Saturday, May 10, 2008, Jamadi-ul-Awwal 3, 1429    

PM’s Multan package

Rizwan Ghani

I am interested in Multan package on two counts: 1) It was a package for PM’s city. 2) It showed future direction of Government’s policies. I am sure in addition to his personal experiences PM must have consulted experts before offering the package. He was all ears to the recommendations made by the local chamber of commerce representatives and promised merit based changes to improve the package. It is welcome news that Multan will have a women university and handful of higher education and vocational/technical institutions for wide ranging objectives including human resource employment in international job market; model health care system including health university; massive communication infrastructure expansion plan to facilitate traffic and tourism etc.; massive water and sewerage project and rationalization of energy distribution package to cater to agri-, industrial and domestic consumers.
I have been supporting commodity exchanges in the same space since 2005 Karachi Stock Exchange fraud in different parts of the country based on Chinese model allowing growers to determine prices of their produce. Keeping in view the size of cotton, rice, wheat, sugar (cane) and other agri-products it is time to establish commodity exchanges in Southern Punjab including Multan, which has also been demanded by Multan Chamber of Commerce and Trade.
As highlighted by the Nishtar Medical College/Hospital board member Romi more tertiary care health centers are needed to cater to 4.2 million people from Multan and its suburbs to reduce burden on Nishtar Hospital and its allied setups. In all fairness the cluster of Bahawalnagar, Haroonabad, Chistian, Fortabbas and Hasilpur need its own university, engineering college, agri-education setup and medical and nursing colleges to facilitate local population in terms of education, creating overseas employment opportunities from less developed areas, quality health care and ease economic burden for students from poor families who cannot continue education in major cities due to growing costs. Similarly, DG Khan needs its own medical college and engineering college on line of BZ University DG Khan Campus.
However, instead of PM’s proposed intra-city communication infrastructure expansion plan, in wake of growing fuel prices, population, pollution and commutation time it is proposed that Multan keeping in view its geographic spread.
The circular strands can converge on Multan city station/cantt station and (four) standing strands of web can ultimately be linked to main railway lines on all four sides of the city for multiple advantages. It will reduce fuel expenditure/imports, allow huge generation of revenue, save time and improve safety, keep the atmosphere clean, ease/end rush on city entrances/exits and promote PM’s city’s tourism vision.
The Dubai tram network is scheduled to start in Sept. 2009. The one billion US dollar tram network will include 19 stations. The 70 km (43 mile) driverless metro rail network will feature elevated and underground sections covering main locations across Dubai with the aim of reducing traffic congestion. Japan’s Mitsubishi is already building3.3 billion dollar high-tech passenger rail network across the Gulf emirate ($ 1bn Dubai Tram deal.. 30 April Arab News). Multan metro can link Chennab, airport, railway stations, hospitals, fertilizer factory, bus stops and BZ University.
The projected 450 jobs figure by the PM himself shows the challenge for the planners to create jobs. In my view PM needs to do following to help kick-start Multan’s agri-based/related economy, create jobs and generate revenue: 1) Instead of two billion super store(s) expand fertilizer factories and agri-related pesticide industrial network with help of local and overseas investors that will create far more jobs than proposed figures and facilitate per acre yield. Policy makers should learn from failed super store and corporate farming experiments in India because they promoted joblessness and monopolies thereby affecting corner shop culture, poor returns to small farmers resulting in their unemployment, which ultimately led to local riots. 2) Expansion/ improvement of provision of quality seeds for main crops of the region through public sector by restoring seed corporations. 3) facilitate/promote modern irrigation methodology including drip irrigation to increase per acre yield and save water. 4) Install five to seven cotton cleaning plants in public sector for multiple advantages including value addition and avoid wastage. 5) storage/packaging plants for dairy/fruit/ vegetables for value addition, price control, quality control and year round availability for local consumption and exports to other parts of the country/abroad. 6) Expand/protect local cloth/textile/loom/yarn industry that already employs some six hundred thousand plus individuals (with dependent families).
PM’s well meaning decision to extend 80 billion rupee subsidy for DAP and fertilizer etc has its own pitfalls as highlighted in my article ‘Poverty relief and employment opportunities’ published in same space on 23/4/08.India’s 800 billion subsidy/unemployment programmes have failed to providing relief at grassroots and instead left coalition Government’s hands full with corruption scandals. The observation of local journalist in Multan press club about Zakat cheques shows historic extent of challenge. People need jobs not subsidies or food stamps. Thus Government should nationalize these sectors and use allocated subsidy funds instead to keep prices down and support countrywide critical needs area wise. Pakistan Government by investing in/attracting FDI can earn billions from agri-sector. However, Islamabad should avoid corporate farming and enact across the board land reforms to reduce unemployment and dependence on Zakat/food stamps etc.
Russia, China, France, UK, Gulf States, Venezuela and many other countries have successfully nationalized energy, agri- and other important sectors including health and education sectors to serve their citizens and retire foreign debts. Russia has cleared its debt and added one trillion to its exchequer by strengthening public sector. China has reduced oil prices by a quarter by increasing state stakes in energy sector.
Multan being an agri-based economy needs support through public sector factories providing items on control prices including fertilizers, pesticides, seeds, drip irrigation equipment, modern machinery including tractors and value addition in form of packaging, preservation, local distribution and exports. This model keeping in view the local requirements should serve for rest of Pakistan including Sindh, NWFP and Balochistan. Government under its Government owned ‘public ownership’ programmes earn huge revenue, control prices and sustain national economy on long term basis and end its dependence on foreign aid.
In my opinion to realize PM’s vision of overseas employment, technical and vocational education institutions our planners need to study models of Philippines, India and Indian State of Kerala. Philippines earned 15 billion US dollars from foreign remittances in 2007. Kerala is catering to 38 per cent of health technicians in USA (100,000 nurses needed in next ten years), UK and rest of Europe (as incentive are offering citizenship to fulfill staff deficiency). India is exporting human resources to Gulf (India plans 60 medical schools; April 4, 08 Arab News) and establishing medical cities. USA alone needs 75,000 doctors in next ten years. Following things are common in both models: 1) Opened 400 nursing colleges in Kerela/Karnataka and 500 colleges in Philippines for training and locally holding NCLEX/ CGFNS exams-a prerequisite for overseas employment programmes. Each nurse is earning one point seven million rupees annually (West.. favored destination.. April 12, 08 Arab News).
Finally, Pakistan needs energy. I had hoped that in view of Multan energy riots and growing joblessness city would have been offered a bold alternate-energy-based plan to resolve energy issue on permanent basis-which in turn would have been copied countrywide-but instead the city got a squib-load distribution package. Pakistan needs energy, now.
Alternate energy is part of the solution. It is hoped that Islamabad instead of enjoying round the clock free energy will brace the challenge to address the issue on permanent basis to help revive businesses, jobs, restore normal lifestyle countrywide and divide between rulers and the ruled. PM’s Multan plan has failed to address energy issue.
It is therefore hoped that package-as part of national policy-will be modified to meet energy demands of Multan (and rest of the country) on war footings, strengthen public sector to control prices, generate jobs and in turn earn revenues for national prosperity.