Tuesday, October 12, 2010

Headline inflation hits 17-month high of 15.71pc

Source: The News

Date: October 12, 2010

KARACHI: The country’s headline inflation hit a 17-month high of 15.71 percent year-on year in September owing to the impact of devastating floods, which resulted in a sharp increase in the prices of basic food items, according to the Federal Bureau of Statistics (FBS) data issued on Monday.
The consumer price Index (CPI), the key barometer to gauge inflation in the country, registered a growth of 17.19 percent in April 2009. Analysts said that the impact of floods was the main reason behind the current increase in inflation. The depreciation of rupee and a global increase in commodity prices also kept the domestic rates on the higher side.

“The CPI figures are alarming and it may force the State Bank of Pakistan (SBP) to further tighten its monetary policy stance next month,” said Ahsan Mehanti, Director, Arif Habib Investments Ltd.

Realising persistent inflationary pressure, the central bank increased the discount rate to 13.5 from 13 percent in the last monetary policy announcement on Sept 29. The floods, which started hurting the economy early this fiscal year, dented the agriculture infrastructure and standing crops.

 There are no exact estimates of devastations caused by the recent calamity, but the provisional estimates of the central bank suggested that the economic growth for the current fiscal year could come down to 2.5 percent from an earlier target of 4.5 percent.

The disruption in supply chain of food items caused the month-on-month food inflation to jump to 5.26 percent in Sep, pushing the monthly CPI inflation to 2.65 percent.The central bank said that the upward trend in food inflation would take two to three months to return to normal levels.

For more details: http://thenews.com.pk/12-10-2010/ethenews/e-9566.htm

 

Monday, October 11, 2010

UNHCR aid reaches 665,000 flood victims

Source: The News

Date: October 11, 2010

PESHAWAR: The UN Refugee Agency has provided assistance to 665,000 flood-affected people in Khyber Pakhtunkhwa so far which was devastated in recent floods.

To reach the needy people, the UNHCR established 17 distribution points in coordination with implementing partners in Peshawar, Charsadda, Swat, Kohat, Nowshera, Kohistan, Shangla, Dera Ismail Khan, Dir Lower and Dir Upper districts. 

In addition, the UNHCR distributed aid to affected people in Haripur, Mansehra and those scattered in various parts of the Chitral valley. The UNHCR and its partners carried out assessments and those whose houses were destroyed or damaged received tokens, which were used to collect assistance that included tents and other non-food items like jerry cans, mosquito nets, or kitchen sets at distribution points. 

UNHCR Peshawar Officer-in-charge, Yoshimi Saita, said: “Needs of affected people are immense and they need continued support from aid agencies to survive through these difficult times.” 

UNHCR and UAE Red Crescent Authority recently launched a joint emergency shelter programme in Nowshera district. Under this project, 20,000 families will receive emergency shelter and basic domestic items to assist them cope during these difficult period.
Materials for 105 transitional shelters have already been airlifted into Uthror village in Swat Upper, airlifting is preferred as access by road through the recently constructed route to the village is only possible on light vehicles. Training in construction is being provided to community by partner Sarhad Rural Support Programme and locally hired engineers.

http://www.thenews.com.pk/11-10-2010/peshawar/9407.htm

 

Sunday, October 10, 2010

Bumpy road to rehabilitation by Mr. Naseer Memon

Dear All

Find below recent article “Bumpy road to rehabilitation” of Mr. Naseer Memon, Chief Executive of SPO. The article appeared in Political Economy section of The News on 10th Oct 2010

 http://jang.com.pk/thenews/oct2010-weekly/nos-10-10-2010/pol1.htm

Bumpy road to rehabilitation

The major challenge in rehabilitation process would be resource mobilisation

By Naseer Memon

Floods have now receded, leaving a trail of devastation behind. Deep scars of this disaster would take years to heal. Although relief phase is yet to end but concomitant to that more arduous phases of early recovery and rehabilitation can't afford any delay. The camp life ordeal of affectees would soon get over yet their suffering would only change its form as they return to their uprooted abodes.http://jang.com.pk/thenews/oct2010-weekly/nos-10-10-2010/images/pol2a1.jpg

Early recovery typically requires rapid assessment that may help initiating a transition from life saving to life sustaining activities in the affected areas. This phase entails issues like resettlement, livelihood restoration, rebuilding of basic infrastructure and planning for effective rehabilitation phase. The major challenge in this phase would be the magnitude of physical disaster. The scale of mammoth challenge can be gauged from the damage data. According to NDMA's update of 23rd December, over 1.9 houses are damaged in the country. Sindh province appears to be the worst hit accounting for over 1.1 million damaged houses.

Estimates of infrastructure such as roads, bridges, government offices, culverts do not appear in this report. However, various other reports provide information on these aspects. A report of UNESCO puts the number of damaged schools to 10,000 that corresponds to 1.5 to 2.5 million students affected. Punjab government's initial estimates reckon the damages to the tune of Rs67 billion. Website of PDMA Sindh shows staggering damage estimate of Rs446 billion.

Sector-wise breakup shows housing and agriculture as the worst-hit sectors in Sindh with estimates of Rs134 and 122 billion respectively. Secretary Industries Department of Sindh has confirmed that 67 industrial units in Sindh have been damaged. Similarly the Sindh Agriculture Department estimates agriculture losses at 102 billion rupees. A report of the UNOCHA on 10th August mentioned that 281 bridges and 283 roads were affected in KPK. Balochistan fretfully decried underestimation of its damages. In the long and short, volume of damages is mind-boggling and that explains the lurking ramifications of the bumpy road to rehabilitation. Putting together federal cabinet was informed that the colossal losses are estimated to US$ 43 billion, nearly 25% of the nominal GDP of Pakistan.

Early recovery in the affected areas would demand greater focus on agriculture and its extended strands of livelihood. Since most of the affected areas, specially in Punjab and Sindh, have their economy embedded in agriculture, immediate attention is required to secure winter sowing, mainly wheat that guarantees staple diet for millions of households. Any laxity in this would precariously push the rural economy and livelihood to the brink of collapse that may eventually culminate into a perilous social chaos. To avert this risk, government will have to work on a war-footing mainly for dewatering of submerged swathes, repairing field channels and regulators and mobilising seed, fertilizer and other inputs.

Paucity of supplies would skyrocket prices, initially of inputs and subsequently of commodities. Efficient management of winter crop would partially assuage the miseries for affectees as the local economy would get a shot in the arm with good harvest. This would bring respite for the edgy government and rehabilitation phase would also become less turbulent.

Rehabilitation phase is targeted to restore life to pre-disaster stage. This stage has to focus both on individual affectees and public services. Many experts of disaster management consider rehabilitation as an opportunity of better rebuilding through ameliorated planning, infusing socio-economic reforms, redefining imperatives of rural economy and reconstructing infrastructure as disaster-resistant and environmentally sustainable.

Rebuilding major infrastructure and reshaping socio-economic vista require meticulous planning and a turbocharged institutional array to make this transition wrinkle-free. The Independent Evaluation Group of the World Bank has also indicated in its report that Pakistan has a unique opportunity to introduce land and irrigation reforms for long term political and economic gains. The report suggests that the disaster also presents an opportunity to redress or to begin to redress, the long-standing land rights issue related to powerful landlords and indebted tenants in areas like Balochistan, Sindh and Southern Punjab.

Likewise, better land use planning can help rebuilding environmentally sustainable human settlements. Stemming from shear lack of land use planning, villages and towns in Pakistan have become breeding grounds for social strains and environmental nightmares. Unbridled sprawl of villages and towns have completely disregarded the fundamentals of development. Over the years major infrastructure schemes were implemented in the flood prone areas.

A vicious web of private dykes, illegal irrigation channels and other imprudent creatures was recklessly allowed to sneak into the flood plains. How this environmentally myopic development multiplied the damages need to be delved. Rehabilitation phase is a heaven-sent opportunity to rectify these gaffes. Land reforms, especially judicious allocation of katchha land and recovering illegally occupied tracts of riverine forest would be the best harvest of this worst disaster.

The insurmountable challenge, however, would be convincing the ruling elite to let it happen unhindered. Since the fragile democratic dispensation stands on the crutches of unscrupulous landed aristocracy, such reforms look like a distant dream. Otherwise erasing social imbalances would provide bedrock foundation to democracy in Pakistan.

The major challenge in rehabilitation would be resource mobilisation. Ever bulging security cost has hemorrhaged the cash-strapped government from its residual liquidity. According to newspaper reports the federal budget has recently been defaced by major changes into defense and development allocation. The former has been allocated additional Rs110 billion and the later has been drained by Rs73 billion, leaving development kitty in pallor.

Council of Common Interest announced a compensation of Rs100,000 for every affectee family but the provinces are too impoverished to afford this. The Advisor for Planning and Development in Sindh has already conceded that the slim purse of the province can't afford 190 billion rupees required for the purpose. The international aid response had been sluggish due to medley of reasons. The UN has launched "Pakistan Floods Emergency Response Plan" seeking US$ 2 billion.

The plan aims to provide humanitarian relief and early recovery assistance to up to 14 million people through 483 projects. The anemic treasury needs aid injection to foot the rehabilitation bill that would run into several billion dollars. There is a need of massive public sector investment to reinvigorate the caved-in economy in the affected areas.

This investment, however, should not be restricted to dole outs; it should rather follow the 'New Deal' paradigm of socio-economic recovery of US after Great Depression in 1930s. President Roosevelt declared it a peacetime emergency and established Federal Emergency Relief Administration that pumped money in "work relief" operations. Huge projects of roads, bridges, schools and other public works were rolled out that generated jobs for 4 million citizens.

Such a model would proffer multiple benefits of rebuilding public services, rejuvenating the tormented local markets and creating much needed employment for affectees. Creating exclusive small and medium enterprise corridors in urban areas fueled through soft loans would also help affectees to recuperate from crisis. In presence of heavy debt servicing and ballooning defense expenditure, little is left for public sector development, which complicates the dilemma of civilian governments. Considering these harsh realities, rehabilitation phase immediately requires an all encompassing master plan before rolling out muddled development schemes. The plan may comprise short term, medium term and long term targets coupled by a strategy to mobilize resources and efficiently investing them to achieve strategic socio-economic gains.

The writer is an environmentalist Chief Executive of Strengthening Participatory Organization-SPO. email: nmemon@spopk.org

 

 

 

Monday, October 4, 2010

Government Release Rs1.1 billion for HSC

Source: The News

Date: October 05, 2010

ISLAMABAD: Making an attempt to cool down the employees of public sector universities who are all set to observe “World Teachers Day” as black day the government finally released an amount of Rs1.1 billion to the Higher Education Commission (HEC) on Monday.

According to the reliable sources, the HEC had demanded Rs5.8 billion additional recurring grants from the government in order to pay 50 percent increase in the salaries to their employees besides 15 percent increase in pension and medical allowance however only Rs1.1 billion has been released.
Talking to The News, HEC Chairman Javed Laghari confirmed that the government has released the amount of Rs1.1 billion. “We are very pleased and hope that we together with universities would be able to work for the betterment of education sector besides promoting research culture in the country,” he said.

He expressed hope that the Federation of All Pakistan University Academic Staff Association (FAPUASA) would call off the strike to be held on today (Tuesday). However FAPUASA President Kaleemullah rejected any possibility of calling off the strike and said that they would continue their struggle until the pledged amount was not released at once. “This is not the way of releasing money. Whenever we mount some pressure, government makes some announcement,” he said.

He said that the government was making fun of higher education sector by playing such tactics. “There are 72 public sector universities functioning right now. How the demand of universities could be met with only Rs1.1 billion when we are not really sure as to when the other release would be made,” he said.

For details view the link: http://thenews.com.pk/05-10-2010/ethenews/e-8369.htm

 

6m disabled children without education

Source: The News

Date: Oct 04, 2010

Over six million children are deprived of education due to various forms of disability and special education sector does not have the capacity to accommodate them.

Talking to APP, Director Federal College of Education (FCE) Prof Rafique Tahir, who has taken an initiative of setting up a National Resource Centre for Inclusive Education within the college, said that without enrolling these students, it is difficult for Pakistan to achieve 100 per cent literacy rate and Millennium Development Goals (MDGs).

He said every child has a right to education but children with disabilities are treated differently as they are put in special educational institutions.
Inclusive education takes care of needs of children with disabilities like slow learning and low vision and is aimed at bringing all the children into schools irrespective of their class, gender and economic background.

He referred to the Islamic education system in which Madaris adopt a mainstream course and even blind youngsters study with other children.
Year 2002 was the turning point as Dr. Rafique Tahir’s efforts to do something for disabled kids bore fruit and with a help of a Norwegian friend Treje, he got funding for a pilot project to promote the vision of inclusive education.

The pilot project took off with adoption of a cluster of sixteen schools where many children belonged to marginalized communities of both urban and rural areas of Islamabad.

Substantial funds of Rs. 30 million came from International Development Partners (IDP) from Norway and Directorate General of Special Education (DGSE) and Federal Directorate of Education (FDE) collaborated to realize the dream.

Link: http://www.thenews.com.pk/04-10-2010/Islamabad/8089.htm

http://www.thenews.com.pk/images/shim.gif

 

Poverty on the rise

Source: Dawn

Date: 04 Oct, 2010

A HIGHER gross domestic production growth is helpful but not sufficient to bring down the poverty level. It must be accompanied by allocation of bigger resources for poverty alleviation, social safety nets, education, health, sanitation and housing for the poor. 

Nevertheless, the higher GDP growth leads to employment generation and puts more revenue in the hands of the government, enabling it to allocate more resources for poverty alleviation. 

In addition to lower GDP growth, increase in unemployment also pushes up the poverty level. In Pakistan, the unemployment rate went up to 5.5 in 2008-09 from 5.2 per cent in 2007-08. For 2009-10, the unemployment figures are not available. However the floods have swept away thousands of jobs in the affected areas. As a result of job losses, poverty in the post-flood area has become a nightmare.

Last but not the least, higher inflation – particularly higher food inflation – makes the lives of the poor unbearable. Even before the floods, prices of food items had increased manifold over the last couple of years. To quote a few instances, wheat flour (average quality) had gone up from Rs13.64 per kg. in 2006-07 to Rs29.05 per kg. in 2009-10 or by 113 per cent. Price of sugar (open market) went up from Rs31.85 per kg. to Rs56.25 per kg. or by 77 per cent, while price of vegetable ghee (loose) had gone up from Rs70.81 per kg. to Rs111.27 per kg. or by 57 per cent in the same period, as reported in the Economic Survey 2010.

For details view the link: http://www.dawn.com/wps/wcm/connect/dawn-content-library/dawn/in-paper-magazine/economic-and-business/poverty-on-the-rise-400

 

Friday, October 1, 2010

Pakistan economy living on borrowed time, says ADB

Source: The News

Date: October 01, 2010

ISLAMABAD: The massive financial problems of Pakistan are posing a threat to the political stability as the Asian Development Bank (ADB) in its report has warned that the country’s economy is living on borrowed time.It has been revealed by a prominent English daily of the Middle East appearing from Abu Dhabi quoting an international monetary agency.

 While referring to the political insiders, the newspaper has said that the tenuous relations between the United States and Pakistan and among the power players within Pakistan could see politics overshadow the economics. The Pakistani powerful lobby is largely responsible for the mistrust. Since handing back power, after nine years of direct rule, to civilian politicians after February 2008 elections, COAS General Ashfaq Parvez Kayani, has worked to restore the military’s tarnished public image, notably during flood-relief operations. At the same time, he has steadily sought to re-establish the military’s illustration in national affairs. It led to the conclusion and portrayed Asif Zardari as a corrupt opportunist.

Painting a bleak picture of the country, the newspaper pointed out that until a breakthrough in December brokered by US military commanders, the military had resented the Obama administration’s previous insistence on dealing exclusively with some civilians in the government. Since then, the military has pushed its challenge. On Monday, Gen Kayani made a rare visit to the Presidency to pressure Asif Zardari and Yusuf Raza Gilani, the prime minister, into backing down from a confrontation with the Supreme Court.

View the link: http://thenews.com.pk/01-10-2010/ethenews/t-1011.htm

 

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