ECONOMICREFORMS

The Decisive EdgeVOLUME 3 AUGUST-2011

NEWSLETTER

INSIDE FRONT

Editors NoteEditors Note

THINK! – The Decisive Edge – Our Introduction .............................04

Honourable Panel of Jurists (Short Profiles)................................05

Proceedings of Economic Reforms Seminar (24th August, 2011)

Mirza Shahnawaz Agha ...................................................06

Saad Amanullah Khan.....................................................18

Saad Amanullah ...........................................................20

Professor Abbas Hussain..................................................23

Engr. Muhammad Zubair Ahmed.........................................25

Jury Statements...........................................................27

Q&A Session................................................................28

Seminar through the Lens (Pictorial) ...................................33

Proceedings of Jury Meeting (12th July, 2011)

Terms of Reference .......................................................35

Jury Meeting through the Lens ..........................................36

The Verdict ................................................................37

Our Supporters and Collaborators.........................................38

Editors Note

Ms. Nazish Shah – CEOLive RostrumEditor: The Decisive Edge

Table of Contents

Mirza Shahnawaz Agha...............................................................................Declarant

Nazish Shah ................................................................................................Editor

Summaya Naqi ...................................................................................Transcriptions

Fizzah Shakil .........................................................................................Moderator

Muhammad Ali .....................................................................................Coordinator

Hasan Moien ..................................................................................Design & Layouts

Anas Sheikh .......................................................................................Photographer

Noman .............................................................................................Photographer

Esteem Concepts........................................................................................Printers

Faisal Ahmed ...........................................................................................Supports

Team

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Here we present to you the details of the proceedings of our third session, on “Economic Reforms”.

We have initiated this debate to arrive at a comprehensive solution to the current crisis, by reverting to our ideology through the application of the Divine Dictum, on personal as well as collective levels. We strongly believe that compartmentalizing the discussion will not serve any purpose, if a change is to be brought, it would need to be all encompassing and absolute, and what better than to opt for the perfect and flawless system presented by Islam.

Adopting a strategic and methodical approach towards addressing the current situation and proposing a complete new system in consonance with Our Ideology Islam, we have covered social reforms, the foundation of jurisprudence, and economic reforms, the means to providing sustenance to the populace and the nation. We will be addressing Political, administrative and judicial reforms in the course of our drive, among other macro issues.

The Economic Reforms session entailed a detailed debate between experts, which was not only enlightening in terms of historical data and assessment but effective enough to provoke thought, followed by an in-depth discussion of the jury, resulting in a unanimous verdict.

Economic stability, currently the driving force behind international politics, foreign and defence policy, political stability in the domestic arena, and most importantly the well-being of the people at large, is crucial before we can progress onto tackling other concerns.

While we are thankful for the support of the Honourable Jury, the Experts and all participants, we hope to continue gaining strength, in intellect, number and reach.

Lets all put-in our little share in suggesting the best solutions and system. Your suggestions, recommendations and comments are welcome and awaited. Together we can and will make a difference!

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THE CONCEPT

THE STRUCTURE

practice have become eons apart. The depth of the message has Our nation today stands at a cross road, where the turmoil and been lost to the tones of dust that has settled upon our mind in the agitation in the society demand reassessment of both our thought last fourteen centuries. The religion of Peace, Harmony and and action. Despite being geared up to face equitable co- Judicial Co-existence has now been labeled as a regime of existence, with no dearth of talent or vision within our ranks we terrorists in the hands of a select few who have failed to absorb the find ourselves quashed by varying dichotomies on a daily basis. completeness of the Message.

Issues ranging from general governmental and management In our series of debates, discussions and dialogues we will related items to resource utilization and economic concerns keep endeavor to bring to light the magnanimity and more pertinently surfacing to intimidate each member of the society. While we face applicability of Our ideology. We will venture topic after topic in these trials on a individual level, it is imperative that we ignite a search of the true road-map. We will bring together the most constructive discussion and debate on some platform to bring capable minds in our midst to ponder over solutions to all our together the capable minds from amongst us and uncover means predicaments through the application of the rules of the Almighty.and measures to mitigate the impending predicament.

It is with this goal in mind that 'THINK!' has been created to initiate Under the banner of “OUR future: OUR ideology”, we will hold a a dialogue under the theme of “OUR future: OUR ideology”. series of debates on dilemmas confronting our populace and

thrash out with experts the possible solutions. Our structure will A judicial benchmark of the “Divine Dictum-Islam” (a complete comprise of a thesis on each topic being presented by one expert code of life, a guide to matters not only pertinent to the relation followed by a panel debate between academic and technical between man and the Creator, but all affairs on both individual and experts of the field. A working session will follow entailing collective levels),has been used for a thesis such that the questions from the audience thus opening the floor to a wider permissible limits therein can be addressed to neutralize range of ideas and perceptions and keeping the audience engaged.radicalism with functionality.

Panelists will include specialists from the academics, technocrats, Islam entails clear guidelines on social, political, moral, material, bureaucrats, religious scholars, personnel from the armed forces, ethical, national and international themes in spiritual, the judiciary and others in accordance with the demand of each intellectual as well as management paradigms. Islam vividly topic. We will strictly avoid any political discussion, since our defines duties and rights in all interpersonal dealings. No areas dialogue will be based on issues and not personalities and have been left unaddressed; from human rights to inheritance, organizations.from charity to punishment, from foreign relations to internal affairs, Islam outlines not only the complete system of life for an A jury comprising of reputable retired judges and members of the individual but also the foundation of the judicial system, the civil society will grace these seminars and will impart a bedrock of War/Peace Laws and the core of governmental policies. declaratory verdict based on rationality and the deliberation of

the seminar with an end purpose to compile a white paper archive Today, the gurus of human rights and international affairs are hell over time. bent on classifying Islam as a religion of radicals. Preaching and

e x t r e m i s m a l i s e x t r e m a r e m e d i a – Desperate times call for desperate measures.

Our nation today faces a challenge to its sovereignty, our populace is intimidated by a test of survival and each individual is inundated by trials for making two ends meet.

To address these various issues bogging down the cross section of society, we have launched 'THINK!' platform to deliberate, discuss, deduce and decide on a roadmap to resolution.

It is time to bring about a change in thought and action, a change in perspective and approach, and thus a change in tomorrow.

We believe these are desperate times and invite you to come join us and THINK! together.

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Honorable Panel of Jurists

Justice (Retd.) Khalid Ali Qazi Justice Khalid Ali Qazi, started his career as an Advocate Sindh High Court in May 1982. He then enrolled himself as an Advocate of the Supreme Court of Pakistan in January 1996. He was on the panel of approved Advocates of various Financial Institutions, Universities and Statutory bodies. Justice Qazi was also twice a member of Sindh

Provincial Assembly and had also served as a Provincial Minister for Education, Government of Sindh. Mr. Justice Qazi has the honour of receiving an honourary Doctorate from the University of Preston USA in 1999. He is the author of four books titled 'Rendezvous with law: A judge's Reflection', 'A treatise on Law of Evidence', 'Fundamentals of Social Legislation' and 'Sindh Excise Manual'.

Justice (Retd.) Syed Mehmood Alam RizviJustice (Retd.) Syed Mehmood Alam Rizvi, enrolled as an advocate in 1987, and became standing counsel Pakistan in November 2002. He was appointed Special Prosecutor for Anti-Narcotics Force in 2003 and was subsequently elevated as a Judge of Sindh High Court in October 2007. He ceased to hold office after July 2009. In one of his landmark judgments, he

barred the bank recovery officers from harassing defaulters, as a result of which State Bank of Pakistan made a proper policy to deal with such matters. During his professional career he has participated in innumerous conference, workshops and seminars. It is as a result of his recommendation that the Special Terrorist Act, 1975 and Special Courts were abolished and separate Courts were constituted under the Act, 1997.

Muneeb Ahmed KhanMr. Justice (Retd) Munib Ahmed Khan started his Legal Profession and enrolled as an Advocate in October 1978, enrolled as an Advocate of the High Court in 1980 and of Supreme Court in 1992, appointed as Additional Advocate General Sindh in March 1997 and resigned from such position in November 1998. Started teaching as Professor in S. M.

Government Law College in 1995 and till elevation remained engaged in such position. Towards professional experience, conducted cases of all nature, remained as Railway Standing Counsel, engaged with House Building Finance Corporation in High Court and Supreme Court, engaged as a WAPDA Counsel in superior Courts as well as Counsel of Pakistan Steel.

Muhammad Jawaid AlamMuhammad Jawaid Alam enrolled Advocate subordinate courts Sindh and Balochistan in 1975 and High Court in 1988. Appointed Addl. District & Sessions Judge Sindh 1991 and promoted as District & Sessions Judge in 1998 and posted in many pertinent judiciary posts. He was selected one of eight Special Judge Anti-Terrorism for Sindh in 1999 discharged

duties till 2000. He was appointed Judge of Accountability Court at Karachi in 2000 for 3 years and also held position of Administrative Judge Accountability Courts of Sindh. As he acquired Islamic and moderate judicial education side by side, he is one of the versatile intellectual in his own turf.

Barrister Farrukh Zia ShaikhBarrister Farrukh Zia Shaikh, enrolled as an Advocate, Sindh Bar Council, 1989. Called to the Bar by the Honourable Society of the Lincoln's Inn (London) on 1991. Lecturer in Laws, Sindh Muslim Law College, University of Karachi (Pakistan). He has held the position of Lecturer in Laws, Sindh Judicial Academy. Member, General Council of the Bar,

England and Wales. Member, International Bar Association, London, United Kingdom. Ex-Special Prosecutor, Anti Narcotics Force, Government of Pakistan. Author of Chapter on Pakistan in Enforcement of Foriegn Judgements and Hague Convention No: 28 (Child Abduction). Ex-Judge of the Honourable High Court of Sindh, Karachi

Justice (Retd.) Syed Ali Aslam Jafri Justice Syed Ali Aslam Jafri started his formal career in 1965. He became an Advocate of Sindh High Court in 1972 and practiced as an advocate of the Supreme Court of Pakistan from 1986 onwards. He was elevated as a Judge of Sind High Court in October 2000. He retired in October 2005. He was appointed the Federal Insurance Ombudsman in April 2006.

He has been an active member of the civil society and holds prominent positions in various forums, associations and organizations.

Justice Jafri has participated in various seminars and conferences and has also been affiliated with the field of legal education and has had held many eminent positions during the pursuit.

Justice (Retd.) Saiduzzaman SiddiquiJustice Saiduzzaman Siddiqui started his formal career as an Advocate High Court of West Pakistan in November 1963 and gradually elevated in cadre to the Judge of the High Court of Sind in 1980. He was appointed Chief Justice of High Court (Sind) in 1990, Judge of the Supreme Court of Pakistan in 1992 and Chief Justice of Pakistan/Chairman Pakistan Law

Commission on 1-7-1999. He was prematurely retired in 2000 as he declined to take fresh oath of office under PCO I OF 2000.

During his professional career he has attended copious conferences and seminars. He also presented four reports to the Islamic Conference of Foreign Ministers on the plight of Muslim minority in Bulgaria.

He has also held innumerous prestigious offices, in the government as well as various educational institutions in the country. In addition he has been an active member of the civil society and has been President/ Patron of multiple social welfare projects/ societies and forums.

Justice (R) Mushtaq A. MemonJustice (R) Mushtaq A. Memon started his Legal professional career in 1973, when he joined the Chambers of his father Mr. Ahmad Ali Memon, Advocate, but soon became an associate of Mr. Khalid M. Ishaque, Advocate, with whom he worked for almost 24 years until elevation as Additional Judge of the High Court of Sindh in 1997. He was confirmed as

Judge of the said Court in 1998, and ceased to hold the said office in, 2000. He has been practicing law on Constitutional and Civil Side since 27th January, 2000. He attended seminar on gender bias at Lahore in June 1998. In June 1999 he attended short course organized by the Commonwealth Institute for Judicial Educators at Halifax, Nova Scotia, Canada.

Thesis: (Verbal Presentation) economics, in our day and age has to be this, then our right automatically gets defined conceptually, has to be established as equity holders of the

Asalamualaikum to the jurists, legislated and has to be part of how we planet to be able to determine our

panellists and friends, I am afraid there view economics from our perspective. course forward. If we work on the same

are a couple of panellist missing, but analogy, and move forward and look at

nonetheless, for the time allocated to It is a good fortune for us to have a jury our own territory in the Islamic

me of twenty minutes and considering here comprising of very senior judges, Republic of Pakistan, we will see

the delay that has already taken place who will best be able to comment on another astounding figure that our

so far, instead of reading through the this subsequently, because the population stands at a 174.59 million

written part of the thesis, which has objective resolution, which is part of people while surface area of the globe

already been circulated, I will go on our constitution, alone does not make which is being occupied by us is only

explaining the explanation, if I may, in up for Islamizing the economic systems 976,096 square kilometres, so

the short period of time, which has which are prevalent on the planet. We apparently we have been robbed by

been allocate to me. are following an economic order, called about 11,709,304 odd square

the new world order; we are following To begin with, it will be very good for us kilometres of global space. This is the

economics for whatever is being dished to understand what is economics? and disparity which does exist insofar as

out to us, without really reflecting on when I have reflected on this, I have land is concerned.

our statuscome to the conclusion that it relates

Then we come to the printed paper, to our planet, it relates to the people There are basically two things to define

because when we have to define the who inhibit the planet, 6.93 Billion. here: the commonwealth of nature,

people who are inhibiting this They constitute what we call the which is being used, and the consumer,

particular planet, we also need a consumer and planet itself is the what is our status. From what I

definition for labour. So as equity resource available for these consumers understand, from what I have

holders we are deprived of our equity to use and to utilize. This particular researched and what I put on this

holding as it ought to be. This is why faculty of economics has been brought printed paper before you, it is simply

Islam does not recognize political midstream, as we see in our day and that whatever the population, are

territories. When it comes to labour, age. And since the principal equal owners of the commonwealth of

there is no equity in the medium of cornerstone of my reform papers has nature given to us by Allah (SWT) i.e.

exchange, we call money. A person been the reversion to our ideology, it the planet. To give you an example

digging a hole in a dessert in the United was incumbent upon me to have to where the disparity lies, where the

States get a different amount of money reflect upon what our ideology i.e. injustice lies, I would like to quote to

while a man doing the same labour with Islam has to say about the consumers you a figure:

the same skills in Thar in Pakistan will a n d t h e i r s t a t u s , a n d t h e

Total surface area of the planet is get probably 86 times less. So the commonwealth of nature, i.e. the

510,065,600 sq km and if we simply fundamental presentation right now in planet that we live on and we use for

divide this by 6.93 billion people which today's paper is the liberation of land consumption, for our clothing, for our

inhibit this earth, then individually, we and the liberation of labour. It is the abodes and for other things.

should all be owners of 73,602 square equity in the medium of exchange, we This legal definition, like every other meters of surface, which we are not; call money, which has to be viewed.terminology which is used in and should we be given the right to own

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Economic Reforms Seminar – Opening Thesis Paper

Mirza Shahnawaz Agha ispresenting his paper on“Economic Reforms” of THINK!as the Thesis Presenter.

Duration:Approx: 40 mins

Mirza Shahnawaz Agha was born in August of 1950, into a family of immigrant traders, and was brought up in the former East Pakistan; He went to the first cadet college in the country then and post graduation in commerce studied Islamic Jurisprudence as an apprentice to Dr. Muhammad Said Al-Awadi from Jaddah, Saudi Arabia.

He has had a career in trade and industry from the age of 18 and heads a few enterprises today; He proposed the re- structuring of the ministry of tourism, culture & sports to Government of Pakistan, as a consultant, enabling the declaration of tourism as an industry by the government of Pakistan.

During his professional career he has been an active member of the civil societies and has contributed his share and formalizing several public welfare projects.

To his credit are four books; “A rendezvous with Destiny”, “First Feelers”, “Decisive Edge” and “What is this thing called Religion for God sake” and many articles as a research scholar. He has been a active contributor to a reputed newspaper on political economy and social issues. A research scholar, he is very well traveled and exposed.

While this is the premise, when I sat on the first part of the paper, I would fundamental to being able to achieve down to write out this particular paper, like, because of the limitation of time, our own, or being able to implement I divided the paper into two parts, to move swiftly onto the measures that our own doctrine.because this is not a class of I have proposed in this paper. You see

The fourth factor of production i.e. economics, I am not going to be friends, I would like to also introduce

enterprise, represents the freewill of teaching you calculus here or telling to you a certain terminology, which in

man which addresses the ethos of his you statistical data. Part one entails this paper has been called “equity

being. He identifies a need, invents, that all factors of economic; all factors abuse”; this equity-abuse primarily is

produces, and proliferates after of production; all factors of that we do not have the land which our

research. This is the cornerstone of consumption and the status of the population deserves, we do not have

human survival and the marvel of self consumer have to be legally defined the liberty of labour because of

respecting right of existence. It cannot and made part of our constitution, they international protocols, which we are

be compromised. Today this particular have to be legislated and this is signatories to and therefore we have a

aspect of enterprise is regulated again fundamental, because on this will medium of exchange which is

by international protocols and it depend the politics of the country; on declassed! That is why the legal

reminds me again of something, which I this will depend the future planning hat definition of particularly, where a

saw probably in an Indian movie, that if this particular population can aspire to consumer with equity on the planet

they do something, if they commit have, on this will depend the decision stands, what ought to be his holding,

themselves to any form of enterprise, which are made for governance, on this and what ought to be his right in being

it is considered as marvellous, and if will depend the economic roadmap and able to choose who and how he is

we do it, it is considered as an act the destination for a country like governed, is fundamental for judicial

which is in breach of the will of the ourselves. activism insofar as economics is

international community. concerned. The second part of my paper relates to

This has to be also legislated. Having as a consequence of the legal Now if we move on swiftly to the gone beyond the factors of legislation, measures, which need to be legislate, package of what ought to be done to legal definition we can then address deals with, the various reforms we mitigate this particular problem, we'll the measures. I propose therefore the need to address to be able to achieve have to view the four factors of following measures:true independence, to be able to production: land, labour, capital and

protect our sovereignty, to be to have a enterprise. These again need ! We must look inwards, instead for place of respect in the community of definition. In my opinion and in my looking outwards for sustenancenations on this planet. So insofar as research, the status of land essentially

! There should be an absolute ban on the first part of the paper is concerned, cannot be freehold. The only freehold borrowing. There is no such thing I have already expressed to you my land is what comes to you by virtue of as borrowing. No nation has ever observations and my research insofar your birth right on the planet but that is risen to any position of respect as a as legislation is concerned, because got to be shared with everybody else consequence of borrowing. It is a unless this is done, we will keep who lives on the planet, therefore plague, it is like cancer, it is politicising amongst ourselves, we will whatever land is utilized by you has to disrespectful, it is not even logical.keep playing the blame game, but we be paid for in continuity to the state,

must realize in effect that the real for the lack of a better term, or to ! And if we do not stop picking up fault lies with the legal structure for society, on a continual basis. Finance Ministers which are ex-citi economics in the document we call our Similarly labour; no labour can be bankers, with all due respect to constitution, by which we are running captive and without compensation and any citi banker sitting here, we will and governing this country. And the categories of labour are limited to sink further. This has to come to an economics is right now the cornerstone the individual levels of civilization, end.of global politics. So as we view our which are ones mental and physical

! We have to find a place of plight today, I would like to quote a skills. This needs clear definition as respectability from the resources couplet which comes to my mind wellwe have. And mind you, the recurrently, and I think the poet is Capital is a consequence of labour resources we have, have been put Meer. input, based on a medium of exchange, on this piece of paper printed

which is free off any disparity before you. These are the

whatsoever. Therefore money is a statistics, which I have managed to

measure of labour and not a pick up, on which we can rely

commodity. Today money is being used We are in a bad shape, and we keep upon, and there are sufficient a as a commodity. Any if we take the US going back recurrently , pleading for population of 1 Billion people, we Dollar as an example, and then we will money. This is not the way an economic are only 174 Million. So let's not be see that that printed paper does not setup ought to be run, this is not how to naive. Let's roll up our sleeves, get have a very fancy picture on it, and is get a railroad going. And if I have been down, work and rise.not backed by real assets. It is backed able to communicate to you my basic by the barrel of the gun. So equity in ! We must seek to establish an reservations and my basic observation capital and the medium of exchange is economic quid pro quo with the

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rest of the world, and that can only languages spoken here and we are somebody has to pay taxes in happen if you have your own supposed to be bonded by an Pakistan, of all the taxes that are roadmap and destination, your ideology called Islam. Well let's there legal, he will end up paying destination is your independently just go for it, let's put it to test, PKR105 for every PKR 100 of his being able to manage your let's legislate, let's get bonded by income. We are neither following resource for your population. that. Ibn-e-Khuldoon, nor any Merchant.

We have a taxation system which ! We must seek to 'assetize' the ! Should we go for urbanization, it is

contains rules and regulations commonwealth of nature in our my submission, then the provincial

which exist from the 1800s. I political jurisdiction. And demarcation will become cultural

suggest for your consideration, and needless my saying what we hold boundaries and the three tier, or

I submit, that land revenue, in my right now, which probably the three parallel economies that we

limited research, is about the only research of Mr. Saad Amanullah, have in the country, one of the

levy that can be levied on a Muslim has made a great contribution in armed forces, one of the

population to fund the operations being able to tell us what this bureaucracy, one of the wretched

of government. Should you take country holds, but just to give you people, will come on an equal

the productivity index and should an idea, we have about 185 Billion plane, because they will be laws

you analyze the cost, the amount Tonnes of coal, 41.97889 Trillion that will determine how you

of revenue we collect today to run CFT of natural gas, reserves of commit yourselves to enterprise

the government from the present 1352 Million Tonnes of copper and and industrialization in this

budget, then the 56% population, there are other resources which country. These urban units can also

that exists in the country, which are not even tapped. Then we have become political constituencies in

are labourers, you have got the a lot of land which is good for the future and they will help unite

youngest labour force that exists agriculture, we have water a very very politically polarized

on the planet, will need to pay only resources, we have the biggest population that exists today.

PKR2.61 per square meter per human resource with us, we have

! From the economic point of view, annum. And I see no reason why we people who have with them the

should we do this then we can also should start taxing income, our ability to build a country, to build

move towards the optimum freedom to move, our freedom to our industry, to build our own area

utilization of our political territory transport and above all our of independent place in the

as it exists by making what we freedom to produce. Since we community of nations.

might refer to as Corporate have the youngest labour force, I ! My most important reform, which Pakistan. These urban units can have also sought that an effective

is being suggested today, is become companies which can be social security plan be put into urbanization. According to the quoted on the stock exchange. The place, because we are a country surveyor general of Pakistan there rest of the land can be utilized for where the land is not accurately are 3403 pockets of population in industrialization or agricultural demarcated. We do not have the this country. And I would like you purposes and we can introduce count to the last inch, as you have to use your vision, please walk with corporate forming. If the land in Switzerland, the head count, me and see if you can understand utilization is committed on the which is our labour force, there is what I am saying. If these pockets basis, or on a motto that not a no count because there are of population are urbanized on a single inch of our land will be non- po l i t i c a l de te r ren t s , and vertical basis throughout the productive, then viewing the K2 therefore, if you have the youngest country, and I mean vertical basis Mountain in the north or viewing labour force, you have to have a for the provision of power, for the the green turtles in the south will social security plan for the provision of food, for the provision all generate an income which will unemployed and you have to have of water, for the provision of keep the wheel of the economy your doors open for industriali-education, medical care and we moving, in fact sprinting. zation so that the unemployed do decentralize, we do fiscal get employed; either in the field of

! Another very important feature of decentralization, then you will be agriculture, or in the field of

the reform, that I seek, is land able to graduate the volume of mining or in the field of

revenue. You see, we are following production and you will be able to m e c h a n i c a l o r e l e c t r i c a l

a taxation pattern here which was g r a d u a t e t h e v o l u m e o f productions.

left by the colonists. Ibn-e-consumption and you will be able

Khuldoon, 600 years ago, made an ! There is another thing. In the to give a vertical growth to the

observation that over-taxation developed world, an aspect of industry in the country.

kills the incentive to labour. This is standardization has played a very ! I suggest this for Pakistan, where the re documented i n h i s very significant role. Whether

we make an unusual political Mukkadma. And an advisor of the there are roads, there is a territory. We have multi-racial State bank of Pakistan, Mr. sewerage system, there is an population, we have a variety of Merchant observed that if honestly educational system, there are

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! building standards, for everything substandard production. I thank you all for your time.you engineer, for everything you

! The last point which I have made in convert the commonwealth of

m y p a p e r i s f i s c a l a n d nature to a product which is

administrative decentralization consumable you need to fix and

with a strong centralized audit to determine standards. You have

maintain standards. So that we can Pakistan Standards institute. I

use our natural and human recommend that standardization

resources and to link them to should be taken up as a formal

complete transparent. This is all I activity and a Ministry should be

have to present for the moment. there to regulate everything that is being produced or everything that I must close my speech by this last is being dispensed including statement which I had written down services in the country. That will earlier, that we must seek a world cause uniformity all over, and that dependent on us instead of our will kill the current environment of remaining dependant on the world.

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1) Towards initiating these series of 'global-peace and harmony'. of-course referring to the seminars to THINK! This is the third leadership of hereditary usurpers

5) This paper addresses the primary in succession and on “ECONOMIC of the commonwealth-of-nature status of 'economic equity', by REFORMS”, as could be justified the Lords, Kings and Gods, of our comparison of 'which-is' and 'what-within the parameters of our times and their partners the ought-to-be'. It addresses the legal ideology, in the Islamic Republic of Holiness and Eminence and the status of the 'medium-of- Pakistan………. epitome of purity Personified and exchange'; the legal status of, the self-asserted! These leaders

2) All that is said here should not be 'commonwealth-of-nature'; the accept the economic Status Quo on construed as an interpretation of legal status of 'labour' and the legal the Globe, and in-effect murder any particular set of Ayats from the status of 'land'. It leans on the our existence before our birth!Holy Quran, instead extreme care Dictum of Allah to define these has only been taken to present a legal parameters. When we set out 7) This is no secret, and I am not the 'Reform plan', that will not breach to address the economic agenda of first to take cognizance of this. We the Dictum of Allah …. I have a country in this day and age where must identify, recognize, condemn therefore rel ied upon the political boundaries determine the and forsake the rule of this fundamentals of economics in raison d'être of a state we are Primitive Economic Order and Islam, as I could search with my really in denial of all human values move to the civilized level of global limited insight. for co-existence. We are in a State co-existence, by making an

o f E y e b a l l t o E y e b a l l example of this in the Islamic 3) All economics on this planet today confrontation for economic gain. Republic of Pakistan. I seek that we

is based on 'consumption' and non- We are reckoning with an order consider an economic order in corresponding 'production'. With a worse than the order of the jungle! consonance with our ideology and globe with restricted resources; We must seek 'to remain in the based upon sociology in Islam.restricted regeneration ability, and lead', what ever it takes, what ever growing consumption levels by the 8) When ever 'Change' is sought a the cost in human life, misery the population that inhibits it, the reason must justify the same. like. This is the so called 'New crises at hand is 'equity-abuse' There has to be a basis. A law, a World Order' effectively placed, The legalization of this abuse doctrine of law has to be followed. for us to follow, by a bunch of needs to be challenged with a With us, that law that doctrine is primitive hoods! This is in denial of better order socio-economic order. absent, and that has to be put into Human Civilization.

place. In our country where 4) Notwithstanding, the scenario 6) As though the misery and insult of research, awakening renaissance

above, the solution rests with economic subservience was not are absent probabilities, we have graduating and fixing the degree of enough, we people here, select a just about the Dictum of Allah to this 'equity-abuse'. The more we bunch of so called leaders in envy lean upon, away from Clerical reduce 'the abuse' the closer we get of riches and progeny who go thrust towards Mysticism. The to a state of universal brother- further to seal our fate in Human Race has not, and cannot, hood and the magic words called stagnation and or regression. I am go wrong in the adoption of this

Thesis: (Printed Distribution)

route for redemption. That is without disparity; and levels within society but free from documented history. deception; there will be an end to

13) Through a medium-of-exchange equity-abuse; Shoora (consultation 9) Reflecting on the economic (we call money) which will and consensus development) will

doctrine prescribed for us by Allah I manifest without disparity. With an blossom, Labour will seek to have arrived at some conclusions asset base so defined a person can liberate itself and land will not be which I submit here for us to and will only need to build upon his utilized without compensation. consider. Three basic reforms are income-stream which is directly The biggest gain of all will be the required: linked to his labour, research and treatment of money. It will turn

a) Liberation of Land; inventions. This will determine into a measure of labour and not a b) Liberation of Labour; and h i s /he r l e ve l o f r i g h t f u l commodity as is there, by design. c) Equity in the Medium-of-Exchange consumption and compensation of Last but not the least there will be

(we call money). labour-his/her wealth! equality in opportunity! The Super Power so assumed will be

10) Prior to defining the 'resource-for- 14) I can see a lot of people who, when constrained to make a paradigm consumption', it is basic to legally they take notice of this thought for shift from Gun Running to define the 'Consumer'. The Human the first time, will be delighted sustainable evolution of Human Population is divided in tribes with with their new found wealth! In the Civilization.their own cultures based upon Pakistan context if our population ecological conditions of the regions of 174,579,000 are each entitled to 17) Now friends, the above foregoing they respectively inhibit. This 0.0736 Sq. Km of land, then being the legal basis of change we population collectively are Pakistan should have been can very well differentiate from ' C o n s u m e r s ' i n p r i m a r y 12,849,458 Sq K.M. instead of what 'ought-to-be' and 'what is'.manifestation and they, and they 796.096 Sq KM. Some body has alone 'own the resource, the robbed us of our Right to 18) To mit igate therefore our Commonwealth-of-nature on the 11,709,304 Sq K.M of the Earth's wretchedness the option is just planet and beyond 'equally'; While surface! That somebody is none one: We need to revert to our we will address the means of else than ourselves. Restricted to ideology for the legal implications liberating land and labour, the our political territory however that are there for us to follow in legality of our action is most each Pakistani today's of the 174 economics.pertinent to establish, by us the million, is an equity holder of stake holders seeking change; We 19) With this as the premise I choose to 0.00456 Sq. Km of land in place of the stake-holding Consumers that present to you a plan entitled 0.0736 Sq. Km.inhabit this planet in-fact the SMALL IS BEAUTIFUL towards the Universe! Let me start with an 15) Nobody is taller it's just us, we are reforms we need to adopt to turn equation of simple arithmetic. In a kneeling down. We refuse to labour P a k i s t a n a r o u n d f r o m population of 6.93 billion people and therefore accept what is not wretchedness to glory and and the surface area 510,065,600 engineered by us, or even by our exemplary self-reliance. Sq K.M of the globe if divided will hidden deity of worship called

20) Before we seek measures for alone present each person as an Allah. We have chosen to accept change let us first legally define equity owner of 73,602 Sq Meters what ever was handed down to us the factors of 'Production' in the (0.0736 Sq. Km.) of area in which by our oppressors! It is like making context of our ideology; 21,491 Sq Meters will be land and our own idols and worshiping them!

52,110 Sq Meters would be water; 21) First Land = All land belongs to 16) I submit that in defending the Outer space and the universe have

Allah and therefore the right to socio-economic status-quo on the not been factored in this ownership cannot be without planet of today, the ailments and arithmetic! That is where the rental compensation to society in the evils of the socio-economic injunction that no Muslim can be continuity;plight will continue to remain for poor comes into reference!

the human race. This is simply and 22) Labour: No labour can be captive 11) If the premise of equal ownership evidently manifest. This is

and without compensation and, of this natural resource is ironically the political arena of our the categories of Labour are acceptable, the legal writ to day and age in history. Let's view limited to the individual levels of equitable sustenance becomes the down stream effects of legally civilization, which are one's mental consequently also acceptable; and acknowledging an equity holder. and physical skills.First each is equal to the other, and

12) When the ownership of the therefore has but one leverage 23) Capital: Capital is a consequence 'commonwealth-of-nature' and its over another human-being the

of labour input based on a medium-right to usage is legally equal, then ability to serve his kind: through of-exchange that is free of so will the definition of labour labour and a knowledge-base. d i s pa r i t y wha t soeve r and compensation gets established There will be competition in these therefore money is a measure of

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labour and not a commodity. 30) We must seek to assetize the 33) We must seek to run Government commonwealth-of-nature in our from Land Revenue alone and free

24) Enterprise: Enterprise represents political jurisdiction (territory); production and individual labour the 'free will of man' which The Coal Reserves of approx. 185 from all forms of taxes; Present addresses the ethos of his being. Billion Tonnes, Natural Gas, Governmental Budget (which is He identifies a need, invents, reserves of approx. 41.97889 bound to be re-defined under this produces and proliferates after Trillion CFT, Copper Reserves of Urbanization Plan) as a hypothesis research. This is the corner-stone 1352 Million Tonnes; Our mineral represents a figure of Pakistan of human survival and the marvel Reserves are all in captivity and Rupees 2,078,165 Million, while of the self-respecting right of need to be liberated to be the total land is 796,096 Sq km. existence. assetized and used. This offer's (again as hypothetical

indicates) Rs. 2,610,445 per sq. km 25) In view of all the foregoing above it 31) We must seek to instantly 'urbanize' per annum or Rs. 2.61 per sq.

is incumbent upon us to consider a the entire country for all 3403 meters per annum as land revenue 'road-map' and an economic pockets of population that for governance, and to this should destination' for our pocket of presently exist in the country be linked the future of taxation. global population (being the sixth (Courtesy Surveyor General of (Reference: Economic Survey of largest) in an exemplary way; Pakistan) on a vertical basis for Pakistan 2011)

power, water, education, health, 26) I have used the statistical data in civil defense, employment and at 34) We must seek to compensate

Table 1to lean upon for this paper. the best standards available to labour not deployed or un-mankind; We need to do this with employed through a social security

What constitute a state are indigenous natural Resources and plan which is effective, with an in-popu la t i on , te r r i t o r y and Human Resources. We do not need escapable headcount; the fiscal government. In our case the land is to borrow to build for a country like empowerment of the youngest not fully measured, the population Pakistan. This Reform is the bed- labour force on the Planet will not fully counted and the rock for igniting the economic ignite a generator of enterprise not government is constituted by a generator in the country. It is earlier witnessed in the country. doctrine alien to our ideology. envisaged that these urban units When a citizen is born, naturalized

wi l l become the pol i t ica l or hounoured with citizenship 27) Notwithstanding, the definitions constituencies of the future and she/he must be commissioned as

enumerated above are basic will enable decentralized fiscal an equity holder of the state. legislative changes that are management. It will also establish Her/His primary 'right' comes as his required towards achieving a road- markets formally for production entitlement to protected living, map for a socio-economic and consumption. Land revenue to and his/her obligation comes as a destination: run government will become contributor to 'production' as

simple and effective and the legally defined.Post these basic legislature anchors the Labour management will get

set of Reforms that are proposed 35) We must seek to standardize and optimized. Provinces will become herein this paper are appended regulate all aspects of production cultural boundaries as Islam does below: so that only the best comes into not recognize ethnic, racial or

existence; it is incumbent to political demarcations of territory 28) We must seek to look 'inwards' e s t a b l i s h a M i n i s t r y f o r in use of the one Ummah.

instead of 'outwards' for our Standardizing everything in the sustenance; No Nation has ever 32) We must seek outside the said country and this is sought in league made it to a place of respectability urban areas, to put land into with universities and research hubs and independence on borrowed optimum productivity. The that exist. money, and this is so because founding moto ought to be that: b o r r o w e d m o n e y i s n o n - 36) We must seek to lend support to not an inch of land can be non-representative of domestic labour. our medium-of-exchange (money) productive! This does not require

such that it gets equated with 'rocket science' to figure. As a 29) We must seek to establish our trading partners on one-to-one sample the Tourism Policy

socio-economic quid-pro-quo with basis. We must seek to attempt this prepared in 1989 by me for the the rest of world as that is the only by segregating trade into a partisan Government of Pakistan is enclosed shield in defense of sovereignty in divide for the Islamic and non herewith to display productivity. this politically divided world. Our Islamic trading partners; this From viewing the peak of the K2 special template and liberty to divide will trigger the resistance to Mountain to the Blind Dolphins and invent becomes our 'unique selling 'equity-abuse' globally and will the Green Turtles in the South all point' our exportable success bring about a fair legal order. This are economic profit centers pattern. Our road-map to real will make money tangible and the available for use.independence. objective to end this global heist of

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tourism and minerals exchanging tangible with an intangible l e a s e s a n d printed paper will become a concessions the like.milestone in clear sight. We have to

legally import in Rupees and export in the currency of the importer. 40) We must seek a

world dependent on us instead of our 37) We must seek common laws for r e m a i n i n g enterprise putting an end to dependant on the parallel economies within the world. country each, belonging to the

army, the bureaucracy and the wretched people. The Armed I know some economist Forces and the Bureaucracy have sitting in our midst will instilled fears in their employers, defend the Globa l the people to occupy economic Economic World order on profit centers. This must go. The grounds of the Super armed forces are defenders of our Power syndrome; on ideological frontiers universally notions of inflation, and the bureaucracy are but deflation stagflation and servants of the people. These roles fears of bridges being need to be excelled and not absent between larger diversified. circulated bank tenders

prior to corresponding g e n e r a t i o n o f 38) We must seek to back-integrate the production. These are bureaucracy (al l forms of protectors & defenders Government employment) into of the status quo. I can civil society, to uphold a common only offer to write their compensation bench-mark for fears on the tomb-stone labour across-the-board through of Adam Smith. These out the country. Today on the fears are redundant; Colonial pattern, we have Nations that do not dare servants, we the employers need into new frontiers of to salute. This is ridiculous. This is existence sink into the bureaucratic apartheid and a oblivion of regression deterrent in the evolving of a free and slavery. Wake-up country towards progress. Pakistan!Additionally, these servants of the

people unless placed as equals will never gauge the suffering of society. They cannot be retained Thank you all for your alienated and protected as 'holy- time.cows'.

39) We must seek F i sca l and Administrative De-centralization with a strong Centralized audit to maintain standards; To use our natural and human resources we need to link to a system of transparency that is devoid of the current politics of nothing. More, we have to address Land Management based on a template where we see the emergence of Corporate Pakistan. We should seek to agree on residential usage of land by individuals and the rest of the land should manifest for use as corporate entities. These are cities, ports, agricultural holdings,

TABLE 1GLOBAL STATISTICS:

TOTAL SQUARE AREA : 510,065,600 Sq. kmLAND : 148,939,100 (29.2%)WATER : 361,126,400 (70.8%)POPULATION : 6.93 Billion

PAKISTAN STATISTICS:TOTAL SURFACE AREA : 796,096 Sq. Km.TOTAL SURFACE AREA : 79.61 Million HectaresAGRICULTURAL LAND : 33.66 Million Hectares

Forests : 4.24 Million HectaresArable Land : 39.42 Million Hectares

Culturable Waste : 8.14 Million HectaresCultivated Area : 21.28 Million Hectares

Reported Area : 51.13 Million HectaresArea Not Reported : 22.48 Million Hectares

Overall Water Availability : 133.70 Million Acre FeetArea Irrigated by different sources : 19.67 Million Hectares

NATURAL RESOURCES:Aluminum : Over 74 Million TonnesIron Ore : 925 Million TonnesCopper : 1352 Million TonnesChromite Ore : 2.547 Million TonnesZinc / Lead : 23.72 Million TonnesCoal : 185 Billion TonnesGypsum / Anhydrite : 4850 Million TonnesPhosphates : 7 Million TonnesRock Salt : 600 Million TonnesGold : 2.24 Million OuncesMagnesite : 600 Million TonnesOil : 184 Million US BarrelsNatural Gas : 41.97889 Trillion CFT Natural Stones as Building Materialsi). Granite : 4140 Million Tonnesii). Marble and Onyx : 160.2 Million Tonnes

HUMAN RESOURCES:Total population : 174,579,000

th(6 most populated territory on the planet)

Urban : 61,626,387Rural : 112,952,613Male : 90,589,043 (51.89%)Female : 83,989,957 (48.11%)Labour Force Available : 54.92 Million (ages 15-65)Urban : 35.3%

BUDGET Rs. : 2,078,165,000,000

RELIGION:Muslim : 96.1%Minorities : 3.9%Land revenue yield based on the above budgeting out-lay is Rs. 1,718.56 p.a per sq meter but when paid for by a labour force of 54.92 million will mean Rs. 37,840 per person per year.

Source:1. Geological Survey of Pakistan, 20102. TIMES ALMANAC 20113. Provincial Agricultural Dept. Govt. of Pakistan4. Pakistan Statistical Yearbook 20115. Pakistan Economic Survey 2010-11

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Economic Reforms Seminar – Thesis Paper

Mr. Saad Amanullah Khan ispresenting his paper on“Economic Reforms” at THINK!

Duration:Approx: 13 mins 21secs

Saad Amanullah Khan is currently the Chief Executive Officer Gillette Pakistan. Before joining Gillette, Saad worked in P&G for 20 years with assignments in Switzerland, Saudi Arabia and Pakistan. In P&G his last assignment was Deputy General Manager and Finance Manager P&G Pakistan.

He holds an MBA from the University of Michigan other than two engineering degrees, both from University of Petroleum and Minerals, Dehran, in Systems Engineering (Automation) and Computer Science Engineering. Prior to his MBA, Saad has worked two years in Saudi Arabia with key assignments in Jubial and Yanbu industrial estates.

Saad is active on the social responsibility front and is the founding member of the Agha Khan's Patient Welfare Committee, President and founder of “Helper of HOPE”. In this NGO they currently run 2 hospitals, 2 formal and 96 information schools plus multiple Maternity & Health centers in Karachi and lower Sind impoverished areas. He conceptualized, led and delivered Rs 1 billion from USAID to the Bolton Market victims in an efficient and transparent form.

Among other activities Saad is an active member of the American Business Council (ABC), Chairman of the Taxation Sub-Committee for the last 4 years. He has also held the Vice Chairmanship of the Taxation Committee of Overseas Investor's Chamber of Commerce and Industry (OICCI) for 2 years.

This was an excellent article, in fact a fuel the economic development in today. These are God given resources in thought provoking thesis presented by Pakistan and start growing soon, in our land that we are not utilizing; these Mr. Shahnawaz Agha here. I agree that double digits, poverty which is already include nearly 50 % of the global copper the current economic model is clearly on the rise will become uncontrollable, reserve, which is in Pakistan, and we not working. Especially if you look at this will increase lawlessness as people are not even exporting a single ounce the last few years, billions of Dollars will be left hand to mouth and this in of copper today. We have world's worth of value has disappeared from turn will lead to anarchy, which we are second largest coal reserve that we the banks, you have seen the huge seeing even today in Karachi and some have all heard or read details about.financial crisis that just happened and other parts of the country.

The other point I wanted to make was the difference between the haves and

The reform plan that Mr. Shahnawaz that the maximum potential of our land the have-nots is increasing by the hour.

has presented has some concepts that can only be realized, however by Let me give you a flavour of the

to me are “gold nuggets” and great i m p l e m e n t i n g l a n d r e f o r m s . disparity by quoting some facts that I

food for thought, I will list them down Shahnawaz Sb. has alluded to the fact have collected in some of my other

as I read through them: of per person per square foot, but research.

frankly we are far away from this. We The first is that it is based on creating

The top 200 corporations globally are have to make sure that people own an economic equity and reducing

bigger than the world economies all their own land and we do not have equity abuse, where he has talked

put together excluding the top 12 disproportional sizes of land in the about liberation of land and labour and

economies. I repeat 200 corporations ownership of a few people. equity in the medium of exchange i.e.

are bigger than 172 countries;paper money, and how we have The fourth concept that I liked is,

Global economy is about USD 60 Trillion completely lost touch with the real asst “Citizens when born are made equity out of which top 12 economies are USD behind them; holders in the country they belong to.” 41 Trillion i.e. 71% of the global That is a very interesting concept since

The second concept that I found really economy rests in the top 12 countries; you are a part of Pakistan, there has to

interesting is that we need to look be something…

Top 500 corporations of the world form inwards; no one has become a success about 50% of the global economy. story on borrowed money, in fact you For example in our company, when you

become a slave and are dictated to be join Proctor and Gamble you I n l i gh t o f these fac t s the

the lender; automatically become a share holder, recommendation of Mr. Agha about

i.e. the company gives you a few eliminating equity abuse and somehow The third concept is using land as a real

shares, this inculcates a feeling of bringing in more equality makes a lot of asset and utilizing it to the maximum

ownership in the employee, thus sense. We have a problem here and potential. I will share with you some

i m p a c t i n g p e r f o r m a n c e a n d hence this debate. Personally, the mind boggling facts here. Pakistan has

dedication. It is called the stock timing of this debate could not have over USD 30 Trillion worth of resources,

ownership plan.been more perfect because if we do not which is 150 times the size of our GDP

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The fifth idea is eliminating the linked to land; and most of our industry If you cannot track it, forget it. concept of paper money, which today is is based in urban areas. I mean, Unfortunately in our country we do not no longer linked to any real tangible Pakistan is a huge country and when track progress, do not have goals, and asset and is just intangible printed you look at the unproductive parts, the do not have targets. And to me that is paper. Unfortunately many countries deserts, the mountains; it becomes a one of the biggest flaws of how the including Pakistan continue printing concept difficult to comprehend. government is running, because there paper money in order to meet their is no accountability. If you come to my

The second is taxation on land on a per requirements and inflation keeps company, or in fact any multinational

square foot basis. Today 80% of increasing on the side, in addition to that are successful, they have clear

Pakistan's GDP comes from industry and other adverse effects. goals, there are clear targets which are

service sectors and not from land per tracked on a quarterly basis, shared

The sixth idea that I liked was the day, which barely uses any land and are with the entire company and if there

concept of Centralized Audits to have located in urban industrial areasare gaps, people come together and

check and balance. I will use this Over 50% of labour is used by deliver the gaps. So to me clear targets

concept in the idea that I want to agriculture, which contributes only or key performance indices should be

propose to help Pakistan move ahead.20% to the GDP, so obviously there is a set for the country; monthly, quarterly,

The seventh idea was proper role of mismatch here and that is where I think yearly updates should be shared with army and bureaucracy, which is very one should use our capabilities and the overall population and Mr. important. Neither army nor the ideas for improvement because human Shahnawaz said, this should be bureaucracy is there to rule the resource is a key resource and we need overseen by a Central Audit people; to protect the gentry from to make sure that we improve our Committee, which should make sure Thor and threat is what the army agriculture so that either it becomes that people are doing what they are should be doing and to serve the people 50% of the economy and GDP or the supposed to do and if they are not, is what the bureaucracy should be labour implemented there is brought change the minister, change the doing. down. secretary, change the person and bring

in another who has the ability to The eighth idea was to establish a Now building on Mr. Shahnawaz's

deliver those goals.ministry of standardization to get the concept with my own mixture of best possible production results and experience, to me a workable model And finally, I love the concept, which I apply them to everything produced in would look something like follows: said earlier as well, to use Ministry of the country. That is very important Standards to keep quality of industry,

Economic development is the because if you want to compete services and agriculture in check. I will

cornerstone of survival; everything globally, you need to have best in class share with you a ground reality in

else follows. Poverty level will go production with the best ideas Pakistan. Overseas Chamber of

down, education will increase, health implemented and obviously checked. Commerce, a name you would have

will improve, and infrastructure will heard, has 180 multinationals as

The last concept is “run government improve. So economic development is members. These 180 companies are

from land revenue and free labour and the first thing we need to concentrate responsible for 29 30% of Pakistan's

production from any type of taxes”. on in Pakistan; because if you do not taxes. This is stated on their website.

That is great to hear and I think there is have economic development you are Can you imagine that? Do you know how

some truth and material to this but practically going back in time.many companies function in Pakistan...

frankly from the implementation point Each sector of the country delivers above 50,000 companies, out of which

of view I would love to sit with Mr. different returns on investment. only 180 companies pay 30% of the tax.

Shahnawaz and see how we can bring it Industry mining, agriculture, forestry, Now obviously these are global

to life.fishery are all part our economy, multinationals, but why are they doing

Now some of these ideas are great but because we have been gifted with sea, that? Because they have a certain too far from reality. Maybe 100 years land, minerals etc. culture, they have good governance, a go t he se cou ld have been they have clear strategies, and they

One must focus on the size of the prize. implemented before the current are focused. So I think there is a huge

We have to sit back as a country and economic reality was cast in stone, but opportunity here. Also these same 200

look at what is the return on today moving towards a world of or so companies are responsible for 20%

investment from different sector and “global coexistence” it is nearly of the GDP. This has to do with

based on the size of the prize, allocate impossible. Some of the ideas that I standards, quality product, they go to

resources to those sectors where we have concerns about are: the export market and they obviously

can get maximum benefit e.g. if fishery benefit from this.

The disproportional focus on land as a is not giving you much benefit, then measure and source of economic take the fisherman and apply him to On agriculture in Pakistan I did a study development undermines the potential something else more productive, and I compared our yield on rice, wheat of industry, services and manufacturing where you can get better returns. and other crops versus the best in class sectors, because these are not directly in the world. Like Egypt is best in class

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in rice. Our yield is less than 50% on all health will improve, jobs will be items. This is ridiculous, we are an created, people will be more satisfied. agricultural country. Our people are I don't care what form of government it probably not being taught proper is, democratic or not, my concern is a g r i c u l t u r a l t e c h n i q u e s a n d economic development and growing methodologies, like crop rotation etc., the country in double digits, otherwise let alone mechanization. this country has practically no future.

If you do not grow, if you are lower than So to me this is how we should

inflation, poverty will keep increasing approach the whole issue and just as a

and so things will go to the very end.source of information, I have written an article, “Pakistan as an Economic At the end Mr. Shahnawaz quoted and I Powerhouse”, just to show that if we would like to re-quotecan fix everything in Pakistan today,

“We must seek a world dependant onus like governance, mining, agriculture

instead of our remaining dependant on etc. we can take our per capita income

the world.”from USD 1000 to USD 5000, our GDP size from USD 170 Billion to USD 800 Yes it is possible by going beyond what Billion, we could be the size of Brazil is in this thesis but using some of the today. “golden nuggets” that have been

highlighted. I wish him all the best and I was in a meeting about 5 weeks ago in

hopefully if we can get some of these which the Ambassador of Japan was

ideas implemented in the economic present. There I learned of something

plan for Pakistan, we probably can very interesting. In 1960 Pakistan was

move forward.the top emerging market in Asia; people looked forward to coming to Thank you.Pakistan. At the time of revival of Japan, Tokyo Bank has opened their second branch in Pakistan; three Japanese companies came to Pakistan before they went anywhere else on the globe; Ayub Khan, the then President, went to Japan and the Emperor came to receive him at the airport, something he has never done. All this was because they thought of Pakistan as a country they would want to associate with. I do not know where we went wrong and lost our track. We do not want to go into the history of this whole thing but we as a country still have the resources, still have the same people and we can continue to grow. All we need is strong, sincere leadership, which is more concerned and committed to the welfare of the country and its citizens rather than their own benefit and gain. And once we can find that I am sure we can move on.

So at the end let me say the following:

Priority to me today is not to invest in education, health sector and other items but just two things are needed: strong inspirational leadership and economic development because if we have economic development, education will follow automatically,

16

Economic Reforms Seminar – Thesis Paper

Mr. Zahoor Motiwala ispresenting his paper on“Economic Reforms” at THINK!

Duration:Approx: 18 mins 13 secs

Mr. Muhammad Zahoor Motiwala was born in Chittagong, East Pakistan and his family came to Karachi in 1974. He holds an MBA from IBA, Karachi and a Law degree from S. M. Law College. In the last 25 years he worked in diverse areas like automobile; technology & telecom; financial services, and trading and has been associated with some of the big names in Pakistan's corporate sector.

Based in Lahore he is the CEO of WINCOM Private Limited, a telecomm infrastructure and O & M company of the Abu Dhabi Group. Before WINCOM, he was Group Head of Operations at the AKD Group of companies where, among other assignments, he was the CEO of TMT Ventures a venture capital company that invested in ideas in the area of technology, media and telecomm. He serves on the Board of Directors of many private companies; teaches business courses at various private universities and is associated with a few not-for-profit organizations and also serves the Executive Committee of Alliance Française de Karachi, the French cultural center.

An entrepreneur by temperament; micro enterprise, venture capital and youth empowerment are some of his areas of interest and he takes active part in mentoring and grooming of youth. He often speaks at seminars and symposia on issues of youth and on economics and business.

I have known Mirza Shahnawaz Agha for upon how we view it. But given the but it is not practical, not to my mind at almost 25 years and no marks for present global regime, give the manner least.guessing that he is a non-conformist in which the concept of “Islam-

Other than this issue, I think all the and I think people like him who, in the anything” is viewed through tainted

ideas put forward by Mirza Shahnawaz words of Martin Luther King, are lenses, I think these proposals,

Agha are important, are logical, are “creatively maladjusted”, are the ones especially the one pertaining to the

something that we as a nation, as a who actually think because reasonable commonwealth of nature as far as land

people, as a country, take note of and people sort of make do with whatever distr ibut ion is concerned, in

should try, inculcate and implement.is available and it is the unreasonable agreement with Saad, has been over people who try to change the status emphasized. I also think that this But where do you start? Changing the quo. Like I said earlier, I have been a proposal is not practical or possible, Minister, changing some laws, or great fan of his intellectual abilities. what I mean is that it is not practical changing the procedures and practices

for the immediate short term and that in one or two departments will not As I was reading through his paper

it is best that we try and achieve the make a difference. On top of this, if we yesterday, at the generic level, like

same objectives as we hope to achieve try and indulge in this debate, we will Saad, Sb. said, there are no

through the land distribution plan be made to confront the fact that our disagreements with the concept that

through other means like intellectuals system has rules and laws for many of “what is” is not what “what ought to

capital, industry etc. the things, deviation from which is the be”.

root cause for the current crisis. The So, to my mind, this idea of

So at the generic level I don't think we problem is that unless we as a nation commonwealth of land and equal

can disagree, the present economic are willingly and readily able to accept distribution of land among the

system is extremely lopsided, very un- and adopt certain things, no amount of populace is an idea which is very

universe friendly, in the sense that we legislation or discussion is going to sensitive; it is something that will stir

are depleting all types of resources help. Therefore, the problem in my up a proverbial hornets' nest, because

that we have been bestowed with; mind, in a wholistic perspective, if you go deeper into it, you will realize

there are a lot of economic disparities, keeping in mind all relevant facts, is that, forget the global land mass,

the person working in the desert of that we need to change our mindset, stating close to home, in Pakistan only,

Thar obviously does not get the same our thought process and our approach. the populated area ratio for the five

amount of money as somebody in the This concept presented by Shahnawaz provinces varies so drastically, that if

United States. Having said all this to Sb. to a 100 intellectually bestowed you advent onto the path of equal

me, as a student of economics and a individuals, in a cool, comfortable distribution of land, you will open a

person who has been a corporate environment can be discussed and Pandora's box of problems, including

creature almost all his life, and taking debated, but at end of the day, how do but not limited to practical,

a cue from Saad about plans, I think we implement it?administrative and others, thus making

that the ideas are definitely very the execution almost impossible. This To me, if we agree that this is the

interesting but at the same time very might be equity which we can spot on roadmap, that there should be equality

radical. Radical has a positive as well the conceptual level in this proposal in terms of at least opportunity if not

as a negative connotation depending

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land distribution because: legislations, it is just a question of consider if enough land revenue can be tweaking some of the regulations and generated to support the government

If they did exist a concept of equality of implementing some of the rules. machinery? What will be the per square

land distribution, than in human meter load? Is this load viable when

history someone or the other would at Other than that no one can disagree compared against production /

least have put it to test; that armed forces should not be in the utilization per square meter?

business of making money.If equal distribution of land was a

What I am suggestion is that there is a desired aspect or part of the economic A model where you have every

lot perhaps already on the ground, all regime in Islam than we would have individual, like you have compulsory

that is required is to review and tweak known of its implementation or an conscription in Iran and Israel,

them according to the need of today. attempt there-towards somewhere in conscripted into the army in addition

And as regarding the honest our very rich history of over 1400 years. to the professional armed forces, can

leadership, that too will require a be implemented and will require lesser

I would like to state on the record that I change in our attitude. We need to re effort and receive lesser resistance in

am not a Islamic Scholar nor a historian address our personal value system, and the context of acceptability.

so my information could be limited or what is our definition of success, how incomplete. Looking at these numbers and important we consider material

arithmetic I suddenly realized that aspects of life as compared to other But so far as the point regarding the

sitting in 2011 it is probably another 35 things. All these things pose a very big loans is concerned, Mirza Sahib is

years before we would be a 100 years challenge to us even today.absolutely right. No nation, no country,

old as a nation. If we start training our 1 no individual can ever grow with debt This plan proposed by Mr. Shahnawaz is

year old child today he will be one of burden. a desired goal but in order to get there

the decision makers and movers of the we need to plan and strategies on a

Resources, we have plenty, we know nation, sitting at a responsible position roadmap, taking very small steps

that; the potential of Thar coal has in next 35 years I think that is where we towards progress and success. I would

become a topic of general discussion. need to start.repeat here that the most important

Dr. Samar Mubarak has also recently Why do we not decide on a more target reform needed is a change in our

received some allocation, lets see oriented, short term agenda and start mindset both at individual and

what comes off that gasification thinking about where we want to see collective level. The only route for this

project. Yes there are lot of resources, Pakistan, as a nation, when it is 100 is education and the way to achieve is

yes there is potential and yes I agree years old? And try to through focus to bring together people from all walks

that we should look inwards and not activity bring about a change in the of life to prepare a policy where our

outwards and all these things even to educational and academic system? Like educational system will not only be

implement at the present level, forget I said earlier any child born today will in imparting information but knowledge;

the more difficult ones, will still 35 years be at a stable professional and more importantly creating better

require a shift in the way we think.position in one of the many sectors in human beings. Post discussion and

Today's Tribune has a headline this country, industry, bureaucracy, consensus development lets present it pertaining to “FBR has lied”, if we are academia, judiciary, armed forces, any to the policy makers, no matter who going to lie regarding statistics, lie to field. If that child is trained properly they are; lets exert some civil pressure ourselves, and not behave responsibly and brought up to be a responsible, on them and get these enacted.how can we grow or become stable? positive thinking, just, honest

And lets try and do things in a more individual who has a progressive

To quote an example of our attitude as achievable manner and perhaps one streak, in the future of this country

a nation, I am trying to extract some day we will reach that desired state.would be in safer hands.

information for Sindh government, on Thank you

behalf of a friend in USA, who wants to We can also address what type of invest in the Thar Coal project, but to constitutional frame work do we want no avail. How can we expect foreign Pakistan to have at 100? Lets bring investment to come into this country together all schools of thought; the with this lethargic and late back molvis, the intellectuals, the right attitude of the bureaucracy? wing, the left wing, the less educated

the more educated and come up with a What I am trying to say is that we need

draft, may be a new constitution which to change this attitude, this mind set,

will bring us to the kind of country we as a nation towards the way we

want to be when Pakistan turns 100 and discipline ourselves, the way we work.

than put in some practical aspects of This is something which needs

land reforms saying that only income immediate attention, something we

from land revenue should be used to need to start working on now! And

run the government. We need to these are areas where we have enough

18

Economic Reforms Seminar – Thesis Paper

Mr. Sohail Wajahat ispresenting his paper on“Economic Reforms” at THINK!

Duration:Approx: 27 mins 15 secs

Sohail Wajahat Siddiqui is currently the MD & CEO of Siemens Pakistan. A prominent name in Pakistan's corporate sector he holds an MS degree in Electronics from King's College, London. He is also the first Pakistani to head Siemens Pakistan.

His many accolades in the corporate sector include having served as President of the Overseas Investors Chamber of Commerce and Industry and as President of Management Association of Pakistan. He has also served as a Board Member of Pakistan Steel, KPT and KASB Bank. The government of Pakistan having recognized his business acumen also nominated him as Board member of EPZA, TDAP, STEVTA, EDB and PEC. He is currently the Chairman of Pakistan State Oil's Board of Management. He is serving on the Board as Member of the Pakistan Business Council (PBC). He has served and continues to serve as Board and Council Member of bodies like NUST, LUMS, IBA, KASBIT, AIESEC and the YPO/WPO.

He also plays an active role in charitable organizations like Pakistan Red Crescent Society (PRCS), Sindh Branch, Behbud Society of AKUH, Tabba Heart Institute and Rotary Club Metropolitan. Mr. Siddiqui was also a Member of the committee that chalked out the Engineering vision 2010 for Pakistan. In recognitions of his outstanding services to the country and to the cause of education and engineering industry in particular the President of Pakistan on 14th Aug 2006 conferred upon him the honor of Sitara-e-Imtiaz which was presented to him on 23rd March 2007.

WE, the representatives of the people education that we have heard from p r o f e s s i o n a l b o a r d s a n d o f P a k i s t a n , a f t e r m u t u a l other speakers. management to reform and consultations, have agreed to come · S i g n i f i c a n t n e w e c o n o m i c restructure these institutions together to develop a National opportunities because of greater without political interference. Economic Agenda (NEA) designed to integration of Pakistan's economy in · Eliminating non targeted subsidies promote economic welfare of all the the larger regional economy and phasing out the role of citizens of Pakistan. WE believe that · An improvement in the underlying gove rnmen t i n c ommod i t y the adoption and implementation of conditions which create both an operations, subsidies should not be this national economic agenda would internal and external security across the board but targeted, a lay the foundation for: threat to the nation Mercedes owner should not be · Sustained annual GDP growth rate in To achieve the above WE, the getting subsidised gas, or a home

excess of 6% accelerating to 8% as Signatories, have identified the owner in defence for cooking range, reforms take hold and a virtuous following Five Reform Areas that because he can afford to pay the cycle of increased savings and need to be urgently addressed: complete prices, while the supply investments is put into place. 1. Better Macroeconomic Management going into industries at a subsidised

· Reduction of inflation to a single of the Economy; rate will benefit the economy.digit level. · Reduction in the fiscal deficit to 3 · Once the fiscal situation stabilizes,

· Reduction in unemployment / 4% of the GDP in the next three gradually bringing down corporate underemployment rates. years through: tax rates to make them competitive

· Substantive reduction in poverty · Increase in the Tax-to-GDP ratio to with other emerging economies to through a combination of reduced 15 % in the next 5 years through attract investmentinflation , higher job creation, better collection of existing taxes 2. Energy for Growth: significantly increased targeted and a reform of the tax system by · Take urgent decisions to fast track social protection programs and skill adopting the principle of taxation the import of LNG development of the people regardless of source of income · Carry out an urgently needed

· Elimination of load shedding and gas · Bringing all sectors into a uniform revamp program for the existing shortages documented tax net assets in the power generation and

· Elimination of crowding out of · Setting a target of 10% Reduction in distribution system. private sector from the credit public sector waste both at the · Rationalize price distortions markets and enhancing the ability federal as well as the provincial between different fuel sources and of the private sector to increase level through implementation of different consumption segments investment the recommendations of the · Revisit the gas prices being offered

· A 50% increase in the next five years N a t i o n a l C o m m i s s i o n o n to E&P companies to encourage in the percentage of children in this Government Reforms. accelerated exploration and Country who enrol in, and stay in · Eliminating Public Sector Enterprise development of indigenous gas schools, this is the stress in (PSE) losses by empowering resources.

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· Carry out focused development economy or are able to put our The foregoing was a document thwork on other indigenous fuel young population to productive use. signed on 29 of April 2011, we are

sources particularly hydel and Thar The major areas requir ing hopeful that all tose who signed this coal. immediate consensus are: document will remain committed to

· Put in place a structured program to · The starting point is political will. the cause of bringing about deregulate the energy sector in the Demonstrate at federal and e c o n o m i c s t a b i l i t y a n d next 3-5 years. provincial level that education is development in our country.

· Have an integrated energy ministry priority one which, with the help of the best · Implementing legislation already in Now lets go to how it will be done and professionals available in the field, p lace to ensu re tha t the why it is essential. should oversee the implementation gove rnmen t i n c r ea se s t he • The key stakeholders are we, the of an integrated energy plan, thisi education budget by at least 0.5% of Pakistani, Investors, Multilateral ntergrated policy is now being GDP per annum so that it reaches 5% Agencies (IMF/World Bank Etc.) populated. Without energy we can of the GDP. • The citizens' perspective:forget about development, · Liaise with the provinces so that • Consumer price inflation has economic or otherwise. This is the after the 18th Amendment been on a rising trend. Dr. top agenda with other world p rov inces have a common Ashfaque will be in a better economies as well. curriculum. position to discuss these in detail

So this whole policy is 2010-25. Every · Retain HEC and modify its role in • L a c k o f e m p l o y m e n t topic which i have addressed is in consonance with the provisions of opportunities has also been on the form of solutions; practical the 18th amendment. the rise.solutions identifying where the · Substantially increase scope of • Lack of Economic Justice:manpower is, where the money will technical and vocational education • Rich don't pay fair share of taxescome from, who is going to · Incentivize private / not-for-profit • Government not able to control implement it and how it is going to sector participation cartel's (mafias)be implemented with a timeline. · Mainstream madrassah education, • Poor and unequal access to

3. Protecting the Poor: we do not want to eliminate the services and opportunities (gas, · Ensure government spending on madrassahs, we want to build on electricity, education, health

social protection is increased from them. These are our assets, the etc.)under 1% of GDP to close to 3% of setp-up, complete with the • The Multilateral PerspectiveGDP which is close to the regional manpower and resources, is no • The fiscal debt has been on the average, from where this will come, ground, we just need to train the rise, with the domestic and i will discuss with you a little later in trainers. external both forms of debt my presentation. 5. Regional Trade as a Growth Driver: increasing. The trend makes a

· Subsidies intended for the poor · Revisit the national security lot of difference in these should be targeted and monitored paradigm especially with respect to matters since reversal of trend is to ensure that the poor are the regional trade. a painstaking and time taking actual beneficiaries. All non · Develop a strategy for trade policy activity. targeted subsidies must be to use it to strengthen linkages with • Caught in a debt trap and unable eliminated our neighbors and beyond, the to survive without constant

· Fully leverage the capacity created strategy to also include a policy to external support, this is like in the public-private partnerships as promote transit trade. living on life support systems in delivery vehicles for targeted · Invest in supporting infrastructure. an ICU, where the removal of programs for the poor. · Grant India MFN status support would mean sudden

· New social protection programs in · Use the SAFTA framework to address deaththe areas of nutrition , employment non tariff barriers on both sides • Under taxed and poor ly and health insurance need to be · Creating an environment which documented economy designed and implemented fosters cross border investments • Intraregional Trade is absent in

· Rationalize and consolidate the This consensus document has been our region, while it easier, e x i s t i n g s o c i a l p r o tec t i on signed with the People of Pakistan simpler and more economical to i n s t r u m e n t s t o e l i m i n a t e as witness that WE, the Signatories, trade within the neighborhood. duplication and overlap. and the political parties that WE Unfortunately we are not on

4. Educating for the Future: represent are committed to the cordial terms with many of our The current system of education will objectives of this National neighbors, which not only not be able to take the Country to Economic Agenda and that WE will u n n a t u r a l b u t a l s o the next level of development; a work to ensure that it is d i s a d va n t a ge ou s t o t h e major shakeup is required before implemented for the greater good economy.we are able to become a knowledge of Pakistan and its Citizens.

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• Over and poorly regulated imports and develop the with global prices, for offshore economy indigenous energy resources. drilling

• Large, highly inefficient, cash • Take urgent & concrete steps to • For example KSE is generating draining public sector; it is not a sharply reduce public finance between PKR13-22, hydel is hidden secret that we are deficits. lesser. In mix energy we reach 12 making a loss of PKR 800 Billion • Overhaul the tax & tariff cents, because we are using the per annum in the public sector structure and bring all sectors wrong mix, we are not using which is equivalent to USD 10 into a uniform documented tax coa l , we a re us ing gas Billion. These are numbers I can net. inefficiently i.e. the same prove to the last penny. That • Reform and restructure public volume of fuel can produce 64 M business is not worth indulging in sector enterprises, starting with Watts, that we are currently that cannot generate revenues the transparent appointment of using to produce 18 M Watts. and reports a loss all the time. capable / professional top • Improvement of Public Finance:

• This is what causes circular debt, management and boards which Overhaul the tax structurefor which we have proposed are empowered to take the • Same rate of tax regardless of integrated energy ministry, in necessary actions. source of income. Bring all effect putting and end to the • Eliminate waste in Govt. exempted/severely under taxed blame game between WAPDA, expenditure. sectors in the tax netPSO, Sui Gas, OGDC etc. • Phase out broad based non • Lower the tax rate and remove

• The Investors Perspective targeted subsidies which all exemptions. • Out of control Public Spending unnecessarily benefit the well • Document the Economy

we do not have money to replace off also. • Revamp FBR. Deploy technologya gas turbine when needed, but • Significantly increase education, • Carry out strategic review of can fund purchase of an health and income support tariff structure to create level expens ive armoured car, e x p e n d i t u r e s ( t a r g e t e d p l a y i n g f i e l d f o r l o c a l a l t h o u g h b o t h c o s t subs id ie s ) fo r the most manufacturingapproximately the same. That is vulnerable segments of the • Check abuse/misuse Afghan what the mindset of our Society. Transit Trade/ under invoicing / government is. We should put • Strengthen intra-regional trade smugglingthe money where the return is linkages • Improvement of Public Finance: not into unproductive items. • Address the Severe energy crisis Reform, rest ructure and

• Pr ivate & Pub l ic Sector • Expedite LNG imports deregulateBorrowings - Heavy borrowing by • Eliminate pricing distortions • Reform and restructure public the government has resulted in between different fuels / sectors sector enterprisesclassic crowding out effect on created by GoP taxation / pricing • Create a "supra board" which borrowing , reducing private decisions. overseas the restructuring investments & driving down • Accelerate development of Thar program of all these PSE's private demand for credit. Coal; Thar coal is an available, • Take these PSE's out of control of

• Take a look at ths graph for credit ready resource, which requires line ministries and have the rating and absorb where we have only infrastructure to be "supra board" report to a come from. The purpose of established, not costing more parliamentary committee for showing you this graph is to bring than PKR 10 Billion, while it can restructuring.to light the fact that there is no produce billions of US Dollars • Appoint capable/professional need to be pessimistic. We do not every year. A private company top management and boards have a limitation of talent and can develop a mine, a gas plant, which are empowered and ability, despite the odds and but not roads and bridges, this is accountable. hurdles, we can achieve the job of the government • Mandate to r e fo rm and excellence. We need to only • Revamp ob so l e te powe r restructure these PSE's within decide to indulge in collective generation / distribution / two years.actions instead of only talking. transmission facilities • Focu sed and i n t eg r a ted

• The Solutions • Deregulate the sector to bring in deregulation of key sectors like • On a war footing address the innovation and allow market to ene rgy and ag r i cu l t u ra l

severe energy crisis by taking allocate molecules commoditiescritical reform decisions which • Accelerate gas exploration • Strengthen regulatory agencies tackle pricing distortions, through political initiatives by (CCP, OGRA, NEPRA, SECP) by production and distribution settling high prospective zones building capacity and ensuring i n e f f i c i e n c i e s , r e m o v e in Baluchistan & KP - offer high independence.bottlenecks for urgently needed incentives, which are consistent • Improvement of Public Finance:

21

Elimination of waste • Health insurance is of prime a l l men and women i n • Reduce size of Govt. structure by importance, in liberating the Afghanistan start shaving twice a

eliminating ministries and people of Pakistan from the day; the import of normal black subordinated institutions which clutches of the local leaders and tea in Afghanistan is four times add little or no value land-lords that are using them as that of Pakistan, despite the

• I n t r o d u c e s t r o n g e r slaves. facts that their population is only parliamentary oversight over • Reprioritizing expenditure 30 Million while ours is approx. Govt. expenditure, including (phased over three years) 200 Million, and that they defense expenditure, by primarily drink green tea. The strengthening parliamentary effect this has is that the same committees items are brought back into

• Make Freedom of Information Act • These are perfectly do-able. It is Pakistan and sold at lower rates. operational and provide citizens not a tall ask when a corporate is • Increase trade linkages with Iran access to Govt. expenditure, advised to reduced cost by with specific emphasis on energyparticularly by using information 10%,or increase revenue • Work for creation of a fully technology generation by 5% or even sublet/ integrated South/Central/ West

• In a nutshell, saving a dollar is as dispose off revenue guzzling Asia energy gridgood as earning a dollar, we need activities, then why would it be a • Expand trade linkages with Indiato be more stringent about what compl icated i s sue for a • Potential Energy Trade Flowswe are wasting, be those in the government. With the right f o r m o f e n e r g y l o s s e s , policy and the political will to administrative expenses or implement, these targets can be wasted resources. achieved in three years. These

• Increase education, health and small targets is achieved will • Energy is not as big a crisis as we income support expenditure have a big result of making 9% of are presenting it to be, the same

• Significantly enhance resources current GDP available for public crisis could be used to our for education, health and social benefit. advantage, if we focus on this.protection • Intra-Regional Trade Linkages:

• Instead of broad based subsidies • Revisit Afghan transit treaty to use targeted income support take care of Pakistani business In my closing remarks, I would like to programs concerns and address trade emphasize that just like fever is caused

• Use innovative strategies to opportunities with Afghanistan by a sore throat, the current economic provide education and health and Central Asia. To quote a few deterioration has its roots in the energy coverage examples, the volume of crisis. If this root cause is addresses,

• Enhance citizens engagement “Razors” that we have been there is no reason why we cannot set and oversight over public included in the Afghan Transit the balance right.education and health programs Treaty would be in excess even if Thank you.

• This graph is a summary of the complete presentation. (Fig. 1)

• A keen look at this image will allow you to understand that we are strategically located in the energy trade flow routes. (Fig. 2)

REPRIORITIZING EXPENDITUREPHASED OVER THREE YEARS

5% Improvement byincreasing Tax to GDP

Ratio by 5%

5% Improvement byincreasing Tax to GDP

Ratio by 5%

2% Improvement by10% Reduction in

Expenditure

2% Improvement by10% Reduction in

Expenditure

2% Improvement byelimination of PSEs

Losses

2% Improvement byelimination of PSEs

Losses

TotalImprovement

9%

TotalImprovement

9%

3.3% Reductionin Fiscal Deficit

5.7% Increasein Education,Health and

Income Supportexpenditure

India

Nepal Bhutan

Bangladesh

Iran

Uzbekistan Kyrgyzstan

Tajikistan

Sri Lanka

Potential Energy Trade FlowsPotential Energy Trade Flows

All units in Mtoe

Afghanistan

Pakistan

18

45

17

21

3

1

3

3

729 34

1

1

FIGURE 1 FIGURE 2

22

Let me begin by thanking this and issues must be seen separately as Economic and Social Commission of organization THINK! for inviting me and you will see in a moment, and what Asia and Pacific to prepare the non G20 giving me this opportunity to speak on consequences are for this type of countries response to the global the subject which is at the heart of problem that we are going through, as economic challenges which was everybody in this country. I will be far as the economy is concerned and presented in G20 meeting in Seoul, speaking on Pakistan's current the way forward. Korea. When I was discussing with economic challenges and particularly others in the panel, people were

I have listed challenges facing emphasizing the way forward. How it talking about Sri Lanka, Bangladesh but

Pakistan's economy. Pakistan's can be addressed? You have heard Pakistan did not figure anywhere. Just

economy is currently passing through couple of presentations in which four years ago, this is the same

the worst phase of his history. Both solutions are given, I will simply carry economy which was regarded as one of

economic and non-economic factors forward in slightly technical terms but the four fastest growing economies in

have contributed to this slide which has will be speaking in very public language the Asian region, along with India,

taken place at an unprecedented pace. so that everyone can understand. China and Vietnam. Goldman Sach, a

In just four years time, Pakistan has global investment bank, in the year

I have divided my presentation in 4 become a forgotten economy. Nobody 2000 identified four emerging

parts. In the first part I will list the key bothers about Pakistan anymore. In my countries in the world and according to

challenges and than there are issues, introduction you have heard that I was their view in the next 40 to 45 years

key issues, we are facing. Challenges one of the members of panel chosen by

Economic Reforms Seminar – Thesis Paper

Dr. Ashfaq Hasan Khan ispresenting his paper on“Economic Reforms” at THINK!

Duration:Approx: 45 mins 00 secs

Dr. Ashfaque Hasan Khan is currently the Principal and Dean, NUST Business School, Islamabad. Dr. Khan holds a Ph. D in economics from the Johns Hopkins University in USA. He joined the Pakistan Institute of Development Economics (PIDE) in 1979 as Research Economist, where he grew to Joint Director before being appointed Economic Advisor of the Ministry of Finance in March 1998. He was appointed Director General Special Secretary Finance/ Director General (- a position which he held until February 2009) of the Debt Office and of the Ministry of Finance in January 2003 and July 2007 simultaneously. Dr. Khan has been the spokesperson of the Government of Pakistan on economic issues for 11 years (March 1998 February 2009).

As a key member of the Government's economic team he was actively involved in preparing the reform program which was launched in early 2000 and provided vital policy inputs in framing the country's macroeconomic policies. He was the member of the core economic team which negotiated with the IMF for various financial packages, implemented the programs and finally brought the country out of the IMF Program in December 2004 and thus restored the country's financial sovereignty. Dr. Khan has been actively involved in the floatation of Pakistan's sovereign bonds including the Islamic bond (Sukuk) in the international debt capital market. He has also been involved in the issuance of Global Depository Receipts (GDRs) and Exchangeable Bonds in international equity markets.

As Consultant to the Secretary General SAARC, he prepared the Regional Study on Trade, Manufacturers and Services which served as the foundation for regional cooperation in South Asia including the establishment of the SAARC Chamber of Commerce and Industry. Dr. Khan is currently a member of the United Nations Expert Group, Economic and Social Commission for Asia and Pacific (ESCAP), Bangkok and was one of the experts assigned the task to prepare the views of the Asia-Pacific region on the world economy for presentation at the G-20 Summit, held in Seoul Korea in November 2010.

Dr. Khan has the distinction of being the most widely published economist of the country. He has published 9 books and more than 170 articles in national and international journals of economic science. His papers have appeared in the most prestigious journals of economic science published from Harvard University and University of Chicago. Dr. Khan has also the distinction of being a student of a Nobel Laureate in economics, Professor Lawrence R. Klein.

In recognition of his outstanding contribution to the field of economics and public policy he received the award of Sitara-i-Imtiaz in 2005. The Economic Cooperation Organization (ECO) also conferred him the ECO Excellence Award 2010 for his outstanding contribution in the field of economics.

23

these four countries will rule the world months in a row. This has never rise. It has increased by about USD economy. These countries were Brazil, happened before. This is impacting 20 billion within the last four years, Russia, India, China and recently they the people of Pakistan, particularly while it stood at approximately have added South Africa; this is also the fixed and poor income people. USD 40 billion in sixty years. Thanks known as BRICS. In 2005 Goldman Sach Pakistan has lived in a low inflation to Mr. Shaukat Tareen who signed a tried to find out who will be the next 11 environment and we have never contract for an unneeded USD 11 countries to join BRICS to rule the seen a high double digit inflation billion with IMF. Borrowing money world economy, and you will be persisting for so long. That is why from IMF does not help, infact only surprised that Pakistan was one of you see so many complaints from if IMF is standing support to a them. Together these are called the the people; the poor cannot country, it is enough to restore Next11. protect themselves from inflation, confidence of the global investor.

while the rich can because they We are stuck with a USD 11 billion So as Sohail said it is not that we have

have the capacity. loan which we will come out of only always been down, we have gone down

if we can repeat December 2004.today while we were at the very height · The root cause for all the above in global economic agenda, only a few points is a high budget deficit. · Foreign investment is declining years ago. So what made us slide so fast Budget deficit is the mother of all rapidly. It has gone down from USD and that is why I used the word that the economic problems, so any 8.5 billion in 2006 07 to less than pace of this decline is unprecedented. government that maintains fiscal USD 2.0 billion this year. Foreign Within a short span of four years an discipline and keeps budget deficit investors are losing confidence in economy at the helm of affairs has low can win the elections for many the economic management of this become a forgotten economy. What years. Unfortunately this is not in country.when wrong? As I have stated many the minds of our current political

· Security environment, power economic and non-economic factors leadership. Their uncertainty of sector crises are the other have contributed to this slide. I am not whether they will survive in power challenges confronting our going to go into that detail but I will tomorrow has led to fiscal economy today. I will not repeat come to the point that these are the profligacy. Turkey is an excellent what Mr. Sohail Wajahat has challenges that we are facing. You have example of financially disciplined already discussed at great length.heard from the private sector people government; their inflation used to

that investment has declined to a 40 be 100% per annum which has Now lets discuss some key issues. There years low 13.4% of GDP which was drastically been reduced as a result is a minor difference between issues 22.5% four years ago. A decline of of which the same government has and challenges.around 10% of GDP in investment is a recently been elected for a third

· I consider the new NFC awards an mat te r o f concern , because term.economic issue. This award is a investment is an input to growth.

· When deficit increases, i.e. the gap political award; there is no Without investment the wheel of b e t w e e n r e v e n u e a n d economic foundation behind this economy will stop turning and will expenditure, the larger this gap award. We have given whatever churn out lesser jobs and employment the more we borrow and the more anyone asked, received applause opportunities. This will result in an rapidly we accumulate debt. We and came back happy, without increase in unemployment, increase in have accumulated more debt realizing the effect and impact it poverty. Investment effects economy within the last four years than we will have in the future. So we have with a lag.had accumulated in the preceding sowed the seed for perpetual

· If investment has fallen to 40 years 60. it took us 60 years to economic crisis in this country. This low today what is in store for accumulate a debt of USD 4.8 in its self is a crime that we have growth in the next 3 to 5 years for trillion (1947 to 2007) and we have committed. We will discuss how to Pakistan? accumulated another USD 5.8 save ourselves of it a little later in

trillion in only 4 years (2007 to this presentation.· As a result of this declining 2011).

investment our economic growth · Remittances in Pakistan are rising has slowed from an average of · With debt increases the debt at a very fast pace; what is the almost 7% GDP to less than 3% per servicing. Four years ago our debt reason behind it? Where is this annum in the last 4 years. servicing was at approximately PKR money coming from? Has the

360 billion which now stands above number of expatriate Pakistanis · As a result of that both PKR 1000 billion. This extra amount doubled or tripled suddenly? Or has unemployment and poverty are on which is going into debt servicing the salary of all Pakistanis working the risecould have been spent towards abroad been tripled? Given the betterment of people.· For the first time in the history of global economic crisis, it is hard to

this country high double digit believe that the salaries of our · Our external debt is also on the

inflation is persistent for 46 people have gone up several times.

24

It is also hard to believe that given slowed down to 2.4% growth. At an · With an increased in fiscal deficit, the current international political average this is about 2.9% in the public debt increases. The graph of environment in different countries l a s t f o u r y e a r s v e r s u s public debt as a percentage of GDP are encouraging Pakistani workers approximately 7% in the previous 5 has taken an increasing trend and it to come and work. Than how are years. I repeat that the people are takes a lot of effort and time to remittances increasing by 26 27%? the same only the environment has reverse this trend. In 1999 our total

changed. public debt was equal to the size of Philippines is also one of the major

GDP which was reduced to 55% in remittance recipient countries in · The same industry which grew by

2007 and is on the rise again the world. Those of us who have about 20% in 2004-05 went into

currently approximately 60%.traveled, particularly to the Middle negative in 2008-09 and is now East, would have seen Philippine resting at a mere 1%. Many factors · The effect of debt is interest workers everywhere from the are contributing to this slow down payment. This is a committed airport to marhaba to services to in industrial activity. Law and order expenditure that no government all kind of shopping malls. Their being one of them. Karachi is a can reduce or cut. There is very remittances are growing by 3% per major growth pool in the country; little flexibility so far as current annum while ours are growing by if Karachi bleeds, rest of the expenditure is concerned because 26%. Why this mysterious increase country will bleed. the interest payment in 2000-01 in remittances is taking place and was 48% of total revenue, we

· Unemployment is on the rise, this is while I have been raising this reduced the fiscal deficit and in all linked with economic activity. question for quite sometime but to turn this interest payment reduced When the wheel of the economy is no avail. So I consider this an issue. to 24% and 2005-06, and now it is turning you need more hands to This is a kind of Dutch disease in on the rise again. When I say total support that activity which means economic terms. revenue, it includes what CBR creation of more jobs.

collects, what the provincial · There has been instability in the

governments collect, non-tax · Look at poverty; these are all economic team in the last four revenues, surcharges etc. all put linked to each other. In 2000-01 years. We have seen 4-5 finance together.34.5% people were living below the ministers, 4-5 finance secretaries,

poverty line which came down to 4-5 chairman CBR, change in the · External debt as a percentage of 17.2% in 2007-08, thus reduced to chief economist portfolio and 4 foreign exchange earnings is just one half. The same people are governors of State Bank. When like blood cholesterol level, if sitting in the bureaucracies who there is no stability in the higher than 200 you are in the were running the system then, but economic team how can we expect danger zone. If a person's something has changed.stability in the economy? This is a cholesterol is in the vicinity of 350,

point to ponder for us and more he is prone to heart attack, stroke · We have been living in a low importantly for the people in and is as good as dead. The same inflation environment for a very power; we have made ourselves analogy applies to a country in long time. In August 2007 the world into a joke for the international terms of external debt as a faced a food and fuel crisis, this community. percentage of foreign exchange was a global phenomenon, after

earnings. If this number is above which we saw a rise in inflation in Now let us look at the consequences of 200 we are in the danger zone. our country. Pakistan is an the forgoing;From 347% we had reduced it to economy integrated with the rest

· Investment has slid down from 122% which has now again of the world, we are not an island 22.5% to 13.4% in merely 4 years. increased to 148% and is rising.economy and hence we feel the The people are the same, so far as impact of global changes. Prices

· From USD 8.4 billion foreign civil servants and bureaucracy is came down and are on the rise investment in 2006-07 it has now concerned, but the environment again. This is a governance issue. If declined to USD 1.2 billion. The has changed. Civil servants are also a butcher demands PKR 300 per kg question we should be asking is human beings who respond to their you should be thankful that he did why? What has caused this environment, good environment not demand PKR 500 per kg unprecedented pace of decline?results in conductive, positive because there is nothing you can

work efforts and bad environment What is the way forward;do, there is no system to prevent has its own negative impact. him from over pricing.

· First things first is economy our · This is the same economy which priority? When I say OUR I mean · Fiscal deficit has increased again

was growing at a rate of 9% in 2004- that of the political leadership. I and this is the mother of economic 05 when it entered into the league believe that has not been the case problems. Any government which of four fastest growing economies in the last 4 years, so again first can reduce this to within 2.5 3% in the Asian region which has now thing is that the economy must be will be successful government.

25

brought at the center stage. it for 11 years, PIA, Railways, Steel to theft when employees dish Mill are a few examples, but they out free connections in their

· Once this is achieved, we need a come back to the same state. neighborhood. I know a family credible economic team. Why can't These cannot improve until they which i s rece iv ing f ree Sohail Wajahat and Asad Omer be a are privatized. Even if a party bids electricity even today, despite part of the economic team? They for PKR 1/- for PIA or PSM we should the fact that the man who was a know far better about our willingly part with it because we WAPDA employee is now dead. economic problems than those who will be saving PKR 300-400 billion The lady of the household when have landed in Pakistan from of tax payers money that we are leaving for vacations had left abroad after 2 to 4 decades, as a injecting into these bleeding PSE's, the air-conditioning running so guests whose family is still just to keep them a float. How long that her plants will not wither. stationed elsewhere. What would will we continue? Changing the This reckless attitude is only be the level of commitment of such management will not help. People because we have provided the person to this country? This is a like Tariq Kirmani and Zafar Ali opportunity.country of 170 million, with no Khan, very successful professionals

o We need to strengthen the dearth of talent among people who of the corporate world, could not have seen the thick and thin in this finance department of WAPDA.

do much for PIA. They brought country. They know the problems When we used to hold meetings

about marginal changes which because they have lived and of National Accounts Committee

were lost once they left. This is so experienced them. to prepare the numbers for GDP

because we have treated these and GNP, since WAPDA has a

institutions as employment · Fiscal discipline is a must and how major contribution, we use to a g e n c i e s , r e g a r d l e s s o f to achieve that is through reducing inquire from them 2 to 3 days productivity.the budget deficit and bringing it ahead. Every individual in the

down to between 2.5 to 3 percent · The issue of circular debt and finance department of WAPDA in the next 3 years. This will be power sector subsidies cannot be would revert with a different set achieved through raising revenues resolved through raising power of numbers and these are the and not through cutting down tariff alone. I have been harping numbers that drive the power expenditures. The expenditure this for the last 11 years, because tariff and the increase theirof. I needs to be rationalized. As we with the tariff the power theft will have no faith in these numbers have seen bulk of expenditure is increase in direct proportion and anymore.being made towards interest then a citizen who was paying a

o We have never given line loss payment. small sum towards revenue will not and theft targets to the owners

be a revenue source any more. This · Revenues are to be raised through of the distribution companies, single track mind set has to broadening the tax base, so that which has resulted in their lack change. These are to be addressed everyone puts in his share, of concern towards improving through:however small it be, instead of 1- their performance. So we need

2% of the population bearing the o Energy Audits of Power Plants, to give targets for them to load for the whole nation. This be those of WAPDA or IPPs. improve.should be regardless of the source These have become fuel

· In the case of NFC awards, as I said of income, it is not fair if 2 guzzlers. The volume of fuel earlier, we have sown the seed for individuals with similar income pay that these power plants are perpetual economic crisis in this taxes at different rates due to consuming for producing one country. Either we should difference in source. MFN (Most unit of electricity is enough to postponed the implementation for Favored Nation) mentioned by produce 3 units, this is 3 years or if that is not possible Sohai l Wajahat i s equal ly inefficient power. A number of than we need to put some binding applicable here. When we do this IPPs receive capacity payment constrains on the part of provincial we will be able to reduce the tax although they have become governments that they should rates. We need to also strengthen inefficient over time. We need come up with a targeted surplus in the tax administration which is to audit in order to gauge which their budget.currently very poor. power plants are efficient and

which are not so that there can I will give example of 2 budgets. · As I mentioned earlier, we need to be a targeted investment on The first for 2010-11, immediately rationalize expenditures. The those power plants which are after the announcement of NFC foremost step to be taken in this efficient and cost effective. award. The Finance Minister direction is outright privatization

announced target budget deficit of b leeding publ ic sector o What is the rational to provide 4% for Federal and 5% for enterprises (PSE). Restructuring is free electricity to employees of Provincial, so the provinces have to not the solution; I have attempted WAPDA and PEPCO which leads

26

produce 1% surplus. When the · The private sector is the engine of provincial assemblies passed their growth. The job of the government budgets, instead of 1% surplus is not providing employment but there was 1% additional deficit. In providing policy so that the private the budget of 2011-12,. The sector will some forward and Finance Minister announced target enhance their business hence budget deficit 4% for Federal and creating employment. There 4.6% for Provincial, so the should be constant and active provinces have to produce 0.6% engagement and dialogue with the surplus. When the provincial private sector. The Finance assemblies passed their budgets, Minister must come, as a routine, instead of 0.6% surplus there is to visit chambers, meet the private deficit. In July 2011 only, we are sec to r peop le and in s t i l l facing 4.7% deficit and the 4% confidence in them. There is a target has been forgotten. This will total disconnect in the current continue because there was no system between the political thinking behind the NFC awards. leadership and the private sector. This crisis will continue until This engine of economic growth is curtailed through CCI (Council of running out of fuel.Common Interest) or NEC (National

· Peace in Karachi (the major growth Economic Council) in the form of pole of the country) is sine quo non binding agreements for provinces.for economic g rowth and

· There is a need to re-look at the prosperity. If Karachi bleeds, the monitory policy and stop this adhoc economy of Pakistan will bleed. “Aspirin Approach”. Instead of Peace in Karachi will help mobilize tightening the monitory policy we more resources, more production, need to assess the cause for more exports and more jobs for the inflation. Whether it is because of people of Pakistan.excess demand in the market or

The day we realize this, our economic because of pressure from supplies

problems will be on the path to side and rising food and fuel prices.

solutions.This is similar to taking an aspirin for a headache without assessing Thank you.whether it is being caused by hypertension, lack of sleep, fatigue or something else. If the medicine of the doctor does not cure you for 40-45 months either the doctor will change the medicine or you will change the doctor. We are not being sensible enough to try some other remedy in the case of our monitory policy.

· Support price of wheat is highly inflationary. 10% increase in the support price of wheat increases inflation by 3%. We have doubled the support price and can feel the brunt of this even today. So we need to freeze the support price for another 2 years.

· We should not repeat Shaukat Tareen in the case of IMF. We should remain within our bounds and the size of next IMF program should not be more than 100% of the quota i.e. USD 1.3 1.5 billion.

27

enlightening. In my opinion he had in secure the welfare, happiness and I will give my own observations on this his mind a concept of a completely prosperity of mankind.” These are the session. It was a very good discussion. Islamic Welfare State in this country words which Qauid-e-Azam spoke in What i have been able to gather from not based on the economic system of 1948 and in my opinion these are true the discussion which has taken place the west. I will only read a paragraph of even today for the crisis this country is here today is that there are a few his speech, which he delivered on 01st facing. You see our country is under problems which have been identified July 1948 while he inaugurated the massive loan. Yesterday I was watching by the panellists. The top most State Bank of Pakistan. He said, “I shall a program and it was stated that PKR 12 problem which has been identified is watch with keenness the work of your Billion have been taken by the the deficit in the budget; the second Research Organization in evolving government as a domestic loan, which and the most important is the banking practices compatible with has exceeded all limits. In addition to privatization of the industries and exit Islamic ideas of social and economic this there is a loan of about USD 60 policy for the government to go out of life. The economic system of the West Billion on this country; how can a the business sector; because it has has created almost insoluble problems country which has a begging bowl in its rightly been pointed out that it is the for humanity and to many of us it hands all the time survive; only an job of the government to provide the appears that only a miracle can save it economic miracle can save it. lay down the policy, to govern the from disaster that is not facing the country and to provide safety and world. It has failed to do justice security to the citizens. It has also been between man and man and to pointed out that there are sick

industries or sick organizations which With a weak government, with a weak

are eating away a lot of our money infrastructure, with complete absence

which a taxpayer pays to the of accountability in this country, there

government and two of them are PSM is no hope in my view for the present to

and PIA and the amount of subsidy have an economic revival. I hope the

which the government is providing to government can take notice of some of

these two organizations is tremendous. suggestions by the panellists on this

Then there is the question of floor. The main question is whether the

corruption which had been identified present government has the political

and you would have seen in many talk-will to enforce these recommendations

shows and other documents that or not.

approximately PKR 500 Million is being You can see that the finance minister, taken by way of corruption every year.in his first speech when he was

These being the major problems which presenting the budget, has said there

have been discussed here the question should be austerity in the economy,

is who is going to bell the cat? Do you there should be financial discipline, era dicthink that the current government is the size of the cabinet should be ate friction from the international capable of enforcing all these reduced, but what has happened? field. On the contrary, it was largely suggestions which have been provided Immediately after the budget was responsible for the two world wars in today on this forum? In my opinion the passed, the budget provisions in the the last half century. The Western present government is incapable of presidency and in the prime minister world, in spite of its advantages, of enforcing any of the suggestions which secretariat have been increased. This mechanizat ion and industr ia l have been made at this forum for the is what we are doing; we are now used efficiency is today in a worse mess than purpose of increasing or improving the to of spending much more than we ever before in history. The adoption of economic health of this country. Unless earn. Western economic theory and practice the present system is done away with

will not help us in achieving our goal of If this goes on only God can help us or and a new system is installed I think it creating a happy and contended the people can rise and they can will be very difficult for us to come out people. We must work our destiny in demonstrate and they can bring about of the present economic crisis which our own way and present to the world a pressure on the present government we is confronting our country.an economic system based on true to resolve these problems perhaps it is

Pakistan was founded in the name of Islamic concept of equality of manhood only then that we will be able to Islam and a keen look at the early days and social justice. We will thereby be survive economically, otherwise God to assess what was the concept of fulfilling our mission as Muslims and will help us. Quaid-e-Azam Mohammad Ali Jinnah giving to humanity the message of

Thank you. when he addressed the nation is very peace which alone can save it and

Comments by CJP (Retd.) Saiduzzaman Siddiqui 00: 00:35:05

If this goes on only God can help us or the people can rise and they can demonstrate and they can bring about a pressure on the present government to resolve these problems perhaps it is only then that we will be able to survive economically, otherwise God will help us. CJP

Jury Comments

Ali (RA) has said that the rule of Actually the need of the hour is to heretical doctrine can survive but the change the system. So long as the 2% rule of injustice cannot.extortionist class keeps exploiting the

98% commoners, the capitalists, feudal I appreciate the work of Mr. Shahnawaz and land lord, in connivance with the Agha. In my sincere opinion, he has civil and military bureaucracy, keep given valuable suggestions and strengthening and supporting the proposed amendment in laws. The exploiters instead of reforms, no format should be such that the other system will be successful.panellists should debate the points raised by Mr. Agha and not go off on a Budgets are nothing but jugglery of tangent, deviating from the discussion. numbers, otherwise the fact of the

matter is that the expenses of the He has proposed land reforms. Let me bureaucracy, be it civil or military, share some interesting numbers with have become so exorbitant, that this you. In 1843, the British rulers of this poor nation is unable to afford it. area used to recover 49% of land Foreign debt and foreign aid is taken revenue, while now, the current for and spent on these extortionist system, with all its extravagant elite and not the masses.

So what we basically need to do is to reduce the size of the bureaucracy, to reduce the defence budget, to reduce non-developmental expenses and exhibit some discipline in spending a part of the tax revenue on the people who pay the taxes. It is not acceptable that the populace paying 65% of total tax revenue, receives only 5% of budget allocation. Nor can any system be implemented in such environment, neither can our country develop. Pakistan will develop through Rule of Law, through equality, through elimination of exploitation, through giving equal rights to all. We cannot

expenses is spending PKR 25,000/- to bring stability to this country by recover PKR 1/- in the same head. We establishing dictatorship in the guise of will need to assess the legal structure democracy or by passing malicious laws regarding the management of land, by bulldozing the opposition in the recovery of revenue, maintenance of assemblies.law and order among other essential considerations.Political stability is crucial for

economic development and political In the end I would like to thank Mr. stability will come through ensuring Agha, the THINK! Team and the the deliverance of rights of each and audience for their support and evident every citizen of the country, without concern. I will reiterate that for which the economic policies will keep economic development, unless we failing and there is no chance of provide justice, equality and rights to economic development, regardless of every single citizen of this country, no any change in government. It is evident plan will be effective. from history that wherever there was

tyranny and injustice, wherever the Thank you.rulers had dual standards for justice,

those nations were destroyed. Hazrat

Asset Management Company Limited

28

Comments by Justice (Retd.) Khalid Ali Z. Qazi00: 00:05:17

In 1843, the British rulers of this area used to recover 49% of land revenue, wh i l e now, the current system, with all its extravagant expenses is spending PKR 25,000/- to recover PKR 1/- in the same head.

. . . Jury Comments

OUR SUPPORTERSAND COLLABORATORS

ALL LOGOS ARE THE SOLEPROPERTY OF THEIR OWNERS

29

Comment: Salman Alvi

Question: Syed Muhammad Zaeem:

Question: Shoaib Shamsi:

Comment: Advocate Arshad

: Iqbal has said: are playing a very important role in our economic situation?Zara num hoto yeh mitti baree zarkhez destroying our youth. We should all

I hai saaqi, it is not about the presence work together to try and stop this

am a company executive while all my of talent it is about utilizing it. The abuse by our children. Secondly, like

life I have been a banker. Shahnawaz, issues we are currently discussing are the moderator pointed out, since we

thank you for a lovely presentation and effectively chapter III, what we are have now increased that age limit for

thesis, but all this is really a utopian missing is chapter I. the thing is that for civil service from 28 years to 45 years,

idea, but nevertheless this could be a l l these sugges t ions to be we are effectively looking at only 15

treated as a blue print. To conclude implemented, we need an infra years of service from an individual post

what Zahoor Motiwala has said, and I structure, we need law and order. A which he will demand pension and

liked it, we must have a focused, current example in this regard is the benefits; what kind of impact will this

processing approach to the whole KESC saga; a mere 500 individuals have on the government exchequer and

problem, where are we today and brought the whole city of Karachi to its on public money? Will his 15 years of

where we want to go and how do we get knees; the performance and services of service be worth the benefits that will

there? You have to have your focus the company was reduced to 50%, by be dished out to him? Thirdly in

rearranged with this and of course with individuals who are not terrorists, not connection to legislation, I would like

a vision statement on where you want hooligans. What kind of precedence to request the Honorable Jury to play

to see Pakistan in 50 or 100 years, and are we setting here? That the only their part in curtailing the creation and

then build up from this point onwards method of communication is blackmail implementation of unjust legislations.

in order to achieve it.and sabotage? If it t was KESC today, These are respected and exposed tomorrow it can be P&G or Siemens. people who have seen the problems at I will

very close range during their careers answer Salman's concern. There is only If we consider our sick industries we

and are more capable than those one recipe to resolution of your will realize that these are not sick

sitting in the legislative assemblies. It concern and it is called fiscal because we did not have potential but

the judiciary can come together for the empowerment. If you fiscally empower because we did not run them properly,

support of the people of this country, your population the attitude will because we politicized it, because we

we can be saved from whimsical and change; I have heard complaints all did not provide it the requisite support

baseless legislations that are being through of the Pakistani attitude, there and system, because we are under-

passed and loaded onto our shoulders is nothing wrong with the attitude. utilizing them, because we are not

and that too to no avail. There is an age old English saying that providing them the raw material. I

“all people are like all people, all times agree with Zahoor when he says that My question

are like all times, the world is his who before we venture onto reforms we is to Agha Sb. In particular and the

dares to conquer it”, In a state of need to save what we can from what complete panel in general, when we

poverty which is defined by one of the we have, save the current suffering talk about economic reforms, the

companions of our Prophet (SAW), it is industries from shutdown, utilize them economy of today and the future is

called “Red Death (Mout-al-ahmer)” to the full capacity. From where will we knowledge based economy. I am not

and poverty is our problem. The minute setup new industries when we do not going to indulge in rhetoric about

you empower your population that have any foreign investment coming education first, but even we are an

attitude will change and so will the into our country and all this is linked to agriculture based economy, we need to

situation and crisis.that same support that I am talking define our purpose and gain enough about, law and order is a part of this knowledge in the field to increase the Insofar as Mr. Shamsi is concerned, I requisite support. We need to first yield from the current 50%, as pointed would like to quote to you the times of ponder how to provide these elements out by one of the speakers, to its full the Chinese emperor when he asked his to the existing industries and economic capacity. I did not find in Shahnawaz court philosopher how he can rule activity before we start dreaming big Agha's paper due emphasis on forever, and the court philosopher told about setting up new ones. I will repeat knowledge based economy. If we take a him that the only way you can rule here that we have potential, we have closer look at the 120 corporations forever is open school; and he opened talent but we are not working on mentioned by multiple speakers, we 200 schools; and this was 2000 years supporting it and utilizing it. will see that the multiplication in their ago, so yes you are right. But as Saad

revenues is because of the continuous also observed, there can be no : I have a

knowledge enhancement and training possibility of education when there is few comments to make here, Firstly in

that they indulge in and impart to their no fiscal empowerment. If you need to the previous session also I had pointed

employees. My question in a nutshell is send your child to school, you need to out that the route to salvation is saving

why have we not laid stress on have the money to be able to send him the next generation from character

acquisition of knowledge to improve or the government must have the and moral deterioration; and mobiles

Answer: Mirza Shahnawaz Agha:

Q&A Session 1 & 2

30

money to be able to bring him to the not fake. I will be covering three speakers school. in my questions and comments. Firstly

Similar is the case of religion where we for Agha Sb., This was pure idealism

have no proper institutions or degrees and I am with you; I used to be of a

Responding to your concern about to identify Muftis and Maulanas. For similar opinion a long time back but so

focused approach, we at the Pakistan education, we go and join this far as equity proposition is concerned,

Business Council, started with 03 and profession only if we cannot land this is not going to work, like Mr.

now we are 31 business houses, have ourselves a better job, it is no more a Motiwala said that when we are talking

tried to get all the political parties to profession driven by passion and of equity the desire is there, taking

sign a common economic agenda, expertise. into account the non-conformism and

because if it is not focused by all the There are types of senses; sense, no all, but pure idealism. I have a major

political parties the moment one party sense, nonsense, nuisance and disagreement with you when you say

changes, the agenda normally changes, common sense; no sense and nonsense that education has to come after

which is not the way the economy can can also be termed as mentally economic emancipation. I personally

be run in any developed or civilized incapable and hence are forgiven, even think that we have a huge human

nation.by God, it is the nuisance that needs to resource pool and education has to go be addressed. The only mean to along with economic development; you address this nuisance is for people with cannot have economic development sense to come out make it common, without education. Though you are thus making it common sense; in other heading multinationals and have your On one side words intellectuals have to come out own experience, but this is a very there are exploiters and those who are and educate people and impart fundamental concept. We have got committing white collar crime and on knowledge so that more of us will be India across the border, just look at the other are people of unstable mind thinking on the same lines. In addition them, what happened and where did and between them are intellectuals. it is high time that intellectuals should we get left behind? Only in education. What do you think how much time do venture into these fields of politics, Their engine of growth is their human these intellectuals have while they can religion and education to improve the resource and education a small sustain between these two conditions?condition of our people. example is that they were controlling

It the world's call centers , with youth I is the job of the intellectuals to e m p l o y e d . S o e d u c a t i o n i s

want to ask Mr. Sohail Wajahat if in the educate the masses through such automatically a part of the engine that common economic agenda signed by all platforms. You can see that the media drives the economy. I will very strongly p o l i t i c a l p a r t i e s , t h e s e is present here and through them these d i f fer to say that economic recommendations made by Dr. discussions will reach the masses development without educational Ashfaque Hasan Khan have been resulting in building a social pressure advancement is not possible, it is incorporated? And I wish to recommend on the present government, which can simply not possible in as vacuum. And to Dr. Ashfaque that in addition to be categorized any manner. But for Ashfaque Sb. I have an observation discontinuation of the provision of fee building this social pressure through to share about 2007 and that period's electricity to the employees of WAPDA, platforms of this type, through the growth. I am only an ardent economic the free fuel to government employees media, through our writing is our job. reader, but I think that that growth in should also be discontinued. They can We should not become pessimistic the 2007 was a very strong consumer be given cash instead, which will situation will change. oriented growth, where we had these reduce the excess utilization of these

leasing companies dishing out cars and We have resources on one hand and will support credit cards, all kinds of loans; we were handed over three things in this the economy on the other. driven in that growth between 2005 country to illetrates and dolts;

Yes and 2007. I am an ex-army officer Education, Religion and Politics. No nearly all these points have been myself, but it was consumer driven and civil person is willing to indulge in included in the document. It was not the resultant inflation. The second politics. If you declare today that you possible for me to present the thing is that you have left us in a want to enter into politics, your friends complete docuemt here due to paucity dilemma regarding remittances. and family will respond by trying to tell of time, but it has been worked upon Please enlighten us where these are you that this is a business of hooligans extensively and is a comprehensive coming from and what is the negative and thugs, it is not safe, not an activity policy document that can be impact. As a member of the general for civilized persons. For politics I say implemented. public, I thought it was very positive. this because a major proportion of our

parliamentarians are running around trying to prove that their degrees are

Answer: Sohail Wajahat Siddiqui:

Question and Answer Session 2

Answer: Dr. Ashfaque Hasan Khan:

Answer: Sohail Wajahat:

Answer: Sohail Wajahat Siddiqui:

Answer: Saad Amanullah Khan:

Zaidi:

Question: Sohail Hameed:

Question: Admiral (Retd.) Farooq:

Question: Major (Retd.) Hasan Akhtar

. . . . . continued Q&A Session 1 & 2

31

Throughout my life I have been a very some mal-intention checked by the rating that we were able to bring strong supporter of education and Supreme court. Regarding the state of foreign investment into the country. health, but here I ma trying to set the Railway today, I believe the Insofar as the team is concerned, you priority. if you open a school today, the Railway Minister that it is because of can read the document submitted by impact will definitely come but in ten your government's bad selection of the current government to the IMF, years, but if you do not have economic Chinese Engines, 293 Millio worth one which is available on their website, growth even for one year the same stock of engines, which are a total about the previous economic team. It is schools will shut down. I agree 100% liability on them. So these things must completely full of praises.that economic development cannot be also be quoted and considered. 2006

We achieved without educational growth the fuel prices were rising. Your

discussed privatization and how these but my point is that educational government checked that, kept it at an

bleeding organizations should be development will an auto effect of artificial level, and when this

privatized, but we also on the flip side economic growth, when jobs will be government came, the dam broke and

see our bad experience regarding created and people will have enough to we were in trouble. Therefore your

whatever has been privatized thus far, survive, they will automatically be presentation, only to prove that the

an example being KESC. So when the driven towards improvement in the previous government was better than

government wants to get out of standard of living, thus affecting both the current government is immaterial.

business sector is it not of immense health and education sectors. As a common man, with no economic

importance that you think through the knowledge, even I know that this is no

privatization policy and that you soup-rocket science. The problem is lack of

I will start my question by quoting up your regulator, be it NEPRA, SECP, good governance in this country.

two statements that I heard during one PTA, State Bank, any regulator that you seminar during training in France. The Let look at, there is a lot that has been left f i nance M in i s te r s ta r ted h i s me begin with consumer oriented to be desired from their performance presentation by saying that “the g r o w t h . I n G D P e s t i m a t i o n perspective and from their capacity figures I am going to present, you don't consumption has an 80% weight-age, so building perspective?have to believe them, because no matter how small the growth, based

statistics are like a bikini, what they on the weight-age, it is always

Privatization is not in dispute, because show is sensational, what they hide is consumer oriented growth; and what is

it not the job of the government to run vital,” second statement he made, and wrong with that? The whole world is

factories, utilities or trains because this is 1989 time frame, he said, “after operating on the same format; if USA

civil servants are not trained to do second world war, two economies have today is insisting that China should

businesses. The problems arise when grown to excellence i.e. Japan and increase their local consumption and

you don't privatize to the right person, Germany; and these two countries change their export oriented policy

that is a place where your judgment have never produced an economist that is only because they want to strike

can be wrong, but privatization in itself worth a name at the international level a balance in trade. We had woken up to

is not in dispute. and contrarily, the third world the idea very late. countries have world class economists

So far as remittances are concerned, I yet they are the poorest countries, I

did not say it was good or bad, my only don't know where is the disconnect.”

concern is that it is mysterious! What Sir your figures were genrally covering

will happen if these Dollars that we your period, 1999 when your

have become so habitual to fade away? government came and 2007 when it

Or even come down to a normal 10 ended. I would like to say that these

12%?figures alone mean nothing. 1999 was a period when we had this nuclear bomb The growth figures presented here explosion and we were under economic were quoted from 1991. The idea is not sanctions. So the figures projecting to compare two governments and those days are not realistic in prove one more worthy, but to identify projecting lack of governance or mis- the problem and advise and solution. governance. In 2007, I will quote some Mr. Sohail Wajahat mentioned rating incidences. Your government, your agency ratings which had gone up from Prime Minister, was involved in a very “B” to “B+” and has now slid down to big scandal of Stock Exchange, not “C”. These ratings were also achieved des ign ing the tax s t ructure, on the basis of these numbers only and privatization was also stained with it was because of these numbers and

Question: Zahoor Motiwala:

Question: AVM (Retd.) Dr. Abid M. Rao:

Answer: Dr. Ashfaque Hasan Khan:

Answer: Dr. Ashfaque Hasan Khan:

. . . . . continued Q&A Session 1 & 2

32

Eventthrough theLens

Eventthrough theLens

33

1) CJP (R) Saiduzzaman Siddiqui 2) Justice (R) S. Ali Aslam Jaffri3) Justice (R) Khalid Ali Z. Qazi 4) Justice (R) S. Mehmood Alam

9) Mr. Saad Amanullah – CEO Gillette10) Mr. Sohail Wajahat – CEO Siemens Pak11) Mr. Zahoor Motiwala – CEO Wincom12) Dr. Ashfaque Hasan Khan – Professor

5) Justice (R) Munib Ahmed Khan6) Barrister Farrukh Zia Sheikh7) Advocate M. Jawaid Alam8) Mirza Shahnawaz Agha

24

13) Mirza S. Agha14) Qirat15) Audience16) Mrs. Agha (Cntr)17) CJP Saiduzzan18-19) Q&A20) Justice Khalid21) Barrister Farrukh22) Huma Agha23) L-R F.Zia Sheikh, Mahmood Alam and Qazi Khalid Group

24) Justice Javed Alam 27) Senator Haseeb (Right)

25) Justice (R) S. Ali Aslam Jafri

26) Justice(R) Munib Ahmed

Event Glimpses

34

Jury Meeting through the LensA meeting was arranged by the THINK! platform on

On 19th September, 2011at Karachi Sheraton Hotel, at 08:00 p.m.

just for the jury members.

Pakistan is a rich nation, in terms of land, minerals, human resources amongst others. We need to initiate the process of urban-ization, industriali-zation, standardiz-ation and assetiza-tion of all resources of the country,”

Mirza Shahnawaz Agha.

“With a weak government and a weak infrastructure, there is no hope for economic revival, until the people rise and bring about a change,”

Chief Justice (Retd) Saiduzzaman Siddiqui.

“Economic emancipation of the people is an essential

requirement before we can address any other

developmental strategies for our country,”

Justice (Retd.) S. Ali Aslam Jafri.

“Unless we eliminate economic exploitation and provide equal rights to all

people, regardless of caste, colour and creed, our

country will not develop,” Justice (R)Khalid Ali Z. Qazi

“The need of the hour to derive a plan for socio-

economic development, with the involvement of people

from all walks of life, which is not only in accordance with the Islamic Economic System but also is based on consensus,” Justice (Retd.)

Mehmood Alam Rizvi

“The economic system of the west will continue to damage our very foundation, until we

are able to establish a system of socio-economic

equality,”Justice (Retd.) Munib

Ahmed Khan

The agenda was to get a Verdict on the drive.The meeting was a success by the time Dinner was over

a unanimous decision to continue the drive was achieved.

The VerdictTHE VERDICT

OMembers of the Jury:

Chief Justice of Pakistan (Retd.) Saiduzzaman Siddiqui

Justice (Retd. )Syed Ali Aslam Jafri

Justice (Retd.)Khalid Ali Z. Qazi

Justice (Retd.)Mehmood Alam Rizvi

Justice (Retd.) Munib Ahmed Khan

Members of the Jury:

Chief Justice of Pakistan (Retd.) Saiduzzaman Siddiqui

Justice (Retd. )Syed Ali Aslam Jafri

Justice (Retd.)Khalid Ali Z. Qazi

Justice (Retd.)Mehmood Alam Rizvi

Justice (Retd.) Munib Ahmed Khan

Members of the THINK Platform;

Mirza Shahnawaz Agha (Declarant)

Ms. Nazish Shah (Chief Executive Officer)

Members of the THINK Platform;

Mirza Shahnawaz Agha (Declarant)

Ms. Nazish Shah (Chief Executive Officer)

Post careful deliberation and discussion on the proceedings of the preceding seminar, conducted on the 23rd day of July, 2011, the members of the Jury unanimously agreed that:

1. That the current economic order of the world (also in use by us) is oppressive and anti Islamic and therefore against the ideology of the state of the Islamic Republic of Pakistan.

2. That the economic philosophy in Islam warrants the establishment of 'equity' across the board and this essentially implies legally defining of the tools of 'production' and 'consumption'.

3. The 'Economic Reforms' paper submitted, and deliberated upon, provides clear direction towards legislative and uniform practice that ought to be upheld to reduce if not eliminate 'equity- abuse' the world over, supportive of basic human rights.

4. That the paper deliberated upon provides a remedy to the current plight and in tandem establishes the road-map for economic independence freeing the state from alien dependence to a large extent.

5. It is recommended that this process of seminars initiated by THINK! need to continue.

Post careful deliberation and discussion on the proceedings of the preceding seminar, conducted on the 23rd day of July, 2011, the members of the Jury unanimously agreed that:

1. That the current economic order of the world (also in use by us) is oppressive and anti Islamic and therefore against the ideology of the state of the Islamic Republic of Pakistan.

2. That the economic philosophy in Islam warrants the establishment of 'equity' across the board and this essentially implies legally defining of the tools of 'production' and 'consumption'.

3. The 'Economic Reforms' paper submitted, and deliberated upon, provides clear direction towards legislative and uniform practice that ought to be upheld to reduce if not eliminate 'equity- abuse' the world over, supportive of basic human rights.

4. That the paper deliberated upon provides a remedy to the current plight and in tandem establishes the road-map for economic independence freeing the state from alien dependence to a large extent.

5. It is recommended that this process of seminars initiated by THINK! need to continue.

membersn this 19th day of September 2011 in the presence of the following honourable of the Jury and Members of the THINK! platform;

membersn this 19th day of September 2011 in the presence of the following honourable of the Jury and Members of the THINK! platform;

Saiduzzaman Siddiqui

Chief Justice of Pakistan (Retd.)

Saiduzzaman Siddiqui

Chief Justice of Pakistan (Retd.)

Khalid Ali Z. Qazi

Justice (Retd.)

Munib Ahmed Khan

Justice (Retd.)

Khalid Ali Z. Qazi

Munib Ahmed Khan

Justice (Retd.)

Justice (Retd.)

For and on behalf of the JuryFor and on behalf of the Jury

Farrukh Zia Shaikh

Barrister (Former Judge of Sind High Court)

Jawaid Alam

Advocate (Former District Judge)

Farrukh Zia Shaikh

Jawaid Alam

Barrister (Former Judge of Sind High Court)

Advocate (Former District Judge)

Syed Ali Aslam Jafri

Justice (Retd.)

Syed Mehmood Alam Rizvi

Justice (Retd.)

Syed Ali Aslam Jafri

Syed Mehmood Alam Rizvi

Justice (Retd.)

Justice (Retd.)

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