Thursday, January 19, 2012

Pakistan - Economy recovering

WASHINGTON, Jan 18: Economic activity in Pakistan firmed in the second half of 2011 although it continues to markedly lag behind other nations in South Asia, says a World Bank report released on Wednesday.

Pakistan is South Asia`s second largest economy, representing about 15 per cent of regional GDP.

The World Bank`s Global Economic Prospects report for 2012 warned developing countries across the globe to prepare for further downside risks, as Euro Area debt problems and weakening growth in several big emerging economies dim global growth prospects.

The bank has lowered its growth forecastfor 2012 to 5.4 per cent for developing countries and 1.4pc for high-income countries down from its June estimates of 6.2 and 2.7pc, respectively.

The portion on Pakistan points out that the country`s economy firmed in the second half of 2011. Industrial production surged to grow at a robust 32.1pc annualised pace during the three months ending in October, after falling at 9.1 and 10.1pc rates during the first and second quarters, respectively.

Part of the strengthening in growth reflects base effects due to the widespread flooding that had hampered activity in the second half of 2010. Since the floods occurred in July and August 2010, GDP growth on a fiscal year basis (ending June-2011) slowed to 2.4pc.The report notes that Pakistan`s weak growth outturns are also tied to `worsening security conditions, accompanied by greater political uncertainty and a breakdown in policy implementation`.

The report also notes that `infrastructure bottlenecks, including disruptions in power delivery,` remain widespread.

A notable bright spot has been a strengthening of exports, evident particularly in the first half of 2011, led by textiles that surged 39pc in the first half of the year.However, like India, Pakistan`s export volume growth saw a sharp fall-off in October. Indeed, Pakistan`s export volumes fell to a minus 46pc rate in the three-months ending October.

Along with an upswing in worker remit-tances inflows, robust exports have supported Pakistan`s external positions and contributed to an improvement in the current account from a deficit of 0.9pc of GDP in 2010 to a surplus of close to 0.5pc of GDP in the 2011 calendar year.

The World Bank notes that monetary tightening in Pakistan brought about positive real lending rates in early 2011 as well, the first time since late 2009. South Asia`s general government fiscal deficit projected at 8.3pc of GDP in 2011 and significantly higher than in most other regions is down only slightly from 8.8pc in 2010.

The bank points out that for South Asian nations, including India and Pakistan, domestic crop conditions and price controls are more important determinants of domestic food price inflation.

These factors have contributed to inflationary pressures in the region in 2011. Administered fuel price increases in Pakistan have also contributed to price pressures, although pass through of international price increases hasbeen incremental and partial, such that some targeted local food and fuel prices remain subsidised to varying degrees and below international levels.

Regional monetary policy authorities face several challenges in reducing inflation.

More recently, currency devaluation has contributed to inflation as well. In Pakistan, monetary authorities have also been monetising the deficit, complicating the efficacy of other monetary pol-icy efforts to reduce inflation. A key factor working against monetary policy efforts is the overall stance of fiscal policy, which despite some consolidation, remains very loose.

Monetary authorities in Pakistan have responded to persistent price pressures by raising policy interest rates and/or introducing higher reserve requirements.

Lower revenue growth has contributed to larger fiscal deficits inPakistan. Terms of trade losses are estimated at about 1.9pc of GDP for the region in aggregate. India and Pakistan saw negative impacts of close to 1.8pc of GDP estimated January through September 2011 terms of trade impacts relative to 2010.

Remittance inflow to Pakistan rose by an estimated 25pc in 2011, partly in response to the widespread flooding in the second half of 2010.

International reserve positionsin South Asia have generally improved since mid-2008. Latest readings of foreign currency holdings were equivalent to at least three-months of merchandise imports in Pakistan.

Regional inflationary pressures in South Asia are projected to come down over the forecast horizon, assuming continued expansion of crop production in India, Pakistan, Sri Lanka and a decline in international fuel prices reflecting weaker globalactivity in 2012.

A good crop year (2011-12) in much of South Asia and sustained high regional stocks are providing a buffer for grain prices and import demand in 2012.

Worker remittances inflows which were equivalent to 5pc of GDP in 2010 Pakistan could slow markedly through second round effects of weakened domestic demand in migrant hostcountries, largely located in the Arabian Gulf.

Tuesday, January 10, 2012

Pakistan - All parties Council on Balochistan

THE pledge by PML-N leader Nawaz Sharif to convene an all-parties conference on Balochistan and the PPP`s willingness to join the APC are at least positive sentiments in the context of the longsuffering province. While violence in the province is down from the peak of the latest insurgency several years ago, the killings on both sides remain unacceptably high. On the Baloch side, the absence of Brahmdagh Bugti and Haribyar Marri from the country appears to have been more than compensated for by the rise of middle-class, educated, non-tribal insurgents like Dr Allah Nazar. The demand of the separatists, then, however small their numbers, continues to dominate the security landscape in Balochistan.

On the state`s side, the continuation of the socalled `kill and dump` policy in blunt terms, the extrajudicial execution of Baloch accused of direct or indirect involvement in the insurgency has meant that even though the Musharraf-era fullblown military operation is no longer in evidence, the mistrust of and anger towards the state felt by swathes of the Baloch population has not ebbed.

An APC in this difficult environment would appear to have few chances of success. But the support of the PML-N and the PPP at least brings to the table the combined strength ofPakistan`s two largest political parties and perhaps what is needed to bring the warring sides closer towards negotiations are powerful interlocutors.

Having said that, the APC will only be able to achieve anything of note if the full spectrum of the Baloch are represented there. Even if at this stage the attempt is only to hear the grievances of the mainstream Baloch nationalists, engaging the more militant separatists would be essential for a realistic road map to peace. To include the separatists though there is a crucial caveat in that it is not known if the separatists would respond to overtures from the PML-N, the PPP or the moderate Baloch parties would by no means imply an acceptance of their demand for an independent Balochistan. The territorial integrity of Pakistan cannot be up for any kind of negotiation.

However, the fact remains that the use of violence to suppress the fifth Baloch insurgency has been going on for at least seven years now and Balochistan still does not appear to be a province on the verge of returning to normality. A political solution is the only way to rescue Balochistan. Crush the separatists through the use of force and the state may eventually succeed in ending the fifth insurgency, but it would almost certainly set the stage for a sixth insurgency down the road.

Pakistan - Atif Aslam's Concert, 3 girls died

LAHORE, Jan 9: Three girls were killed and five others injured when a stampede took place during a musical concert for students at the Alhamra Cultural Complex on Monday night.

A large number of students fell unconscious.

The concert by prominent singer Atif Aslam was organised by a well-known private college.

The injured were taken to nearby hospitals.

Punjab Chief Minister Shahbaz Sharif ordered an inquiry into the incident.

DIG Operations Ghulam Mahmood Dogar told Dawn that there were around 7,000 students in the hall with a capacity for 4,000.

He said that preliminary investigation showed that a group of girls had rushed to take autograph of Atif when he was leaving at the end of the concert.

He said the concert started late and stretched beyond its scheduled time.

Parents, who had come to pick their wards, were making calls on students` cellphones, asking them to come out early.

Because of the rush, the college management had asked the complex administration not to open the main gate because students would use the single exit and that triggered panic among the students.

`The girls, who were trying to approach Atif, started pushing each other and some security guards used batons to keep them away from the singer,` he said, adding that the girls ran towards the exit gate which apparently led to the stampede.

A private TV channel, however, reported that the stampede was caused by rumours about a bomb.

Shoes and other belongings of students were found scattered over the place.

Two of the dead girls were identified as Maheen Naseem, 17, of Walton Road and Farah Nawaz of Canal View. The injured, Wajiha, Safeera, Nimra, Zoya and Muneeba, were admitted to surgical and medical wards of Services Hospital.

A hospital official said that three of the girls had arrived dead and five others were under treatment with light to moderate injuries.

She said that two of the injured were discharged after treatment and the condition of three others was stable.

Monday, January 9, 2012

Pakistan - Zardari`s interview with a private TV

PRESIDENT Zardari`s interview with a private TV channel has laid down two important markers in the ongoing judiciaryexecutive saga. One, the president said that as long as his party is in power, the cases under the NRO that the Supreme Court has demanded be reopened will not be reopened. Two, he appearedtosuggestthe government would consider itself bound by the results of the inquiry of the parliamentary committee on national security into the `memogate` scandal leaving some room for doubt about the government`s response to the possible recommendations of the SC-mandated judicial commission. With the court seemingly determined to see its orders implemented, the country may have to yet again brace itself for a rocky month ahead. While the legal tools at the disposal of both sides can in theory drag out the disputes almost indefinitely, it is the unpredictable political consequences of when two institutions refuse to budge that are of concern.

Advising that caution and common sense be applied by both sides is perhaps the most that bystanders, i.e. the public at large, can do at this stage.

On a more positive side, the president appeared to keep the door open to resolving the issue of early general elections with the political opposition, perhaps the wisest option in an arena of dwindlingchoices for the PPP-led dispensation in Islamabad.

Indeed, if the other institutions of state are willing to listen, there is some wisdom in giving the civilian political forces the time and space to resolve electoral and other pending issues in the political arena. Given that no party has a majority and so cannot dominate the rest at the moment, there is a sense that pragmatism could win the day when it comes to settling disagreements over an electoral time frame, the caretaker set-up, the strength of the Election Commission, voter lists, etc. But restraint will be needed by all sides: the government would need to avoid pushing the political opposition towards less salutary options while the political opposition would need to show patience and curb its instincts to take short cuts to getting its way.

Perhaps the least impressive part of the president`s wide-ranging comments concerned his government`s handling of the economy. In expressing confidence about the PPP`s prospects ahead of the next election, Mr Zardari flagged the gamut of social-protection schemes launched by his government. Rather than improve economic fundamentals, the president`s recipe is to dole out more patronage, an approach almost guaranteed to deepen and widen the economic hurt going forward.

Pakistan - New Province, promise by Gillani

MULTAN, Jan 8: Prime Minister Syed Yousuf Raza Gilani said here on Sunday that his government was determined to set up a new province in the Seraiki belt.

`People are seeking their rights and it is my promise to them that a Seraiki province will soon emerge and the people of the area will soon get their own province and the assembly,` the prime minister said while addressing a public meeting at Khanpur Maral.

He said that although some people in the opposition termed the issue of Seraiki province an election stunt of the PPP, but, he added, his party was sincere in its promise to set up new province.

`They (opposition) should suggest ways which should be used for creation of the Seraiki province. They should say whether they want the new province to be created through the ballot or through a protest movement.` He asked the opposition to tell the people what course should be taken.

Referring to severe power and gas shortages which have triggered riots and disturbances across the country, the prime minister claimed that his government would resolve the crisis within a few months.

Mr Gilani said the government had strengthened provinces by giving them autonomy, adding that the PPP was a federal party with roots in the entire country.

`Two things are necessaryfor security of the country; one of them is the Constitution and the other is a federal political party,` he said, adding that attempts to weaken the federal political party would weaken the country.

He said the government was committed to solving all problems ofthe country to accomplish the mission of assassinated PPP leaders.

He claimed that the PPP government was moving forward in accordance with the Constitution and people who were accusing the PPP of not acting in accordance with the Constitution, were `misleading the masses`

Mehran base left unprotected despite forewarning

ISLAMABAD, Jan 8: The authorities had knowledge of Al Qaeda plans back in 2009 to attack Islamabad`s National Defence University as well as naval installations and yet failed to protect the Mehran base in Karachi last year.

A naval officer, who was court martialled, has been sentenced to 15-year imprisonment for planning a series of attacks on important naval installations and the National Defence University (NDU) and taking hostages.

According to the confessional statement, Al Qaeda was planning to hold hostage senior officers at the National Defence University and use them to negotiate the release of detained militants, besides attack-ing the Naval Headquarters and targeting other important buildings of the navy.

It is important to point out that in 2009 militants attacked the GHQ in Rawalpindi and took military officers hostage. Despite this attack and the knowledge that similar attacks had been planned, the government and military authorities failed to foil the attack on Mehran base.

Mohammad Israrul Haq, a junior officer of the navy, was on May 6, 2010, awarded 15 years` rigorous imprisonment besides being dismissed from service. Having served in the navy for 19 years, his last place of posting was PNS Zafar in Islamabad.

In his statement, which played animportant role in his conviction, the accused admitted to meeting Al Qaeda members in Makeen and Angoor Adda where they discussed the locations of important naval installations.

He also said that Zafar Iqbal, a son of another former naval officer, was his childhood friend who had introduced him to Azmy, a local Al Qaeda leader who was living in Makeen area of South Waziristan.

Azmy planned a series of attacks on naval offices but after he died in a drone attack, Sheikh Ahmed replaced him. The location for the meetings then shifted from Makeen to near Angoor Adda in Afghanistan.

According to his statement, Israrorganised a surveillance visit for his friend Iqbal to the environs of the NDU.

He claimed that though Al Qaeda had arranged 12 fighters for the attack, Israr himself backed out at the eleventh hour because he was not willing to participate in an attack on his homeland; instead he offered help to attack Nato forces in Afghanistan.However, his family denies the guilt of Israr and his counsel has termed the proceedings of the court martial as unjust and demanded that the naval chief reinvestigate the matter.

According to his mother Khatima Bibi, widow of Lt Amanul Haq of Pakistan Navy, on June 4, 2009, some unknown people took awayher son, Israr, in an official car that belonged to the navy. He has been missing since then.

After the disappearance of her son, she repeatedly contacted naval officials for her son`s whereabouts but she says her requests fell on deaf ears.

She then approached the Supreme Court where the matter was referred to the commission for recovery of missing persons.

After his conviction, his lawyer requested the naval court for the detans of the trial proceedings but this was turned down.

The authorities finally provided the details to the counsel recently on basis of which he pointed out violations of human rights in his trial.

After getting the details of trial proceeding, Israr`s counsel filed an appeal in the naval appellate court in the last week of December which is expected to be taken up next week.

Subsequently, in a letter addressed to the naval chief, the counsel alleged that Israr was picked up by naval intelligence personnel on June 4, 2009, and while his family thought of him as a missing person, his trial commenced on March 15, 2010.

The counsel is of the opinion that Israr`s conviction was based on his confession that was not recorded before the court and was recorded after 96 days of his illegal confinement; hence it could not be considered as evidence.

He has also pointed out that Israr was kept in solitary confinement for more than nine months whereas it has been held by the superior courts that solitary confinement could not exceed 15 days.

He said the naval authorities had repeatedly changed their stance and refused to provide the copy of trial proceedings till the orders of the LHC.

Wednesday, January 4, 2012

Pakistan - Less Suicides in 2011

SLAMABAD, Jan 3: Pakistan saw a significant decline in suicide attacks in 2011 and their number went down to 45 from 68 in 2010 and 87 in 2009.

According to the `Security Report 2011` of Pakistan Institute for Peace Studies (PIPS), 676 people, mostly civilians, were killed and 1,462 injured in suicide attacks last year.

More than half of these attacks (27) took place in Khyber Pakhtunkhwa (KP), claiming the lives of 449 people, says the report which will be formally released on Wednesday.It says 2,985 incidents of violence were reported in 2011, compared to 3,393 in 2010 and 3,816 in 2009, a decline of 12 and 22 per cent, respectively.

Interestingly, the report also puts into the category of violent incidents the operations carried out by security forces against militants in different parts of the country, particularly in tribal areas, and incidents of cross-border attacks.

`Casualties in violent incidents also went down from 10,003 in 2010 to 7,107 in 2011, a decrease of 29 per cent. The number of injured declined from 10,283 in 2010 to6,736 in 2011, a decline of 34 per cent,` the report says.

Terrorist attacks carried out by militants and nationalist insurgents as well as sectarian-related incidents of violence claimed numbered 1,966 and claimed 2,391 lives and injured 4,389 people in 2011. The Federally Administered Tribal Areas (Fata) suffered 675 terrorist attacks, the highest for any region of the country during the year.

Insurgency-hit provinces of Balochistan and KP faced 640 and 512 terrorist attacks, respectively, in 2011. Fifty-eight attacks were reported in Karachi and 21 in otherparts of Sindh, 30 in Punjab, 26 in Gilgit-Baltistan and four in Islamabad. No terrorist attack, according to the report, was reported from Azad Kashmir.

The highest number of casualties in terrorist attacks in 2011 was reported from KP where 820 people were killed and 1,684 wounded, followed by Balochistan (710 killed and 853 injured) and Fata (612 killed and 1,190 injured). A significant number of casualties in terrorist attacks were also reported from Punjab and Karachi.

According to the report, security forces launched 144 attacks on mili-tants in various parts of KP and Fata, killing at least 1,016 militants.

A total of 279 militants surrendered to the authorities while 4,219 were arrested. A few of them were put on trial, the report says.

The report attributes the fall in conflict-related casualties largely to military operations in tribal areas and KP and to fewer suicide bombings and drone strikes in 2011.

The overall incidence of sectarian violence declined by nine per cent from 152 incidents in 2010 to 139 in 2011. However, unlike in 2010, incidents of sectarian violence were reported from several cities and towns, claiming 79 lives in Karachi, 80 in Quetta, 50 each in Kurram Agency and Dera Ghazi Khan and 26 in Mastung.

In 84 incidents and clashes along the country`s borders, 261 people were killed and 206 injured in 2011. In 75 US drone attacks in 2011, 557 people were killed and 153 injured.

On the political and administrative front, the report says, the Fata reforms package was a positive development, although implementation remained lacking. The compensation mechanism for civilian victims of terrorist attacks remained a critical issue and hundreds of schools in Fata have remained closed since 2009.The report highlights the absence of effective political means to address the situation in Balochistan. It says: `The tribal guerilla warfare of earlier years had morphed into a robust urban insurgency in the province.

Enforced disappearances, targeted killings and recovery of bullet-riddled bodies from across the province continued.

The repeated breakout of ethno-political and sectarian violence and the consistent failure to restore peace in Karachi and the ability of terrorists to infiltrate government departments and security agencies have been pointed out as critical concerns.

`Reforms with a view to bring those involved in acts of terrorism and violence to justice in an expeditious manner, improved prosecution, an effective witness protectionprogramme, and rehabilitation of detained militants` have been highlighted as areas in urgent need of improvement.

The report says that despite many challenges Pakistan faced on account of terrorism, it is yet to develop a comprehensive counter-terrorism strategy. The focus has been on countering insurgency in tribal areas, mainly through the use of military force and raising local communities to confront the militants.

While development was claimed to be a key pillar of the government`s counterinsurgency campaign, a proper development strategy remained missing, the report adds.

The accompanying tables give a complete picture of the security situation in the country in 2011.