Citizens’ despair
MUST our state be driven to action only after it has forced desperate citizens to grovel for something they should be morally entitled to? A large number of affectees of Karachi’s slipshod ‘development’ projects gathered on Sunday under the banner of the Ghar Bahali Rally to shake the authorities out of their stupor and address their plight. It may be recalled that the state has, in recent years, proceeded with the wholesale destruction of various irregular settlements along previously neglected nullahs and rail lines in Karachi. The affectees either lost their homes completely or were deprived of large parts of them as pathways were literally cut right through residences to make way for storm water drainage upgradation and intra-city transportation projects, etc. In response to widespread criticism by rights organisations of the manner in which people were being displaced, the state had promised to compensate the affectees by offering them either a rent support package or alternative accommodation. As the Sunday rally showed, those promises do not seem to have been kept in full.
This problem is not Karachi-specific. Our politicians are deeply fond of their grand ‘development’ projects but usually neglect to account for the negative externalities these may create. It is easy, and cruel, to write off the tragedies inflicted on those affected by them as something they somehow ‘deserve’ for ‘encroaching’ on state land. However, in many cases, the land in question is found to have been fraudulently ‘leased’ to the residents by unscrupulous elements from within state authorities. Even if that may not be the case, the state cannot just ignore its moral responsibility towards citizens whom it is depriving of the roof over their heads. In Karachi and elsewhere in the country, the state must act with compassion when dealing with those who stand to lose the most from its schemes and provide an adequate remedy for any losses citizens may have to bear.
Published in Dawn, July 11th, 2023
Population Day
AS the global community observes World Population Day today, a strange dilemma confronts humanity. In many developed states, such as Japan, South Korea and many European countries, populations are declining as people age and birth rates are low. This ‘negative population growth’ throws up its own set of challenges, as a day may come when there will not be enough human resources to keep societies functioning efficiently, while pension bills shoot up. On the other hand, there are resource-strained developing states like Pakistan, where the population growth rate remains high, and feeding, educating and keeping such large masses healthy is a major challenge. The numbers of the recently concluded census suggest nearly 250m people live in the country; the 2017 head count showed a population of around 208m. The fertility rate is high, as are the number of unwanted pregnancies and abortions, estimated in the millions. Yet despite these alarming numbers, no one at the helm seems to have a coherent strategy to ensure a more sustainable population growth rate.
Rather than enforcing state efforts to ‘control’ the population, the centre and the provinces need to give families, particularly women, the information and tools required to help them plan the ideal number of children. This can help reduce unwanted pregnancies and improve maternal health. Providing women information and contraceptives through culturally appropriate methods can aid the goal of planned parenthood. Considering the mostly conservative milieu of our society, it is essential that the clergy and community leaders are brought on board to promote family planning. The notion that planned families are against religious norms can easily be disabused by pointing out that countries such as Iran, Saudi Arabia and Bangladesh — all Muslim states — have successfully reduced their respective population growth rates. The criteria of the National Finance Commission award, which, in effect, rewards high population, can also be revamped to give provinces incentives to achieve more sustainable numbers. Pakistan needs to stay away from both extremes: policies such as the one-child scheme that infringe on personal rights as well as letting the population grow unhindered. Instead, balanced and progressive community-led and state-supported initiatives are needed to encourage family planning. If this is not done, a dystopian future likely awaits us, where there are simply not enough resources to support a huge population.
Published in Dawn, July 11th, 2023
Aiding investment
THE new Pakistan Investment Policy 2023 appears to have been driven by the government’s short- to medium-term objective of facilitating ‘promised’ investment from the Gulf countries, and the longer-term goal of improving the overall business environment at home to enhance investment-to-GDP ratio to 20pc.
The World Bank estimates that investment will plunge to 13.3pc as a ratio of GDP during the present financial year from 15pc in FY20. Designed in collaboration with multilateral financial institutions, the policy is expected to attract $20-25bn in investment over the next few years.
The government has indicated that the GCC nations are very interested in investing in different segments of Pakistan’s economy to support development. The prime minister has already formed a Special Investment Facilitation Council to overcome any obstacles in the way of the project.
The policy will focus on reducing the cost and facilitating the ease of doing business, streamlining business processes and promoting the convergence of trade, industrial and monetary policies. It offers numerous incentives to foreign investors, including elimination of the minimum equity requirement and permission to invest in all sectors, barring a few.
The investors will be able to remit their entire profits back home in their own currencies and receive special protection. They will be also allowed to lease land without restriction, and transfer any land they hold without limitation. The policy lifts restrictions on foreign real estate developers.
Foreign investors will be permitted to hold a 60pc stake in agricultural projects and 100pc equity in corporate farming.
Recent trends show that FDI flows are directed mostly towards politically and economically stable economies that have strong foundations for future growth and can access broader markets.
Other factors that influence foreign investors’ decisions include tax rates, regulatory transparency, policy consistency, technological infrastructure and a secure environment. Sadly, we lag far behind even regional countries on these counts. No wonder foreign firms are exiting our market.
Even Chinese firms looking for relocation of their manufacturing facilities for export back home and elsewhere in the world are reluctant to invest here. Pakistan stands at a critical juncture in its history: it can turn its economic crisis into an opportunity by quickly implementing governance and structural reforms to attract investment or suffer on account of inaction.
The new policy will likely woo official investment from friendly foreign governments. But private foreign investment flows will not materialise unless we fix all our systems that can affect an investor in any way.
Published in Dawn, July 11th, 2023