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our economy is in a really sorry state. all tihs gov is doin is takin loans from anywhere possible.
karachi is facin massive electricity shortage. water crisis is in the making. stock market is down. investment is down.
 
Its a temp phase mate, don't be too pessimistic. We've seen worse than this...I'm sure 2010 will be a better year for all of us.
 
Sunday, June 28, 2009

KARACHI: Country Director of Nokia for Pakistan and Afghanistan, Imran Khalid Mahmood has said that Pakistan is amongst the top priority countries for Nokia as it is now very much on the global map and up to the mark on everything that is happening in the world.

“Therefore, in Pakistan, the price band for mobile phones may be slightly smaller but there are people who have both the money and the desire for expensive gadgets and that is what we are targeting,” he said.

Head of Go-to-Market NSeries Sales for the Middle East and Africa, Henri Mattila stated that present era is all about who has the information first. Therefore nowadays people are spending a lot of time online and since they are globally connected at one time, information is at their fingertips.

The Nokia officials were exclusively talking to The News. Mahmood said that they based their strategies on consumer needs and as marketing strategies were an evolutionary process, Nokia also constantly evolved their techniques based on what the consumers were focusing on.

He believed that the new technologically advanced and expensive products were not creating an undesirable demand in the society but were rather catering to already existent needs of the consumers. “If we don’t do it, somebody else will,” he further expressed.

Mahmood said at Nokia they ensured that their products were meaningful and had context rather than being just another expensive product in the market. He said that all their staff was trained in advance to provide after-sales services and customer care.

Interestingly, both Mattila and Mahmood labelled Pakistani consumers as image seekers or style followers. Mattila elaborated that deep inside all consumers were the same with the same desires which he termed as being: “they want the latest technology, they want to have it first and that they want to show it off to friends and relatives.”

He said that yet consumers in Middle East and Africa are very conscious about the look of the mobile than the features that were available in it. He voiced that in Pakistan, consumers were more into colours being vibrant due to the bright traditional cultures here, while he added that in Europe, consumers preferred more conservative colours such as black and white.

Mahmood also put in that since Pakistan was an emerging market, bulk of the consumers segment were those who purchased low cost mobile phones whereas there was also a significant segment that did nothing except make or receive calls.

“Pakistan is following the trend of any emerging country but this time with the launch of N97, Pakistan is ahead of more developed countries,” he added. The country director also spoke about the pirated versions of their mobile phones that cheated the consumers of their money.

“I feel very passionate and hurt when loyal customers get deceived which also damages the company’s name,” he said. “Because the government has imposed taxes that make no sense, consumers are paying the price, for this country is infested with the grey market,” he added.

Mahmood said that they did not have the mechanism to stop piracy or stop the retailer from bringing in fake products and selling them into the market. He stressed that all their manufacturing units follow the same standards and quality checks all over the world.

Nevertheless, he informed that to identify an original cell phone, mobile dealers have a number displayed in their stores which reads ‘SMS warranty check’. A consumer can send in the mobile’s IMEI number to the stated SMS number which would reply back saying that it had original warranty in Pakistan, which in turn help the consumer to identify an authentic mobile phone.

Henri Mattila said that Pakistan needs to reduce duties on cell phones to encourage original products to enter the country. He also said that one way to identify a fake was if the product was being sold for half the price, then consumers should be wary of it.

To a question regarding Nokia’s investments into the country, Mahmood stated that Pakistan was a very important portfolio for the multinational company as with a significant population, it made a lucrative consumer market.

However, Nokia already had nine plants all over the world that were fulfilling their mobile phones demand in the market.

Mahmood said they had seven care centres, a level-3 repair factory in Lahore and 9,200 plus Nokia sales points in Pakistan. Other than these, they employed a large number of manpower and invested into training them.
 
Sunday, June 28, 2009

MIRPUR (AJK): Work on the first private sector 84-megawatt hydroelectric project located 7.5 km downstream of the existing Mangla Dam in Mirpur, Azad Kashmir will start in the next couple of weeks, Khalid Faizi, Chief Executive Laraib Energy said on Saturday.

The local and international financial institutions have given approval to Laraib Energy Limited and Hub Power Company to start the construction on the low head, run-of-the-river power project located some 120 km from Islamabad.

When contacted, the spokesperson for the company confirmed that the Asian Development Bank (ADB) has approved $37.3 million, the Islamic Development Bank (IDB) has approved a matching amount, French Development Agency (FDA) has agreed to provide $26 million and the National Bank of Pakistan and Habib Bank Limited have approved Rs3.5 billion to jointly fund this project.

Additionally, the World Bank’s International Financial Corporation (IFC) has too agreed to provide $35 million but the final decision is yet to be taken.

The New Bong Escape project, to be completed under Build-Own-Operate-Transfer (BOOT), is among the first mega projects initiated in the private sector. Besides, for the first time the international lenders are financing a private project in Azad Kashmir.

It is expected that project will be completed in next three years, with an expenditure of around Rs25 billion. While the project will contribute to increased power availability, it will also generate a sizeable number of employment opportunities directly and indirectly.
 
Sunday, June 28, 2009

KARACHI: Rice exports have crossed the mark of $2 billion for the second consecutive year despite international economic recession.

Rice Exporters Association of Pakistan Chairman Abdul Rahim Janoo stated this in a meeting with Karachi Port Trust Chairperson Nasreen Haque. He said it was only the second time in the history of Pakistan that rice exports had reached the milestone of $2 billion.

Out of the total quantity, basmati exports were 909,709 tons valuing around $1 billion while non-basmati exports crossed $1 billion.

He said Pakistan produced a bumper crop of 6.2 million tons, of which 3.5 million tons were available for exports and the rest would go to local markets. He thanked the KPT chairperson for their support to REAP in cargo handling.

Nasreen Haque said they were working on improvement of infrastructure and repairing some berths which would be completed this year.

She informed the REAP chairman the KPT handled 38.5 million tons of cargo this fiscal year against 37.3 million tons last year. She said they were working on a wind farm project which would generate 50 megawatts of power.
 

TRIESTE: Foreign ministers from Group of Eight (G8) countries said on Saturday they supported the possibility of liberalising trade between the European Union (EU) and Pakistan.

The possibility was raised earlier this month at a summit between the EU and Pakistan. The G8 held talks on stabilisation in Afghanistan and Pakistan that were extended to officials from the two countries and other regional players. The participants said in a statement on Saturday that they “welcomed the prospects of trade liberalisation”.

The statement said increased trade was crucial for the region’s development, and called for stronger ties between countries in the area. Foreign Minister Shah Mehmood Qureshi said talks focussed on “the development of economic infrastructure and enhanced regional connectivity – open trade corridors, improving rail and road links”.

“We were discussing how important it is for these people [internally displaced persons] to return home as soon as possible,” Qureshi told AFP.

“It’s a huge challenge. Obviously, we need more help ... if we win on the military front and we lose hearts and minds, then it will come to naught,” he said.

The foreign ministers of Afghanistan and Pakistan joined their counterparts from Central Asia, officials from aid organisations and the G8, but key player Iran decided to stay away.

US envoy for Afghanistan and Pakistan Richard Holbrooke joined the talks that also touched on countering drug trafficking by strengthening border security.
 

KARACHI: The Sindh Assembly passed the Rs 327 billion provincial budget, for the new fiscal year, 2009-10 unanimously on Saturday while also approving the Finance Bill 2009 and rejecting all cut motions moved by the opposition members.

The opposition members had submitted about 1,244 cut motions, seeking reduction in 43 demands of the government out of a total 59. Sindh Chief Minister Qaim Ali Shah tabled the house’s approval. Speaking on the occasion, the chief minister said that the Finance Bill was aimed at rationalising certain duties and taxes for which it was expedient to amend relevant laws. He congratulated both the opposition and treasury benches on granting the budget. He also congratulated President Asif Ali Zardari, MQM chief Altaf Hussain, PML-F cheif Pir Pagaro, NPP cheif Ghulam Mustafa Jatoi, PML-Q leader Arbab Ghulam Rahim and ANP chief Asfandyar Wali for their cooperation in running the house smoothly and helping in serving the people of Sindh.

The chief minister praised Sindh Assembly Speaker Nisar Ahmed Khuhro for conducting the budget session smoothly while allowing the 136 members to express their views on the budget. He said that he welcomed the opposition for keeping an eye on the government’s performance, adding that he will always appreciate positive criticism from the opposition.

Senior Minister Pir Mazhar ul Haq, Law Minister Ayaz Soomro, Syed Sardar Ahmed, NPP member Masroor Jatoi and opposition member Abdur Razzaque Rahimoon congratulated the house for passing the budget in a cordial atmosphere.

Earlier, speaking in favour of his cut motions, opposition leader Jam Madad Ali said that their cut motions were aimed at curtailing the operating expenditure, purchase of vehicles, furniture and other unnecessary things, adding that the money should be spent on welfare oriented schemes for masses.

Opposition member Shaharyar Mehar said that huge amounts have been allocated for the health department, so that it can purchase new furniture and meet other official expenditures, which he termed as unjustified and demanded a decrease, adding that the money should be spent on the purchase of medicine. Rahimoon said, “We demand a cut in the spending of officials and not on public welfare schemes. Huge sums have been allocated for the lavishness of bureaucracy. This amount should be utilised on other welfare-oriented projects.” Nusrat Abbasi said that she had submitted cut motions against the expenditure of the secretariat, adding, “Since it was a deficit budget, money should be spent on projects that benefit people.”

Sindh assembly employees protest: Earlier, before the budget session proceedings began, employees of the provincial assembly staged a protest demonstration against the suspension of the self-hiring facility to them.

They staged a protest by sitting on the stairways and blocking the passages leading towards the assembly hall as well as the speaker’s office. Later, Khuhro along with Provincial Minister Dr Zulfiqar Mirza assured the protesting staff that they would be given the facility. According to the Sindh Assembly employees, the Services and General Administration Department had suspended the self-hiring facility for the past nine months although they had been availing it for the last fourteen years. They added that the government was providing this facility to the staff of the other three provincial assemblies as well as the National Assembly and Senate continuously.
 

KARACHI (June 29 2009): Increased budgetary borrowing (by Rs 19 billion) and improved net foreign assets of the banking system (up Rs 16 billion) along with a marginal increase in borrowing for commodity operations (Rs 3 billion) pushed up money supply during the week by Rs 24 billion after netting out the moderating effect of OINs reflecting an increase in other liabilities amounting to some Rs 14 billion.

Overall incremental money supply during FY09 to June 13 thus stood higher at Rs 338 billion, or 7.21 percent, represented by currency in circulation amounting to Rs 220 billion and deposit money amounting to Rs 118 billion. The increase during the week occurred entirely in deposit money, represented by an increase in demand and time deposits. No significant changes were observed in credit utilisation by the corporate sector including both the private sector and the PSEs.

All in all, net domestic assets (NDA) of the banking system, represented by public and private sectors indebtedness to the system's constituents, increased during the week by over Rs 8.5 billion to Rs 536.5 billion. Net foreign assets (NFA) of the banking system, in the meanwhile, improved by Rs 15.7 billion, reflecting lower depletion of foreign assets, which now stood reduced to Rs 198 billion.

The improvement in NFA was in line with the improvement in liquid foreign reserves of the country which surged from $11.515 billion on June 6 to over $11.643 billion on June 13. The surge over the week was shared by an increase of about $101 million in liquid reserves held by the central bank and an increase of about $27 million in liquid reserves held by the scheduled banks.

Among important developments during the week, government borrowing increased by Rs 22 billion to over Rs 600 billion as on June 13, 2009.

Within it, budgetary borrowing increased by Rs 19 billion to Rs 402 billion while borrowing for commodity operations by various government agencies and departments, which is principally for wheat procurement at present, increased by Rs 3 billion to over Rs 200 billion. Break-up of budgetary borrowing showed that almost entire borrowing during the week was made from the State Bank of Pakistan while borrowing from scheduled (mainly commercial) banks rose only by a negligible amount. Government's rising indebtedness to the central bank may pose serious problem for the government when it will come to meet the IMF targets of overall budgetary borrowing and, within it, the downward looking target of borrowing from the central bank. Maybe, the government has to go farther into the already aggressive borrowing made from non-bank elements or seek a benevolent review of the conditionals in view of the on-going operation against the militants in whose success IMF may be as interested as any other stakeholder.

NFA's details for component analytical accounts are available for the month of April 2009. According to this, NFA of the banking system depleted by about Rs 24.6 billion during April.

The entire depletion occurred on account of the State Bank of Pakistan as depletion at scheduled banks was only of a negligible amount. Further analysis of analytical accounts at the central bank showed that net depletion was a result of SBP's incremental claims on the non-residents, which showed an increase of about Rs 44.4 billion, adjusted for SBP's liabilities to the non-residents, which showed a much higher increase, of about Rs 69 billion, during the month.

The claims were in the form of monetary gold, etc, holdings of SDRs, foreign currency, deposits and securities other than shares, whereas liabilities were in the form of deposits, securities other than shares, and loans. (For comments and suggestions research.dept@aaj.tv)
 

ISLAMABAD (June 30 2009): The worst-ever loadshedding has gripped the whole country, affecting social and business life to the point of no return as the mercury level climbing up with each passing day. Masses have been compelled to stay indoors, while the number of students in schools and colleges across the country has also declined.

Patients in hospitals are also facing torments as mercury hitting 45-degree centigrade in Rawalpindi, Islamabad, followed by more or less same level in Lahore, Karachi, Peshawar and Quetta. The unannounced hours-long loadshedding continued to persist in Rawalpindi, making men, women and children upset as they did not have a moment of respite because of suffocated weather at home and scorching heat under the open skies in almost all the areas - with Islamabad, Lahore and Karachi on top.

Amid no signs of climatic change or rainfall, the routine life of people is worst affected because of break-downs, especially when the air-conditioners and desert-coolers also stop functioning due to heat spell, which is mounting day-by-day. While most of the unscheduled power shutdowns are phrased as 'tripping in transformers' in almost all the cities, the plight of people in smaller towns and villages is reported to be extremely horrible.

Despite loadshedding, the government is reported to have decided another 17 percent increase in power tariff during financial year 2009-10 to settle remaining inter-corporate debt payments under the IMF pressures. The government has allocated low power tariff subsidy allocation in the budget which signifies a strong intent to phase out power tariff subsidies by increasing the power tariff.

However, the move of increasing tariff is likely to face not only a strong political and legal opposition but a general rejection by masses already overburdened with the high cost of living and expensive electricity which absolutely mismatch the per capita income or the income level of the common man.

However, the much sought after improvement in power sector liquidity, the bridging of the systematic gap between generation cost and electricity tariffs is of vital importance. Experts believe that to improve liquidity of the utilities the first step is to address the chronic issue of massive power theft which is generally described as line losses both in KESC and Wapda instead of finding a solution to tariff hikes.

Since the current generation cost and tariff mismatch, it is high time to streamline the cheaper fuel resources such as coal, hydropower and above all nuclear power generation which are cheapest sources of power generation.

According to informed sources, in the present scenario every incremental month of delay in phasing out subsidy would add Rs 6.2billion to the tariff subsidy bill hence the delay in finding cheaper source of power generation would continue to add to the burden of subsidies.

Our reporter from Lahore adds: Traders on Mall Road staged protest against breakdown of electricity on Monday. They blocked the roads near Regal Chowk on Mall Road and threatened to launch countrywide wheel jam strikes if the government fails to ensure smooth provision of electricity.

They said that Managing Director Pakistan Electric Power Company (Pepco) and Federal Minister for Water and Power are making false claims that there will be no load shedding after December 2009.

They said that the ongoing wave of load shedding had destroyed their businesses and if the same situation will prevail the situation would prove lethal for the trade and economy of the country. The protest was staged on the call of All Pakistan Anjumane Tajiran which was announced by its President Haji Maqsood Butt on Saturday. The protest was attended by a large number of traders of Hall Road, Mall Road, Anarkali and Azam Cloth Market.
 

Tuesday, June 30, 2009

ISLAMABAD: Out of total Rs372 billion expenditure in the name of pro-poor spending, current expenditures sharply increased by 49.92 per cent to Rs295 billion while actual development spending fell by 82.42 per cent to Rs76.384 billion in the first half of the outgoing fiscal year.

Current expenditures went up to Rs295.852 billion in the first six months (July-Dec) of 2008-09 compared to Rs148.153 billion in the same period of previous fiscal year, registering an increase of 49.92 per cent.

However, development expenditures fell to Rs76 billion in the first half against Rs139.343 billion in the same period of the previous year, showing a sharp decline of 82.42 per cent. According to a monitoring and evaluation report prepared by the Finance Division on pro-poor expenditures, current expenditures increased by 49.92 per cent during the first half of FY 2008-09 while development spending decreased by 82.42 per cent.

“The decrease in development expenditure can be accounted for mainly due to a huge drop in development spending in the roads, highways and bridges sector, from Rs43,294 million in the first half of FY 2007/08 to Rs18,948 million during the same period in FY 2008/09,” the report states. Current expenditure in this sector remained more or less constant, from Rs2,981 million to Rs3,395 million during the same periods of FY 2007/08 and FY 2008/09, respectively.

A huge increase in current expenditure during the first half of FY 2008/09 can be credited to the subsidies sector amounting to Rs118.713 billion, which encompasses more than just food subsidies relative to last year in which the total figure was Rs1.361 billion. The most prominent increase in expenditure during the first half of FY 2008/09 over the same period in FY 2007/08 was witnessed in the subsidies sector at the federal level, as well as, in Punjab and NWFP.

An increase of 20.22 per cent under justice administration was incurred in Sindh, while the largest percentage increase in expenditure in Balochistan was in natural calamities. Total expenditure incurred in pro-poor budgetary sectors up till the second quarter of FY 2008/09 amounted to Rs372.236 billion marking an increase of 29.48 per cent compared to the same period during FY 2007/08.

The largest increase in PRSP budgetary expenditures during the first half of FY 2008/09 over the same period in FY 2007/08 was witnessed in subsidies (8622.48 per cent), with the total amount incurred in this sector during the period being Rs118.713 billion.

However, it is difficult to determine the exact comparison between subsidies during the two years since, in contrast to last year, this sector now encompasses all subsidies including financial & fiscal affairs; and commercial affairs in addition to food items during FY 2008/09 and beyond.

The second and third highest expenditure incurred during the first half of FY 2008/09 was in Peoples’ Works Programme-II (668.76 per cent) and social security & welfare (131.80) with Rs15,183 million and Rs9,541 million spent in these sectors, respectively.

During the same period, expenditures incurred in water supply & sanitation; health; and law & order increased by 23.76; 14.83; and 10.66 per cent, respectively amounting to Rs6,495; 26,819; and 42,175 million during the first half of FY 2008/09, respectively.

Sectors, which observed a large decline in expenditures during the first half of FY 2008/09 over the same period in FY 2007/08, include rural development (85.60 per cent); low cost housing (76.47 per cent); Peoples’ Works Programme-I (71.34 per cent); population planning (56.20 per cent); and roads, highways & bridges (51.72 per cent). Surprisingly, expenditure in agriculture during the first half of FY 2008/09 decreased by 36.75 per cent despite containing more sub categories including fisheries, forestry & livestock compared to last year, which only tracked irrigation. Continued from page 15

Sectors, which observed a large decline in expenditures during the first half of FY 2008/09 over the same period in FY 2007/08, include rural development (85.60 per cent); low cost housing (76.47 per cent); Peoples’ Works Programme-I (71.34 per cent); population planning (56.20 per cent); and roads, highways & bridges (51.72 per cent). Surprisingly, expenditure in agriculture during the first half of FY 2008/09 decreased by 36.75 per cent despite containing more sub categories including fisheries, forestry & livestock compared to last year, which only tracked irrigation.
 

Tuesday, June 30, 2009

FAISALABAD: Textile exporters could bring $25 billion from exports in next two years and $120 billion in next 10 years, if they are provided level playing field.

This was claimed by the FPCCI Chairman, Azhar Majeed Sheikh in the standing committee on export trade on Monday in post budget proposals to Shaukat Tarin, Advisor on Finance.

Major issue pertaining to exports still remains unattended, he said. He demanded exemption of federal excise duty on insurance, banking, port and terminal operations for zero rating purposes. Yet another demand was of refund of duty drawback and sales tax at time of negotiation in banks as is case with deduction of income tax. He also demanded payment of pending refund of earlier years and also release of 60 per cent R&D claims.

Sheikh demanded offsetting the free access of Bangladesh and other regional countries to Europe and America through export incentives to local industry. These constraints have put the exporters in a very difficult cash flow station; he contested and demanded capping of mark-up rate on various products to 7.5pc.
 

Tuesday, June 30, 2009

KARACHI: Federal Textile Adviser Mirza Ikhtiar Baig has said Pakistan’s exports to the European Union may increase three-fold if it offers duty-free status.

A press statement said according to a study conducted by Baig, most of the countries exporting to the EU are given treatment under the Generalised System of Preferences (GSP). The GSP offers a slightly lower rate of duty than the regular duty.

If Pakistan is given zero-duty status, its exports to the EU may increase from the current $7-10 billion to about $15-20 billion or even $25-30 billion, an increase of $10 to 20 billion. “That’s not a high price or extraordinary burden for the EU considering that total imports of the EU are over $800 billion,” the study said.

Pakistan can win this status like other countries which have exports of less than one per cent of total EU imports (excluding oil) and qualify the GSP-plus scheme. Pakistan’s exports stand at around 1-1.5 per cent. This threshold for qualification of the GSP-plus should be increased to 3 per cent plus allowing three to four years period to sign or ratify required international treaties and conventions, the study said.

Furthermore, it said the country retains a much higher foreign debt to GDP ratio than that of Vietnam and India and is classified as a moderate to high indebted country by the UN. Vietnam and India are classified as low indebted country.

The Human Development Index (HDI) of Pakistan, as classified by the UN, is 142, which is higher than Vietnam and India and also higher than Bangladesh which are getting zero duty status from the EU. The study noted the irony that comparing July 2005 or January 2006 to the year 2004, Pakistan is only country, whose zero duty status in the EU was eliminated, while many countries that were not given zero duty in 2004 (Sri Lanka), are now allowed the status. This implies that the EU has withdrawn its support from Pakistan’s economy, the study said.
 

LAHORE: US President Barack Obama’s plan to increase exports from Pakistan and Afghanistan to the US has been ensnared in a debate over labour rules between Democrats and companies such as Wal-Mart Stores Inc, Bloomberg reported on Monday.

A law passed by the US House of Representatives limits the products and imposes work conditions that would negate potential benefits, according to the US Chamber of Commerce. The Senate passed an aid bill for Pakistan last week without the trade benefits the House had included in the legislation it approved on June 11. “It’s not going to help Pakistan,” Sarah Thorn, director of international trade in Washington for Wal-Mart, the world’s largest retailer, told Bloomberg. “It’s the wrong places, wrong products and it has pretty onerous” labor rules, she said.

The imposed limits deny trade benefits to products made in certain areas of Pakistan, including the tribal regions. It excludes cotton pants and knit shirts, which account for more than a quarter of the $3 billion a year in textile and apparel Pakistan now sends to the US. But Susan Aaronson, a professor at George Washington University in Washington, said the new labour requirements might ultimately help businesses, which had their reputations harmed after being linked to worker exploitation overseas. “Pakistan doesn’t have a good record in terms of child labour and the employment of women,” she said. “This ensures the rule of law will be followed.”
 
Syed Mohammad Ali


The challenge for policy makers in our part of the world is to develop a strategy which can manage this ongoing accelerating urbanisation in a manner that the existing cities become more liveable, in addition to serving as engines of growth

While urbanisation in developing countries can encourage economic growth, rapid and unplanned urbanisation also creates major problems by putting pressure on housing, infrastructure, public services, and the environment.

Pakistan’s cities, for example are already accommodating some 35 percent of the total population, but with the urban population growth rate outstripping national population growth, that figure is set to reach 46 percent by 2025 and 64 percent by 2050. Increasing poverty has accompanied urbanisation in Pakistan, as a result of rural-to-urban migration and the lag in the formal economy’s capacity to absorb the growing population of unskilled labour, and the cities’ capacities to provide basic urban services.

In Karachi, which is now one of the largest cities in the world, more than half of the population lives in informal high density and environmentally degraded settlements (katchi abadis) or slum areas; 89 percent of the katchi abadi population has incomes below the poverty line.

The challenge for policy makers in our part of the world is to develop a strategy which can manage this ongoing accelerating urbanisation in a manner that the existing cities become more liveable, in addition to serving as engines of growth. In devising such a strategy, a fundamental shift in approach is however required of moving away from the practice of regarding municipal service delivery as consisting of elements or projects to be funded on a piecemeal basis towards a more holistic concept of managing cities as social and economic systems.

In fact, while they are unique, South Asian cities are also facing similar challenges, and do have much to learn from each other. The analysis of development dynamics since the 1990s in India very clearly shows that the process of urbanisation has become exclusionary in nature, as only a few large cities with a strong economic base are able to raise resources for development, leaving out small and medium towns.

With governmental investment in infrastructure and basic amenities declining in smaller towns over the years and their failure to attract private or institutional investment, the disparity within the urban economy is likely to increase in coming years, an issue which not only Indian cities but also other big cities in neighbouring countries also face.

Consider for instance the urbanisation process underway in Pakistan’s Punjab, which is well above the South Asia average, and is set to further increase in the coming years. The city of Lahore alone has a population today that is larger than the total urban population of Punjab in 1951. In 2009, Punjab had five cities with populations of over one million. Punjab’s future will increasingly be an urban one. But whether our planners learn the required lessons from trends that have been emerging in India so as to make our ongoing urbanisation processes more inclusive remains to be seen.

Unfortunately, the trend of a centrally managed city with accountability not to citizens but upwards seems a common regional phenomenon. Dhaka, for instance, is managed through several line agencies that report to different line ministries at the central government level and also some services with direct responsibilities under the mayor, often with overlapping mandates. As a result the lines of accountability are blurred for the common citizen and even the coordination of services becomes very difficult. To address traffic congestion, Dhaka will need to coordinate between traffic police, roads infrastructure, land planning, and public transport, to name a few areas. But not all these areas are under the mayor — many belong to central line ministries. Not surprisingly, real failures occur due to this confusion.

Given this prevailing situation, it should not be surprising to note that no city in South Asia delivers continuous water, 24 hours a day, seven days a week. Water supply and sewerage coverage ranges from 46 to 70 percent across major cities of our own country. The water quality is also poor, and distribution networks are old and suffer from leakage and contamination. There is no real sewage treatment in any urban area; most is dumped into the sea or rivers through open channels, creating serious environmental problems. Furthermore, only 60 percent of solid waste generated in Pakistani cities is collected; most is usually deposited on open ground or in poorly designed dump sites on the outskirts of built-up areas.

Moreover, most of our cities do not have strategic development plans or programmes to support cultural heritage and the environment. The movement of people within most cities is difficult because of the absence of effective public transport. A backlog of 6 million housing units nationwide has resulted in overcrowding within the existing stock and the formation of many informal and illegal settlements with minimal basic amenities.

While the list of our common problems can easily become longer, it is also important to realise that the urbanisation process in Pakistan is not uniform, and it therefore does require flexible policies.

For instance, there are over forty urban areas in the Punjab including five major cities and several smaller cities — eight of them with populations between 200,000 and one million inhabitants — which is a unique case within the Pakistani context. An urban triangle of Faisalabad, Gujranwala and Sheikhupura/Lahore comprises 30 million people, and forms a potential growth pole or engine of growth. But realising this potential perhaps requires joint planning committees for this region, an issue that has not yet received much attention by urban policy makers.

The lack of a comprehensive vision, as well as governance and planning weaknesses, accompanied by inadequate investment in urban development can result in uncontrolled and unplanned development of cities and towns, deterioration in the urban environment and deficiencies in all forms of urban services.

Global experience suggests that creating cities that are accountable to their constituencies requires a systemic approach. First, cities need to be empowered. This empowerment includes giving cities clear responsibilities, own-sources of finance or tax base, and access to functionaries that report directly to city management. While devolution and the creation of city districts was a right step in this direction within the Pakistani context, the fate of this devolutionary process now hangs in the balance due to the current political compulsions.

The effective governance of metropolitan areas cannot occur by trying to fix the pipes, as they say, but by fixing the institutions that fix the pipes. It is this latter approach which must be adopted by all future major decision makers who have a say in urban policy making so as to ensure delivery of sustainable municipal services.
 
By Muzaffar Qureshi
Saturday, 27 Jun, 2009

KARACHI: The Annual Development Plan (ADP) allocation for the agriculture sector for 2009-10 in Sindh is 29 per cent higher compared to last year with a view to boost agriculture, which contributed significantly to the last year’s GDP.

Sources said that the new ADP for agriculture is Rs2,955.25 million against Rs2,292.5 million allocated last year. They said that major allocation of Rs1,169.95 million has been made for six schemes for farm research, Rs1,149 million for three schemes in farm mechanisation, Rs439.9 million for three schemes in water management and Rs184 million for agriculture extension.

The major schemes, which are likely to develop agriculture in a big way include survey, mapping and sampling of soils and reclamation (Rs400 million); development and preparation of quality seeds under public private partnership (Rs469.9 million); promotion of cut flowers in Sindh through universities (Rs100m); provision of 3,000 tractors to farmers (Rs808m); Tunnel green house cultivation (Rs100m); and installation of wind mills, solar pumping for irrigation water and land reclamation from water-logging and salinity (Rs200m).

Meanwhile, Sindh Chamber of Agriculture has said that ambitious schemes are drawn every year through ADP but their implementation is never ensured.

Anwer Bachani of the Chamber told Dawn on Thursday that most of the ADP schemes this year were of superfluous nature whose results could not be seen on the ground.

Commenting on a few schemes he said that the chamber has always demanded that distribution of tractors be made through transparent balloting to eliminate chances of corruption.

He said most of the tractors were shared by big landlords and the ordinary farmer is ignored.

Similarly, tunnel green house cultivation is mainly meant for areas affected by harsh winter conditions whereas in Sindh winter is moderate, he added.

Mr Bachani complained that growers’ representatives were never taken into confidence while drawing ADP schemes.

Shortage of water and fertilisers has threatened cotton and sugarcane crops.

Sindh Chamber of Agriculture has welcomed President Zardari’s move to release more water for Sindh from Taunsa Barrage but said that crops need immediate water and growers were praying for early monsoon rains. The water released from Taunsa would reach Sindh in 15 days.

Shortage of urea is also affecting growth of crops as Sindh has received only 217,000 tons of urea out of its quota of 700,000 tons for the current season which lasts from April to September.

According to the data provided by the ministry, the province will get 41000 tons of urea in June followed by 69,000 tons in July.

However, it admitted that only 18,000 tons of urea was supplied in April and about May supplies it has no details which created an acute shortage of urea setting its price to Rs9,000 per bag against the controlled rate of Rs750.
 
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