Pakistan far from being an ‘economic calamity’

http://dawn.com/2013/03/06/pakistan-far-from-being-an-economic-calamity/

LAHORE: State Bank of Pakistan (SBP) Governor Yaseen Anwar expressed full confidence in the country’s economy and was hopeful of its ability to pull through the difficult times facing it.

Speaking at the Naval War College on Tuesday, the governor described Pakistan’s current economic situation as “less than optimal” but said it was also “very far from what may be described as an economic calamity”.

“Pakistan has never defaulted on its international and domestic debts. In fact, the economy has grown consistently – though not spectacularly – over the past six decades despite periods of international alienation and sanctions, three expensive wars, two hostile fronts, regular political upheavals, social unrest, sharp increases in the price of oil, and much, much more,” the governor noted.

He said the SBP had always ensured that the financial system remained safe and stable. “The robustness of our financial system is a direct consequence of the reforms process and the bank’s constant vigilance,” he said.

He said there was a lot that could be improved in the country’s financial system and called for development of efficient debt markets, even better regulatory and reporting practices, and the broadening of financial sector’s scope to include largely un-banked sectors of the economy like agriculture, small and medium enterprises and housing.

“Despite this wish list, the fact remains that our financial system is by design secure and does not pose any threat to the economy as a whole,” he added. Informal Economy Harming Country

The governor pointed out that the size of Pakistan’s undocumented economy was – by some estimates – as large as the formal economy. “The informal economy does not file taxes and while it does absorb a significant chunk of the labour force, it also evades corporate and labour laws,” he said.

He said although close informal relationships did make the economy more resilient, they did so at a cost to the overall economy by eroding the ambit of the regulators.
“Ideally, we, at the SBP, would like to see a smaller informal economy, while society retains the structure that has made it so resilient,” he said.

He stressed the need for greater integration of country’s domestic market with global markets but observed it did not mean that we should not have proper controls and mechanisms in place to safeguard our own interests.

“Greater integration with financial markets will mean that capital will flow more quickly through our borders. It’s definitely something that will boost the economy, but, as most East Asian countries learned in the 90s, it can be a double-edged sword. Therefore, having some capital controls in place, which reduce the volatility of capital flows, is a necessary regulation in this day and age” he noted.

He also emphasised the need for more effective regulations for the economy and said it was an essential part of what was needed today to get the economy on a track for steady and sustainable growth. He said the government’s footprint in some sectors of the economy was very large, and quite negligible in other sectors.

“Such divergence is unhealthy. Effective regulation is sorely lacking in other sectors. The tax machinery can be tightened considerably. One of the country’s most challenging problems today is the size of the fiscal deficit – and a large part of the solution lies in increasing our tax base by enac-ting regulation that encourages tax compliance, and punishes tax evasion.”

Sindh Development Monitoring‏

There is widespread feeling that while a lot of funds are being allocated for development of different parts of Sindh, actual development on ground is significantly less. Why is that?

We have been discussing this subject with many friends in drawing room discussions and on dinner tables accross Sindh.

This evening, we did the same in discussion with visiting attorney from Sindh, sain Ghulam Shabir Babar. A very important point emerged. We need some emperical data and base in order to have a meaningful dialogue among ourselves as well as with government, international donors and other stakeholders.

A possible first step in this direction is to establish SINDH DEVELOPMENT MONITORING CELL. Let us start with collecting data on allocated budget, actual spending and physical achievements on district level. For example, let us find out, how much money was allocated for Dadu and for what development projects. How much was spent and what was achieved. There is a strong suspicion that about 40% or moreof the money may have been siphoned off. Once we have collected sufficient data, on Sindh, we can confront relevent agencies and expose the culprits who have stolen Sindh’s scarce resources. Eventually, we can move towards punishing them as well as ensduring that future resources will be used propoerly.

Sindh development Institute and many other friends will be willing to support this program for long term betterment of our community. Ofcourse, the ground work has to be done in Sindh itself. So what should we do?

I request friends to think about refining the approach, making it practicable, and actually initiating it. We look to friends living on ground in Sindh for help in this regard.

Your input and help towards development of Sindh is always welcome. PLEASE FEED POOR AND GIVE SCHOLARSHIPS TO AS MANY DESERVING STUDENTS AS YOU CAN.

Ali Nawaz Memon
(Author: SINDH DEVELOPMENT THOUGHTS)

Sindh Development Institute
7204 Antares Drive
Gaithersburg, Maryland, USA 20879
https://sindhdi.wordpress.com
sindhhouse@hotmail.com

301-869-5447

Costs of poor planning

Costs of poor planning By Naseer Memon   Daily Dawn-22nd Sept 2011 THE Planning Commission issued a startling analytical review of the public-sector development portfolio some time ago. The document is a testament to the systematic institutional decay witnessed in the planning of public-sector development. The country’s annual budget is normally defined by the ‘three Ds’: defence, debt servicing and development. Ideally, there needs to be a balance between these expenditures but in Pakistan, the first two are sacred while the third is routinely compromised on account of a paucity of funds. During the 2010-11 period, the Public Sector Development Programme (PSDP) was fixed at Rs280bn. Subsequently, the foreseen revenue shortfall curtailed it by Rs100bn. The report acknowledges the burgeoning PSDP development deficit and reveals that the current throw-forward has reached the staggering sum of Rs3.1tr with over 1,800 crawling projects. Logically, it would require Rs600bn a year over the next five years if even an elusive moratorium on new projects is applied. If the current size of the federal PSDP is taken as a benchmark, the time lag would be 15 years — not accounting for project delays and increased costs. PSDP projects are normally comprised of four mains sectors: infrastructure (energy, railroads, ports, roads, etc), social development (education, health, water, etc), balanced development (special programmes for less developed areas) and production (agriculture, industry and minerals, etc). The current throw-forward pertains predominantly to projects concerning infrastructure: some 409 projects are buried under a crippling future estimate of Rs2.4tr against the paltry allocation of Rs135bn under the previous PSDP. This is followed by the social sector with 1,227 projects costing Rs850bn having a throw-forward of Rs0.58tr. Within projects related to infrastructure, almost half of the throw-forward is dedicated to the power and energy sectors. A throw-forward analysis in the social sector shows health as a major victim, with an estimated 25 per cent share in the deficit. Education and higher education are the other major victims. Ironically, the social sector is a vehicle to achieve key human development targets under the Millennium Development Goals (MDGs). The social sector has more than 1,200 projects in its portfolio, which accounts for one-fifth of the overall throw-forward. The analysis identifies five key reasons for the debilitating throw-forward. It includes the approval of provincial projects without due consideration, frequent cuts in the PSDP due to resource crunches, weak feasibilities, cost overrun and ignoring public-private partnerships. Yet this report is nothing but a confession of sins, lacking any avenue of atonement. While the document brings valuable facts to light, it skirts around the institutional reasons for this state of affairs. The Planning Commission is charged with the stewardship of the planning process, the sanctity of which it is mandated to safeguard. Poor appraisal processes that succumb to political pressures, the haemorrhaging of professional and qualified human resources and indecent haste in the project approval process have plagued the public-sector planning process. This has become particularly evident in recent years: the volume of throw-forward doubled within the last five years. Politicians alone could not have done this without the collusion of the planning wizards. Regardless, the situation does not reflect well on a dispensation which has yet to demonstrate better sense in delivering development benefits to the citizens. In its good years, project appraisal would take two months. The length of this process has, by now, shrunk to a few hours with hardly any critical appraisal taking place. The Planning Commission lacks the professional will and competence to shield the planning process from the demands made by the project’s proponents. Governments announce and inaugurate projects to gain political mileage while higher-level government offices do not understand the value of and intricacies involved in the development process. With a view to gaining popularity and securing their vote bank, they make generous announcements and often gloss over procedural imperatives. The role of the Planning Commission is to protect the planning process; yet this is flagrantly compromised to appease the people at the helm of affairs. The Central Development Working Party has itself vitiated planning prerequisites by approving projects without the mandatory scrutiny. Equity in benefits determines the political economy of development; this is very often simply ignored. Certain favoured constituencies receive huge amounts of funding without justification, which eventually puts society under heavy strain. Likewise, processing the PC-1 without a proper PC-2 is common. The PC-2 is a prequel to PC-1 that has to establish the feasibility of any project. A glaring example of this is the Mangla dam-raising project. The resettlement aspect was ignored at the planning stage. Now that the structure is complete, the project is dogged by the resettlement issue since the costs have doubled from the initial estimates. Had there been a rigorous appraisal process in place, such anomalies could have been avoided. The report depicting unsustainable throw-forward was issued in March. Yet in its previous quarterly meeting, the executive committee of the National Economic Council approved of new projects worth Rs300bn. If this remains the trend, it may approve projects costing more than a trillion rupees each year, further fattening the mammoth throw-forward. Both politicians and planners must demonstrate some sanity to align development with the greater goal of sustainability. Thrusting more projects on the slim purse of public-sector development will render the whole ineffective. The sector has already touched rock bottom and can ill afford further erosion. The writer is the chief executive of Strengthening Participatory Organisation. nmemon@spopk.org

In India, new middle class awakens

Anti-corruption effort could signify change in national psyche

By Simon Denyer and Rama Lakshmi, Friday, August 19,10:57 PM

NEW DELHI — As he waited in the rain for India’s veteran anti-corruption crusader to emerge from jail, call-center employee Amit Bhardwaj was still troubled by the bribe he was forced to pay three months ago to get a birth certificate for his firstborn son.

“I hated it,” he said, miming how the official had greedily counted the notes, worth about $20, in full public view. “I had hatred for myself and for him. This was the first thing I did for my newborn son.”

Like millions of other Indians, Bhardwaj has found a degree of personal redemption by joining a national movement against corruption led by the unlikely figure of 74-year-old Anna Hazare. The peaceful movement has drawn in Indians of all ages and from all walks of life, but it marks the first time India’s new, urban middle class has put aside creature comforts and personal ambition and taken to the streets for a political cause.

Unlike the Arab Spring, it is not an impassioned call for democracy or a new government. But it is an awakening of sorts, which could change the face of India’s democracy and, protesters and some commentators say, portend a deeper change in the national psyche and its tolerance for corrupt, arrogant and unresponsive leaders.

“The consumer revolution that we have experienced in the past two decades has told the citizen that he can expect a higher quality of governance,” said social anthropologist Shiv Viswanathan. “The information revolution has created a revolution of rising expectation.”

In the process, India’s anti-corruption movement may blow away a few myths — in particular, that the country’s middle class was too comfortable, apathetic and insignificant in number to swing elections.

Cynical lawmakers, in the past, figured they could get away with almost anything as long as they threw a few sops to the rural poor at election time every five years. But two decades of economic liberalization has brought into being a new Indian middle class, already numbering more than 200 million and growing fast, and whose votes and opinions can no longer be taken for granted. Unlike the older middle class, whose members held jobs in the government or state-owned companies, the new middle class has benefited from privatization and economic reforms in the past two decades.

“India has reached an inflexion point,” Swagato Ganguly wrote in the Times of India on Friday in a piece headlined “It’s the middle class, stupid.” “The ‘new’ middle class, which owes nothing to state employment, is eclipsing the ‘old’ middle class.”

High-profile scandals

The movement against corruption came to life at the end of last year after a string of high-profile corruption scandals. Using Facebook to mobilize and gather recruits, it started to snowball with Hazare’s nationally televised four-day fast in April.

India’s government, as senior officials now admit, consistently underestimated the movement’s power. Scorning it as a middle-class phenomenon, many felt its importance was being exaggerated by the nation’s often sensationalistic round-the-clock television news channels, while others questioned whether a small community of people using social media reflected the voice of India.

But Ganguly warned that politicians ignore the middle class at their own peril. “Just like the TV cameras, this middle class is not going to go away. Smart politicians had better hone their strategies to co-opt middle-class rage,” he wrote.

The government in April tried to get Hazare to join a government panel tasked with drafting a new law authorizing an independent ombudsman, known as the Lok Pal, to investigate and prosecute corrupt officials.

When that did not work, and Hazare denounced the government’s version of the law as “toothless,” the government and the ruling Congress party went on the offensive, first accusing his nonprofit group of misusing funds, then arresting him this week hours before he was due to begin a second hunger strike. Hazare denied the charges and said the government was defaming him.

As India erupted in outrage, the government was forced to backtrack, and Hazare emerged from jail on Friday to continue his fast in a park in central Delhi. The veteran Gandhian activist, who has already lost 6 ¹ / ₂ pounds in four days since he began the fast, was cheered and showered with petals by thousands of supporters as he led them in chants of “Hail Mother India” and “Long live the revolution.”

“You have lit a torch against corruption,” Hazare told the crowd. “Don’t extinguish it until India is free from corruption.”

The bigger question

The government has introduced legislation in Parliament to establish an independent anti-corruption ombudsman, but Hazare says the bill is “good for nothing” because it excludes the prime minister, the judiciary and much of the bureaucracy from the ombudsman’s jurisdiction. He has drawn up his own version of the legislation and threatened to fast until it is introduced in Parliament.

But the bigger question, perhaps, is whether he will try to bring about a wider social transformation in India, to make bribe-giving as well as bribe-taking socially unacceptable, the sort of grand social change that his guru Mahatma Gandhi once attempted.

The novelist and youth icon Chetan Bhagat said this week that it was becoming “cool to be clean” among India’s urban, middle-class youth, although many of those attending Friday’s protests admitted that even Hazare’s proposed new law would not put a stop to endemic corruption. Several dozen people interviewed in recent days confessed to having given bribes, and only a few pledged never to do so again.

“I encounter the demand for corruption all the time. What do I do? If I want quick service, I will pay,” said Govind Patel, a 27-year-old exporter who has complained about corruption on his Twitter page, Facebook and other online discussion forums. “But I am standing here today to fight the real fight. I stand here and see that everyone under this tent feels the same anger as me, they have experienced the same helplessness as me. It gives me courage.”

Dipankar Gupta, an author and expert on India’s middle classes, predicts that Hazare’s movement will peak soon, but that the broader effort against corruption was just beginning. Like many social movements in history, he said, it could years or even decades to bring fundamental change.

“These things do take time, but this is an important input into the system,” he said. “When the next election comes around, how to handle corruption will be a central issue, and that is progress.”

 

http://www.washingtonpost.com/todays_paper

Agenda for Reform (of Pakistan Economy)

Agenda for reform

By Shahid Kardar 

 

 

WITHOUT belittling the political economy challenges that face reform in Pakistan, I believe that the time just may have come for long-overdue fundamental reforms, and not just because of the urgency of effecting these changes.

 
In this writer’s view, there is a discernible shift in the public narrative (being admirably piloted by the media) which is demanding better quality governance (the core issue) and leadership.
With little sympathy shown by our external partners, there is a growing realisation that we have to solve our own problems and live within our means. There is a need for a just and fair society in which different income groups contribute to the restructuring of the socioeconomic order based on their capacity to bear this burden. There is certainly a degree of exaggeration about the deep-seatedness of these sentiments among the voting population but an inspired political leadership with ‘greyish’ credentials of principles and probity could snatch the baton and carry the populace with it in, say, five to seven years from now.

Most of the prescriptions for our economic travails are now well-known and do not require repetition. This article refers to what would be the minimum agenda while arguing for a change in the sequencing and some modification of content.

To begin with, I would privatise anything and everything in the public sector starting with government-owned banks, simply to protect public money (including depositors’) and ensure the safety, soundness and stability of the financial system.

Just three public-sector enterprises like PIA, Steel Mills and Railways are together losing a crore rupees a minute. The country cannot afford the continued haemorrhaging of public finances and the banking system. There is no option other than privatising these organisations or some of their services. Even when it comes to social services like education, poor households are voting with their feet and sending their children to low-fee-charging private schools, although government schools are free. The lessons from initiatives like the Punjab Education Foundation that private schools provide better quality education at one-seventh the cost in government-managed schools, are clear enough. The state should ensure that children get free education without being in the business of actually providing the service, unless we can change the incentive structure in the public schooling system, thereby making it a ‘game changer’ in terms of societal thinking. This is all doable. However, it is not the purpose of this article to elaborate on the necessary measures to be undertaken to that end.

We need to liberalise trade further to induce greater competition in the economy, thereby also preventing hoarding and cartel formation.

The fiscal deficit at the federal level after the recent NFC Award has become structural in nature, as a) all major expenditures, defence, debt servicing (including loans that financed physical infrastructure in provincial use), subsidies (especially for energy — the discussion follows) and administering the state require in excess of Rs2tr against the projected tax revenues of Rs1,952bn for next year, of which more than Rs1,150tr will be earmarked for the provinces; b) most tax bases that remain to be fully exploited like agricultural incomes, properties and economic services now lie in the provincial domain. Islamabad can only coax provincial governments into raising revenues from these sources through moral suasion.

Can one realistically dream of a reform-minded provincial government (challenging the rhetoric of some political parties on reform) to, say, take measures like taxing large farmers and property owners and passing legislation that declares all benami ownerships and transactions illegal (enabling, for tax purposes, the creation of databases of real owners’ property)? Through such reforms they could then shame others on their failure to mobilise revenues from such potentially lucrative bases.

To attend to the mother of all issues, the fiscal deficit, requires a structure that taxes all earnings, irrespective of source, equally. It’s not just large farmers in legislatures resisting taxation of their incomes, even bureaucrats renting out their properties in Islamabad to the diplomatic community are paying a tax that is 50 per cent less than those earning the same level of income from other sources.

However, in my view, the expenditure side in the fiscal equation demands closer attention. To this end we need to first abandon the contorted view of our importance (‘the world cannot ignore us’) because of our strategic location and also dump the old, failed policies, frameworks and concepts of a security state and strategic depth, since these are now costing us more than Rs830bn per annum. Thereafter, there is a need to reassess security-related funding requirements.

Next, we need to quickly phase out untargeted subsidies, especially for the farming community in the shape of direct and indirect subsidies on fertiliser (the latter through the under-pricing of gas) and for its wheat purchased at prices higher than in the international market. In fact, I would argue that it would be cheaper for public finances if we were to eliminate both subsidies as against levying GST on fertiliser and pesticides.

As part of the same effort, all subsidies on energy should be withdrawn for those consuming above lifeline rates. The concession of free provision of electricity to Wapda employees which is costing us taxpayers Rs35-40bn per annum, also needs to be withdrawn immediately. All this needs to be followed up by addressing the critical issue of electricity theft and non-collection of billings without disconnecting non-payers, the combined cost of which is in excess of Rs4 crore a minute. Pilferage, however, can only be tackled through privatisation of the management (with agreed targets), if not ownership, of electricity distribution companies. The purported plan of the government to restructure their boards, their membership and authority is not the solution.
Next, we need a right-sizing of government, especially at the federal level following the 18th Amendment. Merely surrendering posts as incumbents retire through natural attrition will be too slow a process. The golden handshakes and skill-enhancement efforts to enable this can always be financed.

Finally, apart from greater austerity (surrendering of all VIP planes, stopping the provision of bullet-proof cars to all and sundry, etc) there is a need to reorder our expenditure commitments. It is naïve to think that governments should do everything. Even the richest country in the world has to prioritise its spending to avoid waste of scarce resources by spreading them thinly. And, of course, such reordering is driven by political considerations. But the fact that we have to choose is unavoidable. For instance, it is a no-brainer that availability of reliable power is more important than roads for transportation. Road networks are needed to transport goods but only after they have been produced, which requires power.

To conclude, the time just may have come to initiate the process of deep structural reforms. Admittedly, however, for this the course of action to commence depends on the extent to which our political and dominant economic elite is not totally blind to changing realities that confront us as a nation and is willing to make some sacrifices in its own enlightened self-interest.
The writer was until recently governor, State Bank of Pakistan.

http://www.dawn.com/2011/07/27/agenda-for-reform.html 

What should we do?

Friends
 
A few days ago  I submitted a short report on my brief visit to Islamabad and Sindh. It is shown below for your easy reference.
 
During my recent visit to Pakistan; the most frequent question on every one’s mind was “what should we do now”?
 
As an active woker of PPP I had imagined that Shaheed BIbi will work with all of us to lead us to equal rights and economic development. But that was not to be. The party won but the people did not. May be our expectations were unrealistic.
 
The fact is that rich and powerful people  are doing just fine in Sindh; in Punjab; in Baloachistan; and in NWFP. The big and well known landlords do not have water shortage or unemployment issue. They were well looked after under Musharaf and they are prospering now too. They are well connected to each other and they protect each other’s interest. It is really the middle class and poor class who are struggling. In that sense; it is not question of Sindhi or Punjabi but of who you are. Nevertheless sindhis as a community have not done too well.
 
Whenever we try to talk of solutions; we suspect each other’s intentions. We Sindhis always accuse each other of being agents of some one or the other. We are good at cutting each other’s feet. But I salute and send my compliments to all those who are struggling for welfare of our people.
 
During my brief visit I met PPP workers who want better performance from our party leaders and our government. I also noted struggles of middle class under the leadership of Qadir Magsi; Palijo Saheb; Sindhi intellectuals uner Sindh Development Forum; Sindh graduate Association; newly formed Jamhoori group; Sindhi media groups and all others. They are struggling for provincial autonomy; better distribution of resources; langage rights; more water; better eduction and so many other noble causes. I also noticed that PPP leaders such as Nisar Khuhro; Pir Mazhar; Sasui Palejo and some others are working closely with these and other well wishers of Sindhi peope to achieve the minimum goals.
 
We must continue our political struggle and continue to seek broader policy reform and improved governance in Pakistan and in Sindh.
 
However when I look at the successful persons among the middle and lower classes; I see that hard work; self help and blessings of God have played a large part in thse individual success stories. Persons like me and most others are here today because of these factors rather than because of performance of one government or the other. I made the same point to every one who would listen. I feel that we have to emphasize:
 

• hard work in shools and and colleges by all students;
• stopping those who disrupt and disturb our educational institutions and keep us backward;
• focus on market oriented education which has real job prospects;
• helping each other including scholarships for needy students;
• self help when it comes to keeping our streets and neighborhood clean;
• working honestly in our fiels of work whether we are civil servants or doctors or teachers; 
• learning from relatively successful minorities such as Sindhi Hindus; Agha Khanis; and Jewish people. Wile continuing our struggle for improved governance and plitical rights; we have to rely on ourselves as much as possible.

 
These are not just theoratical points. These have real life implications for our youth and next generation. Each of these points has a real policy and day to day impact.  
 
We have to recognize that government has not solved our collective problems in the last sixty years. We cannot expect much from them in near future.
 
Most of us have been relatively successful because of our success in education and job markets. As individuals we have been helped by our parents and other angels. We have to become similar frishtas for others and help and guide them.
 
Your input and help towards development of Sindh is always welcome. PLEASE FEED POOR AND GIVE SCHOLARSHIPS TO AS MANY DESERVING STUDENTS AS YOU CAN.

Ali Nawaz Memon
Feb 7, 2010

My brief visit to Sindh in January 2010

Recently I had the pleasure of visiting Pakistan for three weeks. I spent two weeks in Islamabad on business and about a week in Sindh for my education. I was there after a gap of about 5 years.
 
In Sindh I was in Karachi; Hyderabad; and Badin. I visited my family and friends every where and absorbed as much of sights; sounds; smells and life as I could in this very short period. You can imagine that it was hectic.
 
First of all I want to thank all friends who spared time and extended hospitality. Thanks from bottom of my heart. In the process I must have upset friends and family who wanted to look after me and extend hospitality but there was not enough time. Please accept my appology. Inshaullah I shall try to spend more time with you the next time.
 
What did I see? I saw barricades and high security measures every where in Islamabad. However Sindh and Sindhi people are largely unchanged.
 
In Karachi I saw signs of improvement. It has some new roads and many bypasses. Traffic moves faster. But there are so many new cars and so much increase in traffic that roads look as congested as ever.
 
The interior looked about the same as five years ago. Hyderabad and particularly our Qasimabad is as dirty as ever. There is a terrible smell for miles on Hyderabad- Badin road. It is obviously due to discharge from a sugar mill along the road.
 
There is wide spread disaapointment with performance of the new government. People complain of unimaginable rise in price of essential goods- wheat; sugar; meat; electricity etc etc.
 
Law and order is worse than before.
 
Water shortages are worse than before.
 
Stories of corruption are too many to tell.
 
There have been some new jobs. But those have been allocated to MNAs and MPAs and Ministers rather than recruitment on basis of merit.
 
Democracy is confined to periodic visit to the ballot box and unproductive debates in Sindh assembly. As always the decisions are in few hands (including Sindhi hands) who seemed to focussed on some thing other than welfare of common people. Politics has become more of family business every where.
 
I saw some positive changes. Sindhi TV channels are in full bloom. Sindhi music and culture is visible every where. There is wde spread and open discussion of Sindhi issues.
 
NGOs have come up fast. They employ people and focuss on local issues. There is large foreign aid through NGOs and through government projects.
 
Sindh intellectuals have prospered partly through NGOs. They have also joined hands for cause of our people. This may be a source of better governance and futre leadership.
 
Sindhi leadership has definately passed to a new generation. Only time will tell if they will do any better than my generation has done.
 
More and detailed haal ahwal later.

Your input and help towards development of Sindh is always welcome. PLEASE FEED POOR AND GIVE SCHOLARSHIPS TO AS MANY DESERVING STUDENTS AS YOU CAN.

Ali Nawaz Memon

Interview with Ali Nawaz Memon: The Capital post

 

 

www.thecapitalpost. com An exclusive  Interview with Mr. Ali Nawaz Memon  Engineer, businessman, consultant and writer, Mr. Ali Nawaz Memon, an esteemed member of the American Pakistani community has traveled across and worked in over thirty countries. He is the author of The Islamic Nation: Status & Future of Muslims in the New World Order (1995), Pakistan: Islamic Nation in Crisis (1996) and Sindh Development Thoughts. Mr. Memon shares with The Capital Post his views and ideas about the current situation in America, Pakistan and more.  TCP: Tell us about yourself, your education back ground, work area… ANM: I came to the United States on the 31st of December, 1960. I did my undergrad from University of IL in Electrical Engineering and then worked at Motorola in Chicago. I realized I needed to learn about Business so I enrolled for the MBA program at University of Oregon and completed the degree. I was hired by the World Bank in 1967 and came to Washington DC. I worked for thirty years in the World Bank. Right now I’ve retired from there and am working as a financial and institutional development consultant. My specialization and field of work is management of utility companies such as electric power and telecom companies. Over the years I’ve worked in over thirty countries. Last month I was in Pakistan helping in the development of electric power authority.  TCP: If you could do anything else, what would it be? AN: It would be public service activities…something related to political science and law. TCP: What are your hobbies and favorite pass times?  AN: In my work I have travelled in most parts of the world. I have worked in about thirty countries and vacationed in another thirty. Travelling is my hobby. I want to see the world. I want to see more of U.S. even though I have lived and travelled in so many states, there’s so much beauty here. If I can’t travel physically I like watching travel channels and reading books about traveling.  TCP: Tell us about a funny incident that happened to you. AN: Fifty years ago when I arrived in U.S., I landed in Indiana. I took a taxi to go to a college where I was going and for the first time saw a Radio Dispatch. It was such a new thing to me that I was totally confused about whom the lady cab driver was talking to. Back then life was not modernized. At that time it was a scary experience but it looks like a funny incident now. TCP: In your opinion, what are the traits a good leader should have? AN: A Leader is like the father of the nation. Traits should be same as a father’s in a family. The leader should be sincerely interested for welfare of people. Make sure that food, shelter and education is provided and development needs are fulfilled.  Focus should not be on self enrichment. Father is not supposed to keep money secretly rather he is supposed to use it for the welfare of family. If the father is educated properly it will help. He should be sincere to the nation and not corrupt. Leaders are those who are willing to sacrifice whatever is needed to bring the right change. Pakistan should make change, like President Obama speaks of change. TCP: Who is your most favorite Leader? Someone whose work you admire. AN: President Obama. I admire him for his struggle in the political process in terms of being from a mixed race. From being from a very poor family and yet coming up through the democratic process to be a president. Although I am waiting for him to complete his promises. In Pakistan, Zulfiqar Ali Bhutto. After six to seven years when he was in power he introduced so many great ideas that he picked up from west and the east. Out entrance into modern scientific age including atomic energy, introducing social security system, introduction of passport, etc. There was a basic emphasis on common people… the slogan of ‘ROTI KAPRA MAKAAN’ (Food, Clothing and Shelter)…This was very appropriate for Pakistan because the average Pakistani doesn’t have sufficient resources. TCP: How would you rate President Zardari as a Leader? AN: I am a worker of PPP and a supporter of the party. I strongly support the manifesto of the party. I strongly support the promises that have been made in the manifesto. I had a chance to work closely with Shaheed Benazir Bhutto, she had worked out a detailed program on what will be done on the assumption of government by the party and what will be done within six months, etc. But, for reasons of international politics and the war and weaknesses in the government, I feel that President Zardari has not been able to deliver on the promises which had been contained in the manifesto. I ask the government to please stick to the manifesto. There are still few years before the next elections. I hope Zardari would be able to keep the promises. TCP: What are your views on Pakistani Politics? AN: We seem to have been caught from the start in the defense of our house (country). We have been so absorbed in that, we have neglected and failed in development of people who lived in that house (country). Kashmir and other tensions with India…Afghanistan has almost directed all of our attention towards fighting and military. Very less time for the development of people of Pakistan, that was the whole purpose of creating Pakistan. We have lost sight of why Pakistan was created. TCP: What is your stance on democracy in Pakistan? AN: I love democracy. But we have misunderstood the meaning of democracy. It means of the people, by the people and for the people…but in Pakistan democracy means people can go every five years and after that party who has been elected enriches themselves and forgets the promises that they made to the people…promises made in public speeches. In recent years we have gone to a point when criminal and corrupt people are given preference for top positions. TCP: In your opinion, is the government headed in the right direction? AN: I think not, from the Military side, we again are much too occupied both on eastern and western sides. Emphasis is more on war and less on education, health and welfare of people of Pakistan. We are going through a day to day crisis. There are many misguided policies. Also inflation rate is very high in Pakistan and unemployment is very high in Pakistan. Top 10% of people are doing very well whereas the bottom 70% of people continue to live miserable lives. TCP: How can we improve relations with the United States while also protecting Pakistan’s interests? AN: United States and Pakistan are part of the family of nations on this earth. We are members of the same family. We have to talk to each other more openly and more sincerely. Pakistan has not been able to articulate the views in a way that we were created to develop the people not to fight. We have to be left alone or given space to work for the welfare of our people and to develop our people. TCP: In your opinion how can the current scenario in Pakistan and even the world be improved? If you could change one thing about it, what would it be? AN: Better understanding should be created between people of Jewish, Christian and Muslim communities. Current world situation is dominated by war and this is due to misunderstanding between the people of these three communities. There have been wars but there have also been so many periods of cooperation and co-existence. We have to learn good things and we have to learn on a daily basis. We can highlight the goodness of all three faiths since all three faiths are from Abraham and all are called Abrahamic faiths. The world will be a much better place to live in then.  TCP: What are your future plans for People in Sindh and overall in Pakistan? AN: Before I die, I’d like to do some good in the world which will allow me to enter God’s grace and God’s paradise. Serving the people of Pakistan and Sindh is my goal. I feel that we all should help each other. My Project is the creation of 100,000 scholarships for Sindh and Pakistan. Feeding poor people has been my goal by opening soup kitchens. I must confess that these are extremely hard projects and without full support of all people cannot be fulfilled.  I hope to God I will be able to work on these projects. I hope to speak out on these issues of development of people. I am creating an active interface dialogue and working to assist the community for different things. (Such as feeding the poor, increasing services for seniors, participation in local political process, etc.) TCP: The current situation of recession is creating joblessness and the economy is also getting hit by it. As a Pakistani Community Leader, how are you addressing this issue?  AN: In U.S. as far as Pakistani community is concerned, the community is relatively well educated and largely in professional fields. As a result, this recession has kept a large number of people intact while one may know of individual or personal suffering. There are relatively few incidents. As far as Pakistan is concerned, this (recession) has hit Pakistan and other developing countries. In Pakistan the situation was already so bad that the affect may have been on common people. Farmers in Pakistan, poor farmers from South of Punjab or Sindh or Balochistan were not making much so it was half start anyway. Because of recession, commodity prices rose up (such as of rice and wheat). They did not suffer as much one would’ve thought. The war in Afghanistan was going on. Pakistan was getting some financial aid from that side as U.S. and Pakistan have been working together. That source of funding has also helped. Poor and miserable remain Poor and miserable. Impact has not been as severe as one was afraid of. TCP: What are your suggestions to the present government regarding education and youth empowerment? AN: The welfare of the people is the most important thing. I see the leader of any country as the father of a family. He has to make sure that every member of family is well set, well housed well educated and given opportunities. It is like you have a nice house and your paying 60% of your income for your security and 40% on household. It won’t work out. UN says 6% of GNP should be spent on education. In Pakistan only 2% is being spent. These percentages are for billions of dollars. We are barely able to meet the salary bills of government departments plus there are reports of maybe 40-50% going in corruption. Suggestion is to increase allocation to these things and spend more of it and let corruption come under control. TCP: What are your views on the war on terrorism? AN: It’s an example of the difference between these three religions and if we can remove these misunderstandings. There has been the attack of 911. There has been the war in Iraq, Afghanistan, Pakistan and several other countries. I think the world has a well established judicial system, whenever a crime is committed we have world court and other institutions like the UN. Crimes should be looked in that perspective. One should see the evidence and one should punish the guilty and compensate the innocent. I would like to see the judicial process in this regard. TCP: If you could trade places with any other person for a week, famous or not famous, living or dead, real or fictional, who would it be? AN: President Obama. I believe presidency of U.S. has more power to do good than any other in the world. TCP: What advice would you like to give to the youngsters who want to enter into the Professional world? AN: My advice to them would be to acquire education, primary education then high school, college. You should study your subject well. Be number one! For instance when I did high school in Pakistan (Matric) for the whole province there was a test. The test used to be province wise. I was fortunate to get the 1st position in that exam in 1958. It opened so many doors for me. It persuaded my father to even borrow money to send me to U.S. for further studies. It opened so many doors. If you are number one doors will open for you and you will achieve more than your imagination. TCP: Our paper is for the youth and a large part of the readership comes from the younger generation. What message would you like to give them as someone they look up to…? AN: Please be part of your family, of the Pakistani family, of the American family, of the mankind family. Work hard and be a good human being to your parents, neighbors and others. Be good, work hard and God will give you success. TCP: Thank you so much for your time From Mansoor R Qureshi The Capital Post Washington DC