Whither Sindh Bank

After retirement from State Bank of Pakistan on 03-02-2000, I got registered “Sindh Development Foundation (SDF) a N.G.O with the main objective of establishing Sindh Development Bank having its network at village level in Sindh at the first phase and later on through out the country. In the capacity of the Chairman SDF, I had discussed the envisaged plan through correspondence and personal meetings with the then Governor Sindh Mr. Muhammadmian Soomro who appreciated the proposal and suggested certain valuable changes / improvements.  But soon he was elevated as Chairman Senate.

After his relinquishment as Governor, I kept on writing weekly column in local dailies reiterating significance of such financial institution for the uplift of rural Sindh. I also contacted the then Revenue Minster and briefed him about the importance of Sindh Bank. He thereafter discussed my proposal with the then Chief Minister Mr. Mahar. However subsequently he told me that the CM did not agree to the scheme.  The Minster then discussed this proposal with the present Chief Minster also who found the same agreeable as five months back a plan of establishing Sindh Bank was advertised twice in all local as well national Newspapers. 

But since then, not a single word has so far been heard from the Sindh Government.  Probably the scheme has fallen prey to bureaucratic ineptness and lethargy and shelved in the cupboard of some inexperienced and shortsighted official of the Sindh Finance Department.

I request the Chief Minister and the Governor of Sindh to take the department concerned to task for abandon such an important scheme, having long term impact on the rural economy, and get the proposal of Sindh Bank implemented as soon as possible so that banking facilities can also be enjoyed by the downtrodden Rural Sindh. The establishment of this Bank will also help alleviate poverty; one of the major causes of our backwardness.  

DR. Ali Akbar M. Dhakan,
Chairman,
Sindh Development Foundation.
Karachi.

Old milk

The year 2007 will be remembered as the year when various government organisations changed their titles under the garb of restructuring and reorganising. First, the Export Promotion Bureau (EPB) was renamed the Trade Development Authority of Pakistan (TDAP). Then, the Engineering Development Board (EDB) became the Engineering Development Authority (EDA). The latest in the series is the Federal Bureau of Revenue (FBR), which was previously known as the Central Board of Revenue (CBR). Other, similar proposals are likely in the cards.

The title changes in these organisations are simply a exterior changes, it seems. They do not aim to achieve better results. At best, this is a matter of the proverbial old milk in a new bottle! TDAP is a typical example, showing a negative performance. It has not been able to achieve the export target of $18.6 billion US dollars set for the fiscal year 2006-07. By June 30, 2007, Pakistan’s total exports amounted to $17.5 billion US dollars, thus missing the target by six percent. Shockingly, exports to as many as nine countries that are among the top 40 of our export markets have gone down by about 30 percent in terms of value during the same period.

Hussain Sidiqui,
Islamabad.

Fly on

The European Union’s (EU) decision to relax the ban on PIA will go a long way in restoring passengers’ confidence and will give the airline additional capacity to fly on lucrative sectors such as the US and the UK. Almost 62 percent of the Boeing 747 fleet and 50 percent of the A310 fleet stand restored. PIA will now have the additional advantage of operating their Boeing 747 Combi aircafts on routes that offer a blend of cargo and passengers.

The airline needs to remain vigilant and keep their fleet fit for inspections, which are bound to occur when European flights resume. The national flag carrier needs to cut operational costs, by drastic reduction on dead sectors and adoption of economical routes, which offer savings in terms of reduced flight time and lower flying costs.

PIA needs to take routes that airlines like Singapore Airlines, British Airways, Virgin Atlantic and others take from Europe to South Asia. Aviation is a commercial business and is service-oriented. Cost cutting should not compromise quality or maintenance of basic passenger services. Consumer friendly schedules need to be tailored to suit the client, keeping fares affordable, with more direct flights so as to have an edge over other airlines.

PIA’s present marketing policies are counterproductive. If PIA had taken the initiative to buy the Boeing 777 offered by United Airlines in 2002-2003, the airline would have saved almost US$ 80 million per aircraft. Our neighbouring country, with foreign exchange reserves almost ten times greater than ours, exercised the option we refused. PIA has, since the induction of these aircraft, experienced acute financial problems, because the revenue generated was never enough to pay off the installments. The airline was in a catch-22 situation, taking loans to meet payment schedules. Today, PTA’s liabilities are double its assets.

It is time for PIA to change its mindset and make the best of their opportunities.

Abrar Hussain,
Faisalabadd