ECC’s decisions

THE Economic Co-ordination Committee (ECC) met under the chairmanship of Prime Minister Yousuf Raza Gilani at Governor House, Lahore. Present was the host, Salmaan Taseer, as well as his nemesis Chief Minister of Punjab, Mian Shahbaz Sharif. The fact that the two did not look at each other was, perhaps, the only discordant note that was struck at the meeting. Be that as it may, the ability to work with one’s political foes is a sign of maturity of the democratic process and one can only hope that our politicians target their rivals on differences in policy and not on personality. The single most pressing issue facing the people of this country, the possibility of wheat shortage was discussed at length during the meeting. Practical steps were identified and agreed - steps to ensure that there would be no recurrence of the wheat shortage of a few months ago. These steps include continuing wheat flour subsidy and establishing a committee, to be headed by the Finance Minister with representatives from all four provinces, to overcome the possibility of a recurrence of wheat shortage and also be empowered to distribute the 2.5 million tons that Prime Minister Gilani had directed to be imported earlier. The Chief Minister of Punjab committed that his province will reach out to other provinces in an effort to ensure that there are no shortages anywhere in the country. As Punjab is the largest producer of wheat in the country, this commitment was critical - a commitment that comes in the wake of a sustained effort by the Chief Minister of Punjab to improve and further strengthen inter-provincial ties, an effort that includes Mian Shahbaz Sharif’s recent high profile visit to Balochistan during which he promised that Punjab would meet any wheat shortages that may arise in Balochistan. It has been evident in recent weeks with Shahbaz Sharif’s heightened emphasis on improving inter-provincial relations, that Punjab is taking its role of ‘big brother’ seriously, a fact that may prove extremely useful for the federal government, while negotiating the National Finance Commission (NFC) award for which the four provinces have already announced their candidates. ECC decisions based on concerns over specific sector/utility/industry include: the setting up of a committee to review the performance of KESC with a view to improving its productivity and distribution; setting of CNG prices by OGRA in future, a decision taken to forestall the CNG retailers from raking in exorbitant profits again after the erroneous announcement by Shah Mehmood Qureshi of an increase of Rs 13 instead of Rs 5.58; and a reduction in gas tariffs for textile units operating captive power plants as well as the approval of a revised criteria for gas extensions to towns and villages falling within the vicinity of gas fields.
With respect to weak macroeconomic fundamentals that are plaguing the economy the Governor of the State Bank of Pakistan came up with her oft repeated prescription in conformity with basic economic theory: slash spending in an effort to control the budget deficit as well as inflationary pressures. This is sound economic advice indeed but unfortunately for the current batch of leaders not feasible at all from a political perspective. The people of this country are overwhelmed by the rise in prices of not only food items as well as transport but also by the dramatic increase in utility prices. Stories of daily suicides and of mothers leaving their children at Edhi centres due to sheer helplessness are finding their way in the media much to the chagrin of the government. However, it is relevant to point out that the present government has succeeded in not only getting the Saudi oil facility which defers oil payment for three years, a fact that will release the pressure on our ever declining foreign exchange reserves, but also the expected release by World Bank of an emergency 500 million dollar loan is likely to send the green signal to other international financial institutions to recommence their interventions.

Iran: Continued bluster from US

IN the dying days of his dim two-term presidency, President George Bush has thrown aside the useless belligerent lever he has tried to use on Iranian over its nuclear program and turned at long last, to diplomacy. However, even the presence in Geneva on Saturday of Undersecretary of State William Burns, the third highest-ranking US diplomat, at a EU meeting with Iran’s nuclear negotiator is still hedged with threatening talk. Tehran’s nuclear negotiator Saeed Jalili is due to deliver his government’s response to a UN offer of economic and technical aid, if Iran suspends its nuclear fuel enrichment program and permits full International Atomic Energy Agency inspections. A Bush official warned that Saturday’s meeting was “a one-time deal.” Such a statement is not helpful. The Iranians have already signaled that the Geneva meeting is going to focus on further negotiations and may not, therefore, include a definite reply to the UN offer. EU foreign policy chief Javier Solana is too wise a politician to demonstrate any frustration at what may be yet another Iranian delay. Not so the Americans. Once again, Bush thinks he can come barging into a delicate process and issue threats. His braggadocio reduced Iraq to chaos, threatens Afghanistan with the same, has poisoned relations with Moscow and has been instrumental in plunging the Palestinians into yet more bloodshed and dissension. Will this man never learn?
Washington is also making it clear that Burns will have no separate talks with Jalili, but will merely take part in the main meeting chaired by Solana. Perhaps all this continued bluster has a lot to do with the U-turn the White House has just made. Bush had vowed not to talk to the Iranians until they suspended their fuel enrichment program. But this is just what his administration is doing even though, along with the news of the Burns’ Geneva mission, came the lame repeat that nothing would happen until the enrichment stopped. The plain fact is, however, that the enrichment has not stopped but Washington is effectively now talking to the Iranians. This for Tehran is, therefore, a victory, just as the US-Iranian talks last year about Iraq’s collapsing security situation, was another triumph because, albeit through gritted teeth, the Americans were accepting that Iran was also part of the solution, not just part of the problem. And indeed it has been Tehran’s reining in of the Shiite militias that has, with the Sunni community’s rejection of Al-Qaeda butchers, underpinned the relative success of the US surge. So the American and the Iranians know how to negotiate sensibly with one another over a highly sensitive issue. A big reason Bush won Iranian cooperation over Iraq was that he was not threatening reprisals if it was withheld. US negotiators were also able to demonstrate that Iraq’s descent into factional chaos would damage Iranian as well as US interests. If Bush is at all wise, he will be letting Undersecretary Burns use his experience and discretion in Geneva Saturday and not ordering him to issue yet more foolish threats.

—Arab News