Loud Thinking

Archive for the ‘Pakistan’ Category

Dear Mr. Ishaq Dar Sahab,

AoA.

Sir,

Hope you remember that I submitted few proposals titled “How to control prices in the holy month of Ramzan” before the advent of Ramzan on 25 June, 2014.

One of these suggestions was to jail the over charging shopkeepers and hoarders for 30 days without bail.

Kindly peruse the link for the detailed reading of my suggestions at :-https://www.snayyar.com/loud-thinking-june-25-2014-at-1202pm.html#sthash.7rMPymj3.dpbs

However, just for your information, today the TOI has reported that Indian government has decided to make the hoarding, a non-bailable offence.

In this regard, the detailed news may be perused as below.

Hoarding to be non-bailable offence; fund to stabilize prices
PTI | Jul 4, 2014, 07.46 PM IST

Link:- http://timesofindia.indiatimes.com/homemaker/Hoarding/articleshow/37785105.cms

Best regards,

Syed Nayyar Uddin Ahmad

Lahore.

Sent from my iPad3 4G LTE

Look Mr. Najam Sethi, what the BCCI Secretary Sanjay Patel has said about your so called “MOU turned into binding agreement straightaway”.

Wisden India quoted Secretary Board of Control for Cricket in India (BCCI) Sanjay Patel, as saying on Wednesday “the deals with Pakistan were not set in stone”.

Perhaps the genius PCB boss may be knowing that:

“You can fool some of the people for some of the time. You can also fool some of the people all the time, but you can’t fool all the people, all the time”.

Mian Muhammad Nawaz Sharif must read this editorial titled “IMF’s debt trap” published today, by the daily “The Frontier Post”.

However, I would have titled it “IMF’s economic DEATH trap”.

Moreover, Pakistan needs immediate appointment of a VISIONARY finance minister, who can take us out of the death trap of the ultra high foreign and local debts.

Pakistan call ill afford the running of its economy, just with loans and every now and then increasing tax and utility rates, ONLY for those honest citizens, who pay very timely, all the taxes and the utility bills. This is the most CALLOUS way of dealing with the economic woes of a country, that too by a DEMOCRATIC government.

The previous 5 years PPP rule and the last one years PMLN rule, has ruined the economic foundations of Pakistan; by running the finances of the country with huge domestic and foreign loans, without any considerations of the future repercussions, on the national economy and ultimately on the the sovereignty of the country.

Now, we have reached a stage where in the current fiscal year (2014-15), out of the total Budget of about 4 trillion PKR, we have kept an amount of 1.3 trillion PKR (about 1/3rd of the total budget of 4 trillion PKR) for the debt servicing ALONE, which is almost double the amount of our defence spendings, budgeted for the current fiscal year.

A R T I C L E

IMF’s debt trap

Posted on 2014-07-01 04:32:09

Dr. Murtaza Mughal, President of the Pakistan Economy Watch (PEW) has said that policy makers are focused on reducing deficit and privatization of prime assets as dictated by the IMF. By doing so they have pushed the country virtually in IMF’s trap. Transferring ownership of our national assets may result in growing poverty; in unemployment because of retrenchment by the new owners, and eroded exchange rates as foreign investors would transfer profits overseas. In addition, international financial institutions want to impose global economic order, a plan hidden behind attractive words like privatization, deregulation and downsizing etc.

Federal Finance Minister Ishaq Dar boasts about foreign investors’ confidence in the government, and claims to have commitment of $32 billion Chinese investment, which is in fact a loan; $11 billion loan has been approved by the World Bank, $6.64 billion by the IMF and $2 billion has been acquired through the launch of Eurobonds.

IMF touts that it helps recover the economies that are in dire straits, but in fact it has the record of multiplying the problems of debtor countries. Its conditions of withdrawing subsidies, devaluation of currency and privatization of prime national assets adversely impact the people and the state.

Pakistan is already in the grip of debt to the extent of $65 billion, and despite the rescheduling of the debt or taking new loans to pay back the old loans, one day these loans have to be paid. If this trend continues, Pakistan would find itself in the vicious circle; and would continue to take more loans to pay back the old loans; and also loans for mega projects like Dassu Project, which means phenomenal increase in debt servicing and as a result increase in fiscal deficit.

To avert the economic disaster, the government must show zero-tolerance to corruption, tax evasion, wastages and mismanagement in public sector enterprises. It should learn to live within its means and reduce the non-development expenditure by curtailing perks and privileges of cabinet members and parliamentarians.

If axe falls on development expenditure, Pakistan would not be able to build infrastructure for further development and industrialization to generate employment opportunities.

On their part, the trade and industry should resort to aggressive and innovative marketing policies; look for non-traditional markets; and try to increase the exports of value-added products to reduce the trade deficit.

Unfortunately, the IMF does not give suggestions or advices that really matter.

For example, there seems to be no pressure to immediately bring agriculture sector into the tax loop perhaps because majority of the parliamentarians belong to landed aristocracy.

Some industrialists have also gone into agricultural sector to take advantage of exemption on agricultural income, and use it to convert black money into white money.

It means that the IMF would not like to annoy the ruling elite. It has to be mentioned that agriculture contributes about 23 per cent to the GDP, but does not contribute to the exchequer in the form of taxes even to the extent of 5 per cent.

As regards trade deficit i.e. excess of imports over exports, our industrialists and exporters are handicapped because of higher input costs like electricity and gas charges.

It is better for the government to rely on homegrown policies instead of following IMF policies.

PML-N government has been claiming that it has competent, experienced and honest managers they why it does not put them as heads of the public sector enterprises to turn into profitable entities.

In many countries, the utilities are being run successfully by the state; why it cannot be done in Pakistan.

Dear Mr. Prime Minister,

AoA.

Each and every word of the below mentioned article titled New “axis of reform” by Captain Anwar Shah is worth reading for you and all your policy advisors.

Best Regards,

Syed Nayyar Uddin Ahmad

New ‘axix of reform’

June 29, 2014
CAPTAIN ANWAR SHAH

Asia’s, three economies are suddenly experiencing a burst of change that could alter the growth trajectory for the worlds’ most populous region. We are going to see the birth of a new “axix of reform”, one which could revive the global economy. The month of May recorded Indian export of 28 billion USD compared to 24 billion USD last year and imports were 39 billion USD, reducing the trade deficit. Indian Ports of Kandla and Cochin handled 70 million ton each imp/Exp against our total 70 million ton Imp/Exp from our two ports.

China’s XI Jinping, India’s Narendar Modi and Japan’s Shinze Abe are simultaneously sketching out vague – but – promising plans to revitalise their rigid economics. It is not a co-ordinated process – more of a serendipitous coincidence, driven by a dire need for change in all three nations. Still, the possibilities are enticing. A truly dynamic and innovative Asia would raise living standards for billions and fresh hope for a world wondering where all its big growth engines went. India and China trade is 80 billion USD, likely to triple, where as our trade with China hinges at 6 billion USD, tilted in favour of China. China is said to be helping India to explore 80 billion tons of untapped mineral resources. Bangladesh too has signed agreement with China to develop deep water port near Cox Bazar to boost their economy. Interestingly Bangladesh has 21 billion USD reserves..

With Asia’s giants forming a new group from “BRICS” to “CIJ”, they are in grip of reformers, prospects have certainly improved. Not only India and China now led by men that have spelled out so ambitious reform agenda, removing red tapes and firing slow civil servant golfers, but so in Japan, with abenomics ticking away background too “whilst the challenges and macro structure of China and India are different, if both leaderships deliver a long awaited reforms, the resurrection of the “Chindia” reconstruct may provide a surprisingly compelling boost to the emerging markets story, at just the point when many in the markets have dismissed the opportunity. The South Korean Leadership is committed to wholesale turn around, whilst we remain in deep slumber sleeping on pillow of “MoU” only.

If leaders may deliver by combined efforts, it may offer a tremendous boost to world economy. The need for change is broadly accepted across their populace excluding us.

It will also offer a striking counterpart to the USA and Europe, where reform fatigue rules debate from Washington to Brussels. Now West will learn from Asia and its growth reality China is bent upon holding 7.5 percent GDP Growth, whereas Modi may face tough resistance from civil servants who are slow and said to be corrupt and not receptive to innovation or change axis of reform is worth watching, as it may become growth driver of the world economy.

The Middle East is in serious turmoil as Iraq is heading for new demography as Libya, Syria etc. Capacity in the seaports and airports in the Middle East is growing faster than regional trade, potentially jeopardising the viability of billions of dollars worth of new investment in transportation infrastructure. Gulf countries investment in logistics based on logic of carrying out niche as trading posts between Africa and Asia. Dubai Jebel Ali Port accounts half of the regions seaport capacity, but many other gulf countries are copying Dubai template thus capacity will increase from 40 million TEU to 100 million TEUs incoming decade, the trade is not growing by 10% to fill the increased capacity at gulf ports. The capacity planning in Middle East is dysfunctional, not co-ordinated and mismanaged. The risk of over-capacity in Middle East is so imminent, as deep water port of Colombo built and operated by China Merchants will induce most of the Indian trade from Middle Eastern hubs. The over-capacity in Middle East gulf of states is at serious risk as investment in ports have long gestation period, and if remains unutilised, the Gulf States like Koreans may use the new capacities for entertainment not for logistics.

The new deep sea port of Colombo is able to berth and service the new mega size Class-E and Class EEE container ships with carrying capacity of 13000 to 18000 TEUS. The growth in Asia will support movement of containers on super ships for the sake of economy of scale and Colombo being on main East and West route, all mother ships will call, thus feedering to Indian and other regional ports. The Colombo Port handles 70 percent transshipment cargo and handles only 30 percent captive cargo and presently handling 7 million plus TEU likely to attain 10 million. Indians are worried due to feedering cost from Colombo thus may opt for barges being pushed by tugs for feedering to shallow draught ports on Indian coast thus copying the Mississippi river as pattern of pushing barges, cutting the cost.

Sadly Pakistan’s ports only handle captive cargo except some transit cargo to Afghanistan. The delayed Pakistan deep sea water port may be functional by 2015 due to lacklustre attitude of Karachi port management, it was conceived in 2006 to be completed by 2009, but now it may be partly functional by 2015. We are planning energy by using coal, the only Pakistan bulk terminal of marine services group, which too is delayed may handle 5 million tons, against our prospective requirement of 15/20 million tons of coal. Gadani Port is still to take off to cater our coal handling. Sadly despite handing over Gwadar to new concessionaire, nothing is visible on the ground, even no road link via Surab to National highway. We see many inaugurations but sadly ground reality is different. Why can’t we make efforts to induce land-locked Central Asian State cargo to our ports and become hub of land-locked countries? I feel our planners may seriously ponder on transshipment cargo rather captive cargo only. PNSC is the only silver lining in our maritime industry making profit being in public sector. Planning Commission is well advised to take serious note of growth in Asia and work seriously to get a slice out of it, so that our youth may find new avenues as population continuous to grow. Let us target min 6 percent GDP growth and pay full attention to our Maritime Sector for accelerating and giving a kick start to our economy. It saddens me, when I read growth studies in Asia, excluding Pakistan.

(The writer is adviser to Karachi Chamber of Commerce and Industry)

Copyright Business Recorder, 2014

If I was the PM Pakistan…would have invited the entire core leadership of the PTI to a Iftaar meeting, to find the ways and means to resolve the political log jam in the country….not for my personal continuation of the rule…but for the sake of Pakistan….to avoid any turmoil or further bloodshed in the country.

Leadership has to be proactive..! additionally, national leadership of a NUCLEAR power nation has to be ABSOLUTELY selfless, very sharp and full of wisdom, which MUST be able to gaze in the future.

Mian Nawaz Sharif what are YOU doing for your subjects?

An eye opening TOI news published today, about the Indian PM that how much he is worried about his people’s welfare..!

Set up special courts to try hoarders, PM Narendra Modi tells states

NEW DELHI: Prime minister Narendra Modi on Thursday urged states to set up special courts for speedy trial of hoarders and black-marketers and stressed on the need for the Centre and states to launch coordinated efforts to deal with any possible adverse impact of weak monsoon rain.

The government has taken several steps in the past few weeks to tame inflation and Modi brainstormed with senior ministers, officials and weather office experts to review the progress of the monsoon and steps taken to contain price pressures.

Taming inflation has been identified as a top priority by the NDA government and it is keen to ensure that it does not remain a policy headache during its term. Recent data had shown a spike in inflation but the government has moved in swiftly to ensure it is contained.

Officials from the India Meteorological Department (IMD) apprised the PM of the monsoon situation. “They said though the monsoon has been delayed, rainfall is likely to improve substantially in the months of July and August,” said a statement from the prime minister’s office.

READ ALSO: Monsoon rains to improve after July 7, govt says

The ministry of Agriculture has prepared a contingency plan for more than 500 districts to deal with patchy rains. “Modi stressed on the need for both Centre and States to proactively mount a coordinated effort in implementing the advance action plan for the monsoon, with districts, rather than states, being the unit of planning,” the statement said.

The PM emphasized on ensuring adequate power and seed availability for the agricultural sector, and directed that NREGA be used to generate rural employment, if necessary.

The Modi administration has called for strict action against hoarders and black marketers. Hoarding has been identified as key factor for the sharp uptick in prices. States have a tardy record of arresting and prosecuting hoarders and the conviction rate is dismal. Government data showed that while 5,132 people were arrested for such acts in 2013 up to October, only 2,468 were prosecuted and the number of convicted was 966.

Besides sending a strong message to hoarders, the government has also taken a raft of measures to ensure availability of food items across the country. The Modi government imposed a minimum export price (MEP) of Rs 2,700 ($ 450) per tonne for potato on Thursday to keep a check on exports. Annually, around 1-2 lakh tonnes of potatoes are exported from the country.

Food and consumer affairs minister Ram Vilas Paswan reiterated the government’s resolve to fight against hoarders. “It’s only because of speculation prices are rising despite we have huge food stock, potato and onion,” he added.

Official said the government will ensure stable supplies of onions and potatoes in the market.

“This will ensure that there is enough availability of the two main kitchen items in the domestic market. As such Delhi has been flooded with onion and prices have stabilized. We have to keep a close watch on onions in July when the supply at mandis reduces significantly,” consumer affairs secretary Keshav Desiraju said.

Within hours after Modi held a detailed review of the monsoon and food inflation progress, the Cabinet secretary Ajit Seth decided to hold a review meeting of Committee of Secretaries on Friday on the government’s preparedness in case of a deficient monsoon.

The government is also stepping up its vigil with the Cabinet secretary reviewing the price and monsoon situation every fortnight against the earlier practice of a monthly meeting. While Central Water Commission has asked states to prepare their crop plan keeping in mind the water stored, the drinking water and sanitation ministry has asked states to submit detailed contingency plans including identifying new bore wells and open wells, high yielding agricultural bore wells for hiring and possibility of transporting water through special trains to areas which may be affected due to scanty rains.

States have also been asked to prepare adequate plans with route maps to supply safe drinking water through tankers for vulnerable villages. The PM also reviewed the position of water reservoirs and fodder stock. He urged that maximum possible use be made of the existing water resources, and best practices in rainwater harvesting.

Unbelievable Unbelievable Unbelievable..!

Can someone explain the reason for the 17 June massacre of Model Town Lahore, because the excuse given by the provincial PMLN government and the Police was that they wanted to remove the barriers, which incidentally have now been placed again.

So, it seems that the innocent peoples genocide was just for the sake of
fun???

میں کس کے ہاھۃ پے اپنا لہو تلاش کروں

How to control prices in the holy month of Ramzan?

All the provincial and district governments must ensure that the government approved rate lists of each and every item, must be BOLDLY and PROMINENTLY displayed at each and every shop, Khokha and Rehri; and must also be advertised daily in the media.

Although, this will NOT completely eliminate the overcharging and extra profiteering by the sellers; yet, it will be a big deterrent and relief in over charging and to a large extent, will also be very effective against the hoarders, as well. Basically, the hoarders are responsible for the Ramzan price hikes.

Moreover, telephone numbers of the concerned officials of the district administration, should also be printed on the price lists, in bold font, for the public to register their complaints for swift action, against the sellers who are found to be overcharging, during the Holy month of Ramzan.

Secondly, a public volunteers team should also be formed, to assist the local administration, in enforcing sale of items on government’s fixed rates.

Thirdly, to instil fear of law into the hearts of the overcharging persons, such unscrupulous persons, must immediately be jailed (without bail) for 30 days, after same day court trials.

All MNA’s, MPA’s, retired government servants of grade 20 and above and ALL serving government servants of grade 17 and above, should be vested with the powers of the 1st Class magistrate to speed up the trial process, in this regard.

Good news for the peaceful citizens of Pakistan…

TV Channel reports that IG Punjab Police has said that in future no firing on citizens by the Police..!

Salute to Mr. Mushtaq Ahmed Sukhera IG Punjab Police and shame on the politicians who use Police Force for their ulterior motives.

Dear Mr. Prime Minister of Pakistan.

Sir,

The matter raised by Mr. Kalim A. Chishtie, in his below mentioned letter, published by the Daily Dawn of today, needs your personal intervention, as it adversely affects the senior citizens and widows etc.

If we compare the previous PPP rule with your one years performance, one thing is strikingly clear that PPP at least had a soft corner for the low income group, while your government seems completely oblivious of the problems, being faced by the middle class and the lower middle class citizens.

I will request you to just have a look at the utility bills of the above mentioned categories of people, to have an idea how the same has increased during your tenure, compared with the last PPP government.

Actually, your government having failed to recover the utility bills from the high and mighty people, who never pay their utility charges, has decided to punish the millions of honest bill payers, by increasing the rates of all the utility services, with a vengeance.

Now, this is a novel way of punishing the honest people, who never indulge in the theft of electricity, gas and water.

People still fondly remember that it was the last PPP government, which enhanced the upper limit of the EOBI pension to Rs. 3,600/PM.

Let me assure you that if the Rs.30,00,000/- or PKR 3 million upper limit is reasonably enhanced, your government can easily generate much more huge amount of funds, than you will get the revenue, from the tax collected on the Behbood profit payments. But, for this suggestion to be implemented, you will have to take a (firm) stand before the mighty bankers lobby, who will oppose this enhancement of limit, tooth and nail.

Submitted for your favourable consideration please.

Yours sincerely,

Syed Nayyar Uddin Ahmad
Lahore.

Behbood scheme

By From the Dawn Newspaper
Updated about 2 hours ago

Comment Email Print

IT is interesting to note that out of the blue the present government has come up with a novel idea of taxing the profits of the Behbood scheme. Does the government wish that senior citizens and widows who are meeting their expenses through profits derived from the scheme should face more difficulty in managing their daily expenditures in this age of inflation?

Kalim A. Chishtie
Karachi

Published in Dawn, June 18th, 2014