No more excuses
THE ECP has done the right thing by refusing to delay the LG polls, due tomorrow in Karachi. The postponement was based on flimsy excuses put forth by the PPP administration in Sindh and its allies in the MQM.
The ECP’s decision on Friday followed the high drama of the previous day, when the disparate wings of the MQM came together — or were brought together — and called for delaying the polls yet again due to what they said were faulty delimitations.
In a late-night development, the Sindh government obliged its coalition partner by announcing that the second phase of the LG polls in the province would be delayed in Karachi and Dadu, though it would go ahead in a few other districts.
The ECP asserted that the polls would go ahead as planned, while asking the centre to deploy army and Rangers’ personnel to provide security to sensitive polling stations.
Before discussing the dire need for elected local bodies in Sindh, a few words about the spectacle that played out in Karachi on Thursday are in order. In a marriage of convenience — or perhaps a ‘forced marriage’ — the MQM-P took back into its fold the PSP, led by Mustafa Kamal, as well as Farooq Sattar who had formed his own faction.
The PSP was created by Mr Kamal in 2016 in dramatic fashion, as the former Karachi mayor tore into his erstwhile party and ex-benefactor Altaf Hussain. However, the PSP’s electoral performance was dismal, despite the general view that it enjoyed the establishment’s blessings.
It remains to be seen how this ‘united’ motley crew attempts to regain the electoral space once claimed by the Altaf-led MQM. However, what is disturbing is that the reunion seems to have taken place at the behest of some of the party’s ‘friends’ in Rawalpindi, who apparently do not want to see the PTI consolidate its position in the metropolis.
The MQM is free to make or break alliances with whomsoever it wishes. However, what cannot be accepted is the party’s desire to stop the LG polls by hook or by crook, as the Muttahida leaders insinuated they would do in Thursday’s presser.
They may have genuine concerns about delimitations and have every right to boycott the election process if they feel it is not fair. But to forcefully stop millions of citizens of the megacity from choosing their local representatives cannot be allowed; it very much harks back to the violent MQM of old.
The fact is that changing an inadequate local government law, addressing unjust delimitations and negotiating with the provincial administration for more powers for the city government is something best achieved by an elected mayor.
No further obstacles should be placed to prevent the people from exercising their constitutional right.
Published in Dawn, January 14th, 2023
Dam fund
IT appears that the controversial dam fund that was created in 2018 by the former chief justice of Pakistan Saqib Nisar is still very much intact. It has apparently even matured over the years to slightly more than Rs16bn. The current chief justice has asked the auditor general to audit the fund forthwith in coordination with the State Bank. It appears that the Supreme Court wishes to put to rest frequent speculation regarding where the funds collected under the 2018-19 dam construction drive had gone. It may be recalled that the National Assembly’s Public Accounts Committee had, over the past six months, asserted on multiple occasions that it would summon former CJP Nisar to inquire about the state of the fund.
While the PAC’s insistence on summoning the ex-CJP was likely more a political stunt meant to embarrass the former top judge, it has also prompted those responsible for the fund to be more transparent about it. This is a commendable development. The dam fund had been a misguided, overly optimistic attempt at solving a problem that was too big for any donor drive, however well-intentioned. Still, it managed to collect a sizeable sum of money from various public and private sources, and the public deserves to know how their contributions were put to use. The Supreme Court has directed that the fund be used only to purchase machinery for dam construction, but it must also consider other uses. While the Mohmand and Diamer-Bhasha dams, which it was originally intended to finance, have hit snags due to force majeure and insufficient funding, there are other equally good causes on which the money can be well spent. One of these is the maintenance and restoration of existing water infrastructure which may have been damaged in last year’s monsoon. If the fund could be redirected to such projects, it would technically still be utilised for water conservation, fulfilling its original aim.
Published in Dawn, January 14th, 2023
Temporary relief
THE UAE loan of $3bn — including the rollover of the existing debt of $2bn and fresh support of $1bn — and the Saudi oil facility of $1bn will help Pakistan further bridge the external financing gap of nearly $34bn for the present financial year. Just like the multilateral and bilateral commitments of nearly $10bn received for flood recovery in Geneva earlier this week, the newest development is indeed a positive one for the country. It will buy the government some time to ward off the risk of a looming sovereign default in view of the rapidly depleting foreign exchange reserves. But avoiding the deepening economic imbroglio isn’t enough for the government to declare victory. A stitch here and there may keep us afloat but won’t solve the issues facing the economy. The expected boost to sentiments will be temporary unless the government sorts out its differences with the IMF for the revival of its bailout programme. As has been emphasised time and again, the support of the Fund is crucial to attract multilateral and bilateral assistance on a longer-term basis. To this end, Pakistan must stick to the macroeconomic reforms agenda to swiftly conclude the stalled ninth IMF programme review — a move that would give confidence to the country’s international partners and investors. The time bought through the promised Gulf assistance must be used to bridge the gap with the lender of last resort to reassure international creditors.
However, it would be folly to expect the country’s return to the IMF as a panacea for its economic troubles. External loans and assistance can never solve the economic issues of a country. Multilateral and bilateral support can do only so much, ie, provide some space to fix the issues responsible for frequent boom-and-bust cycles. That we have lurched from one IMF programme to another after every few years shows that we have never used the space created by foreign loans and assistance to make the necessary decisions and execute the policies required to put Pakistan’s economy on the right path for sustainable growth. If this country is to stabilise and grow, we will have to take a few tough decisions to change the fundamentals of the economy. Management of the exchange rate, massive energy subsidies, tax holidays and import restrictions to create a false sense of stability will never get us anywhere.
Published in Dawn, January 14th, 2023