profitepaper pakistantoday 20th february, 2012

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Gender equality: an economic necessity Page 02

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LAHORE

F

IMRAN ADNAN

EDERAl Board of Revenue (FBR) has indicated that timely opening of dedicated cargo gate at Wagah-Attari border is very vital for Pakistan’s trade and economy as there is a huge potential for Pakistan’s exports through this route.

In the recent bilateral trade meeting between commerce ministers of Pakistan and India, which was held in Islamabad, FBR Chairman pointed out

Pakistan customs was ready to clear containerised cargo at Wagah Customs station. He said sufficient expertise was available to deal with it. However, National logistic Cell (NlC) would have to put up enough infrastructure and facilities to handle containers at the terminal, like enough hard standing cranes or gantries and fork lifters though some were available at present.

FBR’s official briefing summary made available to Profit shows FBR has highlighted, “NlC is currently developing infrastructure on the Pakistan side. NlC’s Wagah Border

Terminal (WBT) has been in operational since 2008, but is still incomplete and the work is in progress.

The progress on Pakistan side is on a slow pace due to non-seriousness of NlC authorities.” summary shows FBR is of the view that Integrated Check Post (ICP) on Indian side can be completed in the next three to four months with necessary facilities for trade and passengers. The major hurdle in achieving the goal of dedicated cargo gate within given timeline is slow progress on the tracks connecting the two terminals and new

Monday, 20 February, 2012

gates on both sides. Whereas, on Pakistan side, other infrastructural requirements, like sheds for storage of goods, parking area for trucks, building structures for custom operations and allied agencies at the terminal are yet to be setup. All these facilities may take four to five months. All requirements have already been communicated to NlC authorities by the Model Customs Collectorate (MCC), lahore. FBR underlines that Pakistan Customs has already improved its processing at Wagah and the clearance time has been minimised. Efforts are underway to

Goldsmith entrepreneur LAHORE

A

STAFF REPORT

s the world’s leading economies struggled with the prospect of doubledip recession over the least year and a half, investor rush into the safe-haven shelter of gold once again came to prominence.

And even as the American economy registers signs of slow stability, the sovereign debt crisis in Europe, exacerbated by credit agency downgrades, should provide enough international financial uncertainty to keep gold comfortably (uncomfortably for some) bid for at least the foreseeable future.

Interestingly, despite the Pakistani economy’s apparent decoupling with the international financial system, which kept the worst of the global recession spill-over from our shores, the correlation with gold is surprising. Whether or not the local market hike has been fueled by hedging for financial uncertainty or speculative frenzy that takes over whenever there is an irrational bull market remains to be seen. But the new trend has largely removed much of the middle class from the gold market – both buyers and sellers.

MARKET SQUEEZE Kamran Waheed is the face of Afzal jewelers, one of the market’s most respected names since as far back as anybody can remember. “The

further reduce this time. Perishable commodities are already being cleared on priority basis. No consignment takes more than two days to be cleared from the terminal, and usually the delay is due to incomplete documents by the importers. scanning facility is already available on Pakistan side. There are two types of facilities available — mobile scanner as well as static vehicle scanner. However, this facility is yet to be installed on Indian side. At present there is no properly planned demarcation of the trade areas at Wagah Border Terminal

by NlC, which is leading to a jumbled state – mixing imports, exports and transit consignments – as well as drivers of both sides, which are threats to the security of merchandise as well as facilities. This unorganised state of operations at the terminal is becoming an impediment in cargo movement.

FBR has pointed out that currently; Pakistan Customs is clearing approximately 150 trucks per day of Indian imports and sending 60 trucks per day of Pakistan’s exports. Whereas, potential both ways in much higher in number. The current frequency of trucks is due to the time limitation (7 am to 2 pm) at the current gate, space limitation on Indian side and inefficient cargo handling by NlC on Pakistan side. In the summary FBR further highlights that currently there is no laboratory working at Wagah.

Customs lab at Mughalpura Dryport, lahore, is being used. Quarantine services are also not available all the time. NlC is yet to provide space for facilities, like laboratory and quarantine procedures.

At present there is no mechanism of data sharing between the two countries at Wagah-Attari border, but the same can be easily made operational once the dedicated cargo gate is in place. It has already been proposed that to conduct joint examination there should be some sort of Electronic Data Interface (EDI) on both sides, but the same can only be installed once scanners are installed on Indian side.

production as opposed to import to sell,” he adds. Already, indigenous production levels have become cause for serious concern.

Failing corrective action, imports will undercut local market price levels, disrupting long-held market dynamics.

This phenomenon can already be seen at play. “singapore made chains flooding the local market are a signal of the trend to come,” according to Kamran.

UNNECESSARY HURDLES

market has changed considerably in the last few years. It has matured,” he tells Profit.

“And while this means customers are increasingly inclined towards elegance and value addition as opposed to earlier standards of weight, glitter and glamour, it also means established names like ours must now cater to the market’s high-end segment, the mediocre chunk having been eliminated”. It is little surprise that constantly increasing commodity prices, in times of low employment and generally high inflation, have sliced the middle income segment from the demand spectrum. However, owing to traditional compulsions, their indulgencies are reduced to

marriage-to-marriage buying.

NEW DIRECTION Running the family business in changing times, Kamran says the way to survive and thrive for his like in the future is diversifying into the diamond industry, with plans to set up Pakistan’s premier diamond cutting facility.

“We already engage industry professionals from across the world, principally from Turkey, Italy, India, etc. Therefore, we have the proper reach, it’s just a matter of leveraging it to initiate

There are obvious rewards in catering to rising fashion demand of the rich and fashionable, but the cause is not helped by inefficient bureaucratic delays and chronic shortage, making industry expansion cost-benefit simply unfeasible. And this makes Kamran obviously animated. “We have enough productive potential to generate meaningful revenue, bolstering the government’s kitty in the process, yet there is little official patronage. This market segment, hit by official neglect and crippling energy crisis, will continue to struggle to accommodate changes in fashion sense and demand.”

Helping the industry In a country where the precious metal and fashion industries have lagged regional contemporaries in many respects, Afzal jewelers offers lectures, trainings and internships to help shape the sell/supply side of the equation.

“Demand side maturity will have little effect if the industry is not ably equipped to cater to it,” says Kamran, emphasising the need for specialised institutions. Qualified professionals will not only ensure quality products and processes, they will also ensure the market grows as a whole, and becomes a more serious player in the international arena.

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Monday, 20 February, 2012

debate

Gender equality: an economic necessity FARAkH SHAHzAd

P

AKIsTAN has a population of about 180 million, over half of which are women.

Keeping in view the 51 per cent of the total population, it is a smart economics to ensure gender equality as a guarantee towards economic self reliance. By neglecting majority of the segment from the economic mainstream cannot produce better economic outcomes in this generation and the future. social scientists are unanimous that implementation of gender equality has the potential and dynamics to double the GDP from four to eight per cent that is no less achievement in the current global scenario. For that matter, all you have to do is change the centuries old social misperceptions ingrained in the society. It is an undeniable fact that women in Pakistan remain at the bottom of the socio-economic ladder.

Femininity is measured to be the essential concern in the process of socio-economic infrastructure development. Therefore, investment in women’s empowerment in Pakistan is the key factor in improving the economic, political and social conditions in Pakistan. Hence, decision making processes for women empowerment; valuation planning and policy formulation should emphasis on main streaming gender equality around Pakistan.

Women empowerment is not limited to control over imitation or financial freedom only, rather it is a grouping of literacy, employment and health. Women empowerment is an important and functional concept in the development of a community as it represents women as active agents rather than inactive recipients of development policies.

We have a golden saying of the founder of Pakistan who had well anticipated the future role of women in the society even before the formation of Pakistan. Quaid-e-Azam said in a speech in 1944, “No nation can rise to the height of glory unless your women are side by side with you; we are victims of evil customs. It is a crime against humanity that our women are within the four walls of the houses, like prisoners.” The lives of Pakistani women have changed during the past 30 years and they are more empowered and emancipated then they were ever before. More and more women are entering the workforce today as their predecessors, who made the first time at the work place and also made life easier for other women, lent them the encouragement to do so. But a lot more is yet to be done. There is an undeclared social resistance impeding the level of 100 per cent gender equality in our society. To analyse that, we need to break down ‘gender equality’ into dimensions of equality between men and women. These dimensions include human capital such as education and health, economic opportunities and differences in voice and agency the ability to shape outcomes within households, institutions and society. We have found a paradox; for instance, look at the last 30 years, you find in some areas gaps have closed quite dramatically, a striking example being education. But some gaps like equality in opportunities and decision making are

No nation can rise to the height of glory unless your women are side by side with you; we are victims of evil customs. It is a crime against humanity that our women are within the four walls of the houses, like prisoners QUAID-E-AZAM MUHAMMAD ALI JINNAH

1944 persisting, even as development occurs.

It is objectively understood that there are low rates of female labour force participation as in south Asia. This state of affairs exists in terms of gaps in earnings and productivity even within rich countries. look at Germany and the Us there’s a gap in what men and women earn.

Rich countries also show comparative gaps in women’s political participation.

We need to instill in our political leadership a strong sense of shift from our past perceptions. In face of the growing economic challenges of the dynamic world, the major emphasis must be focused on the fact that it’s an economic necessity for women to work, something which couldn’t be ignored. To understand the prevailing paradoxes, we have to revise our priorities and review our social value system that is highly biased against a significant component of the society by its counterpart. We have to neutralise our vision to honestly examine what goes on in the household, interactions with markets, how employers treat men and women, and legal and service-delivery institutions. A cross-cutting priority is ending the reproduction of inequality over time; ensuring attitudes regarding gender aren’t perpetuated and reinforcing our confidence in a world free from gender specific unequal level playing tilted against a class of people who make 51 per cent of our society. Gaps in earnings and productivity are explained by how men and women divide their time

The sustainability mindset

M

MicHAEL SpEncE

ARKETs and capitalist incentives have great strengths in promoting economic efficiency, growth, and innovation. And, as Ben Friedman of Harvard University argued persuasively in his 2006 book The Moral Consequences of Growth, economic growth is good for open and democratic societies. But markets and capitalist incentives have clear weaknesses in ensuring stability, equity, and sustainability, which can adversely affect political and social cohesion. Obviously, abandoning market-capitalist systems, and implicitly growth, is not really an option. Collectively, we have little choice but to try to adapt the system to changing technological and global conditions in order to achieve stability, equity (in terms of opportunity and outcomes alike), and sustainability. Of these three imperatives, sustainability may be the most complex and challenging.

For many people, sustainability is associated with finite natural resources and the environment. The global economy will probably triple in size in the next quarter-

The importance of gender equality is underscored by its inclusion as one of the eight Millennium Development Goals (MGDs) that all 193 United Nations member states and at least 23 international organisations have agreed to achieve by the year 2015

century, largely owing to growth in developing countries as they catch up to developed-country incomes and adopt similar consumption patterns. Thus, there is a well-founded fear that the planet’s natural resources (broadly defined) and recuperative capacities will not withstand the pressure.

To some, this logic leads to the conclusion that growth is the problem, and that less growth is the solution.

But, in developing countries, where only sustained growth can lift people out of poverty, limiting it cannot be the answer. The alternative is to change the growth model in order to lighten the impact of higher levels of economic activity on natural resources and the environment. But there is no existing alternative to which we can all switch. Changing the growth model means inventing a new one over time, step-bystep, from complementary parts. The two key ingredients seem to be education and values.

Everyone, not just policymakers, needs to understand the consequences of our individual and collective choices. We need to be aware for example, that population growth and rising consumption levels have

in our social scheme of things.

Due to social norms, women spend more time on family care.

Industries alone can’t settle this natural phenomenon. so the message is - great globalisation is happening and there is no other way, but to change. You still need directed policy action. You still need legislation with the power of enforcement. From Khyber to Karachi, gaps exist between laws empowering women and their implementation.

The wisdom demand us the establishment of a federal accountability mechanism to implement Pakistan’s international commitments including Convention on Elimination of all Forms of Discrimination Against Women (CEDAW) and Millennium Development Goals (MDGs) as it remains the sole responsibility of federal government under the ministry of human rights. An essential step to help improve lives of Pakistani women is to provide platform for inter-provincial and regional dialogue which may well pave way for a national framework on gender equality and women empowerment. Gender equality is, first and foremost, a human right. Women are entitled to live in dignity and freedom from want and fear. Empowering women is also an indispensable tool for advancing development and reducing poverty. Empowered intergenerational consequences, and that how we conduct ourselves will affect the lifestyles and opportunities of our children and grandchildren.

Thus far, the quality of our choices has been unimpressive, reflecting little sensitivity to sustainability and the impact of our choices on future generations. As a result, many developed countries have built up dangerously large public debts and even larger non-debt liabilities, owing to unsustainable growth patterns. Education and values are the foundation of sound individual and, ultimately, collective choices.

Without them, the incentives and policies that economists rightly argue are needed to increase energy efficiency, limit carbon emissions, economize on water usage, and much more will lack support and fail in the democratic decision-making process.

If sustainability is to triumph, it must be predominantly a bottom-up process. Environmentalists are right to focus on education and individual choices, even when their policy proposals are not always on target.

Education and values will drive local innovation, alter lifestyles, and shift social norms. They will also affect business behavior via choices by customers and employees, including business leaders. Thus, they are essential components of the formulas needed to pursue sustainable patterns of growth.

There are clear steps that can be taken. Appropriate regulation and sufficiently long time horizons can

women contribute to the health and productivity of the whole family and community and further improve prospects for the next generation. The importance of gender equality is underscored by its inclusion as one of the eight Millennium Development Goals (MGDs) that all 193 United Nations member states and at least 23 international organisations have agreed to achieve by the year 2015. It is, therefore, being acknowledged as a key to achieving the other seven goals which include eradicating extreme poverty, reducing child mortality rates, fighting disease epidemics such as AIDs, and developing a global partnership for development.

MDGs focus on three major areas of human development: bolstering human capital, improving infrastructure, and increasing social, economic and political rights, with the majority of the focus going towards increasing basic standards of living.

The condition of women has undergone undeniable improvements during the last century.

But these improvements haven’t happened everywhere and even where they have been the strongest, well, they are far from being strong enough. Gender inequality still lingers unchallenged: it’s one of those things that are hard to see precisely because they are right in front of our eyes. We need gender equality now, because more opportunities for women are more opportunities for us all. make structures of all kinds much more energyefficient, without imposing burdensome costs. In a similar way, transportation can become less energyintensive without restricting mobility. some of these shifts might be subject to international coordination, in order to avoid adverse competitive consequences, whether real or perceived. But too much coordination can be a bad thing. That is why climate-change negotiations are shifting from the misguided objective of seeking risky 50-year commitments to binding carbon-emissions targets to focusing on parallel, stepby-step processes, including higher energy efficiency, better urban planning, improved transportation systems, and on learning as we go.

Progress has been helped by growing awareness in populous Asia – and in developing countries generally – that sustainability is the key to achieving their longerterm growth objectives. This perspective perhaps comes more naturally in an environment of rapid growth, because their growth models require continual review and adaptation to be sustainable. Over time, values shift as knowledge is acquired and disseminated. Policies aimed at sustainability are likely to follow. What is unknown is whether we will reach that point fast enough to avoid major disruptions, or even potential conflict.

A version of this article was first published in Project Syndicate

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Monday, 20 Februar y, 2012

Swimming with sharks

EDITORIAL

Trilateral posturing

T

HE trilateral summit’s central significance no doubt lay in studying the Afghan endgame and beyond, yet Iran’s presence introduced subtle complications involving players from the region, the Persian-Arabian Gulf, as well as from well across the Atlantic. The outcome is generally Pakistan-positive, even if it aggravates risks.

One, neither Zardari nor Karzai needed lecturing on the Us take on the Ahmadinejad invite. That they are willing to put the entire weight of Us policy aside to accommodate Tehran indicates increased focus on regional management, an appreciated novelty. Two, Zardari’s all to visible desire to speed up the IPI, currency swaps and all, betrays much deeper division with the Us than understood in the initial aftermath of the salala check post attack. Three, one and two will not only upset America’s disengagement with Afghanistan, they will

also disfigure the Washington-led intense sanctions regime against Tehran.

As for Pakistan, the script is clear. TAPI may or may not be in the offing, but IPI is a definite go. Four, the Iran angle, and the timing of it, will also cast a long shadow on Islamabad’s give-and-take with the GCC, where interestingly, billions in annual military flows cite Iran ahead of Israel as the chief concern.

Whatever the exogenous compulsions, Islamabad has picked the right card out of the deck, putting local needs ahead of wish lists from friends and partners. The IPI, already delayed, is mission critical for the country’s energy needs. It might just prevent caving in of our manufacturing and industry, at the same time providing fiscal breathing room to Iran in troubled times. However behind the curve, the region’s leadership seems to have realised it must stick together if American departure and Taleban ascent are to be contained.

Indian prejudice

The MFN question

This is with regards to the news item, “Industrialists grill Indian commerce minister” published on 15th February. It is another case of blatant Indian prejudice against Pakistan, and that has been clearly exhibited by their commerce minister Anand sharma and his crew’s words. The Indians want us to completely eliminate the negative list, which they don’t want to do anything with regards to the non trade barriers at all.

Without New Delhi’s cooperation, the decision to grant India the MFN status would be a disaster and it would further exacerbate our economy. Instead of complying with the Indian contingent’s demand, we should have taken a stronger stance against them and stressed the immediate removal of the NTBs.

This is with regards to the news report, “Textile ministry questions transparency of MFN to India” published on 18th February. I have serious doubts about the sincerity of Indian MFN claims and have been saying it for a long time. The first step should be to ask India to open trade for Pakistan exports and then go to next level. Pakistan should demand removal of all NTB on Indian side before activating MFN. I think that one has to take things in perspective, and even if one ignores the historical animosity between the two sides, the current trade dynamics and heavily in favour of India. And this needs to change, before taking any steps.

SAAd MubARik

pARvEz

LAhORE

kARAchI

Najaf Gillani

I

N this competitive professional world there are many factors you have to keep in mind for survival. It is very easy to fall prey to sharks out there, which is why you have to be prepared for self defense. self defense requires tools and skills which will help you not only protect your job, or get a new one, but will also help you succeed in the professional world.

'The key to success is not your intelligence but your adaptability,' I read once and over the course of my career this is something I have learned. It is absolutely vital to keep yourself up to date with the changing professional world.

I have had many discussions with many people affected by the economy downturn in Us and all of them were very comfortably working at one place for many years without sharpening up their respective skill-sets. I refer to those people as small aquarium fish, but once the tank breaks, they are out in the open sea with deadly sharks and they don't stand a chance competing against.

Working in Us at a senior management level for the past 14 years, I have studied the corporate world very closely and one thing which I find detrimental for the candidates is to stay where they are and not getting up to speed with industry changes. No matter which industry you work for there would be a time when your services will not add any value to the company and

The ability to learn faster than your competitors may be the only sustainable competitive advantage

people are let go even if you have served the same company for many years. Keep in mind that the learning never stops so strive for increasing your knowledge base with the passage of time. By keeping yourself informed about industry changes and learning the industry buzz words makes you score brownie points in front of your boss as well as help you in job interviews.

My message for jobseekers is to reorient their focus rather than lose heart. Instead of keeping your search open ended, try to find the special skills you have which no one else can offer in the market. Whether it is your inter-personal or sales/marketing or technical skills, you can easily use them in your favour. One more important thing I want to call out here is that the resume should be geared towards highlighting your key strengths and should be keyword driven. You don't have to write tons of information just to show the employer that you are the master of everything but only show relevant strengths which will make you the best fit for the job.

Once you have your foot in door for the interview then you can easily provide details on your experience. No one is above you so your confidence should never shake. Always be sure about what you say or do and if you don't know you should just admit it instead of making stuff up. The important thing is to show that you are eager to learn and can quickly pick things up. This shows your confidence and it is appreciated anywhere in the world. People are always under the impressions that they are doing everything right and still don't see any results but that's not true, you have to have a competitive edge over others. I want the youth and young professionals to put the game face on and get prepared to face the challenges with an effective approach. I read somewhere, 'the ability to learn faster than your competitors may be the only sustainable competitive advantage’.

The professional world was always like this, where you are out in the wild against the deadliest competitors so preparing yourself to be successful is very important. It will help you swim with sharks without been eaten up by one of them.

The writer is Director, E-Commerce, Walmart

Grilling the wrong chicken

Kunwar Khuldune Shahid

H

UNGER, they say, forces you into taking aberrant actions; and the degree of abnormality of these acts is of course directly proportional to the swelling appetite. Hence, when our industrial magnates prepared their metal rods, charcoal briquettes and spices to ‘grill’ the visiting Indian commerce minister, Anand sharma, this week, what they were actually doing was fanning the embers of potential trade starvation, caused by our commerce minister’s hasty decision making. It was like vying to steam-cook the neighbour’s fowl, because you

knew that your own chicken was tasteless and unsavoury anyway. And just as one had feared, the hen from the neighbourhood nonchalantly parried away probing advances, and simply refused to be intimidated by any array of rods or flames that we conjured up. sharma was bombarded with a blitzkrieg of queries regarding the non-tariff barriers; for example, Indian labeling requirements, lack of visas for our textile traders – despite importing cotton worth $16m – and restriction on cement imports.

And the minister meticulously handled the onslaught promising reevaluation of NTBs to cement, textile and agriculture sectors, revising the visa rule and with his Pakistani counterpart signed three initial trade related agreements – customs cooperation agreement, a grievance redressing mechanism and one for mutual quality certification recognition. Our industrialists’ scepticism is understandable, for, without New Delhi’s provision of transparent access to our raw materials and lifting the NTBs the trade graph would continue to be skewed towards the Indians. Their discontent, however, is a corollary of our commerce ministry’s

imprudence more than the Indian prejudice, and therefore it is evident that we have been grilling the wrong chicken. Hoping for sharma to safeguard the interests of Pakistani industries smacks of a 3D marination of delusion, doubt and desperation; and this is where our tasteless chicken springs into the kitchen. Makhdoom Amin Fahim was under the cosh in a recent cabinet meeting over the ‘unnecessary haste’ in trying to convert Indian trade items from the negative to the positive list, without taking the interior ministry, textile ministry and other stakeholders on board. And this is precisely what perturbs the industrialists the most.

Amin Fahim promised the Indian commerce contingent of completely removing the negative list by the end of the year and sent a summary to the cabinet of gradually phasing out the list in three quarters, ending on June 30, september 30 and December 31 respectively. Now unless the commerce minister has somehow dug out Aladdin’s lamp from an Arabian cave, with a genie to grant the industrialists three wishes – one each for the three aforementioned quarters – it is hard to perceive Pakistani industry miraculously becoming so

SHAHAB JAFRY Business Editor

KUNWAR KHULDUNE SHAHID Sub-Editor

BABUR SAGHIR Creative Head

ALI RIZVI News Editor

MAHEEN SYED Sub-Editor

HAMMAD RAZA Layout Designer

While his Indian counterpart dealt with a blitzkrieg of inquests, Amin Fahim should be the one under the gun

competitive as to give the Indian market a run for its money so quickly. This move would give them no time to establish the needed infrastructure to compete with Indian goods, when they eventually start flooding in after the negative list removal and the MFN grant.

It is appalling to note that our commerce minister did not even consult his own colleagues, let alone other stakeholders, before deciding upon our trading future, and hence, the federal cabinet justly deferred the matter. such a rushed decision could have catastrophic consequences as the balance of trade, which is already heavily inclined towards India – out of $1,053m worth of bilateral trade last year, our imports were worth $860m, with a meager $193m (18.33 per cent) being exports – would precipitously tilt further, which in turn would quash our industrialists, potentially aggravating the long-term economic growth of the

country. The prudent approach would have been to discuss a bigger timeframe and transform the negative list in synchrony with India’s relaxation of NTBs. However, with the ministry seemingly taking shortcuts, their loyalty towards the national cause and the protection of local industry undoubtedly comes under scrutiny. And therefore, while barbecuing Anand sharma was an instinctive reaction from our industrialists, it is his Pakistani counterpart who should be earmarked as the tandoori tikka. And while we are on that ‘tikka’ is the Finnish word for ‘woodpeckers’ that are often said to be ‘highly self-seeking species that are aggressive to other members of their species.’ suddenly everything fits into the picture perfectly.

The writer is Sub-Editor, Pakistan Today. He can be reached at khulduneshahid@gmail.com

For comments, queries and contributions, write to: MUNEEB EJAZ Layout Designer

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