People's parliament
Formation of the petition committee by the Sindh assembly is a historical decision
By Fateh Marri 
Ruled mostly by the military, Pakistan has remained under democratic deficit. Though the democratic tenures have been abrupt but we have followed the parliamentary form of government. Democracy has remained weak as per constitutional provisions and practices -- be it the interim constitution of 1947, 1965 constitution where the prime minister worked with the consent of the president. The 1973 consensus constitution was put under abeyance in 1977.

Building a solar future
The path to powering buildings in Pakistan by solar panels is accessible 
By Jazib Zahir
Walking around some of the sunny localities of the United States and Western Europe, you will be struck by the ubiquity of solar panels adorning roof tops. The shiny rectangular frames fit snugly within roof tiles and churn out sufficient power to make these units self-sufficient in their electricity needs. Masdar City ensconced within Abu Dhabi is taking the concept a step further: an entire town where the infrastructure is powered entirely by the sun and other renewable sources.

The recent airing of a TV interview with Hairbyar Marri -- a prominent Baloch nationalist and son of Khair Bux Marri -- may appear to many pro-reconciliation Pakistanis as a step in the right direction. After all, it is rare that Baloch nationalists -- particularly those who talk of an independent state -- appear on Pakistani television; and even more rare that their views are aired virtually uncensored!

This particular interview is not the first of its kind in recent times. In April this year (as well as in June last year), Brahmdagh Bugti -- a leading figure in the Baloch guerilla movement -- was invited to appear live via telephone from an "undisclosed location" on one of the most widely watched current affairs programs in Pakistan.

Three aspects of these interviews were particularly striking: their timing (in relation to current developments in Balochistan), content (i.e. the nature of the questions asked and their replies), and 'openness' (i.e. lack of censorship).

Let us begin at the end, with lack of censorship. To many, the airing of these uncharacteristically 'frank' interviews is a "good will" gesture by the media and government. If this is the case, then why is there a virtual blackout of information and non-state news sources emanating from Balochistan? The initial list of 34 websites banned by the PTA in July 2006 for "spreading misinformation" consisted predominantly of Balochistan-related sites (automatically dubbed "nationalist") that were the only regular source of information coming from the Baloch areas of the province. A dozen more "restricted sites" were added as of 3 July 2009. There are still no private Baloch TV channels or radio stations. One of the few people who attempted to start up one such channel, Mr. Munir Mengal, was promptly swept away into a military torture cell where he was kept for nine months.

Let us now turn to the timing of these interviews in relation to the circumstances, which prevail in Balochistan today. The contradiction is apparent: On the one hand, two of the most fiery young nationalists are invited to appear on Pakistani primetime and freely declare their hostility towards the Pakistani state and its Na-Pak Fauj (in these words). On the other hand, inside Balochistan itself, there is an ongoing series of abductions, torture, and harassment of the very same pro-independence political leadership and activist cadres; a series which began with the cold-blooded murder of veteran politician Ghulam Mohammad and two fellow political activists.

Ghulam Mohammad's murder demands attention, as it sheds light on the state's current policy vis-à-vis the Baloch. What was Ghulam Mohammad's crime? One: Urging his people to resist the occupation of their lands; and two -- what appears to be the immediate impetus behind the murder -- making the Pakistani security establishment look weak by helping secure the release of John Solecki. Solecki's abduction by the Baloch Liberation United Front drew considerable attention to the Baloch movement. Additionally, the fact that Solecki was released and that too looking as pink and healthy as ever, added insult to injury for the security establishment. Three days after Solecki's release, the bodies of Ghulam Mohammad, Lala Munir, and Sher Mohammad were found in the wilderness, mutilated beyond recognition. The message was a simple one: "Expose us and you'll pay." The unspeakable treatment meted out to these three men before their slaughter was perhaps for "added emphasis." It is worth asking then: don't the various incidents of state brutality narrated in the interviews by the two Baloch leaders count as "exposure" of the state? And if the state is being exposed through these interviews, then why are they being aired uncensored on primetime?

This brings us to the third and perhaps most important feature of these interviews: the content. From an analysis of their content and the issues highlighted by the anchors, it becomes clear that these interviews are intended to "expose" the victim rather than the victimiser. Every writer/journalist knows how fundamental one's choice of questions is to the construction of a narrative. It is unfortunate to see that in both interviews, the anchors have chosen to frame their questions in a manner which merely regurgitates the establishment discourse on Balochistan:

n "There is now a democratic government in place; Mr. Zardari even apologised to the Baloch people, but you continue to be angry with us -- why?"

n "Your chief minister, your governor, the majority of your ministers are Baloch. And you say the Baloch are 'oppressed'?"

n "Why don't you take part in the elections? [Come on, give democracy a chance!)"

n "Why did you take part in the elections? [If your real aim was independence?]"

n "Do you really endorse the killing of innocent Punjabis?"

n "So what do you want- other than your freedom?"

n "We know that India is sponsoring you, we have evidence... But tell us anyway: is India sponsoring you?"

n "What about the Pakhtuns; you want them to leave too?"

n "You blame Pakistan for all your miseries, but what have your sardars done for their people?"

n "If this is really a 'Baloch' problem, where are the other 72 tribes?

Not only do the above questions exhibit an utter dearth of knowledge about the Baloch movement and their society, such questions are meant to provoke (rather than engage) the interviewee, to create the atmosphere of a 'duel' -- that too, which is played on the oppressor's turf. Neither of the anchors asked a single question in an attempt to understand -- or help the Pakistani public understand -- why the Baloch talk so ardently of freedom, what they mean when they say they are 'enslaved', or how the wounds became so deep.

The two interviews collectively painted the following picture of the Baloch national movement:

1) The Baloch nationalists are not willing to enter into dialogue with Pakistan under any circumstances. Despite the state's attempts at reconciliation, the Baloch will not stop at anything short of independence, i.e. 'breaking Pakistan'.

2) Even if the Baloch have been 'wronged', the resistance has now turned violent, the militants are ruthlessly killing innocent Punjabis due to their blind hatred for Pakistan, and therefore crushing them may well become necessary "for the protection of Pakistani citizens."

3) The Baloch movement is not a genuine or home-grown movement aimed at the betterment of the Baloch people; it is the result of a conspiracy hatched by foreign powers (mainly India but others too) in order to weaken- even break -- Pakistan.

The Baloch resistance is not in fact 'Baloch' in character or scope; it is essentially a Marri-Bugti phenomenon born out of (a certain section of) the tribal elite's personal tussle with the state.

The only difference between this portrayal of the Baloch movement and the earlier one propagated by the state since the 1970s, is of order rather than substance. Up until the year 2000, the Pakistani discourse on Baloch nationalism centred on the rhetoric of "three anti-development sardars." In light of the post-2000 phase of the Baloch national movement, which has seen an increase in the sophistication, scope, and intensity of Baloch guerilla warfare throughout Balochistan (and not just in the 'Marri-Bugti' areas) as well as massive public outrage at the killing of various Baloch leaders, the state has had to modify its line on the 'Baloch problem'.

The 'modified' discourse now uses 'India-sponsorship' as its peg. The 'anti-development sardars' are still part of the discourse, but they are not the problem any more. Earlier attributed to the Soviets and now attributed to India and its 'proxy' Afghanistan, the 'foreign hand' rhetoric has been promoted to the top slot in the state discourse on Balochistan. Hence, if it can be 'proven' that the Baloch resistance is primarily a foreign-sponsored conspiracy, then the state's atrocities in Balochistan can be washed away -- rather justified, continued, even intensified -- with a single stroke: 'national security'.

It is not a coincidence therefore, that the interviews of these two young Baloch nationalists Hairbyar and Brahmdagh managed to elicit this 'proof' from the horse's mouth itself. After all, what better 'proof' of foreign-sponsorship do you need than the leaders of the Baloch resistance openly appealing for it, declaring that they would welcome Indian (or any other) aid in any form? The fact that these nationalists repeatedly said that they had actually not yet received foreign aid -- and that is in fact why they were appealing for it -- seems to have fallen on deaf years. For the state's purposes, this distinction (between 'actual' and 'potential' aid) is irrelevant because the objective of eliciting these statements is merely to use them as fodder for a "new and improved" propaganda campaign on the Baloch movement.

The onus of generating a process of dialogue and reconciliation lies, as always, with the dominant; or rather, with those on the dominant side who are critical of the injustices perpetrated by their rulers. That is why it is a particular shame to see supposedly "progressive" anchors playing the role of senior interrogator rather than one of senior journalist. If these celebrated media personalities want to genuinely raise awareness on the Baloch issue, they need to go beyond doing sporadic and disingenuous interviews. Instead, they should go into Balochistan proper (and not just to Quetta), investigate the charges that there is a full-fledged military operation in the province, interview nationalists from different schools of thought and talk to people from all walks of life. And they should ensure that these interviews are broadcast on Pakistani prime time. That would be professional journalism and a genuine contribution towards reconciliation.

Though Dr A.Q. Khan has descended into oblivion, D. A. Q. Khan Institute of Biotechnology and Genetic Engineering (KIBGE) spread over 25-acre in the University of Karachi is doing some path-breaking work that is likely to bring some solace to Pakistan's ailing economy.

"Pakistan is importing enzymes of commercial and industrial importance that is draining the national exchequer. This can be gauged from the fact that the import of alpha amylase, an enzyme used in textile industry, is to the tune of $100 million per annum," Dr Shah Aliul Qadr, an associate professor at KIBGE told TNS. "We are trying to make alpha amylase and other enzymes locally that will help save precious foreign exchange."

"We are one of the few institutes of Pakistan that are involved in commercial production of important industrial enzymes used in various industries. All these enzymes have been isolated from local species and have been deposited in our gene bank," he said.

The research being carried out at KIBGE is not confined to products used in industry. The institute is also busy in projects related to agricultural biotechnology and medical biotechnology. For instance, in agricultural biotechnology, KIBGE has undertaken projects aimed at improvement of salt and drought tolerance in brassica napus through genetic transformation; conservation of endangered flora of Pakistan through micro propagation; optimisation of efficient regeneration system and acclimatisation of brassica napus, Triticum astivum and saccharum sp, screening for salt and drought tolerance in brassica napus and analysis by molecular and biochemical tools, to name a few.

"The main objective of research is to get commercially viable varieties of sugarcane which not only produce high amount of sugar content but is also drought-tolerant and disease-resistant," said Syeda Qamar Un Nisa, senior scientific officer at KIGBE. "We have 6.8 million hectares of salt and drought-affected land in Pakistan and Sindh shares its major portion. In order to reclaim soil, we will produce salt and drought-resistant plant species through some biotechnology tools that will tolerate 225mm salt pressure. In this regard different varieties of canola have been developed by incorporation of some gene cassettes that will help the plant to grow under drought and salt conditions," she said.

Explaining the project aimed at conservation of endangered flora of Pakistan, Haider Abbas, an assistant professor at KIGBE said: "The main objective behind this project is to identify and conserve those species that might have hidden potential as a horticultural, medicinal or agricultural crop."

"Currently I am working on different wild species; amongst them two are unique to Pakistan. We have documented that these wild plants are playing a vital role in our indigenous medicine," he said. "Currently wheat, corn and rice are supporting 60 to 70 per cent of world's food requirements," he said. "These three plants were identified and domesticated by pre-historic man. If we claim that we are civilised, modern men, then we should identify new plant species for fulfilling food and fibre requirements for over-exploded world population."

"The main difference between KIGBE and other institutes is that we have problem-oriented projects that will help alleviate some agro-based problems faced by Pakistan," he said. KIGBE is also involved in medical biotechnology and has undertaken projects to fight Alzheimer's disease, oral cavity cancer, iron deficiency anaemia, diabetes and Schizophrenia etc. In a clean and tidy room in spacious KIBGE, sits Prof. Dr Abid Azhar, a distinguished Pakistani scientist, prominent educationist and Co-Director General of the Institute.

His greyish hair and intelligent eyes behind his glasses give an impressive look as he proceeds to explain the nature of his institute's work. "This institute was established in 2003 with an aim to produce quality research which would be at par with research output of any laboratory of similar nature in a developed country," he said. "Like any other institution, KIBGE too has teething problems. It has to acquire equipments, manpower and infrastructure before it can realise its potential."

"I believe we have achieved it partially. We do have state-of-art equipments. We are in the process of acquiring human resource which is not an easy job and perhaps we have a clear direction of purpose," he said.

"We have also started training manpower. Some of our students have gone abroad for higher studies while others are being trained at the Institute. We have regular intakes for MS and PhD programmes. We have over 20 students for MS/PhD programmes and three students have already earned their doctorate," he said.

KIGBE offers courses for MS/Ph D programmes in human molecular genetics, bio informatics, tools and techniques of genetic engineering, research methodology I and II bio safety and bioethics regulation, plant biotechnology, bio statistics and industrial and environmental biotechnology.

"We also receive many requests from individuals as well as law enforcing agencies. Sometimes these are based on myths that DNA analysis is a magic wand, which will solve the problems. This is not true," said Prof. Azhar.

"There is need to raise awareness about forensic DNA analysis, sample collection from the crime scene or body parts, tissues etc," he said. A progressive student activist of the early 1970s and founder member of Young Writers' Forum, an organisation of left-wing youth that played a significant role in Karachi in early 1970s, Prof. Azhar also laments on deteriorating education system and lack of interest of student community in politics, culture etc.

"You can see a marked difference between today's students and the students of the 1970s. As students, we were not only aware that Chilean President Salvador Allende was assassinated by the CIA because he nationalised copper mines that was contrary to the interests of US-based multinational companies but we also organised public meetings in Karachi to show solidarity with President Allende and Pablo Naroda. Today you will hardly find a student who knows what's going on in Nicaragua," he said.

Prof. Azhar also laments that the focus of our education system is on rote learning and there is a tendency to curb inquisitiveness and questioning among the students that happens to be a pre-requisite to create something new whether it is in the domain of science or art and culture.

The spontaneous protests that have erupted all over the country against unannounced and extended loadshedding hours and increases in petroleum and utility prices simply underline what we already know -- that the state continues to unravel. While the Pakistani state is not about to fail in the way many western observers insisted it would 6 months ago when the 'war on terror' hype was at its peak, it nonetheless is increasingly unable to play the role of the basic provider of services.

Those who study third world societies such as ours note that the 'formal' state has always struggled to fulfil its basic mandate, and that it is state functionaries acting in an 'informal' capacity that keep things going. Be that as it may, it is difficult to deny that the entire political-economic structure, formal or informal, is now creaking at the seams.

It will not collapse however, because there is no political force capable of forcing a rupture. Instead it will continue to trundle along, squeezing the life out of working people who desire only to eke out a living, and rewarding those who (already) have access to the echelons of power. This domestic dispensation will reinforce and be maintained by the international political-economic order, or what is otherwise known as global capitalism. The oligarchs of capital, in turn, remain rulers of the world.

The recent protests were triggered by Asif Zardari issuing a presidential ordinance a couple of weeks ago notifying an increase in petroleum prices. Immediately prior to this, the Chief Justice had stayed an executive decision made by the prime minister to impose a carbon tax on petroleum products. In the end the government managed to increase petroleum prices, but in the process severely undermined its own popularity.

Much has been made, this being the first of many impending stand-offs between the president and the Chief Justice. It is indeed possible that a conflict is in the making (or has been since well before the Chief Justice was restored in March). This is not my concern in this essay however. I wish to draw attention to the reasons behind the government's insistence on increasing petroleum prices in the face of so much public disaffection.

In short, the International Monetary Fund (IMF)'s continued financial support is contingent on the government raising more revenue. As there is no chance that the Pakistan People's Party (PPP) alienates the rich and powerful by levying a direct income tax (even if it wanted to chances are that the administrative apparatus of the state neither has the capacity nor the will to collect such a tax), the only way to meet the IMF's demands is to indirectly tax the people.

This is not a new story. It is now more than two decades old. Without a meaningful rupture in the economic structure of society, and a similar rupture in the international political economy, the IMF and its sister institutions will continue to rule the roost and our elected rulers will continue to take steps just as unpopular as the dictators that they replace.

Needless to say this bodes very badly for democracy, because it makes it easier for the healthy number of pro-military 'experts' around to claim that democracy does not deliver and that on many accounts, benevolent dictatorship is a better option. In the heat of summer, with the 'war on terror' in full swing, monsoon rains down 30% and loadshedding at historic levels, many dubious segments of the media play along with the 'democracy has already failed' narrative.

It is difficult to defend those who have been brought to power through the people's vote if their only concern is self-preservation (although one can sympathise to some extent, after all, the establishment always does its best to discredit elected regimes). I wrote on these pages a few weeks ago about the plight of a dozen or so workers of a textile mill in Faisalabad who were fired for trying to form a union. Little support was forthcoming from the PPP and the PML-N. Democracy must be made to work for the people, regardless of the history of conspiracies that we have suffered as a nation. It is a hard task, but those who have been brought to power by the people must stick their necks out and make hard decisions.

I believe the only way to reclaim even some economic sovereignty is to break ranks with the international financial institutions (IFIs) entirely. However, Asif Zardari is no Hugo Chavez. Therefore I offer the next best option: to tell ordinary people some truth about what is actually going on. Given how regularly our leaders address us on live television and radio, why can there not be a broadcast about the economic situation and who is pushing the price hikes? Of course it does not help if large numbers of our representatives are engaged in shady activities (although never more shady than the men in khaki), which severely undermines the credibility of the elected regime. But I imagine a straight and honest speech or two would make at least some ordinary people feel like democracy is in fact quite different from dictatorship.

I have written before that in the absence of meaningful policy space, elected leaders need to take symbolic initiatives, which garner them, some public backing. As the majority of us suffer through the sweltering heat without generators and UPSses, so should those who are in the public spotlight and ostensibly making decisions that are causing the grief. This will not engender revolution, but it will reduce the distance between people and those who claim to represent them.

Finally, a message for PPP jialas who consider every protest during the tenure of a sitting PPP government a conspiracy to unseat the elected regime. It is true that the fundamental contradiction in Pakistani politics is between the establishment and political forces. But it is also true that there are numerous other contradictions that are no less important and cannot simply be pushed to the wayside. Class struggle is ubiquitous in Pakistan, as it is in all societies, and if any elected government chooses not to take meaningful steps to lessen exploitation -- because in the absence of a movement for structural change, eliminating exploitation is out of the question -- then it should not except that there will be no dissent. Any democratic government worth its name must be held accountable. One of the biggest impediments to building a democratic alternative in Pakistan is the belief that only the PPP is genuinely anti-establishment and anyone else talking about change is somehow complicit with the establishment.

The spontaneous protests against price hikes and loadshedding are neither sufficient to bring about fundamental change nor part of any conspiracy by the forces of dictatorship. They are simply expressions of frustration on the part of working people who are struggling to get by. If it cannot end the miseries of working people, the elected government should take them into confidence about its compulsions. This is the least it can do.

At a time when the country is in desperate need of external capital inflows to meet the current account deficit, foreign investment has come down from $5.44 billion in FY08 to $2.68 billion in FY09 by 51 percent. Foreign direct investment (FDI) has decreased from $5.40 billion to $3.72 billion, while portfolio investment (investment in the stock market) has fallen from $40.1 million to $1.05 billion during this period showing substantial capital flight.

The decline in foreign investment, particularly in FDI inflows, which are an important source of job creation and overcoming the balance of payment (BoP) problem, is a cause of concern. However, considering the country's politico-economic environment as well as global recession, the fall in foreign investment is not surprising.

The decision to invest in a foreign country, like other business decisions, is based on cost and benefit analysis. If perceived benefits outweigh perceived costs, foreign investment will be made. As a principle, foreign investment is made in those countries where risks are low and returns are high. However, speaking in specific terms, there are many factors in the host country, which restrict or promote foreign investment. These factors can be categorized into political, economic and regulatory. Of the two types of foreign investment -- FDI and portfolio -- the latter is far more volatile, as unlike the former it does not involve a long-term commitment. That is why a drastic surge or decline in the level of foreign portfolio investment is usually seen in response to slight changes in the host country's political or economic environment. Hence, cost and benefit analysis in case of portfolio investment is based mainly on short-term considerations, while in case of FDI; it tends to be based on long-term projections. Not surprisingly, during FY09 portfolio investment fell by 2,730 percent mainly as political instability escalated and the economic situation worsened.

Let's discuss the factors that promote or inhibit foreign investment, particularly FDI, with reference to the present situation in Pakistan.

We begin with the regulatory factors. Over past one and half decade, Pakistan has opened its economy through privatisation and deregulation and presently it has a very liberal FDI regulatory regime. One, there is freedom to bring, hold and take out foreign currency from Pakistan in any form. Two, fiscal incentives provided by the government cannot be altered to the disadvantage of the investor. Three, the privatisation of an enterprise is fully protected. Four, no foreign enterprise can be taken over by the government. Five, original foreign investment as well as profits earned on it can be repatriated to the country of origin. Six, equal treatment is provided to a foreign investor and local investor in terms of import and export of goods. Seven, FDI is not subject to taxes in addition to those levied on domestic investment. Eight, foreign currency accounts are fully protected and they cannot be freezed (courtesy the Foreign Currency Accounts Ordinance 2001).

Though Pakistan's regulatory regime is as much investment friendly as that of any other country in the region, the problem lies with the political and economic environment. The political environment includes political stability, law and order situation, government policies, political image of the country, continuity of policies, and clean administration. The political factors strengthen as well as emaciate the economy. Political stability and rule of law make for transparency, predictability and continuity of economic policies, build up investors' confidence, promote efficient resource allocation and increase output. Conversely, political turmoil increases the cost of doing business, precipitates erratic policy changes, makes investors sceptical and reduces the level of output. Hence, a country characterized by political instability, bad law and order, poor governance, adhocism of policies, a negative political image, and corruption in high places does not have a good potential for foreign investment, because these factors increase the risk of doing business.

Coming to Pakistan, after a period of relative political stability for five years -- during which FDI inflows registered a drastic increase though the bulk of those were restricted to the telecommunication and financial sub-sectors -- the country drifted into political instability in March 2007 when the Chief Justice of Pakistan was suspended by the then President. Since then the country has passed through political upheavals one after the other. The revival of democracy has done little to stabilise the political system; instead the political confrontation has weakened it and, what is worse, the worst is yet to be. However, it is the bad law and order situation created mainly be the wave of suicide terrorism coupled with the resurgence of ethnic violence in Karachi, the country's business capital, that more than any other factor has increased the risk of doing business in Pakistan as well as impaired the national image.

The security measures taken by the government have increased the cost of doing business. The anti-terrorism campaign has caused allocative inefficiency as increasingly resources have been diverted to security matters at the expense of economic development. Political uncertainty breeds speculation and results in capital flight. The country's credit rating goes down, which reduces its attractiveness as an investment market.

From politics we turn to the economy. The economic factors, which promote investment, include the size and growth of the economy, price and productivity of labour and other inputs, physical and commercial infrastructure, market-oriented policies like a floating exchange rate, the level of demand and proximity to other markets.

Take the relationship between economic growth and FDI, which goes both ways. Rapid economic growth attracts FDI, and increased FDI inflows in turn contribute to economic growth. In case of Pakistan where domestic savings fall well below the desired level of investment, foreign capital has played a cardinal role in economic growth. It was in FY03 that the economic growth got momentum when the real gross domestic product (GDP) grew by 5.10 percent compared with 3.6 percent in the preceding year. The same year (FY03) FDI inflows jumped to $798 million from $485 million during the previous year. Thenceforth, healthy GDP growth was accompanied by increased FDI inflows. This relationship continued until FY08, when GDP grew by 5.8 percent and FDI was registered at $5.15 billion. In FY09, economic growth shrank to 2 percent and FDI decreased by 31 percent.

Workers are widely regarded as the principal asset of a firm and the capital source of its competitive advantage. That is why there is so much emphasis in developed countries on human resource development. In Pakistan however development of human capital has been given a short shrift, which is responsible for low worker productivity. While making investment decisions, MNCs take into account both worker productivity and wages. In Pakistan wages are low but productivity is also low.

Infrastructure, including rail, road and telecommunication network, and price and availability of utilities also attract or inhibit FDI. Cost of water and power for business consumers in Pakistan is higher than those in other neighbouring countries like India and China. Infrastructure is also not up to the mark. Poor infrastructure and high cost of utilities increase the cost of doing business and make a country a less attractive market for FDI. The electricity shortage, which assumed dangerous proportions during last couple of years, has also been responsible for the decline in FDI inflows by pushing up the cost of doing business.

Finally, global recession has also contributed to the fall in foreign investment. For last more than a year, the world's leading economies, the major source of FDI in Pakistan, are in recession resulting in capital crunch and reduced investment outflows. The United Nations Conference on Trade and Development (UNCTAD) reports that global FDI inflows decreased by 21 percent during 2008. In case of Pakistan during FY09, FDI inflows from European Union countries went down by 38 percent, from the USA by 31 percent, from Japan by 43 percent, and from Norway by 63 percent.

The stubborn attitude of the government on the issue of petroleum prices, particular imposition of Petroleum Development Levy (PDL) through a midnight ordinance after suspension of controversial Carbon Tax by the Supreme Court of Pakistan, has virtually put the nation in a fix.

The Pakistan Peoples Party (PPP) government, which got majority votes in 2008 elections on the slogan of 'Roti, Kapra aur Makan' is losing its ground in general public after its failure to provide any relief to them. Resentment about government's economic policies is evident from the widespread public demonstrations and a full day strike of transporters in Karachi on July 14. People resent that the government has done nothing to provide any relief. In Pakistan inflation is still at higher side (around 15 percent) with prices of most of essential commodities touching the skies.

Increase in petroleum prices was one of the unpopular decisions of the present governments as hike in petroleum price has trickle-down effects on almost every commodity price as well as transport fares.

The government imposed Carbon Tax on all petroleum products in the 2009-10 budget on the pretext that the new tax would regularise the price mechanism of these products in the country. The Carbon Tax, was, however challenged in the Supreme Court by PML-N secretary general Iqbal Zafar Jhagra and on July 7 the Supreme Court of Pakistan, in its interim order, suspended the imposition of Carbon Tax on petroleum products. The decision of the apex court sent a wave of happiness among people as people welcomed it. However, the happiness of people did not last longer as just after one and a half day the President Asif Ali Zardari issued the PDL Ordinance by midnight thus brought the prices at the same levels of July 7.

Interestingly the Oil and Gas Regulatory Authority (OGRA) had slashed down the prices of various petroleum products in accordance with the Supreme Court decision. The OGRA price of motor spirit (petrol) was fixed at Rs 50.53 per liter, which was Rs 11.60 less than the price of Rs 62.13 per litre. Surprisingly the OGRA's prices were even lower than the previous prices (before July 1).

Contrary to popular sentiments, some pro-government politicians question the validity of the Supreme Court's orders of suspension of the Carbon Tax, which was imposed through the Finance Bill by the National Assembly, which is the supreme body of making laws. They termed it "judicial activism." It is interesting to note that all political parties, which are part of the parliament, did not raise their voice when the Finance Bill was being passed, but they have tried to gain political mileage through raising the issue outside the parliament.

Zafar Iqbal Jhagra had challenged the Carbon Tax on which the interim order was passed, where as he also filed constitutional petition against promulgation of presidential ordinance regarding PDL through advocate Shoaib Shahid and Ikram Chaudhry in the Supreme Court. However, the apex court returned the latter petitions with the objections that the petitioner is not directly connected with this matter nor have the petitions been filed on a proper forum.

It may be recalled that the Supreme Court of Pakistan has already been hearing identical constitutional petitions filed in 2005 by then PPP Senator Rukhsana Zuberi, Zafar Iqbal Jhagra, Secretary General, PML-N and others against fixation of oil prices. In this case, the Supreme Court had set up an independent commission headed by its former judge Rana Bhagwandas. The apex court's commission was asked to conduct an inquiry into higher price of petroleum products and profit earned by oil companies. The commission was also asked to look into the price mechanism starting from the date when Oil Companies Advisory Committee (OCAC) was authorised to fix prices of oil and gas products, that is, from June 29, 2001 to April 1, 2006 (when its authority was given to Oil and Gas Regulatory Authority (OGRA).

According to the report of Justice (retd) Bhagwandas commission, the government gave a free hand to private sector oil companies to fix petroleum prices in the country on fortnight basis. The Director General (Oil) was supposed to manage, ensure and monitor the demand and supply of petroleum products throughout the country, however, he or his nominee from the Ministry of Petroleum and Natural Resources did not bother to attend the meetings as the record showed that he attended only three meetings out of a total of 114 held every fortnightly from July 2001 to April 2006.

During the period the petroleum ministry was obliged to monitor and regulate the functioning of OCAC in a vigilant and proactive manner but perhaps for want of sufficient capacity and technical know-how, it used to faithfully accept and notify whatever calculations were done by OCAC, the commission deplored.

After receiving the Bhagwandas commission report the apex court is yet to give its decision, where as it has made it clear that the suspension order was temporary and a final decision would be taken after going through a 100-page report submitted by the judicial commission headed by Justice (retd) Rana Bhagwandas.

Despite the fact the government says that it has accepted the Supreme Court's interim orders and withdrawn the Carbon Tax on petroleum products, but it has imposed PDL to meet the budget deficit.

According to Khurram Shahzad, Research Head of InvestCap Securities imposition of the Carbon Tax was an attempt to increase the Tax-GDP ratio, because the Petroleum Development Levy is not included in the tax regime. Talking to TNS, Shahzad said the government had calculated to earn Rs 122 billion from Carbon Tax. However, he said according to his calculations the government could not be able to earn more than Rs. 100 billion from PDL. "Government may lose the Tax-GDP ratio targets by 0.8 percent also," he added.

The government claims that it earns only Rs. 18.57 per liter on account of different taxes from the current petrol price of Rs 62.13 per litre, however, the independent economists and research analysts believe that the government has been earning much more than that amount. When the petroleum prices came down to the levels of 50 dollars a barrel, the government did not pass on the benefit of price reduction to the common people, thus it earned trillions of rupees.

According to the oil pricing formula of the government, as explained by the adviser to Prime Minister on Petroleum Asim Hussain, in a press conference in Islamabad on July 19, besides 16 percent GST, the commission of oil companies on petroleum products is 4 percent, which is Rs 1.35 per litre on diesel and Rs 1.60 per litre on petrol, and at the current price level, petrol stations were getting Rs 2 per litre on petrol and Rs 1.50 per litre on diesel. He has shown hope to the nation that the prices of petrol in August will decline by Rs 3 per litre because there was a decline in the price of crude oil in the international market.

In the Supreme Court, Advocate Raja Saeeduzzaman Zafar, representing OGRA, presented the break-up of all components that comprise the price of different petroleum products.

He said the price of petrol on June 30 was Rs 56.21 that included an ex-refinery price of Rs 31.91, PDL Rs 10.54, sales tax Rs 7.75, oil marketing companies margin (OMCM) Rs 1.39, dealer's commission Rs 1.74 and inland freight charges of Rs 2.88.

On July 1, the price was increased to Rs 62.13 comprising ex-refinery price of Rs 36.59, carbon surcharge of Rs 10, freight charges of Rs 3.37, sales tax Rs 8.57, OMCM Rs 1.6 and dealer's commission of Rs 2.

The price of diesel on June 30 was Rs 55.71 comprising ex-refinery price of Rs 34.78, PDL Rs 8.53, sales tax Rs 7.68, dealer's margin Rs 1.5, OMCM Rs 1.35 and freight Rs 2.22.

On July 1, the price was increased to Rs 62.65 with ex-refinery price of Rs 40.94, OMCM Rs 1.35, carbon surcharge Rs 8, dealer's margin Rs 1.5, sales tax Rs 8.64 and freight Rs 2.22.

Pakistan is paying a heavy amount of foreign exchange on import of petroleum products. During the last fiscal year, Pakistan spent $9.8 billion on oil imports and it has projected oil import bill of $9.3 billion for 2009-10. The import of crude oil declined by 1 percent last year because of reduction in oil consumption in the country, according to a research by InvestCap Securities.

Annual consumption of the petroleum products in the country as per estimates for 2008-09 was about 18 million metric tons. Local crude oil production is about 17 percent of the total requirement while other requirement is met through imports of crude oil, refined HSD (High Speed Diesel) as well as furnace oil. According to the research by InvestCap, the local production of crude oil also declined by 7 percent during the last fiscal year.

Despite the fact the government claims that it is facing financial crisis and the Carbon Tax and now PDL would help offset the deficit to some extent, however, the people do not see any ray of hope in this situation and the prices of every product are increasing.

Ruled mostly by the military, Pakistan has remained under democratic deficit. Though the democratic tenures have been abrupt but we have followed the parliamentary form of government. Democracy has remained weak as per constitutional provisions and practices -- be it the interim constitution of 1947, 1965 constitution where the prime minister worked with the consent of the president. The 1973 consensus constitution was put under abeyance in 1977.

Democracy cannot work if it is only put as word in the constitutions but it requires commitment, systems, structures, practices and values. Modern democratic states realise democratic principles through complex institutions and practices including a guaranteed framework of citizen rights called the constitution, institutions of representative, transparent and accountable government the parliament, active civil society, free media, political parties and all other interfacing institutions. Among all the democratic institutions the parliament plays an anchor role. The functions of parliament include legislation, approval of taxation and expenditure (generally in context to national budget), ratification of treaties (inter or intra state treaties), oversight on executive actions, policies and personnel, approving constitutional changes and amendments, debating on issues of national interest and international importance and hearing and redressing grievances of citizens.  

The parliamentary committees are considered to be the backbone of the parliament. National Assembly strengthened the committee system after the adoption of 'Conduct of Business and Rules of Procedures' in 1992. Parliamentary committees in Pakistan are formed under Rule 198-245.  

Invoking the function of hearing and redressing grievances of citizens by the parliament, speaker Sindh assembly while addressing a conference in Karachi titled Parliamentarians and Civil Society Interface announced to form a petition committee in comprising members of the Sindh assembly for public hearing and redressing grievances of citizens.  

A petition may be defined as compliant, a demand for action or a request for review. The Petition Committee of the Sindh assembly would examine the matters raised by citizens and take appropriate action. The petition committee is expected to deal the matters of general concern, individual complaints and requests for collective stances on any area of public interest.  

Formation of the petition committee by the Sindh assembly is not only a historical decision welcomed by the public and the civil society but it will also have positive effect on the democratic institutions. Petition committee of Sindh is expected to make the parliament accessible to the people of the province. This is a road towards participatory democracy where people can claim, practice and enjoy direct democracy.

The process of formation of petition committee requires defining the powers, roles and responsibilities with corresponding institutions and systems for its effective functioning. The committee will also require standard but flexible operating procedures. This committee may be authorized to hear the public grievances and complaints, people's proposals for legislation and requests for review of existing laws and rules.  

Direct democracy, classically termed as pure and participatory democracy, is form of government where all citizens can directly participate in the state decision making processes. Participatory and direct democracy is best practised in a federation by provinces or states like it is successfully practised in United States. People's initiatives in US are measured by citizen-sponsored ballot (known as "ballot question" or "propositions") culminated in referendums if supported by the majority. Switzerland can be taken as an example, having 240 people's initiatives for referendum on public interest matters in 120 years showing on average two peoples initiatives per annum.

Referendums and binding referendums in different states of US can decide whether the given law should be scrapped. State referendums enable populace a veto on government legislation. Recall is right to people to recall elected officials by petitions and referendums. Above brief account of parliamentary functions of mature democracies exhibit that they have designed, created and practised democratic structures and institutions for their accountability and transparency and, provisions for peoples participation in parliamentary processes in addition to accountability of political parties and politicians through tenure-based elections.   

We in Pakistan are lagging behind these first-world democracies where initiatives, referendums and recalls are practised. Even Bangladesh as a younger democracy has both petition committee for people's access and privileges committee in their parliament. One hopes that the Sindh government will finalise all the operating procedures and mechanisms for petition committee and issues a gazette notification for the purpose. It should also influence other provincial and national governments for the formation of such committees. As, these committees would not only make parliaments accessible to the people but will improve governance accountability and transparency.  

Walking around some of the sunny localities of the United States and Western Europe, you will be struck by the ubiquity of solar panels adorning roof tops. The shiny rectangular frames fit snugly within roof tiles and churn out sufficient power to make these units self-sufficient in their electricity needs. Masdar City ensconced within Abu Dhabi is taking the concept a step further: an entire town where the infrastructure is powered entirely by the sun and other renewable sources.

Like the rest of the world, Pakistan has stated a commitment to fulfilling its burgeoning energy needs through environmentally friendly channels. The Alternative Energy Development Board has a stated goal of meeting 15% of our needs through renewable energy by 2010. But the existing legislation only provides subsidies for setting up large scale plants while ignoring smaller but more significant opportunities.

That does not mean that Pakistan has not been able to leverage the sun to power its needs at all. But the deployed solar panels have been limited to isolated areas of the country where they power hand pumps and agricultural machinery. They have just started making their presence felt on streetlights and billboards in cities but there seem to be no plans on the horizon for making them an integral part of building design.         

Jehanzeb Muhammad currently works in Germany which has invested heavily in researching and deploying solar power based systems in individual houses. "It's a pretty common solution here with the costs having plummeted over the last 2 years," he says. He points out that the major utility of solar panels has been found to be for heating purposes rather than standard electricity storage and distribution. The popularity of such solutions was initially limited to the rural areas but now they are gaining traction in urban areas since aesthetically pleasing designs and discrete fittings have been made available.

Zeeshan Iqbal is a graduate of National College of Arts architecture program who investigated the fitting of solar power into building structures in Pakistan as part of his thesis. He says that solar panels can be an effective power solution on large houses with vast roof space but many urban houses are small and have limited area over which they can harness power from the sun. He is also wary of climatic constraints that may limit the efficacy of such solutions in Pakistan. While it is true that Pakistan receives abundant sunlight, cities that suffer from abundant dust, fog and overcast conditions are not ideal places to set up such systems.

But experts universally accept that the major constraint to the ubiquity of solar panels is the exorbitant cost behind setting them up. Syed Nabeel Hasnain works as a business analyst for Optisolar in the United States which is attempting to popularise such solutions in residences. He is aware that the initial costs of setting up and maintaining such a system tend to be exorbitant but thinks Pakistan could look into using Chinese manufactured components that result in significant savings.

Nabeel also suggests Pakistan consider using the business models that have been popularised around the world to encourage people to deploy solar panels. One major model involves giving a leasing option to users so that the investment can be spread over a much longer duration. He points out that the lifetime of such panels tends to be about 25 years so the cost is justified but having to part with it in one go is too much for many consumers.

A second model popularised in the United States involves government subsidy of the initial panels. This is coupled with power purchase agreements by which excess power from panels is sold on to the National Grid at pre-defined tariffs. This ensures that spare capacity of panels does not go waste and allows buildings to serve as individual power stations.

Jehanzeb Akbar who works as an engineer at Mobilink suggests that the limiting factor behind the blossoming of this industry in Pakistan is the availability of an adequate support and maintenance infrastructure. He says that it is becoming increasingly common for solar panels to be incorporated into telecommunication towers but if such solutions were to become an integral part of buildings and homes, a new industry would need to spring up to cater to its needs. He says that users in the United States even have internet based tools by which they can calculate their cost savings by using solar panels depending on their geographic location. He feels that university campuses can set an example by powering themselves through solar panels and others will tend to follow.

The practicality of this approach to powering buildings and homes seems to be accepted. It will take a few brave and entrepreneurial individuals to take the lead and show others how it can be done. But most critically giving every building a chance to power itself needs to be a government priority. This approach is likely to prove more efficient and less controversial than pursuing larger dams and dwindling fossil fuel reserves.