profit.com.pk

A World Bank for a new world Page 02

Monday, 27 February, 2012

LAHORESTAFF REPORT

DeSPiTe competitivequality and price,Pakistan businessmenwere unable to makedelivery on time due to

discriminatory gas suspension bythe government for Punjabindustries which has dealt a deathknell for export productivity.Asking the Federal Minister forPetroleum and Natural ResourcesDr Asim hussain to honour hiscommitment for increasing gassupply to Punjab industry for threedays a week, the President lahoreChamber of Commerce and industry(lCCi) irfan Qaiser Sheikh said itwill help arrest Rs100 billionmonthly loss to the economy andensure jobs 400,000 daily wagers.he reminded Dr Asim’s promise tothe industry in Punjab on January27 in the presence of Chief MinisterPunjab Mian Shahbaz Sharif atChief Minister house that the threeday per week gas supply would berestored in the month of February,but the economy has hit therock bottom only because offederal minister’s failure tokeep his word.how can an industrialistrun his industry whenhe is paying a markupof 365 days andgetting gas foraround hundreddays only as last

year the industry in Punjab wasgiven gas for only 170 days. “it isnot only the industry that wassuffering massively, but thegovernment was also a loser onmany counts.”irfan Qaiser Sheikh said around 40per cent of the industrial units inPunjab run on gas and gassuspension means no productionby almost half of the industryand a loss of millions of rupeesto the exchequer.The ‘discriminatory attitude’ ofthe government was not onlydenting its goodwill andreputation, but had also put aquestion mark on its ability tomanage and govern things. “itwas a death knell for export-basedindustry and productivity.”how would the industry be able tomanage export orders worthmillions of dollars when there isno gas? What about millions ofdaily wagers who have asingle source ofincome? And

above all, he added, how would thegovernment convince both the

local and foreign investors forinvestment when it is

unable to manage thesupply of gas to the

existing industrialunits. “instead ofcoming up with somesort of relief package,the industry is beingpushed to the wall.The gas suspension istantamount to

throttling the industryto death.”

Despite competitivequality and price,Pakistan exporters wereunable to make deliveryon time, he added. hesaid it seemed that someelements in the gasdepartment were hatching

conspiracies against thegovernment to defame it.

lCCi President said thebusinessmen were unable to

understand why the businesscommunity was not taken intoconfidence over industry-related

issues. if SNGPl was facingsome supply related issues

they must bring themto the notice of

real

stakeholders, well ahead of time.Giving a breakup, lCCi Presidentsaid the industry was denied gas for77 days in 2008-09, 100 days in2009-10, while in 2010-11 it wasgiven gas for only 170 days. “Anunprecedented hike in power tariffhad made the scenario morecomplex and complicated. To runthe industry on alternative fuel,including diesel and furnace oil isnot a viable proposition.”The shortage of gas is not the onlyissue; its improper distribution alsoremains a cause of worry. “it wouldhave taken about two years to set upa system for lNG supply, had thegovernment accepted the lCCiproposal a couple years ago.

KUNWAR KHULDUNE SHAHID

While Pakistan is clutchingat straws in its quest tosolve the gas predicamentvia the contentious iran-

Pakistan pipeline, the US has the luxuryof ‘delaying’ a pipeline project KeystoneXl from Canada, citing ‘environmentalconstraints’. how we wish we couldhave the comfort of scutinising theeffects of our projects with regards toglobal warming; however, as thingsstand we’d rather focus on overcominga gas shortfall of one billion units perday, than fret about the vulnerability ofthe stratosphere. And Washington’smeddling is certainly becoming anuisance in this quest – if nothing else.The US recently called the iran-Pakistanpipeline project a “bad idea”, and thereasons provided by the Americanhierarchy for this assertion ran theentire gamut from being pointless tobeing absurdly pointless. So, howexactly is the iran-Pakistan pipeline abad idea? is it because fiscal deficit andenergy shortage might be resolved at therespective ends of the pipeline? Orbecause after Asian giants snubbed theiranian sanctions, it would mean thatPakistan would be following suit?

Maybe Washington needs a tutorial onwhat qualifies as a bad idea.like for instance forgetting your wife’sbirthday is a bad idea or wearing aleather jacket in a hotsummer’s day in

Jacobabad.Other illuminatingexamples of a bad ideawould be The Treaty ofVersailles or the ‘War on Terror’in Afghanistan. it’s ironical thatthe Obama regime is seemingly failingto comprehend the term becausePresident Obama is no stranger to badideas. in fact if a bad idea were ahundred cubic feet of gas, Obama wouldhave solved Pakistan’s gas shortagesinglehandedly. Some noteworthyillustrations of his brain detonating can

be found in his health Care Reform andthen there is his version of the “BuffetRule” of taxation, the plethora of greenenergy tax credits and the criminallybackfiring “clean energy standard” idea– and we’re still within the USjurisdiction in this little debate of ours.

in fact it’s the latterkith and kin

from

where Obama traced his latest crop ofhorrendous ideas – cue Keystonedebacle. in a bid to woo theenvironmentalists before the electionsin November this year, Obama delayedthe Keystone Xl pipeline project at thetail-end of last year. Whether a sizablenumber from the environment lobby fell

prey to the bait or not is a matter ofconjecture; however, what has

undoubtedly happened isthat the decision has comeinto the spotlight amidst

soaring gas pricesin the US,which aretouted to jumpup by $4 gallonby March. And

what makes thisbad idea even

worse, was therationale provided for

the decision:apprehensions overthe risk of spills. US

currently has apipeline network of

over 500,000 miles, andif in a hypothetical world

of diminutive probabilitiesthe 2,147 mile Keystone

pipeline were to fall short of standards,

it still wouldn’t be catastrophic for allpractical purposes. Nevertheless, it’s thepolitical decisions forestalling thepractical decisions in this game, withthe elections in mind – and Obama islosing out, despite being the onescribing the rulebook. There is an opulent reservoir of oil inthe central part of North America, andthe easier its movement is the lowerwould be the price; and with the whole‘energy security’ debate, wouldn’t it bemore convenient for Washington tocover its oil imports via Canada than sayVenezuela or the Middle east? Byopposing this move, Obama is playingright into the Republicans’ hands, whonow have him in the corner and arepeddling overblown numbers to furtherexacerbate the shortcomings of the USpresident’s little grey cells. TheAmerican public hasn’t exactly beenforgiving towards presidents who’ve hadgas crises; as Richard Nixon found outafter the 1973-74 embargo or JimmyCarter realised in 1980 after 79’s gascrisis, much to the delight of RonaldRegan. And with this latest brand offaltering decision making, the odds areshortening on Obama biting the dustthis time round. The iran-Pakistanpipeline doesn’t look that bad an ideanow, does it Mr President?

The writer is Sub-Editor, PakistanToday. He can be reached atkhulduneshahid@gmail.com

Pipeline politics and bad ideasForgetting your wife’s birthday is a bad idea, the Iran-Pakistan pipeline is not

Instead of coming up withsome sort of relief package, theindustry is being pushed to the

wall. The gas suspension istantamount to throttling the

industry to death

LCCI asks Dr Asim to honour hiscommitment over gas supply

PRO 27-02-2012_Layout 1 2/27/2012 2:29 AM Page 1

debate02Monday, 27 February, 2012

NAJMA SADEQUE

TODAY, there are moreways than one to appro-priate another country’sterritory and, or, re-sources: it comes in the

guise of foreign investment. Well be-fore the crash of 2008 when new av-enues for global investmentevaporated, farmland became thenew target.

Pakistanis were shaken by theland-grabbing phenomena when Gen-eral Musharaf’s government unilater-ally decided to lease lands for foreigncorporate farming. Sweeteners werenot necessary: he gave them anyway -- unlimited acreage with minimumblocs of 1,000 acres, for 50-year peri-ods or more, the first 10 years tax-free; all yields and profits allowedrepatriation to the investor’s homecountry. The idea must have glowedwith lip-smacking possibilities, be-cause the new, ‘democratic’ govern-ment did not blackball it.

in many former colonies, stateshappily retain ownership over thesame lands previously controlled bycolonial powers. These include com-munity lands – known as the commons– which belong collectively to the peo-ple, especially the landless, whose sur-vival depends on them. in Pakistan,they are conveniently labeled “statelands”, implying that “elected repre-sentatives” – sans public information

and mandate -- are free to dispose withthem as they wish, riding roughshodover those to whom the lands rightfullybelong. The issue needs to be raised toassert that such colonial-style exclusiv-ity is no longer justified under democ-racy. Transferring community lands topeasants -- still waiting for the 1947promise of land being restored totillers -- has not been genuinely at-tempted in 64 years.

So far the media has exposed onlythree cases of lands leased out to for-eign investors: in Baluchistan, Punjab,and most recently in Sindh, sans anydetails. A state of insecurity is perhapswhy these foreign enterprises have nottaken off yet. But the hundreds of dealsalready struck around the world warnof what to expect.

Governments invariably claim tosell or lease land in the name of eco-nomic development. instead it liter-ally takes food from people’s mouthsalong with livelihoods, shelter and away of life.

Recently, GRAiN, and interna-tional NGO, released new data of 416massive land grabs for food crop pro-duction by foreign investors coveringover 87 million acres of land in 66countries. They do not include pre-2006 land grabs. Most of some 300land grabbers are from the agribusi-ness sector, while financial compa-nies and sovereign wealth fundsmade a third of the deals. China,india, UK and Germany take the lead,followed by USA, UAe and Saudi Ara-

bia, while the UK is a popular taxhaven for land grabbers.

The common denominatorthroughout the South is that custom-ary laws or rights of usage are nolonger recognised, and constitutionsdo not guarantee protection of com-munity lands. it’s no different in Pak-istan where feudals monopolise allprime land, and decision-making gov-ernments are feudal-dominated.

Perhaps what outrages most isWorld Bank’s loan-backings for suchinvestment along with USAiD andeven major US universities; this in thesame breath that World Bank policypurportedly aims to protect smallhold-ers and address unequal negotiationsbetween farmers and big industry.

While hypocrisy is not new inWorld Bank, many UN agencies such asFAO have been at cross-purposes forsome time, working together on the so-called “seven principles of investment”.They actually contradict all principleswhich demand respecting land and re-source rights, ensuring food security,transparency, good governance, con-sultation and participation, and sus-tainability. They turn out to be eyewashas they are not binding on governmentsor investors, and are expected to be vol-untarily enforced. in effect, says oneactivist, the principles of “responsibleagricultural investment end up giving agreen light to investors.”

in Africa alone, some 3.5 billionacres of commons in 35 nations are atrisk. Focus on the Global South points

out that World Bank “does not con-sider agrarian reform or the need thathas been expressed to redistribute landand to reorganise the way that land ismanaged in the countries." Further-more, water is taken for granted inland contracts. locals suffering watershortages are not considered, and nolimits are placed on foreigners’ use ofnatural resources.

The international land Coalition(ilC) finds this “race for the earth”threatening some half a billion acresworldwide, having an estimatedworth of $6 trillion.

What escapes government andpoliticians alike in Pakistan is thatwhen they sell or lease land to for-eigners, they violate human rights intwo ways. – One, they are handingover people’s property to foreignerswithout consent or mandate of thecitizens; and two, by so doing, theyare directly and actively exacerbatinghunger, loss of livelihood and shelter,and poverty, to line the pockets ofvested interests.

Since this government is unlikelyto take appropriate action – “roti,kapra, makan” never included land –it’s necessary for other political partiesto note that acting in the public inter-est, long overdue, is now necessary toobtain mass votes.

The writer is a former journalist andcurrently director of The GreenEconomic Initiative at Shirkat Gah, arights and advocacy group

Rally on Wall St tobe put to test

REUTERSNEW YORK

The broad index is up 8.6 per cent for theyear, closing at 1,365 on Friday. The S&P500's close was the highest since June 6,

2008, a few months before lehman Brotherswent bankrupt as the global credit crisis spiraledout of control. While the swiftness andmagnitude of the gains have created concernsthat the market is due for a pullback, a breakabove 1,370, which was 2011's intraday high,could trigger more buying as investors fearmissing out on further gains. "We have reachedan exhaustion point and an inflection point. Thesentiment is bullish and the money flow hasgotten bullish, and that's freaking people out abit," said James Dailey, portfolio manager atTeAM Asset Strategy Fund in harrisburg,Pennsylvania. "What's more likely, or normal,would be a 5-7 per cent decline (from currentlevels), but if we move above 1,370, that could bethe next leg up." The S&P 500 has struggled toclimb above 1,370, but the level has thrown upstrong resistance in the past week. For this week,the Dow Jones industrial average .DJi and S&Prose about 0.3 per cent and the NasdaqComposite .iXiC added 0.4 per cent to close at itshighest since mid-December 2000. Oil prices willalso be in focus after Brent crude futures closedat $125.47 per barrel on Friday, the highest sincelast April, on fears of worsening tensions betweeniran and the West. "The S&P and crude oil priceshave been showing a correlation so far. But oil atwhere it is now is a big deal," said Ben Schwartz,chief market strategist at lightspeed Financial inChicago. Schwartz explained that if oil keepsrising, it will threaten consumer confidence andpressure the stock market. The movement in theeuro will also be closely watched for hints aboutmarkets' appetite for risky investments.

Corporate colonisation

JEffREy D SAcHS

The world is at acrossroads. either theglobal community will jointogether to fight poverty,resource depletion, and

climate change, or it will face ageneration of resource wars, politicalinstability, and environmental ruin.The World Bank, if properly led, canplay a key role in averting thesethreats and the risks that they imply.The global stakes are thus very highthis spring as the Bank’s 187 membercountries choose a new president tosucceed Robert Zoellick, whose termends in July.The World Bank was established in1944 to promote economicdevelopment, and virtually everycountry is now a member. its centralmission is to reduce global poverty

and ensure that global development isenvironmentally sound and sociallyinclusive. Achieving these goals wouldnot only improve the lives of billionsof people, but would also forestallviolent conflicts that are stoked bypoverty, famine, and struggles overscarce resources.American officials have traditionallyviewed the World Bank as anextension of United States foreignpolicy and commercial interests.With the Bank just two blocks awayfrom the White house onPennsylvania Avenue, it has been alltoo easy for the US to dominate theinstitution. Now many members,including Brazil, China, india, andseveral African countries, are raisingtheir voices in support of morecollegial leadership and an improvedstrategy that works for all.From the Bank’s establishment untiltoday, the unwritten rule has been

that the US government simplydesignates each new president: all 11have been Americans, and not a singleone has been an expert in economicdevelopment, the Bank’s coreresponsibility, or had a career infighting poverty or promotingenvironmental sustainability. instead,the US has selected Wall Streetbankers and politicians, presumablyto ensure that the Bank’s policies aresuitably friendly to US commercialand political interests.Yet the policy is backfiring on theUS and badly hurting the world.Because of a long-standing lack ofstrategic expertise at the top, theBank has lacked a clear direction.Many projects have catered to UScorporate interests rather than tosustainable development. The Bankhas cut a lot of ribbons ondevelopment projects, but hassolved far too few global problems.

For too long, the Bank’s leadershiphas imposed US concepts that areoften utterly inappropriate for thepoorest countries and their poorestpeople. For example, the Bankcompletely fumbled the explodingpandemics of AiDS, tuberculosis, andmalaria during the 1990’s, failing toget help to where it was needed tocurb these outbreaks and savemillions of lives.even worse, the Bank advocated userfees and “cost recovery” for healthservices, thereby putting life-savinghealth care beyond the reach of thepoorest of the poor – precisely thosemost in need of it. in 2000, at theDurban AiDS Summit, irecommended a new “Global Fund” tofight these diseases, precisely on thegrounds that the World Bank was notdoing its job. The Global Fund toFight AiDS, TB, and Malaria emerged,and has since saved millions of lives,

with malaria deaths in Africa alonefalling by at least 30 per cent.The Bank similarly missed crucialopportunities to support smallholdersubsistence farmers and to promoteintegrated rural development moregenerally in impoverished ruralcommunities in Africa, Asia, and latinAmerica. For around 20 years, roughlyfrom 1985 to 2005, the Bank resistedthe well-proven use of targetedsupport for small landholders toenable impoverished subsistencefarmers to improve yields and breakout of poverty. More recently, theBank has increased its support forsmallholders, but there is still farmore that it can and should do.The Bank’s staff is highlyprofessional, and would accomplishmuch more if freed from thedominance of narrow US interestsand viewpoints. The Bank has thepotential to be a catalyst of progressin key areas that will shape theworld’s future. its priorities shouldinclude agricultural productivity;mobilization of informationtechnologies for sustainabledevelopment; deployment of low-carbon energy systems; and qualityeducation for all, with greater relianceon new forms of communication toreach hundreds of millions of under-served students.The Bank’s activities currently touchon all of these areas, but it fails tolead effectively on any of them.Despite the excellence of its staff, theBank has not been strategic or agileenough to be an effective agent ofchange. Getting the Bank’s role rightwill be hard work, requiring expertiseat the top.Most importantly, the Bank’s newpresident should have first-handprofessional experience regarding therange of pressing developmentchallenges. The world should notaccept the status quo. A World Bankleader who once again comes fromWall Street or from US politics wouldbe a heavy blow for a planet in need ofcreative solutions to complexdevelopment challenges. The Bankneeds an accomplished professionalwho is ready to tackle the greatchallenges of sustainable developmentfrom day one.

A version of this article was firstpublished in Project Syndicate

A WorldBank fora newworld

PRO 27-02-2012_Layout 1 2/27/2012 2:29 AM Page 2

IT is a matter of concern for any countrywhich gets reduced to a dumping groundfor used materials and discarded articles.Pakistan, being a very relevant example,where the mounting ratio of importing,

used or recycled plastic items, has become a con-stant threat to the health of the citizens.

At present, there are hundreds of importers andbuyers in Pakistan who are trading different used plas-tic items and materials. Definitely these types of useditems are economically cheap and very cost effective,

especially for the averagebuyer in the Pakistani mar-ket. But, the overall hazardsresulting due to the unre-strained and uncontrolledusages of these used plasticitems outweigh the so-calledbenefits and advantages.

Sipping water from aused pet bottle would not bean ideal option for anyhealth-conscious individualliving in any part of theworld, but there are a num-ber of traders in Pakistan re-

joicing the economic benefits offered by the treasuredrubbish, that is discarded by the more developed coun-tries of the world.

Starting from CPU casings to monitors, from CDsand DVDs to keyboards, dustbins, milk jugs, lawnchairs, other furniture, etc; imported plastic waste inPakistan is being used to manufacture products that arecommonly used on a daily basis, including soft drinkand shampoo bottles, buckets, credit cards, disposablelatex gloves and syringes, shoe soles, trash bags, etc.

heavier consumption of imported plastic wasteinto making of everyday products can result in variousmedical and environmental concerns because this plas-tic waste is toxic in nature, and hazardous to humanhealth in many ways. For example, products made fromcoloured plastics entail higher amounts of pigmentscomposed of highly-toxic heavy metals like lead, cobalt,chromium, cadmium, selenium, and copper.

Regular use of used plastic bottles may even causecancer as used plastic bottles harbor various kinds ofbacteria. A majority of used plastics being imported toPakistan contain polycarbonate plastics, which are

harmful and dangerous. Bisphenol-A (BPA), a widely-used chemical in baby bottles and hard-plastic drinkingbottles, has reported to be one of the major causes ofbirth defects and infertility in later stages, along withdiabetes and cardiovascular diseases as well.

Used plastics which are further utilised in our localindustries in the manufacturing of various medical de-vices and accessories are equally harmful and dangerous.Commonly known as vinyl, PVC plastic is used in manymedical devices, examples including iV bags, disposablegloves, curtains and flooring, etc, and results in a largenumber of health risks and environmental concerns.

in Pakistan, there are more than 800 manufactur-ing units that buy used syringes and discarded plasticbags for a measly price of Rs20 per kilogram, and afterreprocessing, these factories sell it to the other local dis-tributors and suppliers for up to Rs120 per kilogram.There are more than 400 plastic recycling and crushingunits working in Karachi alone. These factories usuallyimport all kinds of discarded plastics from UAe, whichare then crushed and transformed into granules, andwashed with many different toxic chemicals. Thesegranules are sold at very cheap rates in the local whole-sale markets. A large number of small factories, mostlyoperational in slum areas, purchase these plastic mate-rials to manufacture a range of plastic products.

Most of the used plastics being imported to Pak-istan are collected from the dumpsites, and chemicalsfrom these plastics cause soil and water pollution, de-stroying crops and the natural habitats of fish and othermarine life. Furthermore, used plastic items being soldin Pakistan are made with unknown composition ofpolymer and additives which results in unexpectedchemical degradation.

Most of the plastic waste is being imported intoPakistan from UAe, US, Canada, Germany, Japan,China and other developed countries, plastic wastecoming from UAe is 400 times cheaper since westerncountries dump their all plastic waste and rubbish inUAe, from where it makes its way to Pakistan. Whileinternational standards of waste management under-score the three R's — reduce, reuse and recycle, Pakista-nis tend to follow their own philosophy revolvingaround the three R’s which are rupees, revenues, andreturns. Concerned health and environment depart-ments should take notice of such import of used plasticsinto the country, and this should be brought to an im-mediate halt due to the harmful effects to the health ofthe consumers and the environment. Uncontrolled im-port of used plastics into this country also affects thelocal plastic manufacturers who are producing variousplastic-based products and devices according to inter-national safety standards and are abiding by globally-certified manufacturing laws and regulations.

The writer is Texas A&M University graduate

who is currently employed with Telenor in the

Products - Commercial Division. He can be reached

at syed.jan@gmail.com

Oil remains uncomfortablyand unjustifiably bid in theinternational market.libyan production is backonline earlier than expected

and iraqi, Russian and Mexican crude isflushing markets just as india’s industry andChina’s growth powerhouse begin to slow.This is bad news for Pakistan whereauthorities have just cited erraticinternational price levels as cause for yetanother petrol price hike. And since oil (andrelated products) are inputs in almost allprocesses, the public is about to be treated tohigher inflation and more belt-tightening,with related spill over effect on overallconsumerism and economic expansion. Themore things change, the more they remainthe same.

The reason for the abnormal spike inbrent crude is growing possibility of war in thePersian gulf, and subsequent closure of thestrategic Strait of hormuz, despite clearlybearish fundamentals in the oil market. Thesituation has become all the more delicate

with the return of slight economic stability inthe US, and slim chances of weathering thesovereign debt in europe. Should saber rat-tling in the Gulf now turn into real war, oil willclimb to the $180-200 range in minutes, rub-bishing the club med bailout in continentaleurope and sending America back into reces-sion. So much for the international consoli-dated bottoming out finally materialising.

The prospect of rapidly rising priceswill surely reignite the ongoing debate be-tween the petroleum and finance min-istries in islamabad. it seems the latter willbe forced to revise its position on the CNG-petrol price parity after all, especially sinceevery passing day brings the election thatmuch closer. instead of incorporating un-affordable increases in gas price, decision-makers might just find it politic, andprudent, to reduce taxes on the final petrolprice, increasing eventual demand andearning. Failing to check consistent energyprice rise, whatever the reason, will makepolitical survival increasingly difficult at atime when the phenomenon has already

Making oil affordable

Heavier consumption ofimported plastic wasteinto making of everydayproducts can result invarious medical andenvironmental concerns

Pakistan: A dumping ground of

used plastics materials

Syed Omer Jan

Geniuses of their fields

This is with regards to the news report,“Auction of 3G spectrum must betransparent, says Gillani” published onSaturday. in Pakistan-today you haveshown PM Gillani shaking hands withentrepreneur Bill Gates.in fact both aregeniuses in their own fields: Gillani inturning politics into an ever expandingcash pot; while Bill Gates making hiscomputer world into a cashmountain.The difference is merely indirection- Gillani is doing it for hisforthcoming Gillanis while Bill is doing itfor the enlightenment of mankind infuture.

WALI AWANLAhORE

Non-Tariff Barriers

This is with regards to the article,

“Grilling the wrong chicken” published

on Monday. The relentless debate on

MFN to india is becoming a tiring af-

fair. it is no rocket science that unless

india lifts the Non-Tariff Barriers, it is

impossible for MFN to be a success.

They want us to hurry up and remove

all the items from the negative to the

positive list, but they aren’t taking the

first logical step by abolishing the

NTBs. i don’t think it’s a wise move to

acquiesce to indian demands; we

should focus on national interests.

SHAKEEb AHMED LAhORE

E D I T O R I A L

The ‘what-if’ approach to public transport

The economy continues totread the path of uncer-tainty and doom. Therupee refuses to budgefrom Rs90/USD, the in-

vestment climate staggers, and infla-tion somehow seems anon-representative variable. Amidstthese unsettling issues, what if the sys-tem were revamped? What if the inelas-ticity of the burden of oil imports wasto be challenged? And what if the plightof those consumers who purchased cars

in the fruitful yesteryears but faceshortages and helplessness at CNG sta-tions was taken into account? Not allcan afford tanks full of petrol any more,and there should be no shame in admit-ting this fallout. Putting into perspec-tive, the foreign exchange spent onpetroleum imports each year, the firsthalf of FY12 registered a 35 per cent in-crease in the oil bill, while comprisinga 35 per cent of the total imports. if thistrend continues in the later half of thecurrent fiscal year, the total oil importbill can be expected to arrive at $17 bil-lion versus $12 billion in FY11. Studiesshow that about 49 per cent of oil isused for transportation purposes,which implies that $8 billion will bespent on mere commuting in urbanareas where only one third of the totalpopulation resides. in the last sixmonths Arab crude prices (specific toPakistan) have risen from $108/bbl to$124/bbl, registering an increase of 15

per cent. Given that oil embargo oniran is not far to follow, immediatemeasures need to be taken for re-sources to be not be subservient to vari-ations in international prices.

Given this background, a recent an-nouncement from the lahore TransportCorporation, to import 350-500 busesby April, makes one heave a thankfulsigh of relief for the presence of somevisionaries in the government. More-over, the construction of Bus RapidTransit System to serve about 150,000passengers daily on Ferozepur Road,also deserves considerable applaud. ifone were to design a plan for mediumterm, the biggest hurdle that the gov-ernment is bound to face involves ahuge paradigm shift for the urban elite.The message would be simple; everymember of the household does not needto own a car or travel by a private vehi-cle to reach their destination be it aworkplace, a social event, or simply me-

nial grocery shopping. The‘west’ that we all aspire togod-willing immigrate to,has well developed publictransportation systemswhich require at timeshours of travelling for citi-zens to commute. Why can’twe provide security and confidence towomen, children and people at largefrom ourselves first, before demandingthese essentials from the state?

The parallel measures that provin-cial governments need to undertake in-volve giving a boost to competition inthe provision for transportation serv-ices. This would ensure a greater em-phasis on quality, prices and thedevelopment of an overall culture forusing these services in addition to ancil-lary employment generation. Moreover,to disincentivise use of personal vehi-cles, commercial parking zones can bedeveloped which charge heavy tolls for

people who chose to bring outtheir cars. The benefits of thisapproach are many and easy toappreciate. Greater revenue,less traffic congestion, pollu-tion, driving stress shouldhopefully be adrenaline boost-ers for many.

The onus of these suggestions fallson both policy makers and consumersalike. if traffic regulations were im-posed, the informal market and themafia where rates are decided for driv-ing/ routing the semblance of publictransportation that we currently have,would suffer great dents. As a finalmeasure, i propose recall of all drivinglicenses, and retaking of tests to ensuregreater security and less stress onroads.

The time to rethink is now!

The writer is an economic analystand freelance financial journalist. She

Sakina Husain

For comments, queries and contributions, write to:

Email: profit@pakistantoday.com.pk Ph: 042-36298305-10 Fax: 042-36298302 Website: www.pakistantoday.com.pk

BABUR SAGHIRCreative Head

HAMMAD RAZALayout Designer

SHAHAB JAFRYBusiness Editor

ALI RIZVINews Editor

MUNEEB EJAZLayout Designer

M o n d a y, 2 7 F e b r u a r y, 2 0 1 1

What if thesystem wererevamped?

KUNWAR KHULDUNE SHAHIDSub-Editor

MAHEEN SYEDSub-Editor

PRO 27-02-2012_Layout 1 2/27/2012 2:29 AM Page 3