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Tuesday, 12 March 2013

Politics in PSEs behind poor rate of economic growth


*PSEs pushing country to bankruptcy*

*Politics in PSEs behind poor rate of economic growth*

*Govt asked not to ignore mounting losses of worst run PSEs*

*March 10*

The Pakistan Economy Watch (PEW) on Sunday said mounting losses in the politically managed Public Sector Enterprises (PSEs) are pushing country towards bankruptcy.

Living on hefty bailout packages, not a single PSE has contributed anything but sheer disappointments over the decades, it said.

These companies being run by the non-professional and politically motivated managers have become hub of favouritism and corruption with little hope for revival, said Dr. Murtaza Mughal, President PEW.

Governments use PSEs as a job creation tool to seek political mileage that in turn add to the losses in form of massive loans to pay salaries to an army of incompetent employees, he added.

He said that Pakistan International Airlines, marred with bad governance and misadministration, recently received Rs100 billion as bailout package while it has wasted around Rs 200 billion in last five years.

Estimates suggest that PSEs are wasting around 15 per cent of the total government’s revenue which should be tackled immediately as collections have been sliding down since years.

Dr. Murtaza Mughal said that PSEs including PR, PSM, NHA, PEPCO, PASSCO, TCP, USC, receive over Rs300 billion as bailout packages annually with no improvement and continued wastage of fiscal resources which could have been used for bettering public services.

It can help government boost spending on critical sectors like health and education, he added.

Sometimes worst-run PSEs borrow more than what entire private sector of the country borrows from banks but they still make losses to the tune of billions while taxpayer’s money is used to keep them alive.

All the finance ministers of the incumbent government including Shaukat Tarin, Naveed Qamar, Abdul Hafeez Shaikh and Saleem Mandviwalla have failed to chalk out an effective strategy to turnaround the PSEs, said Dr. Mughal.

He said privatization of some PSEs might improve situation.

--

Dr. Murtaza Mughal
Cell:  0321-5157671
President Pakistan Economy Watch



www.pakistaneconomywatch.com

Monday, 11 March 2013

Youth dialogue on Int'l Women Day


UN Inter Agency Group on Gender Equality, United Nation Pakistan in
collaboration with Islamabad College for Girls F-6/2 celebrates
International Women’s Day

Saturday, 9 March 2013, Islamabad: UN Inter Agency Group on Gender Equality, UN Women and UNESCO in collaboration with Islamabad College for Girls F-6/2 celebrated International Women’s Day with a youth dialogue around the theme ‘Promise is a promise: take action to end violence against women’. The event was hosted by the Principal of ICG Professor Shaista Pirzada, and attended by the UN Resident Coordinator, representatives of the United Nations, teachers and students of the Islamabad College for Girls, and students of other universities in Islamabad and Rawalpindi. 

In his opening remarks, the UN Resident Coordinator, Mr. Timo Pakkala, applauded the ongoing efforts and resolve of the Government of Pakistan particularly with the series of legislation to protect women and girls from violence. However, he noted that gender based violence remains pervasive. Future opportunities for development hinge on how these challenges are addressed and progress will depend on attitudinal changes and effective implementation of the new laws. He reiterated the United Nations’ commitment to continue to work with the Government and CSOs, particularly in the context of devolution, to develop more context specific solutions for the people of Pakistan.

Ms. Abia Akram, Chairperson, National Forum of Women with Disabilities, reminded the audience that people with disabilities make up approximately 10 – 15% of the population. For women in particular, they face 3 main barriers – access, as most are confined in their homes; attitudinal problems; and policy and legislation barriers. She urged the distinguished guests to make a solid commitment for the rights of women with disabilities, to engage with grassroots women and to include women with disabilities as a cross cutting theme in development planning, focused on social rehabilitation and inclusion leading to a dignified life.

According to Francesco d’Ovidio, Country Director of ILO, many improvements have been made in employing women in the formal sectors, but the labour participation rate remains low.  In the informal economy, women make up 70% of the workforce and do not have access to decent wages, decent working conditions, and benefits such as maternity leave. Women are an important factor of the economy. He emphasized the need to focus on policy, particularly for home based workers and domestic workers, and the need to make men aware of women’s rights leading to improvements in access to employment opportunities. While women’s participation in trade unions is increasing, he encouraged greater participation as a means to make their voices heard.

Lena Lindberg, Country Director-OIC UN Women Pakistan, emphasized the global outrage at the level of violence around the world, saying that violence against women is stoneage behavior. Following on the successful Million Signatures Campaign last year, UN Women has launched a social media advocacy campaign, Tashadud-na-Manzur (Violence is Unacceptable), to reach 1 million youth to raise awareness on the issues. She encouraged the students to participate in the campaign and to follow actions of the EVAW Alliance with Men Engage. In Pakistan, 5-7 million children, mostly girls, never get to school, and that, she said, is structural violence. She quoted UN Women’s Executive Director who said that ‘Change is possible and change is happening’, and challenged the students to think of ways that they could make change happen.

Dr. Kozue Kay Nagata, Representative of UNESCO Islamabad, highlighted girl’s education as a powerful tool to end violence against women. Education is key for women to defend their lives, to say no to violence. Violence against women is one of the most deadly and widespread violations of women’s rights across the world. In light of Article 25 A of the Constitution of Pakistan on Rights to Free and Compulsory Education for all children age 5 to 16 years, she stated that now girls must be given full access to schooling and literacy as a constitutional right. She told the audience that this year, International Women’s Day has a special meaning for UNESCO, because of the incident with Malala, which reminds us of what must be done. As Malala had stood up, giving a very positive image of girls in Pakistan, she called on the students of the Islamabad College for Girls to become the model of empowerment for girls all across the country.

Professor Shaista Pirzada, Principal of Islamabad College for Girls, stated that education is not about earning a Degree, it is about achieving a positive change. She referred to education as a catalytic agent fostering the power of thinking in an individual. She said it was the duty of all of us to teach girls to dream and make those dreams come true while living within the parameters of religious and cultural norms. Professor Pirzada called for more awareness campaigns of women’s rights, formal vocation education leading to empowerment, enforcement of legislations, incentives for the corporate sector for engaging women in nation building activities, and changes to the curriculum to encourage self respect and self esteem.

Speakers on the occasion also included students from the Islamabad College for Girls, and Bahria University, Quaid-i-Azam University and Fatima Jinnah University. The students highlighted various causal factors of violence against women and girls such as traditional gender roles, patriarchy, and attitudes that would always place women in subordinate positions. The students spoke of the positive role that women can play in the economic and social growth of the country but also pointed out the many obstacles in the way. The role of education in ending violence against women was stressed, but it was also maintained that attitudinal change needed to begin in the home.

The students of the Islamabad College for Girls concluded the event with a skit illustrating the effects of oppression on a girl child and how education can lead to her empowerment.

Inefficient CPPs inflicts Rs 70 billion loss annually on country


*Inefficient CPPs inflicts Rs 70 billion loss annually on country *

*28 pc efficiency of CPPs resulting in wastage of 327 mmcfd gas per day*

*Closed units getting gas, selling electricity to other industries flouting
rules, law*

*Improved efficiency, decisions based on merit would have subdued energy
crisis*

*Dated March 09*

The All Pakistan CNG Association (APCNGA) on Saturday questioned the policy of providing cheap gas to captive power plants (CPPs) to gain political favours which is causing a loss of Rs 70 billion to the public exchequer per annum.

The technology, efficiency, cost, consumption, production, and other parameters related to the CPPs are questionable, as industry has been using scrap plants in place of modern and better equipment, said Ghiyas Abdullah Paracha, Chairman Supreme Council APCNGA.

The average efficiency of 113 CPPs, mostly installed in textile units, stands at 28 per cent meaning that they are wasting 72 per cent of the gas in the process of generating electricity, he said while speaking to APCNGA’s central executive committee.

Ghiyas Abdullah Paracha said that data of SSGC and SNGPL shows that CPPs are getting 454 mmcfd gas per day out of which 327 mmcfd is lost to inefficiency causing loss of around 19 crore per day.

Planning Commission and Ministry of Water and Power have termed primitive CPPs a major drain of indigenous hydrocarbon resources but to no avail, he said, adding that statements of crackdown against wasteful CPPs by ministry of petroleum is mere eyewash.

He said that government is pleasing owners of CPPs on the cost of domestic consumers, CNG, fertiliser and general industry. Many industries closed since long are being provided gas while the power generated through that gas is being sold to running industrial units without approval from Nepra which must be probed, he demanded.

He said that the silence of concerned departments on the issue is not only amazing but also criminal at a time when whole nation is reeling under power crisis.

The country would not have faced energy shortages of such magnitude if decision were taken on merit and the gas allocated to CPPs was provided to efficient power houses, he said.

Power generation companies are facing heavy losses as gas consumption as well as some 2000 mw load has been shifted to the unregulated gas gulping CPP sector which do not require a licence and have no performance and efficiency checks.

The policy has hiked operation and maintenance cost of the Discos, average tariff is going up while average sale declines causing losses to the government while CPPs thrive on economical gas and support of petroleum ministry.

Criticising the move to lower the efficiency benchmark for CPPs, Ghiyas Abdullah Paracha demanded a probe into the issue to fix responsibility on those who played havoc with the country for their personal welfare.



He demanded an immediate comprehensive and independent audit of captive power plants, banning Discos buying power from captives using cheap gas as fuel, and concrete steps to improve the efficiency and avoid wastage of precious natural resources in the national interest.

The government needs to increase gas price for CPPs by a minimum of 150 per cent to resolve all issues, ensure efficiency and reduce load shedding. There is a need for a well-integrated power policy which addresses the various issues to ensure an overall development of the sector and economy.

Call for national debate on risks associated with pipeline project


*Dated: March 08*

The Islamabad Women's Chamber of Commerce and Industry (IWCCI) on Friday called for a national debate on risks associated with the Iran pipeline project.

We doubt will and ability of the government to ensure import of natural gas from Iran through a controversial pipeline, said Farida Rashid, President IWCCI.

Government claims to relieve country of energy crisis by importing natural gas from Iran, the quickest and cheapest way to fulfil our energy needs, remained confined to statements over the years, she said.

Speaking to women entrepreneurs, she said that in December 2012, President Zardari unexpectedly cancelled a trip to Iran due to US opposition to the project but now government has been issuing statements of rejecting US pressure days before dissolution of assemblies.

She said that all the statements of politicians claiming to reject US pressure on pipeline from gas surplus Iran are aimed at gaining popularity as country remained ill prepared to face US confrontation.

What took government to become aware of the political and economic risks posed by chronic power and gas shortages after five years of rule, asked Farida Rashid.

Why government did not initiate the project soon after coming to power which would have disallowed energy issue to undermine the country’s stability, helped revive economy and saved millions of jobs, she questioned.

Farida Rashid said that US would never allow Iran to increase its presence and influence and boost foreign exchange reserves at a time when west has imposed tighter sanctions on Tehran even if it means crumbling Pakistan’s economy, a long-time American ally.

Government should clarify how it would deal with tough US sanctions when country is heading towards a default due to mismanagement and corruption, she said.

We are facing a highly unstable balance of payment situation, forex reserves are at unsatisfactory level and government is unable to pay for imports for over sixty days which necessitates entering into a stand-by agreement with IMF, she added.

President of the IWCCI called upon a national debate on pros and cons of the project at a time Pakistan needs an IMF loan of 9-10 billion dollar loan from the IMF which will be impossible without US nod, she said.

Farida Rashid said that we will never have reliable energy supply from Iran unless US stop looking at the project from a political angle and start considering it imperative for survival of Pakistan.

*--*

*Farida Rashid,*
President, IWCCI
(Islamabad Women's Chamber of Commerce & Industry)

Thursday, 7 March 2013

Malik blaming Punjab for his failures


*Malik blaming Punjab for his failures*

*Blaming others, point scoring not to shift burden*

*Top Govt officials speaking language of the west*

*Mili operation in Karachi, Balochistan can improve situation.*

*Dated: March 07*

The Punjab Forum on Thursday bitterly criticised repeated statements of the interior minister for dubbing Punjab as hub of terrorists.

The accusations of the Interior Minister Rehman Malik are a desperate bid to hide his failures and disappointments of allies of the central government, it said.

The masses as well as the Supreme Court view the continued violence in Karachi and Quetta as failure of the provincial and federal governments, while Mr. Malik has been conveniently seeking refuge in passing on the buck to the Punjab, said Baig Raj, President Punjab Forum.

He said that shifting blame on non-existent Punjabi Taliban could not absolve Mr. Malik of his responsibility and the fact that he has failed miserably in ensuring safety and life and property of ordinary masses.

He added that Federal government is trying to take advantage of the issue of Punjabi Taliban to get benefit in the upcoming general elections for which they are sacrificing provincial harmony.

Baig Raj said that the tone of the highly questionable repeated statements by the Interior Minister are not acceptable to saner elements of the country as these can only fan sectarian hatred and pit provinces against each other which is height of incompetence.

He added that terrorists are enemy of the humanity, they deserve no mercy and they are not Punjab or non-Punjabi but Mr. Malik has been flouting logic by struggling to give sectarian dimensions to the issue to evade
responsibility.

Baig Raj said that Punjab Government will never shelter terrorists and central government has many security agencies on its disposal to launch an operation if there is a will to do so.

Issuing statements and avoiding action contradicts statements of interior minister who seems not interested in curbing menace of terrorism but complicating the issue.

Mr. Malik whose security skills are confined to jamming mobile phone services, should not confine his startling revelations to the inhuman bombings to tell the nation who is behind merciless killings in Karachi
taking place since years, demanded Baig Raj.

Why an operation has not been launched against terrorists if Mr. Malik is so sure about the involvements of certain group of terrorists behind the bombings, he asked.

The Interior Minister has also been highlighting the issue of religious seminaries in Punjab producing terrorists since long but he is silent on the role of religious institutions in other parts of the country, he
observed.

Baig Raj said that terrorism is a serious issue that is being misused for political point scoring, speaking on behalf of western powers and putting whatever credibility one has on the stake to please foreign masters.

Anti-Pakistan forces are spreading hatred against Punjab, Punjabies are peace-loving people and want peace and prosperity all over the country, he said adding that Rehman Malik is playing ain the hands of some
anti-Pakistan forces. He should take his remarks back if he claims to be a true Pakistani.

He said that a merciless military operation in Karachi and Balochistan with no political involvement could improve situation.

--
*Baig Raj*
President, Punjab Forum
(For political & economic rights of Punjab)
www.punjabforumpk.com
0300-5355563

CNG filling stations owners asks PM for provision of gas


*CNG filling stations owners asks PM for provision of gas*

*Demands implementation of Oct 04, 2011 directives*

*Non-serious attitude of bureaucracy threatens Rs 10 bl investment *

*(March 06)*

The owners of CNG filling stations from all across Pakistan have said that they are not being provided gas since one and a half years despite directives of the Prime Minister and courts which is ravaging their Rs 10
billion investments.

Mubashir Hussain and Chaudhry Liaquat, representatives of the CNG owners form Sindh, Punjab and Khyber Pakhtoonkhwa said that government is sending very negative signals to the investor community by depriving them of their right to run businesses.

Speaking at a press conference here, they said that on October 04, 2011 the Prime Minister had issued orders to provide gas to our CNG outlets but it could not be implemented due to friction between petroleum ministry and Ogra.

On Jan 01, 2013 the PM secretariat again issued directives for supply of gas which could not be implemented while the orders of High Courts directing implementation of PM’s orders were also violated by the all-powerful bureaucracy.

The ministry for petroleum and natural resources as well as Ogra are not interested in resolving problems, rather these warring organisations have become part of the problem, they observed.

Mubashir Hussain and Chaudhry Liaquat questioned the stance of the government that establishing new CNG stations will enhance the usage of gas; they said that new outlets will not boost consumption as it has
nothing to do with expanding customers’ base.

They said that new CNG outlets will distribute load which will relieve masses that have to wait for hours to get their tanks refilled.

We are not being allowed to run businesses while made to pay for rent, salaries and mark up of the banks which is injustice and exploitation, they complained.

The CNG filling stations owners demanded of the prime minister to get his orders implemented to provide them with some relief as they are sandwiched between politicians and bureaucracy of two departments.

Reversal of all controversial moves, reduced loadshedding in Punjab demanded


*APCNGA announces hunger strike against anti-CNG policies*

*Govt punishing 180 ml masses to promote petrol, liquid gases*

*Officials harassing CNG operators, fake cases being registered*

*Reversal of all controversial moves, reduced loadshedding in Punjab
demanded*

*Dated March 06*

The All Pakistan CNG Association (APCNGA) on Wednesday flayed anti-CNG policies of the government and announced to opt for hunger strike in protest from March 12.

We will protest anti-CNG policies of the government, unjust gas distribution, 5-day gas loadshedding for CNG sector in Punjab and continuous discrimination by authorities, said Ghiyas Abdullah Paracha, Chairman Supreme Council APCNGA.

Speaking to a press conference here, he said that all the concerned departments have been harassing CNG operators while false cases are being registered against CNG owners to discourage APCNGA.

Ghiyas Abdullah Paracha said that all the concerned authorities have been directed to continue annoy CNG operators continuously after March 16 when assembles will be dissolved.

He informed that concerned top officials have been warned of dire consequences if they showed any reluctance in penalising CNG sector which is total disregarded of the law and very unfortunate.

Five-day gas loadshedding in Punjab is unacceptable as it amounts to punishing 80 million masses living in that province, Paracha added.

The leaders of the CNG sector said that some top government functionaries, hand in glove with petrol and liquid gas mafia, have laid siege to the CNG sector aiming its annihilation which cannot be allowed under any
circumstances.

Government has been using energy crisis to reap dividends by promoting influential energy mafia which is worst kind of exploitation masses have ever suffered in history of Pakistan, he added.

Paracha said that never in the history of this country such hardship was created for the public to ensure personal prosperity.

Similarly, he added, never before such pervasive corruption has been recorded in the petroleum ministry which has shaken the foundations of the country leaving it to the mercy of plotters and international lenders.

Ghiyas Paracha demanded reversal of all the anti-CNG moves, abandoning projects which are to benefit few and reduce gas loadshedding duration in Punjab.