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MAY 2014

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Volume-III, Issue-V
Challenging Transition
AFGHANISTANS
Challenging Transition
AFGHANISTANS
Page: 8
INTERVIEW
USC breathing
relief to the masses
Page: 14
A prayer for
the dead
Page: 20
Master Chef
comes to Pakistan
EDITORIAL
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Publisher: M Sajid
Printers: R.A. Printers
CONTACT
EDITOR
Tausif-Ur-Rehman
DEPUTY EDITOR
Maria Khalid
CORRESPONDENTS
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Afrah Jamal
ADVISORY BOARD
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MARKETING
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0334-7957571
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GRAPHICS
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PRICE: 250
inally, after budgeting for three consecutive years and three
failed attempts to launch it in the previous regime, the
PML-N government successfully auctioned four 3G and one
4G licenses. It is perceived to be a game changer in the
stalled telecom sector where voice segment has been saturated for
the past three to four years after experiencing mushroom growth in
2004-09.
Virtually every country in the region, including Afghanistan, has
already rolled out next-generation telecom services, so its a
no-brainer to say that there are gains for all stakeholders in Pakistan:
the service providers, consumers and the government. But, its too
early to say how much and when this new regime of data is going to
reap its fruits.
The primary gains for the government are visible. The licensed
amount of $1.1 billion is slightly less than what was budgeted
(Rs120 billion) and what was committed to the IMF ($1.2 billion). But
the catch is in payment schedule--half of the licensed fee is going to
be submitted within a month while the rest is in equal annual
instalments spanned over ve years. Thus, around half of the
relevant budgeted non-tax revenue target would be achieved. Not
bad, considering that the government was characteristically
over-optimistic about the spectrum auction.
The tough part is to deal with the fund target wherein the
non-adjustable $1.2 billion is used in computing net international
reserves. The situation may become even grimmer when, barring
Zong, all other winning 3G licensees (Mobilink, Telenor and Ufone)
will likely raise the nancing for their respective license fee
payment from local banks with which they already have existing
relationships. Yes, that will be rupee nancing and will not be
counted in NIR calculation. That leaves only Zong to bring in foreign
exchange in lieu of license fee which is $511-$517 million for its 3G
and 4G licenses-50 percent of that comes to at least $255 million.
This leaves a gap of $945 million and nothing but a fund waiver can
let the government live on it. Lets see how Dar and his team
renegotiate with the funds mission next week.
That narrates the immediate gains to the government. The benets
to be accrued to the economy at large will materialize over a
medium to long term. Those benets include FDI inows, both
white- and-blue-collar job-creation in the telecom sector, and
indirect new business opportunities. In order to make the mobile
broadband services accessible to users at the earliest, 3G operators
will strive to increase their investments in network rollout and
backhaul infrastructure development (e.g. optic ber and submarine
cable connectivity). The pace of that investment and expansion is,
however, contingent upon how well the market responds to
high-speed data service oerings over time.
Back then, market deregulation led to a competition which in
subsequent years changed the landscape of the sector, voice
services became more and more aordable, and the cellular
companies reach eventually expanded their footprint to over 90
percent of the geography. It is only time that would tell how this new
wave revitalizes the Telco sector and unleashes the potential in the
data market.
Fiscal impacts of the
spectrum auction
F
APR 2014 5
MAY 2014
D I S C L A I M E R
Utmost care is taken to ensure that articles and other information published are up-to-date and accurate. Furthermore,
responsibility for any losses, damages or distress resulting from adherence to any information made available through the
contents is not the responsibility of the magazine. The opinions expressed are those of the authors and do not necessarily
CONTENTS
Utility Stores Corporation
breathing relief to the masses
Atack on Hamid Mir
Afghanistans challenging
transition
A prayer for the dead
Post 2001 crisis revival
of Turkeys economy
Honey nets criminal profling
in cyber crimes
Master Chef comes to Pakistan
Theatre Festival grace
the city ambiance
The tricks of the trade
A hindrance to opportunities
The gulf states constellation
BOIs investment generation
cycle
Using the scorching sun to
our advantage
Smoking is really injurious
to health but the economy!
Privatization! How and for what
Pakistans farmers tackle
climate change
Does Religion need democracy
Hashoo Foundation frst alumni
8
11
12
14
16
18
20
22
24
27
28
30
32
33
34
36
38
39
Post 2001 crisis revival
of Turkeys economy
Exclusive
Page: 6
Wonders
of 3 G
Page: 24
The tricks
of the trade
Page: 28
The gulf states
constellation
Page: 34
Privatization!
How and
for what
GDP due to this technology.
It is hoped that availability of high
speed mobile broadband services
in both urban and rural areas will
encourage a more connected
community and promote
e-commerce related activities. The
deployment of 4G technologies will
also provide our engineers and
technicians to acquire the latest
skills and thus become competitive
in the international market.
Pakistan has more than 132 million
mobile phone subscribers but has
lagged behind its neighbours in
setting up 3G, which is now the
norm in many countries. Even
Afghanistan, a less developed
country has had the 3G technology
since 2012.
Concluding Remarks
It is a major jump in the technology.
The wireless network technology
will help boost data transfer speed
up to 200 kilobits per second. It
will further advance smart phone
technology introduced in the third
generation technology. It will help
students get required information
within few seconds.
On their part, the cellular operators
will have to invest billions of
dollars to roll out 3G/4G
technology in Pakistan for
modernizing their networks,
promoting research, development
and increasing the number of
skilled workforce over the next few
years.
According to PTA, China Mobile is
going to invest $1 billion in
Pakistan after winning 3G/4G
licenses in order to promote
research and development.
The government has also asked the
cellular companies to ensure
transfer of technology to Pakistan.
The auction of 3G/4G has been
done in Pakistan but the latest
smart phone manufacturing is yet
to be observed in the country.
MAY 2014 6
www. economi cafai r s. com. pk
TECHNOLOGY
he government of Pakistan
has recently sold o four
licenses to provide 3G
services, which would
allow broadband-speed internet on
mobile phones, and one for
superfast 4G connections which
was heralded by the government
ocials as a success that would
positively aect the countrys
economy.
Pakistan Telecommunication
Authority (PTA), after the auction,
announced that Zong and Mobilink
won 10MHz spectrum each for 3G
license. Ufone and Telenor were
successful in winning 5MHz
spectrum. Zong was even able to
get an additional license for 4G
technology. PTA generated $ 1.182
billion; $902.82 million from 3G
and $210 million from 4G spectrum
Auction for 3G was divided into
eight rounds. Two lots of 10 MHz
were there for auction along with
two lots of 5MHz spectrum. After
the 4th round, there was no change
in the bids. 5MHz lots were both
sold on their base price. License for
4G was given away without any
auction because the demand turned
out to be less than supply.
3G auctions were of less than 2100
MHz band, the available spectrum
of 30 MHz was distributed into 10
MHz, 5 MHz, 5 MHz and 10 MHz out
of which ZONG won the bidding of
10 MHz, Mobilink was successful in
winning 10 MHz, Ufone and Telenor
won 5 MHz each.
Zong won the 10MHz of 2100 band
at the price of $306.9, Mobilink at
$300.9 million, Ufone and Telenor
of 5 MHz at $147.5 million each,
totaling the amount at $902.820
million. Whereas Zong won 1 block
of 4G band of 1800 MHz at the base
price of $210 million that was set
by the government.
The total amount accrued by the
sale is $1.12 billion below a bullish
prediction of $2 billion made by
Finance Minister Ishaq Dar in
January this year. But the minister
said that one 4G spectrum slot,
which was also up for sale but could
not be auctioned would be oered
again at a later time to raise more
funds.
He said that $291 million for
license in 850 MHz and $210
million worth 4G license, which was
left out for foreign players is still
available, predicting that
government can still generate huge
sums by presenting these licenses.
Minister of State for Information &
Technology, Anusha Rehman
termed it a landmark event in
the Pakistan's telecom
history.
Whereas a few days after the
spectrum auction, Warid Telecom,
not having participated in the bid
announced its plans for 4G LTE
possibly becoming the rst
operator in the market to deploy 4G
LTE network in the country.
PTA ocials conrmed that Warid
can oer 4G LTE services with its
existing license, as it has a
technology neutral license and a
spectrum of 1800 MHz. However, it
will have to get necessary approvals
from the authorities before
launching any such service.
Importance and Utility
After the arrival of 3G & 4G
technologies, there would be a
boom in the availability of branded
mobile models (smart phones) in
the country which would
discourage pirated and smuggled
handsets. Education, health,
business sectors would be further
strengthened with the introduction
of 3G & 4G technologies. It would
expand countrys opportunities in
the business sector, contributing to
increased competitiveness and
promoting innovative new
wirelessly enabled businesses and
services.
There would be drastic reduction in
the working capital of Information
technology (IT) sector. High speed
data transferring and modes of
connectivity would be changed.
There would be boom in
E-Commerce, E-Banking, E-Learning,
E-Services, Telemedicine and the
T
WONDERS of
last but not the least teleshopping.
The services of 3G & 4G will make
life more productive, secure and
meaningful, empowering people to
transform the way they live, learn,
work and play.
Consumers will now experience
more accurate, faster, easier and
friendly utilities. They will have fast
speed and good video quality,
roaming capability, broad
bandwidth and high speed
communication. Services like wide
area wireless voice
telephone, mobile internet
access, video calls and TV and
broadband wireless data will
be easily available. Now,
people are much interested in
buying 3G-powered devices
and tools.
The new dawn of
technological revolution in
the shape of 3G & 4G would
help enterprises to improve
their asset and resource
management capabilities,
streamline their operations
and ultimately, achieve
signicant cost saving. For example
employees working osite with
mobile laptops or handheld devices
may access company resource
management solutions and
dynamically collaborate with
intra-oce systems that link
warehouses, suppliers and
customer databases.
Socio-Economic Benets
Next generation mobile
communication technology has not
only become source of immediate
revenues for the cash strapped
economy of Pakistan but it also
promises huge monetary gains for
the country. 3G & 4G technology
comes with a promise of increase in
GDP worth billions of dollars.
According to ITU World
Telecommunications Database
Statistics, Economic studies
indicate that for every one percent
increase in a countrys broadband
internet penetration, GDP per
capita increases by roughly 10
percent (USD), and a one percent
increase in mobile penetration
results in a GDP per capita increase
of roughly ve percent (USD).
A study by the UK-based Plum
consultancy in August last year said
3G could boost Pakistans GDP by
380 billion to 1,180 billion rupees
($3.8 billion to $11.8 billion) by
2020, and between 23 billion and
70 billion rupees for the additional
tax revenue generated by 3G.
Information Technology Minister
Anusha Rehman, speaking at the
occasion, claimed that the auction
would spur employment in the
country. Around 900,000 jobs will
be generated due to 3G/4G
technology, she said. She also
hoped that there will be around 1.5
to 1.8 per cent additional growth in
GDP due to this technology.
It is hoped that availability of high
speed mobile broadband services
in both urban and rural areas will
encourage a more connected
community and promote
e-commerce related activities. The
deployment of 4G technologies will
also provide our engineers and
technicians to acquire the latest
skills and thus become competitive
in the international market.
Pakistan has more than 132 million
mobile phone subscribers but has
lagged behind its neighbours in
setting up 3G, which is now the
norm in many countries. Even
Afghanistan, a less developed
country has had the 3G technology
since 2012.
Concluding Remarks
It is a major jump in the technology.
The wireless network technology
will help boost data transfer speed
up to 200 kilobits per second. It
will further advance smart phone
technology introduced in the third
generation technology. It will help
students get required information
within few seconds.
On their part, the cellular operators
will have to invest billions of
dollars to roll out 3G/4G
technology in Pakistan for
modernizing their networks,
promoting research, development
and increasing the number of
skilled workforce over the next few
years.
According to PTA, China Mobile is
going to invest $1 billion in
Pakistan after winning 3G/4G
licenses in order to promote
research and development.
The government has also asked the
cellular companies to ensure
transfer of technology to Pakistan.
The auction of 3G/4G has been
done in Pakistan but the latest
smart phone manufacturing is yet
to be observed in the country.
he government of Pakistan
has recently sold o four
licenses to provide 3G
services, which would
allow broadband-speed internet on
mobile phones, and one for
superfast 4G connections which
was heralded by the government
ocials as a success that would
positively aect the countrys
economy.
Pakistan Telecommunication
Authority (PTA), after the auction,
announced that Zong and Mobilink
won 10MHz spectrum each for 3G
license. Ufone and Telenor were
successful in winning 5MHz
spectrum. Zong was even able to
get an additional license for 4G
technology. PTA generated $ 1.182
billion; $902.82 million from 3G
and $210 million from 4G spectrum
Auction for 3G was divided into
eight rounds. Two lots of 10 MHz
were there for auction along with
two lots of 5MHz spectrum. After
the 4th round, there was no change
in the bids. 5MHz lots were both
sold on their base price. License for
4G was given away without any
auction because the demand turned
out to be less than supply.
3G auctions were of less than 2100
MHz band, the available spectrum
of 30 MHz was distributed into 10
MHz, 5 MHz, 5 MHz and 10 MHz out
of which ZONG won the bidding of
10 MHz, Mobilink was successful in
winning 10 MHz, Ufone and Telenor
won 5 MHz each.
Zong won the 10MHz of 2100 band
at the price of $306.9, Mobilink at
$300.9 million, Ufone and Telenor
of 5 MHz at $147.5 million each,
totaling the amount at $902.820
million. Whereas Zong won 1 block
of 4G band of 1800 MHz at the base
price of $210 million that was set
by the government.
The total amount accrued by the
sale is $1.12 billion below a bullish
prediction of $2 billion made by
Finance Minister Ishaq Dar in
January this year. But the minister
said that one 4G spectrum slot,
which was also up for sale but could
not be auctioned would be oered
again at a later time to raise more
funds.
He said that $291 million for
license in 850 MHz and $210
million worth 4G license, which was
left out for foreign players is still
available, predicting that
government can still generate huge
sums by presenting these licenses.
Minister of State for Information &
Technology, Anusha Rehman
termed it a landmark event in
the Pakistan's telecom
history.
Whereas a few days after the
spectrum auction, Warid Telecom,
not having participated in the bid
announced its plans for 4G LTE
possibly becoming the rst
operator in the market to deploy 4G
LTE network in the country.
PTA ocials conrmed that Warid
can oer 4G LTE services with its
existing license, as it has a
technology neutral license and a
spectrum of 1800 MHz. However, it
will have to get necessary approvals
from the authorities before
launching any such service.
Importance and Utility
After the arrival of 3G & 4G
technologies, there would be a
boom in the availability of branded
mobile models (smart phones) in
the country which would
discourage pirated and smuggled
handsets. Education, health,
business sectors would be further
strengthened with the introduction
of 3G & 4G technologies. It would
expand countrys opportunities in
the business sector, contributing to
increased competitiveness and
promoting innovative new
wirelessly enabled businesses and
services.
There would be drastic reduction in
the working capital of Information
technology (IT) sector. High speed
data transferring and modes of
connectivity would be changed.
There would be boom in
E-Commerce, E-Banking, E-Learning,
E-Services, Telemedicine and the
MAY 2014 7
www. economi cafai r s. com. pk
TECHNOLOGY
last but not the least teleshopping.
The services of 3G & 4G will make
life more productive, secure and
meaningful, empowering people to
transform the way they live, learn,
work and play.
Consumers will now experience
more accurate, faster, easier and
friendly utilities. They will have fast
speed and good video quality,
roaming capability, broad
bandwidth and high speed
communication. Services like wide
area wireless voice
telephone, mobile internet
access, video calls and TV and
broadband wireless data will
be easily available. Now,
people are much interested in
buying 3G-powered devices
and tools.
The new dawn of
technological revolution in
the shape of 3G & 4G would
help enterprises to improve
their asset and resource
management capabilities,
streamline their operations
and ultimately, achieve
signicant cost saving. For example
employees working osite with
mobile laptops or handheld devices
may access company resource
management solutions and
dynamically collaborate with
intra-oce systems that link
warehouses, suppliers and
customer databases.
Socio-Economic Benets
Next generation mobile
communication technology has not
only become source of immediate
revenues for the cash strapped
economy of Pakistan but it also
promises huge monetary gains for
the country. 3G & 4G technology
comes with a promise of increase in
GDP worth billions of dollars.
According to ITU World
Telecommunications Database
Statistics, Economic studies
indicate that for every one percent
increase in a countrys broadband
internet penetration, GDP per
capita increases by roughly 10
percent (USD), and a one percent
increase in mobile penetration
results in a GDP per capita increase
of roughly ve percent (USD).
A study by the UK-based Plum
consultancy in August last year said
3G could boost Pakistans GDP by
380 billion to 1,180 billion rupees
($3.8 billion to $11.8 billion) by
2020, and between 23 billion and
70 billion rupees for the additional
tax revenue generated by 3G.
Information Technology Minister
Anusha Rehman, speaking at the
occasion, claimed that the auction
would spur employment in the
country. Around 900,000 jobs will
be generated due to 3G/4G
technology, she said. She also
hoped that there will be around 1.5
to 1.8 per cent additional growth in
Whereas a few days
after the spectrum
auction, Warid Telecom,
not having participated
in the bid announced its
plans for 4G LTE possibly
becoming the rst
operator in the market to
deploy 4G LTE network in
the country.
Mehmood Ul Hassan Khan
The writer is a research scholar,
specializes in geopolitical issues
of the GCC, CIS & South Asia. He has
keen intrest in cross cultural dialogue
& conict resolution.
MAY 2014 8
www. economi cafai r s. com. pk
INTERVIEW
breathing relief to the masses
Utility Stores Corporation
On this particular day in April 2014 I walk hurriedly into a building in Blue Area, which is the head oce of Utility
Stores Corporation (USC), an organization that operates chain stores throughout Pakistan. The appointment with
the Managing Director (MD), Khaqan Murtaza, has been rescheduled due to consumption of the previously
appointed slot on his timetable. As I walk into the oce, I become acquainted with the Managing Director who is
seated across the table with huge piles of paper les stacked on it. The oce is set in a total bureaucratic style,
very spacious with vast windows overlooking Jinnah Avenue in Islamabad. Buered between hoarding and
proteering, the USC network is spread across every nook and corner of the country. It provides basic
commodities to general public at rates lower than the open market. USC is governed by a Board of Directors and
headed by a MD. The current Managing Directortook charge of USC on 15 August 2013. Upon taking the charge,
Mr. Murtaza has taken some major steps to maximize relief to consumers which includes improving the quality of
products and introducing check and balances to stop irregularities and corruption. Every year, at the advent of
Ramadan, the role and importance of USC catches the public eye as more and more people visit these outlets to
buy groceries at subsidized rates. In this exclusive interview with Economic Aairs, the MD of USC talks about
reforms and measures that have been taken to improve the eciency of these welfare stores.
housands of Afghani,
Pakistani, and Central
American farmers who are
now slicing open millions of
acres of poppy pods, harvesting raw
opium - the rst step in heroin
production in the developing world.
Since heroin is a farmers livelihood
and heroin is an addicts life, both are
caught in the middle of an American
drug policy that is at war with itself.
You see, American pharmacology
companies have created millions of
drug-dependent people by
prescribing them addictive painkillers
made with opiates derived from
Afghanistan and Pakistan. Meanwhile,
the addiction rehabilitation eorts in
America have been cut o or
drastically reduced to save the
countrys money. Now, the desperate
are turning to heroin for solace, as the
most powerful nation on earth is
beginning to look like it might bite the
hand that feeds it.
Americas drug policy spins on an axis
of opiates. For centuries mankind has
used heroin to treat pain, although it
currently has no lawful medical use in
the United States. In countries such as
the UK and the Netherlands, doctors
prescribe heroin to relieve the pain of
trauma, post-surgery discomfort, end
stage cancer, cesarean sections, and
even heart attacks. Some physicians
even prefer heroin over morphine
because it is more fat soluble and can
reach the target site quicker. In the
United States, however, its a dierent
story.
Around 2010, small pain
management clinics started popping
up in America. These makeshift clinics
oered no beds, exam tables,
medicines, or testing tools and were
little more than doctors sitting behind
tables selling prescriptions with a
minimum sta. The more money the
patient had, the more drugs they got.
In a country where capitalism is the
closest thing to a moral consensus,
making money often seems like the
only thing to do. Indeed, the business
is cash and the books are sloppy.
In 2012, the American company,
Actavis, grossed $5.9 billion in prots
from its exclusive rights to
manufacture and distribute
oxycodone. This is nearly three times
the revenue of Afghanistans entire
government. The success of such pill
mills is largely a result of Americas
fragmented and inecient legal
system that dates back two centuries
ago when states or provinces
mistrusted one another and a central
government. The national
government controls use of many
dangerous drugs, spending billions in
a war sieged to cut o the import of
drugs like heroin and cocaine.
Things are dierent with prescribed
drugs though. Those fall under the
aegis of the Food and Drug
Administration, but once a drug wins
FDA approval a doctor can prescribe it
pretty much at his or her own
discretion. Regulation of pain
management doctors is scarce. Even
now, a doctor can be a pain
management specialist by simply
paying $500, passing a criminal
background check, and lling out a
short application. In some states,
dispensing opiate derived drugs has
become a thriving industry.
The American nation, its doctors, and
the pharmaceutical industries have
created millions of drug dependent
victims who come streaming into
emergency rooms and morgues. The
latest gures available from the
National Institute on Drug Abuse
show that deaths from prescription
opioids outpace deaths from all illegal
drugs combined. In addition,
Americas Center for Disease Control
atly stated, Prescription drug abuse
is the fastest growing drug problem in
the United States. The increase in
unintentional drug overdose deaths in
recent years has been driven by a
class of prescription drugs called
opioid analgesics. - CDC Grand
Rounds: Prescription Drug Overdoses
a U.S. Epidemic.
In the past few years the DEA has
developed programs for spotting
inordinate drug prescriptions. This
has produced an impressive string of
arrests. In short, the federal
government was taking millions of
oxycodone doses out of the hands of
addicts. Soon, heroin became the
alternative. A report by the Mayo
Clinic conrmed emergency room
admission for heroin overdoses were
spiking between 2012 and 2014.
As pressure builds against
prescription pain killers, heroin use
increases. Between 2007 and 2012
world. The State Departments
International Narcotics Control
Strategy Report on Pakistan for 2014
was precise on its assessment:
Pakistan is the worlds
highest-volume transit corridor for
opiates and cannabis. Drug trackers
exploit the countrys porous borders
with Afghanistan and Iran, and the
UNODC estimates that 40 percent of
the worlds supply of heroin traverses
Pakistan en route to China, the Gulf
States, Africa, Europe and North
America, often transiting through
Pakistans seaports, airports, postal
routes and coastal areas.
In 2013 Pakistans law enforcement
agencies achieved signicant
narcotics seizures, though no major
drug trackers were ever arrested.
Budget limitations and ckle politics
will continue to hinder any
counter-narcotics eorts. In the
meantime, Pakistani law
enforcement agencies remain
preoccupied with more urgent
threats such as widespread political
violence and extremism.
So now, the worlds most prolic
opium producer sits next door to the
worlds most ecient drug transit
system. Neither Afghanistan nor
Pakistan is in a position to give the
US any aid with its rampant drug
problem. Indeed, both countries
could convincingly argue that the
United States caused the resurgence
of heroin by succumbing to its own
greed.
Sharing the same destiny they both
stand on opposite sides of the world.
The Southern Afghanistan farmer
walks through his poppy elds testing
the pods one by one to ensure his
livelihood; and the heroin addict is
left wondering whether or not this
dose will be the last. Each is equally
desperate for a change.
The addict and the farmer are both
caught at dierent ends of the same
lucrative and killer trap. They
simultaneously listen for the sounds
of impending danger overhead, and
they harken their ears for a song of
salvation. Instead, all they ever hear is
a prayer for the dead.
the number of heroin users in the
United States rose by nearly 300,000
according to the National Institute on
Drug Abuse. Todays heroin users are
no longer the urban, desperate, and
uneducated. Now, even suburban and
rural communities are reporting
signicant increase in heroin use.
Thanks to the new opportunities, India
has developed a thriving business
based on mail-order oxycodone and
oxycontin. The Indian company then
ships the drugs discretely by US Mail
or via some large private courier
company. This puts South Asia in the
cross hairs of American drug policy
even though Afghanistan has become
the worlds largest heroin producer.
Afghanistan is ghting to respond to
an escalating domestic opiate
addiction epidemic, where citizens
are familiar with drug money
laundering through shady nancial
networks.
In America the threats are more
muted. The United States Oce of
National Drug Control Policy
promised aid to Afghanistan for the
nding of alternate economic
sources. However, it closed the bill
with a cryptic promise: The United
States will continue to work with
and provide support to opium
poppy producing countries by
creating both incentives for opium
growers to participate in licit
livelihoods, while simultaneously
strengthening the disincentives to
participation in the narcotics industry
through increased interdiction and
other law enforcement and supply
reduction measures. The report did
not elaborate what those supply
reduction measures would be.
Not surprisingly, the United States
waged a war against marijuana over
the past few decades (in the United
States, almost all problems are solved
by a war of some kind). The country
patrolled its own ocean ports
incessantly. They dropped
plant-killing agents all over large
parts of Colombia and then arrested
or imprisoned foreign nationals who
had never even been there but who
allegedly conspired from their
home countries to break American
drug laws.
It is hard to nd anyone who ever died
from a marijuana overdose, but heroin
overdose crowds the countrys
hospitals. While studies show heroin
overdose admissions spiking, legal
medicinal use is not likely to be
something that the American
government will easily accept. In fact,
the United States Department of
International Narcotics Control
Strategy Report on Afghanistan for
2014 was rather dismissive on the
matter, stating: Illicit drug cultivation,
production, tracking, and
consumption ourish in Afghanistan,
particularly in parts of the south and
southwest where instability is high
and state institutions are weak or
non-existent. A symbiotic relationship
exists between the insurgency and
narcotics tracking in Afghanistan.
Trackers provide weapons, funding,
and other material support to the
insurgency in exchange for the
protection of drug trade routes, elds,
laboratories, and their organizations.
Some insurgent commanders engage
directly in drug tracking to nance
their operations. The narcotics trade
undermines government and rule of
law in all parts of the country where
poppy is cultivated and trackers
operate.
Afghanistan relies on assistance from
the international community in order
to implement its national
counter-narcotics strategies.
Meanwhile, America is just now
nishing up its twelve-year war in
Afghanistan. However, illicit drugs
production (particularly heroin),
ourishes there; and it would be no
dicult task for America to retrot
their new predator drones with
defoliant canisters or even Napalm.
The situation in Pakistan is equally
dismissive, but for a dierent reason:
Pakistan does not play a signicant
role in narcotics production. Instead,
it is like an expressway through which
drugs travel to other parts of the
annual sales volume comes from
USC only.
Another important thing is that
USC prices are the same across the
country. This USC system provides
a check on price cartels as the
dealers in open market cannot sell
their products at unjustied
dierence from that of USC prices.
E.A. The Economic Coordination
Committee of the Cabinet (ECC)
approved a relief package for the
provision of essential food items
at subsidized rates during
Ramadan. Which products
would be subsidized under this
package?
The ECC has approved PKR 2
billion relief for the upcoming
month of Ramadan. We will
ensure uninterrupted
availability of essential food
items to people during the holy
month. In total 18 food items
including our, cooking oil,
Banaspati ghee, pulses, white
gram, gram our and dates
would be provided at
subsidized rates while hundreds
of other items would be
available at reduced prices at
the USC outlets throughout the
country.
E.A. Utility Stores run out of stock
during Ramadan sometimes. How
would you ensure sucient
availability and quality of stock in
all of your stores?
There were two reasons for
inadequacy of basic kitchen items
at the Utility Stores. Before the
start of Ramadan, people rush at
utility stores to buy products at
subsidized rates. The demand
increases enormously and stores
go out of stock in no time. For
instance, last year the average
monthly turnover of USC was PKR 5
to 6 billion, whereas it was PKR19
billion in the single month of
Ramadan last year. It also shows
peoples condence in the USC and
the need for relief it extends.
However, to resolve this issue, we
have already made appropriate
arrangements to meet the
expected demand during Ramadan.
Corruption is another reason for
MAY 2014 9
www. economi cafai r s. com. pk
INTERVIEW
E.A. How important is the role of
USC in the creation of
direct/indirect employment and
poverty reduction?
The scope of Utility Stores is wider
than that of a public sector
commercial organization. Besides
its basic role that is the provision
of essential kitchen items at
aordable prices, USC has a very
important role in the national
fabric. It is a welfare organization
that generates employment
opportunities, gives a mechanism
of price stability, ensures food
security in far ung areas and
acts as an immediate relief
provider during natural
calamities.
The USC has a workforce of
14,600 people across the
country; whereas hundreds of
thousands of people are
associated with it indirectly. I
am referring to the folks
associated with the USCs over
2000 vendor companies.
Additionally, the USCs
franchise scheme provides
self-employment opportunities
to people across the country
with a nominal investment. At
present USC has 1500 franchise
outlets and each franchise employs
at least two workers.
USC has a system of bulk breaking
and packing of essential
commodities e.g. pulses, spices,
rice, and sugar in small packs at
USC warehouses, where we also
provide employment to thousands
of people on contract basis.
USC provides large varieties of
goods to consumers at lower prices
under one roof. USC works on a
very nominal prot margin of 6.5 to
8% and its prices are about 20
percent less than the market price.
Thus it provides food security to
the low income group against high
ination.
E.A. How does the USC provide
assistance to national and
international relief organizations
in case of natural calamities?
The USC has its 6017 outlets and
65 warehouses present in every
nook and corner of the country and
more than 60 % of our outlets are
located in rural areas. What makes
me proud is having branches in
areas like Chitral, Skardu, Awaran,
Balakot, Kashmir, Turbat, Thar and
in towns adjoining national
borders. We have divided the
country in nine zones and our
warehouses are always full of
essential food items. In case of
natural calamities, the USC
warehouses are always the rst
source for supplying food in
distressed areas.
In recent earth quake that hit the
Awaran district of Baluchistan,
relief goods were supplied
immediately from the USC
warehouse. Similarly, USC was a
source of supplies in Thar, Attabad
lake incident, 2005 earthquake,
oods in 2010 and 2011.
E.A. What role of the USC do you
see in the stimulation of national
economy?
Utility Stores Corporation of
Pakistan is the worlds largest
single country retail stores chain.
Just to make you understand the
scale at which USC operates; let me
tell you that the USC is the
countrys biggest buyer of grocery
items. There are over 2000
registered vendors associated with
USC which include companies like
Unilever, Gillette Pakistan, Dalda,
National Foods, Pepsi International
and many others. It may me
surprising for you to know that
almost 15 percent of the Unilevers
It is a welfare
organization that
generates employment
opportunities, gives a
mechanism of price
stability, ensures food
security in far ung areas
and acts as immediate
relief provider during
natural calamities.
the shortage of subsidized items at
stores in small towns. As I
mentioned earlier, the prices at
USC outlets are about 15 percent
less compared to the prices in open
market. Then the Federal
Government also announces big
subsidy on basic items for
Ramadan that doubles the discount
for consumers. The prices of some
basic kitchen items i.e. cooking oil,
sugar, beverages, gram and gram
our and other pulses cut as much
as 30 percent which is sometimes
below the distributor price in open
market. For example, the price of
Dalda cooking oil is PKR194/kg in
open market, whereas it is being
sold at PKR187/kg at USC stores.
After the announcement of
Ramadan subsidy, the price of this
item goes down to PKR 172/kg,
which is 22 rupee less than its
price in market and also less than
the companys distributor price. In
this situation even the
shopkeepers prefer to buy
products from USC and we recently
found some of our store managers
selling subsidized products to the
shopkeepers in bulk.
E.A. What measures have you
taken to stop the corrupt practices
at USC?
I have shown zero tolerance
towards corruption. Since I have
taken charge, I have laid o some
1,500 employees for reasons like
misconduct, illegal appointments
and fake education degrees. There
were around 150-160 hirings by
the interim government.
Appointment letters to 50-60
people were issued for daily wages
with a consolidated salary ranging
from 25,000 to 65,000. Daily
wages were being misused. Then I
dismissed some for misconduct
because sales tax invoice wasnt
being given by those employees.
Hundreds of corruption cases have
been referred to Federal
Investigation Agency (FIA) for the
legal course of action.
Out of total 6,000 stores, 2,300
stores were making losses, mainly
due to their bad market positioning
and over stang of over 1200
surplus employees. I have
relocated most of them to good
business sites and adjusted their
extra sta to big stores and
subsequently, majority of them
started making prots.
E.A. Have you taken measures to
ensure the quality of products
being sold at the Utility Stores?
The USC buys items in bulk and
break them in small packages at its
warehouses. That was the point
where some deceitful vendors in
coalition with USC sta mixed low
quality items in bulk. To stop this
practice, we have stopped
bulk-breaking of spices, pulses and
some other items. Now, the
vendors will pack them at their
own facility and supply it to USC in
packets. Besides USC monogram,
the name of vendor would be
printed on the packets. This way
we have almost eliminated the
chances for a vendor to supply low
quality product, because each
packet displayed at a store comes
directly from the factory. According
to USC agreement with vendors,
the contract will be terminated if
the supplied products are lower
than the approved quality. Our
inspection teams regularly collect
specimens from stores and send
them for lab tests at National
Agriculture Research Center
(NARC), Pakistan Agriculture
Research Council (PARC) and
National Institute of Health (NIH)
tests to match it with the approved
samples. During the last one year,
we have cancelled contracts with a
number of vendors on quality
grounds and subsequently the
complaints regarding quality
issues have almost been nullied.
Moreover, we have also made it
mandatory for all vendors to
submit quality assurance
certicate of their products from
Pakistan Standards and Quality
Control Authority (PSQCA).
E.A. Keeping in view the growing
population, what is the future
expansion plan of USC?
Currently utility stores are
operating in around 74 percent of
the union council and there is a
plan to open USC outlets in every
union council of the country. The
PC-1 of this expansion project is
under consideration at the
Planning Commission. It envisages
opening up of 1,000 stores and 30
warehouses across the country.
Besides that I have planned to
open at least 30 new outlets in
some far-ung areas utilizing
USCs surplus budget.
E.A. Is it true that USC is one of the
largest tax payers in the country?
How much tax did the USC pay to
the national exchequer last year?
Despite working on very nominal
prots and even paying rebates to
our consumers in far ung areas;
the annual turnover of the last
nancial year was PKR 82 billion.
For the scal year 2013, the USC
paid sales tax of worth PKR6
billion. The USC is not a burden on
national exchequer; its a
self-sustaining organization which
meets its running expenses from
its prots. I am committed to
improve the quality of its products
and raising its sales to PKR100
billion this year.
housands of Afghani,
Pakistani, and Central
American farmers who are
now slicing open millions of
acres of poppy pods, harvesting raw
opium - the rst step in heroin
production in the developing world.
Since heroin is a farmers livelihood
and heroin is an addicts life, both are
caught in the middle of an American
drug policy that is at war with itself.
You see, American pharmacology
companies have created millions of
drug-dependent people by
prescribing them addictive painkillers
made with opiates derived from
Afghanistan and Pakistan. Meanwhile,
the addiction rehabilitation eorts in
America have been cut o or
drastically reduced to save the
countrys money. Now, the desperate
are turning to heroin for solace, as the
most powerful nation on earth is
beginning to look like it might bite the
hand that feeds it.
Americas drug policy spins on an axis
of opiates. For centuries mankind has
used heroin to treat pain, although it
currently has no lawful medical use in
the United States. In countries such as
the UK and the Netherlands, doctors
prescribe heroin to relieve the pain of
trauma, post-surgery discomfort, end
stage cancer, cesarean sections, and
even heart attacks. Some physicians
even prefer heroin over morphine
because it is more fat soluble and can
reach the target site quicker. In the
United States, however, its a dierent
story.
Around 2010, small pain
management clinics started popping
up in America. These makeshift clinics
oered no beds, exam tables,
medicines, or testing tools and were
little more than doctors sitting behind
tables selling prescriptions with a
minimum sta. The more money the
patient had, the more drugs they got.
In a country where capitalism is the
closest thing to a moral consensus,
making money often seems like the
only thing to do. Indeed, the business
is cash and the books are sloppy.
In 2012, the American company,
Actavis, grossed $5.9 billion in prots
from its exclusive rights to
manufacture and distribute
oxycodone. This is nearly three times
the revenue of Afghanistans entire
government. The success of such pill
mills is largely a result of Americas
fragmented and inecient legal
system that dates back two centuries
ago when states or provinces
mistrusted one another and a central
government. The national
government controls use of many
dangerous drugs, spending billions in
a war sieged to cut o the import of
drugs like heroin and cocaine.
Things are dierent with prescribed
drugs though. Those fall under the
aegis of the Food and Drug
Administration, but once a drug wins
FDA approval a doctor can prescribe it
pretty much at his or her own
discretion. Regulation of pain
management doctors is scarce. Even
now, a doctor can be a pain
management specialist by simply
paying $500, passing a criminal
background check, and lling out a
short application. In some states,
dispensing opiate derived drugs has
become a thriving industry.
The American nation, its doctors, and
the pharmaceutical industries have
created millions of drug dependent
victims who come streaming into
emergency rooms and morgues. The
latest gures available from the
National Institute on Drug Abuse
show that deaths from prescription
opioids outpace deaths from all illegal
drugs combined. In addition,
Americas Center for Disease Control
atly stated, Prescription drug abuse
is the fastest growing drug problem in
the United States. The increase in
unintentional drug overdose deaths in
recent years has been driven by a
class of prescription drugs called
opioid analgesics. - CDC Grand
Rounds: Prescription Drug Overdoses
a U.S. Epidemic.
In the past few years the DEA has
developed programs for spotting
inordinate drug prescriptions. This
has produced an impressive string of
arrests. In short, the federal
government was taking millions of
oxycodone doses out of the hands of
addicts. Soon, heroin became the
alternative. A report by the Mayo
Clinic conrmed emergency room
admission for heroin overdoses were
spiking between 2012 and 2014.
As pressure builds against
prescription pain killers, heroin use
increases. Between 2007 and 2012
world. The State Departments
International Narcotics Control
Strategy Report on Pakistan for 2014
was precise on its assessment:
Pakistan is the worlds
highest-volume transit corridor for
opiates and cannabis. Drug trackers
exploit the countrys porous borders
with Afghanistan and Iran, and the
UNODC estimates that 40 percent of
the worlds supply of heroin traverses
Pakistan en route to China, the Gulf
States, Africa, Europe and North
America, often transiting through
Pakistans seaports, airports, postal
routes and coastal areas.
In 2013 Pakistans law enforcement
agencies achieved signicant
narcotics seizures, though no major
drug trackers were ever arrested.
Budget limitations and ckle politics
will continue to hinder any
counter-narcotics eorts. In the
meantime, Pakistani law
enforcement agencies remain
preoccupied with more urgent
threats such as widespread political
violence and extremism.
So now, the worlds most prolic
opium producer sits next door to the
worlds most ecient drug transit
system. Neither Afghanistan nor
Pakistan is in a position to give the
US any aid with its rampant drug
problem. Indeed, both countries
could convincingly argue that the
United States caused the resurgence
of heroin by succumbing to its own
greed.
Sharing the same destiny they both
stand on opposite sides of the world.
The Southern Afghanistan farmer
walks through his poppy elds testing
the pods one by one to ensure his
livelihood; and the heroin addict is
left wondering whether or not this
dose will be the last. Each is equally
desperate for a change.
The addict and the farmer are both
caught at dierent ends of the same
lucrative and killer trap. They
simultaneously listen for the sounds
of impending danger overhead, and
they harken their ears for a song of
salvation. Instead, all they ever hear is
a prayer for the dead.
the number of heroin users in the
United States rose by nearly 300,000
according to the National Institute on
Drug Abuse. Todays heroin users are
no longer the urban, desperate, and
uneducated. Now, even suburban and
rural communities are reporting
signicant increase in heroin use.
Thanks to the new opportunities, India
has developed a thriving business
based on mail-order oxycodone and
oxycontin. The Indian company then
ships the drugs discretely by US Mail
or via some large private courier
company. This puts South Asia in the
cross hairs of American drug policy
even though Afghanistan has become
the worlds largest heroin producer.
Afghanistan is ghting to respond to
an escalating domestic opiate
addiction epidemic, where citizens
are familiar with drug money
laundering through shady nancial
networks.
In America the threats are more
muted. The United States Oce of
National Drug Control Policy
promised aid to Afghanistan for the
nding of alternate economic
sources. However, it closed the bill
with a cryptic promise: The United
States will continue to work with
and provide support to opium
poppy producing countries by
creating both incentives for opium
growers to participate in licit
livelihoods, while simultaneously
strengthening the disincentives to
participation in the narcotics industry
through increased interdiction and
other law enforcement and supply
reduction measures. The report did
not elaborate what those supply
reduction measures would be.
Not surprisingly, the United States
waged a war against marijuana over
the past few decades (in the United
States, almost all problems are solved
by a war of some kind). The country
patrolled its own ocean ports
incessantly. They dropped
plant-killing agents all over large
parts of Colombia and then arrested
or imprisoned foreign nationals who
had never even been there but who
allegedly conspired from their
home countries to break American
drug laws.
It is hard to nd anyone who ever died
from a marijuana overdose, but heroin
overdose crowds the countrys
hospitals. While studies show heroin
overdose admissions spiking, legal
medicinal use is not likely to be
something that the American
government will easily accept. In fact,
the United States Department of
International Narcotics Control
Strategy Report on Afghanistan for
2014 was rather dismissive on the
matter, stating: Illicit drug cultivation,
production, tracking, and
consumption ourish in Afghanistan,
particularly in parts of the south and
southwest where instability is high
and state institutions are weak or
non-existent. A symbiotic relationship
exists between the insurgency and
narcotics tracking in Afghanistan.
Trackers provide weapons, funding,
and other material support to the
insurgency in exchange for the
protection of drug trade routes, elds,
laboratories, and their organizations.
Some insurgent commanders engage
directly in drug tracking to nance
their operations. The narcotics trade
undermines government and rule of
law in all parts of the country where
poppy is cultivated and trackers
operate.
Afghanistan relies on assistance from
the international community in order
to implement its national
counter-narcotics strategies.
Meanwhile, America is just now
nishing up its twelve-year war in
Afghanistan. However, illicit drugs
production (particularly heroin),
ourishes there; and it would be no
dicult task for America to retrot
their new predator drones with
defoliant canisters or even Napalm.
The situation in Pakistan is equally
dismissive, but for a dierent reason:
Pakistan does not play a signicant
role in narcotics production. Instead,
it is like an expressway through which
drugs travel to other parts of the
annual sales volume comes from
USC only.
Another important thing is that
USC prices are the same across the
country. This USC system provides
a check on price cartels as the
dealers in open market cannot sell
their products at unjustied
dierence from that of USC prices.
E.A. The Economic Coordination
Committee of the Cabinet (ECC)
approved a relief package for the
provision of essential food items
at subsidized rates during
Ramadan. Which products
would be subsidized under this
package?
The ECC has approved PKR 2
billion relief for the upcoming
month of Ramadan. We will
ensure uninterrupted
availability of essential food
items to people during the holy
month. In total 18 food items
including our, cooking oil,
Banaspati ghee, pulses, white
gram, gram our and dates
would be provided at
subsidized rates while hundreds
of other items would be
available at reduced prices at
the USC outlets throughout the
country.
E.A. Utility Stores run out of stock
during Ramadan sometimes. How
would you ensure sucient
availability and quality of stock in
all of your stores?
There were two reasons for
inadequacy of basic kitchen items
at the Utility Stores. Before the
start of Ramadan, people rush at
utility stores to buy products at
subsidized rates. The demand
increases enormously and stores
go out of stock in no time. For
instance, last year the average
monthly turnover of USC was PKR 5
to 6 billion, whereas it was PKR19
billion in the single month of
Ramadan last year. It also shows
peoples condence in the USC and
the need for relief it extends.
However, to resolve this issue, we
have already made appropriate
arrangements to meet the
expected demand during Ramadan.
Corruption is another reason for
MAY 2014 10
www. economi cafai r s. com. pk
INTERVIEW
E.A. How important is the role of
USC in the creation of
direct/indirect employment and
poverty reduction?
The scope of Utility Stores is wider
than that of a public sector
commercial organization. Besides
its basic role that is the provision
of essential kitchen items at
aordable prices, USC has a very
important role in the national
fabric. It is a welfare organization
that generates employment
opportunities, gives a mechanism
of price stability, ensures food
security in far ung areas and
acts as an immediate relief
provider during natural
calamities.
The USC has a workforce of
14,600 people across the
country; whereas hundreds of
thousands of people are
associated with it indirectly. I
am referring to the folks
associated with the USCs over
2000 vendor companies.
Additionally, the USCs
franchise scheme provides
self-employment opportunities
to people across the country
with a nominal investment. At
present USC has 1500 franchise
outlets and each franchise employs
at least two workers.
USC has a system of bulk breaking
and packing of essential
commodities e.g. pulses, spices,
rice, and sugar in small packs at
USC warehouses, where we also
provide employment to thousands
of people on contract basis.
USC provides large varieties of
goods to consumers at lower prices
under one roof. USC works on a
very nominal prot margin of 6.5 to
8% and its prices are about 20
percent less than the market price.
Thus it provides food security to
the low income group against high
ination.
E.A. How does the USC provide
assistance to national and
international relief organizations
in case of natural calamities?
The USC has its 6017 outlets and
65 warehouses present in every
nook and corner of the country and
more than 60 % of our outlets are
located in rural areas. What makes
me proud is having branches in
areas like Chitral, Skardu, Awaran,
Balakot, Kashmir, Turbat, Thar and
in towns adjoining national
borders. We have divided the
country in nine zones and our
warehouses are always full of
essential food items. In case of
natural calamities, the USC
warehouses are always the rst
source for supplying food in
distressed areas.
In recent earth quake that hit the
Awaran district of Baluchistan,
relief goods were supplied
immediately from the USC
warehouse. Similarly, USC was a
source of supplies in Thar, Attabad
lake incident, 2005 earthquake,
oods in 2010 and 2011.
E.A. What role of the USC do you
see in the stimulation of national
economy?
Utility Stores Corporation of
Pakistan is the worlds largest
single country retail stores chain.
Just to make you understand the
scale at which USC operates; let me
tell you that the USC is the
countrys biggest buyer of grocery
items. There are over 2000
registered vendors associated with
USC which include companies like
Unilever, Gillette Pakistan, Dalda,
National Foods, Pepsi International
and many others. It may me
surprising for you to know that
almost 15 percent of the Unilevers
SAJID GONDAL
Sajid Gondal is a team member
of Economic Aairs.
Email: gondal.sajid@gmail.com
the shortage of subsidized items at
stores in small towns. As I
mentioned earlier, the prices at
USC outlets are about 15 percent
less compared to the prices in open
market. Then the Federal
Government also announces big
subsidy on basic items for
Ramadan that doubles the discount
for consumers. The prices of some
basic kitchen items i.e. cooking oil,
sugar, beverages, gram and gram
our and other pulses cut as much
as 30 percent which is sometimes
below the distributor price in open
market. For example, the price of
Dalda cooking oil is PKR194/kg in
open market, whereas it is being
sold at PKR187/kg at USC stores.
After the announcement of
Ramadan subsidy, the price of this
item goes down to PKR 172/kg,
which is 22 rupee less than its
price in market and also less than
the companys distributor price. In
this situation even the
shopkeepers prefer to buy
products from USC and we recently
found some of our store managers
selling subsidized products to the
shopkeepers in bulk.
E.A. What measures have you
taken to stop the corrupt practices
at USC?
I have shown zero tolerance
towards corruption. Since I have
taken charge, I have laid o some
1,500 employees for reasons like
misconduct, illegal appointments
and fake education degrees. There
were around 150-160 hirings by
the interim government.
Appointment letters to 50-60
people were issued for daily wages
with a consolidated salary ranging
from 25,000 to 65,000. Daily
wages were being misused. Then I
dismissed some for misconduct
because sales tax invoice wasnt
being given by those employees.
Hundreds of corruption cases have
been referred to Federal
Investigation Agency (FIA) for the
legal course of action.
Out of total 6,000 stores, 2,300
stores were making losses, mainly
due to their bad market positioning
and over stang of over 1200
surplus employees. I have
relocated most of them to good
business sites and adjusted their
extra sta to big stores and
subsequently, majority of them
started making prots.
E.A. Have you taken measures to
ensure the quality of products
being sold at the Utility Stores?
The USC buys items in bulk and
break them in small packages at its
warehouses. That was the point
where some deceitful vendors in
coalition with USC sta mixed low
quality items in bulk. To stop this
practice, we have stopped
bulk-breaking of spices, pulses and
some other items. Now, the
vendors will pack them at their
own facility and supply it to USC in
packets. Besides USC monogram,
the name of vendor would be
printed on the packets. This way
we have almost eliminated the
chances for a vendor to supply low
quality product, because each
packet displayed at a store comes
directly from the factory. According
to USC agreement with vendors,
the contract will be terminated if
the supplied products are lower
than the approved quality. Our
inspection teams regularly collect
specimens from stores and send
them for lab tests at National
Agriculture Research Center
(NARC), Pakistan Agriculture
Research Council (PARC) and
National Institute of Health (NIH)
tests to match it with the approved
samples. During the last one year,
we have cancelled contracts with a
number of vendors on quality
grounds and subsequently the
complaints regarding quality
issues have almost been nullied.
Moreover, we have also made it
mandatory for all vendors to
submit quality assurance
certicate of their products from
Pakistan Standards and Quality
Control Authority (PSQCA).
E.A. Keeping in view the growing
population, what is the future
expansion plan of USC?
Currently utility stores are
operating in around 74 percent of
the union council and there is a
plan to open USC outlets in every
union council of the country. The
PC-1 of this expansion project is
under consideration at the
Planning Commission. It envisages
opening up of 1,000 stores and 30
warehouses across the country.
Besides that I have planned to
open at least 30 new outlets in
some far-ung areas utilizing
USCs surplus budget.
E.A. Is it true that USC is one of the
largest tax payers in the country?
How much tax did the USC pay to
the national exchequer last year?
Despite working on very nominal
prots and even paying rebates to
our consumers in far ung areas;
the annual turnover of the last
nancial year was PKR 82 billion.
For the scal year 2013, the USC
paid sales tax of worth PKR6
billion. The USC is not a burden on
national exchequer; its a
self-sustaining organization which
meets its running expenses from
its prots. I am committed to
improve the quality of its products
and raising its sales to PKR100
billion this year.
Photography: WAHAB SALEEM
housands of Afghani,
Pakistani, and Central
American farmers who are
now slicing open millions of
acres of poppy pods, harvesting raw
opium - the rst step in heroin
production in the developing world.
Since heroin is a farmers livelihood
and heroin is an addicts life, both are
caught in the middle of an American
drug policy that is at war with itself.
You see, American pharmacology
companies have created millions of
drug-dependent people by
prescribing them addictive painkillers
made with opiates derived from
Afghanistan and Pakistan. Meanwhile,
the addiction rehabilitation eorts in
America have been cut o or
drastically reduced to save the
countrys money. Now, the desperate
are turning to heroin for solace, as the
most powerful nation on earth is
beginning to look like it might bite the
hand that feeds it.
Americas drug policy spins on an axis
of opiates. For centuries mankind has
used heroin to treat pain, although it
currently has no lawful medical use in
the United States. In countries such as
the UK and the Netherlands, doctors
prescribe heroin to relieve the pain of
trauma, post-surgery discomfort, end
stage cancer, cesarean sections, and
even heart attacks. Some physicians
even prefer heroin over morphine
because it is more fat soluble and can
reach the target site quicker. In the
United States, however, its a dierent
story.
Around 2010, small pain
management clinics started popping
up in America. These makeshift clinics
oered no beds, exam tables,
medicines, or testing tools and were
little more than doctors sitting behind
tables selling prescriptions with a
minimum sta. The more money the
patient had, the more drugs they got.
In a country where capitalism is the
closest thing to a moral consensus,
making money often seems like the
only thing to do. Indeed, the business
is cash and the books are sloppy.
In 2012, the American company,
Actavis, grossed $5.9 billion in prots
from its exclusive rights to
manufacture and distribute
oxycodone. This is nearly three times
the revenue of Afghanistans entire
government. The success of such pill
mills is largely a result of Americas
fragmented and inecient legal
system that dates back two centuries
ago when states or provinces
mistrusted one another and a central
government. The national
government controls use of many
dangerous drugs, spending billions in
a war sieged to cut o the import of
drugs like heroin and cocaine.
Things are dierent with prescribed
drugs though. Those fall under the
aegis of the Food and Drug
Administration, but once a drug wins
FDA approval a doctor can prescribe it
pretty much at his or her own
discretion. Regulation of pain
management doctors is scarce. Even
now, a doctor can be a pain
management specialist by simply
paying $500, passing a criminal
background check, and lling out a
short application. In some states,
dispensing opiate derived drugs has
become a thriving industry.
The American nation, its doctors, and
the pharmaceutical industries have
created millions of drug dependent
victims who come streaming into
emergency rooms and morgues. The
latest gures available from the
National Institute on Drug Abuse
show that deaths from prescription
opioids outpace deaths from all illegal
drugs combined. In addition,
Americas Center for Disease Control
atly stated, Prescription drug abuse
is the fastest growing drug problem in
the United States. The increase in
unintentional drug overdose deaths in
recent years has been driven by a
class of prescription drugs called
opioid analgesics. - CDC Grand
Rounds: Prescription Drug Overdoses
a U.S. Epidemic.
In the past few years the DEA has
developed programs for spotting
inordinate drug prescriptions. This
has produced an impressive string of
arrests. In short, the federal
government was taking millions of
oxycodone doses out of the hands of
addicts. Soon, heroin became the
alternative. A report by the Mayo
Clinic conrmed emergency room
admission for heroin overdoses were
spiking between 2012 and 2014.
As pressure builds against
prescription pain killers, heroin use
increases. Between 2007 and 2012
world. The State Departments
International Narcotics Control
Strategy Report on Pakistan for 2014
was precise on its assessment:
Pakistan is the worlds
highest-volume transit corridor for
opiates and cannabis. Drug trackers
exploit the countrys porous borders
with Afghanistan and Iran, and the
UNODC estimates that 40 percent of
the worlds supply of heroin traverses
Pakistan en route to China, the Gulf
States, Africa, Europe and North
America, often transiting through
Pakistans seaports, airports, postal
routes and coastal areas.
In 2013 Pakistans law enforcement
agencies achieved signicant
narcotics seizures, though no major
drug trackers were ever arrested.
Budget limitations and ckle politics
will continue to hinder any
counter-narcotics eorts. In the
meantime, Pakistani law
enforcement agencies remain
preoccupied with more urgent
threats such as widespread political
violence and extremism.
So now, the worlds most prolic
opium producer sits next door to the
worlds most ecient drug transit
system. Neither Afghanistan nor
Pakistan is in a position to give the
US any aid with its rampant drug
problem. Indeed, both countries
could convincingly argue that the
United States caused the resurgence
of heroin by succumbing to its own
greed.
Sharing the same destiny they both
stand on opposite sides of the world.
The Southern Afghanistan farmer
walks through his poppy elds testing
the pods one by one to ensure his
livelihood; and the heroin addict is
left wondering whether or not this
dose will be the last. Each is equally
desperate for a change.
The addict and the farmer are both
caught at dierent ends of the same
lucrative and killer trap. They
simultaneously listen for the sounds
of impending danger overhead, and
they harken their ears for a song of
salvation. Instead, all they ever hear is
a prayer for the dead.
the number of heroin users in the
United States rose by nearly 300,000
according to the National Institute on
Drug Abuse. Todays heroin users are
no longer the urban, desperate, and
uneducated. Now, even suburban and
rural communities are reporting
signicant increase in heroin use.
Thanks to the new opportunities, India
has developed a thriving business
based on mail-order oxycodone and
oxycontin. The Indian company then
ships the drugs discretely by US Mail
or via some large private courier
company. This puts South Asia in the
cross hairs of American drug policy
even though Afghanistan has become
the worlds largest heroin producer.
Afghanistan is ghting to respond to
an escalating domestic opiate
addiction epidemic, where citizens
are familiar with drug money
laundering through shady nancial
networks.
In America the threats are more
muted. The United States Oce of
National Drug Control Policy
promised aid to Afghanistan for the
nding of alternate economic
sources. However, it closed the bill
with a cryptic promise: The United
States will continue to work with
and provide support to opium
poppy producing countries by
creating both incentives for opium
growers to participate in licit
livelihoods, while simultaneously
strengthening the disincentives to
participation in the narcotics industry
through increased interdiction and
other law enforcement and supply
reduction measures. The report did
not elaborate what those supply
reduction measures would be.
Not surprisingly, the United States
waged a war against marijuana over
the past few decades (in the United
States, almost all problems are solved
by a war of some kind). The country
patrolled its own ocean ports
incessantly. They dropped
plant-killing agents all over large
parts of Colombia and then arrested
or imprisoned foreign nationals who
had never even been there but who
allegedly conspired from their
home countries to break American
drug laws.
It is hard to nd anyone who ever died
from a marijuana overdose, but heroin
overdose crowds the countrys
hospitals. While studies show heroin
overdose admissions spiking, legal
medicinal use is not likely to be
something that the American
government will easily accept. In fact,
the United States Department of
International Narcotics Control
Strategy Report on Afghanistan for
2014 was rather dismissive on the
matter, stating: Illicit drug cultivation,
production, tracking, and
consumption ourish in Afghanistan,
particularly in parts of the south and
southwest where instability is high
and state institutions are weak or
non-existent. A symbiotic relationship
exists between the insurgency and
narcotics tracking in Afghanistan.
Trackers provide weapons, funding,
and other material support to the
insurgency in exchange for the
protection of drug trade routes, elds,
laboratories, and their organizations.
Some insurgent commanders engage
directly in drug tracking to nance
their operations. The narcotics trade
undermines government and rule of
law in all parts of the country where
poppy is cultivated and trackers
operate.
Afghanistan relies on assistance from
the international community in order
to implement its national
counter-narcotics strategies.
Meanwhile, America is just now
nishing up its twelve-year war in
Afghanistan. However, illicit drugs
production (particularly heroin),
ourishes there; and it would be no
dicult task for America to retrot
their new predator drones with
defoliant canisters or even Napalm.
The situation in Pakistan is equally
dismissive, but for a dierent reason:
Pakistan does not play a signicant
role in narcotics production. Instead,
it is like an expressway through which
drugs travel to other parts of the
hat Hamid Mir is a brave
soul is a given. He is also a
renowned, inuential
journalist, hugely popular,
known for his candid views which
on balance have a wide public
appeal but also create powerful
enemies whose shenanigans he
dares to expose. Is he also guilty of
any hidden agenda? If by agenda
one means promoting a cause or
belief, the term by itself has no
negative connotations and may
even be viewed as a virtue. Most
religious scholars, nearly all
politicians, the advertisement
gurus, the Green Peace group and
many others have an agenda and as
long as their motive is clearly spelt
out and the public know where they
are coming from, having an agenda
is desirable, even necessary. The
problem arises when an individual
or group has a hidden motive which
is camouaged and gives the
impression that a particular line of
thought is being supported when in
reality it is being sabotaged. Spies,
charlatans, fraudsters, saboteurs all
fall in this category but Hamid Mir
does not because where he stands
on issues can be read like an open
book. No, Hamid Mir has no hidden
agenda but he does appear to have
an open one. The question,
therefore, is should a journalist
have or pursue a particular agenda
even if it is not a secret one?
Human beings by nature
have biases and to expect them to
be totally unbiased would be unfair
and unrealistic. That said, while in
certain professions biases are an
intrinsic part of their job
description in some others these
have to be kept to the barest
minimum humanly possible. Judges
and journalists fall in this category
because their primary objective is
to ferret out the truth and biases
unfortunately could become
insurmountable hurdles in the
quest for the truth. Hamid Mir is a
journalist and in his chosen
profession, an agenda or bias is
less than desirable. Viewed
specically from
this perspective he
appears to fall
slightly short of
the ideal but to
pass such a judgment without
examining the environment he has
to operate under would not be fair.
Listening to Hamid Mir as a
talk show anchor or reading his
articles one fact stands out very
clearly: Hamid Mir is a very strong
willed person which in the eld of
journalism could promote the
tendency to pursue one line of
thought at the expense of others
because ones mind is already made
up and hence should be resisted. In
his talk shows when discussing
controversial issues he does appear
to be guilty of loading the guest
panel in favour of his viewpoint. His
questions and comments also make
his bias on the subject obvious. At
times he could be accused of being
guilty of insinuations against
individuals or institutions without
sucient burden of proof. In his
favour, however, it must be said that
despite his obvious anti American
sentiments, he has openly
dismissed the conspiracy theories
surrounding 9/11 and 2/11 (2nd
May 2011 episode) that must have
earned him the ire of the religious
right parties, their supporters and
in fact a large section of the public
in the country.
In a society where mega
corruption and malpractices have
become the exclusive domain of
the rich and powerful and where
such practices are accepted by the
public as normal, taking on the
bigwigs can be hazardous to ones
health. A number of brave
journalists have paid the ultimate
price with their lives because they
had the courage to expose the
charlatans while some were
fortunate to escape unscathed from
their murderous assaults. The
attack on Hamid Mir that has
injured him grievously is
unforgiveable, unacceptable and
cannot be condoned, if the fast
deteriorating state of law and order
in the country is to be arrested
before it destroys the very fabric of
the nation state. Personally one
may not agree with some of
Hamids opinions or the journalistic
methodology he has adopted but
that does not give one the right to
try and eliminate him physically. If
he has leveled personal charges
that are frivolous he should be sued
for defamation but given the dismal
state of our judicial system in
regard to addressing libel laws the
next alternative should be to
engage him in his own turf and
counter it with arguments in favour
and let the public be the nal judge.
The malaise in our society
runs so deep that mere verbal
condemnation will not help and
journalists like Hamid Mir might
have no option but to resort to
unconventional means to jolt the
public opinion. It is brave
journalists like him who have
challenged the status quo by
exposing the murderous maas at
the risk of their lives.
You are not perfect Hamid; you have
your idiosyncrasies and aws but
given the hostile environment you
are operating under, I as a citizen of
Pakistan salute you and declare that
you have my full backing and
support. We pray to the Almighty
for your full recovery and may He
give us the courage to stand behind
brave souls like you in your heroic
struggle to cleanse our society of
our major ills. Amen
T
JAMAL HUSSAIN
The writer is a defence analyst and
director of Centre of Airpower
Studies and can be reached at
jamal4701@yahoo.co.uk
Atack on
Hamid Mir
MAY 2014 11
www. economi cafai r s. com. pk
OPINION
housands of Afghani,
Pakistani, and Central
American farmers who are
now slicing open millions of
acres of poppy pods, harvesting raw
opium - the rst step in heroin
production in the developing world.
Since heroin is a farmers livelihood
and heroin is an addicts life, both are
caught in the middle of an American
drug policy that is at war with itself.
You see, American pharmacology
companies have created millions of
drug-dependent people by
prescribing them addictive painkillers
made with opiates derived from
Afghanistan and Pakistan. Meanwhile,
the addiction rehabilitation eorts in
America have been cut o or
drastically reduced to save the
countrys money. Now, the desperate
are turning to heroin for solace, as the
most powerful nation on earth is
beginning to look like it might bite the
hand that feeds it.
Americas drug policy spins on an axis
of opiates. For centuries mankind has
used heroin to treat pain, although it
currently has no lawful medical use in
the United States. In countries such as
the UK and the Netherlands, doctors
prescribe heroin to relieve the pain of
trauma, post-surgery discomfort, end
stage cancer, cesarean sections, and
even heart attacks. Some physicians
even prefer heroin over morphine
because it is more fat soluble and can
reach the target site quicker. In the
United States, however, its a dierent
story.
Around 2010, small pain
management clinics started popping
up in America. These makeshift clinics
oered no beds, exam tables,
medicines, or testing tools and were
little more than doctors sitting behind
tables selling prescriptions with a
minimum sta. The more money the
patient had, the more drugs they got.
In a country where capitalism is the
closest thing to a moral consensus,
making money often seems like the
only thing to do. Indeed, the business
is cash and the books are sloppy.
In 2012, the American company,
Actavis, grossed $5.9 billion in prots
from its exclusive rights to
manufacture and distribute
oxycodone. This is nearly three times
the revenue of Afghanistans entire
government. The success of such pill
mills is largely a result of Americas
fragmented and inecient legal
system that dates back two centuries
ago when states or provinces
mistrusted one another and a central
government. The national
government controls use of many
dangerous drugs, spending billions in
a war sieged to cut o the import of
drugs like heroin and cocaine.
Things are dierent with prescribed
drugs though. Those fall under the
aegis of the Food and Drug
Administration, but once a drug wins
FDA approval a doctor can prescribe it
pretty much at his or her own
discretion. Regulation of pain
management doctors is scarce. Even
now, a doctor can be a pain
management specialist by simply
paying $500, passing a criminal
background check, and lling out a
short application. In some states,
dispensing opiate derived drugs has
become a thriving industry.
The American nation, its doctors, and
the pharmaceutical industries have
created millions of drug dependent
victims who come streaming into
emergency rooms and morgues. The
latest gures available from the
National Institute on Drug Abuse
show that deaths from prescription
opioids outpace deaths from all illegal
drugs combined. In addition,
Americas Center for Disease Control
atly stated, Prescription drug abuse
is the fastest growing drug problem in
the United States. The increase in
unintentional drug overdose deaths in
recent years has been driven by a
class of prescription drugs called
opioid analgesics. - CDC Grand
Rounds: Prescription Drug Overdoses
a U.S. Epidemic.
In the past few years the DEA has
developed programs for spotting
inordinate drug prescriptions. This
has produced an impressive string of
arrests. In short, the federal
government was taking millions of
oxycodone doses out of the hands of
addicts. Soon, heroin became the
alternative. A report by the Mayo
Clinic conrmed emergency room
admission for heroin overdoses were
spiking between 2012 and 2014.
As pressure builds against
prescription pain killers, heroin use
increases. Between 2007 and 2012
world. The State Departments
International Narcotics Control
Strategy Report on Pakistan for 2014
was precise on its assessment:
Pakistan is the worlds
highest-volume transit corridor for
opiates and cannabis. Drug trackers
exploit the countrys porous borders
with Afghanistan and Iran, and the
UNODC estimates that 40 percent of
the worlds supply of heroin traverses
Pakistan en route to China, the Gulf
States, Africa, Europe and North
America, often transiting through
Pakistans seaports, airports, postal
routes and coastal areas.
In 2013 Pakistans law enforcement
agencies achieved signicant
narcotics seizures, though no major
drug trackers were ever arrested.
Budget limitations and ckle politics
will continue to hinder any
counter-narcotics eorts. In the
meantime, Pakistani law
enforcement agencies remain
preoccupied with more urgent
threats such as widespread political
violence and extremism.
So now, the worlds most prolic
opium producer sits next door to the
worlds most ecient drug transit
system. Neither Afghanistan nor
Pakistan is in a position to give the
US any aid with its rampant drug
problem. Indeed, both countries
could convincingly argue that the
United States caused the resurgence
of heroin by succumbing to its own
greed.
Sharing the same destiny they both
stand on opposite sides of the world.
The Southern Afghanistan farmer
walks through his poppy elds testing
the pods one by one to ensure his
livelihood; and the heroin addict is
left wondering whether or not this
dose will be the last. Each is equally
desperate for a change.
The addict and the farmer are both
caught at dierent ends of the same
lucrative and killer trap. They
simultaneously listen for the sounds
of impending danger overhead, and
they harken their ears for a song of
salvation. Instead, all they ever hear is
a prayer for the dead.
the number of heroin users in the
United States rose by nearly 300,000
according to the National Institute on
Drug Abuse. Todays heroin users are
no longer the urban, desperate, and
uneducated. Now, even suburban and
rural communities are reporting
signicant increase in heroin use.
Thanks to the new opportunities, India
has developed a thriving business
based on mail-order oxycodone and
oxycontin. The Indian company then
ships the drugs discretely by US Mail
or via some large private courier
company. This puts South Asia in the
cross hairs of American drug policy
even though Afghanistan has become
the worlds largest heroin producer.
Afghanistan is ghting to respond to
an escalating domestic opiate
addiction epidemic, where citizens
are familiar with drug money
laundering through shady nancial
networks.
In America the threats are more
muted. The United States Oce of
National Drug Control Policy
promised aid to Afghanistan for the
nding of alternate economic
sources. However, it closed the bill
with a cryptic promise: The United
States will continue to work with
and provide support to opium
poppy producing countries by
creating both incentives for opium
growers to participate in licit
livelihoods, while simultaneously
strengthening the disincentives to
participation in the narcotics industry
through increased interdiction and
other law enforcement and supply
reduction measures. The report did
not elaborate what those supply
reduction measures would be.
Not surprisingly, the United States
waged a war against marijuana over
the past few decades (in the United
States, almost all problems are solved
by a war of some kind). The country
patrolled its own ocean ports
incessantly. They dropped
plant-killing agents all over large
parts of Colombia and then arrested
or imprisoned foreign nationals who
had never even been there but who
allegedly conspired from their
home countries to break American
drug laws.
It is hard to nd anyone who ever died
from a marijuana overdose, but heroin
overdose crowds the countrys
hospitals. While studies show heroin
overdose admissions spiking, legal
medicinal use is not likely to be
something that the American
government will easily accept. In fact,
the United States Department of
International Narcotics Control
Strategy Report on Afghanistan for
2014 was rather dismissive on the
matter, stating: Illicit drug cultivation,
production, tracking, and
consumption ourish in Afghanistan,
particularly in parts of the south and
southwest where instability is high
and state institutions are weak or
non-existent. A symbiotic relationship
exists between the insurgency and
narcotics tracking in Afghanistan.
Trackers provide weapons, funding,
and other material support to the
insurgency in exchange for the
protection of drug trade routes, elds,
laboratories, and their organizations.
Some insurgent commanders engage
directly in drug tracking to nance
their operations. The narcotics trade
undermines government and rule of
law in all parts of the country where
poppy is cultivated and trackers
operate.
Afghanistan relies on assistance from
the international community in order
to implement its national
counter-narcotics strategies.
Meanwhile, America is just now
nishing up its twelve-year war in
Afghanistan. However, illicit drugs
production (particularly heroin),
ourishes there; and it would be no
dicult task for America to retrot
their new predator drones with
defoliant canisters or even Napalm.
The situation in Pakistan is equally
dismissive, but for a dierent reason:
Pakistan does not play a signicant
role in narcotics production. Instead,
it is like an expressway through which
drugs travel to other parts of the
Afghanistan and consider it
detrimental to their interests.
These states are also
apprehensive of a looming civil
war in Afghanistan that can only
be avoided by initiating the
dialogue process. Unfortunately,
no serious eorts have been
made to revive the stalled Doha
process that could have led to
intra-Afghan reconciliation
process. Such initiatives would
help to accommodate the
interests of stakeholders and would
create conducive environment for
successful political and security
transitions.
Regional states should also
develop consensus on
non-interference in internal aairs
of Afghanistan. These states can
help in capacity building in
Afghanistan while respecting the
sensitivities of others. Pakistan as
a neighboring state has been facing
the fallouts of Afghan conict since
three decades and the chaos and
instability in Afghanistan directly
aects the stability of Pakistan.
Post-election transitions, though a
challenging task, should lead to
durable peace and stability in
Afghanistan because a stable
Afghanistan is the key to regional
stability.
MAY 2014 12
www. economi cafai r s. com. pk
WORLD POLITICS
mid hopes and fears, Afghan
presidential elections were
held in the rst week of
April. The initial results
showed Dr. Abdullah, among the three
candidates, having a lead in the
elections. According to Election
Commissions announcement, Dr.
Abdullah Abdullah, former Foreign
Minister and Mr. Ashraf Ghani, a former
Finance Minister and a former World
Bank ocial are heading for a run-o
election. It is enunciated in Afghan
constitution that a candidate must
receive over 50 % of votes to win
elections otherwise run-o election
would be held.
Despite Talibans threats, urban
population enthusiastically
participated in the election process
with impressive voter turnout of
about 55-58 %. Presidential
election is just a step forward in the
process of political transition in
Afghanistan. Given the ethnic
polarization of Afghan society it
would be a hard task to go for
run-o elections as ethnic rivalries
may spur new wave of violence and
instability. Dr. Abdullah associated
with Tajik political party may not
get Pashtun votes in South and
Southeast and Mr. Ghani, a Pashtun,
may not get the support of other
ethnic groups thus creating a
legitimacy problem among other
ethnic groups.
The political transition in
Afghanistan was much awaited as it
precedes the security and
economic transitions that have to
take place during this year. The
most debated issue in Afghanistan
in the recent past has been the
Bilateral Security Agreement (BSA)
that is an important component of
security transition. BSA deals with
post-2014 presence of foreign
troops in Afghanistan and would be
a dening factor in characterizing
A
Challenging Transition
AFGHANISTANS
President Karzai didnt sign the BSA due to his own political interests
as he would no longer be a decisive factor in determining the future
security architecture of post-withdrawal Afghanistan. The next Presi-
dent has to face the challenges of economic and security transition
while confronting the challenges of political transition as well.
[ [
US-Afghan future relations.
The three prominent
Presidential candidates are
willing to sign the BSA between
United States and Afghanistan.
Signing of BSA had become a
contentious issue between
President Karzai and the United
States as both states had been
negotiating the terms of
agreement for more than a year.
President Karzai had serious
reservations about various
clauses of BSA regarding providing
legal immunity to US troops under
Afghan law and on the issue of
night raids on Afghan residential
areas that kept negotiations
stalled. Earlier, President Karzai
made the nal approval of the
agreement conditional to the
endorsement of Loya Jirga but later
on, despite Loya Jirgas
endorsement to sign the agreement
President Karzai refused to sign it
and delayed it until the new
President was sworn in.
President Karzai didnt sign the BSA
due to his own political interests as
he would no longer be a decisive
factor in determining the future
security architecture of
post-withdrawal Afghanistan. The
next President has to face the
challenges of economic and
security transition while
confronting the challenges of
political transition as well. It is the
process of political transition that
is the most challenging one and will
dene the contours of emerging
order in Afghanistan.
The coming President would also
face the challenge of engaging
Taliban in peace talks. Taliban
representatives rejected the
elections and they might reject the
legitimacy of the new President as
well. Earlier, Doha peace process
between United States and Taliban
suered a setback when talks on
the BSA were suspended by
President Karzai as a protest
against Doha process because
President Karzai wanted to be at
the center of any dialogue process
with Taliban. United States gave
priority to the signing of BSA over
peace talks with Taliban. BSA is
signicant for United States as it
will allow more than 10,000
support forces in Afghanistan. US
presence in Afghanistan is not only
important to back up the Afghan
army for coming years and to use
Afghan bases for counterterrorism
missions but emerging China and
resurging Russia also merits in its
strategic calculus.
The regional states are concerned
about long-term presence of
extra-regional forces in
housands of Afghani,
Pakistani, and Central
American farmers who are
now slicing open millions of
acres of poppy pods, harvesting raw
opium - the rst step in heroin
production in the developing world.
Since heroin is a farmers livelihood
and heroin is an addicts life, both are
caught in the middle of an American
drug policy that is at war with itself.
You see, American pharmacology
companies have created millions of
drug-dependent people by
prescribing them addictive painkillers
made with opiates derived from
Afghanistan and Pakistan. Meanwhile,
the addiction rehabilitation eorts in
America have been cut o or
drastically reduced to save the
countrys money. Now, the desperate
are turning to heroin for solace, as the
most powerful nation on earth is
beginning to look like it might bite the
hand that feeds it.
Americas drug policy spins on an axis
of opiates. For centuries mankind has
used heroin to treat pain, although it
currently has no lawful medical use in
the United States. In countries such as
the UK and the Netherlands, doctors
prescribe heroin to relieve the pain of
trauma, post-surgery discomfort, end
stage cancer, cesarean sections, and
even heart attacks. Some physicians
even prefer heroin over morphine
because it is more fat soluble and can
reach the target site quicker. In the
United States, however, its a dierent
story.
Around 2010, small pain
management clinics started popping
up in America. These makeshift clinics
oered no beds, exam tables,
medicines, or testing tools and were
little more than doctors sitting behind
tables selling prescriptions with a
minimum sta. The more money the
patient had, the more drugs they got.
In a country where capitalism is the
closest thing to a moral consensus,
making money often seems like the
only thing to do. Indeed, the business
is cash and the books are sloppy.
In 2012, the American company,
Actavis, grossed $5.9 billion in prots
from its exclusive rights to
manufacture and distribute
oxycodone. This is nearly three times
the revenue of Afghanistans entire
government. The success of such pill
mills is largely a result of Americas
fragmented and inecient legal
system that dates back two centuries
ago when states or provinces
mistrusted one another and a central
government. The national
government controls use of many
dangerous drugs, spending billions in
a war sieged to cut o the import of
drugs like heroin and cocaine.
Things are dierent with prescribed
drugs though. Those fall under the
aegis of the Food and Drug
Administration, but once a drug wins
FDA approval a doctor can prescribe it
pretty much at his or her own
discretion. Regulation of pain
management doctors is scarce. Even
now, a doctor can be a pain
management specialist by simply
paying $500, passing a criminal
background check, and lling out a
short application. In some states,
dispensing opiate derived drugs has
become a thriving industry.
The American nation, its doctors, and
the pharmaceutical industries have
created millions of drug dependent
victims who come streaming into
emergency rooms and morgues. The
latest gures available from the
National Institute on Drug Abuse
show that deaths from prescription
opioids outpace deaths from all illegal
drugs combined. In addition,
Americas Center for Disease Control
atly stated, Prescription drug abuse
is the fastest growing drug problem in
the United States. The increase in
unintentional drug overdose deaths in
recent years has been driven by a
class of prescription drugs called
opioid analgesics. - CDC Grand
Rounds: Prescription Drug Overdoses
a U.S. Epidemic.
In the past few years the DEA has
developed programs for spotting
inordinate drug prescriptions. This
has produced an impressive string of
arrests. In short, the federal
government was taking millions of
oxycodone doses out of the hands of
addicts. Soon, heroin became the
alternative. A report by the Mayo
Clinic conrmed emergency room
admission for heroin overdoses were
spiking between 2012 and 2014.
As pressure builds against
prescription pain killers, heroin use
increases. Between 2007 and 2012
world. The State Departments
International Narcotics Control
Strategy Report on Pakistan for 2014
was precise on its assessment:
Pakistan is the worlds
highest-volume transit corridor for
opiates and cannabis. Drug trackers
exploit the countrys porous borders
with Afghanistan and Iran, and the
UNODC estimates that 40 percent of
the worlds supply of heroin traverses
Pakistan en route to China, the Gulf
States, Africa, Europe and North
America, often transiting through
Pakistans seaports, airports, postal
routes and coastal areas.
In 2013 Pakistans law enforcement
agencies achieved signicant
narcotics seizures, though no major
drug trackers were ever arrested.
Budget limitations and ckle politics
will continue to hinder any
counter-narcotics eorts. In the
meantime, Pakistani law
enforcement agencies remain
preoccupied with more urgent
threats such as widespread political
violence and extremism.
So now, the worlds most prolic
opium producer sits next door to the
worlds most ecient drug transit
system. Neither Afghanistan nor
Pakistan is in a position to give the
US any aid with its rampant drug
problem. Indeed, both countries
could convincingly argue that the
United States caused the resurgence
of heroin by succumbing to its own
greed.
Sharing the same destiny they both
stand on opposite sides of the world.
The Southern Afghanistan farmer
walks through his poppy elds testing
the pods one by one to ensure his
livelihood; and the heroin addict is
left wondering whether or not this
dose will be the last. Each is equally
desperate for a change.
The addict and the farmer are both
caught at dierent ends of the same
lucrative and killer trap. They
simultaneously listen for the sounds
of impending danger overhead, and
they harken their ears for a song of
salvation. Instead, all they ever hear is
a prayer for the dead.
the number of heroin users in the
United States rose by nearly 300,000
according to the National Institute on
Drug Abuse. Todays heroin users are
no longer the urban, desperate, and
uneducated. Now, even suburban and
rural communities are reporting
signicant increase in heroin use.
Thanks to the new opportunities, India
has developed a thriving business
based on mail-order oxycodone and
oxycontin. The Indian company then
ships the drugs discretely by US Mail
or via some large private courier
company. This puts South Asia in the
cross hairs of American drug policy
even though Afghanistan has become
the worlds largest heroin producer.
Afghanistan is ghting to respond to
an escalating domestic opiate
addiction epidemic, where citizens
are familiar with drug money
laundering through shady nancial
networks.
In America the threats are more
muted. The United States Oce of
National Drug Control Policy
promised aid to Afghanistan for the
nding of alternate economic
sources. However, it closed the bill
with a cryptic promise: The United
States will continue to work with
and provide support to opium
poppy producing countries by
creating both incentives for opium
growers to participate in licit
livelihoods, while simultaneously
strengthening the disincentives to
participation in the narcotics industry
through increased interdiction and
other law enforcement and supply
reduction measures. The report did
not elaborate what those supply
reduction measures would be.
Not surprisingly, the United States
waged a war against marijuana over
the past few decades (in the United
States, almost all problems are solved
by a war of some kind). The country
patrolled its own ocean ports
incessantly. They dropped
plant-killing agents all over large
parts of Colombia and then arrested
or imprisoned foreign nationals who
had never even been there but who
allegedly conspired from their
home countries to break American
drug laws.
It is hard to nd anyone who ever died
from a marijuana overdose, but heroin
overdose crowds the countrys
hospitals. While studies show heroin
overdose admissions spiking, legal
medicinal use is not likely to be
something that the American
government will easily accept. In fact,
the United States Department of
International Narcotics Control
Strategy Report on Afghanistan for
2014 was rather dismissive on the
matter, stating: Illicit drug cultivation,
production, tracking, and
consumption ourish in Afghanistan,
particularly in parts of the south and
southwest where instability is high
and state institutions are weak or
non-existent. A symbiotic relationship
exists between the insurgency and
narcotics tracking in Afghanistan.
Trackers provide weapons, funding,
and other material support to the
insurgency in exchange for the
protection of drug trade routes, elds,
laboratories, and their organizations.
Some insurgent commanders engage
directly in drug tracking to nance
their operations. The narcotics trade
undermines government and rule of
law in all parts of the country where
poppy is cultivated and trackers
operate.
Afghanistan relies on assistance from
the international community in order
to implement its national
counter-narcotics strategies.
Meanwhile, America is just now
nishing up its twelve-year war in
Afghanistan. However, illicit drugs
production (particularly heroin),
ourishes there; and it would be no
dicult task for America to retrot
their new predator drones with
defoliant canisters or even Napalm.
The situation in Pakistan is equally
dismissive, but for a dierent reason:
Pakistan does not play a signicant
role in narcotics production. Instead,
it is like an expressway through which
drugs travel to other parts of the
Afghanistan and consider it
detrimental to their interests.
These states are also
apprehensive of a looming civil
war in Afghanistan that can only
be avoided by initiating the
dialogue process. Unfortunately,
no serious eorts have been
made to revive the stalled Doha
process that could have led to
intra-Afghan reconciliation
process. Such initiatives would
help to accommodate the
interests of stakeholders and would
create conducive environment for
successful political and security
transitions.
Regional states should also
develop consensus on
non-interference in internal aairs
of Afghanistan. These states can
help in capacity building in
Afghanistan while respecting the
sensitivities of others. Pakistan as
a neighboring state has been facing
the fallouts of Afghan conict since
three decades and the chaos and
instability in Afghanistan directly
aects the stability of Pakistan.
Post-election transitions, though a
challenging task, should lead to
durable peace and stability in
Afghanistan because a stable
Afghanistan is the key to regional
stability.
mid hopes and fears, Afghan
presidential elections were
held in the rst week of
April. The initial results
showed Dr. Abdullah, among the three
candidates, having a lead in the
elections. According to Election
Commissions announcement, Dr.
Abdullah Abdullah, former Foreign
Minister and Mr. Ashraf Ghani, a former
Finance Minister and a former World
Bank ocial are heading for a run-o
election. It is enunciated in Afghan
constitution that a candidate must
receive over 50 % of votes to win
elections otherwise run-o election
would be held.
Despite Talibans threats, urban
population enthusiastically
participated in the election process
with impressive voter turnout of
about 55-58 %. Presidential
election is just a step forward in the
process of political transition in
Afghanistan. Given the ethnic
polarization of Afghan society it
would be a hard task to go for
run-o elections as ethnic rivalries
may spur new wave of violence and
instability. Dr. Abdullah associated
with Tajik political party may not
get Pashtun votes in South and
Southeast and Mr. Ghani, a Pashtun,
may not get the support of other
ethnic groups thus creating a
legitimacy problem among other
ethnic groups.
The political transition in
Afghanistan was much awaited as it
precedes the security and
economic transitions that have to
take place during this year. The
most debated issue in Afghanistan
in the recent past has been the
Bilateral Security Agreement (BSA)
that is an important component of
security transition. BSA deals with
post-2014 presence of foreign
troops in Afghanistan and would be
a dening factor in characterizing
MAY 2014 13
www. economi cafai r s. com. pk
WORLD POLITICS
US-Afghan future relations.
The three prominent
Presidential candidates are
willing to sign the BSA between
United States and Afghanistan.
Signing of BSA had become a
contentious issue between
President Karzai and the United
States as both states had been
negotiating the terms of
agreement for more than a year.
President Karzai had serious
reservations about various
clauses of BSA regarding providing
legal immunity to US troops under
Afghan law and on the issue of
night raids on Afghan residential
areas that kept negotiations
stalled. Earlier, President Karzai
made the nal approval of the
agreement conditional to the
endorsement of Loya Jirga but later
on, despite Loya Jirgas
endorsement to sign the agreement
President Karzai refused to sign it
and delayed it until the new
President was sworn in.
President Karzai didnt sign the BSA
due to his own political interests as
he would no longer be a decisive
factor in determining the future
security architecture of
post-withdrawal Afghanistan. The
next President has to face the
challenges of economic and
security transition while
confronting the challenges of
political transition as well. It is the
process of political transition that
is the most challenging one and will
dene the contours of emerging
order in Afghanistan.
The coming President would also
face the challenge of engaging
Taliban in peace talks. Taliban
representatives rejected the
elections and they might reject the
legitimacy of the new President as
well. Earlier, Doha peace process
between United States and Taliban
suered a setback when talks on
the BSA were suspended by
President Karzai as a protest
against Doha process because
President Karzai wanted to be at
the center of any dialogue process
with Taliban. United States gave
priority to the signing of BSA over
peace talks with Taliban. BSA is
signicant for United States as it
will allow more than 10,000
support forces in Afghanistan. US
presence in Afghanistan is not only
important to back up the Afghan
army for coming years and to use
Afghan bases for counterterrorism
missions but emerging China and
resurging Russia also merits in its
strategic calculus.
The regional states are concerned
about long-term presence of
extra-regional forces in
Despite Talibans
threats, urban
population
enthusiastically
participated in the
election process with an
impressive voter turnout
of about 55-58 %.
Large number of woman casting votes
in the Afghan Presidential Elections 2014
SAMAN ZULFQAR
The writer is a researcher at the
Islamabad Policy Research Institute
housands of Afghani,
Pakistani, and Central
American farmers who are
now slicing open millions of
acres of poppy pods, harvesting raw
opium - the rst step in heroin
production in the developing world.
Since heroin is a farmers livelihood
and heroin is an addicts life, both are
caught in the middle of an American
drug policy that is at war with itself.
You see, American pharmacology
companies have created millions of
drug-dependent people by
prescribing them addictive painkillers
made with opiates derived from
Afghanistan and Pakistan. Meanwhile,
the addiction rehabilitation eorts in
America have been cut o or
drastically reduced to save the
countrys money. Now, the desperate
are turning to heroin for solace, as the
most powerful nation on earth is
beginning to look like it might bite the
hand that feeds it.
Americas drug policy spins on an axis
of opiates. For centuries mankind has
used heroin to treat pain, although it
currently has no lawful medical use in
the United States. In countries such as
the UK and the Netherlands, doctors
prescribe heroin to relieve the pain of
trauma, post-surgery discomfort, end
stage cancer, cesarean sections, and
even heart attacks. Some physicians
even prefer heroin over morphine
because it is more fat soluble and can
reach the target site quicker. In the
United States, however, its a dierent
story.
Around 2010, small pain
management clinics started popping
up in America. These makeshift clinics
oered no beds, exam tables,
medicines, or testing tools and were
little more than doctors sitting behind
tables selling prescriptions with a
minimum sta. The more money the
patient had, the more drugs they got.
In a country where capitalism is the
closest thing to a moral consensus,
making money often seems like the
only thing to do. Indeed, the business
is cash and the books are sloppy.
In 2012, the American company,
Actavis, grossed $5.9 billion in prots
from its exclusive rights to
manufacture and distribute
oxycodone. This is nearly three times
the revenue of Afghanistans entire
government. The success of such pill
mills is largely a result of Americas
fragmented and inecient legal
system that dates back two centuries
ago when states or provinces
mistrusted one another and a central
government. The national
government controls use of many
dangerous drugs, spending billions in
a war sieged to cut o the import of
drugs like heroin and cocaine.
Things are dierent with prescribed
drugs though. Those fall under the
aegis of the Food and Drug
Administration, but once a drug wins
FDA approval a doctor can prescribe it
pretty much at his or her own
discretion. Regulation of pain
management doctors is scarce. Even
now, a doctor can be a pain
management specialist by simply
paying $500, passing a criminal
background check, and lling out a
short application. In some states,
dispensing opiate derived drugs has
become a thriving industry.
The American nation, its doctors, and
the pharmaceutical industries have
created millions of drug dependent
victims who come streaming into
emergency rooms and morgues. The
latest gures available from the
National Institute on Drug Abuse
show that deaths from prescription
opioids outpace deaths from all illegal
drugs combined. In addition,
Americas Center for Disease Control
atly stated, Prescription drug abuse
is the fastest growing drug problem in
the United States. The increase in
unintentional drug overdose deaths in
recent years has been driven by a
class of prescription drugs called
opioid analgesics. - CDC Grand
Rounds: Prescription Drug Overdoses
a U.S. Epidemic.
In the past few years the DEA has
developed programs for spotting
inordinate drug prescriptions. This
has produced an impressive string of
arrests. In short, the federal
government was taking millions of
oxycodone doses out of the hands of
addicts. Soon, heroin became the
alternative. A report by the Mayo
Clinic conrmed emergency room
admission for heroin overdoses were
spiking between 2012 and 2014.
As pressure builds against
prescription pain killers, heroin use
increases. Between 2007 and 2012
world. The State Departments
International Narcotics Control
Strategy Report on Pakistan for 2014
was precise on its assessment:
Pakistan is the worlds
highest-volume transit corridor for
opiates and cannabis. Drug trackers
exploit the countrys porous borders
with Afghanistan and Iran, and the
UNODC estimates that 40 percent of
the worlds supply of heroin traverses
Pakistan en route to China, the Gulf
States, Africa, Europe and North
America, often transiting through
Pakistans seaports, airports, postal
routes and coastal areas.
In 2013 Pakistans law enforcement
agencies achieved signicant
narcotics seizures, though no major
drug trackers were ever arrested.
Budget limitations and ckle politics
will continue to hinder any
counter-narcotics eorts. In the
meantime, Pakistani law
enforcement agencies remain
preoccupied with more urgent
threats such as widespread political
violence and extremism.
So now, the worlds most prolic
opium producer sits next door to the
worlds most ecient drug transit
system. Neither Afghanistan nor
Pakistan is in a position to give the
US any aid with its rampant drug
problem. Indeed, both countries
could convincingly argue that the
United States caused the resurgence
of heroin by succumbing to its own
greed.
Sharing the same destiny they both
stand on opposite sides of the world.
The Southern Afghanistan farmer
walks through his poppy elds testing
the pods one by one to ensure his
livelihood; and the heroin addict is
left wondering whether or not this
dose will be the last. Each is equally
desperate for a change.
The addict and the farmer are both
caught at dierent ends of the same
lucrative and killer trap. They
simultaneously listen for the sounds
of impending danger overhead, and
they harken their ears for a song of
salvation. Instead, all they ever hear is
a prayer for the dead.
the number of heroin users in the
United States rose by nearly 300,000
according to the National Institute on
Drug Abuse. Todays heroin users are
no longer the urban, desperate, and
uneducated. Now, even suburban and
rural communities are reporting
signicant increase in heroin use.
Thanks to the new opportunities, India
has developed a thriving business
based on mail-order oxycodone and
oxycontin. The Indian company then
ships the drugs discretely by US Mail
or via some large private courier
company. This puts South Asia in the
cross hairs of American drug policy
even though Afghanistan has become
the worlds largest heroin producer.
Afghanistan is ghting to respond to
an escalating domestic opiate
addiction epidemic, where citizens
are familiar with drug money
laundering through shady nancial
networks.
In America the threats are more
muted. The United States Oce of
National Drug Control Policy
promised aid to Afghanistan for the
nding of alternate economic
sources. However, it closed the bill
with a cryptic promise: The United
States will continue to work with
and provide support to opium
poppy producing countries by
creating both incentives for opium
growers to participate in licit
livelihoods, while simultaneously
strengthening the disincentives to
participation in the narcotics industry
through increased interdiction and
other law enforcement and supply
reduction measures. The report did
not elaborate what those supply
reduction measures would be.
Not surprisingly, the United States
waged a war against marijuana over
the past few decades (in the United
States, almost all problems are solved
by a war of some kind). The country
patrolled its own ocean ports
incessantly. They dropped
plant-killing agents all over large
parts of Colombia and then arrested
or imprisoned foreign nationals who
had never even been there but who
allegedly conspired from their
home countries to break American
drug laws.
It is hard to nd anyone who ever died
from a marijuana overdose, but heroin
overdose crowds the countrys
hospitals. While studies show heroin
overdose admissions spiking, legal
medicinal use is not likely to be
something that the American
government will easily accept. In fact,
the United States Department of
International Narcotics Control
Strategy Report on Afghanistan for
2014 was rather dismissive on the
matter, stating: Illicit drug cultivation,
production, tracking, and
consumption ourish in Afghanistan,
particularly in parts of the south and
southwest where instability is high
and state institutions are weak or
non-existent. A symbiotic relationship
exists between the insurgency and
narcotics tracking in Afghanistan.
Trackers provide weapons, funding,
and other material support to the
insurgency in exchange for the
protection of drug trade routes, elds,
laboratories, and their organizations.
Some insurgent commanders engage
directly in drug tracking to nance
their operations. The narcotics trade
undermines government and rule of
law in all parts of the country where
poppy is cultivated and trackers
operate.
Afghanistan relies on assistance from
the international community in order
to implement its national
counter-narcotics strategies.
Meanwhile, America is just now
nishing up its twelve-year war in
Afghanistan. However, illicit drugs
production (particularly heroin),
ourishes there; and it would be no
dicult task for America to retrot
their new predator drones with
defoliant canisters or even Napalm.
The situation in Pakistan is equally
dismissive, but for a dierent reason:
Pakistan does not play a signicant
role in narcotics production. Instead,
it is like an expressway through which
drugs travel to other parts of the
housands of Afghani,
Pakistani, and Central
American farmers who are
now slicing open millions of
acres of poppy pods, harvesting raw
opium - the rst step in heroin
production in the developing world.
Since heroin is a farmers livelihood
and heroin is an addicts life, both are
caught in the middle of an American
drug policy that is at war with itself.
You see, American pharmacology
companies have created millions of
drug-dependent people by
prescribing them addictive painkillers
made with opiates derived from
Afghanistan and Pakistan. Meanwhile,
the addiction rehabilitation eorts in
America have been cut o or
drastically reduced to save the
countrys money. Now, the desperate
are turning to heroin for solace, as the
most powerful nation on earth is
beginning to look like it might bite the
hand that feeds it.
Americas drug policy spins on an axis
of opiates. For centuries mankind has
used heroin to treat pain, although it
currently has no lawful medical use in
the United States. In countries such as
the UK and the Netherlands, doctors
prescribe heroin to relieve the pain of
trauma, post-surgery discomfort, end
stage cancer, cesarean sections, and
even heart attacks. Some physicians
even prefer heroin over morphine
because it is more fat soluble and can
reach the target site quicker. In the
United States, however, its a dierent
story.
Around 2010, small pain
management clinics started popping
up in America. These makeshift clinics
oered no beds, exam tables,
medicines, or testing tools and were
little more than doctors sitting behind
tables selling prescriptions with a
minimum sta. The more money the
patient had, the more drugs they got.
In a country where capitalism is the
closest thing to a moral consensus,
making money often seems like the
only thing to do. Indeed, the business
is cash and the books are sloppy.
In 2012, the American company,
Actavis, grossed $5.9 billion in prots
from its exclusive rights to
manufacture and distribute
oxycodone. This is nearly three times
the revenue of Afghanistans entire
government. The success of such pill
mills is largely a result of Americas
fragmented and inecient legal
system that dates back two centuries
ago when states or provinces
mistrusted one another and a central
government. The national
government controls use of many
dangerous drugs, spending billions in
a war sieged to cut o the import of
drugs like heroin and cocaine.
Things are dierent with prescribed
drugs though. Those fall under the
aegis of the Food and Drug
Administration, but once a drug wins
FDA approval a doctor can prescribe it
pretty much at his or her own
discretion. Regulation of pain
management doctors is scarce. Even
now, a doctor can be a pain
management specialist by simply
paying $500, passing a criminal
background check, and lling out a
short application. In some states,
dispensing opiate derived drugs has
become a thriving industry.
The American nation, its doctors, and
the pharmaceutical industries have
created millions of drug dependent
victims who come streaming into
emergency rooms and morgues. The
latest gures available from the
National Institute on Drug Abuse
show that deaths from prescription
opioids outpace deaths from all illegal
drugs combined. In addition,
Americas Center for Disease Control
atly stated, Prescription drug abuse
is the fastest growing drug problem in
the United States. The increase in
unintentional drug overdose deaths in
recent years has been driven by a
class of prescription drugs called
opioid analgesics. - CDC Grand
Rounds: Prescription Drug Overdoses
a U.S. Epidemic.
In the past few years the DEA has
developed programs for spotting
inordinate drug prescriptions. This
has produced an impressive string of
arrests. In short, the federal
government was taking millions of
oxycodone doses out of the hands of
addicts. Soon, heroin became the
alternative. A report by the Mayo
Clinic conrmed emergency room
admission for heroin overdoses were
spiking between 2012 and 2014.
As pressure builds against
prescription pain killers, heroin use
increases. Between 2007 and 2012
MAY 2014 14
www. economi cafai r s. com. pk
DRUGS
T
Western Blunders Reviving Evil
A Prayer For The Dead
world. The State Departments
International Narcotics Control
Strategy Report on Pakistan for 2014
was precise on its assessment:
Pakistan is the worlds
highest-volume transit corridor for
opiates and cannabis. Drug trackers
exploit the countrys porous borders
with Afghanistan and Iran, and the
UNODC estimates that 40 percent of
the worlds supply of heroin traverses
Pakistan en route to China, the Gulf
States, Africa, Europe and North
America, often transiting through
Pakistans seaports, airports, postal
routes and coastal areas.
In 2013 Pakistans law enforcement
agencies achieved signicant
narcotics seizures, though no major
drug trackers were ever arrested.
Budget limitations and ckle politics
will continue to hinder any
counter-narcotics eorts. In the
meantime, Pakistani law
enforcement agencies remain
preoccupied with more urgent
threats such as widespread political
violence and extremism.
So now, the worlds most prolic
opium producer sits next door to the
worlds most ecient drug transit
system. Neither Afghanistan nor
Pakistan is in a position to give the
US any aid with its rampant drug
problem. Indeed, both countries
could convincingly argue that the
United States caused the resurgence
of heroin by succumbing to its own
greed.
Sharing the same destiny they both
stand on opposite sides of the world.
The Southern Afghanistan farmer
walks through his poppy elds testing
the pods one by one to ensure his
livelihood; and the heroin addict is
left wondering whether or not this
dose will be the last. Each is equally
desperate for a change.
The addict and the farmer are both
caught at dierent ends of the same
lucrative and killer trap. They
simultaneously listen for the sounds
of impending danger overhead, and
they harken their ears for a song of
salvation. Instead, all they ever hear is
a prayer for the dead.
the number of heroin users in the
United States rose by nearly 300,000
according to the National Institute on
Drug Abuse. Todays heroin users are
no longer the urban, desperate, and
uneducated. Now, even suburban and
rural communities are reporting
signicant increase in heroin use.
Thanks to the new opportunities, India
has developed a thriving business
based on mail-order oxycodone and
oxycontin. The Indian company then
ships the drugs discretely by US Mail
or via some large private courier
company. This puts South Asia in the
cross hairs of American drug policy
even though Afghanistan has become
the worlds largest heroin producer.
Afghanistan is ghting to respond to
an escalating domestic opiate
addiction epidemic, where citizens
are familiar with drug money
laundering through shady nancial
networks.
In America the threats are more
muted. The United States Oce of
National Drug Control Policy
promised aid to Afghanistan for the
nding of alternate economic
sources. However, it closed the bill
with a cryptic promise: The United
States will continue to work with
and provide support to opium
poppy producing countries by
creating both incentives for opium
growers to participate in licit
livelihoods, while simultaneously
strengthening the disincentives to
participation in the narcotics industry
through increased interdiction and
other law enforcement and supply
reduction measures. The report did
not elaborate what those supply
reduction measures would be.
Not surprisingly, the United States
waged a war against marijuana over
the past few decades (in the United
States, almost all problems are solved
by a war of some kind). The country
patrolled its own ocean ports
incessantly. They dropped
plant-killing agents all over large
parts of Colombia and then arrested
or imprisoned foreign nationals who
had never even been there but who
allegedly conspired from their
home countries to break American
drug laws.
It is hard to nd anyone who ever died
from a marijuana overdose, but heroin
overdose crowds the countrys
hospitals. While studies show heroin
overdose admissions spiking, legal
medicinal use is not likely to be
something that the American
government will easily accept. In fact,
the United States Department of
International Narcotics Control
Strategy Report on Afghanistan for
2014 was rather dismissive on the
matter, stating: Illicit drug cultivation,
production, tracking, and
consumption ourish in Afghanistan,
particularly in parts of the south and
southwest where instability is high
and state institutions are weak or
non-existent. A symbiotic relationship
exists between the insurgency and
narcotics tracking in Afghanistan.
Trackers provide weapons, funding,
and other material support to the
insurgency in exchange for the
protection of drug trade routes, elds,
laboratories, and their organizations.
Some insurgent commanders engage
directly in drug tracking to nance
their operations. The narcotics trade
undermines government and rule of
law in all parts of the country where
poppy is cultivated and trackers
operate.
Afghanistan relies on assistance from
the international community in order
to implement its national
counter-narcotics strategies.
Meanwhile, America is just now
nishing up its twelve-year war in
Afghanistan. However, illicit drugs
production (particularly heroin),
ourishes there; and it would be no
dicult task for America to retrot
their new predator drones with
defoliant canisters or even Napalm.
The situation in Pakistan is equally
dismissive, but for a dierent reason:
Pakistan does not play a signicant
role in narcotics production. Instead,
it is like an expressway through which
drugs travel to other parts of the
housands of Afghani,
Pakistani, and Central
American farmers who are
now slicing open millions of
acres of poppy pods, harvesting raw
opium - the rst step in heroin
production in the developing world.
Since heroin is a farmers livelihood
and heroin is an addicts life, both are
caught in the middle of an American
drug policy that is at war with itself.
You see, American pharmacology
companies have created millions of
drug-dependent people by
prescribing them addictive painkillers
made with opiates derived from
Afghanistan and Pakistan. Meanwhile,
the addiction rehabilitation eorts in
America have been cut o or
drastically reduced to save the
countrys money. Now, the desperate
are turning to heroin for solace, as the
most powerful nation on earth is
beginning to look like it might bite the
hand that feeds it.
Americas drug policy spins on an axis
of opiates. For centuries mankind has
used heroin to treat pain, although it
currently has no lawful medical use in
the United States. In countries such as
the UK and the Netherlands, doctors
prescribe heroin to relieve the pain of
trauma, post-surgery discomfort, end
stage cancer, cesarean sections, and
even heart attacks. Some physicians
even prefer heroin over morphine
because it is more fat soluble and can
reach the target site quicker. In the
United States, however, its a dierent
story.
Around 2010, small pain
management clinics started popping
up in America. These makeshift clinics
oered no beds, exam tables,
medicines, or testing tools and were
little more than doctors sitting behind
tables selling prescriptions with a
minimum sta. The more money the
patient had, the more drugs they got.
In a country where capitalism is the
closest thing to a moral consensus,
making money often seems like the
only thing to do. Indeed, the business
is cash and the books are sloppy.
In 2012, the American company,
Actavis, grossed $5.9 billion in prots
from its exclusive rights to
manufacture and distribute
oxycodone. This is nearly three times
the revenue of Afghanistans entire
government. The success of such pill
mills is largely a result of Americas
fragmented and inecient legal
system that dates back two centuries
ago when states or provinces
mistrusted one another and a central
government. The national
government controls use of many
dangerous drugs, spending billions in
a war sieged to cut o the import of
drugs like heroin and cocaine.
Things are dierent with prescribed
drugs though. Those fall under the
aegis of the Food and Drug
Administration, but once a drug wins
FDA approval a doctor can prescribe it
pretty much at his or her own
discretion. Regulation of pain
management doctors is scarce. Even
now, a doctor can be a pain
management specialist by simply
paying $500, passing a criminal
background check, and lling out a
short application. In some states,
dispensing opiate derived drugs has
become a thriving industry.
The American nation, its doctors, and
the pharmaceutical industries have
created millions of drug dependent
victims who come streaming into
emergency rooms and morgues. The
latest gures available from the
National Institute on Drug Abuse
show that deaths from prescription
opioids outpace deaths from all illegal
drugs combined. In addition,
Americas Center for Disease Control
atly stated, Prescription drug abuse
is the fastest growing drug problem in
the United States. The increase in
unintentional drug overdose deaths in
recent years has been driven by a
class of prescription drugs called
opioid analgesics. - CDC Grand
Rounds: Prescription Drug Overdoses
a U.S. Epidemic.
In the past few years the DEA has
developed programs for spotting
inordinate drug prescriptions. This
has produced an impressive string of
arrests. In short, the federal
government was taking millions of
oxycodone doses out of the hands of
addicts. Soon, heroin became the
alternative. A report by the Mayo
Clinic conrmed emergency room
admission for heroin overdoses were
spiking between 2012 and 2014.
As pressure builds against
prescription pain killers, heroin use
increases. Between 2007 and 2012
world. The State Departments
International Narcotics Control
Strategy Report on Pakistan for 2014
was precise on its assessment:
Pakistan is the worlds
highest-volume transit corridor for
opiates and cannabis. Drug trackers
exploit the countrys porous borders
with Afghanistan and Iran, and the
UNODC estimates that 40 percent of
the worlds supply of heroin traverses
Pakistan en route to China, the Gulf
States, Africa, Europe and North
America, often transiting through
Pakistans seaports, airports, postal
routes and coastal areas.
In 2013 Pakistans law enforcement
agencies achieved signicant
narcotics seizures, though no major
drug trackers were ever arrested.
Budget limitations and ckle politics
will continue to hinder any
counter-narcotics eorts. In the
meantime, Pakistani law
enforcement agencies remain
preoccupied with more urgent
threats such as widespread political
violence and extremism.
So now, the worlds most prolic
opium producer sits next door to the
worlds most ecient drug transit
system. Neither Afghanistan nor
Pakistan is in a position to give the
US any aid with its rampant drug
problem. Indeed, both countries
could convincingly argue that the
United States caused the resurgence
of heroin by succumbing to its own
greed.
Sharing the same destiny they both
stand on opposite sides of the world.
The Southern Afghanistan farmer
walks through his poppy elds testing
the pods one by one to ensure his
livelihood; and the heroin addict is
left wondering whether or not this
dose will be the last. Each is equally
desperate for a change.
The addict and the farmer are both
caught at dierent ends of the same
lucrative and killer trap. They
simultaneously listen for the sounds
of impending danger overhead, and
they harken their ears for a song of
salvation. Instead, all they ever hear is
a prayer for the dead.
MAY 2014 15
www. economi cafai r s. com. pk
DRUGS
the number of heroin users in the
United States rose by nearly 300,000
according to the National Institute on
Drug Abuse. Todays heroin users are
no longer the urban, desperate, and
uneducated. Now, even suburban and
rural communities are reporting
signicant increase in heroin use.
Thanks to the new opportunities, India
has developed a thriving business
based on mail-order oxycodone and
oxycontin. The Indian company then
ships the drugs discretely by US Mail
or via some large private courier
company. This puts South Asia in the
cross hairs of American drug policy
even though Afghanistan has become
the worlds largest heroin producer.
Afghanistan is ghting to respond to
an escalating domestic opiate
addiction epidemic, where citizens
are familiar with drug money
laundering through shady nancial
networks.
In America the threats are more
muted. The United States Oce of
National Drug Control Policy
promised aid to Afghanistan for the
nding of alternate economic
sources. However, it closed the bill
with a cryptic promise: The United
States will continue to work with
and provide support to opium
poppy producing countries by
creating both incentives for opium
growers to participate in licit
livelihoods, while simultaneously
strengthening the disincentives to
participation in the narcotics industry
through increased interdiction and
other law enforcement and supply
reduction measures. The report did
not elaborate what those supply
reduction measures would be.
Not surprisingly, the United States
waged a war against marijuana over
the past few decades (in the United
States, almost all problems are solved
by a war of some kind). The country
patrolled its own ocean ports
incessantly. They dropped
plant-killing agents all over large
parts of Colombia and then arrested
or imprisoned foreign nationals who
had never even been there but who
allegedly conspired from their
home countries to break American
drug laws.
It is hard to nd anyone who ever died
from a marijuana overdose, but heroin
overdose crowds the countrys
hospitals. While studies show heroin
overdose admissions spiking, legal
medicinal use is not likely to be
something that the American
government will easily accept. In fact,
the United States Department of
International Narcotics Control
Strategy Report on Afghanistan for
2014 was rather dismissive on the
matter, stating: Illicit drug cultivation,
production, tracking, and
consumption ourish in Afghanistan,
particularly in parts of the south and
southwest where instability is high
and state institutions are weak or
non-existent. A symbiotic relationship
exists between the insurgency and
narcotics tracking in Afghanistan.
Trackers provide weapons, funding,
and other material support to the
insurgency in exchange for the
protection of drug trade routes, elds,
laboratories, and their organizations.
Some insurgent commanders engage
directly in drug tracking to nance
their operations. The narcotics trade
undermines government and rule of
law in all parts of the country where
poppy is cultivated and trackers
operate.
Afghanistan relies on assistance from
the international community in order
to implement its national
counter-narcotics strategies.
Meanwhile, America is just now
nishing up its twelve-year war in
Afghanistan. However, illicit drugs
production (particularly heroin),
ourishes there; and it would be no
dicult task for America to retrot
their new predator drones with
defoliant canisters or even Napalm.
The situation in Pakistan is equally
dismissive, but for a dierent reason:
Pakistan does not play a signicant
role in narcotics production. Instead,
it is like an expressway through which
drugs travel to other parts of the
In a country where
capitalism is the closest
thing to a moral
consensus, making
money often seems like
the only thing to do.
Indeed, the business is
cash and the books are
sloppy.
KIREN LAKHANI
The author is a recent business
graduate, a social media enthusiast
and a freelance writer. She can
be reached at kiren82@gmail.com
housands of Afghani,
Pakistani, and Central
American farmers who are
now slicing open millions of
acres of poppy pods, harvesting raw
opium - the rst step in heroin
production in the developing world.
Since heroin is a farmers livelihood
and heroin is an addicts life, both are
caught in the middle of an American
drug policy that is at war with itself.
You see, American pharmacology
companies have created millions of
drug-dependent people by
prescribing them addictive painkillers
made with opiates derived from
Afghanistan and Pakistan. Meanwhile,
the addiction rehabilitation eorts in
America have been cut o or
drastically reduced to save the
countrys money. Now, the desperate
are turning to heroin for solace, as the
most powerful nation on earth is
beginning to look like it might bite the
hand that feeds it.
Americas drug policy spins on an axis
of opiates. For centuries mankind has
used heroin to treat pain, although it
currently has no lawful medical use in
the United States. In countries such as
the UK and the Netherlands, doctors
prescribe heroin to relieve the pain of
trauma, post-surgery discomfort, end
stage cancer, cesarean sections, and
even heart attacks. Some physicians
even prefer heroin over morphine
because it is more fat soluble and can
reach the target site quicker. In the
United States, however, its a dierent
story.
Around 2010, small pain
management clinics started popping
up in America. These makeshift clinics
oered no beds, exam tables,
medicines, or testing tools and were
little more than doctors sitting behind
tables selling prescriptions with a
minimum sta. The more money the
patient had, the more drugs they got.
In a country where capitalism is the
closest thing to a moral consensus,
making money often seems like the
only thing to do. Indeed, the business
is cash and the books are sloppy.
In 2012, the American company,
Actavis, grossed $5.9 billion in prots
from its exclusive rights to
manufacture and distribute
oxycodone. This is nearly three times
the revenue of Afghanistans entire
government. The success of such pill
mills is largely a result of Americas
fragmented and inecient legal
system that dates back two centuries
ago when states or provinces
mistrusted one another and a central
government. The national
government controls use of many
dangerous drugs, spending billions in
a war sieged to cut o the import of
drugs like heroin and cocaine.
Things are dierent with prescribed
drugs though. Those fall under the
aegis of the Food and Drug
Administration, but once a drug wins
FDA approval a doctor can prescribe it
pretty much at his or her own
discretion. Regulation of pain
management doctors is scarce. Even
now, a doctor can be a pain
management specialist by simply
paying $500, passing a criminal
background check, and lling out a
short application. In some states,
dispensing opiate derived drugs has
become a thriving industry.
The American nation, its doctors, and
the pharmaceutical industries have
created millions of drug dependent
victims who come streaming into
emergency rooms and morgues. The
latest gures available from the
National Institute on Drug Abuse
show that deaths from prescription
opioids outpace deaths from all illegal
drugs combined. In addition,
Americas Center for Disease Control
atly stated, Prescription drug abuse
is the fastest growing drug problem in
the United States. The increase in
unintentional drug overdose deaths in
recent years has been driven by a
class of prescription drugs called
opioid analgesics. - CDC Grand
Rounds: Prescription Drug Overdoses
a U.S. Epidemic.
In the past few years the DEA has
developed programs for spotting
inordinate drug prescriptions. This
has produced an impressive string of
arrests. In short, the federal
government was taking millions of
oxycodone doses out of the hands of
addicts. Soon, heroin became the
alternative. A report by the Mayo
Clinic conrmed emergency room
admission for heroin overdoses were
spiking between 2012 and 2014.
As pressure builds against
prescription pain killers, heroin use
increases. Between 2007 and 2012
world. The State Departments
International Narcotics Control
Strategy Report on Pakistan for 2014
was precise on its assessment:
Pakistan is the worlds
highest-volume transit corridor for
opiates and cannabis. Drug trackers
exploit the countrys porous borders
with Afghanistan and Iran, and the
UNODC estimates that 40 percent of
the worlds supply of heroin traverses
Pakistan en route to China, the Gulf
States, Africa, Europe and North
America, often transiting through
Pakistans seaports, airports, postal
routes and coastal areas.
In 2013 Pakistans law enforcement
agencies achieved signicant
narcotics seizures, though no major
drug trackers were ever arrested.
Budget limitations and ckle politics
will continue to hinder any
counter-narcotics eorts. In the
meantime, Pakistani law
enforcement agencies remain
preoccupied with more urgent
threats such as widespread political
violence and extremism.
So now, the worlds most prolic
opium producer sits next door to the
worlds most ecient drug transit
system. Neither Afghanistan nor
Pakistan is in a position to give the
US any aid with its rampant drug
problem. Indeed, both countries
could convincingly argue that the
United States caused the resurgence
of heroin by succumbing to its own
greed.
Sharing the same destiny they both
stand on opposite sides of the world.
The Southern Afghanistan farmer
walks through his poppy elds testing
the pods one by one to ensure his
livelihood; and the heroin addict is
left wondering whether or not this
dose will be the last. Each is equally
desperate for a change.
The addict and the farmer are both
caught at dierent ends of the same
lucrative and killer trap. They
simultaneously listen for the sounds
of impending danger overhead, and
they harken their ears for a song of
salvation. Instead, all they ever hear is
a prayer for the dead.
the number of heroin users in the
United States rose by nearly 300,000
according to the National Institute on
Drug Abuse. Todays heroin users are
no longer the urban, desperate, and
uneducated. Now, even suburban and
rural communities are reporting
signicant increase in heroin use.
Thanks to the new opportunities, India
has developed a thriving business
based on mail-order oxycodone and
oxycontin. The Indian company then
ships the drugs discretely by US Mail
or via some large private courier
company. This puts South Asia in the
cross hairs of American drug policy
even though Afghanistan has become
the worlds largest heroin producer.
Afghanistan is ghting to respond to
an escalating domestic opiate
addiction epidemic, where citizens
are familiar with drug money
laundering through shady nancial
networks.
In America the threats are more
muted. The United States Oce of
National Drug Control Policy
promised aid to Afghanistan for the
nding of alternate economic
sources. However, it closed the bill
with a cryptic promise: The United
States will continue to work with
and provide support to opium
poppy producing countries by
creating both incentives for opium
growers to participate in licit
livelihoods, while simultaneously
strengthening the disincentives to
participation in the narcotics industry
through increased interdiction and
other law enforcement and supply
reduction measures. The report did
not elaborate what those supply
reduction measures would be.
Not surprisingly, the United States
waged a war against marijuana over
the past few decades (in the United
States, almost all problems are solved
by a war of some kind). The country
patrolled its own ocean ports
incessantly. They dropped
plant-killing agents all over large
parts of Colombia and then arrested
or imprisoned foreign nationals who
had never even been there but who
allegedly conspired from their
home countries to break American
drug laws.
It is hard to nd anyone who ever died
from a marijuana overdose, but heroin
overdose crowds the countrys
hospitals. While studies show heroin
overdose admissions spiking, legal
medicinal use is not likely to be
something that the American
government will easily accept. In fact,
the United States Department of
International Narcotics Control
Strategy Report on Afghanistan for
2014 was rather dismissive on the
matter, stating: Illicit drug cultivation,
production, tracking, and
consumption ourish in Afghanistan,
particularly in parts of the south and
southwest where instability is high
and state institutions are weak or
non-existent. A symbiotic relationship
exists between the insurgency and
narcotics tracking in Afghanistan.
Trackers provide weapons, funding,
and other material support to the
insurgency in exchange for the
protection of drug trade routes, elds,
laboratories, and their organizations.
Some insurgent commanders engage
directly in drug tracking to nance
their operations. The narcotics trade
undermines government and rule of
law in all parts of the country where
poppy is cultivated and trackers
operate.
Afghanistan relies on assistance from
the international community in order
to implement its national
counter-narcotics strategies.
Meanwhile, America is just now
nishing up its twelve-year war in
Afghanistan. However, illicit drugs
production (particularly heroin),
ourishes there; and it would be no
dicult task for America to retrot
their new predator drones with
defoliant canisters or even Napalm.
The situation in Pakistan is equally
dismissive, but for a dierent reason:
Pakistan does not play a signicant
role in narcotics production. Instead,
it is like an expressway through which
drugs travel to other parts of the
The Epilogue
With strategic location, favorable
climatic characteristics and positive
demographics, Turkey has always
had a great potential to be one of the
leading economies of the world.
However, the in-ghting, poor
banking system, and the
incompetent administrative control
ceased Turkey to have a decent
economic system- let alone play to
its potential. The previous decade,
however, changed the dimensions.
The ecient, tightened control by
the government certainly cracked
the shatters. The freedom of
Central Bank has paved the way for
more circumspect strategies to take
place. What happens in future is still
a question to ponder upon. The
OECD (The Organisation for
Economic Co-operation and
Development) projects the economy
to grow over 5% annually till 2017.
Other independent associations
expect lesser optimistic scenario -
but a common perception suggests
an ultimate rise after a couple of
slowdown years. The elections could
hold the key. And then they say if the
condent and self-assured vow of
Erdoan about brining Turkey
amongst top 10 leading economies
is considered, one would be tempted
to believe that this small step back
might be an indication for the giant
leap ahead. Such is the Turkish
economic story.
MAY 2014 16
www. economi cafai r s. com. pk
ECONOMY
nation and unemployment
rocketing up, markets falling
apart, Lira coming tumbling
down - Turkish economy had
once been all in the shatters. 2001
happened to be the breaking point
for economy, erupting after the
delinquencies and criminal mistakes
which Turkish governments
devotedly performed since 1980.
Such were the crises.
Turkish economy in the
previous-most decade though, is
referred as a miracle, the
most-fascinating growth story by
the HSBC Global Asset ocial and
prominent Economists. This
relatively recent drive is much
related to the vow that calls to bring
Turkey in top 10 world economies-
by none other than the
controversial current premiere of
Turkey, Mr. Recep Erdoan. It is in
fact the current government set-up
which has its due credit to not only
pulling out of the sinking economy,
but sailing it right through to let it
be classied by its tripled GDP
gure since the mega crises,
booming investor condence and
the likes. On the European scene, it
had the fastest growth of 8.5% in
2011. On the world scene, it is being
regarded as the foremost emerging
market, and is chasing up with
China.
Very recently, stabilization on the
economic scene is facing a scare.
And again it is being dominated by
politics of the region. The corruption
accusation on the current
government leaves unpromising
impact on the macroeconomic
well-being of the country. This
recent turmoil, built by
anti-government, pro-secular
groups, arrived at its boiling point
with the arrests of two cabinet
ministers - over their purported role
in the illegal estate deals. Later on,
these and other 6 ministers were
sacked, further fueling up the
controversies. The other dimension
of the political trouble is the rivalry
between self-exiled religious
leader, Fetaullah Glen and Recep
Erdoan- the former also being ally
of the Prime Minister.
Pre-2001: What went wrong?
Turkeys lure to comprehensively
rely on the FDI or the short term
capital inows for the basic
economic growth made the
economics in Turkey very volatile
throughout the 80s and the 90s. This
lead to the rising rate of ination-
and it reached to the point when the
average gure for 92-2002 period
was 70.4%. The budget decit
nancing was taken to staggering
7% of the GDP in 1997 and since
most of it was chiey nanced by
the short-term cash ows - greater
harm was inicted by the ination.
Ultimately, the comment this is a
serious crises by Prime minister
Ecevit climaxed the entire
I
The goverment also had to impose certain controversial measures and
privatising the public industries is termed as the bravest of them. The
goverment was careful. It targeted only the loss-yieding companies.
[ [
proceedings. The fear of bankruptcy
further strengthened. The debt kept
mounting up and so did the interest
rates levied on them. The aftermath
encompassed panicking nancial
markets; unstable exhange and
interest rates. How else would it be
possibly gloomier?
And who could have rescued the
Turkish Economy after the
legendary Bubble Burst?
Over 11 billion loan by IMF and
other stabilization eorts prior to
2002 proved largely futile. The
2002 elections which led the Party
of Justice and Development (AKP) to
take the reins proved historically
critical. Fortunately for Turkey, AKP
not only began working on the
well-implemented ways to recover,
but also continued the good
measures initiated by former
nancial Minister Kemal Dervi. IMF
programs were made to prove more
appropriate by making adjustments
on the local scene. Their goal to
undo the inequality in income
distribution was pivotal- as only the
elite and foreigners were actively
soaking up all the wealth. Perhaps
the most critical of the steps by
Erdoan was the introduction of FDI.
As a consequence, investing was
made less intricate, which attracted
FDI back. This time attempts were
made to make a positive use of such
investment.
The goverment also had to impose
certain controversial measures and
privatising the public industries is
termed as the bravest of them. The
goverment was careful. It targetted
only the loss-yieding companies.
Switching to the oating exchange
rate was another mega-move, and so
was waving o limitations on the
Central Bank. This was then
extended to augment a series of
banking reforms. Finally a much
restricted scal policy helped
disinate the struggling economy; a
once-written-o economy was
gradually growing. And it did grow
large; large enough to be termed as
the 17th largest in world and sixth in
the entire Europe.
Future Prospects: Is it in safe hands
now?
After a decade of steady growth, it
is highly likely that the Turkish
economy will experience a
slowdown in 2014 and 2015, says
Atilla Koksal, the Chairman of
Turkish Capital Markets Association.
So is Turkey past its prime now? This
anticipated slowdown could well be
the result of political happenings
dominated by three elections in two
years. The results of rst elections,
where AKP secured distinctive
majority, however made the
uncertainty fade away to some
extent. The cold war between the
Glen movement and Erdoan, and
international medias disliking of
the latter doesnt help either.
Having said that, Atilla Koksal also
stressed that Turkey oers an
optimistic long-term investment
case. Additionally, one could easily
identify Turkish positive
demographics as a major future
potential. Half of its population is
less than 30 in age.
Post 2001 crisis revival of
TURKEY'S ECONOMY
housands of Afghani,
Pakistani, and Central
American farmers who are
now slicing open millions of
acres of poppy pods, harvesting raw
opium - the rst step in heroin
production in the developing world.
Since heroin is a farmers livelihood
and heroin is an addicts life, both are
caught in the middle of an American
drug policy that is at war with itself.
You see, American pharmacology
companies have created millions of
drug-dependent people by
prescribing them addictive painkillers
made with opiates derived from
Afghanistan and Pakistan. Meanwhile,
the addiction rehabilitation eorts in
America have been cut o or
drastically reduced to save the
countrys money. Now, the desperate
are turning to heroin for solace, as the
most powerful nation on earth is
beginning to look like it might bite the
hand that feeds it.
Americas drug policy spins on an axis
of opiates. For centuries mankind has
used heroin to treat pain, although it
currently has no lawful medical use in
the United States. In countries such as
the UK and the Netherlands, doctors
prescribe heroin to relieve the pain of
trauma, post-surgery discomfort, end
stage cancer, cesarean sections, and
even heart attacks. Some physicians
even prefer heroin over morphine
because it is more fat soluble and can
reach the target site quicker. In the
United States, however, its a dierent
story.
Around 2010, small pain
management clinics started popping
up in America. These makeshift clinics
oered no beds, exam tables,
medicines, or testing tools and were
little more than doctors sitting behind
tables selling prescriptions with a
minimum sta. The more money the
patient had, the more drugs they got.
In a country where capitalism is the
closest thing to a moral consensus,
making money often seems like the
only thing to do. Indeed, the business
is cash and the books are sloppy.
In 2012, the American company,
Actavis, grossed $5.9 billion in prots
from its exclusive rights to
manufacture and distribute
oxycodone. This is nearly three times
the revenue of Afghanistans entire
government. The success of such pill
mills is largely a result of Americas
fragmented and inecient legal
system that dates back two centuries
ago when states or provinces
mistrusted one another and a central
government. The national
government controls use of many
dangerous drugs, spending billions in
a war sieged to cut o the import of
drugs like heroin and cocaine.
Things are dierent with prescribed
drugs though. Those fall under the
aegis of the Food and Drug
Administration, but once a drug wins
FDA approval a doctor can prescribe it
pretty much at his or her own
discretion. Regulation of pain
management doctors is scarce. Even
now, a doctor can be a pain
management specialist by simply
paying $500, passing a criminal
background check, and lling out a
short application. In some states,
dispensing opiate derived drugs has
become a thriving industry.
The American nation, its doctors, and
the pharmaceutical industries have
created millions of drug dependent
victims who come streaming into
emergency rooms and morgues. The
latest gures available from the
National Institute on Drug Abuse
show that deaths from prescription
opioids outpace deaths from all illegal
drugs combined. In addition,
Americas Center for Disease Control
atly stated, Prescription drug abuse
is the fastest growing drug problem in
the United States. The increase in
unintentional drug overdose deaths in
recent years has been driven by a
class of prescription drugs called
opioid analgesics. - CDC Grand
Rounds: Prescription Drug Overdoses
a U.S. Epidemic.
In the past few years the DEA has
developed programs for spotting
inordinate drug prescriptions. This
has produced an impressive string of
arrests. In short, the federal
government was taking millions of
oxycodone doses out of the hands of
addicts. Soon, heroin became the
alternative. A report by the Mayo
Clinic conrmed emergency room
admission for heroin overdoses were
spiking between 2012 and 2014.
As pressure builds against
prescription pain killers, heroin use
increases. Between 2007 and 2012
world. The State Departments
International Narcotics Control
Strategy Report on Pakistan for 2014
was precise on its assessment:
Pakistan is the worlds
highest-volume transit corridor for
opiates and cannabis. Drug trackers
exploit the countrys porous borders
with Afghanistan and Iran, and the
UNODC estimates that 40 percent of
the worlds supply of heroin traverses
Pakistan en route to China, the Gulf
States, Africa, Europe and North
America, often transiting through
Pakistans seaports, airports, postal
routes and coastal areas.
In 2013 Pakistans law enforcement
agencies achieved signicant
narcotics seizures, though no major
drug trackers were ever arrested.
Budget limitations and ckle politics
will continue to hinder any
counter-narcotics eorts. In the
meantime, Pakistani law
enforcement agencies remain
preoccupied with more urgent
threats such as widespread political
violence and extremism.
So now, the worlds most prolic
opium producer sits next door to the
worlds most ecient drug transit
system. Neither Afghanistan nor
Pakistan is in a position to give the
US any aid with its rampant drug
problem. Indeed, both countries
could convincingly argue that the
United States caused the resurgence
of heroin by succumbing to its own
greed.
Sharing the same destiny they both
stand on opposite sides of the world.
The Southern Afghanistan farmer
walks through his poppy elds testing
the pods one by one to ensure his
livelihood; and the heroin addict is
left wondering whether or not this
dose will be the last. Each is equally
desperate for a change.
The addict and the farmer are both
caught at dierent ends of the same
lucrative and killer trap. They
simultaneously listen for the sounds
of impending danger overhead, and
they harken their ears for a song of
salvation. Instead, all they ever hear is
a prayer for the dead.
the number of heroin users in the
United States rose by nearly 300,000
according to the National Institute on
Drug Abuse. Todays heroin users are
no longer the urban, desperate, and
uneducated. Now, even suburban and
rural communities are reporting
signicant increase in heroin use.
Thanks to the new opportunities, India
has developed a thriving business
based on mail-order oxycodone and
oxycontin. The Indian company then
ships the drugs discretely by US Mail
or via some large private courier
company. This puts South Asia in the
cross hairs of American drug policy
even though Afghanistan has become
the worlds largest heroin producer.
Afghanistan is ghting to respond to
an escalating domestic opiate
addiction epidemic, where citizens
are familiar with drug money
laundering through shady nancial
networks.
In America the threats are more
muted. The United States Oce of
National Drug Control Policy
promised aid to Afghanistan for the
nding of alternate economic
sources. However, it closed the bill
with a cryptic promise: The United
States will continue to work with
and provide support to opium
poppy producing countries by
creating both incentives for opium
growers to participate in licit
livelihoods, while simultaneously
strengthening the disincentives to
participation in the narcotics industry
through increased interdiction and
other law enforcement and supply
reduction measures. The report did
not elaborate what those supply
reduction measures would be.
Not surprisingly, the United States
waged a war against marijuana over
the past few decades (in the United
States, almost all problems are solved
by a war of some kind). The country
patrolled its own ocean ports
incessantly. They dropped
plant-killing agents all over large
parts of Colombia and then arrested
or imprisoned foreign nationals who
had never even been there but who
allegedly conspired from their
home countries to break American
drug laws.
It is hard to nd anyone who ever died
from a marijuana overdose, but heroin
overdose crowds the countrys
hospitals. While studies show heroin
overdose admissions spiking, legal
medicinal use is not likely to be
something that the American
government will easily accept. In fact,
the United States Department of
International Narcotics Control
Strategy Report on Afghanistan for
2014 was rather dismissive on the
matter, stating: Illicit drug cultivation,
production, tracking, and
consumption ourish in Afghanistan,
particularly in parts of the south and
southwest where instability is high
and state institutions are weak or
non-existent. A symbiotic relationship
exists between the insurgency and
narcotics tracking in Afghanistan.
Trackers provide weapons, funding,
and other material support to the
insurgency in exchange for the
protection of drug trade routes, elds,
laboratories, and their organizations.
Some insurgent commanders engage
directly in drug tracking to nance
their operations. The narcotics trade
undermines government and rule of
law in all parts of the country where
poppy is cultivated and trackers
operate.
Afghanistan relies on assistance from
the international community in order
to implement its national
counter-narcotics strategies.
Meanwhile, America is just now
nishing up its twelve-year war in
Afghanistan. However, illicit drugs
production (particularly heroin),
ourishes there; and it would be no
dicult task for America to retrot
their new predator drones with
defoliant canisters or even Napalm.
The situation in Pakistan is equally
dismissive, but for a dierent reason:
Pakistan does not play a signicant
role in narcotics production. Instead,
it is like an expressway through which
drugs travel to other parts of the
The Epilogue
With strategic location, favorable
climatic characteristics and positive
demographics, Turkey has always
had a great potential to be one of the
leading economies of the world.
However, the in-ghting, poor
banking system, and the
incompetent administrative control
ceased Turkey to have a decent
economic system- let alone play to
its potential. The previous decade,
however, changed the dimensions.
The ecient, tightened control by
the government certainly cracked
the shatters. The freedom of
Central Bank has paved the way for
more circumspect strategies to take
place. What happens in future is still
a question to ponder upon. The
OECD (The Organisation for
Economic Co-operation and
Development) projects the economy
to grow over 5% annually till 2017.
Other independent associations
expect lesser optimistic scenario -
but a common perception suggests
an ultimate rise after a couple of
slowdown years. The elections could
hold the key. And then they say if the
condent and self-assured vow of
Erdoan about brining Turkey
amongst top 10 leading economies
is considered, one would be tempted
to believe that this small step back
might be an indication for the giant
leap ahead. Such is the Turkish
economic story.
nation and unemployment
rocketing up, markets falling
apart, Lira coming tumbling
down - Turkish economy had
once been all in the shatters. 2001
happened to be the breaking point
for economy, erupting after the
delinquencies and criminal mistakes
which Turkish governments
devotedly performed since 1980.
Such were the crises.
Turkish economy in the
previous-most decade though, is
referred as a miracle, the
most-fascinating growth story by
the HSBC Global Asset ocial and
prominent Economists. This
relatively recent drive is much
related to the vow that calls to bring
Turkey in top 10 world economies-
by none other than the
controversial current premiere of
Turkey, Mr. Recep Erdoan. It is in
fact the current government set-up
which has its due credit to not only
pulling out of the sinking economy,
but sailing it right through to let it
be classied by its tripled GDP
gure since the mega crises,
booming investor condence and
the likes. On the European scene, it
had the fastest growth of 8.5% in
2011. On the world scene, it is being
regarded as the foremost emerging
market, and is chasing up with
China.
Very recently, stabilization on the
economic scene is facing a scare.
And again it is being dominated by
politics of the region. The corruption
accusation on the current
government leaves unpromising
impact on the macroeconomic
well-being of the country. This
recent turmoil, built by
anti-government, pro-secular
groups, arrived at its boiling point
with the arrests of two cabinet
ministers - over their purported role
in the illegal estate deals. Later on,
these and other 6 ministers were
sacked, further fueling up the
controversies. The other dimension
of the political trouble is the rivalry
between self-exiled religious
leader, Fetaullah Glen and Recep
Erdoan- the former also being ally
of the Prime Minister.
Pre-2001: What went wrong?
Turkeys lure to comprehensively
rely on the FDI or the short term
capital inows for the basic
economic growth made the
economics in Turkey very volatile
throughout the 80s and the 90s. This
lead to the rising rate of ination-
and it reached to the point when the
average gure for 92-2002 period
was 70.4%. The budget decit
nancing was taken to staggering
7% of the GDP in 1997 and since
most of it was chiey nanced by
the short-term cash ows - greater
harm was inicted by the ination.
Ultimately, the comment this is a
serious crises by Prime minister
Ecevit climaxed the entire
MAY 2014 17
www. economi cafai r s. com. pk
ECONOMY
proceedings. The fear of bankruptcy
further strengthened. The debt kept
mounting up and so did the interest
rates levied on them. The aftermath
encompassed panicking nancial
markets; unstable exhange and
interest rates. How else would it be
possibly gloomier?
And who could have rescued the
Turkish Economy after the
legendary Bubble Burst?
Over 11 billion loan by IMF and
other stabilization eorts prior to
2002 proved largely futile. The
2002 elections which led the Party
of Justice and Development (AKP) to
take the reins proved historically
critical. Fortunately for Turkey, AKP
not only began working on the
well-implemented ways to recover,
but also continued the good
measures initiated by former
nancial Minister Kemal Dervi. IMF
programs were made to prove more
appropriate by making adjustments
on the local scene. Their goal to
undo the inequality in income
distribution was pivotal- as only the
elite and foreigners were actively
soaking up all the wealth. Perhaps
the most critical of the steps by
Erdoan was the introduction of FDI.
As a consequence, investing was
made less intricate, which attracted
FDI back. This time attempts were
made to make a positive use of such
investment.
The goverment also had to impose
certain controversial measures and
privatising the public industries is
termed as the bravest of them. The
goverment was careful. It targetted
only the loss-yieding companies.
Switching to the oating exchange
rate was another mega-move, and so
was waving o limitations on the
Central Bank. This was then
extended to augment a series of
banking reforms. Finally a much
restricted scal policy helped
disinate the struggling economy; a
once-written-o economy was
gradually growing. And it did grow
large; large enough to be termed as
the 17th largest in world and sixth in
the entire Europe.
Future Prospects: Is it in safe hands
now?
After a decade of steady growth, it
is highly likely that the Turkish
economy will experience a
slowdown in 2014 and 2015, says
Atilla Koksal, the Chairman of
Turkish Capital Markets Association.
So is Turkey past its prime now? This
anticipated slowdown could well be
the result of political happenings
dominated by three elections in two
years. The results of rst elections,
where AKP secured distinctive
majority, however made the
uncertainty fade away to some
extent. The cold war between the
Glen movement and Erdoan, and
international medias disliking of
the latter doesnt help either.
Having said that, Atilla Koksal also
stressed that Turkey oers an
optimistic long-term investment
case. Additionally, one could easily
identify Turkish positive
demographics as a major future
potential. Half of its population is
less than 30 in age.
Having said that,
Atilla Koksal also
stressed that Turkey
oers an optimistic
long-term investment
case. Additionally, one
could easily identify
Turkish positive
demographics as a major
future potential.
SAAD QAMAR IQBAL
The writer is studying Management
Science at Istanbul ehir University.
He takes interest in world
economics and current aairs.
Turkish Prime Minister
Tayyip Erdogan
(File Photo)
housands of Afghani,
Pakistani, and Central
American farmers who are
now slicing open millions of
acres of poppy pods, harvesting raw
opium - the rst step in heroin
production in the developing world.
Since heroin is a farmers livelihood
and heroin is an addicts life, both are
caught in the middle of an American
drug policy that is at war with itself.
You see, American pharmacology
companies have created millions of
drug-dependent people by
prescribing them addictive painkillers
made with opiates derived from
Afghanistan and Pakistan. Meanwhile,
the addiction rehabilitation eorts in
America have been cut o or
drastically reduced to save the
countrys money. Now, the desperate
are turning to heroin for solace, as the
most powerful nation on earth is
beginning to look like it might bite the
hand that feeds it.
Americas drug policy spins on an axis
of opiates. For centuries mankind has
used heroin to treat pain, although it
currently has no lawful medical use in
the United States. In countries such as
the UK and the Netherlands, doctors
prescribe heroin to relieve the pain of
trauma, post-surgery discomfort, end
stage cancer, cesarean sections, and
even heart attacks. Some physicians
even prefer heroin over morphine
because it is more fat soluble and can
reach the target site quicker. In the
United States, however, its a dierent
story.
Around 2010, small pain
management clinics started popping
up in America. These makeshift clinics
oered no beds, exam tables,
medicines, or testing tools and were
little more than doctors sitting behind
tables selling prescriptions with a
minimum sta. The more money the
patient had, the more drugs they got.
In a country where capitalism is the
closest thing to a moral consensus,
making money often seems like the
only thing to do. Indeed, the business
is cash and the books are sloppy.
In 2012, the American company,
Actavis, grossed $5.9 billion in prots
from its exclusive rights to
manufacture and distribute
oxycodone. This is nearly three times
the revenue of Afghanistans entire
government. The success of such pill
mills is largely a result of Americas
fragmented and inecient legal
system that dates back two centuries
ago when states or provinces
mistrusted one another and a central
government. The national
government controls use of many
dangerous drugs, spending billions in
a war sieged to cut o the import of
drugs like heroin and cocaine.
Things are dierent with prescribed
drugs though. Those fall under the
aegis of the Food and Drug
Administration, but once a drug wins
FDA approval a doctor can prescribe it
pretty much at his or her own
discretion. Regulation of pain
management doctors is scarce. Even
now, a doctor can be a pain
management specialist by simply
paying $500, passing a criminal
background check, and lling out a
short application. In some states,
dispensing opiate derived drugs has
become a thriving industry.
The American nation, its doctors, and
the pharmaceutical industries have
created millions of drug dependent
victims who come streaming into
emergency rooms and morgues. The
latest gures available from the
National Institute on Drug Abuse
show that deaths from prescription
opioids outpace deaths from all illegal
drugs combined. In addition,
Americas Center for Disease Control
atly stated, Prescription drug abuse
is the fastest growing drug problem in
the United States. The increase in
unintentional drug overdose deaths in
recent years has been driven by a
class of prescription drugs called
opioid analgesics. - CDC Grand
Rounds: Prescription Drug Overdoses
a U.S. Epidemic.
In the past few years the DEA has
developed programs for spotting
inordinate drug prescriptions. This
has produced an impressive string of
arrests. In short, the federal
government was taking millions of
oxycodone doses out of the hands of
addicts. Soon, heroin became the
alternative. A report by the Mayo
Clinic conrmed emergency room
admission for heroin overdoses were
spiking between 2012 and 2014.
As pressure builds against
prescription pain killers, heroin use
increases. Between 2007 and 2012
world. The State Departments
International Narcotics Control
Strategy Report on Pakistan for 2014
was precise on its assessment:
Pakistan is the worlds
highest-volume transit corridor for
opiates and cannabis. Drug trackers
exploit the countrys porous borders
with Afghanistan and Iran, and the
UNODC estimates that 40 percent of
the worlds supply of heroin traverses
Pakistan en route to China, the Gulf
States, Africa, Europe and North
America, often transiting through
Pakistans seaports, airports, postal
routes and coastal areas.
In 2013 Pakistans law enforcement
agencies achieved signicant
narcotics seizures, though no major
drug trackers were ever arrested.
Budget limitations and ckle politics
will continue to hinder any
counter-narcotics eorts. In the
meantime, Pakistani law
enforcement agencies remain
preoccupied with more urgent
threats such as widespread political
violence and extremism.
So now, the worlds most prolic
opium producer sits next door to the
worlds most ecient drug transit
system. Neither Afghanistan nor
Pakistan is in a position to give the
US any aid with its rampant drug
problem. Indeed, both countries
could convincingly argue that the
United States caused the resurgence
of heroin by succumbing to its own
greed.
Sharing the same destiny they both
stand on opposite sides of the world.
The Southern Afghanistan farmer
walks through his poppy elds testing
the pods one by one to ensure his
livelihood; and the heroin addict is
left wondering whether or not this
dose will be the last. Each is equally
desperate for a change.
The addict and the farmer are both
caught at dierent ends of the same
lucrative and killer trap. They
simultaneously listen for the sounds
of impending danger overhead, and
they harken their ears for a song of
salvation. Instead, all they ever hear is
a prayer for the dead.
the number of heroin users in the
United States rose by nearly 300,000
according to the National Institute on
Drug Abuse. Todays heroin users are
no longer the urban, desperate, and
uneducated. Now, even suburban and
rural communities are reporting
signicant increase in heroin use.
Thanks to the new opportunities, India
has developed a thriving business
based on mail-order oxycodone and
oxycontin. The Indian company then
ships the drugs discretely by US Mail
or via some large private courier
company. This puts South Asia in the
cross hairs of American drug policy
even though Afghanistan has become
the worlds largest heroin producer.
Afghanistan is ghting to respond to
an escalating domestic opiate
addiction epidemic, where citizens
are familiar with drug money
laundering through shady nancial
networks.
In America the threats are more
muted. The United States Oce of
National Drug Control Policy
promised aid to Afghanistan for the
nding of alternate economic
sources. However, it closed the bill
with a cryptic promise: The United
States will continue to work with
and provide support to opium
poppy producing countries by
creating both incentives for opium
growers to participate in licit
livelihoods, while simultaneously
strengthening the disincentives to
participation in the narcotics industry
through increased interdiction and
other law enforcement and supply
reduction measures. The report did
not elaborate what those supply
reduction measures would be.
Not surprisingly, the United States
waged a war against marijuana over
the past few decades (in the United
States, almost all problems are solved
by a war of some kind). The country
patrolled its own ocean ports
incessantly. They dropped
plant-killing agents all over large
parts of Colombia and then arrested
or imprisoned foreign nationals who
had never even been there but who
allegedly conspired from their
home countries to break American
drug laws.
It is hard to nd anyone who ever died
from a marijuana overdose, but heroin
overdose crowds the countrys
hospitals. While studies show heroin
overdose admissions spiking, legal
medicinal use is not likely to be
something that the American
government will easily accept. In fact,
the United States Department of
International Narcotics Control
Strategy Report on Afghanistan for
2014 was rather dismissive on the
matter, stating: Illicit drug cultivation,
production, tracking, and
consumption ourish in Afghanistan,
particularly in parts of the south and
southwest where instability is high
and state institutions are weak or
non-existent. A symbiotic relationship
exists between the insurgency and
narcotics tracking in Afghanistan.
Trackers provide weapons, funding,
and other material support to the
insurgency in exchange for the
protection of drug trade routes, elds,
laboratories, and their organizations.
Some insurgent commanders engage
directly in drug tracking to nance
their operations. The narcotics trade
undermines government and rule of
law in all parts of the country where
poppy is cultivated and trackers
operate.
Afghanistan relies on assistance from
the international community in order
to implement its national
counter-narcotics strategies.
Meanwhile, America is just now
nishing up its twelve-year war in
Afghanistan. However, illicit drugs
production (particularly heroin),
ourishes there; and it would be no
dicult task for America to retrot
their new predator drones with
defoliant canisters or even Napalm.
The situation in Pakistan is equally
dismissive, but for a dierent reason:
Pakistan does not play a signicant
role in narcotics production. Instead,
it is like an expressway through which
drugs travel to other parts of the
clinically due to its broad
generalizations and lack of any
real theoretical or empirical
foundation for the four groups
of characteristics which
includes greed, revenge, anger,
perversion, politics, and a desire
for power. Developing a reliable
oender prole would increase
the ecacy of the forensic
interview process with
computer criminals.
The choice of which proling
method to use is debatable.
With the advent of the Internet,
geographical borders are
becoming meaningless. Using
an inductive proling method such as
the FBI or IP method, which is
arguably culturally biased, does not
make practical sense. On the other
hand, however, it appears that
deductive proling is more suited to
computer-related cases. Deductive
proling methods (e.g., BEA), unlike
the FBI or IP methods, do not rely on a
large oender database or on
statistical analysis of previously
convicted oenders and should be
less culturally biased.
Although cyber forensics is thought
of as a new and emerging eld within
the forensic sciences, cyber forensics
is being used as an investigative tool
in order to allow the investigator to
determine what has occurred, when
it occurred, where it occurred, why it
might have occurred, and hopefully
who is responsible. These outcomes
are similar to the goals of traditional
criminal investigations. As more and
more criminal behaviours become
linked to technology and the
Internet, more evidence will move
into the plethora of the digital or
electronic world. This development
of evidence means that investigative
strategies also must progress in order
to be applicable today and in the not
so distant future. It is written on the
wall that criminal proling seems to
be an eective investigative tool and
it will surely adopt innovations and
changes on its way as it reshapes
itself to face the challenges posed by
advanced technology and
cybercrime.
MAY 2014 18
www. economi cafai r s. com. pk
CYBER CRIME
nformation security has become
increasingly important to
organizations. Despite the
prevalence of technical security
measures, individual employees
remain the key link and frequently
the weakest link in corporate
defences. Developments in
technology have changed the
environment of crime, which, in some
of its new forms, poses a serious
threat to society. Type I Cybercrime is
mostly technological in nature, and
Type II Cybercrime has a more
pronounced human element. In
response to the threat of cyber-crime
there is an urgent need to deal with
this threat. Before designing a secure
system, it is advisable to identify the
specic threats against which
protection is required. The threats
may be classied into interruption,
interception, modication, and
fabrication.
The new environment in which the
internet must operate is much less
collegial. It contains all the situations,
people, and risks that we nd in the
society as a whole. Media ash
stories of high-prole cracker
attacks against government,
business, and academic sites.
Crackers access the Internet with
impunity, defending their tracks by
moving from system to system.
Intruders illegally use systems to
exchange copyrighted software, to
obtain sensitive business
information, and in general, to cause
panic. New users of the Internet may
fail to realize that their sites could be
at risk to intruders who use the
system as a means for attacking and
causing various security incidents.
Therefore, new internet sites are
often prime targets for malicious
activity, including break-in, le
tampering, and service disruption.
Such activities may be dicult to
discover and set right, highly
embarrassing to the organization,
and cost eective in terms of lost
productivity and damage to
important data.
At no other time in history has
society been so dependent on
technology and its various oshoots
and inventions. Almost every facet of
our day-to-day lives is impacted to
some extent by technology (e.g.,
email, Internet, online banking,
digital music, etc.). This reliance and
to some extent dependence on
technology, has had a ripple eect on
other less obvious areas of society.
One such area is law enforcement
and, more specically, criminal
investigations. Historically, criminal
investigations relied on such
concepts as physical evidence,
eyewitnesses, and confessions.
Today, the criminal investigator must
recognize that a vast amount of
evidence will be in the electronic or
digital form. The crime scene may
consist of a computer system or
network as opposed to the
traditional physical scene. The
eyewitness of today and tomorrow
may be a computer generated log
le.
In order to assist the investigator in
this rather new realm criminal
proling has a role to play in the
I
criminal profling in
cyber crimes
HONEY NETS
forensic investigation of the
cybercrime oenders.
Inductive proling uses the
information from the oender
database to predict
personality traits and
behaviours of oenders in
specic cases and deductive
proling on the other hand,
does not rely on generalities
from sample groups and is
simply based on deductive
logic and argues from the
specic to the general.
Until quite recently, the
inductive models were the
most common proling
methods when FBI has developed the
Holmes typology or FBI model which
has now developed into Crime Scene
Analysis. It incorporates six steps
including proling inputs, decision
process models, crime assessment,
criminal prole, and the investigation
and apprehension. It shows that by
exploring the crime scene, the
investigator attempts to identify
evidence pertinent to determining an
oender modus operandi or
evidence of signature behaviours.
Another inductive based approach is
Canters investigative psychology (IP)
which is a dynamic methodology in
that the database of oender
characteristics is being continually
updated. IP is similar to the FBI model
in that it also relies heavily on
statistics derived from oender
databases. IP uses a ve-factor model
which includes interpersonal
coherence, signicance of time and
place, criminal characteristics,
criminal career, and forensic
awareness. Interestingly Canter
expanded IP to include circle theory
with a focus on environmental
factors. Circle theory classies the
oender as either being a marauder
or a commuter. Marauders usually
operate within a given short distance
from their home base, whereas
commuters travel some distance
before engaging in the criminal
action.
Unlike the rst two methods
described which rely on inductive
logic, the third model, behavioural
evidence analysis (BEA) is developed
by Turvey, and is based on deductive
logic. The BEA method has four steps
and two primary phases. The two
phases are the investigative phase
and the trial phase. The investigative
phase occurs when an event has
happened but no oender has been
caught and the second phase deals
with assessing a known event with a
suspected oender.
The case for claiming that criminal
proling should play an active, albeit
a supporting role in cybercrime is
uncomplicated. What is unique is the
fact that unlike other types of
physical evidence, electronic or
digital evidence is combustible and
therefore easily contaminated or
destroyed. The crime scene, namely
the computer, is also peculiar to
computer forensics. Unlike
traditional crime scenes, the
evidence may only exist in the
cyber-world of the computer itself, a
network, or the network of networks,
the internet. The computer itself may
be the only hard witness to crime. In
such case, reliable, accurate, and as
true as possible representations of
the various log and audit trails need
to be created and validated. At the
end of the day, the investigator wants
the trail of evidence to identify the
oender. Unfortunately, with the
cyber forensics, the trail will only
often time end in the ability to
identify the computer system used to
perpetrate the oence, or conclusive
evidence that a particular system was
indeed used in the oence. Basically
it would be more dicult to place a
person behind the keyboard of that
system.
The FBI has made inroads at
developing cyber-criminal proles
but the FBIs Computer Crime
Adversarial Matrix draws
generalizations about the attributes
of computer attackers and is
primarily based on stereotypes. The
matrix has not been overly successful
housands of Afghani,
Pakistani, and Central
American farmers who are
now slicing open millions of
acres of poppy pods, harvesting raw
opium - the rst step in heroin
production in the developing world.
Since heroin is a farmers livelihood
and heroin is an addicts life, both are
caught in the middle of an American
drug policy that is at war with itself.
You see, American pharmacology
companies have created millions of
drug-dependent people by
prescribing them addictive painkillers
made with opiates derived from
Afghanistan and Pakistan. Meanwhile,
the addiction rehabilitation eorts in
America have been cut o or
drastically reduced to save the
countrys money. Now, the desperate
are turning to heroin for solace, as the
most powerful nation on earth is
beginning to look like it might bite the
hand that feeds it.
Americas drug policy spins on an axis
of opiates. For centuries mankind has
used heroin to treat pain, although it
currently has no lawful medical use in
the United States. In countries such as
the UK and the Netherlands, doctors
prescribe heroin to relieve the pain of
trauma, post-surgery discomfort, end
stage cancer, cesarean sections, and
even heart attacks. Some physicians
even prefer heroin over morphine
because it is more fat soluble and can
reach the target site quicker. In the
United States, however, its a dierent
story.
Around 2010, small pain
management clinics started popping
up in America. These makeshift clinics
oered no beds, exam tables,
medicines, or testing tools and were
little more than doctors sitting behind
tables selling prescriptions with a
minimum sta. The more money the
patient had, the more drugs they got.
In a country where capitalism is the
closest thing to a moral consensus,
making money often seems like the
only thing to do. Indeed, the business
is cash and the books are sloppy.
In 2012, the American company,
Actavis, grossed $5.9 billion in prots
from its exclusive rights to
manufacture and distribute
oxycodone. This is nearly three times
the revenue of Afghanistans entire
government. The success of such pill
mills is largely a result of Americas
fragmented and inecient legal
system that dates back two centuries
ago when states or provinces
mistrusted one another and a central
government. The national
government controls use of many
dangerous drugs, spending billions in
a war sieged to cut o the import of
drugs like heroin and cocaine.
Things are dierent with prescribed
drugs though. Those fall under the
aegis of the Food and Drug
Administration, but once a drug wins
FDA approval a doctor can prescribe it
pretty much at his or her own
discretion. Regulation of pain
management doctors is scarce. Even
now, a doctor can be a pain
management specialist by simply
paying $500, passing a criminal
background check, and lling out a
short application. In some states,
dispensing opiate derived drugs has
become a thriving industry.
The American nation, its doctors, and
the pharmaceutical industries have
created millions of drug dependent
victims who come streaming into
emergency rooms and morgues. The
latest gures available from the
National Institute on Drug Abuse
show that deaths from prescription
opioids outpace deaths from all illegal
drugs combined. In addition,
Americas Center for Disease Control
atly stated, Prescription drug abuse
is the fastest growing drug problem in
the United States. The increase in
unintentional drug overdose deaths in
recent years has been driven by a
class of prescription drugs called
opioid analgesics. - CDC Grand
Rounds: Prescription Drug Overdoses
a U.S. Epidemic.
In the past few years the DEA has
developed programs for spotting
inordinate drug prescriptions. This
has produced an impressive string of
arrests. In short, the federal
government was taking millions of
oxycodone doses out of the hands of
addicts. Soon, heroin became the
alternative. A report by the Mayo
Clinic conrmed emergency room
admission for heroin overdoses were
spiking between 2012 and 2014.
As pressure builds against
prescription pain killers, heroin use
increases. Between 2007 and 2012
world. The State Departments
International Narcotics Control
Strategy Report on Pakistan for 2014
was precise on its assessment:
Pakistan is the worlds
highest-volume transit corridor for
opiates and cannabis. Drug trackers
exploit the countrys porous borders
with Afghanistan and Iran, and the
UNODC estimates that 40 percent of
the worlds supply of heroin traverses
Pakistan en route to China, the Gulf
States, Africa, Europe and North
America, often transiting through
Pakistans seaports, airports, postal
routes and coastal areas.
In 2013 Pakistans law enforcement
agencies achieved signicant
narcotics seizures, though no major
drug trackers were ever arrested.
Budget limitations and ckle politics
will continue to hinder any
counter-narcotics eorts. In the
meantime, Pakistani law
enforcement agencies remain
preoccupied with more urgent
threats such as widespread political
violence and extremism.
So now, the worlds most prolic
opium producer sits next door to the
worlds most ecient drug transit
system. Neither Afghanistan nor
Pakistan is in a position to give the
US any aid with its rampant drug
problem. Indeed, both countries
could convincingly argue that the
United States caused the resurgence
of heroin by succumbing to its own
greed.
Sharing the same destiny they both
stand on opposite sides of the world.
The Southern Afghanistan farmer
walks through his poppy elds testing
the pods one by one to ensure his
livelihood; and the heroin addict is
left wondering whether or not this
dose will be the last. Each is equally
desperate for a change.
The addict and the farmer are both
caught at dierent ends of the same
lucrative and killer trap. They
simultaneously listen for the sounds
of impending danger overhead, and
they harken their ears for a song of
salvation. Instead, all they ever hear is
a prayer for the dead.
the number of heroin users in the
United States rose by nearly 300,000
according to the National Institute on
Drug Abuse. Todays heroin users are
no longer the urban, desperate, and
uneducated. Now, even suburban and
rural communities are reporting
signicant increase in heroin use.
Thanks to the new opportunities, India
has developed a thriving business
based on mail-order oxycodone and
oxycontin. The Indian company then
ships the drugs discretely by US Mail
or via some large private courier
company. This puts South Asia in the
cross hairs of American drug policy
even though Afghanistan has become
the worlds largest heroin producer.
Afghanistan is ghting to respond to
an escalating domestic opiate
addiction epidemic, where citizens
are familiar with drug money
laundering through shady nancial
networks.
In America the threats are more
muted. The United States Oce of
National Drug Control Policy
promised aid to Afghanistan for the
nding of alternate economic
sources. However, it closed the bill
with a cryptic promise: The United
States will continue to work with
and provide support to opium
poppy producing countries by
creating both incentives for opium
growers to participate in licit
livelihoods, while simultaneously
strengthening the disincentives to
participation in the narcotics industry
through increased interdiction and
other law enforcement and supply
reduction measures. The report did
not elaborate what those supply
reduction measures would be.
Not surprisingly, the United States
waged a war against marijuana over
the past few decades (in the United
States, almost all problems are solved
by a war of some kind). The country
patrolled its own ocean ports
incessantly. They dropped
plant-killing agents all over large
parts of Colombia and then arrested
or imprisoned foreign nationals who
had never even been there but who
allegedly conspired from their
home countries to break American
drug laws.
It is hard to nd anyone who ever died
from a marijuana overdose, but heroin
overdose crowds the countrys
hospitals. While studies show heroin
overdose admissions spiking, legal
medicinal use is not likely to be
something that the American
government will easily accept. In fact,
the United States Department of
International Narcotics Control
Strategy Report on Afghanistan for
2014 was rather dismissive on the
matter, stating: Illicit drug cultivation,
production, tracking, and
consumption ourish in Afghanistan,
particularly in parts of the south and
southwest where instability is high
and state institutions are weak or
non-existent. A symbiotic relationship
exists between the insurgency and
narcotics tracking in Afghanistan.
Trackers provide weapons, funding,
and other material support to the
insurgency in exchange for the
protection of drug trade routes, elds,
laboratories, and their organizations.
Some insurgent commanders engage
directly in drug tracking to nance
their operations. The narcotics trade
undermines government and rule of
law in all parts of the country where
poppy is cultivated and trackers
operate.
Afghanistan relies on assistance from
the international community in order
to implement its national
counter-narcotics strategies.
Meanwhile, America is just now
nishing up its twelve-year war in
Afghanistan. However, illicit drugs
production (particularly heroin),
ourishes there; and it would be no
dicult task for America to retrot
their new predator drones with
defoliant canisters or even Napalm.
The situation in Pakistan is equally
dismissive, but for a dierent reason:
Pakistan does not play a signicant
role in narcotics production. Instead,
it is like an expressway through which
drugs travel to other parts of the
clinically due to its broad
generalizations and lack of any
real theoretical or empirical
foundation for the four groups
of characteristics which
includes greed, revenge, anger,
perversion, politics, and a desire
for power. Developing a reliable
oender prole would increase
the ecacy of the forensic
interview process with
computer criminals.
The choice of which proling
method to use is debatable.
With the advent of the Internet,
geographical borders are
becoming meaningless. Using
an inductive proling method such as
the FBI or IP method, which is
arguably culturally biased, does not
make practical sense. On the other
hand, however, it appears that
deductive proling is more suited to
computer-related cases. Deductive
proling methods (e.g., BEA), unlike
the FBI or IP methods, do not rely on a
large oender database or on
statistical analysis of previously
convicted oenders and should be
less culturally biased.
Although cyber forensics is thought
of as a new and emerging eld within
the forensic sciences, cyber forensics
is being used as an investigative tool
in order to allow the investigator to
determine what has occurred, when
it occurred, where it occurred, why it
might have occurred, and hopefully
who is responsible. These outcomes
are similar to the goals of traditional
criminal investigations. As more and
more criminal behaviours become
linked to technology and the
Internet, more evidence will move
into the plethora of the digital or
electronic world. This development
of evidence means that investigative
strategies also must progress in order
to be applicable today and in the not
so distant future. It is written on the
wall that criminal proling seems to
be an eective investigative tool and
it will surely adopt innovations and
changes on its way as it reshapes
itself to face the challenges posed by
advanced technology and
cybercrime.
nformation security has become
increasingly important to
organizations. Despite the
prevalence of technical security
measures, individual employees
remain the key link and frequently
the weakest link in corporate
defences. Developments in
technology have changed the
environment of crime, which, in some
of its new forms, poses a serious
threat to society. Type I Cybercrime is
mostly technological in nature, and
Type II Cybercrime has a more
pronounced human element. In
response to the threat of cyber-crime
there is an urgent need to deal with
this threat. Before designing a secure
system, it is advisable to identify the
specic threats against which
protection is required. The threats
may be classied into interruption,
interception, modication, and
fabrication.
The new environment in which the
internet must operate is much less
collegial. It contains all the situations,
people, and risks that we nd in the
society as a whole. Media ash
stories of high-prole cracker
attacks against government,
business, and academic sites.
Crackers access the Internet with
impunity, defending their tracks by
moving from system to system.
Intruders illegally use systems to
exchange copyrighted software, to
obtain sensitive business
information, and in general, to cause
panic. New users of the Internet may
fail to realize that their sites could be
at risk to intruders who use the
system as a means for attacking and
causing various security incidents.
Therefore, new internet sites are
often prime targets for malicious
activity, including break-in, le
tampering, and service disruption.
Such activities may be dicult to
discover and set right, highly
embarrassing to the organization,
and cost eective in terms of lost
productivity and damage to
important data.
At no other time in history has
society been so dependent on
technology and its various oshoots
and inventions. Almost every facet of
our day-to-day lives is impacted to
some extent by technology (e.g.,
email, Internet, online banking,
digital music, etc.). This reliance and
to some extent dependence on
technology, has had a ripple eect on
other less obvious areas of society.
One such area is law enforcement
and, more specically, criminal
investigations. Historically, criminal
investigations relied on such
concepts as physical evidence,
eyewitnesses, and confessions.
Today, the criminal investigator must
recognize that a vast amount of
evidence will be in the electronic or
digital form. The crime scene may
consist of a computer system or
network as opposed to the
traditional physical scene. The
eyewitness of today and tomorrow
may be a computer generated log
le.
In order to assist the investigator in
this rather new realm criminal
proling has a role to play in the
MAY 2014 19
www. economi cafai r s. com. pk
CYBER CRIME
forensic investigation of the
cybercrime oenders.
Inductive proling uses the
information from the oender
database to predict
personality traits and
behaviours of oenders in
specic cases and deductive
proling on the other hand,
does not rely on generalities
from sample groups and is
simply based on deductive
logic and argues from the
specic to the general.
Until quite recently, the
inductive models were the
most common proling
methods when FBI has developed the
Holmes typology or FBI model which
has now developed into Crime Scene
Analysis. It incorporates six steps
including proling inputs, decision
process models, crime assessment,
criminal prole, and the investigation
and apprehension. It shows that by
exploring the crime scene, the
investigator attempts to identify
evidence pertinent to determining an
oender modus operandi or
evidence of signature behaviours.
Another inductive based approach is
Canters investigative psychology (IP)
which is a dynamic methodology in
that the database of oender
characteristics is being continually
updated. IP is similar to the FBI model
in that it also relies heavily on
statistics derived from oender
databases. IP uses a ve-factor model
which includes interpersonal
coherence, signicance of time and
place, criminal characteristics,
criminal career, and forensic
awareness. Interestingly Canter
expanded IP to include circle theory
with a focus on environmental
factors. Circle theory classies the
oender as either being a marauder
or a commuter. Marauders usually
operate within a given short distance
from their home base, whereas
commuters travel some distance
before engaging in the criminal
action.
Unlike the rst two methods
described which rely on inductive
logic, the third model, behavioural
evidence analysis (BEA) is developed
by Turvey, and is based on deductive
logic. The BEA method has four steps
and two primary phases. The two
phases are the investigative phase
and the trial phase. The investigative
phase occurs when an event has
happened but no oender has been
caught and the second phase deals
with assessing a known event with a
suspected oender.
The case for claiming that criminal
proling should play an active, albeit
a supporting role in cybercrime is
uncomplicated. What is unique is the
fact that unlike other types of
physical evidence, electronic or
digital evidence is combustible and
therefore easily contaminated or
destroyed. The crime scene, namely
the computer, is also peculiar to
computer forensics. Unlike
traditional crime scenes, the
evidence may only exist in the
cyber-world of the computer itself, a
network, or the network of networks,
the internet. The computer itself may
be the only hard witness to crime. In
such case, reliable, accurate, and as
true as possible representations of
the various log and audit trails need
to be created and validated. At the
end of the day, the investigator wants
the trail of evidence to identify the
oender. Unfortunately, with the
cyber forensics, the trail will only
often time end in the ability to
identify the computer system used to
perpetrate the oence, or conclusive
evidence that a particular system was
indeed used in the oence. Basically
it would be more dicult to place a
person behind the keyboard of that
system.
The FBI has made inroads at
developing cyber-criminal proles
but the FBIs Computer Crime
Adversarial Matrix draws
generalizations about the attributes
of computer attackers and is
primarily based on stereotypes. The
matrix has not been overly successful
Crackers access the
Internet with impunity,
defending their tracks by
moving from system to
system. Intruders
illegally use systems to
exchange copyrighted
software, to obtain
sensitive business
information, and in
general, to cause panic.
DR FAWAD KAISER
Dr Fawad Kaiser is Professor of
Psychiatry and Consultant Forensic
Psychiatrist with the
Huntercombe Group in UK.
housands of Afghani,
Pakistani, and Central
American farmers who are
now slicing open millions of
acres of poppy pods, harvesting raw
opium - the rst step in heroin
production in the developing world.
Since heroin is a farmers livelihood
and heroin is an addicts life, both are
caught in the middle of an American
drug policy that is at war with itself.
You see, American pharmacology
companies have created millions of
drug-dependent people by
prescribing them addictive painkillers
made with opiates derived from
Afghanistan and Pakistan. Meanwhile,
the addiction rehabilitation eorts in
America have been cut o or
drastically reduced to save the
countrys money. Now, the desperate
are turning to heroin for solace, as the
most powerful nation on earth is
beginning to look like it might bite the
hand that feeds it.
Americas drug policy spins on an axis
of opiates. For centuries mankind has
used heroin to treat pain, although it
currently has no lawful medical use in
the United States. In countries such as
the UK and the Netherlands, doctors
prescribe heroin to relieve the pain of
trauma, post-surgery discomfort, end
stage cancer, cesarean sections, and
even heart attacks. Some physicians
even prefer heroin over morphine
because it is more fat soluble and can
reach the target site quicker. In the
United States, however, its a dierent
story.
Around 2010, small pain
management clinics started popping
up in America. These makeshift clinics
oered no beds, exam tables,
medicines, or testing tools and were
little more than doctors sitting behind
tables selling prescriptions with a
minimum sta. The more money the
patient had, the more drugs they got.
In a country where capitalism is the
closest thing to a moral consensus,
making money often seems like the
only thing to do. Indeed, the business
is cash and the books are sloppy.
In 2012, the American company,
Actavis, grossed $5.9 billion in prots
from its exclusive rights to
manufacture and distribute
oxycodone. This is nearly three times
the revenue of Afghanistans entire
government. The success of such pill
mills is largely a result of Americas
fragmented and inecient legal
system that dates back two centuries
ago when states or provinces
mistrusted one another and a central
government. The national
government controls use of many
dangerous drugs, spending billions in
a war sieged to cut o the import of
drugs like heroin and cocaine.
Things are dierent with prescribed
drugs though. Those fall under the
aegis of the Food and Drug
Administration, but once a drug wins
FDA approval a doctor can prescribe it
pretty much at his or her own
discretion. Regulation of pain
management doctors is scarce. Even
now, a doctor can be a pain
management specialist by simply
paying $500, passing a criminal
background check, and lling out a
short application. In some states,
dispensing opiate derived drugs has
become a thriving industry.
The American nation, its doctors, and
the pharmaceutical industries have
created millions of drug dependent
victims who come streaming into
emergency rooms and morgues. The
latest gures available from the
National Institute on Drug Abuse
show that deaths from prescription
opioids outpace deaths from all illegal
drugs combined. In addition,
Americas Center for Disease Control
atly stated, Prescription drug abuse
is the fastest growing drug problem in
the United States. The increase in
unintentional drug overdose deaths in
recent years has been driven by a
class of prescription drugs called
opioid analgesics. - CDC Grand
Rounds: Prescription Drug Overdoses
a U.S. Epidemic.
In the past few years the DEA has
developed programs for spotting
inordinate drug prescriptions. This
has produced an impressive string of
arrests. In short, the federal
government was taking millions of
oxycodone doses out of the hands of
addicts. Soon, heroin became the
alternative. A report by the Mayo
Clinic conrmed emergency room
admission for heroin overdoses were
spiking between 2012 and 2014.
As pressure builds against
prescription pain killers, heroin use
increases. Between 2007 and 2012
world. The State Departments
International Narcotics Control
Strategy Report on Pakistan for 2014
was precise on its assessment:
Pakistan is the worlds
highest-volume transit corridor for
opiates and cannabis. Drug trackers
exploit the countrys porous borders
with Afghanistan and Iran, and the
UNODC estimates that 40 percent of
the worlds supply of heroin traverses
Pakistan en route to China, the Gulf
States, Africa, Europe and North
America, often transiting through
Pakistans seaports, airports, postal
routes and coastal areas.
In 2013 Pakistans law enforcement
agencies achieved signicant
narcotics seizures, though no major
drug trackers were ever arrested.
Budget limitations and ckle politics
will continue to hinder any
counter-narcotics eorts. In the
meantime, Pakistani law
enforcement agencies remain
preoccupied with more urgent
threats such as widespread political
violence and extremism.
So now, the worlds most prolic
opium producer sits next door to the
worlds most ecient drug transit
system. Neither Afghanistan nor
Pakistan is in a position to give the
US any aid with its rampant drug
problem. Indeed, both countries
could convincingly argue that the
United States caused the resurgence
of heroin by succumbing to its own
greed.
Sharing the same destiny they both
stand on opposite sides of the world.
The Southern Afghanistan farmer
walks through his poppy elds testing
the pods one by one to ensure his
livelihood; and the heroin addict is
left wondering whether or not this
dose will be the last. Each is equally
desperate for a change.
The addict and the farmer are both
caught at dierent ends of the same
lucrative and killer trap. They
simultaneously listen for the sounds
of impending danger overhead, and
they harken their ears for a song of
salvation. Instead, all they ever hear is
a prayer for the dead.
the number of heroin users in the
United States rose by nearly 300,000
according to the National Institute on
Drug Abuse. Todays heroin users are
no longer the urban, desperate, and
uneducated. Now, even suburban and
rural communities are reporting
signicant increase in heroin use.
Thanks to the new opportunities, India
has developed a thriving business
based on mail-order oxycodone and
oxycontin. The Indian company then
ships the drugs discretely by US Mail
or via some large private courier
company. This puts South Asia in the
cross hairs of American drug policy
even though Afghanistan has become
the worlds largest heroin producer.
Afghanistan is ghting to respond to
an escalating domestic opiate
addiction epidemic, where citizens
are familiar with drug money
laundering through shady nancial
networks.
In America the threats are more
muted. The United States Oce of
National Drug Control Policy
promised aid to Afghanistan for the
nding of alternate economic
sources. However, it closed the bill
with a cryptic promise: The United
States will continue to work with
and provide support to opium
poppy producing countries by
creating both incentives for opium
growers to participate in licit
livelihoods, while simultaneously
strengthening the disincentives to
participation in the narcotics industry
through increased interdiction and
other law enforcement and supply
reduction measures. The report did
not elaborate what those supply
reduction measures would be.
Not surprisingly, the United States
waged a war against marijuana over
the past few decades (in the United
States, almost all problems are solved
by a war of some kind). The country
patrolled its own ocean ports
incessantly. They dropped
plant-killing agents all over large
parts of Colombia and then arrested
or imprisoned foreign nationals who
had never even been there but who
allegedly conspired from their
home countries to break American
drug laws.
It is hard to nd anyone who ever died
from a marijuana overdose, but heroin
overdose crowds the countrys
hospitals. While studies show heroin
overdose admissions spiking, legal
medicinal use is not likely to be
something that the American
government will easily accept. In fact,
the United States Department of
International Narcotics Control
Strategy Report on Afghanistan for
2014 was rather dismissive on the
matter, stating: Illicit drug cultivation,
production, tracking, and
consumption ourish in Afghanistan,
particularly in parts of the south and
southwest where instability is high
and state institutions are weak or
non-existent. A symbiotic relationship
exists between the insurgency and
narcotics tracking in Afghanistan.
Trackers provide weapons, funding,
and other material support to the
insurgency in exchange for the
protection of drug trade routes, elds,
laboratories, and their organizations.
Some insurgent commanders engage
directly in drug tracking to nance
their operations. The narcotics trade
undermines government and rule of
law in all parts of the country where
poppy is cultivated and trackers
operate.
Afghanistan relies on assistance from
the international community in order
to implement its national
counter-narcotics strategies.
Meanwhile, America is just now
nishing up its twelve-year war in
Afghanistan. However, illicit drugs
production (particularly heroin),
ourishes there; and it would be no
dicult task for America to retrot
their new predator drones with
defoliant canisters or even Napalm.
The situation in Pakistan is equally
dismissive, but for a dierent reason:
Pakistan does not play a signicant
role in narcotics production. Instead,
it is like an expressway through which
drugs travel to other parts of the
MAY 2014 20
www. economi cafai r s. com. pk
KARACHI DIARIES
ast year MasterChef
Australia S04 contestant
came to town. Amina
Elshafei, described as an
unassuming young lady from
Sydney, had been brought in by the
Australian High Commissioners
oce and spread the joy of fusion
cooking as part of her good-will
mission. Around the same time
unconrmed rumors that
MasterChef was headed to Pakistan
were oating around. By April 2014,
the rumors had ocially been laid to
rest.
MasterChef Pakistan is set to go on
air by 3rd May 2014. The press
conference in AVARI (Karachi) threw
together an elegant presentation
topped o by a divine hi-tea. The
MasterChef franchise is already a
household favorite, and makes
everyone a judge of culinary
prowess and the lead authority on
cuisine. Sidra Iqbal, the host for the
evening, had also noted this
amusing trend, listing Pakistani food
as the ultimate source of drama.
His Excellency, the Australian High
Commissioner to Pakistan, Peter
Heyward while talking about the
original MasterChef and its growing
popularity in Asia remarked on its
tendency to bring contestants
together despite the stark looking
premise - slice & dice your way to
the top.
MasterChef Australia, which
expanded its viewership, also gave
people something / someone to root
for, he observed; everyone had
favorites. Its Pakistani counterpart
comes arrayed with sponsorships
and potential.
A Reality TV import inevitably ups
the ante and raises the bar. The
winner gets to walk away with 5 Rs.
million cash, a cook book deal and
the title of MasterChef Pakistan. It
is admittedly an ambitious
undertaking and he for once was
keen to see who will take the crown.
Along the way came some sneak
peak footage of auditions in major
cities and a look at the judges -
Khurrum Awan, Executive Assistant
Manager Food and beverages
Mvenpick Hotel, Chef Zakir and
Chef Mehboob.
The project got o the ground 9
months ago, had a grueling 18 hour
schedule, and unearthed a talent
pool supposedly worthy of the
MasterChef universe. Ahmer Khan,
Head of Programming at URDU1 rst
claried that he and his team had
actually lost weight during
production, and shared some
interesting misconceptions about
their own countrymen (and women).
It had something to with Pakistanis
love for food which was restricted to
eating, and not cooking. Or so they
thought. The goras disagreed;
prepare to be amazed by your own
L
c
o
m
e
s
t
o
PETER HEYWORTH
was their sage advice. And they
were.
Ahmer & co. would discover people
who could cook beyond traditional
handis / niharis, and were skilled in
creating items they hadnt come
across in local restaurants. The team
was impressed by the talent
discovered in their own backyard,
and promised great things in store
for the viewers.
Mohammad Urwa, the 7UP rep. in a
speech / product placement pitch,
explained how well matched these
two brands were and hoped that
MasterChef would change the way
reality cooking shows are perceived
in Pakistan. The quest to nd the
elusive MasterChef will also be a
test of the producers ability to
adhere to the exacting standards
demanded by reality television.
MasterChef Pakistan is a
production of Shine360 and URDU1
and has been sponsored by Ariel,
Knorr, Shan Foods and of course
7-UP. The event was managed /
moderated by Sidra Iqbal, PR
provided by Fathma Amir Status
pro 360.
housands of Afghani,
Pakistani, and Central
American farmers who are
now slicing open millions of
acres of poppy pods, harvesting raw
opium - the rst step in heroin
production in the developing world.
Since heroin is a farmers livelihood
and heroin is an addicts life, both are
caught in the middle of an American
drug policy that is at war with itself.
You see, American pharmacology
companies have created millions of
drug-dependent people by
prescribing them addictive painkillers
made with opiates derived from
Afghanistan and Pakistan. Meanwhile,
the addiction rehabilitation eorts in
America have been cut o or
drastically reduced to save the
countrys money. Now, the desperate
are turning to heroin for solace, as the
most powerful nation on earth is
beginning to look like it might bite the
hand that feeds it.
Americas drug policy spins on an axis
of opiates. For centuries mankind has
used heroin to treat pain, although it
currently has no lawful medical use in
the United States. In countries such as
the UK and the Netherlands, doctors
prescribe heroin to relieve the pain of
trauma, post-surgery discomfort, end
stage cancer, cesarean sections, and
even heart attacks. Some physicians
even prefer heroin over morphine
because it is more fat soluble and can
reach the target site quicker. In the
United States, however, its a dierent
story.
Around 2010, small pain
management clinics started popping
up in America. These makeshift clinics
oered no beds, exam tables,
medicines, or testing tools and were
little more than doctors sitting behind
tables selling prescriptions with a
minimum sta. The more money the
patient had, the more drugs they got.
In a country where capitalism is the
closest thing to a moral consensus,
making money often seems like the
only thing to do. Indeed, the business
is cash and the books are sloppy.
In 2012, the American company,
Actavis, grossed $5.9 billion in prots
from its exclusive rights to
manufacture and distribute
oxycodone. This is nearly three times
the revenue of Afghanistans entire
government. The success of such pill
mills is largely a result of Americas
fragmented and inecient legal
system that dates back two centuries
ago when states or provinces
mistrusted one another and a central
government. The national
government controls use of many
dangerous drugs, spending billions in
a war sieged to cut o the import of
drugs like heroin and cocaine.
Things are dierent with prescribed
drugs though. Those fall under the
aegis of the Food and Drug
Administration, but once a drug wins
FDA approval a doctor can prescribe it
pretty much at his or her own
discretion. Regulation of pain
management doctors is scarce. Even
now, a doctor can be a pain
management specialist by simply
paying $500, passing a criminal
background check, and lling out a
short application. In some states,
dispensing opiate derived drugs has
become a thriving industry.
The American nation, its doctors, and
the pharmaceutical industries have
created millions of drug dependent
victims who come streaming into
emergency rooms and morgues. The
latest gures available from the
National Institute on Drug Abuse
show that deaths from prescription
opioids outpace deaths from all illegal
drugs combined. In addition,
Americas Center for Disease Control
atly stated, Prescription drug abuse
is the fastest growing drug problem in
the United States. The increase in
unintentional drug overdose deaths in
recent years has been driven by a
class of prescription drugs called
opioid analgesics. - CDC Grand
Rounds: Prescription Drug Overdoses
a U.S. Epidemic.
In the past few years the DEA has
developed programs for spotting
inordinate drug prescriptions. This
has produced an impressive string of
arrests. In short, the federal
government was taking millions of
oxycodone doses out of the hands of
addicts. Soon, heroin became the
alternative. A report by the Mayo
Clinic conrmed emergency room
admission for heroin overdoses were
spiking between 2012 and 2014.
As pressure builds against
prescription pain killers, heroin use
increases. Between 2007 and 2012
world. The State Departments
International Narcotics Control
Strategy Report on Pakistan for 2014
was precise on its assessment:
Pakistan is the worlds
highest-volume transit corridor for
opiates and cannabis. Drug trackers
exploit the countrys porous borders
with Afghanistan and Iran, and the
UNODC estimates that 40 percent of
the worlds supply of heroin traverses
Pakistan en route to China, the Gulf
States, Africa, Europe and North
America, often transiting through
Pakistans seaports, airports, postal
routes and coastal areas.
In 2013 Pakistans law enforcement
agencies achieved signicant
narcotics seizures, though no major
drug trackers were ever arrested.
Budget limitations and ckle politics
will continue to hinder any
counter-narcotics eorts. In the
meantime, Pakistani law
enforcement agencies remain
preoccupied with more urgent
threats such as widespread political
violence and extremism.
So now, the worlds most prolic
opium producer sits next door to the
worlds most ecient drug transit
system. Neither Afghanistan nor
Pakistan is in a position to give the
US any aid with its rampant drug
problem. Indeed, both countries
could convincingly argue that the
United States caused the resurgence
of heroin by succumbing to its own
greed.
Sharing the same destiny they both
stand on opposite sides of the world.
The Southern Afghanistan farmer
walks through his poppy elds testing
the pods one by one to ensure his
livelihood; and the heroin addict is
left wondering whether or not this
dose will be the last. Each is equally
desperate for a change.
The addict and the farmer are both
caught at dierent ends of the same
lucrative and killer trap. They
simultaneously listen for the sounds
of impending danger overhead, and
they harken their ears for a song of
salvation. Instead, all they ever hear is
a prayer for the dead.
the number of heroin users in the
United States rose by nearly 300,000
according to the National Institute on
Drug Abuse. Todays heroin users are
no longer the urban, desperate, and
uneducated. Now, even suburban and
rural communities are reporting
signicant increase in heroin use.
Thanks to the new opportunities, India
has developed a thriving business
based on mail-order oxycodone and
oxycontin. The Indian company then
ships the drugs discretely by US Mail
or via some large private courier
company. This puts South Asia in the
cross hairs of American drug policy
even though Afghanistan has become
the worlds largest heroin producer.
Afghanistan is ghting to respond to
an escalating domestic opiate
addiction epidemic, where citizens
are familiar with drug money
laundering through shady nancial
networks.
In America the threats are more
muted. The United States Oce of
National Drug Control Policy
promised aid to Afghanistan for the
nding of alternate economic
sources. However, it closed the bill
with a cryptic promise: The United
States will continue to work with
and provide support to opium
poppy producing countries by
creating both incentives for opium
growers to participate in licit
livelihoods, while simultaneously
strengthening the disincentives to
participation in the narcotics industry
through increased interdiction and
other law enforcement and supply
reduction measures. The report did
not elaborate what those supply
reduction measures would be.
Not surprisingly, the United States
waged a war against marijuana over
the past few decades (in the United
States, almost all problems are solved
by a war of some kind). The country
patrolled its own ocean ports
incessantly. They dropped
plant-killing agents all over large
parts of Colombia and then arrested
or imprisoned foreign nationals who
had never even been there but who
allegedly conspired from their
home countries to break American
drug laws.
It is hard to nd anyone who ever died
from a marijuana overdose, but heroin
overdose crowds the countrys
hospitals. While studies show heroin
overdose admissions spiking, legal
medicinal use is not likely to be
something that the American
government will easily accept. In fact,
the United States Department of
International Narcotics Control
Strategy Report on Afghanistan for
2014 was rather dismissive on the
matter, stating: Illicit drug cultivation,
production, tracking, and
consumption ourish in Afghanistan,
particularly in parts of the south and
southwest where instability is high
and state institutions are weak or
non-existent. A symbiotic relationship
exists between the insurgency and
narcotics tracking in Afghanistan.
Trackers provide weapons, funding,
and other material support to the
insurgency in exchange for the
protection of drug trade routes, elds,
laboratories, and their organizations.
Some insurgent commanders engage
directly in drug tracking to nance
their operations. The narcotics trade
undermines government and rule of
law in all parts of the country where
poppy is cultivated and trackers
operate.
Afghanistan relies on assistance from
the international community in order
to implement its national
counter-narcotics strategies.
Meanwhile, America is just now
nishing up its twelve-year war in
Afghanistan. However, illicit drugs
production (particularly heroin),
ourishes there; and it would be no
dicult task for America to retrot
their new predator drones with
defoliant canisters or even Napalm.
The situation in Pakistan is equally
dismissive, but for a dierent reason:
Pakistan does not play a signicant
role in narcotics production. Instead,
it is like an expressway through which
drugs travel to other parts of the
ast year MasterChef
Australia S04 contestant
came to town. Amina
Elshafei, described as an
unassuming young lady from
Sydney, had been brought in by the
Australian High Commissioners
oce and spread the joy of fusion
cooking as part of her good-will
mission. Around the same time
unconrmed rumors that
MasterChef was headed to Pakistan
were oating around. By April 2014,
the rumors had ocially been laid to
rest.
MasterChef Pakistan is set to go on
air by 3rd May 2014. The press
conference in AVARI (Karachi) threw
together an elegant presentation
topped o by a divine hi-tea. The
MasterChef franchise is already a
household favorite, and makes
everyone a judge of culinary
prowess and the lead authority on
cuisine. Sidra Iqbal, the host for the
evening, had also noted this
amusing trend, listing Pakistani food
as the ultimate source of drama.
His Excellency, the Australian High
Commissioner to Pakistan, Peter
Heyward while talking about the
original MasterChef and its growing
popularity in Asia remarked on its
tendency to bring contestants
together despite the stark looking
premise - slice & dice your way to
the top.
MasterChef Australia, which
expanded its viewership, also gave
people something / someone to root
for, he observed; everyone had
favorites. Its Pakistani counterpart
comes arrayed with sponsorships
and potential.
A Reality TV import inevitably ups
the ante and raises the bar. The
winner gets to walk away with 5 Rs.
million cash, a cook book deal and
the title of MasterChef Pakistan. It
is admittedly an ambitious
undertaking and he for once was
keen to see who will take the crown.
Along the way came some sneak
peak footage of auditions in major
cities and a look at the judges -
Khurrum Awan, Executive Assistant
Manager Food and beverages
Mvenpick Hotel, Chef Zakir and
Chef Mehboob.
The project got o the ground 9
months ago, had a grueling 18 hour
schedule, and unearthed a talent
pool supposedly worthy of the
MasterChef universe. Ahmer Khan,
Head of Programming at URDU1 rst
claried that he and his team had
actually lost weight during
production, and shared some
interesting misconceptions about
their own countrymen (and women).
It had something to with Pakistanis
love for food which was restricted to
eating, and not cooking. Or so they
thought. The goras disagreed;
prepare to be amazed by your own
MAY 2014 21
KARACHI DIARIES
was their sage advice. And they
were.
Ahmer & co. would discover people
who could cook beyond traditional
handis / niharis, and were skilled in
creating items they hadnt come
across in local restaurants. The team
was impressed by the talent
discovered in their own backyard,
and promised great things in store
for the viewers.
Mohammad Urwa, the 7UP rep. in a
speech / product placement pitch,
explained how well matched these
two brands were and hoped that
MasterChef would change the way
reality cooking shows are perceived
in Pakistan. The quest to nd the
elusive MasterChef will also be a
test of the producers ability to
adhere to the exacting standards
demanded by reality television.
MasterChef Pakistan is a
production of Shine360 and URDU1
and has been sponsored by Ariel,
Knorr, Shan Foods and of course
7-UP. The event was managed /
moderated by Sidra Iqbal, PR
provided by Fathma Amir Status
pro 360.
AFRAH JAMAL
The writer is a correspondent for
Monthly Economic Aairs and a
columnist for Daily Times. She can
be reached at
afrahjh@hotmail.com
and on twitter @Afrahjh
Sidra Iqbal moderator Fathma Amir (Statuspro)
The Australian crew
Imrana Maqsood (side profle)
The Judges
www. economi cafai r s. com. pk
member Uzma
Sabeen. Besides, Zambeel
Dramatic Readings, Dastango
Darmatic Readings, Qissa Farosh
Dramatic Readings and
KahaniWalay (stories for children)
presented their marvelous creative
work in their respective modes
of presentation.
MAY 2014 22
www. economi cafai r s. com. pk
ENTERTAINMENT
ollowing its traditions,
National Academy of
Performing Artists (NAPA)
successfully hosted NAPA
International Theatre Festival
2014,adding colors to the citys
ambiance and socio-cultural
horizon. The artistic gala that kicked
o on 4th March kept the whole
citys aura artistic and literary for
nearly three weeks and concluded
on 27th March with an enthusiastic,
vibrant and artistic ceremony.
Besides NAPAs own theatre groups,
Ajoka theatre from Lahore and other
teams from Karachi, theatre crews
from Nepal, Germany, England and
India, including Bollywood legend
Naseerudin Shah landed in the city
to demonstrate their admirable
performance and appreciable talent
through impressive scripts, betting
set designing,perfect direction,
heart touching poetry of body and
memorable acting. Apart from 12
artistic plays including storytelling,
dramatic readings and dance
movements on week days, a
children-play Ali Baba
ChaaleesChor and special story
telling series was presented for the
kids on weekends. It was thus of
course a family festival.
The festival decidedly oered a
marvelous spree of well-scripted,
skillfully directed and artistically
presented plays and amongst all
these, Indias motley theatre (run by
legendary actor Naseeruddin Shah)
and Lahores AjokaTheaters (run by
Madeeha Gouher and Shahid
Nadeem) were highly admired,
appreciated and discussed. During
the performances of both these
groups, the art-lovers thronged the
NAPA auditorium to enjoy the class
of work.
Motley theatres adopted the way of
storytelling to drift the audience
away from the auditorium and to get
them immersed into the times and
settings of Ismat Chughtais stories.
Naseerudin Shah, his wife and a
well-known face, Ratna Pathak and
his daughter Heeba Shah related
three short stories, Chui Mui,
Mughal Bacha and Ghar WaaliinS a
performing manner using eective
intonation patterns, betting
gestures and body movements.
Naseeruddin Shah, being the
director of the overall show, had the
longest part and it goes without
saying that he kept the audience
engaged till the moment he left the
stage. Ajoka theatres crew
members, mostly school going
teenagers proved that art is not
necessarily learnt through formal
training or academic studies but is
developed internally in your mind,
heart and soul. They provided
performing arts students of Karachi
a great opportunity to learn from
them.
The rst Punjabi play by Ajoka
Theatres Lahore in connection to
the festival was Mera Rang Day
Basanti Chola that is, as the title
leads, the story of legendary
freedom ghter and comrade
Bhagat Singh. The play was Ajokas
tribute to this great son of the
Punjab. The play laid bare some
hitherto less-known historical facts
relating to Bhagat Singhs ideology,
his trial and its
mysterious-cum-mystic links to the
case of Nawab Ahmad Khan Kasuri
and Z.A. Bhutto. The second
consecutive artistic venture of the
great team of Lahoris in connection
to NAPA International Theatre
Festival that made the audience
spell-bound was Lo Phir Basant
Ayee. Like their previous play, this
too was a marvelous presentation
highly appreciated by the audience.
The play was mainly in Punjabi with
occasional amalgamation of Urdu.
Both the artistic ventures were
decidedly reective of sublime art
with regard to script, plot,
characterization, acting and music.
F
NAPAs Napa Repertory Theatre
(NRT) presented four plays; the
opening play of the festival was the
classic masterpiece Oedipus Rex.
The graduating class presented this
famous Greek play created by
Sophocles in Urdu in a
contemporary setting without
compromising any of its original
dramatic content under the
direction of Zain Ahmed. The
second one Blah and Blah was
nicely directed by Sunil Shankar and
performed by Sunil Shankar himself
along with the well-known
choreographer Joshinder Chaggar. It
was a dance drama, mostly
depending on body movements that
spin around the intimate human
emotions, feelings, responses and
relationships. Kuttay was the third
venture in this series with a political
theme and it was directed by
Meesam Naqvi. The story revolves
around the struggle of a liberating
army that wishes to subjugate the
people it purports to liberate. The
fourth one Raagni, an adaptation
of Dorfmans play Death and the
Maiden served as the concluding
event of the festival. It was directed
by Fawad Khan and written by
Shoaib Hashmi. It was about the
limitations of human beings and
their heavy socio-political
responsibilities.
The Saltlake Mohnitharan group
from India presented the play
Raddi Bazzar which was a set of
three plays namely BaakiIthihas,
Paglaa Ghoda and EvamIndrajit.
This triangle of themes, directed by
Santanu Bose and penned down by
Badal Sircar, touched the delicate
fabric of human existence and the
feeling, sentiments and emotions
associated with them.
Princes & the Garden was
presented by Nepals Theatre
Village. The play was an adaptation
of Ravindranath Tagores famous
play Malini that revolves around
the strict monarchist system and the
breathing space that can be
provided by the philosophy of
Buddhism. It sheds light on human
emotions like fantasy, love, hatred
etc. it also questions the dilemma
and complexity of the
contemporary life of the common
man.
The London-based theatre group,
Fuel Theatre presented Black
T-shirt Collection in story-telling
mode, inspiring the audience with
touchy scenes imaginations. The
story spins around the two foster
brothers building a global T-shirt
brand. On their journey from a
market in Nigeria to a sweatshop in
China, Mathew and Mohammad
discover the consequences of
success. It was written and
performed by InuaEllams who is a
poet and graphic artist. His debut
play, The 14th Tale won Fringe First
Award at the Edinburgh Festival in
2009.
Germanys Brigel Gjoka group
presented Eksod that was
successfully and harmoniously
supported by music and
dance performance. Music
was composed by Nicola
Guzzaloca while dancers
were Mattia Gandini and
Brigel Gjoka. The play was
inspired by the Albanian
movie Rrethi I Kujtese
which reected
submission to the regime
and its strong impact on
the society. Without
entering into the narrative,
one just interrogates his
ownself during the process
to explore the possibility
of losing his memory - not
just losing it but having it
erased or removed by
force.
P a k i s t a n s
T e h r e e k - e - N i s w a n
presented an impressive
play Birjees Qadar
KaKunba directed by
SheemaKirmani. It was
adopted from Garcia
Lorcas The House of
Bernarda Alba which is an
uncanny but faithful
portrayal of the lives of a
vast majority of unmarried
girls living under the yoke
of brutally repressive
feudal male values in a
world dominated by
patriarchal system.
In special entertainment
sessions for kids over the
weekends, Ali Baba
Chalees Chor was performed. It
was based upon the traditional
famous story for children and was
scripted by Professor ShoaibHashmi
and directed by NAPAs faculty
THEATRE
FESTIVAL
graced the
city ambiance
ahrain, Kuwait, Oman,
Saudi Arabia, Qatar and
the UAE are the trading
block which form a
constellation known as the Gulf
States. The CCASG was established
25 May 1981. The Sultanate of
Oman and the Kingdom of Saudi
Arabia have an absolute monarchy.
The UAE has a federal monarchy.
Bahrain, Kuwait and Qatar have a
system of constitutional monarchy,
albeit Kuwait also supports a
parliamentary system of
governance. This constellation has
a strong showing within a country
comparison of GDP per capita on a
purchasing power parity basis
(using the metric of international
dollars). In 2013, Qatar was the
richest nation in the world with a
per capita GDP (PPP) of over
105,000 dollars. The UAE and
Kuwait are also rmly ensconced
within the top twenty.
Approximately one-third of
Western Europeans also live under
a monarchy form of governance.
The majority are Constitutional
monarchies, which means the head
of state is vastly limited in use of
executive at, or the monarch
declines to utilize the powers
invested in the oce by
convention. There are two
exceptions: Liechtenstein and the
Vatican City. The former, is
considered a semi-constitutional
monarchy due to the sway which
the prince still has on national
politics. The latter, is a theocratic
absolute elective monarchy. Public
opinion polls currently show a high
level of support for the families of
the monarchs and the role assumed
within modern society.
There is something that I know, and
I feel it deep within my bones.
Kingdoms do not last forever; at
personal lack as a
preferred course of
life; and many such
men still exist.
The beauty of
democracy is that in
truest form it allows
for an expansion of
human liberty.
From a place of
human liberty,
citizens can achieve
their highest potential. Happiness
is tightly tied to a universal triad:
freedom of religion, freedom of
expression and freedom of
conscience. Much of the
unhappiness which has been
expressed throughout this wintry
season known as the Arab Spring
has been directed against dynastic
forms of governance which lack the
variety which is noted within
non-linear systems. The systems
can show such minute changes that
they can be hard to detect. But the
change is there!
As Europeans moved toward
enlightenment in science, they also
moved toward enlightenment in
their religious beliefs. These subtle
shifts in perception sculpted the
constitutional monarchies which
exist today.
I stated earlier that kingdoms do
not last forever. Only the people
and their soil remain. The last
imperial dynasty of Russia was the
House of Romanov. It lasted from
1613-1917. My personal library
contains a lovely book: Royal
Russia: The Private Albums of the
Russian Imperial Family. The
selection is from the James Blair
Lovell archive with
accompanying text by Carol
Townend. The images are
stunning. But as with many
tumultuous events in history,
things change forever in a
moment of time. The princesses
died wearing the Romanov family
jewels sewn into their corsets. That,
of course, is the nature of political
chaos.
least not in original form. Only the
people and their soil remain. The
Gulf State dynasties may not
survive the century. Why do I write
such a startling thought? Perhaps it
is because I know there is
something within man's spirit
which craves freedom. He is born
with it and none can take it away.
This quest for expanded freedom in
my own life causes me to cling to
the motto used by Henry David
Thoreau as the opening salvo for
his pamphlet, Civil Disobedience:
That government is best which
governs least.
Good governance, mimics in great
part, non-linear systems found in
nature. The natural order of things
is meant to teach us how to manage
the practical nature of this business
of social contract between men.
In classical antiquity it was
believed that natural order was
based on a static existence. This
belief fed into the orthodoxy which
was propagated through the
religious state organs. A rm belief
that nature was static led to
doctrine which was also static and
increasingly stagnant. The sun
peeped across the horizon, was
seen to arc across the sky and
disappear as it ed the
tentacles of darkness. Truth was
based on observation. In the
truest sense, what could be
observed with the naked eye,
blinded all but the brave few.
Luckily the world of the unseen was
pondered by great men who took
even greater risks to pen their
thoughts. They took their scientic
gifts and liberally bequeathed
them to mankind. Galileo comes to
mind. His views on heliocentrism
were seen as a violation of the
Council of Trent. For his innovation,
he was sentenced to house arrest
for the remainder of his life.
We now understand that nature is
quite a bit more chaotic and
dynamic than the average human
ever imagined it to be. It is
nonlinear (or aperiodic) systems
which provide for such tremendous
variety in our universe. This
immense variety still submits to
mathematical rule, but the
expressive function can be
geometrically beautiful. Nonlinear
systems multiply uncertainty
because they never achieve a
steady state where they can
replicate themselves in exactly the
same manner. A world which is truly
changeless will soon cease to exist.
The same is true, for systems of
governance.
Good governance is meant to be
creative, expansive, and dare I say
it? It can be a bit chaotic too, when
it comes to opening up the process
to civilian participation in the
highest levels of government.
Problematic with the Gulf States
Constellation is the static and
stagnant nature of dynastic family
rule. Just as inbreeding increases
the likelihood of inherited
anomalies, ideological inbreeding
can also create unhealthy political
corpus. When looking at the GDP
(PPP) of the Gulf States it must be
remembered that a metric which
merely identies the capability to
acquire creature comforts does not
satisfy the greater drive for
freedom. History has
demonstrated a steady march of
the men who chose freedom with





member Uzma
Sabeen. Besides, Zambeel
Dramatic Readings, Dastango
Darmatic Readings, Qissa Farosh
Dramatic Readings and
KahaniWalay (stories for children)
presented their marvelous creative
work in their respective modes
of presentation.
ollowing its traditions,
National Academy of
Performing Artists (NAPA)
successfully hosted NAPA
International Theatre Festival
2014,adding colors to the citys
ambiance and socio-cultural
horizon. The artistic gala that kicked
o on 4th March kept the whole
citys aura artistic and literary for
nearly three weeks and concluded
on 27th March with an enthusiastic,
vibrant and artistic ceremony.
Besides NAPAs own theatre groups,
Ajoka theatre from Lahore and other
teams from Karachi, theatre crews
from Nepal, Germany, England and
India, including Bollywood legend
Naseerudin Shah landed in the city
to demonstrate their admirable
performance and appreciable talent
through impressive scripts, betting
set designing,perfect direction,
heart touching poetry of body and
memorable acting. Apart from 12
artistic plays including storytelling,
dramatic readings and dance
movements on week days, a
children-play Ali Baba
ChaaleesChor and special story
telling series was presented for the
kids on weekends. It was thus of
course a family festival.
The festival decidedly oered a
marvelous spree of well-scripted,
skillfully directed and artistically
presented plays and amongst all
these, Indias motley theatre (run by
legendary actor Naseeruddin Shah)
and Lahores AjokaTheaters (run by
Madeeha Gouher and Shahid
Nadeem) were highly admired,
appreciated and discussed. During
the performances of both these
groups, the art-lovers thronged the
NAPA auditorium to enjoy the class
of work.
Motley theatres adopted the way of
storytelling to drift the audience
away from the auditorium and to get
them immersed into the times and
settings of Ismat Chughtais stories.
Naseerudin Shah, his wife and a
well-known face, Ratna Pathak and
his daughter Heeba Shah related
three short stories, Chui Mui,
Mughal Bacha and Ghar WaaliinS a
performing manner using eective
intonation patterns, betting
gestures and body movements.
Naseeruddin Shah, being the
director of the overall show, had the
longest part and it goes without
saying that he kept the audience
engaged till the moment he left the
stage. Ajoka theatres crew
members, mostly school going
teenagers proved that art is not
necessarily learnt through formal
training or academic studies but is
developed internally in your mind,
heart and soul. They provided
performing arts students of Karachi
a great opportunity to learn from
them.
The rst Punjabi play by Ajoka
Theatres Lahore in connection to
the festival was Mera Rang Day
Basanti Chola that is, as the title
leads, the story of legendary
freedom ghter and comrade
Bhagat Singh. The play was Ajokas
tribute to this great son of the
Punjab. The play laid bare some
hitherto less-known historical facts
relating to Bhagat Singhs ideology,
his trial and its
mysterious-cum-mystic links to the
case of Nawab Ahmad Khan Kasuri
and Z.A. Bhutto. The second
consecutive artistic venture of the
great team of Lahoris in connection
to NAPA International Theatre
Festival that made the audience
spell-bound was Lo Phir Basant
Ayee. Like their previous play, this
too was a marvelous presentation
highly appreciated by the audience.
The play was mainly in Punjabi with
occasional amalgamation of Urdu.
Both the artistic ventures were
decidedly reective of sublime art
with regard to script, plot,
characterization, acting and music.
MAY 2014 23
www. economi cafai r s. com. pk
ENTERTAINMENT
NAPAs Napa Repertory Theatre
(NRT) presented four plays; the
opening play of the festival was the
classic masterpiece Oedipus Rex.
The graduating class presented this
famous Greek play created by
Sophocles in Urdu in a
contemporary setting without
compromising any of its original
dramatic content under the
direction of Zain Ahmed. The
second one Blah and Blah was
nicely directed by Sunil Shankar and
performed by Sunil Shankar himself
along with the well-known
choreographer Joshinder Chaggar. It
was a dance drama, mostly
depending on body movements that
spin around the intimate human
emotions, feelings, responses and
relationships. Kuttay was the third
venture in this series with a political
theme and it was directed by
Meesam Naqvi. The story revolves
around the struggle of a liberating
army that wishes to subjugate the
people it purports to liberate. The
fourth one Raagni, an adaptation
of Dorfmans play Death and the
Maiden served as the concluding
event of the festival. It was directed
by Fawad Khan and written by
Shoaib Hashmi. It was about the
limitations of human beings and
their heavy socio-political
responsibilities.
The Saltlake Mohnitharan group
from India presented the play
Raddi Bazzar which was a set of
three plays namely BaakiIthihas,
Paglaa Ghoda and EvamIndrajit.
This triangle of themes, directed by
Santanu Bose and penned down by
Badal Sircar, touched the delicate
fabric of human existence and the
feeling, sentiments and emotions
associated with them.
Princes & the Garden was
presented by Nepals Theatre
Village. The play was an adaptation
of Ravindranath Tagores famous
play Malini that revolves around
the strict monarchist system and the
breathing space that can be
provided by the philosophy of
Buddhism. It sheds light on human
emotions like fantasy, love, hatred
etc. it also questions the dilemma
and complexity of the
contemporary life of the common
man.
The London-based theatre group,
Fuel Theatre presented Black
T-shirt Collection in story-telling
mode, inspiring the audience with
touchy scenes imaginations. The
story spins around the two foster
brothers building a global T-shirt
brand. On their journey from a
market in Nigeria to a sweatshop in
China, Mathew and Mohammad
discover the consequences of
success. It was written and
performed by InuaEllams who is a
poet and graphic artist. His debut
play, The 14th Tale won Fringe First
Award at the Edinburgh Festival in
2009.
Germanys Brigel Gjoka group
presented Eksod that was
successfully and harmoniously
supported by music and
dance performance. Music
was composed by Nicola
Guzzaloca while dancers
were Mattia Gandini and
Brigel Gjoka. The play was
inspired by the Albanian
movie Rrethi I Kujtese
which reected
submission to the regime
and its strong impact on
the society. Without
entering into the narrative,
one just interrogates his
ownself during the process
to explore the possibility
of losing his memory - not
just losing it but having it
erased or removed by
force.
P a k i s t a n s
T e h r e e k - e - N i s w a n
presented an impressive
play Birjees Qadar
KaKunba directed by
SheemaKirmani. It was
adopted from Garcia
Lorcas The House of
Bernarda Alba which is an
uncanny but faithful
portrayal of the lives of a
vast majority of unmarried
girls living under the yoke
of brutally repressive
feudal male values in a
world dominated by
patriarchal system.
In special entertainment
sessions for kids over the
weekends, Ali Baba
Chalees Chor was performed. It
was based upon the traditional
famous story for children and was
scripted by Professor ShoaibHashmi
and directed by NAPAs faculty
MUTTAHIR AHMED KHAN
The writer is a Pakistan-based
educationist, writer, journalist, analyst
and a psychotherapist. He can be
reached at Muttahir_khan@hotmail.com
ahrain, Kuwait, Oman,
Saudi Arabia, Qatar and
the UAE are the trading
block which form a
constellation known as the Gulf
States. The CCASG was established
25 May 1981. The Sultanate of
Oman and the Kingdom of Saudi
Arabia have an absolute monarchy.
The UAE has a federal monarchy.
Bahrain, Kuwait and Qatar have a
system of constitutional monarchy,
albeit Kuwait also supports a
parliamentary system of
governance. This constellation has
a strong showing within a country
comparison of GDP per capita on a
purchasing power parity basis
(using the metric of international
dollars). In 2013, Qatar was the
richest nation in the world with a
per capita GDP (PPP) of over
105,000 dollars. The UAE and
Kuwait are also rmly ensconced
within the top twenty.
Approximately one-third of
Western Europeans also live under
a monarchy form of governance.
The majority are Constitutional
monarchies, which means the head
of state is vastly limited in use of
executive at, or the monarch
declines to utilize the powers
invested in the oce by
convention. There are two
exceptions: Liechtenstein and the
Vatican City. The former, is
considered a semi-constitutional
monarchy due to the sway which
the prince still has on national
politics. The latter, is a theocratic
absolute elective monarchy. Public
opinion polls currently show a high
level of support for the families of
the monarchs and the role assumed
within modern society.
There is something that I know, and
I feel it deep within my bones.
Kingdoms do not last forever; at
personal lack as a
preferred course of
life; and many such
men still exist.
The beauty of
democracy is that in
truest form it allows
for an expansion of
human liberty.
From a place of
human liberty,
citizens can achieve
their highest potential. Happiness
is tightly tied to a universal triad:
freedom of religion, freedom of
expression and freedom of
conscience. Much of the
unhappiness which has been
expressed throughout this wintry
season known as the Arab Spring
has been directed against dynastic
forms of governance which lack the
variety which is noted within
non-linear systems. The systems
can show such minute changes that
they can be hard to detect. But the
change is there!
As Europeans moved toward
enlightenment in science, they also
moved toward enlightenment in
their religious beliefs. These subtle
shifts in perception sculpted the
constitutional monarchies which
exist today.
I stated earlier that kingdoms do
not last forever. Only the people
and their soil remain. The last
imperial dynasty of Russia was the
House of Romanov. It lasted from
1613-1917. My personal library
contains a lovely book: Royal
Russia: The Private Albums of the
Russian Imperial Family. The
selection is from the James Blair
Lovell archive with
accompanying text by Carol
Townend. The images are
stunning. But as with many
tumultuous events in history,
things change forever in a
moment of time. The princesses
died wearing the Romanov family
jewels sewn into their corsets. That,
of course, is the nature of political
chaos.
least not in original form. Only the
people and their soil remain. The
Gulf State dynasties may not
survive the century. Why do I write
such a startling thought? Perhaps it
is because I know there is
something within man's spirit
which craves freedom. He is born
with it and none can take it away.
This quest for expanded freedom in
my own life causes me to cling to
the motto used by Henry David
Thoreau as the opening salvo for
his pamphlet, Civil Disobedience:
That government is best which
governs least.
Good governance, mimics in great
part, non-linear systems found in
nature. The natural order of things
is meant to teach us how to manage
the practical nature of this business
of social contract between men.
In classical antiquity it was
believed that natural order was
based on a static existence. This
belief fed into the orthodoxy which
was propagated through the
religious state organs. A rm belief
that nature was static led to
doctrine which was also static and
increasingly stagnant. The sun
peeped across the horizon, was
seen to arc across the sky and
disappear as it ed the
tentacles of darkness. Truth was
based on observation. In the
truest sense, what could be
observed with the naked eye,
blinded all but the brave few.
Luckily the world of the unseen was
pondered by great men who took
even greater risks to pen their
thoughts. They took their scientic
gifts and liberally bequeathed
them to mankind. Galileo comes to
mind. His views on heliocentrism
were seen as a violation of the
Council of Trent. For his innovation,
he was sentenced to house arrest
for the remainder of his life.
We now understand that nature is
quite a bit more chaotic and
dynamic than the average human
ever imagined it to be. It is
nonlinear (or aperiodic) systems
which provide for such tremendous
variety in our universe. This
immense variety still submits to
mathematical rule, but the
expressive function can be
geometrically beautiful. Nonlinear
systems multiply uncertainty
because they never achieve a
steady state where they can
replicate themselves in exactly the
same manner. A world which is truly
changeless will soon cease to exist.
The same is true, for systems of
governance.
Good governance is meant to be
creative, expansive, and dare I say
it? It can be a bit chaotic too, when
it comes to opening up the process
to civilian participation in the
highest levels of government.
Problematic with the Gulf States
Constellation is the static and
stagnant nature of dynastic family
rule. Just as inbreeding increases
the likelihood of inherited
anomalies, ideological inbreeding
can also create unhealthy political
corpus. When looking at the GDP
(PPP) of the Gulf States it must be
remembered that a metric which
merely identies the capability to
acquire creature comforts does not
satisfy the greater drive for
freedom. History has
demonstrated a steady march of
the men who chose freedom with
MAY 2014 24
www. economi cafai r s. com. pk
INTERVIEW
The tricks of the TRADE
Qaiser Ahmed Shaikh is one of the wealthiest business men in Pakistan
and the Convener of Pakistan-South Korea friendship group of the
National Assembly. His profle is huge, his work abundant. He is a member
of the National Assembly, Policy Board for FBR, Advisory Commitee of the
Planning Commission, Standing Commitee of National Assembly for
Finance and Revenue, and Industry, Board of Governors Fast National
University and the Board of Trustees, Chiniot Anjuman-e-Islamia. Also
amongst his range of accomplishments is the Presidency of Karachi
Chamber of Commerce and Industry from the year 1987-88.
ahrain, Kuwait, Oman,
Saudi Arabia, Qatar and
the UAE are the trading
block which form a
constellation known as the Gulf
States. The CCASG was established
25 May 1981. The Sultanate of
Oman and the Kingdom of Saudi
Arabia have an absolute monarchy.
The UAE has a federal monarchy.
Bahrain, Kuwait and Qatar have a
system of constitutional monarchy,
albeit Kuwait also supports a
parliamentary system of
governance. This constellation has
a strong showing within a country
comparison of GDP per capita on a
purchasing power parity basis
(using the metric of international
dollars). In 2013, Qatar was the
richest nation in the world with a
per capita GDP (PPP) of over
105,000 dollars. The UAE and
Kuwait are also rmly ensconced
within the top twenty.
Approximately one-third of
Western Europeans also live under
a monarchy form of governance.
The majority are Constitutional
monarchies, which means the head
of state is vastly limited in use of
executive at, or the monarch
declines to utilize the powers
invested in the oce by
convention. There are two
exceptions: Liechtenstein and the
Vatican City. The former, is
considered a semi-constitutional
monarchy due to the sway which
the prince still has on national
politics. The latter, is a theocratic
absolute elective monarchy. Public
opinion polls currently show a high
level of support for the families of
the monarchs and the role assumed
within modern society.
There is something that I know, and
I feel it deep within my bones.
Kingdoms do not last forever; at
personal lack as a
preferred course of
life; and many such
men still exist.
The beauty of
democracy is that in
truest form it allows
for an expansion of
human liberty.
From a place of
human liberty,
citizens can achieve
their highest potential. Happiness
is tightly tied to a universal triad:
freedom of religion, freedom of
expression and freedom of
conscience. Much of the
unhappiness which has been
expressed throughout this wintry
season known as the Arab Spring
has been directed against dynastic
forms of governance which lack the
variety which is noted within
non-linear systems. The systems
can show such minute changes that
they can be hard to detect. But the
change is there!
As Europeans moved toward
enlightenment in science, they also
moved toward enlightenment in
their religious beliefs. These subtle
shifts in perception sculpted the
constitutional monarchies which
exist today.
I stated earlier that kingdoms do
not last forever. Only the people
and their soil remain. The last
imperial dynasty of Russia was the
House of Romanov. It lasted from
1613-1917. My personal library
contains a lovely book: Royal
Russia: The Private Albums of the
Russian Imperial Family. The
selection is from the James Blair
Lovell archive with
accompanying text by Carol
Townend. The images are
stunning. But as with many
tumultuous events in history,
things change forever in a
moment of time. The princesses
died wearing the Romanov family
jewels sewn into their corsets. That,
of course, is the nature of political
chaos.
least not in original form. Only the
people and their soil remain. The
Gulf State dynasties may not
survive the century. Why do I write
such a startling thought? Perhaps it
is because I know there is
something within man's spirit
which craves freedom. He is born
with it and none can take it away.
This quest for expanded freedom in
my own life causes me to cling to
the motto used by Henry David
Thoreau as the opening salvo for
his pamphlet, Civil Disobedience:
That government is best which
governs least.
Good governance, mimics in great
part, non-linear systems found in
nature. The natural order of things
is meant to teach us how to manage
the practical nature of this business
of social contract between men.
In classical antiquity it was
believed that natural order was
based on a static existence. This
belief fed into the orthodoxy which
was propagated through the
religious state organs. A rm belief
that nature was static led to
doctrine which was also static and
increasingly stagnant. The sun
peeped across the horizon, was
seen to arc across the sky and
disappear as it ed the
tentacles of darkness. Truth was
based on observation. In the
truest sense, what could be
observed with the naked eye,
blinded all but the brave few.
Luckily the world of the unseen was
pondered by great men who took
even greater risks to pen their
thoughts. They took their scientic
gifts and liberally bequeathed
them to mankind. Galileo comes to
mind. His views on heliocentrism
were seen as a violation of the
Council of Trent. For his innovation,
he was sentenced to house arrest
for the remainder of his life.
We now understand that nature is
quite a bit more chaotic and
dynamic than the average human
ever imagined it to be. It is
nonlinear (or aperiodic) systems
which provide for such tremendous
variety in our universe. This
immense variety still submits to
mathematical rule, but the
expressive function can be
geometrically beautiful. Nonlinear
systems multiply uncertainty
because they never achieve a
steady state where they can
replicate themselves in exactly the
same manner. A world which is truly
changeless will soon cease to exist.
The same is true, for systems of
governance.
Good governance is meant to be
creative, expansive, and dare I say
it? It can be a bit chaotic too, when
it comes to opening up the process
to civilian participation in the
highest levels of government.
Problematic with the Gulf States
Constellation is the static and
stagnant nature of dynastic family
rule. Just as inbreeding increases
the likelihood of inherited
anomalies, ideological inbreeding
can also create unhealthy political
corpus. When looking at the GDP
(PPP) of the Gulf States it must be
remembered that a metric which
merely identies the capability to
acquire creature comforts does not
satisfy the greater drive for
freedom. History has
demonstrated a steady march of
the men who chose freedom with
n the year 1962, Shaikh was a
young boy going to school in his
hometown Chiniot, a city in
Punjab known for furniture
manufacturing and export. As life
sped forward, he established
himself as a successful businessman
and politician. His fame evolved
from his quest for politics as he
contested elections thrice from a
rural dominated constituency
against traditional feudal
politicians. He rst contested in the
1993 general elections from NA-86
(Chiniot-I). It was his second attempt
in 1997, when he topped elections
as an independent candidate from
the same constituency and won a
seat in the National Assembly.
Then again in 2013, he contested in
the general elections as a PML-N
candidate and considering the
highest number of votes he
obtained, he won amongst his
contenders with a considerable
victory. He bagged 77,512 votes,
while Zulqar Ali Shah of PPP
became the runner up with the
second largest number of votes
(4,628).
Shaikh is also the Chief Executive
Ocer of LG Petrochemicals (Pvt)
Ltd, located in Karachi which is a
joint venture between Qaiser
Brothers Pakistan and LG,
International Corporation, the
leading conglomerate of Korea. This
chemical processing plant
manufactures DOP and Butyl
Acetate. The installed capacity of
the plant is 25000 metric tons per
annum. It has an annual turnover of
USD 25 million, which exceeds the
total plant cost of USD 9 million,
from local business and export to
Afghanistan, India, Bangladesh and
UAE.
My father and grandfather began
their business in the year 1946 in
Karachi which makes up around
68 years in the city. While
talking about Karachi, he
mentioned that the time had
favored law and order in Karachi a
few decades ago.
The setting methinks is simple,
not lush as your mind reckons as
it pictures the Parliament Lodges.
Lesser spondulicks have been
spent to make up for his mediocre
living style. A news channel is being
played over the TV. There he sits all
decked up in a black suit and white
shirt. He has a streak of modesty and
tranquility. Because of his MA
economics degree and exposure to
both business and politics, he
expresses gladness for a little chit
chat on economy and investment.
E.A How would you rate the
environment for doing business in
Pakistan? Would you underline some
of bureaucratic hurdles which the
local business community is facing?
The virgin economy of Pakistan has
various potentials in stock for the
foreign investors owing to the
unexplored and unutilized resources.
However the scourge of red-tapism
stands as a big hurdle in the way of
investment inow from abroad. The
foreign investors complain when the
clocks tick time away as les move
from one -desk to another and they
keep moving. The investor goes away
along with his money by the time our
clerks clear his les.
Corruption has paved its way into
every department, beginning from
customs to the investment board
which supposedly has to facilitate
the investors. When I say all
departments, no exception is there.
Even registration for business, tax
and utility services has been made
dicult by the delayed procedures
and zero dedication of the
government employees.
I would say the bureaucratic aptitude
and law and order situation stand as
the biggest hurdles in the way of
investment inows. I think all the
successive governments tried to get
over these impediments but they
failed because these issues have
become a part of our living style and
habits.
Things at the higher level have seen
improvement in terms of corruption
but check and balances need to be
established in the lower ranks of
government system. Although there
has been around 6% increase in
foreign inows since Nawaz
government has taken charge.
E.A What would be your suggestion to
ease the business environment in
Pakistan?
The dening challenge for us is to
make systems here in Pakistan.
Computerization of procedures
could be very helpful in reducing the
element of corruption and
red-tapism. Like, if the manual
operations for land registration are
replaced with computerized
systems, that would enable
transparency. The bureaucrats
shouldnt think they are the masters.
New generations should be taught
that they are to serve the nation and
not to create hurdles. The
government shouldnt meddle in the
business aairs so that the
bureaucratic hurdles are curbed.
E.A You are also a part of the
government. Tell us about some of
the major steps and incentives that
the government has oered to
attract investment?
There are two kinds of incentives;
a favorable tari system and
continuation of policies. The
government is continuing good
I
MAY 2014 25
www. economi cafai r s. com. pk
INTERVIEW
The visit of Korean
Premier, Chung
Hongwon, was the rst
marked by the Pakistani
calendar. MoUs were
signed on trade, industry
and energy.
policies of the former government
and tari system is being reviewed
to make it compatible for the
regional countries.
The government is also working to
develop a competitive market place.
The SRO regime would be
eradicated to provide equal
treatment to all sectors and areas.
Previously, if you installed an
industry in a particular zone, there
would be more facilities and vice
versa.
The government is focusing on
removing various bottlenecks to
provide easy procedures for
business.
We are out to promote regional
trade. Opening up to SAARC regions
and ECO was a part of our manifesto.
This government has also seen
economic recovery in the GCC (Gulf
Cooperation Council) region. Our
aim is to expand market for our
industrialists. Pakistan could be the
base for investors to supply goods to
Afghanistan, China, Central Asian
and SAARC countries.
We are actively working on power
generation so that the industries no
longer face interruption in work due
to power shortage. We have also
cleared the circular debt. We would
get more energy by next month
approximately 1000MW of
additional power. The markup rate
has been stabilized which is 9.5% at
present.
The devaluation of dollar against
rupee has resulted in 10%
additional remittance to foreign
countries.
E.A The Korean Prime Minister just
visited Pakistan. What new avenues
of bilateral relations have been
opened due to his visit? Have any of
Korean companies promised
investment in Pakistan?
The visit of Korean Premier, Chung
Hongwon, was the rst marked by
the Pakistani calendar. MoUs were
signed on trade, industry and
energy. The Korean Premiers visit
on his counterparts invitation itself
is an achievement.
The Koreans are interested in power
sector, trade and construction.
LOTTE group is interested in
confectionary, building malls and
markets and eager to go into
distribution. They have recently
inaugurated their new confectionary
plant in Sundar Industrial Estate in
Lahore which is expected to bring in
investment of over PKR 2 billion to
Pakistan. This shows an increasing
interest of Lotte in Pakistans
expanding economy and consumer
base. Wherever the Japanese and
Korean investments went, those
countries developed.
E.A There has been an increase in
foreign inows, but there is no
signicant improvement in countrys
exports. What do you think is the
cause?
One of the reasons for lagging
behind is that our export industry is
based on a few items i.e. cotton,
synthetic textile, rice, leather and
sports goods. We have not
established a value added industry
which can yield maximum prots by
exports.
Promotion to our traditional
industries should be a priority but
incentives should be announced for
developing our value added
industry so that foreign investments
could be attracted in this area. The
developed value added industry will
ultimately result in increased
exports.
Moreover, our system is not
facilitating the export oriented
industry which is why the countrys
exports are stagnant around the
gure of USD 20 billion from years
and years. Take the example of
Bangladesh; her textile exports have
surpassed our total trade despite
their production of cotton exceeding
the demand.
Moreover on the World Governance
Index, Pakistan makes it to the
bottom of the list. Recently Walt
Disney has decided to ban
import from Pakistan
owing to poor governance
standard which would
result in a loss of many
jobs and USD 200 million
exports of textile
products.
E.A You are one of the
wealthiest businessmen in
Pakistan and denitely
would have been paying
due taxes. Why is the
business community and
as well as politicians accused of tax
evasion?
Its very unfortunate that Pakistan
has a very low tax-to-GDP ratio.
Payment of taxes isnt a custom in
the politician and business
community but many others arent
paying either. For instance we
generate 22% of our GDP from
agriculture but the income from
agriculture is not taxed. Each and
every sector of the economy should
be gradually brought into tax net. I
believe that all income should be
taxed whether its from agriculture,
services or commercial businesses.
Government needs to tackle this
issue with iron hands. Incentives
should be announced for genuine
tax payers but there has to be a strict
penalty for tax evaders.
ahrain, Kuwait, Oman,
Saudi Arabia, Qatar and
the UAE are the trading
block which form a
constellation known as the Gulf
States. The CCASG was established
25 May 1981. The Sultanate of
Oman and the Kingdom of Saudi
Arabia have an absolute monarchy.
The UAE has a federal monarchy.
Bahrain, Kuwait and Qatar have a
system of constitutional monarchy,
albeit Kuwait also supports a
parliamentary system of
governance. This constellation has
a strong showing within a country
comparison of GDP per capita on a
purchasing power parity basis
(using the metric of international
dollars). In 2013, Qatar was the
richest nation in the world with a
per capita GDP (PPP) of over
105,000 dollars. The UAE and
Kuwait are also rmly ensconced
within the top twenty.
Approximately one-third of
Western Europeans also live under
a monarchy form of governance.
The majority are Constitutional
monarchies, which means the head
of state is vastly limited in use of
executive at, or the monarch
declines to utilize the powers
invested in the oce by
convention. There are two
exceptions: Liechtenstein and the
Vatican City. The former, is
considered a semi-constitutional
monarchy due to the sway which
the prince still has on national
politics. The latter, is a theocratic
absolute elective monarchy. Public
opinion polls currently show a high
level of support for the families of
the monarchs and the role assumed
within modern society.
There is something that I know, and
I feel it deep within my bones.
Kingdoms do not last forever; at
personal lack as a
preferred course of
life; and many such
men still exist.
The beauty of
democracy is that in
truest form it allows
for an expansion of
human liberty.
From a place of
human liberty,
citizens can achieve
their highest potential. Happiness
is tightly tied to a universal triad:
freedom of religion, freedom of
expression and freedom of
conscience. Much of the
unhappiness which has been
expressed throughout this wintry
season known as the Arab Spring
has been directed against dynastic
forms of governance which lack the
variety which is noted within
non-linear systems. The systems
can show such minute changes that
they can be hard to detect. But the
change is there!
As Europeans moved toward
enlightenment in science, they also
moved toward enlightenment in
their religious beliefs. These subtle
shifts in perception sculpted the
constitutional monarchies which
exist today.
I stated earlier that kingdoms do
not last forever. Only the people
and their soil remain. The last
imperial dynasty of Russia was the
House of Romanov. It lasted from
1613-1917. My personal library
contains a lovely book: Royal
Russia: The Private Albums of the
Russian Imperial Family. The
selection is from the James Blair
Lovell archive with
accompanying text by Carol
Townend. The images are
stunning. But as with many
tumultuous events in history,
things change forever in a
moment of time. The princesses
died wearing the Romanov family
jewels sewn into their corsets. That,
of course, is the nature of political
chaos.
least not in original form. Only the
people and their soil remain. The
Gulf State dynasties may not
survive the century. Why do I write
such a startling thought? Perhaps it
is because I know there is
something within man's spirit
which craves freedom. He is born
with it and none can take it away.
This quest for expanded freedom in
my own life causes me to cling to
the motto used by Henry David
Thoreau as the opening salvo for
his pamphlet, Civil Disobedience:
That government is best which
governs least.
Good governance, mimics in great
part, non-linear systems found in
nature. The natural order of things
is meant to teach us how to manage
the practical nature of this business
of social contract between men.
In classical antiquity it was
believed that natural order was
based on a static existence. This
belief fed into the orthodoxy which
was propagated through the
religious state organs. A rm belief
that nature was static led to
doctrine which was also static and
increasingly stagnant. The sun
peeped across the horizon, was
seen to arc across the sky and
disappear as it ed the
tentacles of darkness. Truth was
based on observation. In the
truest sense, what could be
observed with the naked eye,
blinded all but the brave few.
Luckily the world of the unseen was
pondered by great men who took
even greater risks to pen their
thoughts. They took their scientic
gifts and liberally bequeathed
them to mankind. Galileo comes to
mind. His views on heliocentrism
were seen as a violation of the
Council of Trent. For his innovation,
he was sentenced to house arrest
for the remainder of his life.
We now understand that nature is
quite a bit more chaotic and
dynamic than the average human
ever imagined it to be. It is
nonlinear (or aperiodic) systems
which provide for such tremendous
variety in our universe. This
immense variety still submits to
mathematical rule, but the
expressive function can be
geometrically beautiful. Nonlinear
systems multiply uncertainty
because they never achieve a
steady state where they can
replicate themselves in exactly the
same manner. A world which is truly
changeless will soon cease to exist.
The same is true, for systems of
governance.
Good governance is meant to be
creative, expansive, and dare I say
it? It can be a bit chaotic too, when
it comes to opening up the process
to civilian participation in the
highest levels of government.
Problematic with the Gulf States
Constellation is the static and
stagnant nature of dynastic family
rule. Just as inbreeding increases
the likelihood of inherited
anomalies, ideological inbreeding
can also create unhealthy political
corpus. When looking at the GDP
(PPP) of the Gulf States it must be
remembered that a metric which
merely identies the capability to
acquire creature comforts does not
satisfy the greater drive for
freedom. History has
demonstrated a steady march of
the men who chose freedom with
MAY 2014 26
www. economi cafai r s. com. pk
INTERVIEW
n the year 1962, Shaikh was a
young boy going to school in his
hometown Chiniot, a city in
Punjab known for furniture
manufacturing and export. As life
sped forward, he established
himself as a successful businessman
and politician. His fame evolved
from his quest for politics as he
contested elections thrice from a
rural dominated constituency
against traditional feudal
politicians. He rst contested in the
1993 general elections from NA-86
(Chiniot-I). It was his second attempt
in 1997, when he topped elections
as an independent candidate from
the same constituency and won a
seat in the National Assembly.
Then again in 2013, he contested in
the general elections as a PML-N
candidate and considering the
highest number of votes he
obtained, he won amongst his
contenders with a considerable
victory. He bagged 77,512 votes,
while Zulqar Ali Shah of PPP
became the runner up with the
second largest number of votes
(4,628).
Shaikh is also the Chief Executive
Ocer of LG Petrochemicals (Pvt)
Ltd, located in Karachi which is a
joint venture between Qaiser
Brothers Pakistan and LG,
International Corporation, the
leading conglomerate of Korea. This
chemical processing plant
manufactures DOP and Butyl
Acetate. The installed capacity of
the plant is 25000 metric tons per
annum. It has an annual turnover of
USD 25 million, which exceeds the
total plant cost of USD 9 million,
from local business and export to
Afghanistan, India, Bangladesh and
UAE.
My father and grandfather began
their business in the year 1946 in
Karachi which makes up around
68 years in the city. While
talking about Karachi, he
mentioned that the time had
favored law and order in Karachi a
few decades ago.
The setting methinks is simple,
not lush as your mind reckons as
it pictures the Parliament Lodges.
Lesser spondulicks have been
spent to make up for his mediocre
living style. A news channel is being
played over the TV. There he sits all
decked up in a black suit and white
shirt. He has a streak of modesty and
tranquility. Because of his MA
economics degree and exposure to
both business and politics, he
expresses gladness for a little chit
chat on economy and investment.
E.A How would you rate the
environment for doing business in
Pakistan? Would you underline some
of bureaucratic hurdles which the
local business community is facing?
The virgin economy of Pakistan has
various potentials in stock for the
foreign investors owing to the
unexplored and unutilized resources.
However the scourge of red-tapism
stands as a big hurdle in the way of
investment inow from abroad. The
foreign investors complain when the
clocks tick time away as les move
from one -desk to another and they
keep moving. The investor goes away
along with his money by the time our
clerks clear his les.
Corruption has paved its way into
every department, beginning from
customs to the investment board
which supposedly has to facilitate
the investors. When I say all
departments, no exception is there.
Even registration for business, tax
and utility services has been made
dicult by the delayed procedures
and zero dedication of the
government employees.
I would say the bureaucratic aptitude
and law and order situation stand as
the biggest hurdles in the way of
investment inows. I think all the
successive governments tried to get
over these impediments but they
failed because these issues have
become a part of our living style and
habits.
Things at the higher level have seen
improvement in terms of corruption
but check and balances need to be
established in the lower ranks of
government system. Although there
has been around 6% increase in
foreign inows since Nawaz
government has taken charge.
E.A What would be your suggestion to
ease the business environment in
Pakistan?
The dening challenge for us is to
make systems here in Pakistan.
Computerization of procedures
could be very helpful in reducing the
element of corruption and
red-tapism. Like, if the manual
operations for land registration are
replaced with computerized
systems, that would enable
transparency. The bureaucrats
shouldnt think they are the masters.
New generations should be taught
that they are to serve the nation and
not to create hurdles. The
government shouldnt meddle in the
business aairs so that the
bureaucratic hurdles are curbed.
E.A You are also a part of the
government. Tell us about some of
the major steps and incentives that
the government has oered to
attract investment?
There are two kinds of incentives;
a favorable tari system and
continuation of policies. The
government is continuing good
MARIA KHALID
the Deputy Editor of this magazine.
Email: Editor@economicaairs.info
policies of the former government
and tari system is being reviewed
to make it compatible for the
regional countries.
The government is also working to
develop a competitive market place.
The SRO regime would be
eradicated to provide equal
treatment to all sectors and areas.
Previously, if you installed an
industry in a particular zone, there
would be more facilities and vice
versa.
The government is focusing on
removing various bottlenecks to
provide easy procedures for
business.
We are out to promote regional
trade. Opening up to SAARC regions
and ECO was a part of our manifesto.
This government has also seen
economic recovery in the GCC (Gulf
Cooperation Council) region. Our
aim is to expand market for our
industrialists. Pakistan could be the
base for investors to supply goods to
Afghanistan, China, Central Asian
and SAARC countries.
We are actively working on power
generation so that the industries no
longer face interruption in work due
to power shortage. We have also
cleared the circular debt. We would
get more energy by next month
approximately 1000MW of
additional power. The markup rate
has been stabilized which is 9.5% at
present.
The devaluation of dollar against
rupee has resulted in 10%
additional remittance to foreign
countries.
E.A The Korean Prime Minister just
visited Pakistan. What new avenues
of bilateral relations have been
opened due to his visit? Have any of
Korean companies promised
investment in Pakistan?
The visit of Korean Premier, Chung
Hongwon, was the rst marked by
the Pakistani calendar. MoUs were
signed on trade, industry and
energy. The Korean Premiers visit
on his counterparts invitation itself
is an achievement.
The Koreans are interested in power
sector, trade and construction.
LOTTE group is interested in
confectionary, building malls and
markets and eager to go into
distribution. They have recently
inaugurated their new confectionary
plant in Sundar Industrial Estate in
Lahore which is expected to bring in
investment of over PKR 2 billion to
Pakistan. This shows an increasing
interest of Lotte in Pakistans
expanding economy and consumer
base. Wherever the Japanese and
Korean investments went, those
countries developed.
E.A There has been an increase in
foreign inows, but there is no
signicant improvement in countrys
exports. What do you think is the
cause?
One of the reasons for lagging
behind is that our export industry is
based on a few items i.e. cotton,
synthetic textile, rice, leather and
sports goods. We have not
established a value added industry
which can yield maximum prots by
exports.
Promotion to our traditional
industries should be a priority but
incentives should be announced for
developing our value added
industry so that foreign investments
could be attracted in this area. The
developed value added industry will
ultimately result in increased
exports.
Moreover, our system is not
facilitating the export oriented
industry which is why the countrys
exports are stagnant around the
gure of USD 20 billion from years
and years. Take the example of
Bangladesh; her textile exports have
surpassed our total trade despite
their production of cotton exceeding
the demand.
Moreover on the World Governance
Index, Pakistan makes it to the
bottom of the list. Recently Walt
Disney has decided to ban
import from Pakistan
owing to poor governance
standard which would
result in a loss of many
jobs and USD 200 million
exports of textile
products.
E.A You are one of the
wealthiest businessmen in
Pakistan and denitely
would have been paying
due taxes. Why is the
business community and
as well as politicians accused of tax
evasion?
Its very unfortunate that Pakistan
has a very low tax-to-GDP ratio.
Payment of taxes isnt a custom in
the politician and business
community but many others arent
paying either. For instance we
generate 22% of our GDP from
agriculture but the income from
agriculture is not taxed. Each and
every sector of the economy should
be gradually brought into tax net. I
believe that all income should be
taxed whether its from agriculture,
services or commercial businesses.
Government needs to tackle this
issue with iron hands. Incentives
should be announced for genuine
tax payers but there has to be a strict
penalty for tax evaders.
ahrain, Kuwait, Oman,
Saudi Arabia, Qatar and
the UAE are the trading
block which form a
constellation known as the Gulf
States. The CCASG was established
25 May 1981. The Sultanate of
Oman and the Kingdom of Saudi
Arabia have an absolute monarchy.
The UAE has a federal monarchy.
Bahrain, Kuwait and Qatar have a
system of constitutional monarchy,
albeit Kuwait also supports a
parliamentary system of
governance. This constellation has
a strong showing within a country
comparison of GDP per capita on a
purchasing power parity basis
(using the metric of international
dollars). In 2013, Qatar was the
richest nation in the world with a
per capita GDP (PPP) of over
105,000 dollars. The UAE and
Kuwait are also rmly ensconced
within the top twenty.
Approximately one-third of
Western Europeans also live under
a monarchy form of governance.
The majority are Constitutional
monarchies, which means the head
of state is vastly limited in use of
executive at, or the monarch
declines to utilize the powers
invested in the oce by
convention. There are two
exceptions: Liechtenstein and the
Vatican City. The former, is
considered a semi-constitutional
monarchy due to the sway which
the prince still has on national
politics. The latter, is a theocratic
absolute elective monarchy. Public
opinion polls currently show a high
level of support for the families of
the monarchs and the role assumed
within modern society.
There is something that I know, and
I feel it deep within my bones.
Kingdoms do not last forever; at
personal lack as a
preferred course of
life; and many such
men still exist.
The beauty of
democracy is that in
truest form it allows
for an expansion of
human liberty.
From a place of
human liberty,
citizens can achieve
their highest potential. Happiness
is tightly tied to a universal triad:
freedom of religion, freedom of
expression and freedom of
conscience. Much of the
unhappiness which has been
expressed throughout this wintry
season known as the Arab Spring
has been directed against dynastic
forms of governance which lack the
variety which is noted within
non-linear systems. The systems
can show such minute changes that
they can be hard to detect. But the
change is there!
As Europeans moved toward
enlightenment in science, they also
moved toward enlightenment in
their religious beliefs. These subtle
shifts in perception sculpted the
constitutional monarchies which
exist today.
I stated earlier that kingdoms do
not last forever. Only the people
and their soil remain. The last
imperial dynasty of Russia was the
House of Romanov. It lasted from
1613-1917. My personal library
contains a lovely book: Royal
Russia: The Private Albums of the
Russian Imperial Family. The
selection is from the James Blair
Lovell archive with
accompanying text by Carol
Townend. The images are
stunning. But as with many
tumultuous events in history,
things change forever in a
moment of time. The princesses
died wearing the Romanov family
jewels sewn into their corsets. That,
of course, is the nature of political
chaos.
least not in original form. Only the
people and their soil remain. The
Gulf State dynasties may not
survive the century. Why do I write
such a startling thought? Perhaps it
is because I know there is
something within man's spirit
which craves freedom. He is born
with it and none can take it away.
This quest for expanded freedom in
my own life causes me to cling to
the motto used by Henry David
Thoreau as the opening salvo for
his pamphlet, Civil Disobedience:
That government is best which
governs least.
Good governance, mimics in great
part, non-linear systems found in
nature. The natural order of things
is meant to teach us how to manage
the practical nature of this business
of social contract between men.
In classical antiquity it was
believed that natural order was
based on a static existence. This
belief fed into the orthodoxy which
was propagated through the
religious state organs. A rm belief
that nature was static led to
doctrine which was also static and
increasingly stagnant. The sun
peeped across the horizon, was
seen to arc across the sky and
disappear as it ed the
tentacles of darkness. Truth was
based on observation. In the
truest sense, what could be
observed with the naked eye,
blinded all but the brave few.
Luckily the world of the unseen was
pondered by great men who took
even greater risks to pen their
thoughts. They took their scientic
gifts and liberally bequeathed
them to mankind. Galileo comes to
mind. His views on heliocentrism
were seen as a violation of the
Council of Trent. For his innovation,
he was sentenced to house arrest
for the remainder of his life.
We now understand that nature is
quite a bit more chaotic and
dynamic than the average human
ever imagined it to be. It is
nonlinear (or aperiodic) systems
which provide for such tremendous
variety in our universe. This
immense variety still submits to
mathematical rule, but the
expressive function can be
geometrically beautiful. Nonlinear
systems multiply uncertainty
because they never achieve a
steady state where they can
replicate themselves in exactly the
same manner. A world which is truly
changeless will soon cease to exist.
The same is true, for systems of
governance.
Good governance is meant to be
creative, expansive, and dare I say
it? It can be a bit chaotic too, when
it comes to opening up the process
to civilian participation in the
highest levels of government.
Problematic with the Gulf States
Constellation is the static and
stagnant nature of dynastic family
rule. Just as inbreeding increases
the likelihood of inherited
anomalies, ideological inbreeding
can also create unhealthy political
corpus. When looking at the GDP
(PPP) of the Gulf States it must be
remembered that a metric which
merely identies the capability to
acquire creature comforts does not
satisfy the greater drive for
freedom. History has
demonstrated a steady march of
the men who chose freedom with
MAY 2014 27
www. economi cafai r s. com. pk
US LAW
With my academic
achievement in high school I
was accepted rather readily
at Princeton and equally as
fast at Yale, but my test scores were
not comparable to that of my
classmates. And that has been
shown by statistics, there are
reasons for that - there are cultural
biases built into testing, and that
was one of the motivations for the
concept of armative action to try
to balance out those eects.
---- United States Supreme Court
Justice Sonia Sotomayor
The denition of armative action
states that it is the practice of
improving the educational and job
opportunities of members of
groups that have not been treated
fairly in the past because of their
race, sex, religion, etc. It is a policy
in which an individuals color, sex,
race, religion or national origin are
taken into account by the
government, business or an
educational institution in order to
augment the opportunities which
are provided to an
underrepresented part of society. It
is often considered a means to
counter historical discrimination
against a particular group in society.
In a 6-2 decision this past week, the
Justices of the United States
Supreme Court have upheld the
state of Michigans ban on
armative action, banning racial
preferences in university
admissions as constitutional,
overturning a lower court decision.
What is key here to understand is
that the US Supreme Court is not
declaring it unconstitutional for
educational institutions to apply
armative action. It is simply giving
individual states their own rights to
choose and decide whether to apply
this principle or not.
Having said that, what armative
action has been providing to
American society for years is a
multitude of benets. It has
provided a plethora of educational
and professional opportunities to
members of minority groups who
would perhaps never have achieved
what they have done without this
enormous help from society and the
legal system.
Many see this as an unfair practice
in which an individual is given an
opportunity or an upper hand based
entirely on his or her color, race, sex,
etc. rather than on his or her
individual achievements. However,
it would not be entirely unfair to say
that merely subscribing to this
point of view could be considered
nave. Countless numbers of people
from minority groups need that
condence placed in them, to be
believed in, to be given a chance
and to be given the opportunities
which make them rise well above
what may have been the case had
there been no armative action in
place.
US Supreme Court Justice Sonia
Sotomayors rather ery, emotional
statements after this decision was
delivered was no doubt, based on
her own experiences growing up in
a modest, underprivileged
background, having eventually
graduated summa cum laude from
Princeton University and receiving
her law degree from Yale University.
By her own admission, Armative
action opened doors in my life.
Those who understand the benets
of armative action would without
hesitation understand Sotomayors
point of view when she states that,
Race matters. Race matters in part
because of the long history of racial
minorities being denied access to
the political process. Race matters
to a young mans view of society
when he spends his teenage years
watching others tense up as he
passes, no matter what
neighborhood he grew up. Race
matters to a young womans sense
of self when she states her
hometown, and then is pressed, No,
where are you really from? The
way to stop discrimination on the
basis of race is to speak openly and
candidly on the subject of race, and
to apply the Constitution with eyes
open to the unfortunate eects of
centuries of racial discrimination.
The Constitution does not protect
racial minorities from political
defeat. But neither does it give the
majority free rein to erect selective
barriers against racial minorities.
This is the story of one woman who,
thanks to her own intelligence and
achievements and the benets of
armative action that was provided
to her rose to being a Justice at the
United States Supreme Court. How
many countless others have had
similar experiences such as Justice
Sotomayor, thanks to their own
achievements and the positives of
armative action is anyones guess.
However, what is a certainty is that
the less and less armative action
is applied, the more
underprivileged individuals and
groups will risk remaining
sounderprivileged. Those are not
the principles that the United States
was founded on.

Afrmative action
A hindrance to
opportunities
Sabria Chowdhury Balland
Sabria Chowdhury Balland is an
English and French professor residing
in the US. She is a columnist on
American political and legal issues
for several international publications.
Twitter: @SabriaBalland,
Email: scballand@gmail.com
Justice Sonia Sotomayor
ahrain, Kuwait, Oman,
Saudi Arabia, Qatar and
the UAE are the trading
block which form a
constellation known as the Gulf
States. The CCASG was established
25 May 1981. The Sultanate of
Oman and the Kingdom of Saudi
Arabia have an absolute monarchy.
The UAE has a federal monarchy.
Bahrain, Kuwait and Qatar have a
system of constitutional monarchy,
albeit Kuwait also supports a
parliamentary system of
governance. This constellation has
a strong showing within a country
comparison of GDP per capita on a
purchasing power parity basis
(using the metric of international
dollars). In 2013, Qatar was the
richest nation in the world with a
per capita GDP (PPP) of over
105,000 dollars. The UAE and
Kuwait are also rmly ensconced
within the top twenty.
Approximately one-third of
Western Europeans also live under
a monarchy form of governance.
The majority are Constitutional
monarchies, which means the head
of state is vastly limited in use of
executive at, or the monarch
declines to utilize the powers
invested in the oce by
convention. There are two
exceptions: Liechtenstein and the
Vatican City. The former, is
considered a semi-constitutional
monarchy due to the sway which
the prince still has on national
politics. The latter, is a theocratic
absolute elective monarchy. Public
opinion polls currently show a high
level of support for the families of
the monarchs and the role assumed
within modern society.
There is something that I know, and
I feel it deep within my bones.
Kingdoms do not last forever; at
personal lack as a
preferred course of
life; and many such
men still exist.
The beauty of
democracy is that in
truest form it allows
for an expansion of
human liberty.
From a place of
human liberty,
citizens can achieve
their highest potential. Happiness
is tightly tied to a universal triad:
freedom of religion, freedom of
expression and freedom of
conscience. Much of the
unhappiness which has been
expressed throughout this wintry
season known as the Arab Spring
has been directed against dynastic
forms of governance which lack the
variety which is noted within
non-linear systems. The systems
can show such minute changes that
they can be hard to detect. But the
change is there!
As Europeans moved toward
enlightenment in science, they also
moved toward enlightenment in
their religious beliefs. These subtle
shifts in perception sculpted the
constitutional monarchies which
exist today.
I stated earlier that kingdoms do
not last forever. Only the people
and their soil remain. The last
imperial dynasty of Russia was the
House of Romanov. It lasted from
1613-1917. My personal library
contains a lovely book: Royal
Russia: The Private Albums of the
Russian Imperial Family. The
selection is from the James Blair
Lovell archive with
accompanying text by Carol
Townend. The images are
stunning. But as with many
tumultuous events in history,
things change forever in a
moment of time. The princesses
died wearing the Romanov family
jewels sewn into their corsets. That,
of course, is the nature of political
chaos.
least not in original form. Only the
people and their soil remain. The
Gulf State dynasties may not
survive the century. Why do I write
such a startling thought? Perhaps it
is because I know there is
something within man's spirit
which craves freedom. He is born
with it and none can take it away.
This quest for expanded freedom in
my own life causes me to cling to
the motto used by Henry David
Thoreau as the opening salvo for
his pamphlet, Civil Disobedience:
That government is best which
governs least.
Good governance, mimics in great
part, non-linear systems found in
nature. The natural order of things
is meant to teach us how to manage
the practical nature of this business
of social contract between men.
In classical antiquity it was
believed that natural order was
based on a static existence. This
belief fed into the orthodoxy which
was propagated through the
religious state organs. A rm belief
that nature was static led to
doctrine which was also static and
increasingly stagnant. The sun
peeped across the horizon, was
seen to arc across the sky and
disappear as it ed the
tentacles of darkness. Truth was
based on observation. In the
truest sense, what could be
observed with the naked eye,
blinded all but the brave few.
Luckily the world of the unseen was
pondered by great men who took
even greater risks to pen their
thoughts. They took their scientic
gifts and liberally bequeathed
them to mankind. Galileo comes to
mind. His views on heliocentrism
were seen as a violation of the
Council of Trent. For his innovation,
he was sentenced to house arrest
for the remainder of his life.
We now understand that nature is
quite a bit more chaotic and
dynamic than the average human
ever imagined it to be. It is
nonlinear (or aperiodic) systems
which provide for such tremendous
variety in our universe. This
immense variety still submits to
mathematical rule, but the
expressive function can be
geometrically beautiful. Nonlinear
systems multiply uncertainty
because they never achieve a
steady state where they can
replicate themselves in exactly the
same manner. A world which is truly
changeless will soon cease to exist.
The same is true, for systems of
governance.
Good governance is meant to be
creative, expansive, and dare I say
it? It can be a bit chaotic too, when
it comes to opening up the process
to civilian participation in the
highest levels of government.
Problematic with the Gulf States
Constellation is the static and
stagnant nature of dynastic family
rule. Just as inbreeding increases
the likelihood of inherited
anomalies, ideological inbreeding
can also create unhealthy political
corpus. When looking at the GDP
(PPP) of the Gulf States it must be
remembered that a metric which
merely identies the capability to
acquire creature comforts does not
satisfy the greater drive for
freedom. History has
demonstrated a steady march of
the men who chose freedom with
MAY 2014 28
www. economi cafai r s. com. pk
GULF REGION
ahrain, Kuwait, Oman,
Saudi Arabia, Qatar and
the UAE are the trading
block which form a
constellation known as the Gulf
States. The CCASG was established
25 May 1981. The Sultanate of
Oman and the Kingdom of Saudi
Arabia have an absolute monarchy.
The UAE has a federal monarchy.
Bahrain, Kuwait and Qatar have a
system of constitutional monarchy,
albeit Kuwait also supports a
parliamentary system of
governance. This constellation has
a strong showing within a country
comparison of GDP per capita on a
purchasing power parity basis
(using the metric of international
dollars). In 2013, Qatar was the
richest nation in the world with a
per capita GDP (PPP) of over
105,000 dollars. The UAE and
Kuwait are also rmly ensconced
within the top twenty.
Approximately one-third of
Western Europeans also live under
a monarchy form of governance.
The majority are Constitutional
monarchies, which means the head
of state is vastly limited in use of
executive at, or the monarch
declines to utilize the powers
invested in the oce by
convention. There are two
exceptions: Liechtenstein and the
Vatican City. The former, is
considered a semi-constitutional
monarchy due to the sway which
the prince still has on national
politics. The latter, is a theocratic
absolute elective monarchy. Public
opinion polls currently show a high
level of support for the families of
the monarchs and the role assumed
within modern society.
There is something that I know, and
I feel it deep within my bones.
Kingdoms do not last forever; at
B
Qatar was the richest nation in the world with a per capita GDP (PPP)
of over 105,000 dollars. The UAE and Kuwait are also frmly
ensconced within the top twenty.
[ [
The
GULF STATES
CONSTELLATION
personal lack as a
preferred course of
life; and many such
men still exist.
The beauty of
democracy is that in
truest form it allows
for an expansion of
human liberty.
From a place of
human liberty,
citizens can achieve
their highest potential. Happiness
is tightly tied to a universal triad:
freedom of religion, freedom of
expression and freedom of
conscience. Much of the
unhappiness which has been
expressed throughout this wintry
season known as the Arab Spring
has been directed against dynastic
forms of governance which lack the
variety which is noted within
non-linear systems. The systems
can show such minute changes that
they can be hard to detect. But the
change is there!
As Europeans moved toward
enlightenment in science, they also
moved toward enlightenment in
their religious beliefs. These subtle
shifts in perception sculpted the
constitutional monarchies which
exist today.
I stated earlier that kingdoms do
not last forever. Only the people
and their soil remain. The last
imperial dynasty of Russia was the
House of Romanov. It lasted from
1613-1917. My personal library
contains a lovely book: Royal
Russia: The Private Albums of the
Russian Imperial Family. The
selection is from the James Blair
Lovell archive with
accompanying text by Carol
Townend. The images are
stunning. But as with many
tumultuous events in history,
things change forever in a
moment of time. The princesses
died wearing the Romanov family
jewels sewn into their corsets. That,
of course, is the nature of political
chaos.
least not in original form. Only the
people and their soil remain. The
Gulf State dynasties may not
survive the century. Why do I write
such a startling thought? Perhaps it
is because I know there is
something within man's spirit
which craves freedom. He is born
with it and none can take it away.
This quest for expanded freedom in
my own life causes me to cling to
the motto used by Henry David
Thoreau as the opening salvo for
his pamphlet, Civil Disobedience:
That government is best which
governs least.
Good governance, mimics in great
part, non-linear systems found in
nature. The natural order of things
is meant to teach us how to manage
the practical nature of this business
of social contract between men.
In classical antiquity it was
believed that natural order was
based on a static existence. This
belief fed into the orthodoxy which
was propagated through the
religious state organs. A rm belief
that nature was static led to
doctrine which was also static and
increasingly stagnant. The sun
peeped across the horizon, was
seen to arc across the sky and
disappear as it ed the
tentacles of darkness. Truth was
based on observation. In the
truest sense, what could be
observed with the naked eye,
blinded all but the brave few.
Luckily the world of the unseen was
pondered by great men who took
even greater risks to pen their
thoughts. They took their scientic
gifts and liberally bequeathed
them to mankind. Galileo comes to
mind. His views on heliocentrism
were seen as a violation of the
Council of Trent. For his innovation,
he was sentenced to house arrest
for the remainder of his life.
We now understand that nature is
quite a bit more chaotic and
dynamic than the average human
ever imagined it to be. It is
nonlinear (or aperiodic) systems
which provide for such tremendous
variety in our universe. This
immense variety still submits to
mathematical rule, but the
expressive function can be
geometrically beautiful. Nonlinear
systems multiply uncertainty
because they never achieve a
steady state where they can
replicate themselves in exactly the
same manner. A world which is truly
changeless will soon cease to exist.
The same is true, for systems of
governance.
Good governance is meant to be
creative, expansive, and dare I say
it? It can be a bit chaotic too, when
it comes to opening up the process
to civilian participation in the
highest levels of government.
Problematic with the Gulf States
Constellation is the static and
stagnant nature of dynastic family
rule. Just as inbreeding increases
the likelihood of inherited
anomalies, ideological inbreeding
can also create unhealthy political
corpus. When looking at the GDP
(PPP) of the Gulf States it must be
remembered that a metric which
merely identies the capability to
acquire creature comforts does not
satisfy the greater drive for
freedom. History has
demonstrated a steady march of
the men who chose freedom with
ahrain, Kuwait, Oman,
Saudi Arabia, Qatar and
the UAE are the trading
block which form a
constellation known as the Gulf
States. The CCASG was established
25 May 1981. The Sultanate of
Oman and the Kingdom of Saudi
Arabia have an absolute monarchy.
The UAE has a federal monarchy.
Bahrain, Kuwait and Qatar have a
system of constitutional monarchy,
albeit Kuwait also supports a
parliamentary system of
governance. This constellation has
a strong showing within a country
comparison of GDP per capita on a
purchasing power parity basis
(using the metric of international
dollars). In 2013, Qatar was the
richest nation in the world with a
per capita GDP (PPP) of over
105,000 dollars. The UAE and
Kuwait are also rmly ensconced
within the top twenty.
Approximately one-third of
Western Europeans also live under
a monarchy form of governance.
The majority are Constitutional
monarchies, which means the head
of state is vastly limited in use of
executive at, or the monarch
declines to utilize the powers
invested in the oce by
convention. There are two
exceptions: Liechtenstein and the
Vatican City. The former, is
considered a semi-constitutional
monarchy due to the sway which
the prince still has on national
politics. The latter, is a theocratic
absolute elective monarchy. Public
opinion polls currently show a high
level of support for the families of
the monarchs and the role assumed
within modern society.
There is something that I know, and
I feel it deep within my bones.
Kingdoms do not last forever; at
personal lack as a
preferred course of
life; and many such
men still exist.
The beauty of
democracy is that in
truest form it allows
for an expansion of
human liberty.
From a place of
human liberty,
citizens can achieve
their highest potential. Happiness
is tightly tied to a universal triad:
freedom of religion, freedom of
expression and freedom of
conscience. Much of the
unhappiness which has been
expressed throughout this wintry
season known as the Arab Spring
has been directed against dynastic
forms of governance which lack the
variety which is noted within
non-linear systems. The systems
can show such minute changes that
they can be hard to detect. But the
change is there!
As Europeans moved toward
enlightenment in science, they also
moved toward enlightenment in
their religious beliefs. These subtle
shifts in perception sculpted the
constitutional monarchies which
exist today.
I stated earlier that kingdoms do
not last forever. Only the people
and their soil remain. The last
imperial dynasty of Russia was the
House of Romanov. It lasted from
1613-1917. My personal library
contains a lovely book: Royal
Russia: The Private Albums of the
Russian Imperial Family. The
selection is from the James Blair
Lovell archive with
accompanying text by Carol
Townend. The images are
stunning. But as with many
tumultuous events in history,
things change forever in a
moment of time. The princesses
died wearing the Romanov family
jewels sewn into their corsets. That,
of course, is the nature of political
chaos.
MAY 2014 29
www. economi cafai r s. com. pk
GULF REGION
least not in original form. Only the
people and their soil remain. The
Gulf State dynasties may not
survive the century. Why do I write
such a startling thought? Perhaps it
is because I know there is
something within man's spirit
which craves freedom. He is born
with it and none can take it away.
This quest for expanded freedom in
my own life causes me to cling to
the motto used by Henry David
Thoreau as the opening salvo for
his pamphlet, Civil Disobedience:
That government is best which
governs least.
Good governance, mimics in great
part, non-linear systems found in
nature. The natural order of things
is meant to teach us how to manage
the practical nature of this business
of social contract between men.
In classical antiquity it was
believed that natural order was
based on a static existence. This
belief fed into the orthodoxy which
was propagated through the
religious state organs. A rm belief
that nature was static led to
doctrine which was also static and
increasingly stagnant. The sun
peeped across the horizon, was
seen to arc across the sky and
disappear as it ed the
tentacles of darkness. Truth was
based on observation. In the
truest sense, what could be
observed with the naked eye,
blinded all but the brave few.
Luckily the world of the unseen was
pondered by great men who took
even greater risks to pen their
thoughts. They took their scientic
gifts and liberally bequeathed
them to mankind. Galileo comes to
mind. His views on heliocentrism
were seen as a violation of the
Council of Trent. For his innovation,
he was sentenced to house arrest
for the remainder of his life.
We now understand that nature is
quite a bit more chaotic and
dynamic than the average human
ever imagined it to be. It is
nonlinear (or aperiodic) systems
which provide for such tremendous
variety in our universe. This
immense variety still submits to
mathematical rule, but the
expressive function can be
geometrically beautiful. Nonlinear
systems multiply uncertainty
because they never achieve a
steady state where they can
replicate themselves in exactly the
same manner. A world which is truly
changeless will soon cease to exist.
The same is true, for systems of
governance.
Good governance is meant to be
creative, expansive, and dare I say
it? It can be a bit chaotic too, when
it comes to opening up the process
to civilian participation in the
highest levels of government.
Problematic with the Gulf States
Constellation is the static and
stagnant nature of dynastic family
rule. Just as inbreeding increases
the likelihood of inherited
anomalies, ideological inbreeding
can also create unhealthy political
corpus. When looking at the GDP
(PPP) of the Gulf States it must be
remembered that a metric which
merely identies the capability to
acquire creature comforts does not
satisfy the greater drive for
freedom. History has
demonstrated a steady march of
the men who chose freedom with
That government
is best which governs
least
TAMMY SWOFFORD
The writer is a freelance journalist
and author of the novel Arsenal.
She can be reached at
tammyswoord@yahoo.com
activities.
Reorganizing the BOI with a
view to setting the institutional
basis for eective and ecient
operations;
Institutionalizing the
Public- Private Sector dialogue
with a view to mobilize the
necessary Federal Provincial
Private Sector collaboration for
implementing this Strategy
Determining rst Target
Sectors and competitive
investment projects in these
sectors (Competitive Projects);
Promoting FDI into
Competitive Projects; and
Launching the SEZ program.
Many of these activities will have
to be performed in the provinces
and regions where prospective
competitive investment projects
are located. With its capacity and
resource constraints, the BOI will
not be able to carry out these
activities itself. Rather, it will have
to rely on the co-operation of other,
notably provincial agencies and
private sector organizations.
FDI in Pakistan mainly comes from
four regions which in 2007-2008
accounted for 71% of total FDI
ows to Pakistan. These are: United
States (25.4%); South East Asia
mainly Malaysia & Hong Kong
(20.5%), EU mostly UK & NL
(12.8%) and Middle East, mainly
UAE & KSA (12.3%).
The BOIs eorts for FDI promotion
will focus on these regions, plus
China and Far East where there is
considerable potential. Bilateral
business councils with countries in
these regions will be reactivated;
and new councils will be initiated
with China, UAE, KSA and NL. The
FDI promotion eorts would be
extended to countries that match
sector-specic strengths of
Pakistan.
MAY 2014 30
www. economi cafai r s. com. pk
ECONOMY
or an investor, the
expected relative
risk/return ratio is the
driving force of
investment decisions. Therefore,
they tend to invest in countries and
projects where they expect the
highest returns and the lowest risks
relative to alternative investment
opportunities.
The global integration of
economies has forced the
developing countries to adopt
liberalized policies for attracting
Foreign Direct Investment (FDI).
Pakistans success in attracting
foreign investment thus depends
on its competitiveness as an
investment location relative to
other countries. Thus, a pro-active
campaign is required to enhance
Pakistans image as a favorable
investment location. There comes
the role of Board of Investment
(BOI) whose mandate is to promote,
encourage and facilitate local and
foreign investment inow in
Pakistan.
BOI has prepared a strategy to
persuade worldwide investors that
Pakistan, despite challenges, oers
investment opportunities with
risk/return ratios outshining
alternative opportunities
elsewhere. The strategy is to
concentrate on identication of
competitive projects for investors,
development of markets and
creation of a true one-window
operation for facilitation.
The strategy also calls for more
active and eective role of BOI in
investment decisions, creating
more resources and capacity within
BOI. Clear objectives have been
laid down to yield results and to
create a broader Investment
Generation Cycle.
Identication and
development of focal sectors ,
i.e., sectors with favorable
fundamentals for Competitive
Projects;
Identication and advocacy
of policy measures likely to
increase the protability and
decrease the risk level of
investments in Pakistan
(Competitiveness Enhancement),
International promotion of
competitive projects with a focus
on target investors and target
regions
Investment facilitation, i.e.,
services provided to potential
foreign investors with a view to
convert their interest in
competitive projects into actual
investment in Pakistan.
F
Foreign investors operate in
Pakistan alongside domestic
Pakistani investors; therefore an
equal treatment is envisaged for
local and foreign investors.
Foreign Direct Investment
To maximize the contributions of
FDI to Pakistans economic
development, the BOIs FDI
Strategy furthermore envisages
special programs to promote the
linkage between domestically and
foreign-owned private enterprises,
such as local suppliers,
sub-contractors or joint venture
programs.
This FDI Strategy outlines a
conceptual framework for
cooperation of economic sectors in
Pakistan, public and private
sectors, towards mobilizing the
private investments, (domestic and
foreign) that are required to
achieve Pakistans economic
targets.
The following targets are
highlighted for this FDI Strategy:
Average growth rate of 7
8 % per year (supported by the
Framework for Economic Growth)
Employment for an
increasing and increasingly
urbanized population (230 260
million by 2030)
Building a knowledge-based
economy and prioritizing the
development of human capital
Enhancing the global
competitiveness of the Pakistan
economy from the 2011-12 rank
(118 out of 142 benchmarked
countries) to be ranked 50 by 2030.
Towards these targets, this FDI
Strategy foresees seven action
programs (operational windows),
namely:
1) Policy formulation &
public-private sector dialogue
2) FDI promotion campaign
3) Investment facilitation
(One Window)
4) Development of special
economic zones
5) Coordination networks
with stakeholders ministries
6) Re-organization & capacity
development of the BOI and
7) BOI as a self nancing
organization.
To facilitate these programs, the
FDI strategy proposes
revitalization of BOI with an
attendant capacity building and
r e s t r u c t u r i n g
program.
This FDI Strategy
cannot be
implemented by
the BOI alone. Its
success requires
collaboration of all
s t a k e h o l d e r s
including the
potential investors and Pakistans
private sector.
The BOI has designed a framework
of cooperation for all stakeholders,
public and private. This framework
aims to meet broad consensus of
Pakistans civil society beyond
political divisions.
This framework has been designed
with a view to avoid any
interference with competencies of
ministries and agencies of the GoP
or the Provinces; and all activities
envisaged to be carried out by the
BOI are covered by the latters
mandate under Article 9 of the
2001 BOI Ordinance.
The successful implementation of
this FDI Strategy will require
considerable administrative
capacities with attendant
budgetary implications. Therefore,
while considering the present
challenges faced by Pakistan, the
BOI is giving priority to following
BOIs Investment
Generation Cycle
ahrain, Kuwait, Oman,
Saudi Arabia, Qatar and
the UAE are the trading
block which form a
constellation known as the Gulf
States. The CCASG was established
25 May 1981. The Sultanate of
Oman and the Kingdom of Saudi
Arabia have an absolute monarchy.
The UAE has a federal monarchy.
Bahrain, Kuwait and Qatar have a
system of constitutional monarchy,
albeit Kuwait also supports a
parliamentary system of
governance. This constellation has
a strong showing within a country
comparison of GDP per capita on a
purchasing power parity basis
(using the metric of international
dollars). In 2013, Qatar was the
richest nation in the world with a
per capita GDP (PPP) of over
105,000 dollars. The UAE and
Kuwait are also rmly ensconced
within the top twenty.
Approximately one-third of
Western Europeans also live under
a monarchy form of governance.
The majority are Constitutional
monarchies, which means the head
of state is vastly limited in use of
executive at, or the monarch
declines to utilize the powers
invested in the oce by
convention. There are two
exceptions: Liechtenstein and the
Vatican City. The former, is
considered a semi-constitutional
monarchy due to the sway which
the prince still has on national
politics. The latter, is a theocratic
absolute elective monarchy. Public
opinion polls currently show a high
level of support for the families of
the monarchs and the role assumed
within modern society.
There is something that I know, and
I feel it deep within my bones.
Kingdoms do not last forever; at
personal lack as a
preferred course of
life; and many such
men still exist.
The beauty of
democracy is that in
truest form it allows
for an expansion of
human liberty.
From a place of
human liberty,
citizens can achieve
their highest potential. Happiness
is tightly tied to a universal triad:
freedom of religion, freedom of
expression and freedom of
conscience. Much of the
unhappiness which has been
expressed throughout this wintry
season known as the Arab Spring
has been directed against dynastic
forms of governance which lack the
variety which is noted within
non-linear systems. The systems
can show such minute changes that
they can be hard to detect. But the
change is there!
As Europeans moved toward
enlightenment in science, they also
moved toward enlightenment in
their religious beliefs. These subtle
shifts in perception sculpted the
constitutional monarchies which
exist today.
I stated earlier that kingdoms do
not last forever. Only the people
and their soil remain. The last
imperial dynasty of Russia was the
House of Romanov. It lasted from
1613-1917. My personal library
contains a lovely book: Royal
Russia: The Private Albums of the
Russian Imperial Family. The
selection is from the James Blair
Lovell archive with
accompanying text by Carol
Townend. The images are
stunning. But as with many
tumultuous events in history,
things change forever in a
moment of time. The princesses
died wearing the Romanov family
jewels sewn into their corsets. That,
of course, is the nature of political
chaos.
least not in original form. Only the
people and their soil remain. The
Gulf State dynasties may not
survive the century. Why do I write
such a startling thought? Perhaps it
is because I know there is
something within man's spirit
which craves freedom. He is born
with it and none can take it away.
This quest for expanded freedom in
my own life causes me to cling to
the motto used by Henry David
Thoreau as the opening salvo for
his pamphlet, Civil Disobedience:
That government is best which
governs least.
Good governance, mimics in great
part, non-linear systems found in
nature. The natural order of things
is meant to teach us how to manage
the practical nature of this business
of social contract between men.
In classical antiquity it was
believed that natural order was
based on a static existence. This
belief fed into the orthodoxy which
was propagated through the
religious state organs. A rm belief
that nature was static led to
doctrine which was also static and
increasingly stagnant. The sun
peeped across the horizon, was
seen to arc across the sky and
disappear as it ed the
tentacles of darkness. Truth was
based on observation. In the
truest sense, what could be
observed with the naked eye,
blinded all but the brave few.
Luckily the world of the unseen was
pondered by great men who took
even greater risks to pen their
thoughts. They took their scientic
gifts and liberally bequeathed
them to mankind. Galileo comes to
mind. His views on heliocentrism
were seen as a violation of the
Council of Trent. For his innovation,
he was sentenced to house arrest
for the remainder of his life.
We now understand that nature is
quite a bit more chaotic and
dynamic than the average human
ever imagined it to be. It is
nonlinear (or aperiodic) systems
which provide for such tremendous
variety in our universe. This
immense variety still submits to
mathematical rule, but the
expressive function can be
geometrically beautiful. Nonlinear
systems multiply uncertainty
because they never achieve a
steady state where they can
replicate themselves in exactly the
same manner. A world which is truly
changeless will soon cease to exist.
The same is true, for systems of
governance.
Good governance is meant to be
creative, expansive, and dare I say
it? It can be a bit chaotic too, when
it comes to opening up the process
to civilian participation in the
highest levels of government.
Problematic with the Gulf States
Constellation is the static and
stagnant nature of dynastic family
rule. Just as inbreeding increases
the likelihood of inherited
anomalies, ideological inbreeding
can also create unhealthy political
corpus. When looking at the GDP
(PPP) of the Gulf States it must be
remembered that a metric which
merely identies the capability to
acquire creature comforts does not
satisfy the greater drive for
freedom. History has
demonstrated a steady march of
the men who chose freedom with
activities.
Reorganizing the BOI with a
view to setting the institutional
basis for eective and ecient
operations;
Institutionalizing the
Public- Private Sector dialogue
with a view to mobilize the
necessary Federal Provincial
Private Sector collaboration for
implementing this Strategy
Determining rst Target
Sectors and competitive
investment projects in these
sectors (Competitive Projects);
Promoting FDI into
Competitive Projects; and
Launching the SEZ program.
Many of these activities will have
to be performed in the provinces
and regions where prospective
competitive investment projects
are located. With its capacity and
resource constraints, the BOI will
not be able to carry out these
activities itself. Rather, it will have
to rely on the co-operation of other,
notably provincial agencies and
private sector organizations.
FDI in Pakistan mainly comes from
four regions which in 2007-2008
accounted for 71% of total FDI
ows to Pakistan. These are: United
States (25.4%); South East Asia
mainly Malaysia & Hong Kong
(20.5%), EU mostly UK & NL
(12.8%) and Middle East, mainly
UAE & KSA (12.3%).
The BOIs eorts for FDI promotion
will focus on these regions, plus
China and Far East where there is
considerable potential. Bilateral
business councils with countries in
these regions will be reactivated;
and new councils will be initiated
with China, UAE, KSA and NL. The
FDI promotion eorts would be
extended to countries that match
sector-specic strengths of
Pakistan.
or an investor, the
expected relative
risk/return ratio is the
driving force of
investment decisions. Therefore,
they tend to invest in countries and
projects where they expect the
highest returns and the lowest risks
relative to alternative investment
opportunities.
The global integration of
economies has forced the
developing countries to adopt
liberalized policies for attracting
Foreign Direct Investment (FDI).
Pakistans success in attracting
foreign investment thus depends
on its competitiveness as an
investment location relative to
other countries. Thus, a pro-active
campaign is required to enhance
Pakistans image as a favorable
investment location. There comes
the role of Board of Investment
(BOI) whose mandate is to promote,
encourage and facilitate local and
foreign investment inow in
Pakistan.
BOI has prepared a strategy to
persuade worldwide investors that
Pakistan, despite challenges, oers
investment opportunities with
risk/return ratios outshining
alternative opportunities
elsewhere. The strategy is to
concentrate on identication of
competitive projects for investors,
development of markets and
creation of a true one-window
operation for facilitation.
The strategy also calls for more
active and eective role of BOI in
investment decisions, creating
more resources and capacity within
BOI. Clear objectives have been
laid down to yield results and to
create a broader Investment
Generation Cycle.
Identication and
development of focal sectors ,
i.e., sectors with favorable
fundamentals for Competitive
Projects;
Identication and advocacy
of policy measures likely to
increase the protability and
decrease the risk level of
investments in Pakistan
(Competitiveness Enhancement),
International promotion of
competitive projects with a focus
on target investors and target
regions
Investment facilitation, i.e.,
services provided to potential
foreign investors with a view to
convert their interest in
competitive projects into actual
investment in Pakistan.
MAY 2014 31
www. economi cafai r s. com. pk
ECONOMY
Foreign investors operate in
Pakistan alongside domestic
Pakistani investors; therefore an
equal treatment is envisaged for
local and foreign investors.
Foreign Direct Investment
To maximize the contributions of
FDI to Pakistans economic
development, the BOIs FDI
Strategy furthermore envisages
special programs to promote the
linkage between domestically and
foreign-owned private enterprises,
such as local suppliers,
sub-contractors or joint venture
programs.
This FDI Strategy outlines a
conceptual framework for
cooperation of economic sectors in
Pakistan, public and private
sectors, towards mobilizing the
private investments, (domestic and
foreign) that are required to
achieve Pakistans economic
targets.
The following targets are
highlighted for this FDI Strategy:
Average growth rate of 7
8 % per year (supported by the
Framework for Economic Growth)
Employment for an
increasing and increasingly
urbanized population (230 260
million by 2030)
Building a knowledge-based
economy and prioritizing the
development of human capital
Enhancing the global
competitiveness of the Pakistan
economy from the 2011-12 rank
(118 out of 142 benchmarked
countries) to be ranked 50 by 2030.
Towards these targets, this FDI
Strategy foresees seven action
programs (operational windows),
namely:
1) Policy formulation &
public-private sector dialogue
2) FDI promotion campaign
3) Investment facilitation
(One Window)
4) Development of special
economic zones
5) Coordination networks
with stakeholders ministries
6) Re-organization & capacity
development of the BOI and
7) BOI as a self nancing
organization.
To facilitate these programs, the
FDI strategy proposes
revitalization of BOI with an
attendant capacity building and
r e s t r u c t u r i n g
program.
This FDI Strategy
cannot be
implemented by
the BOI alone. Its
success requires
collaboration of all
s t a k e h o l d e r s
including the
potential investors and Pakistans
private sector.
The BOI has designed a framework
of cooperation for all stakeholders,
public and private. This framework
aims to meet broad consensus of
Pakistans civil society beyond
political divisions.
This framework has been designed
with a view to avoid any
interference with competencies of
ministries and agencies of the GoP
or the Provinces; and all activities
envisaged to be carried out by the
BOI are covered by the latters
mandate under Article 9 of the
2001 BOI Ordinance.
The successful implementation of
this FDI Strategy will require
considerable administrative
capacities with attendant
budgetary implications. Therefore,
while considering the present
challenges faced by Pakistan, the
BOI is giving priority to following
The strategy is to
concentrate on identication
of competitive projects for
investors, development of
markets and creation of a
true one-window operation
for facilitation.
TOUSIF-UR-REHMAN
The writer is the Editor of
Monthly Economic Aairs.
Email: gondal.sajid@gmail.com
ahrain, Kuwait, Oman,
Saudi Arabia, Qatar and
the UAE are the trading
block which form a
constellation known as the Gulf
States. The CCASG was established
25 May 1981. The Sultanate of
Oman and the Kingdom of Saudi
Arabia have an absolute monarchy.
The UAE has a federal monarchy.
Bahrain, Kuwait and Qatar have a
system of constitutional monarchy,
albeit Kuwait also supports a
parliamentary system of
governance. This constellation has
a strong showing within a country
comparison of GDP per capita on a
purchasing power parity basis
(using the metric of international
dollars). In 2013, Qatar was the
richest nation in the world with a
per capita GDP (PPP) of over
105,000 dollars. The UAE and
Kuwait are also rmly ensconced
within the top twenty.
Approximately one-third of
Western Europeans also live under
a monarchy form of governance.
The majority are Constitutional
monarchies, which means the head
of state is vastly limited in use of
executive at, or the monarch
declines to utilize the powers
invested in the oce by
convention. There are two
exceptions: Liechtenstein and the
Vatican City. The former, is
considered a semi-constitutional
monarchy due to the sway which
the prince still has on national
politics. The latter, is a theocratic
absolute elective monarchy. Public
opinion polls currently show a high
level of support for the families of
the monarchs and the role assumed
within modern society.
There is something that I know, and
I feel it deep within my bones.
Kingdoms do not last forever; at
personal lack as a
preferred course of
life; and many such
men still exist.
The beauty of
democracy is that in
truest form it allows
for an expansion of
human liberty.
From a place of
human liberty,
citizens can achieve
their highest potential. Happiness
is tightly tied to a universal triad:
freedom of religion, freedom of
expression and freedom of
conscience. Much of the
unhappiness which has been
expressed throughout this wintry
season known as the Arab Spring
has been directed against dynastic
forms of governance which lack the
variety which is noted within
non-linear systems. The systems
can show such minute changes that
they can be hard to detect. But the
change is there!
As Europeans moved toward
enlightenment in science, they also
moved toward enlightenment in
their religious beliefs. These subtle
shifts in perception sculpted the
constitutional monarchies which
exist today.
I stated earlier that kingdoms do
not last forever. Only the people
and their soil remain. The last
imperial dynasty of Russia was the
House of Romanov. It lasted from
1613-1917. My personal library
contains a lovely book: Royal
Russia: The Private Albums of the
Russian Imperial Family. The
selection is from the James Blair
Lovell archive with
accompanying text by Carol
Townend. The images are
stunning. But as with many
tumultuous events in history,
things change forever in a
moment of time. The princesses
died wearing the Romanov family
jewels sewn into their corsets. That,
of course, is the nature of political
chaos.
least not in original form. Only the
people and their soil remain. The
Gulf State dynasties may not
survive the century. Why do I write
such a startling thought? Perhaps it
is because I know there is
something within man's spirit
which craves freedom. He is born
with it and none can take it away.
This quest for expanded freedom in
my own life causes me to cling to
the motto used by Henry David
Thoreau as the opening salvo for
his pamphlet, Civil Disobedience:
That government is best which
governs least.
Good governance, mimics in great
part, non-linear systems found in
nature. The natural order of things
is meant to teach us how to manage
the practical nature of this business
of social contract between men.
In classical antiquity it was
believed that natural order was
based on a static existence. This
belief fed into the orthodoxy which
was propagated through the
religious state organs. A rm belief
that nature was static led to
doctrine which was also static and
increasingly stagnant. The sun
peeped across the horizon, was
seen to arc across the sky and
disappear as it ed the
tentacles of darkness. Truth was
based on observation. In the
truest sense, what could be
observed with the naked eye,
blinded all but the brave few.
Luckily the world of the unseen was
pondered by great men who took
even greater risks to pen their
thoughts. They took their scientic
gifts and liberally bequeathed
them to mankind. Galileo comes to
mind. His views on heliocentrism
were seen as a violation of the
Council of Trent. For his innovation,
he was sentenced to house arrest
for the remainder of his life.
We now understand that nature is
quite a bit more chaotic and
dynamic than the average human
ever imagined it to be. It is
nonlinear (or aperiodic) systems
which provide for such tremendous
variety in our universe. This
immense variety still submits to
mathematical rule, but the
expressive function can be
geometrically beautiful. Nonlinear
systems multiply uncertainty
because they never achieve a
steady state where they can
replicate themselves in exactly the
same manner. A world which is truly
changeless will soon cease to exist.
The same is true, for systems of
governance.
Good governance is meant to be
creative, expansive, and dare I say
it? It can be a bit chaotic too, when
it comes to opening up the process
to civilian participation in the
highest levels of government.
Problematic with the Gulf States
Constellation is the static and
stagnant nature of dynastic family
rule. Just as inbreeding increases
the likelihood of inherited
anomalies, ideological inbreeding
can also create unhealthy political
corpus. When looking at the GDP
(PPP) of the Gulf States it must be
remembered that a metric which
merely identies the capability to
acquire creature comforts does not
satisfy the greater drive for
freedom. History has
demonstrated a steady march of
the men who chose freedom with
MAY 2014 32
www. economi cafai r s. com. pk
INTERVIEW
ow that Islamabad has its
rst solar powered car, we
wonder what more could
our engineers do. Ahmad
Aslam, who is an electrical engineer
by profession, has designed and
manufactured a two-seater solar
vehicle which runs at the speed of
80 kilometers per hour. Besides
being charged by solar panels, its
batteries could also be charged by
direct electricity source consuming
only 1 PKR of electricity per
kilometer which is astonishingly
low. The quest to know more about
the features of this car drove the
Economic Aairs team into the oce
cum experimental lab of Aslam
Azad, located in Blue Area, who
happens to be the investor of this
solar car.
E.A. What are the features of this
solar car?
This is the worlds rst ever
self-generating alternative energy
hybrid car without an engine,
commercialized 1st time in history
as the true pride of Pakistan. This
car is powered by solar and kinetic
energy and its engine becomes a
generator when the car runs.
Although it is still not a nal version
but I have presented an initial
design for testing purposes. After a
testing phase, I will present its
second and improved model. The
rst version of the car has a battery
that can run the car at a maximum
speed of 80 kilometers per hour. The
speed and distance it covers can be
increased by installing more
powerful batteries. There are ve
transmission gears and the body is
also strong enough to support 80
kilometers per hour drive. It is
two-seater at the moment.
Another important feature is that it
can also be charged from a direct
source of electricity. If its batteries
are charged by electric power, its
per kilometer mileage cost will be
one rupee only.
E.A. Would the next design of this
car increase its eciency and
comfort?
Yes, I have started work on its next
design which would have the looks
of a modern four-seater car. It will
come with an increased speed limit
and the distance it covers with a
fully charged battery. I will also add
pneumatic energy, organic and
magnetic fuel cells for maximum
mileage and travelling with
eciency.
If manufactured on commercial
basis, it will be a very economical
and low priced vehicle available in
400,000 PKR.
E.A. From where did you get this
idea of manufacturing a solar car?
I am an electrical engineer and a
university professor. During my
lectures and helping students in
their research projects, the idea of
using combined solar and kinetic
energy ashed in my mind and I
started eorts to make it a reality.
I shared my idea with the ocials in
Engineering Development Board
and found them very helpful. They
encouraged me and supported in
getting some international tests
done for this solar car.
Initially, I failed in a number of
experiments, but it started yielding
results gradually. I continued my
experiments for more than ve years
and now I am driving this car.
E.A. What kind of response have you
received for designing countrys
rst ever solar car?
I am quite condent that the
government will issue a
manufacturing license for this car
and I will also be able to search
some good investors to market my
invention.
It is quite evident that if eorts like
these are backed up by the
government of Pakistan then this
kind of vehicles can be produced
locally. The electric motor used in it
is not locally manufactured but
other than that, every single part is
made in Pakistan. Islamabad Excise
and Taxation Department has
registered this car and allotted it a
number IDE 9555.
In the next six months you will see
these cars running on the roads of
Islamabad. I have received a very
good response and a few people
also gave me booking orders for its
delivery. They are planning to run
these solar cars as taxicabs in
Islamabad.
N
Using the scorching
sun to our advantage
SHIRAZ NIZAMI
The writer is a correspondent for
Monthly Economic Aairs.
ahrain, Kuwait, Oman,
Saudi Arabia, Qatar and
the UAE are the trading
block which form a
constellation known as the Gulf
States. The CCASG was established
25 May 1981. The Sultanate of
Oman and the Kingdom of Saudi
Arabia have an absolute monarchy.
The UAE has a federal monarchy.
Bahrain, Kuwait and Qatar have a
system of constitutional monarchy,
albeit Kuwait also supports a
parliamentary system of
governance. This constellation has
a strong showing within a country
comparison of GDP per capita on a
purchasing power parity basis
(using the metric of international
dollars). In 2013, Qatar was the
richest nation in the world with a
per capita GDP (PPP) of over
105,000 dollars. The UAE and
Kuwait are also rmly ensconced
within the top twenty.
Approximately one-third of
Western Europeans also live under
a monarchy form of governance.
The majority are Constitutional
monarchies, which means the head
of state is vastly limited in use of
executive at, or the monarch
declines to utilize the powers
invested in the oce by
convention. There are two
exceptions: Liechtenstein and the
Vatican City. The former, is
considered a semi-constitutional
monarchy due to the sway which
the prince still has on national
politics. The latter, is a theocratic
absolute elective monarchy. Public
opinion polls currently show a high
level of support for the families of
the monarchs and the role assumed
within modern society.
There is something that I know, and
I feel it deep within my bones.
Kingdoms do not last forever; at
personal lack as a
preferred course of
life; and many such
men still exist.
The beauty of
democracy is that in
truest form it allows
for an expansion of
human liberty.
From a place of
human liberty,
citizens can achieve
their highest potential. Happiness
is tightly tied to a universal triad:
freedom of religion, freedom of
expression and freedom of
conscience. Much of the
unhappiness which has been
expressed throughout this wintry
season known as the Arab Spring
has been directed against dynastic
forms of governance which lack the
variety which is noted within
non-linear systems. The systems
can show such minute changes that
they can be hard to detect. But the
change is there!
As Europeans moved toward
enlightenment in science, they also
moved toward enlightenment in
their religious beliefs. These subtle
shifts in perception sculpted the
constitutional monarchies which
exist today.
I stated earlier that kingdoms do
not last forever. Only the people
and their soil remain. The last
imperial dynasty of Russia was the
House of Romanov. It lasted from
1613-1917. My personal library
contains a lovely book: Royal
Russia: The Private Albums of the
Russian Imperial Family. The
selection is from the James Blair
Lovell archive with
accompanying text by Carol
Townend. The images are
stunning. But as with many
tumultuous events in history,
things change forever in a
moment of time. The princesses
died wearing the Romanov family
jewels sewn into their corsets. That,
of course, is the nature of political
chaos.
least not in original form. Only the
people and their soil remain. The
Gulf State dynasties may not
survive the century. Why do I write
such a startling thought? Perhaps it
is because I know there is
something within man's spirit
which craves freedom. He is born
with it and none can take it away.
This quest for expanded freedom in
my own life causes me to cling to
the motto used by Henry David
Thoreau as the opening salvo for
his pamphlet, Civil Disobedience:
That government is best which
governs least.
Good governance, mimics in great
part, non-linear systems found in
nature. The natural order of things
is meant to teach us how to manage
the practical nature of this business
of social contract between men.
In classical antiquity it was
believed that natural order was
based on a static existence. This
belief fed into the orthodoxy which
was propagated through the
religious state organs. A rm belief
that nature was static led to
doctrine which was also static and
increasingly stagnant. The sun
peeped across the horizon, was
seen to arc across the sky and
disappear as it ed the
tentacles of darkness. Truth was
based on observation. In the
truest sense, what could be
observed with the naked eye,
blinded all but the brave few.
Luckily the world of the unseen was
pondered by great men who took
even greater risks to pen their
thoughts. They took their scientic
gifts and liberally bequeathed
them to mankind. Galileo comes to
mind. His views on heliocentrism
were seen as a violation of the
Council of Trent. For his innovation,
he was sentenced to house arrest
for the remainder of his life.
We now understand that nature is
quite a bit more chaotic and
dynamic than the average human
ever imagined it to be. It is
nonlinear (or aperiodic) systems
which provide for such tremendous
variety in our universe. This
immense variety still submits to
mathematical rule, but the
expressive function can be
geometrically beautiful. Nonlinear
systems multiply uncertainty
because they never achieve a
steady state where they can
replicate themselves in exactly the
same manner. A world which is truly
changeless will soon cease to exist.
The same is true, for systems of
governance.
Good governance is meant to be
creative, expansive, and dare I say
it? It can be a bit chaotic too, when
it comes to opening up the process
to civilian participation in the
highest levels of government.
Problematic with the Gulf States
Constellation is the static and
stagnant nature of dynastic family
rule. Just as inbreeding increases
the likelihood of inherited
anomalies, ideological inbreeding
can also create unhealthy political
corpus. When looking at the GDP
(PPP) of the Gulf States it must be
remembered that a metric which
merely identies the capability to
acquire creature comforts does not
satisfy the greater drive for
freedom. History has
demonstrated a steady march of
the men who chose freedom with
n Pakistan, the tobacco industry
plays a pivotal economic role by
providing livelihood to more
than 1.5 million people
associated with the industry
throughout its supply chain, ranging
from farming to manufacturing and
from distribution to retail. Thus, this
industry is eradicating the
unemployment in the country by
employing 75,000 people across the
country, which increases to 245,000
people at retail and distribution
level leading to 1.15 million people
at gross national level.
Tobacco industry is also adhering to
collaborate in achieving desired
GDP level as has been envisaged for
a developing country like Pakistan
by adding its share ranging from
investment of Rs15+billion to tax
contribution of Rs 75+billion in
scal year 2013-14. Approximately
Rs 55 billion are being earned by
people associated with aforesaid
industry on annual basis.
Besides above mentioned facts,
approximately Rs 22+billion are
being earned by tobacco
manufacturing sector which also
serves as an incentive for foreign
investment in the prescribed sector
at various levels ranging from
farming to manufacturing and from
distribution to retail.
Here, it is to be remembered that
Tobacco yield in Pakistan is 13%
higher than global average. This has
been made possible by the initiation
of farmer extension programs by
tobacco industry leading to
agronomy support, guidance on crop
management and environmental
friendly practices with the
collaboration of Pakistan Tobacco
Board & Provincial Agricultural
Department. It has resulted in higher
yield of crop than global average
which caused positive impact of Rs
2.5+billion on BOP besides tax
contribution to the country while
other crops of the same land are
showing negative growth.
But it is a dilemma of our policy
makers and policy making
institutions that owing to high
taxation, the tax compliant industry
faces severe challenges from
non-paid duty illicit sectors which
harms the industry as well as the
economy as a whole. Pakistans
illicit cigarette trade comprises
mainly of local duty- evaded,
smuggled and counterfeit product.
Of these three, local duty evaded
cigarettes have the dominant share
unlike the global norm where
smuggled cigarettes are usually the
real cause of concern. It is note
worthy for the concerned
authorities that local duty evaded
cigarettes constitute 85% of the
total illicit market while 15% are
smuggled cigarettes. This rate of
growth is alarming and the taxation
policy coupled with weak
enforcement continues to propel
illicit volumes higher.
The two key drivers responsible for
this illicit cigarette sector are high
tax incidents and non-compliance of
relevant laws. In 2013, WTO
communicated the fact that 59.5%
is global average of total tax burden
on cigarettes where as in Pakistan,
taxes make up (71-81) %of the
retail price of a cigarette pack.
Adhering to low per capita income in
Pakistan, this is a grim situation for
consumers.
These non-compliant factors lead
towards domestic tax evasion,
counterfeiting and cross border
smuggling, creating anomalous
problems for government,
legitimate industry players and
society at large. It deprives
government of its due revenue
rendering the government to levy
more indirect taxes in order to cover
budget decit of concerned industry
and ultimately the burden falls on
consumers shoulders leading to
socio economic adversities. Rs
90+billion has been lost by
Government of Pakistan from the
sale of duty evaded cigarettes
between 2009-2013 and a loss ofRs
100+billion has been anticipated for
the next 5 years.
It is need of the hour to address such
issues causing adverse eects on
economy which can only be
accomplished by giving rise to
awareness among stake holders to
discourage this malpractice.
Government needs to execute a
comprehensive strategy to build
capacity of law enforcements
ocials with the help of third party
audits, disclosure of bank accounts,
submission of Audited Bank
Accounts to FBR, sealing of excess
manufacturing capacity and to
facilitate this enforcement by
mobile courts and incentives.
I
MUHAMMAD BILAL KHAN
The writer is a correspondent for
Monthly Economic Aairs.
Email: bilalpunnu@gmail.com
MAY 2014 33
www. economi cafai r s. com. pk
INTERVIEW
ahrain, Kuwait, Oman,
Saudi Arabia, Qatar and
the UAE are the trading
block which form a
constellation known as the Gulf
States. The CCASG was established
25 May 1981. The Sultanate of
Oman and the Kingdom of Saudi
Arabia have an absolute monarchy.
The UAE has a federal monarchy.
Bahrain, Kuwait and Qatar have a
system of constitutional monarchy,
albeit Kuwait also supports a
parliamentary system of
governance. This constellation has
a strong showing within a country
comparison of GDP per capita on a
purchasing power parity basis
(using the metric of international
dollars). In 2013, Qatar was the
richest nation in the world with a
per capita GDP (PPP) of over
105,000 dollars. The UAE and
Kuwait are also rmly ensconced
within the top twenty.
Approximately one-third of
Western Europeans also live under
a monarchy form of governance.
The majority are Constitutional
monarchies, which means the head
of state is vastly limited in use of
executive at, or the monarch
declines to utilize the powers
invested in the oce by
convention. There are two
exceptions: Liechtenstein and the
Vatican City. The former, is
considered a semi-constitutional
monarchy due to the sway which
the prince still has on national
politics. The latter, is a theocratic
absolute elective monarchy. Public
opinion polls currently show a high
level of support for the families of
the monarchs and the role assumed
within modern society.
There is something that I know, and
I feel it deep within my bones.
Kingdoms do not last forever; at
personal lack as a
preferred course of
life; and many such
men still exist.
The beauty of
democracy is that in
truest form it allows
for an expansion of
human liberty.
From a place of
human liberty,
citizens can achieve
their highest potential. Happiness
is tightly tied to a universal triad:
freedom of religion, freedom of
expression and freedom of
conscience. Much of the
unhappiness which has been
expressed throughout this wintry
season known as the Arab Spring
has been directed against dynastic
forms of governance which lack the
variety which is noted within
non-linear systems. The systems
can show such minute changes that
they can be hard to detect. But the
change is there!
As Europeans moved toward
enlightenment in science, they also
moved toward enlightenment in
their religious beliefs. These subtle
shifts in perception sculpted the
constitutional monarchies which
exist today.
I stated earlier that kingdoms do
not last forever. Only the people
and their soil remain. The last
imperial dynasty of Russia was the
House of Romanov. It lasted from
1613-1917. My personal library
contains a lovely book: Royal
Russia: The Private Albums of the
Russian Imperial Family. The
selection is from the James Blair
Lovell archive with
accompanying text by Carol
Townend. The images are
stunning. But as with many
tumultuous events in history,
things change forever in a
moment of time. The princesses
died wearing the Romanov family
jewels sewn into their corsets. That,
of course, is the nature of political
chaos.
least not in original form. Only the
people and their soil remain. The
Gulf State dynasties may not
survive the century. Why do I write
such a startling thought? Perhaps it
is because I know there is
something within man's spirit
which craves freedom. He is born
with it and none can take it away.
This quest for expanded freedom in
my own life causes me to cling to
the motto used by Henry David
Thoreau as the opening salvo for
his pamphlet, Civil Disobedience:
That government is best which
governs least.
Good governance, mimics in great
part, non-linear systems found in
nature. The natural order of things
is meant to teach us how to manage
the practical nature of this business
of social contract between men.
In classical antiquity it was
believed that natural order was
based on a static existence. This
belief fed into the orthodoxy which
was propagated through the
religious state organs. A rm belief
that nature was static led to
doctrine which was also static and
increasingly stagnant. The sun
peeped across the horizon, was
seen to arc across the sky and
disappear as it ed the
tentacles of darkness. Truth was
based on observation. In the
truest sense, what could be
observed with the naked eye,
blinded all but the brave few.
Luckily the world of the unseen was
pondered by great men who took
even greater risks to pen their
thoughts. They took their scientic
gifts and liberally bequeathed
them to mankind. Galileo comes to
mind. His views on heliocentrism
were seen as a violation of the
Council of Trent. For his innovation,
he was sentenced to house arrest
for the remainder of his life.
We now understand that nature is
quite a bit more chaotic and
dynamic than the average human
ever imagined it to be. It is
nonlinear (or aperiodic) systems
which provide for such tremendous
variety in our universe. This
immense variety still submits to
mathematical rule, but the
expressive function can be
geometrically beautiful. Nonlinear
systems multiply uncertainty
because they never achieve a
steady state where they can
replicate themselves in exactly the
same manner. A world which is truly
changeless will soon cease to exist.
The same is true, for systems of
governance.
Good governance is meant to be
creative, expansive, and dare I say
it? It can be a bit chaotic too, when
it comes to opening up the process
to civilian participation in the
highest levels of government.
Problematic with the Gulf States
Constellation is the static and
stagnant nature of dynastic family
rule. Just as inbreeding increases
the likelihood of inherited
anomalies, ideological inbreeding
can also create unhealthy political
corpus. When looking at the GDP
(PPP) of the Gulf States it must be
remembered that a metric which
merely identies the capability to
acquire creature comforts does not
satisfy the greater drive for
freedom. History has
demonstrated a steady march of
the men who chose freedom with
MAY 2014 34
www. economi cafai r s. com. pk
ECONOMY
rivatization has been the
order of the new era. In
the last two decades or
more, global economy has
seen more and more of
privatization. We have seen that
the number of transactions across
the globe have risen and the size
and value has also increased.
The decision to privatize
government owned entities in the
country brought the subject to the
lime light. The debate that has been
going on for some time has been
reinvigorated again with both the
camps, for and against
privatization, coming up with
everything in their arsenal of
arguments.
It is hard to nd a country that has
not embarked on a privatization
program. Malaysia has sold its
National Lottery; Buenos Aires its
zoo, Poland has privatized its glass
and picture tube factories, etc. etc.
Margret Thatcher noted in one of
her articles citing the Economist:
Nationalization, once all the rage is
out; privatization is in. And the
followers of the new fashion are of
the left, the right and all hues in
between.
The new thought says that
ownership is a signicant
determinant of enterprise
performance. In both developed
and developing countries, good
SOE performance has been very
dicult to bring about and even
harder to sustain. Those who prefer
state ownership advice for the
induction of highly paid and
obviously motivated managers
backed by changes in the systems
and incentive plans. Very often
governments comply and try to
improve performance by bringing
in new and dynamic managers and
paying them incentive salaries.
These measures sometimes have a
positive eect. But as the crisis
dissipates, so does political resolve.
Political interference is a common
syndrome of SOEs and it tends to
re-emerge. According to a World
Bank Study in Korea, where reform
short of ownership change ended
losses in a group of SOEs for three
years in the mid-1980s, large
decits reappeared later on. In New
Zealand and Japan, SOE reforms
were successful only when done in
conjunction with privatization.
SOE reforms have been seen as
limited and unmaintainable by
many governments. The burden of
funding loss-makers has put the
poor governments to opt for
privatization. Same is the case in
Pakistan where the giants owned by
the weak state are bleeding our
anemic economy to death. The only
good these SOEs are doing is
providing nice job opportunities
with magnicent titles to the
mighty bureaucrats and an ever
obliging employment exchange to
the politicians.
While going over some articles I
read a report published in 1992 by
the World Bank written by
SunitaKikeri, John Nellis and Mary
Shirley. They concluded that
Privatization is not a blanket
solution for the problems of poorly
performing SOEs. It cannot in and of
itself make up totally for lack of
competition, for weak capital
markets, or for the absence of an
appropriate regulatory framework.
They synthesized a few lessons to
make privatization a fruitful
process. In their view, it works best
when a larger program of reforms is
underway and privatization ts into
that. In the countries where
successful privatization happened
like New Zealand, UK and Mexico it
was accompanied by reforms to
open markets, removing price and
exchange rate distortions, and
encouraging the development of
the private enterprise. It has
worked best where regulations
have been created to protect
consumers. Improving competition
and reduction of monopoly has
been a part of such reforms.
In our context the privatization of
P
"SOE reforms have been seen as limited and unmaintainable by many
governments. The burden of funding loss-makers has put the poor
governments to opt for privatization. Same is the case in Pakistan
where the giants owned by the weak state are bleeding our anemic
economy to death. The only good these SOEs are doing is providing
nice job opportunities with magnifcent titles to the mighty bureau-
crats and an ever obliging employment exchange to the politicians."
PRIVATIZATION
How and for what
Chairman of Pakistan's Privatisation Commission
Mohammad Zubair
price, especially for the
underprivileged working class of
these SOEs. Privatizations have
been followed by large scale
downsizing. This gives rise to a lot
of apprehension that also becomes
a motivation for the stakeholders to
rise against the idea. Government
can help by developing a safety net
for the employees. This may
include a generous severance
package encouraging voluntary
departures precluding the need of
painful downsizing. Other ways of
creating such safety nets may
include employee ownership
schemes thereby making the
employees become part of the
shareholder community and
retraining the employees for other
suitable trades so that they may get
re-employed either with the same
company or with some other
business. These measures will
reduce the problems of the
employees and also add to
productive work force of the
country.
In the same way privatization must
help in changing the public-private
mix in the economy. This can be
brought about by encouraging the
growth of a dynamic private sector
by creating an enabling
environment. In Pakistan the
biggest hurdle in this enabling
environment is red-tapism and
corruption. Though corruption gets
a lot of attention and obviously a
volley of statements from the top
political leadership but In-action
goes unpunished. Rather
sometimes inaction is rewarded as
those who do nothing and neither
allow anyone to do anything get
away with ying colours when
judged for corruption. But this
menace of inaction damages the
private sector in the same manner
as corruption does.
If we are sincere in turning around
the economy and bringing in
eciency in the SOEs by
privatization we need to take into
account the lessons learnt from the
past experiences all over the
globe.
larger companies like OGDCL there
has to be a detailed preparation
and homework before they are
brought to the block. This
preparation includes the scoping of
the assets, thereby identifying what
we have on the books which are
valued properly and what we do not
have in a proper valuation on the
books. Further if larger
organizations require injection of
cash or modernization or induction
of machinery or aircrafts as in the
case of PIA that has to be left for the
next phase when the private
sponsors come in, as privatization
is undertaken for the same reason
that new sponsors bring in capital
and make these investments. A few
ways in which this preparation has
happened across the globe in
successful privatizations: breaking
the organization into competitive
and marketable units, bringing in
dynamic private sector managers
(this has been done in airline sales
around the world) and settling past
liabilities. In Argentina while
privatizing the steel and railways,
they shed excess labor. It sounds
familiar as Pakistan Railways and
PIA are notoriously high on the
number of employees per
operative unit of their business
assets.
While talking about the regulatory
framework, I am reminded of
another book published by the
World Bank. Commenting on the
objectives and strategy for the
privatization in their book,
Privatization the lessons of
experience, John R Nellis and
Mary M. Shirley put forward the
conditions for success of any
privatization program. They have
enumerated two main aspects
which will aect the strategy and
outcome of the privatization. One
of them is the macroeconomic
policy framework of the country
and the other is the nature of the
market where the enterprise is
ooaded. As far as the rst one is
concerned, they think that a
well-developed institutional and
regulatory capacity has to exist for
a privatization program to become
successful and yield better
nancial economic results. For the
strength and eciency of this
macroeconomic framework, a
well-functioning legal structure is
very important. According to them
such a framework contains
important aspects of various
business laws, including the
competition law, dispute
settlement laws, etc. If we examine
how we are faring on this count we
can look at the World Bank report
on Doing Business. According to the
report of 2012, as far as the
regulatory quality is concerned
Pakistans performance was
somewhat better than the
developing countries of Asia,
however on the criteria of Rule of
Law and Control of Corruption,
Pakistan is performing lower than
the average of its peers in the
region. Similarly another important
area where our performance is not
up to the mark is Enforcing
contracts and Paying Taxes.
It goes without saying that the
whole process of privatization has
to be charted out in a manner that it
is fully transparent and should be
perceived as the same. Many
countries have taken the route of
competitive bidding, developing
objective criteria for selecting bids,
and creating a proper monitoring
process.
Privatization does come with its
ahrain, Kuwait, Oman,
Saudi Arabia, Qatar and
the UAE are the trading
block which form a
constellation known as the Gulf
States. The CCASG was established
25 May 1981. The Sultanate of
Oman and the Kingdom of Saudi
Arabia have an absolute monarchy.
The UAE has a federal monarchy.
Bahrain, Kuwait and Qatar have a
system of constitutional monarchy,
albeit Kuwait also supports a
parliamentary system of
governance. This constellation has
a strong showing within a country
comparison of GDP per capita on a
purchasing power parity basis
(using the metric of international
dollars). In 2013, Qatar was the
richest nation in the world with a
per capita GDP (PPP) of over
105,000 dollars. The UAE and
Kuwait are also rmly ensconced
within the top twenty.
Approximately one-third of
Western Europeans also live under
a monarchy form of governance.
The majority are Constitutional
monarchies, which means the head
of state is vastly limited in use of
executive at, or the monarch
declines to utilize the powers
invested in the oce by
convention. There are two
exceptions: Liechtenstein and the
Vatican City. The former, is
considered a semi-constitutional
monarchy due to the sway which
the prince still has on national
politics. The latter, is a theocratic
absolute elective monarchy. Public
opinion polls currently show a high
level of support for the families of
the monarchs and the role assumed
within modern society.
There is something that I know, and
I feel it deep within my bones.
Kingdoms do not last forever; at
personal lack as a
preferred course of
life; and many such
men still exist.
The beauty of
democracy is that in
truest form it allows
for an expansion of
human liberty.
From a place of
human liberty,
citizens can achieve
their highest potential. Happiness
is tightly tied to a universal triad:
freedom of religion, freedom of
expression and freedom of
conscience. Much of the
unhappiness which has been
expressed throughout this wintry
season known as the Arab Spring
has been directed against dynastic
forms of governance which lack the
variety which is noted within
non-linear systems. The systems
can show such minute changes that
they can be hard to detect. But the
change is there!
As Europeans moved toward
enlightenment in science, they also
moved toward enlightenment in
their religious beliefs. These subtle
shifts in perception sculpted the
constitutional monarchies which
exist today.
I stated earlier that kingdoms do
not last forever. Only the people
and their soil remain. The last
imperial dynasty of Russia was the
House of Romanov. It lasted from
1613-1917. My personal library
contains a lovely book: Royal
Russia: The Private Albums of the
Russian Imperial Family. The
selection is from the James Blair
Lovell archive with
accompanying text by Carol
Townend. The images are
stunning. But as with many
tumultuous events in history,
things change forever in a
moment of time. The princesses
died wearing the Romanov family
jewels sewn into their corsets. That,
of course, is the nature of political
chaos.
least not in original form. Only the
people and their soil remain. The
Gulf State dynasties may not
survive the century. Why do I write
such a startling thought? Perhaps it
is because I know there is
something within man's spirit
which craves freedom. He is born
with it and none can take it away.
This quest for expanded freedom in
my own life causes me to cling to
the motto used by Henry David
Thoreau as the opening salvo for
his pamphlet, Civil Disobedience:
That government is best which
governs least.
Good governance, mimics in great
part, non-linear systems found in
nature. The natural order of things
is meant to teach us how to manage
the practical nature of this business
of social contract between men.
In classical antiquity it was
believed that natural order was
based on a static existence. This
belief fed into the orthodoxy which
was propagated through the
religious state organs. A rm belief
that nature was static led to
doctrine which was also static and
increasingly stagnant. The sun
peeped across the horizon, was
seen to arc across the sky and
disappear as it ed the
tentacles of darkness. Truth was
based on observation. In the
truest sense, what could be
observed with the naked eye,
blinded all but the brave few.
Luckily the world of the unseen was
pondered by great men who took
even greater risks to pen their
thoughts. They took their scientic
gifts and liberally bequeathed
them to mankind. Galileo comes to
mind. His views on heliocentrism
were seen as a violation of the
Council of Trent. For his innovation,
he was sentenced to house arrest
for the remainder of his life.
We now understand that nature is
quite a bit more chaotic and
dynamic than the average human
ever imagined it to be. It is
nonlinear (or aperiodic) systems
which provide for such tremendous
variety in our universe. This
immense variety still submits to
mathematical rule, but the
expressive function can be
geometrically beautiful. Nonlinear
systems multiply uncertainty
because they never achieve a
steady state where they can
replicate themselves in exactly the
same manner. A world which is truly
changeless will soon cease to exist.
The same is true, for systems of
governance.
Good governance is meant to be
creative, expansive, and dare I say
it? It can be a bit chaotic too, when
it comes to opening up the process
to civilian participation in the
highest levels of government.
Problematic with the Gulf States
Constellation is the static and
stagnant nature of dynastic family
rule. Just as inbreeding increases
the likelihood of inherited
anomalies, ideological inbreeding
can also create unhealthy political
corpus. When looking at the GDP
(PPP) of the Gulf States it must be
remembered that a metric which
merely identies the capability to
acquire creature comforts does not
satisfy the greater drive for
freedom. History has
demonstrated a steady march of
the men who chose freedom with
rivatization has been the
order of the new era. In
the last two decades or
more, global economy has
seen more and more of
privatization. We have seen that
the number of transactions across
the globe have risen and the size
and value has also increased.
The decision to privatize
government owned entities in the
country brought the subject to the
lime light. The debate that has been
going on for some time has been
reinvigorated again with both the
camps, for and against
privatization, coming up with
everything in their arsenal of
arguments.
It is hard to nd a country that has
not embarked on a privatization
program. Malaysia has sold its
National Lottery; Buenos Aires its
zoo, Poland has privatized its glass
and picture tube factories, etc. etc.
Margret Thatcher noted in one of
her articles citing the Economist:
Nationalization, once all the rage is
out; privatization is in. And the
followers of the new fashion are of
the left, the right and all hues in
between.
The new thought says that
ownership is a signicant
determinant of enterprise
performance. In both developed
and developing countries, good
SOE performance has been very
dicult to bring about and even
harder to sustain. Those who prefer
state ownership advice for the
induction of highly paid and
obviously motivated managers
backed by changes in the systems
and incentive plans. Very often
governments comply and try to
improve performance by bringing
in new and dynamic managers and
paying them incentive salaries.
These measures sometimes have a
positive eect. But as the crisis
dissipates, so does political resolve.
Political interference is a common
syndrome of SOEs and it tends to
re-emerge. According to a World
Bank Study in Korea, where reform
short of ownership change ended
losses in a group of SOEs for three
years in the mid-1980s, large
decits reappeared later on. In New
Zealand and Japan, SOE reforms
were successful only when done in
conjunction with privatization.
SOE reforms have been seen as
limited and unmaintainable by
many governments. The burden of
funding loss-makers has put the
poor governments to opt for
privatization. Same is the case in
Pakistan where the giants owned by
the weak state are bleeding our
anemic economy to death. The only
good these SOEs are doing is
providing nice job opportunities
with magnicent titles to the
mighty bureaucrats and an ever
obliging employment exchange to
the politicians.
While going over some articles I
read a report published in 1992 by
the World Bank written by
SunitaKikeri, John Nellis and Mary
Shirley. They concluded that
Privatization is not a blanket
solution for the problems of poorly
performing SOEs. It cannot in and of
itself make up totally for lack of
competition, for weak capital
markets, or for the absence of an
appropriate regulatory framework.
They synthesized a few lessons to
make privatization a fruitful
process. In their view, it works best
when a larger program of reforms is
underway and privatization ts into
that. In the countries where
successful privatization happened
like New Zealand, UK and Mexico it
was accompanied by reforms to
open markets, removing price and
exchange rate distortions, and
encouraging the development of
the private enterprise. It has
worked best where regulations
have been created to protect
consumers. Improving competition
and reduction of monopoly has
been a part of such reforms.
In our context the privatization of
price, especially for the
underprivileged working class of
these SOEs. Privatizations have
been followed by large scale
downsizing. This gives rise to a lot
of apprehension that also becomes
a motivation for the stakeholders to
rise against the idea. Government
can help by developing a safety net
for the employees. This may
include a generous severance
package encouraging voluntary
departures precluding the need of
painful downsizing. Other ways of
creating such safety nets may
include employee ownership
schemes thereby making the
employees become part of the
shareholder community and
retraining the employees for other
suitable trades so that they may get
re-employed either with the same
company or with some other
business. These measures will
reduce the problems of the
employees and also add to
productive work force of the
country.
In the same way privatization must
help in changing the public-private
mix in the economy. This can be
brought about by encouraging the
growth of a dynamic private sector
by creating an enabling
environment. In Pakistan the
biggest hurdle in this enabling
environment is red-tapism and
corruption. Though corruption gets
a lot of attention and obviously a
volley of statements from the top
political leadership but In-action
goes unpunished. Rather
sometimes inaction is rewarded as
those who do nothing and neither
allow anyone to do anything get
away with ying colours when
judged for corruption. But this
menace of inaction damages the
private sector in the same manner
as corruption does.
If we are sincere in turning around
the economy and bringing in
eciency in the SOEs by
privatization we need to take into
account the lessons learnt from the
past experiences all over the
globe.
MAY 2014 35
www. economi cafai r s. com. pk
ECONOMY
larger companies like OGDCL there
has to be a detailed preparation
and homework before they are
brought to the block. This
preparation includes the scoping of
the assets, thereby identifying what
we have on the books which are
valued properly and what we do not
have in a proper valuation on the
books. Further if larger
organizations require injection of
cash or modernization or induction
of machinery or aircrafts as in the
case of PIA that has to be left for the
next phase when the private
sponsors come in, as privatization
is undertaken for the same reason
that new sponsors bring in capital
and make these investments. A few
ways in which this preparation has
happened across the globe in
successful privatizations: breaking
the organization into competitive
and marketable units, bringing in
dynamic private sector managers
(this has been done in airline sales
around the world) and settling past
liabilities. In Argentina while
privatizing the steel and railways,
they shed excess labor. It sounds
familiar as Pakistan Railways and
PIA are notoriously high on the
number of employees per
operative unit of their business
assets.
While talking about the regulatory
framework, I am reminded of
another book published by the
World Bank. Commenting on the
objectives and strategy for the
privatization in their book,
Privatization the lessons of
experience, John R Nellis and
Mary M. Shirley put forward the
conditions for success of any
privatization program. They have
enumerated two main aspects
which will aect the strategy and
outcome of the privatization. One
of them is the macroeconomic
policy framework of the country
and the other is the nature of the
market where the enterprise is
ooaded. As far as the rst one is
concerned, they think that a
well-developed institutional and
regulatory capacity has to exist for
a privatization program to become
successful and yield better
nancial economic results. For the
strength and eciency of this
macroeconomic framework, a
well-functioning legal structure is
very important. According to them
such a framework contains
important aspects of various
business laws, including the
competition law, dispute
settlement laws, etc. If we examine
how we are faring on this count we
can look at the World Bank report
on Doing Business. According to the
report of 2012, as far as the
regulatory quality is concerned
Pakistans performance was
somewhat better than the
developing countries of Asia,
however on the criteria of Rule of
Law and Control of Corruption,
Pakistan is performing lower than
the average of its peers in the
region. Similarly another important
area where our performance is not
up to the mark is Enforcing
contracts and Paying Taxes.
It goes without saying that the
whole process of privatization has
to be charted out in a manner that it
is fully transparent and should be
perceived as the same. Many
countries have taken the route of
competitive bidding, developing
objective criteria for selecting bids,
and creating a proper monitoring
process.
Privatization does come with its
KASHIF MATEEN ANSARI
The writer is the CEO of a power
project and can be reached at
kashifmateenansari@post.harvard.edu
ahrain, Kuwait, Oman,
Saudi Arabia, Qatar and
the UAE are the trading
block which form a
constellation known as the Gulf
States. The CCASG was established
25 May 1981. The Sultanate of
Oman and the Kingdom of Saudi
Arabia have an absolute monarchy.
The UAE has a federal monarchy.
Bahrain, Kuwait and Qatar have a
system of constitutional monarchy,
albeit Kuwait also supports a
parliamentary system of
governance. This constellation has
a strong showing within a country
comparison of GDP per capita on a
purchasing power parity basis
(using the metric of international
dollars). In 2013, Qatar was the
richest nation in the world with a
per capita GDP (PPP) of over
105,000 dollars. The UAE and
Kuwait are also rmly ensconced
within the top twenty.
Approximately one-third of
Western Europeans also live under
a monarchy form of governance.
The majority are Constitutional
monarchies, which means the head
of state is vastly limited in use of
executive at, or the monarch
declines to utilize the powers
invested in the oce by
convention. There are two
exceptions: Liechtenstein and the
Vatican City. The former, is
considered a semi-constitutional
monarchy due to the sway which
the prince still has on national
politics. The latter, is a theocratic
absolute elective monarchy. Public
opinion polls currently show a high
level of support for the families of
the monarchs and the role assumed
within modern society.
There is something that I know, and
I feel it deep within my bones.
Kingdoms do not last forever; at
personal lack as a
preferred course of
life; and many such
men still exist.
The beauty of
democracy is that in
truest form it allows
for an expansion of
human liberty.
From a place of
human liberty,
citizens can achieve
their highest potential. Happiness
is tightly tied to a universal triad:
freedom of religion, freedom of
expression and freedom of
conscience. Much of the
unhappiness which has been
expressed throughout this wintry
season known as the Arab Spring
has been directed against dynastic
forms of governance which lack the
variety which is noted within
non-linear systems. The systems
can show such minute changes that
they can be hard to detect. But the
change is there!
As Europeans moved toward
enlightenment in science, they also
moved toward enlightenment in
their religious beliefs. These subtle
shifts in perception sculpted the
constitutional monarchies which
exist today.
I stated earlier that kingdoms do
not last forever. Only the people
and their soil remain. The last
imperial dynasty of Russia was the
House of Romanov. It lasted from
1613-1917. My personal library
contains a lovely book: Royal
Russia: The Private Albums of the
Russian Imperial Family. The
selection is from the James Blair
Lovell archive with
accompanying text by Carol
Townend. The images are
stunning. But as with many
tumultuous events in history,
things change forever in a
moment of time. The princesses
died wearing the Romanov family
jewels sewn into their corsets. That,
of course, is the nature of political
chaos.
least not in original form. Only the
people and their soil remain. The
Gulf State dynasties may not
survive the century. Why do I write
such a startling thought? Perhaps it
is because I know there is
something within man's spirit
which craves freedom. He is born
with it and none can take it away.
This quest for expanded freedom in
my own life causes me to cling to
the motto used by Henry David
Thoreau as the opening salvo for
his pamphlet, Civil Disobedience:
That government is best which
governs least.
Good governance, mimics in great
part, non-linear systems found in
nature. The natural order of things
is meant to teach us how to manage
the practical nature of this business
of social contract between men.
In classical antiquity it was
believed that natural order was
based on a static existence. This
belief fed into the orthodoxy which
was propagated through the
religious state organs. A rm belief
that nature was static led to
doctrine which was also static and
increasingly stagnant. The sun
peeped across the horizon, was
seen to arc across the sky and
disappear as it ed the
tentacles of darkness. Truth was
based on observation. In the
truest sense, what could be
observed with the naked eye,
blinded all but the brave few.
Luckily the world of the unseen was
pondered by great men who took
even greater risks to pen their
thoughts. They took their scientic
gifts and liberally bequeathed
them to mankind. Galileo comes to
mind. His views on heliocentrism
were seen as a violation of the
Council of Trent. For his innovation,
he was sentenced to house arrest
for the remainder of his life.
We now understand that nature is
quite a bit more chaotic and
dynamic than the average human
ever imagined it to be. It is
nonlinear (or aperiodic) systems
which provide for such tremendous
variety in our universe. This
immense variety still submits to
mathematical rule, but the
expressive function can be
geometrically beautiful. Nonlinear
systems multiply uncertainty
because they never achieve a
steady state where they can
replicate themselves in exactly the
same manner. A world which is truly
changeless will soon cease to exist.
The same is true, for systems of
governance.
Good governance is meant to be
creative, expansive, and dare I say
it? It can be a bit chaotic too, when
it comes to opening up the process
to civilian participation in the
highest levels of government.
Problematic with the Gulf States
Constellation is the static and
stagnant nature of dynastic family
rule. Just as inbreeding increases
the likelihood of inherited
anomalies, ideological inbreeding
can also create unhealthy political
corpus. When looking at the GDP
(PPP) of the Gulf States it must be
remembered that a metric which
merely identies the capability to
acquire creature comforts does not
satisfy the greater drive for
freedom. History has
demonstrated a steady march of
the men who chose freedom with
MAY 2014 36
www. economi cafai r s. com. pk
AGRICULTURE
attered by erratic weather
patterns with decreasing
and delayed rainfall,
thousands of farmers in
Pakistans northeast Potohar plateau
are moving to beekeeping as an
alternative source of livelihood that
is less vulnerable to climate change.
A single ood, no or decient rain in
one cropping season, or
non-availability of water in the river
system due to delayed glacial melt
can ruin farmers livelihoods.
However, training farmers in
alternative climate-resilient
livelihoods like beekeeping can go a
long way in making farming
communities resilient to climate
change impacts, said Dr. Zafar Iqbal,
former chairperson of the National
Disaster Management Authority, in
Pakistans capital Islamabad.
The fact that many farmers nd
beekeeping a more protable
alternative and therefore reduce
farming or completely shun it has its
own impact on food security. But it
has kept the home res burning in
many homes in Potohar a
sprawling region spread over 28,489
square km between the Indus and
the Jhelum rivers, stretching till
foothills of the Himalayas. Around
70 percent of rain in the region is
received between July and August.
Because of erratic weather patterns
and unreliable crop harvests, our
income had become irregular and
was declining. But the beehives give
us regular income, said Hakim
Khan, a beekeeper in Ghool village
of Chakwal district, about 90 km
southeast of Islamabad.
The district --- one of the four in
Potohar along with Attock,
Rawalpindi and Jhelum is known
for its exportable quality of
groundnuts and stretches over
6,500 square km of semi-arid
terrain. It has a population of nearly
1.5 million and relies entirely on the
rains for cultivation of crops.
It was known as a pluvial area for
abundant rain. However, the
situation has changed over the
years. Till 1998, it would receive
around 1,200 mm rainfall annually.
This has come down to less than 900
mm, according to the Pakistan
Meteorological Department.
Groundnut and wheat farmer Jehan
Khan in Ghool village is one of those
who have suered. His groundnut
output came down 60 percent and
the wheat crop dipped by 30
percent last year. Last year, per acre
yield of the groundnut crop was less
than 200 kg. There was 70 percent
less rain during the sowing season
March-April, he said.
A target of 70,000 acres was set for
last years groundnut sowing
season. But hardly 50 percent of the
target could be achieved in August
because of the short rain spell,
Mohammad Khalid, Chakwal district
agriculture ocer, told this scribe.
For wheat, rains were needed in
November and December last year.
But it rained in late December, that
too in patches, he said, adding that
the wheat crop was likely to be 30
percent less this year.
Game-changer
In this scenario, beekeeping has
been a virtual saviour for many
families in the area. Hakim Khan
from Ghool, for instance, survived
the poor harvest by taking to
beekeeping. He also continues to
grow groundnut.
The additional income from
beekeeping has helped me survive
crop losses. I adopted beekeeping
three years ago to cover up income
losses from the groundnut crop,
Khan said while examining the
wooden bee boxes on a plot
adjacent to his groundnut eld.
He was amongst the lucky ones
trained in beekeeping -- producing
honey, hives and wax -- by the
Pakistan Poverty Alleviation Fund
(PPAF) under the Drought Mitigation
and Preparedness Project. Farmers
in various villages of Chakwal
district have also been provided
with nancial aid.
In a ripple eect, Khan has taught
other farmers about beekeeping and
B
PAKISTANS
Climate Change with
Bee Farming
FARMERS TACKLE
Pakistan and trained as many as
9,000 people, including women, in
the beekeeping business.
Of the 100 crop species that provide
90 percent of the world's food, over
70 are pollinated by bees, according
to the UNEP study, Global Bee
Colony Disorders and Other Threats
to Insect Pollinators.
The business of bees -- essential to
pollinate crops, fruits and vegetables
such as cotton, sunower, carrot,
cabbage and apple -- itself is under
threat. According to HBRI senior
scientic ocer Ghulam Sarwar,
though there is no indication that
bees are declining in the country,
there is the possibility that bee
colonies are in danger from global
warming.
Some species of bees could face
extinction while their declining
numbers could harm the harvest of
crops such as apples, he said.
According to Inter-Government
Panel on Climate Change (IPCC)
reports, climate change, after
land-use changes, could be deemed
the second most relevant factor
responsible for the pollinators
decline.
Climate change is a juggernaut and
we are not going to be able to slow it
down in the next 10 or 20 years, so
we need to do something much
more quickly: providing good
quality habitats for bees and trying
to reduce other pressures on them
such as habitat loss and the impact
of pesticides, Amir said.
its benets. I learnt about the
economic benets of less labour and
investment (in beekeeping) Now,
more and more farmers are
approaching me to learn about
beekeeping, he said.
Citing an example, he said, a
groundnut farmer-turned-beekeeper
who purchased 10 wooden boxes of
hives for Pakistani Rs.34,000 (approx
$347) three years ago now has 90
boxes worth Pakistani Rs.1,020,000
(approx $10,400).
Alternative livelihood plans like
beekeeping can denitely help
farming communities adapt to
shifting weather patterns and
mitigate the negative impacts on
their socio-economic lives, said Raja
Munir Hussain Janjua, regional
programme ocer at the National
Rural Support Programme.
Zafar Pervez Sabri, senior climate
change mitigation and adaptation
expert at PPAF, added that farmers
were being trained in dierent
trades under the Drought Mitigation
and Preparedness Project.
we intend to build up climate
resilience of farmers and their
livelihoods and impart them
[farmers] knowledge and skills in
alternative livelihoods, he said,
adding that the eort was to ensure
that farmers keep on growing crops
even if their income from them
drops as the eects of drought
becomes more evident.
This would help avoid food
insecurity issues, he said.
About 1,150 farmers in Chakwal had
been trained in beekeeping, many of
whom had already shown visible
improvement in lifestyle.
Having seen tangible
socio-economic impacts on the lives
of farming communities in
drought-prone Chakwal district, we
have planned to expand these
alternative livelihood plans to
dierent parts of Pakistan,
particularly Bhawalpur and
Tharparkar districts. Crop failures are
common phenomena in these
rain-fed areas too, he said.
According to former National
Disaster Management Authority
Chief Iqbal, the Pakistan Agriculture
Research Council could play a vital
role in making farming
climate-resilient by launching
alternative livelihood programmes
like beekeeping on a wider level.
Bees and climate change
But the debate is on.
Agronomist and former member of
Pakistan Prime Ministers Task Force
on Climate Change Pervaiz Amir said
completely abandoning farming and
shifting to beekeeping was not a
good idea and not viable either.
After all, bees need also crops to
pollinate and make beeswax bees
need crops, owers, trees and fruits
for collecting pollen to make
beeswax, Amir said. We should,
however, combine beekeeping with
diversied crop production.
Under its Honeybee Programme, the
Honeybee Research Institute (HBRI)
of the Pakistan Agriculture Research
Council in Islamabad has so far
introduced bee farming all across
attered by erratic weather
patterns with decreasing
and delayed rainfall,
thousands of farmers in
Pakistans northeast Potohar plateau
are moving to beekeeping as an
alternative source of livelihood that
is less vulnerable to climate change.
A single ood, no or decient rain in
one cropping season, or
non-availability of water in the river
system due to delayed glacial melt
can ruin farmers livelihoods.
However, training farmers in
alternative climate-resilient
livelihoods like beekeeping can go a
long way in making farming
communities resilient to climate
change impacts, said Dr. Zafar Iqbal,
former chairperson of the National
Disaster Management Authority, in
Pakistans capital Islamabad.
The fact that many farmers nd
beekeeping a more protable
alternative and therefore reduce
farming or completely shun it has its
own impact on food security. But it
has kept the home res burning in
many homes in Potohar a
sprawling region spread over 28,489
square km between the Indus and
the Jhelum rivers, stretching till
foothills of the Himalayas. Around
70 percent of rain in the region is
received between July and August.
Because of erratic weather patterns
and unreliable crop harvests, our
income had become irregular and
was declining. But the beehives give
us regular income, said Hakim
Khan, a beekeeper in Ghool village
of Chakwal district, about 90 km
southeast of Islamabad.
The district --- one of the four in
Potohar along with Attock,
Rawalpindi and Jhelum is known
for its exportable quality of
groundnuts and stretches over
6,500 square km of semi-arid
terrain. It has a population of nearly
1.5 million and relies entirely on the
rains for cultivation of crops.
It was known as a pluvial area for
abundant rain. However, the
situation has changed over the
years. Till 1998, it would receive
around 1,200 mm rainfall annually.
This has come down to less than 900
mm, according to the Pakistan
Meteorological Department.
Groundnut and wheat farmer Jehan
Khan in Ghool village is one of those
who have suered. His groundnut
output came down 60 percent and
the wheat crop dipped by 30
percent last year. Last year, per acre
yield of the groundnut crop was less
than 200 kg. There was 70 percent
less rain during the sowing season
March-April, he said.
A target of 70,000 acres was set for
last years groundnut sowing
season. But hardly 50 percent of the
target could be achieved in August
because of the short rain spell,
Mohammad Khalid, Chakwal district
agriculture ocer, told this scribe.
For wheat, rains were needed in
November and December last year.
But it rained in late December, that
too in patches, he said, adding that
the wheat crop was likely to be 30
percent less this year.
Game-changer
In this scenario, beekeeping has
been a virtual saviour for many
families in the area. Hakim Khan
from Ghool, for instance, survived
the poor harvest by taking to
beekeeping. He also continues to
grow groundnut.
The additional income from
beekeeping has helped me survive
crop losses. I adopted beekeeping
three years ago to cover up income
losses from the groundnut crop,
Khan said while examining the
wooden bee boxes on a plot
adjacent to his groundnut eld.
He was amongst the lucky ones
trained in beekeeping -- producing
honey, hives and wax -- by the
Pakistan Poverty Alleviation Fund
(PPAF) under the Drought Mitigation
and Preparedness Project. Farmers
in various villages of Chakwal
district have also been provided
with nancial aid.
In a ripple eect, Khan has taught
other farmers about beekeeping and
Pakistan and trained as many as
9,000 people, including women, in
the beekeeping business.
Of the 100 crop species that provide
90 percent of the world's food, over
70 are pollinated by bees, according
to the UNEP study, Global Bee
Colony Disorders and Other Threats
to Insect Pollinators.
The business of bees -- essential to
pollinate crops, fruits and vegetables
such as cotton, sunower, carrot,
cabbage and apple -- itself is under
threat. According to HBRI senior
scientic ocer Ghulam Sarwar,
though there is no indication that
bees are declining in the country,
there is the possibility that bee
colonies are in danger from global
warming.
Some species of bees could face
extinction while their declining
numbers could harm the harvest of
crops such as apples, he said.
According to Inter-Government
Panel on Climate Change (IPCC)
reports, climate change, after
land-use changes, could be deemed
the second most relevant factor
responsible for the pollinators
decline.
Climate change is a juggernaut and
we are not going to be able to slow it
down in the next 10 or 20 years, so
we need to do something much
more quickly: providing good
quality habitats for bees and trying
to reduce other pressures on them
such as habitat loss and the impact
of pesticides, Amir said.
MAY 2014 37
www. economi cafai r s. com. pk
AGRICULTURE
its benets. I learnt about the
economic benets of less labour and
investment (in beekeeping) Now,
more and more farmers are
approaching me to learn about
beekeeping, he said.
Citing an example, he said, a
groundnut farmer-turned-beekeeper
who purchased 10 wooden boxes of
hives for Pakistani Rs.34,000 (approx
$347) three years ago now has 90
boxes worth Pakistani Rs.1,020,000
(approx $10,400).
Alternative livelihood plans like
beekeeping can denitely help
farming communities adapt to
shifting weather patterns and
mitigate the negative impacts on
their socio-economic lives, said Raja
Munir Hussain Janjua, regional
programme ocer at the National
Rural Support Programme.
Zafar Pervez Sabri, senior climate
change mitigation and adaptation
expert at PPAF, added that farmers
were being trained in dierent
trades under the Drought Mitigation
and Preparedness Project.
we intend to build up climate
resilience of farmers and their
livelihoods and impart them
[farmers] knowledge and skills in
alternative livelihoods, he said,
adding that the eort was to ensure
that farmers keep on growing crops
even if their income from them
drops as the eects of drought
becomes more evident.
This would help avoid food
insecurity issues, he said.
About 1,150 farmers in Chakwal had
been trained in beekeeping, many of
whom had already shown visible
improvement in lifestyle.
Having seen tangible
socio-economic impacts on the lives
of farming communities in
drought-prone Chakwal district, we
have planned to expand these
alternative livelihood plans to
dierent parts of Pakistan,
particularly Bhawalpur and
Tharparkar districts. Crop failures are
common phenomena in these
rain-fed areas too, he said.
According to former National
Disaster Management Authority
Chief Iqbal, the Pakistan Agriculture
Research Council could play a vital
role in making farming
climate-resilient by launching
alternative livelihood programmes
like beekeeping on a wider level.
Bees and climate change
But the debate is on.
Agronomist and former member of
Pakistan Prime Ministers Task Force
on Climate Change Pervaiz Amir said
completely abandoning farming and
shifting to beekeeping was not a
good idea and not viable either.
After all, bees need also crops to
pollinate and make beeswax bees
need crops, owers, trees and fruits
for collecting pollen to make
beeswax, Amir said. We should,
however, combine beekeeping with
diversied crop production.
Under its Honeybee Programme, the
Honeybee Research Institute (HBRI)
of the Pakistan Agriculture Research
Council in Islamabad has so far
introduced bee farming all across
SALEEM SHAIKH
AND
SUGHRA TUNIO
Hakim Khan takes out beehives to
inspect them in Ghool village of
the Chakwal district
Hakim Khan inspects beehive in
Ghool village of the Chakwal district
Hakim Khan inspects beehive in
Ghool village of the Chakwal district
Groundnut farmer Jehan Khan dries out
his produce in courtyard of his home in
Ghool village of the Chakwal district
MAY 2014 38
www. economi cafai r s. com. pk
On my arrival in the
United Kingdom the
religious aspect of the
country was the rst
thing that struck my attention.
Though religion is not formally a
part of the UK political system,
other extra political factors are
more important which UK political
democracy enjoys and are certain to
endure under any and all
foreseeable future political
arrangements. The future vitality of
religion is far less certain and the
role of religion forms one of the
most important themes of
reections on the blessings,
problems, and prospects of
democracy as such. The project of
establishing political democracy in
UK and Europe had been a failure.
Among the principal causes of this
failure is that the spirit of religion
and the spirit of freedom had
almost always been marching in
opposite directions.
When you try to assess the
contribution of the reformed strand
of Christianity to the rise of liberal
democracy it illustrates the
possibility of treating religion as a
cause of political phenomena. This
account however draws attention to
some complexities of causation that
are often overlooked in the
arguments over the role of religion
in politics. Many religious forces
and institutions in Europe, and the
French Catholic Church in particular,
were inclined to see democracy as
the inevitable and implacable
enemy of religion and hence were
opposed to the establishment of
democratic republics. Arguably
democracy can indeed become a
friend to religion and may even be
crucial to its future vitality but the
rst objective of discussion of
religion is to persuade the partisans
of religion and of democracy to join
forces.
Since 11 September 2001 the
international spotlight has been
more rmly than ever on the Muslim
world and the Middle East in
particular. All aspects of life in
Muslim societys history,
educational system, attitudes
towards the West, political and
economic systems, demography,
and foreign relations have been
examined by analysts in attempts to
examine the root causes of Islamist
militancy against the West. With
more than 10 million Muslims living
in Western Europe, states are
struggling to accommodate the
religious needs of Muslims in
state-supported institutions. Such
issues include whether to fund
separate Islamic schools and how or
whether to teach Islam in
state-supported schools.
Indeed, as the debate itself since
9/11 has been increasingly shaped
by priorities of West, whose
traditional interest in the Muslims
are driven by concerns about
international stability, Muslims
have tended to adopt an even more
skeptical posture. Whether forced
democratization can be eectively
administered adds a new and
interesting twist to the debates
surrounding Islam and democracy,
bringing new dimensions to the
already tangible impact of
geopolitical factors on Muslim
politics.If there is a fundamental
incompatibility between Islam and
democracy, 800 million Muslims
seem unaware of it. It is important
to understand that under Islam and
Sharia law, there is no mention that
democracy and having free
elections is prohibited, even though
the idea of anything remotely
connected to a democratic state is
'profoundly alien to the Muslim
political tradition. In fact it is
encouraged. Religion does have a
role to play, however even with or
without it factors such as the
economic and social state (being
just two of the many) of the country
can play a huge impact as well.
The government in these countries
themselves, welcomes the
diminution in the political
signicance of religious, cultural
and ethnic cleavages within
national societies, leaving economic
and class dierences as the most
important issues in political debate'
meaning that it was far easier to
switch between economic and
social issues rather than religious
ones and avoiding any conicts that
could have occurred.
Within the Christian tradition,
distinctions between Roman
Catholicism, Orthodox Christianity
and Protestantism matter. Religions
that contain and prescribe a holistic
view of society, especially
traditional Islam and Catholicism,
tend not to restrict the rise and
development of liberal
democracies, and civil liberties in
particular. Interestingly, moral and
ethical principles derived from the
Judeo-Christian tradition have been
a major source of democratic
values.
Religious bodies can avoid social
intolerance by acknowledging that
human imperfection clouds and
corrupts the judgments of all
institutions, including the churches,
or by limiting their social
pronouncement to broad moral
directives.
O
Does Religion Need
DEMOCRACY?
FAJAR FAWAD
The writer is a Forensic Psychologist
at the University of York and has
presented research papers at
International Psychiatry and
Psychology Conferences.
Chairperson, Hashoo Foundation,
Sarah Hashwani, addressing the audience.
Chairperson, Hashoo Foundation,
Sarah Hashwani addressing the guests at the Alumni event.
HASHOO FOUNDATION
First Alumni Get Together 2014
Country Director, Ali Akbar,Chairperson, Sarah Hashwani
and Patron-In-Chief, Hashoo Foundation, Sadruddin Hashwani
collectively present an award to Hashoo Foundation Alumnus.
Country Director, Hashoo Foundation,
Ali Akbar delivering an inspirational speech
at the Alumni event.
Karim, a Hashoo Foundation
Alumnus sharing his views.
The Hashoo Foundation Team from Lef to Right) Fouzia Qazi,
Aneela Rafque, Raheela Yasmin, Momina Abrar, Bushra Tahir
and Shenaila Nadeem at the Alumni event.
Hashoo Foundation Alumni anticipating the event entertainment.
MAY 2014 39
www. economi cafai r s. com. pk
INTERVIEW