monthly economic affairs september, 2013.pdf

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Ambassador of Brazil to Pakistan

His Excellency,Mr. Alfredo Leoni

ExclusiveInterv

iew

SEPTEMBER 2013

Volume-II, Issue-VII

"Its impossible for the world to be oblivious to Brazil"7th largest consumer market

Brazil


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EDITOR

Deputy Editor

Yassir Rasheed

Maria Khalid

ADVISORY BOARD

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EDITORIAL BOARD

Dr Ashfaq hassan Khan

Dr Abid Sulehri

Pervez Amir

Shah A Hassan

Zubair Malik

EDITORIAL From the Editors Desk

413

Currencies are devalued when countries have no way to correct the

economic mistakes done in past. The currency devaluation encour-

ages exports and discourages imports to some extent but that is for

a limited time. A government can be forced into devaluation by

an ominous trade deficit. Thailand, Mexico, the Czech Republic all devalued

strongly, willingly or unwillingly, after their trade deficits exceeded 8% of the

GDP.Pak rupee is under pressure against the US dollar. The rupee devaluation

would multiply the cost of business, affecting the productivity of economy and

competitiveness of exports, lowering the import-substitution process and hurt-

ing the trade and industrial activities in the country as import prices for machin-

ery and industrial raw material will be increased.

Depreciation of the rupee is intensifying the cost of doing business and

badly affecting the industrial and manufacturing sectors as Pakistan has to im-

port fertilizers, food items, oil, machinery and industrial raw material. Pakistan

has been expecting to contribute to its deficit by financing the Coalition Support

Fund, US aid, 3G auction and Etisalat payments but this wasnt materialized.

This exerted pressure on financial account and rupee started weakening against

US dollar. However, uninterrupted increase in remittances is helpful in solving

the problem of repayments easily and stabilizing the exchange rate.

Present pace of the rupee depreciation will push up the inflation to go fur-

ther high and a common man will hurt badly in these days of growing cost-push

inflation. The depreciation of Pak rupee will add in billions i n rupee term to the

volume of foreign debt of the country which now stands at US $65 billion.

Pakistani rupee is losing fast against regional currencies as it has remained

just half against the Indian rupee and the Bangladeshi taka also appears much

stronger than the Pakistani currency. Bangladesh achieved some good achieve-

ments in textile exports but it is not a large economy with good resources. India

showed strength in its economy during a year when the global economy was in

critical situation because of economic and financial crisis in the United States

and Europe which finally absorbed the entire world.

The new government is still unable to come up with a much needed long

term ambitious plan to put the economy on right track. This should provide a

model for exporting value added branded products, buttering the quality and

image of existing products, finding new export markets and better aggressive

marketing strategy. Furthermore, there is need to further cut the unnecessary

government expenditure, improvement in the delivery of service by the gov-

ernment agencies and measures to sustain the budget and trade deficits. For

economic stability, multiple and persistent exchange rates are always of great

assistance. Merely willful depreciation of currency is not the solution of current

economic crisis and should not be resorted to in near future.

CURRENCY DEVALUATION, ITS

IMPACT AND COURSE OF ACTION

SEP 2013

D I S C L A I M E R

Utmost care is taken to ensure that articles and other information published are up-to-date and accurate. Furthermore,responsibility for any losses, damages or distress resulting from adherence to any information made available through thecontents is not the responsibility of the magazine. The opinions expressed are those of the authors and do not necessarily

reect the views of the editor, publisher and the management. Comments and suggestions are welcome.

Pages 12-13

Page 18-19

Pages 20-21

Pages 34-35

Exclusive

5 SEP 2013

Brazil's Beautiful

Necklace

A Veiled Threat

Understanding

Pashtunwali

UAE & World

Expo 2020

Tammy Swofford

Afrah Jamal

Yasmeen Aftab Ali

Tausif Ur Rehman

Abundant Clean

Electricity...........................14-15

News in Brief......................16-17

Microsoft Bribe Probe Reaches

into Pakistan, Russia Deals......24

Snowden and US-Russian

Relations.................................25

The Battle for the Soul of

Egypt.................................26-27

Conflicts, Contradictions &

Confrontations..................28-29

Where is the Paisa.............30-31

What is Shadow Banking...32-33

KSE: Where Foreigners Call the

Shots.................................36-37

Pages 22-23

Post-flood Relief

Operation


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Brazilis the largest country in South America and the fifth largest in the world in terms ofterritorial area. With continental proportions, it extends over an area of 8,514,877 km.To the north the country is crossed by the equator, while to the south it is crossed by the Tropic of Capricorn.

It has a population of more than 190 million, most of whom live in urban areas according to the 2010

Census. The population was formed by a combination of European peoples, negros (Africans brought to the

country as slaves between 1530 and 1850) and native Indians. Later, after the liberation of slaves, the country

received several waves of immigration (Germans, Italians, Spaniards, Japanese and Syrian- Lebanese) who

created the ethnic background of the current population. Most Brazilians are negro (50.74%), with Caucasians

accounting for 47.73% of the population.

613 7 SEP 2013


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9 SEP 201313 8

INTERVIEW

Your Excellency, please give us yo ur view on the Pak-Brazilrelations with respect to todays socio-political environment?

Brazil maintains strong political ties with Pakistan that continue to grow stronger

with each passing year. In the past three to four years, we have made bilateral relations

with Pakistan much broader in terms of diplomatic and political relations. We have

to first promote more trade between the two, then cooperation in different fields may

ensue.

Ours is the first Latin American country which established its embassy in Karachi

in 1952. In all these years, Pakistan and Brazil have cultivated very friendly relations

and both countries are supporting each other on many international forums. The trust

level that exists amid these two countries is evident from the recently proclaimed visa

policy that offers five-years multiple entry visa facility to the businessmen.

Recently, Brazils nominee Mr. Roberto Azevdo won the elections for Director

General appointment at the World Trade Organization. It was a big boost to Brazil's

global clout and I am grateful to Pakistan for its support to Brazils candidate in the

WTO elections. Pakistan supported Brazil because Brazil is the voice of developing

countries and has set sights on addressing the concerns of developing countries in the

WTO.

What are the dimensions of B razils foreign policy?

Brazil is a 200 years old country which got independence in 1822.

Prior to that, it was a territorial extension of Portugal which was a

typical colony that didnt have its own rules of law. However,

after declaring independence, Brazil adopted an open dip-

lomatic policy that is friendly to all. Brazil does a lot for

cooperation in some major areas such as Latin America,

America and Africa which is the most important region

for us.

We do not believe in exclusive diplomacy,

rather we do inclusive diplomacy. We maintain

cordial relations with nearly all member

countries of the United Nations and

have embassies in 130 countries of

the world.

There are a few countries

in the world who enjoy friendly

relations with North Korea and

South Korea, where as Brazil

Ambassador of Brazil to Pakistan

His Excellency,Mr. Alfredo Leoni

"We do not believe inexclusive diplomacy,rather we do inclusivediplomacy. We maintaincordial relations withnearly all membercountries of the

United Nations andhave embassies in 130countries of the world."

Pakistan possesses a very significant geographic position with

very important neighbors, a considerable territory and a substantial

population, thus making it impossible for the other countries to be

oblivious to Pakistan, said Ambassador of Brazil to Pakistan, His

Excellency, Mr. Alfredo Leoni in an exclusive interview with Monthly

Economic Affairs. Brazil is very much certain about Pakistans bright

future and I believe that Pakistan will soon rise above the problems

like energy, slow growth and terrorism and development has to

come about, whether Pakistan wants it or not, in fact prosperity of

the entire region partially depends upon growth and development

of Pakistan thats why Brazil gives special importance to relations

with Pakistan and regards it as a vital power of the region.

Maria Khalid

"Its impossible for the world to be oblivious to Brazil"

7th largest consumer market

Brazil


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13 10

enjoys cordial relations with both of them. Correspondingly, Brazil is a

very close partner of Iran but at the same time we have good relations

with Israel as well and it is an evident supporter of Palestinian cause.

Brazil does not take sides but we support countries on the fundamentals

of right or wrong.

Which are the key areas where relations could beenhanced between the two countries?

Since I have been given assignment in Islamabad, I am making ef-

forts to broaden the scope of relati ons and also searching for new avenues

of cooperation. Brazil has many experiences that may help Pakistan and

the most interesting area is agriculture, especially the production of sugar-

cane. You may ask, why sugarcane, let me tell you, because sugarcane can

help Pakistan in meeting its energy requirements also. Pakistan just needs

to increase its sugarcane production and also the quality of sucrose in it.

Most Pakistanis may not know that Brazil is the eight largest pro-

ducer of motor cars and it has the biggest fleet of cars that run on 100 %

ethanol fuel that is produced by sugarcane. It could be a substitute of CNG

in Pakistan.

Ethanol fuel is a success story in Brazil, how wouldyou describe it?

Brazil's ethanol program started in 1975 when soaring oil prices had

put a chokehold on the economy. Sugar cane was an obvious candidate,

given Brazil's almost endless amount of arable land and favorable climate.

As of now, Brazil is the second largest producer of ethanol in the world

and the largest exporter of its fuel.

Most car makers in Brazil sell flexible-fuel cars, trucks, and mini-

vans that can use gasoline and ethanol blends ranging from pure gasoline

up to 100% ethanol (E100). In 2009, 90% of cars produced ran on sug-arcane ethanol. Over half of all cars in the country are of the flex-fuel

variety, meaning that they can run on 100 percent ethanol or an ethanol-

gasoline mixture. Ethanol accounts for more than 50 percent of current

light vehicle fuel demand, and the company expects this to increase to

over 80% by 2020.

This is an area in which we can collaborate and on behalf of

my government, I have conveyed to my counterparts here that

Brazil is open to share its indigenous technology to produce

ethanol fuel with Pakistan. It took Brazil 48 years to develop

the technology to run motor cars on 100 % ethanol fuel.

Ethanol is used for tractors, generators etc and we would

soon start using it for planes because its clean energy.

Moreover, like Pakistan, Brazil is an agriculture based economy

and it has developed its agriculture technology a lot and the experience

of Brazil may be handy for Pakistan, for example, to protect its grow-

ing crops from insects, the growers do not use pesticide, instead Brazil-

ian farmers use insecticides to protect their crops from insects. There

are such bees which consume plaque and they dont eat crop but the

germs. Brazilian agriculturalists have developed the friendly insecticides

and created a culture of germs. Brazil can assist Pakistan in creating the

germs culture and nourishing of friendly insecticides that suit the soil and

weather conditions of Pakistan.

Recently, a technical team of Pakistan Agriculture Research Coun-

cil (PARC) visited Brazil and witnessed the used of insecticides and pro-

duction of ethanol from sugarcane, its use in cars and generators and they

were keen to develop the technology in Pakistan. However, we are still

waiting for a ministerial level visit to Brazil from Pakistan so that both

countries could sign formal agreements for bilateral cooperation.

Earlier, I have made concrete efforts for the visit of ex-foreign min-

ister, Hina Rabbani Khar, to Brazil but it couldnt be materialized, though

it was scheduled thrice but every time it had to be cancelled at the eleventh

hour.

Now, there is more likelihood of a high level delegation visit to Bra-

zil at the earliest as the current Advisor to Foreign Affairs, Mr. Sartaj Aziz

is an aficionado of Brazil and has visited many times plus he is a devotee

of enhancement of Pak Brazil relations.

Do you see potential in bilateral trade?

Brazil is an emerging power, the sixth largest economy of the world

and is the seventh largest consumer market. Brazil is proud to be the fi rst

exporter of many commodities including ethanol fuel. Brazils i mports are

around 220bn dollar and exports are 230bn dollars.

As an ambassador of Brazil, my efforts are aimed at promoting Bra-

zil and to make it available here. There is no obstacle for trade with Brazil

and let me assure you that it is a profitable market.

Brazil has lots of stake in this region. It has a trade balance of $11

billion with India;its $1 billion with Bangladesh; $850 million with Sri

Lanka; and with China,being the largest trade partner of Brazil,we havea

trade balance of 75 bil lion dollar per annum. Un-

fortu- nately, the bilateral trade volume of

Pakistan and Brazil is as low as

$300 million per annum. How-

ever, we are eyeing to enhance

the bilateral trade to at least one

billion dollars in next three years

and the potential is there.

The major Brazilian ex-ports to Pakistan include cot-

ton, fuel pumps, plastic, iron

and steel, tobacco and

pulp among others, while major Pakistani ex-

ports to Brazil include textile items, surgical

items, soccer ball and manicure instruments in-

cluding others. Pakistan produces best quality

footballs world over which is very popular in

Brazil being a soccer crazy nation. Especially,

in the area of Biotechnology (from agriculture

to pharmaceutical research), development of

vaccines and in telecommunication and com-

puter engineering, bio-energy, both countries

could explore further opportunities.

Brazil produced 86 % of its energythrough renewable resources.Have you offered assistance toPakistan for meeting its energyneeds?

Brazil faced the same energy crisis a few

years back and was triumphant in overcoming itby means of Hydropower projects.

Importantly, energy is also on top of the

list for Brazil. Hydropower is a $2.5 trillion in-

dustry in Brazil and I have been talking major

companies of this discipline into bringing their

representatives to Pakistan. Since its something

new for them, it is essential to put them in the

picture that how safe it is to come here. It is also

important for us to let people in Brazil know

how profitable the market over here is.

Pakistan is blessed with natural water re-

sources and the solution of power crisis lies in

hydroelectric projects by building small dams.

These small dams would not only increase

power generation but could help chucking flash

floods out.

Is the Brazil cost the highcost of doing business in Brazil being addressed?

Yes, cost of doing business is high in Bra-

zil but the profits are even higher. The cost of

living is also high because of high taxes thats

known as Brazil Cost but believe me it is avery profitable country that is why Pakistans

export to Brazil have doubled during last two

years.

Brazil is not a mystery. In order to suc-

ceed the investor has to invest in locality, you

can try to sidestep the local partner but you can-

not sidestep localization. You have to be really

focused in the country; you cannot believe that

you can succeed by controlling from Islamabad.

You have to control your investment from Bra-

zil itself as one has to provide competence and

growth together; not just through acquisitions

but through acquiring competences and you

have to be able to provide services that go along

with that.

Do you see any chances ofextending co-operation in thedefense sector and enhancementof defense relations between thetwo countries in near future?

The scope of defence related relations be-tween the two countries is quite vast and needs

to be extended. In last few years, there has been

a significant increase in the military relations.

Both sides have exchanged some high level vis-

its in this regard. Recently, the naval chief of

Pakistan visited Brazil. Pakistan bought some

small sized airplanes from Brazil in 2008 and

another deal for procurement of defense air-

crafts is being negotiated. The military aircrafts

manufactured by Brazil that are safe to fly are

available for Pakistan at competitive prices. A

Brazilin team also participated in naval exercise

held last year in Pakistan. Brazil has also sold

100 MAR-1 anti-radiation missiles to Pakistan

despite India's pressure.

What efforts has the embassy beendoing to build stronger people-to-people interaction between ourcountries?

Various cultural activities have been orga-

nized between the two countries for promotion

of each others culture through art exhibitions

and conducting musical programmes. We haveinvited Pakistani artists in the past to visit Brazil

and experience its diverse culture, Furthermore,

Brazil is also promoting Pakistans education

sector by offering undergraduate and graduate

scholarships in various disciplines to Pakistani

students.I believe that this country has huge po-

tential which needs to be explored.

The embassy has already announced

Portuguese language free of cost classes at the

embassy. Moreover, Brazil also offers post-

graduate level scholarships for Pakistani stu-

dents. Currently, there are about sixty Pakistani

students in Brazil for education on a full schol-

arship.

Pakistan imports from Brazil 2012

ProductsMillionUS $

Cotton 113

Machinery, boilers, etc 15

Plast ics & ar ti cl es thereof 12.7

Soya-bean oi l & its fractions 16

Iron and Steel 10

Paper & paperboard 8

Tobacco 5

Pepper 3.3

Rubber and articles thereof 2.2

Others 6.8

Total: 192

Pakistan's export to Brazil 2012

ProductsMillionUS $

Textile Made Ups (Apparels,

Home text, cotton Yarn)53.1

Soccer Balls 9.7

Medical and SurgicalInstruments

7

Mucilage & thickenersderived from locust beansor guar seeds

5

Articles or leather 4

Manicure and pedicurearticle and Scissors 4

Ball point pens, pencils andcrayons

2.5

Brazil is an emerging power, the sixthlargest economy of the world and is theseventh largest consumer market. Brazilis proud to be the rst exporter of manycommodities including ethanol fuel.Brazils imports are around 220bn dollarand exports are 230bn dollars.

INTERVIEW

11 SEP 2013


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mother of her necklace. This danger is firmly established

within the Tri-Border Area shared by Brazil, Argentina and

Paraguay. This danger will eventually engulf a greater num-

ber of the 200 indigenous groups who call Brazil home. This

peril has a name and presents as a 21st century reality.

Hybrid narco-terrorism organizations present the most

significant danger to the survival of the micro-societies

which are dependent on both their isolation and unspoiled

habitats to maintain their generations. This nexus of drug

cartel old-school evil and terror organization new-school

evil is a symbiotic relationship based on criminal financial

greed and the need to fund terror. According to the U.S.

Drug Enforcement Agency, nearly fifty percent of the des-

ignated foreign terror organizations have traceable links to

the global narcotics trade. These hybrid entities are depen-

dent on movement within the shadow lands of nations where

palsied law enforcement efforts are noted. Whether looking

at remote regions of Brazil, Pakistan or Mali, the ripple ef-

fects of narco-terrorism activities on indigenous cultures are

the same. Erosion and erasure of culture occur whenever a

protective cordon is lacking.Whether it is a connection between Lebanese terror

organizations and drug cartel financiers or any other hybrid

accommodation, the challenges remain the same. Brazil has

stewardship over a vibrant human puzzle. This stewardship

is not based on human initiative but on a unique interface

between geography with human biology. How can this great

nation maintain policy initiatives which function as two

hundred separate protectorates over rights of the indigenous

groups to maintain their lives in peace?

Brazils constitution gives the nod toward the tribal

diversity within her borders. The government acknowledges

the right of the indigenous tribes to benefit from their re-

sources, and maintain their generational traditions. Their

removal from the land is forbidden.

Narco-terrorism organizations do not abide by con-

stitutional restraint. They blaze their trails across forested

paths and leave behind the signs of psychological infesta-

tion. Narco-traffickers despise the human race of which we

are all a part. They embrace a dangerous hybrid organiza-

tional culture of their own. It is one of predatory exploita-

tion. A world with boundaries and no trespass zones does

not exist within these criminal accommodations.

Is annihilation of any tribe worth a shipment of co-

caine? Drug traffickers have long forgotten their own moth-

ers. They have even less regard for the vulnerable children

of Mother Brazil.

Government is tasked with the stewardship of national

resources. Today the stewardship of Brazil is noted when

considering that the nation sustains an enviable and robust

economic environment with the sixth strongest national

economy in the world.

Beyond the stewardship of national economy Brazil

remains uniquely different regarding her challenges as the

sentinel of her gene pool. The need to maintain protected

status for the 200 distinct and separate indigenous tribal cul-

tures is a guardianship challenge which requires wisdom. A

strong backbone is required to eradicate -in efficient man-

ner- the narco-terrorism routes which trouble the people. My

best wishes are extended. And may the beautiful necklace

of indigenous culture remain draped across the shoulders of

a nation.

The writer is a freelance journalist and author of the novel

Arsenal. She can be reached at [email protected]

13 SEP 201313 12

If a nation is likened unto a mother watching

over her children, then Brazil is the mother

who wears a beautiful necklace. This multi-

colored strand contains 200 beautiful gem-

stones. They are unique and distinct. Each

gem represents one of the many indigenous

tribes who call this nation their home.

Within this demographic are approximately 188

different languages and (an estimated) sixty-seven

uncontacted tribal groups that are blissfully unaware

of the world as it exists beyond the confines of their

habitat. Brazils indigenous population presents as an

ethnographers paradise. Culture and social mores,

natural habitat and survival skills, and sociolinguistics

and human behavior can be observed. But the research

laboratory is far removed from the sterile confines of

the halls of academia. The laboratory is located within

the basin of the Amazon River, nestled into the Guiana

Highlands, and within remote areas where explorers of

past eras have given of their blood and personal trea-

sure. To explore Brazil is akin to Helen Keller touch-ing the face of Anne Sullivan for the first time. De-

light and a sense of wonderment await the visitor.

The very presence of these remote, indigenous

groups function as a living testament. The romanti-

cized myth of lone survival makes for pleasant reading

and the script of an occasional film. But the manner in

which indigenous cultural moorings demonstrate the

survival of the human spirit is the ancient tale of man.

This survival and maintenance of micro-societies

which remain unchanged throughout their centuries of

existence must be secured. Brazils necklace is a beau-

tiful one. Policies which assure non-interference by

outside interests are the clasp on the necklace. It must

not be allowed to break.

In past decades, initiatives to diminish the ex-

trinsic impact of broader-based culture on indigenous

tribal cultures have been provisioned within the con-

stitution. Common streams of missionary endeavors

and outreaches seeking to extend humanitarian kind-

ness have been balanced through the restraint provided

by Brazils constitution. While social anthropologists

and ethnographers may rant a bit against missionary

proselytization and forward stationing into the tribal

regions, their own voices are hollow reeds of self-in-

crimination. Observation can change the behavior of

the one who is being observed. And cultural immer-

sion research which involves prolonged patterns of in-

dwelling between the researcher and his laboratory

can create subtle cultural changes. These changes may

adversely impact the survivability of Brazils micro-

societies.

One hard truth which can be difficult to digest is

that of generational continuity. Simply put, the surviv-

al of micro-societies is dependent on t he affirmation of

the indigenous culture by the children moving into an

age of procreative capability. If they are excessively

impacted by outside forces, if the allure of modernism

reaches their doorstep, the tribe can be one generation

away from biologic annihilation.

There are those who will continue to split hairs

regarding the interface of missionary zeal or secular

humanitarian efforts within the tribal belts of Brazil.

But a much greater danger is shaping up to rob the

BeautifulNecklaceBrazils


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FUELS

BRAZILSGROWTH

15 SEP 201313 14

In the late 1990s, Brazil endured a

rigorous blackout, which left almost

90 million people in the dark for

some hours. It was the first precur-

sor of the chink in Brazilian energy

systems armor, caused by a combi-

nation of drought, bad planning and

years of lack of serious investment in the en-

ergy structure of the country. With a series of

massive investments and a wide-spread public

awareness campaign, Brazil was able to over-

come those dark moments and now, a decade

later, enjoys a very comfortable energy situa-

tion. Pakistan could certainly take benefit from

some of the Brazilian examples to overcome its

energy crisis. Brazil has done it, Pakistan canalso do it.

Brazil, as Pakistan, has many different

kinds of water formations, which can easily be

transformed into an efficient source of energy.

The Brazilian energy matrix relies mainly on this

kind of energy, hydropower, which accounts for

almost 70% of the production of electric energy

in the country. In the beginning of 2013, the

installed capacity of electric power generation

in Brazil was of 121,000 MW, of which 84,000

MW came from hydropower plants. Overall,

almost 90% of the electric energy produced in

Brazil is renewable, against only 20% of the

worlds average. Hydropower in Brazil comes

not only from massive projects, like the Itaipu

dam (which produces more than 14.000 MW),

but also from very smalls hydropower plants,

which are able to produce the amount of needed

energy for small communities with a low social

and environmental impact.

For the generation of electric energy, Bra-

zil is also investing heavily in other renewable

sources, such as wind power. Although it still

does not count for much of the energy matrix,the numbers are quite impressive, as wind power

production grew 24.2% from 2010 to 2011. Bra-

zil hosts the ideal conditions for the production

of wind power and many new wind farms are

being built. Investment in this area is proving

to be extremely attractive, especially because

it also counts with the support from the Bank

of Brazil and the National Bank for Social and

Economic Development.

The support of the Federal Government

and the emphasis on large scale investments to

overcome the energy crisis played an essential

role in Brazil. It was only through public incen-

tives that the private sector and international

investors were able to see Brazil as a lucrative

alternative. Also, Brazil has established a re-

search and regulatory structure which enabled

the country to focus on specific policies. In this

sense, not only the general production of energy

increased in the last few years, but also the pro-

ductivity, meaning that energy production in

Brazil is becoming more efficient.

Brazil also has one of the worlds most

successful experiences in the field of biofuels.The country is the largest exporter of ethanol,

a biofuel produced indigenously since 1974

from sugarcane, in a sustainable and efficient

way. Due to some strict policies and to the agro-

ecological zoning determined by the Brazilian

government, sugarcane can only be produced

in specific regions, far from the Amazon, in

order not to invade any forest or reserved area.

The region of So Paulo and its surroundings is

where the majority of t he sugarcane plantations

are actually located, not occupying more than

1.4% of the countrys agricultural area. The en-

ergy and environmental balance of sugarcane

fuel makes it one of the worlds most efficient

and sustainable sources of energy.

The Brazilian production of ethanol to-

taled 27.6 billion liters in 2010 - an increase of

7% over the previous year. According to esti-

mates by the Ministry of Mines and Energy, it

could reach 64 billion liters in 2019. It is im-

portant to stress that the i ncrease on the amount

of ethanol produced was due much more to the

increase in productivity than to the expansion

of cultivated areas, which proves that it can be

sustainable.

Besides the export potential, there is great

demand for biofuels in the domestic market.

Brazil is a pioneer in the development of the flexfuel technology, which was launched in 2003

and allows cars to run on both gasoline and eth-

anol in any proportion. Currently, multinational

car assembly corporations produce nearly 100

different models of flex-fuel cars in Brazil, thus

ensuring the country the largest fleet of flex-fuel

cars in the world. Between 2003 and 2010, 12.5

million flex-fuel vehicles were sold, with an es-

timated participation of 39% in the total light

vehicle fleet.

Ethanol is a green-fuel from scratch, as

it generates 90% less emission of greenhouse

gases as compared to gasoline. With the devel-

opment of new technologies, ethanol from sug-

arcane is expected to record negative emissions.

The benefits start at the very root of the cycle:

ethanol from sugarcane generates approximate-

ly nine times more renewable energy than the

fossil energy used in its production, while etha-

nol produced from corn yields only 1.4 units of

renewable energy for every fossil energy unit

used in its production process.

Brazil is also the third largest consumer

of biodiesel in the world. The 2004 National

Program for Biodiesel Production and Usage(PNPB) mandates the gradual mixture of alter-

native fuel with diesel. A special program for

the sustainable production of palm oil was also

launched in May 2010. The palm oil program

includes an agro-ecological zoning initiative and

offers an interesting alternative for deforested

areas in the Amazon region. Additionally, this

initiative has a very important social aspect, as

the crops for the production of biodiesel can be

cultivated in small properties. Thus, the produc-

tion of this kind of fuel is not only environmen-

tally friendly, but also economically viable and

socially relevant. Through these governmental

programs, biodiesel production is actually being

used as a tool to foster social development.

Brazils success story may be a good ex-

ample for Pakistan, a country that, like many

others, struggles with energy problems that af-

fect peoples lives and the economy as a whole.

Following some of Brazils strategies like

focusing on a varied energy mix; investing in

hydropower; investing in new and sophisticated

technologies and fostering the use and develop-

ment of new energy sources, such as biofuels,

will be a good slant for Pakistan to begin unrav-eling its energy conundrum in order to start a

brighter period of its history.

Helena Lobato da Jornada is the Head of

the Commercial, Press and Energy Section in

the Embassy of Brazil, Islamabad

ELECTRICITY

Brazil is a pioneer in the development of the flex fueltechnology, which was launched in 2003 and allowscars to run on both gasoline and ethanol in any pro-

portion. Currently, multinational car assembly cor-porations produce nearly 100 different models offlex-fuel cars in Brazil, thus ensuring the country thelargest fleet of flex-fuel cars in the world.

ABUNDANTCLEAN

Helena Lobato da Jornada


9/21

News in Brief Gas price hiked for captivepower plantsT

he government has increased gas price for captive power plants

by Rs85/mmbtu, however it has decided to maintain the price at

current level for domestic, commercial, industrial and Compressed

Natural Gas (CNG) consumers.

The decision was taken during a meeting chaired by Petroleum Min-

ister Shahid Khaqqn Abbasi here in the premises of petroleum ministry on

Friday, sources said. Ogra has issued a notification to this effect.

Top officials of the ministry, Sui Northern Gas Pipelines Limited

(SNGPL), Sui Southern Gas Company Limited (SSGCL), Oil and Gas

Regulatory Authority (Ogra) attended this meeting.

The sources said the meeting approved the price hike for the cap-

tive power plants (CPPs), which are owned by the affluent millers and

industrialists of the country. With this approved Rs85/mmbtu increase the

price of gas for CPPs has surged to Rs573/mmbtu from its earlier price of

Rs488/mmbtu.

A source disclosed that a decision to maintain the gas price for rest

of the users was taken only because some six months ago the IslamabadHigh Court (IHC) had suspended the Gas Infrastructure Development

Cess (GIDC). Had the incumbent regime stick to its price rationalisation

plan, the gas price for all users would have witnessed a big surge as the

plan envisaged bringing it at par with the price of furnace oil/alternate

fuels.

However, the petroleum ministry last week challenged the suspen-

sion of GIDC by the IHC in the Supreme Court and the government is

most likely to increase the gas prices as soon as it gets a favourable deci-

sion.

PFF calls for reviewing Bhasha

Dam construction plan

Karachi

The Pakistan Fisherfolk Forum (PFF) has expressed concerns over

the Pakistan Muslim League (PML-N)-led governments plans to

reinitiate controversial schemes such as the Diamer-Bhasha Dam,

a project that was previously shelved after widespread protests across

Sindh.

PFF Chairman Mohammad Ali Shah, on Friday, called for the gov-

ernment to not only reanalyse the ecological impacts of the dam, but also

its negative effects for communities inhabiting the area. He said that thegovernment, which is looking towards two of the worlds largest multi-

lateral lenders for the $12 billion Diamer Bhasha Dam project, is i nadver-

tently putting its main economic sources at risk.

At a time when reports of mass suicides by farmers, over being

deprived of their water share for cultivation, are circulating, politicians are

working to secure funds from world lenders, said Shah.

The consent of the communities settled in the area, for whom the

water is a basic source of livelihood, is essential, even for projects of such

magnitude. There is no justification for this project to be re-launched,

he stated.

Shah reiterated the PFFs dedication to honourably represent not

only the three million small-scale fish workers of the country, but also

farmers and herdsmen. These poor workers are the real victims of mega

water projects, which destroy fertile land, wetlands and forests, conse-

quently forcing mass migrations, he said.

Finance Minister Ishaq Dar, reportedly, recently told the media that

significant progress has been made in the bid to arrange funds for the

project. The PFF had launched a campaign against mega water projects,

entitled Keep Rivers Free Movement, in March 2010, which included

a 14-day Long March from Kharochan, in the Indus Delta, to Jamshoro,

located on the bank of the River Indus.

LCCI to hold moot on Halal food

export on Sept 9

Lahore Chamber of Commerce and Industry (LCCI) is organising a

conference on Halal Food Export on September 09, 2013 to dis-

cuss the potential of exports of Halal food products from Pakistan,

issues hampering its growth and devising a way forward to guide the local

industrialists in this regard.

This was stated by the LCCI Standing Committee on Halal Food

Naseeb Ahmad Saifi here on Friday.

He said that his company is sponsoring this conference to highlight

problems faced by the Halal meat and food industry and reaching to a

solution to these issues which can lift the present exports to US5-6 billiondollars.

He said that the government should make its economic officers more

active in missions abroad for ensuring access of Pakistani Halal meat and

other food products in the international market which could help increas-

ing the Halal exports of the country by three times.

He said Pakistani meat is liked world over due to its quality and

taste but government patronage is needed to enhance its exports.

Naseeb Ahmad Saifi said that increasing price of electricity and gas

had increased the input cost of the exporters manifold due to which they

are facing it difficult to compete with India and African countries in the

international market. He said that the government should take immediate

measures to stop smuggling of live animals to Iran and Afghanistan as it

is not only causing huge loss to the Halal meat industry but also to the

national exchequer.

Pakistan, Thailand vow to

double trade; enhance economic

partnership

P

akistan and Thailand Tuesday expressed the resolve to build a

strong economic partnership, double their trade figures to US two

billion dollars in next five years and eventually enter into a Free

Trade Agreement.Prime Minister Muhammad Nawaz Sharif and Thai Prime Minister

Yingluck Shinawatra Pakistan addressing a joint press stake out after a

round of bilateral talks also expressed their commitment to collaborate in

the field of trade, culture, infrastructure development, science and tech-

nology, defence, education and tourism.

Prime Minister Sharif said the two sides held a "comprehensive dis-

cussion" on wide range of issues and noted the convergence of views on

important bilateral and international issues.

The two sides also discussed regional and international issues of

mutual interest.

Prime Minister Shinawatra extended her country's support to Pak-

istan in becoming a Full Dialogue Partner with the ASEAN, as Prime

Minister Sharif appreciated Thailand's "consistent support" for Pakistan's

enhanced partnership with the regional forum.

17 SEP 201313 16

Sindh govt performance

outshined

During the fiscal year 2012/13, the Sindh government performance

outshined all provinces. Sindh has presented a surplus budget of

Rs 41.42. The accumulated revenues of the Sindh government

were Rs 445.67 billion against the overall expenditures of Rs 404.25 bil-

lion.

According to the finalized figure for the fiscal year 2012/13 released

by the finance division, the province of Punjab has come up with a surplus

of Rs10 billion, Baluchistan with Rs 14 billion and the surplus of KPK

was only Rs 4 billion, whereas Sindh has presented the largest surplus of

Rs 41 billion.

The provinces share in federal revenues was Rs 320.73 billion

and the province generated Rs 68.14 billion from provincial taxes and Rs24.67 billion from the nontax revenues. The current expenditures of the

government were Rs 301.92 billlion whereas the Sindh government spent

Rs 102.32 billion of development work.

While talking to Economic Affairs, information minister for Sindh

Sharjeel Memon said I see a vital potential in the province for extending

the tax revenue but deteriorating law and order is the biggest challenge to

deal with.

World Bank ready to provide support

to Pakistan, says new VP

Philippe Le Hourou, new vice president of World Bank Groups

South Asia region, said the lending agency will provide policy and

performance-based support to Pakistan.

The World Bank Group stands ready to assist the government in

reform implementation through policy and performance-based support,

said Le Hourou. The complex challenges facing the country call for not

only implementation of multi-sectoral fundamental reforms and invest-

ments but also their careful sequencing, he added.

In the difficult current economic situation of the country, Le

Hourou agreed with the governments economic plan. He assured the

government of the World Banks support for stabilizing the macro econ-

omy, deepening the needed structural reforms and implementing needed

sectoral investments.

He also discussed the governments development priorities and t he

programming of $1.5 billion International Development Assistance (IDA)

support to Pakistan for the next 10 months, in the areas of policy reforms

and investments, particularly in energy, revenue mobilization, governance

and social sectors.

APTMA initiative to double

exports

All-Pakistan Textile Mills Association (APTMA) would launch a

new initiative from Jan 1, 2014 to improve the image of Pakistani

textiles around the world to double the industrys exports to $26

billion over the next three to four years in the wake of f ree market access

from the European Union.

The initiative Triple Bottom Line (TBL) is meant to make

and project the entire textile supply chain environment-friendly and so-

cially responsible industry towards the people. APTMA has already hired

a Dubai-based Pakistani businessman and lobbyist, Raza Jaffar, for imple-

menting the TBL (Planet, People and Profit) initiative and improving the

image of the industry.

It also plans to organise textile shows in the US and European coun-

tries to create contacts with major buyers in those markets.

APTMA chairman Ahsan Bashir said a comprehensive strategy was

being evolved to take full advantage of the free market access under the

EUs GSP+ system.

He said the new government had largely solved the energy problem

of the textile industry in Punjab, at least for the time being, which has

helped capacity utilization to 90pc.

Now growth in textile trade is our next target. We are aiming for

$30bn exports.

Bangladesh, which purchases cotton, yarn and fabric from Pakistan

and elsewhere for its industry, has increased its textile exports from $5bn

to almost $27bn in last eight years after obtaining free market access from

the EU and is aiming for $40bn in next few years.

APTMA leader Gohar Ejaz said the decrease in Chinas share in

the world textile trade to $270bn from $300bn in last one year and the

EUs GSP+ trade incentives for Pakistan had opened a big window of op-

portunity for Pakistan to not only push it s textile exports to the world but

also produce a trade surplus to help the government overcome its current

account woes in the next 3-4 years.

KESC accused of violating deals

As the management of the Karachi Electric Supply Company

(KESC), as well as its former and present buyers stayed away,

a Senate panel noted on Friday serious violations of different

agreements by the utilitys management and criticized government repre-

sentatives on its board of directors for staying silent.

The sub-committee of the Senate Standing Committee on Water and

Power, led by Senator Shahi Syed, sought legal opinion of the law minis-

ter on a couple of key questions within a week so that the committee could

submit its final report to Senate for action before Sept 2.

The ministry of law was asked to explain from the legal standpoint

if the amended agreement signed with the KESC in 2009 to change the

original 2005 agreement was valid given the fact that the original buyer,Al-Jomahia Group, was defaulting on its contractual obligations and if the

government could have taken over the utility as provided in the original

sale agreement.

The law ministrys view was also sought on whether re-bidding was

not necessary for the KESC when a defaulting original buyer transferred

a company having government shares to another private entity and also to

explain if the water and power ministry was authorised to provide incen-

tive package to the new buyer Abraaj Capital, a private entity -- after the

original buyer failed to meet contractual obligations.

The law ministry was also asked to give its opinion if rules of busi-

ness 1973 allowed implementation of decisions of the ECC without prop-

er endorsement by the cabinet or the prime minister and if the ECC was

authorised legally to take such decisions to provide incentive package to

a privatised entity by bypassing the cabinet committee on privatisation or

Council of Common Interests.

And if the ECC decisions were not ratified by the federal cabinet

then what was the legal status of the agreements signed with the KESC

management.


10/21

The Avenger phenomena hit

Pakistan sometime in late

July 2013. The choice of the

name had an instant effect -

loud cheers, inaudible gasps,

startled looks and a few boos

were reported, things were

said. A musician, composer and most recently

Campaign Ambassador for Save the Children's

Everyone Campaign, who reigned in the 1990s

as the front man for Awaz, and nowadays goesby the name of Aaron Haroon (redundancy

alert!) is responsible for these seismic changes

in the national topography.

Back then the band made history when

Janeman became the first Pakistani song to air

on MTV; now another precedent has been set

as Pakistans first animated, female super hero

takes the stage. It is different because the secret

identity goes undercover in a burka. It is contro-

versial for the same reason.

A school teacher by day, Jiya dons the in-

visibility cloak before setting out to conquer the

world. A burka has been used here as a symbol

of empowerment - more on that later. A Young

Jiya aka the Burka Avenger who happens to be

faster than a speeding Tez-gam, leaps over short

buildings or telephone poles, defies gravity and

could well be Pakistans newest ally on the

frontline of terror.

That she is a firm believer in the pen is

mightier than the sword adage gives her an ad-

vantage. Stationary makes for handy weapons

in B.A universe and her costume allows her to

wander the countryside undetected, like most

women in that region and maybe a few Most

Wanteds from across its borders. In reality,

this would not be functional as a uniform and

is likely to put an end to those flying squirrel

moves. Fantasy has rushed to the aid and an

invincibility clause has been quietly added to

the conservative mix. Regardless of the snazzy

makeover, using the b - word as a centerpiece

has drawn focus away from the shows noble

cause and bold agenda.

The 22 minute segment uses a slick mix of

humor, music and martial arts to sound the alarm

and alter perceptions. The upbeat tone is padded

by an endearing line up of characters including

heroic young uns and baddies with imaginative

names like Baba Bandook (a mean magician),

Vadero Pajero (a mean feudal). Haroon, alongwith other well known singers will make an ap-

pearance during the course of the show. As far

as super heroes go, this is pretty standard fare

but for the ladys choice of attire and real life

implications of her work.

There are plenty of monsters to choose

from and territory to reclaim and the storylines

are set against a somber backdrop. A few basic

strokes have been used to render the life of an

orphaned little girl raised by an adopted father

figure/ resident Obi One Kenobi who trains her

in the art of Takht Kabaddi, used to restore bal-

ance in a topsy-turvy world. Go Avenger. That

she reaches for the most logical item to conceal

her identity is understandable in many ways.

Where super heroes stand out in their mitts,

hoodies, capes and /or bunny/ bat/ cat ears, Jiya

can melt into the crowd, and would be impos-

sible to trace - a covert operators dream. Being

outsmarted by someone in medieval gear is an

added insult.

It enters a contentious zone when tools

of oppression are shown to be interchangeable

with power. Some might argue that fighting

extremism in the one thing used to subjugate

women would be considered poetic justice.Others would continue to glare at the offending

burka and be reminded of tales where women

1813 19 SEP 2013

PERSPECTIVE

Afrah Jamal

in parts of Pakistan have been enslaved by in-

vading bands of good/ bad/ evil Taliban running

amok.

Ordinarily, this would be a stroke of ge-

nius that helps its character maintain a low pro-

file but in a bid to steer away from one ste-

reotype the super hero in the ill-fitting body

armour the creators have inadvertently opted

for another - that of the invisible woman asso-

ciated with this part of the world. Interestingly

enough, there will be no burkas in Jiya - the

school marms closet. She is a free spirit with

moxie aplenty, not inclined to cover her head or

conform to that standard issue i mage on conser-

vative brochures which is a refreshing sight

in this era of creeping radicalization and holier-

than-thou mugs plastered across the media.

The super hero community typically does

not rummage through attics or go shopping for

that perfect off-the-rack number and while they

may trade looks for comfort, their iconic suitsstay in view through-out the journey. There is

Batman, in the reboot seen ordering those cus-

tomized Made in China masks that would not

survive a POW to the head; or the Man of

Steel known for re-using his baby blankie for

its invincibility but not his design sense. The

creative should have considered the fall-out

when rolling out the recycled collection.

Perhaps Jiya had a similar epiphany when

she was raking her brains for a suitable dress to

wear at the coming out party for her alter-ego

and saw a chance to remake the cumbersome

burka into a fetching guise. Her creators would

have been within their rights to let her put her

own spin on the name and saved themselves a

lot of grief and time spent in explanations. The

girl behind the mask, who casually bonks her

foes with books, uses pens to impale and cut

through the haze of mixed messages, propagan-

da and murky morality.

But Jiya, the courageous educator who

refuses to conform and holds on to her ideals

deserves to be lauded and is someone to look

up to. The lady in black as she has been re-

ferred to in the theme song is on a worthy mis-

sion. Instead of her formidable abilities, and an

unambiguous stance on crucial issues which is

more than most politicians can say, the spotlight

continues to remain on her fashion choices. In

hindsight it might have been wiser not making

the crusaders cape the lynchpin - a protagonist

forced to navigate a hostile terrain while trying

to talk her country-men down from the ledge,

makes for a far better headline.

The show offers fun-sized doses of kid

friendly entertainment wrapped in layers of

comedy topped with a public service message,

and will tackle other issues along the way. Tali-

ban are never named directly and are not the

only threat out there; a dangerous void that al-

lowed extremism to take root needs to be coun-

tered and thus far the media has been unable to

stir up support for an environmental cleanup.

When the burial of a martyred Ah-

medi soldier who receives full

military honor becomes news as

if his religious beliefs are in any

way relevant to his sacrifice, it is

time to rally around. But the call

to arms often gets lost in the din

and stories about the persecution

of Christians, the murder of lib-

eral crusaders, or ethnic cleansing

resurface with depressing regular-

ity.

Sending the invisible

woman behind enemy lines marks the begin-

ning of the resistance. Since she is an educa-

tionist, female literacy remains at the forefront.

The Burka Avenger was reportedly conceived

before Malala (Pakistans real life superhero)

became the spokeswoman for literacy and girls

rights and a universal symbol of resistance. Our

heroine is up against the same horrors with big-

otry at its peak and justice in short supply but

unlike real life, here she can get away unscathed

and live to fight another day.

The show is broadcast in Urdu, available

in English and there is a global audience breath-

lessly awaiting the Avengers debut. According

to one report, Haroon is in talks with European

broadcasters to have the series translated into 18

languages and broadcast in 60 countries. 13 ep-

isodes are set to air on Geo Tez every Sunday

though it is unclear if these airwaves can reach

remote regions that need it most. It may be time

to place an order for a stronger sounding board

to avoid setting off multi-cultural minefields in

the future.

The writer is a freelance journalist who blogs

at http://afrahjamal.blogspot.com. She can be reached

at [email protected] and on twitter @Afrahjh

That she is a firm believer in the pen ismightier than the sword adage gives

her an advantage. Stationary makes forhandy weapons in B.A universe and hercostume allows her to wander the coun-tryside undetected, like most women inthat region and maybe a few Most Want-

eds from across its borders

A Veiled Threat


11/21

Dating back to the pre-

Islamic era, Pashtunwali

is the code of conduct

every proud pathan fol-

lows, may he live in Af-

ghanistan, Pakistan, or

as a refugee anywhere

in the world. The native Pashtun is fiercely

independent and loyal. In the backdrop of the

importance of FATA, owing to its geographical

location to Afghanistan, it is important to under-

stand the code of the pathans. Pashtuns believe

that their social code produces men who are

superior to those produced under the Western

model, and they have no desire to have a new

social system imposed on them by outsiders.

(Thomas H. Johnson and M. Chris Mason, No

Sign Until the Burst of Fire, 61.)

Melmastia (hospitality) is a key com-

ponent of Pashtunwali. Melma means a guest.

However, hospitality is not to be interpreted

in the manner a westerner would interpret it. It

means offering hospitality to a guest transcend-

ing race, religion and economic status. It also

means once under the roof of his host, the guestshould neither be harmed nor surrendered to an

enemy. This will be regardless of the relation-

ship between the guest and the host enjoyed

previously. In this regard Melmasthia takes

precedence over Badal (yet another principle

of Pashtunwali), so even the enemy who comes

seeking refuge must be granted it and defended

against his pursuers. Elphinstone in 1815 ob-

served: The most remarkable characteristic of

the Afghans is their hospitality. The practice of

this virtue is so much a point of national honor,

that their reproach to an inhospitable man is that

he has no Pushtunwali (Elphinston 1969: 226).

Simply put, Badal means to seek jus-

tice or take revenge against the wrongdoer.

There is no time limit to when the injustice

can be avenged. If Badal is not exercised, the

offended man or his family will be considered

stripped off honor. The exercise of this princi-

ple can lead to generations of bloodshed, feuds,

hundreds of lives lost for one insult. It requires

a violent reaction to the insult, death or injury

inflicted. A Badal usually ends with a Badal. An

action elicits or demands an equivalent response

and the cycle goes on. Khushal Khan Khattak,

the great Pashto poet, warrior and soldier was

not far off the mark when he said, Let the head

be gone, wealth be gone but the honor must notgo, because the whole dignity of a man is due to

this honor.

Nanawatai (sanctuary) is another pil-

lar of the Pashtunwali code. It allows a person

to seek refuge in the house of another, seeking

asylum against his enemies. The host Pashtun is

honor bound to offer that protection, may it be

at the cost of his own family or fortune. Tradi-

tionally, the protection is extended only till such

time as the refuge seeker is on the property of

the person whose refuge he seeks. The protec-

tion will be considered withdrawn once he is

off the hosts property. William Mastrosimone,

witnessing a team of mujahideen capturing and

executing a Soviet tank crew in 1986, wrote a

stage play Nanawatai, about a tank driver cap-

tured in the Soviet invasion of Afghanistan and

his resulting plea for sanctuary from those who

2013 21 SEP 2013

Khushal Khan

Khattak, the

great Pashto

poet, warrior and

soldier was not

far off the mark

when he said,

Let the head

be gone, wealth

be gone but the

honor must notgo, because the

whole dignity of a

man is due to this

honor.

find him. The story was later adapted into the

1988 film The Beast of War.

A Pashtun at all times is expected to

defend his land, family, women and property

against invaders. Honor of his name must be

defended. Lives are laid down to defend the

honor associated. This is Tureh (bravery) that

is another component of the Pastunwali. Other

tenets include Sabat (loyalty); towards ones

friends and family and members of the tribe.

Imandari (righteousness); striving

for goodness both in word and in

deed. Respect towards all. Ghayrat

(courage/honor); at all times a Pa-

shtun must display courage. If hehas no ghairat or honor, he fails

to make the grade as a Pathan. Na-

mus (sexual honor of women);for a

man and his family, namus means

sexual integrity and chastity of

women in the family. The Pash-

tun must defend the namus of the

women of his household. This

extends to the namus of his external family as

well. Nang (Honour); a Pashtun must protect the

honor of those around him.

By no means is the list exhausted. How-

ever, it gives a good insight to the values that

govern the Proud Pathan. Pashtunwali is not a

legal code as we see. It is more a code of honor

by which a Pathan will live by- and die for!

The Jirga is obeyed without question by

the Pashtuns. A Jirga is an assembly of tribal

elders who take decisions on issues based on

consensus. Disputes between two or more

people are heard by this council of elders. In

tribal regions the Jirga is still used as a court

for criminal offences.The respect awarded to

tribal elders is phenomenal. When Mullah Nazir

Ahmed moved away from the loose construc-

tion of Taliban Movement in 2007, one reason

was because of the Uzbeks in the region. They

undermined the tradition of showing respect to

the tribal elder - an unforgivable sin to the Pa-

shtun. With the spread of Talibanization, layers

of authority were scraped off the Jirga in many

instances. In Khyber Agency example of Mufti

Shakir from Lashkar-e-Islam, setting up its own

sharia court to dispense vigilante justice being

one.

The Pashtuns have relied on a code as

old as time itself to conduct themselves as in-

dividuals and a society in their dealings. Even

stateless societies need certain laws to conduct

affairs of the state. To this date, Frontier Crimes

Regulation- a body of law based on six chap-

ters, sixty-four sections three schedules governs

FATA, a British-era colonial act that empow-

ers a political agent to take all actions on behalf

of the Pakistan government and decisions once

taken cannot be appealed against or questioned

under any law.

Pashtunwali has struggled and suc-

ceeded in establishing a uniform code of

conduct in a society where justice is not

easy and in reach of most people. Statelaws have minimal reach and the Frontier

Crimes Regulation is a unique set of laws

governing the rest of Pakistan. Conversely,

norms of honor may create situations where

eruption of conflicts may be more frequent.

It also makes outsiders completely at sea

when dealing with the Pashtun. Understand-

ing Pashtunwali does not offer the map to

control Pashtun tribes. It is no such magic po-

tion. It does however help to understand the Pa-

shtun culture. Once understood, the framework

can help in formulating a strategy for engaging

with the tribals.

The writer is a lawyer, academic and

political analyst. She has authored a book, A

Comparative Analysis of Media and Media

Laws in Pakistan.

Understanding

A Pashtun at all times is expected to

defend his land, family, women andproperty against invaders. Honor of his

name must be defended. Lives are laid

down to defend the honor associated.

This is Tureh (bravery) that is another

component of the Pastunwali.

OPINION


12/21

23 SEP 2013

BUDGET 2013-14DISASTER

Saleema Bibi died at the age of just

29 when the roof of her house

in Talwandi village in northeast

Pakistans Sialkot district col-

lapsed under heavy monsoon

rains. Her husband and three chil-

dren were badly injured.

The roof of our house, where we all

were sitting on a cot-bed, caved in after failing

to withstand torrential rain that lasted for five

hours, sobbed Bibis husband, Muzzamil Raza,

describing the tragedy that hit his family on

Aug. 14.

As the monsoon brings seasonal down-

pours and floods across Pakistan, Sialkot - 192

km (122 miles) from Islamabad is the worst-

hit district in Punjab province, in terms of fatali-

ties and property damage.

An estimated 200 villages in Sialkot are

waist-deep in floodwater, which has damaged

homes and public infrastructure, as well as rice,

cotton and vegetable crops on thousands ofacres, according to local disaster officials.

Emerging from Himachal Pradesh state in

northern India, the Chenab River enters Paki-

stan after passing through Indian-administered

Kashmir. It flows through Punjab provinces

northeastern districts and joins the Indus River

in Multan district in southeast Punjab.

According to Asjad Imtiaz Ali, chair-

man of the Federal Flood Commis-

sion, Chenab has experi-

enced its first flood

in 30 years,

following

ex-

ceptional rains in its catchment area.

The river broke its banks at different

places as the water level rose, particularly after

India released (on Aug. 14) surplus floodwater

into the river in its territory, t o the sheer surprise

of the Pakistani authorities concerned and with-

out prior intimation as required under the Indus

Waters Treaty agreement, said Imtiaz Ali.

Pakistan has suffered economic damagesof more than $16 billion as a result of consecu-

tive monsoon floods each year since

2010. Some 4,000 people were

killed, thousands injured

and millions dis-

placed

from their homes, according to the Economic

Survey of Pakistan 2011-12.

This year, again, the swelling floods in the

Indus River and its tributaries in Pakistan the

Chenab, Jhelum, Ravi, Beas and Sutlej are

leaving behind a trail of devastation.

As of Aug. 21, 118 people had been killed,

812 injured and over 399,000 affected in differ-

ent parts of the country. An estimated 1,700

villages have been hit by flash floods, with

many of them vanishing completely, according

to the latest loss and damage report from the

National Disaster Management Authority

(NDMA).

Around 11,200 houses

have been damaged fully

or partially, and sum-

mer crops -

rice,

cotton,

sugarcane, maize,

peanut, millets, sun-

flower and vegetables on

over 325,000 acres of land have

been devastated by heavy rains and

flash floods.

Iftikhar Ahmed, chairman of the Pakistan

Agriculture Research Council, noted that prices

of vegetables used in daily cooking have jumped

300 percent, raising a serious threat of food in-

security if damaged road and rail networks arenot repaired urgently and financial support is

not provided for farmers to re-sow their crops.

All rivers, including the Indus, are now

flowing at full capacity, while t he countrys two

largest reservoirs, Mangla and Tarbela, in north-

ern Pakistan are close to their maximum volume

for the first time in many years.

People living near the reservoirs fear that

their homes will be washed away, as govern-

ment authorities have asked them to vacate the

areas, amid the latest forecast for another spell

of torrential rain during the last week of August

in southern Punjab, eastern Balochistan and

southern Sindh provinces.

The Punjab Disaster Management Au-

thority said Mangla Dam and Jehlum River

had already overflowed on Aug. 15, flooding at

least 500 houses in 12 residential areas of Kallar

Syedan, a town in Rawalpindi district, a few ki-

lometers east of Islamabad.

Nawaz Suleman, a resident of Dhoke

Mistrian, one of the flooded suburbs,

said the area looks like a collec-

tion of islands but local

officials have not re-

sponded to pleas

for families to

be relocated

to a

safer

place.

Flood

Commission

Chairman Imtiaz

Ali said the coming

bout of rainfall which is

due in the last week of Au-

gust and first week of September

is predicted to be most intense of the

ongoing monsoon so far. It is likely to be

catastrophic, as all the rivers are already in high

flood and the reservoirs are brimming.

Disaster management authorities have

to take all possible measures to relocate people

from vulnerable areas to safer locations and ar-

range for food items, medicines and water for

emergency needs to avoid further death tolls,

he told this scribe from Lahore, the capital city

of Punjab province.

The floodwaters are now rushing south-

wards into Sindh province.

Sharjeel Memon, a spokesperson for the

Sindh government, said that the provincial au-thorities have declared an emergency at three

main barrages - Guddu, Sukkur and Kotri

and have asked the Sindh Provincial Disaster

Management Authority (PDMA), the Sindh Ir-

rigation and Drainage Authority and the Sindh

Irrigation Department to remain on high alert

to cope with the emerging flood situation and

provide relief.

Patchy aid responses by the disaster man-

agement authorities have drawn criticism from

flood victims, humanitarian agencies and disas-

ter risk management experts alike.

NDMA officials say they have taken ade-

quate relief measures in flood-hit areas, but this

claim has been met with skepticism. The NDMA

said 60 relief camps have been set up, housing

2,800 people. It has distributed nearly 23,000

tents among flood-hit families and provided them

with

500

blankets.

But flood

relief expert Sattar Zangejo said

no substantial aid operations are being

undertaken by the PDMAs in Punjab, Sindh

and Balochistan, where he has been travellingto survey the situation for international humani-

tarian groups.

Zangejo worked with Oxfam and Plan

International on relief and rehabilitation opera-

tions during the last three monsoon floods.

In Punjab, more than 90 percent of people

have not received any assistance this time, and

have had to relocate independently, he said.

Despondency among the flood victims

fleeing affected areas in Punjab and Sindh prov-

inces was visible on their faces, he said. There

is a clear absence of arrangements by the PD-

MAs for food items, medicines, clean drinking

water and safe sanitation.

There may be a bureaucratic reason for

the delay in launching relief operations.

On Aug. 17, Ahsan Iqbal, Federal Minis-

ter for Planning and Development and Deputy

Chairman of the Planning Commission of Paki-

stan, told media in Islamabad that Rs. 16 billion

(about $154.8 million) is urgently required by

the NDMA for emergency flood operations.

The federal finance ministry has been

requested to make the required funds available

and we hope it will release the funds soon toexpedite relief and rehabilitation operations in

flood-hit areas, Iqbal said.

Saleem Shaikh

Post-flood relief operationhits snags amid aid dearth

Trail of destruction escalates as deluge moves southward

Around 11,200 houses have

been damaged fully or partially,

and summer crops - rice, cotton,

sugarcane, maize, peanut, millets,

sunflower and vegetables on over

325,000 acres of land have been

devastated by heavy rains and

flash floods.13 22

Saleem Shaikh is climate change and

development journalist


13/21

Russia's granting of temporary asy-

lum to ex-NSA employee Edward

Snowden has held significant mean-

ing to US-Russian relations. How-

ever, the time that it had taken Rus-

sian President Vladimir Putin to do

so (with Snowden waiting in the transit zone of Mos-

cow airport for a whole 38 days for a response to his

request for asylum) raise considerable questions as to

where these US-Russian relations are headed.

The sudden chill in US-Russian relations may

hold obvious consequences for Snowden obtaining

permanent asylum in Russia. The reason for Putin's de-

lay in granting Snowden this temporary asylum at all

was, as he put it, to not offend the United States. How-

ever, there are evidences to the contrary. For instance,

last year, Russia banned adoptions of Russian children

by US families. This was a clear sign of how Putin pos-

sibly views the state of Russia's relationship with the

United States. This raises the question of whether there

were ever any intentions of having better relations with

Washington.

As a consequence, President Obama cancelled a

meeting with Putin before the G20 summit, the WhiteHouse stating that "there was not enough recent prog-

ress in our bilateral agenda." From the US perspective,

there may be several issues to consider in making such

a statement.

There is US frustration over Russia's reluctance

to confront Iran over its pursuit of nuclear weapons.

There is also Russian support of the al-Assad regime

and the consequent civil war in Syria, which has

evolved into a human rights catastrophe. The US ad-

ministration's impatience with the Russian standstill

on the reduction of nuclear weapons also adds to these

frustrations.

As it is can be seen clearly, the "bilateral agen-

da" referred to by the White House was quite heavy as

it was and with the addition of Russia's granting of a

temporary asylum to Snowden sends a very potent and

obvious diplomatic message to the United States and

has possibly escalated the tensions between the two

countries. The signal being sent to the United States is

that Russia has taken this opportunity to embarrass t he

United States and that possibly, there is nothing that the

US is willing to offer Russia which is considerably im-

portant enough to balance Snowden's asylum request.

The message was received by Washington loud

and clear. However, another very essential message

may have been ignored in the process: the very reasonswhy Edward Snowden is wanted as a criminal in the

United States. How much different is the United States

than Russia in the fact that it has been caught red-hand-

ed spying and collecting intelligence data on its own

citizens? Furthermore, to deem the one person who has

dared to divulge this information to the public, for the

good of the public, it seems to be a statement which

goes against the very core of what the United States

may consider itself to be so different from Russia; its

extremely high regard for free speech human rights.

Granted, Edward Snowden was a government

employee in secret service agencies bound by the rules

and regulations of conduct of such agencies. However,

he violated and exposed military secrets which jeop-

ardize the United States in any way. His actions were

based on informing the general public of illegal mea-

sures taken by their government, violating their privacy,

to keep intelligence tabs on them, that too knowing full

well the risks it entails wi th regards to his own life.

The tensions in US-Russian relations seen are

obviously based on vast differences in political ideolo-

gy in general. However, it would seem that the appear-

ance of Edward Snowden in the US-Russian diplomat-

ic scene has exposed a new twist in the situation. From

the perspective of the United States, how far can it goin preserving its position of viewing differences in its

bilateral agenda with Russia based on something which

it has firmly stood against Russia for and is doing itself;

standing against the principles of free speech?

Whatever the future holds, there may be one

very positive outcome on the horizon. There are many

voices claiming that Snowden can at least be credited

with forcing a debate and dialogue on what constitutes

legitimate boundaries of privacy and government sur-

veillance. The United States has been forced to take

stock of its diplomatic relations with Russia. This

may also be an opportune time for the US to reflect

on where its fool proof system of surveillance went

utterly wrong and what the parameters of privacy ac-

tually mean.The writer is an English and French professor

and columnist residing in the USA and France. She can

be reached at [email protected]

Here's my strategy on the Cold War: we win, they lose.

President Ronald Reagan

Snow

den

A Warm War?

Sabria Chowdhary Balland

andUS-R

ussianrelations

WORLD POLITICS

25 SEP 201313 24

A

U.S. investigation

into Microsoft Corp.'s

relationships with

business partners that

allegedly bribed for-

eign officials in return

for contracts includes

activity in Russia and Pakistan, a sign that

the probe is wider reaching than previouslyknown, according to people familiar with the

matter.

The Wall Street Journal reported this

year lawyers from the U.S. Justice Depart-

ment and the Securities and Exchange Com-

mission had been conducting a preliminary

investigation into kickback allegations made

by a former Microsoft representative in Chi-

na, as well as the company's relationships

with certain resellers and consultants in Ro-

mania and Italy.

In Russia, an anonymous tipster told

Microsoft that resellers of its software alleg-

edly funneled kickbacks to executives of a

state-owned company to win a deal, the peo-

ple familiar with the matter said. In Pakistan,

a tipster alleged that Microsoft authorized a

consulting firm to pay for a five-day trip to

Egypt for a government official and his wife

in order to win a tender, the people familiar

with the matter said. The two contacted Mi-

crosoft directly in the last eight months, the

people said.

The government hasn't accused Mi-

crosoft or any of its business associates ofwrongdoing. Such investigations can end

with no charges being filed.

The Justice Department and Securities

and Exchange Commission declined to com-

ment.

John Frank, Microsoft vice president

and deputy general counsel, said the com-

pany takes all allegations brought to its at-

tention seriously and cooperates fully in

any government inquiries. "We sometimes

receive allegations about potential miscon-

duct by employees or business partners and

we investigate them fully regardless of the

source," Mr. Frank said in a statement. "We

also invest heavily in proactive training,

monitoring and audits to ensure our business

operations around the world meet the highest

legal and ethical standards."

The probe is one of dozens being con-

ducted by U.S. officials under the Foreign

Corrupt Practices Act, a 1977 law that pro-

hibits U.S. traded companies from paying

bribes to foreign officials. The law also holds

companies liable for improper payments

made by others on their behalf.

Microsoft has opened an internal in-vestigation, according to people familiar with

the matter. Companies often spend millions

of dollars investigating themselves for po-

tential violations of the FCPA, then turn over

the results to the government in the hope of

getting lighter penalties or none at all.

One tipster emailed Microsoft in Janu-

ary alleging executives at Microsoft's Paki-

stan operations paid for a December 2009

trip for a Punjab Provincial government offi-

cial and his wife to wi n a three-year contract

to supply the government with its Microsoft

Office software, according to documents re-

viewed by The Wall Street Journal. The trip,

which was allegedly booked by a travel con-

sulting firm on behalf of Microsoft, included

business class airfare and a stay at a luxurious

hotel, the tipster alleged in the documents.

According to the tipster, Microsoft won the

partnership, worth roughly $9 million, three

months later. The Punjab Government didn't

respond to a request for comment.

Another tipster mailed allegations to

Microsoft concerning its Russian branch in

March, said a person familiar with the mat-ter. That tipster alleged that a Microsoft re-

seller paid kickbacks to executives at a state-

controlled telecommunications company for

a contract, according to documents reviewed

by the Journal.

Efforts to reach Russian officials were

unsuccessful.

A whistleblower program at the SEC,

established in the summer of 2010 with the

passage of Dodd-Frank, provides cash incen-

tives for employees to blow the whistle on

securities violations, including breaches of

the FCPA. If the SEC gets involved and finds

wrongdoing after a whistleblower complaint,

a tipster stands to gain as much as 30% of

any monetary sanction the agency recovers.

Courtesy: The Wall Street Journal

Justice Department

Reviewing Allegations

Involving Deals in Five

Countries

MicrosoftBribe

Probe

Reaches

into

Pakistan,

Russia

Deals

CHRISTOPHER M. MATTHEWS

and SHIRA OVIDE


14/21

27 SEP 2013

The Egyptian armys coup in

July to overthrow the coun-

trys first democratically

elected President, Muham-

mad Morsi, and the subse-

quent clashes in which hun-

dreds of his supporters have

been brutally killed by the Egyptian security

forces reflect the battle being fought for the soul

of Egypt. Arrayed on one side in this battle are

the forces defending the authoritarian rule of the

Egyptian army, which has already lasted more

than six decades, and its vested economic and

commercial interests. They are supported by

the westernized and the so-called liberal classes

of the Egyptian society who, while champion-

ing democracy and human rights, fail to see

anything wrong in the military coup against

a freely elected government and in the cold

blooded massacres of the Egyptian people com-

mitted by the Egyptian security forces.

The third layer of support for the mili-

tary coup lies in some of the regional countries,

whic

monthly economic affairs september, 2013.pdf

Documents