of influence that the US exerts in both Pakistan and India. While it is offering a lucrative civil nuclear deal to India, to Pakistan it continues to offer substantial amount of economic assistance. This brings us to the second project, namely TAPI. TAPI pipeline is planned to start from Daulatabad gasfield in Turkmenistan and end in India via Afghanistan and Pakistan. The project can complete in 2011-12 and will include a 56-inch diameter pipeline with at least 30 billion cubic meters of gas a year. The pipeline will b 2000 kilometers long and will pass through Multan in Pakistan. The project is expected to cost in the region of 6-7 billion dollars and is expected to carry 2 billion cubic feet of gas per day (20 billion cubic meters per year). India alone would be recieving half of the total gas transferred through this proposed pipeline. Although the parties involved, particularly India, did not seem very impressed with the project initially, a number of developments and studies have changed the mindset. These developments and studies indicate that not only TAPI is politically a more viable project, particularly the fact that the US is opposed to IPI and supports TAPI, it is also economically comparable with IPI project. Furthermore, the ADB(Asian Development Bank), which is actively engaged in a number of development programs in both India and Pakistan, has expressed its interest in financing the TAPI project. It has not shown the same interest in the IPI project.Nonetheless, the project is not without is obscales and concerns. Some of the major obstacles of TAPI are: 1. The pipeline passes through Afghanistan where the security situation is far from satisfactory. However, some experts believe that the windfall transit fees that the Afghanis would receive from the implementation of this project will engage their interest in form of jobs and progress and therefore, sabotaging and vandalism is less likely to happen. 2. Although Turkmenistan claims that it has gas reserves of more than 25 trillion cubic feet (708 billion cubic meters), these claims have not been verified and confirmed by any independent sources as yet. It is anticipated that when Turkmenistan will join the meetings in the last week of April 2008, it will come up with independent studies in this regard, confirming the actual size of the gas reserves.An overall review of the situation and the options available in gas pipelines, it seems that far less talked about TAPI project would take lead as compared to IPI that carries greater political price for both India and Pakistan as it involves Iran. Although Iran has insisted in the past, and rightly so, that its gas supplies has ample demand elsewhere, should India and Pakistan decide to call it quits on the project, it is also obvious that Iran is very eager on the project. This eagerness is clear from the recent visits by Iranian officials to Pakistan and the upcoming visit by the Iranian President Mahmoud Ahmadinejad to both Pakistan and India. It certainly wants to break from the pressure that the US is exerting on the regional powers such as Pakistan and India and its eagerness to see this project implemented successfully is a way to show its resisting power. In other words, Iran sees the IPI as both a source of valuable foreign exchange as well as scoring political points against the US and other Western powers that have been working hard to isolate this energy-rich state of the Middle East over its nuclear enrichment policy. However, both Pakistan and India may not show the same level of passion for the IPI project for the reasons illustrated above. They can both have the required levels of gas supplies through the TAPI project and yet reap the benefits of keeping the US happy by not implementing the IPI project. It will therefore be an uphill task for Iran to persuade Pakistan and particularly India to stick to IPI instead of TAPI. This can happen if Pakistan continues to drum the proposal of turning IPI into an IPC project which will keep India engaged in the IPI.The next few days will reveal the winner between the two equally viable gas pipeline projects or at least give a vague idea of what course the future of gas related policies will take in the region.

Original Link: http://www.americanchronicle.com/articles/59469

TAPI gas pipeline pact signed: Daily Times

* Construction of 1,680-kilometre pipeline project to start by 2010
* Gas supply to begin by 2015
* 3.2bn cubic feet of gas to be supplied daily to three recipient countries

By Sajid Chaudhry

ISLAMABAD: An Inter-Governmental Framework Agreement on the Turkmenistan, Afghanistan, Pakistan and India (TAPI) gas pipeline project was signed on ThursdayPrime Minister Yousaf Raza Gillani, while stressing the need for the early implementation of Turkmenistan-Afghanistan-Pakistan (India) (TAPI) gas pipeline project, said that this project would usher in a new era of prosperity and progress of the region, as well as improve relations among the member countries. He was talking at a meeting at Prime Minister’s House.Terming it a vital project for the development and progress of the region, the prime minister assured the government’s full support and co-operation towards the successful completion of the project.Construction: Petroleum ministers from the member countries ratified the framework agreement pledging to begin construction of the proposed $8 billion, 1,680-kilometre pipeline project by 2010, and supply gas by 2015. The signing ceremony was held at the conclusion of the second meeting of the Technical Working Group (TWG) and 10th meeting of the Steering Committee of Ministers from Turkmenistan, Afghanistan, Pakistan and India, following two days of talks.Federal Minister for Petroleum and Natural Resources Khawaja Muhammad Asif said the member countries are pursuing these projects to ensure the region’s future energy needs are met.Gas supply: Asif said that under the agreement some 3.2 billion cubic feet of gas would be supplied daily to the three recipient countries, and after allocating a small share to Afghanistan, Pakistan and India would share remaining gas equally. The minister said the cost of the project, which was put at $3.3 billion in 2002 had now risen to $7.6 billion, but that despite the significant increase in project cost estimates, the project is still considered financially viable. Even if costs rise further the project would remain viable, he added. Indian Petroleum Minister Shri Murli Deora said that India is committed to the TAPI project and was participating in the project to meet growing energy needs. He also announced that remaining bilateral issues such as transit fees on the Iran-Pakistan-India (IPI) gas pipeline project would be addressed in a meeting to be held on Friday.

Original Link: http://www.dailytimes.com.pk/default.asp?page=2008%5C04%5C25%5Cstory_25-4-2008_pg1_4

Pakistan, India close to finalizing accord on gas pipeline from Iran: The Star Online

Friday April 25, 2008 MYT 7:26:42 PM

ISLAMABAD, Pakistan (AP): An official says Pakistan and India are close to finalizing an agreement to build a pipeline to import natural gas from Iran.
The South Asian countries' petroleum ministers concluded the latest round of talks on the three-nation project Friday in Islamabad.
The proposed US$7.5 billion pipeline has been long delayed over Indian concerns about the safety of its portions in Pakistan.
The U.S. has opposed the project because of fears it will weaken efforts to isolate Iran, which it accuses of pursuing a nuclear weapons program.
Pakistan Petroleum Minister Khawaja Mohammed Asif says he expects the agreement to be concluded in a few days or weeks.

Original Link: http://thestar.com.my/news/story.asp?file=/2008/4/25/apworld/20080425192609&sec=apworld

e-filing of ST returns mandatory from July 1: The News

Friday, April 25, 2008

By our correspondent

ISLAMABAD: Federal Board of Revenue Chairman Abdullah Yousuf on Thursday directed the sales tax collectorate to intensify its efforts to maximise revenue collection for meeting the revised target of Rs990 billion. Quarterly Conference of Collectors of Sales Tax & Federal Excise & Collectors (Appeals), held under the chairmanship of the Secretary General, Revenue Division & Chairman FBR has decided to make e-filing of sales tax returns mandatory from July 1, 2008. During the conference, it was informed that total sales tax collection in first nine months of current financial year (July-March) was Rs258.4 billion as compared to Rs218.4 billion in the corresponding period of the last financial year, showing an increase of Rs40 billion. Major sectors which have shown a positive growth as compared to last year were telecom (24.6 per cent), POL (48.9 per cent), natural gas (4.3 per cent), sugar (1.3 per cent), cigarettes (18.4 per cent), services (20.3 per cent), aerated waters/concentrate of beverages (24.9 per cent), iron & steel (112.2 per cent) etc. In federal excise, the total collection from July 2007 to March, 2008 (nine months) was Rs61.8 billion as compared to Rs.47.72 billion in the same period last year, indicating an increase of Rs14.08 billion. Major revenue spinners showing a positive growth were cigarettes (18.94 per cent), natural gas (8 per cent), services (252 per cent) etc. Speaking on the occasion, he emphasized on conducting sectoral research to identify the gap between the revenue potential existing in various sectors of the country and the taxes they were actually paying. He said “We have to narrow down this gap to enhance the sales tax and federal excise collection. To achieve this objective, we need to implement a comprehensive strategy”. Talking on the issue of sales tax refund claims, the chairman stressed the need of removing all the bottlenecks confronting the system to deal with the issue in an effective manner. “We must know what is actually to be paid,” he remarked. He, however, underlined the need of clearly identifying the level & type of the refund problem. All genuine refund claims must be cleared after due verification by the system and all efforts must be directed towards narrowing down the issue, Commenting on automation systems currently operating in various FBR offices, the chairman emphasized that all these systems must be effective, reliable and productive and give the desired results. “Incompleteness of the automated systems creates problems,” Yousuf observed. Revenue impact of new budgetary measures, taken in the last budget, was also reviewed during the conference and termed it satisfactory. Budget proposals for the year 2008-09, measures for expeditious feeding of sales tax returns, recovery of arrears, audit performance of Collectorate adjudication pendency etc. also came under discussion and necessary decisions were taken.

Original Link: e-filing of ST returns mandatory from July 1

Pakistan's Censors Target Youtube: WSJ

How a System Error in Pakistan Shut YouTube

By JANE SPENCER

February 26, 2008

Service on Google Inc.'s YouTube Web site was disrupted around the world for several hours Sunday after a botched effort by the Pakistani government to block access to a video clip critical of Islam.
The story began unfolding Friday when the Pakistan Telecommunications Authority, the nation's telecom regulator, ordered Pakistan's Internet-service providers to immediately block access to a specific YouTube video, which it said was so incendiary it could trigger riots. A senior official at the authority said it also contacted YouTube, requesting that the site remove the video. The authority argued the clip was a violation of YouTube's terms of service, which ban hate speech. YouTube has since removed the clip but says it doesn't comment on reasons for removing specific videos.
According to the senior official at the authority, the clip in question was about a soon-to-be released film made by Dutch politician Geert Wilders, whose outspoken comments against Islam have made him a target of protests in the Muslim world and elsewhere.

• See the order issued by the Pakistan government requesting that the site be blocked. (Adobe Acrobat required)
Mr. Wilders's own Web site says his film portrays the Quran as a fascist book that incites people to murder. Mr. Wilders has previously compared the Quran to Adolf Hitler's "Mein Kampf." On Fox News recently, he said, "Our culture is far better than a retarded Islamic culture." He didn't respond to requests for comment on the YouTube incident.
Even though fewer than 5% of Pakistan's households are connected to the Internet, the government feared the film could spark riots similar to the deadly violence that broke out in Muslim countries after a Danish newspaper published cartoons about the prophet Muhammad in 2006, according to a senior official at the authority. Violent protests have erupted repeatedly in Pakistan in recent months following the assassination of opposition leader Benazir Bhutto. There were also new protests about the cartoons in recent weeks after Danish authorities arrested several people who were allegedly plotting the assassination of the cartoonist behind the drawing.
But in a bizarre twist, the government's efforts to block the clip in Pakistan wound up affecting YouTube users around the world. YouTube spokesman Ricardo Reyes confirmed in an email that YouTube traffic was disrupted world-wide for several hours Sunday. "We have determined that the source of these events was a network in Pakistan," said Mr. Reyes. "We are investigating and working with others in the Internet community to prevent this from happening again."
The problem began when Pakistan Telecommunication Corp. Ltd. began implementing government orders to block the Dutch video on YouTube, according to people familiar with PTCL's network operations. The telecommunications company, Pakistan's largest, controls almost all of the nation's network infrastructure. The instructions sent out across its network were meant to apply only to traffic within Pakistan, a process commonly known as "black holing." But because of errors in the handling of PTCL's routers, the message started being replicated on the Internet world-wide, and other Internet-service providers started having trouble accessing the YouTube site.
The message was communicated around the world via PCCW Ltd., a Hong Kong telecommunications company that inadvertently transmitted the message internationally over its network. PTCL is connected to the global Internet through PCCW's networks, among others. Technical experts say this type of problem is extremely rare -- and is essentially beyond YouTube's control.
"The traffic that was supposed to be going to our address was being rerouted to Pakistan, and subsequently dropping," says Mr. Reyes of YouTube.
PCCW didn't respond to requests for comment.
Shahzad Ahmed, a civil-rights activist who monitors Internet issues for the group Rights for All in Pakistan, suggested that the government of Pervez Musharraf had another motive to block YouTube besides the Geert Wilders film. He said YouTube has been flooded with anti-Musharraf videos in recent weeks, including videos accusing the government of rigging the nation's election, crowds protesting against Musharraf and audio clips of a popular cellphone ring tone in Pakistan featuring the chant "Go Go Musharraf."
"People are putting a lot of material against Musharraf and the government on YouTube, and the government has been trying to find a reason to block this Web site," said Mr. Ahmed. "If this was really about the film and Islam, they would have blocked Wikipedia and tons of other sites containing hate material against Islam." Wikipedia's site, which isn't blocked in Pakistan, reprints the Danish cartoons that triggered the riots.
An official at the telecommunications authority, which regulates Internet censorship, said the accusations were without merit and the government was only trying to block materials related to Mr. Wilders's film because of their potential to trigger unrest. The official added that PTCL doesn't have the technical ability to block individual URLs, just entire Web sites, which led to the total YouTube blockout in Pakistan.
Pakistan intensified its Internet-censorship efforts two years ago, following the cartoon flare-up, and the Supreme Court instituted a ban on all content deemed "blasphemous." But Pakistan's telecom authority has also regularly filtered content determined to be antistate or antimilitary, according to the OpenNet Initiative, a global organization that promotes freedom of information on the Internet.
YouTube reserves the right to remove content from the site that it deems inappropriate, according to the terms of service posted on its site. YouTube's community guidelines state: "We encourage free speech and defend everyone's right to express unpopular points of view....But we don't permit hate speech."
Many of Pakistan's Internet users received notices about the ban on YouTube from their Internet-service providers. "Dear Valued Customer," reads one from Micronet Broadband Ltd. "The Pakistan Telecommunication Authority has directed all ISPs of the country to block access to www.youtube.com for containing blasphemous Web content/movies." The letter asked Internet users to write YouTube.com to urge it to remove the objectionable videos.

--Yaroslav Trofimov contributed to this article

Write to Jane Spencer at jane.spencer@wsj.com

Original Link: Pakistan's Censors Target YouTube

Dutch Islam film website 'shut' : BBC

A website that a Dutch right-wing politician was planning to use to release a film expected to be fiercely critical of Islam has been suspended.
The US hosting service, Network Solutions, said it was investigating complaints that it may have breached guidelines on hate language.
Dutch politician Geert Wilders says the 15-minute film describes Islam as "the enemy of freedom".
The planned release has sparked angry protests in many Muslim countries.
The Dutch government has disassociated itself from Mr Wilders' views, but there are fears the film will spark protests similar to those that followed the publication in Denmark two years ago of cartoons seen as offensive to Muslims.
The film has already been condemned by several Muslim countries, including Iran and Pakistan.
Hate messages
Mr Wilders' film is entitled Fitna, an Arabic word used to describe strife or discord, usually religious.
Mr Wilders wrote a commentary in a Dutch newspaper on Saturday.
"The film is not so much about Muslims as about the Koran and Islam. The Islamic ideology has as its utmost goal the destruction of what is most dear to us, our freedom," he wrote in De Volkskrant.

Geert Wilders has ignored pleas to shelve his project
"Fitna is the last warning for the West. The fight for freedom has only just begun," he said.
He had been using Network Solutions to promote the film.
But on Sunday, Network Solutions said it had received a number of complaints that were under investigation.
It said the site was suspended until it was established whether the content of the site violated Network Solutions' terms of acceptable use.
They include "material that is obscene, defamatory, libellous, unlawful, harassing, abusive... hate propaganda" and "profane, indecent or otherwise objectionable material of any kind or nature".
Mr Wilders has had police protection since Dutch director Theo van Gogh was killed by a radical Islamist in 2004.

Original Link: Dutch Islam film website 'shut'

Meet the World’s Best Performing Stock Market: Pakistan: WSJ

April 1, 2008, 2:00 pm
Posted by Heidi N. Moore

If you were one of the legions of Wall Street Kool-Aid drinking emerging-markets speculators who bought into the promise of BRICs–Brazil, Russia, India and China–you would have lost a lot of money in the market thus far this year.
Instead, the only booming stock markets are those in the most emerging of emerging markets: Pakistan, Peru, and Chile. Those stocks markets have risen, respectively, 9.5%, 7.1%, and 6.6% this year, according to data provided to Deal Journal by FactSet Research Systems. Taiwan, it should be noted, posted a 7.5% rise for the first quarter.
As for the BRICs? Brazil is down 11%, Russia is down 13%, China is down 26% and India is down 40%. Overall, the average for all world markets this year to date is a loss of 11%, which makes the U.S., what, an outperformer with its decline of 9%.
Other risers include Thailand at 3% and Mexico at 1.5%; the biggest decliner after India is Turkey, down 35% since the year started.
There is the possibility that Brazil, Russia, India and China may have peaked because of all the foreign investment that has rushed into them so fast; more likely, they are now such an integrated part of the world economy that they caught the same bug that took down so many other economies. Andy Mukherjee of Bloomberg wrote in this column that a $428 billion stock glut of shares held by the government and strategic investors are coming out of lockup restrictions and will be traded soon in China.
In contrast, Pakistan, Taiwan, Peru and Chile still are flying a bit under the radar when it comes to global investment and deal making. This WSJ quarterly review article today nods at the success of such “frontier” markets.
Of course, one quarter’s success doesn’t an economy make. Investors will be watching to see if these countries, with their illiquid markets and sometimes tenuous political conditions, can grow when the world-wide competition is a bit more intense and not merely float on a rising tide.
Flickr photo courtesy of babasteve.

Permalink Trackback URL: http://blogs.wsj.com/deals/2008/04/01/meet-the-worlds-best-performing-stock-market-pakistan/?mod=WSJBlog/trackback/
Save & Share:

Comments
Report offensive comments to blogsadmin@wsj.com

Source: World's Best Performing Stock Market: Pakistan

Pakistan ranked 89th in Global IT Report: The News

Thursday, April 10, 2008

By Mehtab Haider

ISLAMABAD: The World Economic Forum Global Information Technology Report 2008 has ranked Pakistan at 89th position, out of 127 countries, in terms of preparedness to effectively promote business, improve investment climate and develop infrastructure.The Competitiveness Support Fund (CSF), a partner institute of the World Economic Forum (WEF) in Pakistan, released the report on Wednesday.This year’s ranking shows a five-point decline for Pakistan from last year when it was ranked 84th out of 122 countries.Although telecoms operators are aggressively upgrading their networks’ infrastructure to launch broadband data and multimedia services, Pakistan still ranks low in terms of the cost of broadband and security of Internet servers. Furthermore, the number of days and procedures required to enforce a contract in Pakistan is also a key challenge in achieving a sustainable impact. The decline is a result of a weakened political and regulatory environment and infrastructure environment, which refers to network facilities, network capacity and capabilities.Published for the seventh consecutive year, the Global Information Technology Report is the world’s most comprehensive and authoritative international assessment of the impact of information and communications technologies on the nations’ development and competitiveness.“It is evident that technology is playing a leading role in accelerating economic growth and promoting development,” said CSF Chief Executive Officer Arthur Bayhan.“A coherent government vision on information and communications technologies, coupled with an early focus on education and innovation, is the key to spur network readiness and to lay the foundations for sustainable growth.”The support for CSF is part of the $1.5 billion in aid that the US government is providing, through USAID, to Pakistan over five years to improve economic growth, education, health, governance and earthquake reconstruction.

Source: Pakistan ranked 89th in Global IT Report

Pakistan: Where Billions Vanish : Dawn

By Pervez Hoodbhoy

GEN (retd) Pervez Musharraf, aided by his trusted lieutenant and chairman of the Higher Education Commission, Dr Atta-ur-Rahman, lays claim to a ‘revolutionary programme’ that has reversed the decades-old decline of Pakistan’s universities.The higher education budget shot up from Rs3.9bn in 2001-02 to an astounding Rs33.7bn in 2006-07. But, in fact, much of this has been consumed by futile projects and mega wastage. Fantastically expensive scientific equipment, bought for research, often ends up locked away in campuses.An example: a Pelletron accelerator worth Rs400m was ordered in 2005 with HEC funds. It eventually landed up at Quaid-i-Azam University, and was installed last month by a team of Americans from the National Electrostatics Corporation that flew in from Wisconsin. But now that it is there and fully operational, nobody — including the current director — has the slightest idea of what research to do with it. Its original proponents are curiously lacking in enthusiasm and are quietly seeking to distance themselves from the project.Now for the full story: in his article published in Dawn (June 25, 2005), Dr Atta-ur-Rahman announced the HEC would fund a ‘5MW Tandem Accelerator’ for nuclear physics research with an associated laboratory at Quaid-i-Azam University. It was shocking news. First, nowhere in the world of science is a major project approved without a detailed technical feasibility study, and without full participation of those scientists who would be expected to use it for their research.Second, this machine — whose original form dates back to the 1940s — had long become practically useless for decent nuclear physics research. Whereas it can still be used in certain narrow sub-areas of materials science and biology, to my knowledge there are almost no active researchers in those specialties anywhere in Pakistan.Immediately upon reading Dr Atta-ur-Rahman’s article, I telephoned him. His answer: Dr. Riazuddin, director of the National Centre for Physics, had approved the machine. That was stunning! The soft-spoken and diffident Dr Riazuddin, at 77 years of age, is not only Pakistan’s best nuclear and particle physicist, but also a man of great integrity. How could he have agreed to such folly? Why did he sign a flaky PC-1 proposal put together in less than an afternoon?The answer was to come soon. On Sept 8, 2005, a nation-wide meeting was held in the physics department of Quaid-i-Azam University to look into the possible uses of the Pelletron. But the project’s proponents clearly had something else in mind, and probably not a work plan. They bussed in supporters who filled the auditorium. Most had no clue of what a Pelletron was but they seemed to have had instructions to hoot down all who questioned the need to buy one.And so, when Dr Riazuddin expressed his reservations, and sorrowfully admitted to having signed the PC-1 under pressure, the assembled crowd burst into taunts and jeers. Some demanded that he resign as director. It was depressing to see Pakistan’s best scientist and a decent man thus humiliated.The sad part of this story is not that the machine has arrived, but that in the intervening 30 months the original proponents gave no thought to making use of it or to assembling a group of scientists who could be persuaded to do research using the Pelletron. Still sadder, a second Pelletron was purchased, again with HEC money, for Government College University Lahore. No one can fathom what to do with it either.The equipment fetish can be followed all the way to the much-advertised HEJ Institute for Chemistry. HEJ consumes the lion’s share of research funding in Pakistan today and boasts of the finest and most expensive equipment. For example, even good chemistry departments in the US rarely have more than one or two NMR spectrometers but the HEJ Institute has 12. Well, why not, if that is the price of excellence? Aren’t the 3,000+ research papers proof of public money well spent?The answer is, no. There is little evidence to support HEJ’s claim that it has strongly impacted the Pakistani pharmaceutical industry. Readers may have more luck than I did in searching the otherwise elaborate HEJ website for its role in discovering new drugs or processes. But without this, all else is hot air. Only one international patent, registered in the UK and Germany, is listed. Two processes are mentioned as submitted for a US patent. This is not a high record for an institution that has been in existence for over 40 years and claims to be world-class. A good US or European applied science university department typically files several patents every year.As for the thousands of HEJ research papers, the question is how many of these really matter? A paper is considered important by other scientists only when it contains new ideas or facts. Significant papers are cited frequently in professional journals. But an overwhelming number of HEJ publications, which are largely based upon routine aspects of natural products chemistry, have zero or few citations. The reader may find citation counts by accessing the free database scholar.google.com, or other more comprehensive databases.My point is not to denigrate the HEJ, or other academic research in Pakistan, but to make the case that such research is consuming a disproportionate amount of resources at the cost of a desperately impoverished educational system. The real problem is that Pakistani students in government schools, colleges, and universities — as well as their teachers — are far below internationally acceptable levels in terms of basic subject understanding.Current salaries militate against improvement. As a result of Dr Atta’s determined intervention, a professor at a government university can earn up to Rs325,000 per month but a government school teacher has a maximum salary of less than Rs10,000. This is highly unwise. Similarly, funds-starved government colleges and schools lack basic infrastructure such as laboratories and libraries but most government universities are awash in so much money that they do not know what to do with it. At QAU, for example, so many air-conditioners have been purchased with HEC research funds that the electricity bill has shot up by 50 times over the last six years.A balance is desperately needed. Instead of over-funding universities and research, we need to focus resources on creating good quality schools and colleges. We need to encourage creative and skilled people to become school and college teachers, and for this we need to pay them well. We need teachers who can educate young people into becoming good citizens and with skills valued in the economy, and who can train the few going on to higher education.The winds of change are blowing across the country. The Musharraf years are over. It is now time for parliament to carry out a full and complete public inquiry into the irresponsible and crazy policies that have hitherto been the hallmark of decision-making. Finally, there is a chance to reset priorities and use resources for a comprehensive reform of our education system.

nThe author is chairman of the physics department at Quaid-i-Azam University.

Source: Pakistan: Where Billions Vanish