Self Reliance–A key to success

Thanks to foreign ‘aid’. Our debts have consistently increased to unsustainable level, and economic growth consistently decreased. Wealth is correlated with poverty because the two go hand in hand. We cannot eliminate poverty through foreign aid without elevating our own wealth. It cannot be accomplished by simply giving wealth to those who need it. True wealth is not having something simply today, true wealth comes from being able to go out everyday and generate more than the previous day. Wealth is not created through wealth redistribution no matter how much we may wish it otherwise. Pakistan has been under “development” for the last sixty three years. It needs leadership, empowerment, and inspiration and a reconnection to its culture coupled with proper future planning. Government should formulate concrete self reliance strategy, and adopt long or short term policy to encourage self reliance in the public and private sectors. Foreign aid to impoverished nations is no more a solution to poverty than social welfare in our own country. It needs to become self-sufficient and sovereign from foreign influence. The exploitation goes hand in hand with aid, and only serves to keep corrupt governments in charge. With deepening poverty in Pakistan where ‘aid’ had, and still has, its hand fittingly wrapped around the necks of the poor, it would seem official that development ‘aid’ is neither necessary nor sufficient for ‘development’; To continue with the trick of ‘aid’ seems to be generously absurd.

Pakistan contains many lessons from this fraud of ‘aid’. It has lost self-sufficiency in food production that it enjoyed before development assistance was invented, and during the past few decades, has become instead a beggar hopelessly dependent on the largesse of outsiders–per-capita food production has fallen in every year since 1980s. Seven out of every ten Pakistanis, are furthermore, now reckoned to be destitute or on the verge of extreme poverty. The policy dictates of the solidly backed IMF, World Bank, and other multilateral lenders are such that whatever the situation, it’s only ideal that whichever monies they will advance can create positive economic change irrespective of political will of sitting recipient governments. The money sent by the US, UK, Canada and other capitalist nations about 50% ends up in the pockets of the multi-national corporations/ contractors of donor countries, and contrary to the expectations of the donor agencies sizable chunks of money are hoarded away in politicians’ private bank accounts. Despite, the arrangement of “paying-off” the local ruling class is routine amongst the colonial capitalist nations. In turn, the poor people of Pakistan have to bear burden of 100% liability along with interest. Government of Pakistan should stop taking all types of foreign loans. Pakistani people do not need it, just government and military need the loans. People of Pakistan have never got benefit of all these loans but have been paying heavy taxes for those loans which are stocked in the pockets of bureaucrats, politicians and military generals. I would suggest people of Pakistan must rise to roads to stop these foreign loans, which is darkening the future of next generation. The people taking these huge loans will be out of the country along with their brief cases leaving the poor people of Pakistan at the mercy of circumstances.

Elite capitalist nations, such as US, UK and Canada, portray some aid packages to Muslim countries as charity. But, in reality, this money is an investment that enables the colonial powers to maintain their influence in the Muslim lands. Foreign aid is a tool of control instead of it being a tool of eradication of poverty. We must reject the continued subordination of our affairs to these colonial nations. Wealth creation is the only way to eradicate poverty and foreign aid or foreign loan is not. It certainly works regardless of the society that you are in is to produce something that people are willing to pay for. It is through the process of creation and bartering that wealth is created and maintained. To truly bring a nation out of poverty is through the creation of goods that others are willing to purchase. Both domestically and globally Pakistani products have yet to gain acceptance for their quality and worthiness. It is not understandable as to why don’t we work harder for that, why don’t we work hard in the farms, factories, offices, and to build schools, especially to educate the women, so they teach their children, and so on! Deploy at least 7% of GDP in education for the next 10-15 years; educated nation will definitely get rid of all evils of our society and economy. An educated citizen is less likely to vote for a corrupt politician, or to let what is theirs is stolen by corrupt politicians. Pakistan has been blessed with enormous natural resources, but a handful of people have some how managed to gather it up, while the majority are starving and desperate. Garnered and justified in the name of the destitute and the vulnerable, ‘aid’s main function in the past more than half-century has been to create and then entrench a powerful new breed of wealthy, privileged and accountable-to-one gang of foreign parasites. In this camp of screw-the-poor-out-of-existence made up of the World Bank, IMF, United Nations and other worthless behemoths of international mediocrity, ‘aid’—and nothing else—has provided ‘jobs for the boys’ and has permitted record-breaking self-serving behavior, arrogance, paternalism, and fearless cowardice.

Self reliance should be our national slogan and not a political catch-word. Self reliance is a boon and a skill, a need and a necessity, a challenge and a benefit. Self-reliance is a key to gratifying and productive life. Being self reliant gives us great freedom. And this experience opens our eyes to new possibilities, to new prospects, to new options. Our forefathers, our Qaid wanted to see Pakistan an independent and self-reliant country. Pakistan has no alternate except to rely on its own capabilities to defend its sovereignty. We should follow the saying, “You can give a man a fish and feed him for a day or teach a man to fish and feed him for a lifetime.” A fisherman waits on no one to provide food; a fisherman knows where to go to get it and can feed himself quite well.

Finance Minister Sheikh upbeat as PDF begins

ISLAMABAD, News Trends: Minister for Finance and Economic Affairs Dr. Abdul Hafeez Sheikh said the government wanted to turn the calamity into an opportunity through reconstruction after the floods.

Minister for Finance and Economic Affairs Dr. Abdul Hafeez Sheikh and Punjab’s minister Zulfiqar Ali Khosa are jointly chairing the the two-day Pakistan Development Forum (PDF) meeting that began here today (Sunday) and is currently underway with an agenda of focusing and sharing with the participants and development partners the future development vision of Pakistan for the prosperity of its people.

Opening Pakistan Development Forum (PDF), Dr Sheikh welcomed the delegations from donor countries and organizations and representatives of other donor agencies for participating in the Forum.

Addressing Pakistan Development Forum (PDF), the Finance Minister described 18th Amendment and NFC Award as his government’s big achievements.

“We are holding the Forum in 2010, as the last PDF was held in 2007”, Dr. Abdul Hafeez said.

Punjab’s senior minister Sardar Zulfiqar Khosa said that recent flood had ravaged south Punjab, causing losses worth $3.20 billion. “No government is in a position to undertake reconstruction and rehabilitation work alone,” he said.

Khosa said Punjab needed 900 million dollars to establish model villages after floods; of them, 700 million dollars are needed for large model villages and $200 million for the smaller ones.

He further informed that the province is bettering taxing system of agricultural income, adding the property tax system improved. The Senior Minister of Punjab said his province has curtailed current expenditures by Rs3 billion.

Khyber Pakhtunkhwa’s Governor Owais Ghani said his provinces needs Rs107 billions during the next 18 months for reconstruction, adding another Rs66 billion are required for social sector and Rs41 billion for infrastructure.

Khyber Pakhtunkhwa Chief Minister Ameer Haider Khan Hoti said his government doled out Rs18 billion from its funds for infrastructure, adding it is not flood alone but also terrorism that dealt a blow to province’s economy.

Additional Chief Secretary Fata Habibullah Khan told the short and medium-term development projects worth $2 billion would be commenced during next nine years.

Ishaq Dar of Pakistan Muslim League (PML-N), Punjab Finanace Minister Tanveer Ashraf Kaira and Minister of State for Finance and Revenue Hina Rabbani Khar are at the meeting.

The Chief Ministers of the provinces will also brief the Forum about flood-spawned losses and subsequent rehabilitation. The participating donors would be apprised of Pakistan’s need worth $5 billion for rehabilitation after the flood.

Delegations from 30 countries and 264 representatives from donor countries, five major lending and aid institutions are participating in the meeting. US, United Kingdom and Japan have made sure minister-level participation. The International Monetary Fund, World Bank, Asian Development Bank and the Islamic Development Bank are also at the meetings.

Earlier talking, the Finance Minister Sheikh said, “High level local and international participation including US Special envoy for Afghanistan and Pakistan Richard Holbrooke, Vice President of World Bank and ADB, UK Minister for International development and senior officials of the IMF are expected in the forum.”

Dr. Hafeez said further said that the main focus of the PDF is on the reforms agenda of Government in social, economic and government sectors, both in the short and medium term.

The PDF, he said is sometimes misunderstood as a pledging forum for donors.

However, he said it is actually an opportunity for the Government to chart out its future economic & social strategy and have a dialogue with the donors. The donors, as a result of this dialogue, often re-align their strategies to plan and deliver future economic assistance to Pakistan.

Special US representative for Pakistan and Afghanistan Richard Holbrooke, the British government’s Secretary for International Aid, Andrew Mitchell, World Bank and Asian Development Bank vice-presidents and IMF and UN representatives also will address the forum tomorrow.

Foreign Minister Shah Mehmood Qureshi will preside over the tomorrow session.

Electricity price to touch Rs 18.96 per unit

Electricity price would be Rs 18.96 per unit till the next budget. The government has increased electricity price by 29 percent during last year while it will further be increased by 17 percent till next budget. And the overall increase from October 1, 2009 to next budget would be 46.6 percent. It was included in the terms set by IMF and World Bank that the government will end subsidies on electricity. It was also asked to introduce reforms in water and power ministry.

CM Shahbaz Seeks Greater use of Resources

LAHORE, News Trends: Punjab Chief Minister Shahbaz Sharif underscored the need to capitalize optimally on the national resources.

Addressing a conference held here in a bid to encourage young investors, he said, We should tap into our own resources; otherwise, we will continue to live as beggar.’

He said, ‘We are under pressure from International Monetary Fund (IMF) and World Bank (WB), on whose behest we have to hike power tariffs every month.’

The government prefers the purchase of expensive rental power plants instead of producing power from hydal and coal, the Punjab Chief Minister said the oil imports are sucking the blood from the national economy.

Sharif urged on modeling national economy on Turkey’s paradigm for economic growth, adding within 20 years, Turkey’s exports burgeoned to $138 billion from $3 billion annually, that is equivalent to Pakistan’s current exports worth.

He added law and order situation, corruption, maladministration and terrorism are presently confronting Pakistan, adding it is first time that Pakistan will export 25 tonnes of meat to Malaysia.

WB asks Pakistan to stop construction of flood-hit roads

The World Bank has asked Pakistan to put on hold the construction of flood-affected roads till the completion of damage estimate.
The meeting of Senates Standing Committee for Communication was presided over by Wali Muhammad Badeeni. Communication Ministry officials while giving briefing told that a report of the Wolrd Bank had estimated the total damage to roads at Rs 22 billion.
The WB has said that funds would not be provided before the completion of damage estimate. Communication Minister Arbab Alamgir has said that construction of Chakdara bridge will cost Rs 45 crore. He said that construction of the bridge would be started if Asian Development Bank didnt reply in a week.

Pakistan celebrates World Poverty Elimination Day

Staff Report

KARACHI: Pakistan is celebrating World Poverty Elimination Day on Sunday, along with rest of the global community to highlight the importance of poverty elimination from the world.

The United Nations approved in 1992 to celebrate a day every year, on October 17, as World Poverty Elimination Day to express solidarity with the poor global community and highlight the importance of practical efforts for the eradication of poverty.

According to a World Bank report, more than 1.1 billion people in the world are hardly able to earn a mere dollar a day and due to this nominal earning, they are severely afflicted by poverty. SAMAA

Pakistan floods cost $9.7 bln in damage -ADB/WBank

ISLAMABAD: Pakistan’s floods caused an estimated $9.7 billion in damage to infrastructure, farms and homes, the Asian Development Bank (ADB) and World Bank said on Thursday.

An assessment conducted by the two banks said agriculture, which is the mainstay of the economy, and livestock were the worst affected by the disaster, which seriously damaged an already fragile economy.

The floods, which began in late July, made more than 10 million people homeless and affected 20 million.

“The floods that swept across Pakistan since July caused an estimated $9.7 billion in damage to infrastructure, farms, homes, as well as other direct and indirect losses,” the ADB and World Bank said in a statement.

Pakistan’s cash-strapped government, which needs to secure as much aid as possible for reconstruction, has said the floods caused $43 billion in

Pakistan flood damage at $9.5 bln-officials

KARACHI: Pakistan’s recent floods inflicted $9.5 billion in damage to property, crops and infrastructure, according to an Asian Development Bank and World Bank assessment, Finance Ministry officials said on Wednesday.

Aside from trying to cope with that direct damage, the government may face total recovery costs of $30 billion, Finance Ministry officials said, although they had not seen the report.

If that figure of total costs proves correct, it will likely disappoint the government, which had estimated damage at $43 billion. The lower estimate will probably mean less aid.

Pakistan may not be able to manage billions of dollars of financial support needed for reconstruction, a reality that worries the United States, which wants stability in an ally seen as vital in its war on militancy.

The government is often preoccupied by one crisis after another,

Rs 50.85b loans written off in two years, Hina tells NA

State Minister for Finance and Economic Affairs Hina Rabbani Khar on Thursday told the National Assembly that 212,114 defaulters including some companies have got Rs50.85billion loans waived off in two years.
In a written reply to the NA, Hina stated that World Bank, Asian Development Bank and IMF have given loans amounting to $31,162milion to Pakistan till June 30, 2010.
She said that the interest rate on the said loans is around $3,637 million. She said that so far, Rs50.85billion loans have been written off.

IMF to give $450m in flood aid

WASHINGTON: The International Monetary Fund will give Pakistan $450 million in emergency flood aid and disburse funds during September, IMF Managing Director Dominique Strauss-Kahn said on Thursday.

Severe flooding in Pakistan has destroyed cropland and livestock and displaced millions of people, causing damage the government has estimated at $43 billion, or almost one quarter of the South Asian nation”s 2009 GDP.

“The IMF … will be the first agency likely to disperse very rapidly money which is absolutely needed,” he told reporters after a week of discussions with Pakistani officials.

“The most important thing is to keep the Pakistani economy on track.”

Talks with a delegation led by Finance Minister Abdul Hafeez Shaikh on the terms of an $11 billion IMF loan program left him satisfied with the country”s commitment to reforms, the IMF chief said.

Under the 2008 IMF loan program, Islamabad pledged to implement tax and energy sector reforms and give full autonomy to the State Bank of Pakistan.

“What is important is what was decided by the government to do to improve the economic situation, especially in the tax sector but in other fields also,” said Strauss-Kahn.

“What I heard from the authorities that they really want to move on with the program,” he said.

Shaikh said Islamabad remained committed to loan terms, including fiscal authority and tax reforms.

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