THIS is with reference to the latest paradigm change in the monetary policy aka ‘money-making policy’ of the top-tier political and financial sectors, and yet another reduction of the discount/interest rates that the State Bank announced. It is strange that the basis of this sharp decrease by the newly appointed governor Yaseen Anwar aims at ‘meeting the inflationary targets and decrease in inflation due to successful government moves’.

The facts told by Mr Anwar were altogether different from what was announced by former governor Shahid Kardar in the last quarterly monetary policy announced.

Is it really possible that the unleashed inflation will be controlled within three months? The answer is ‘yes’. It is only possible in Pakistan where nobody is going to challenge the figures put forward by illiterate or fake degree-holding ministers and imported bureaucrats.

Mr Anwar announced ‘inflation is under control’, which was nothing but a mockery with the people of this state. Truth is that the SBP governor on orders from the federal government changed the base year to calculate the rise/fall of inflation this year. The newly adopted base was the year 2008 (the year when inflation was on a boom).

Comparing today’s prices with higher prices/inflation of 2008 showed less increase in prices/inflation and this fact was manipulated by the incumbent who has a long, handsome experience of boosting the profit scenario learnt at the Bank of America.

The government has been able to hoodwink the people with these statistics and has made industrialists happy with cheaper financing (probably to get good financing from them for the upcoming election).

But did anybody see the quantum of bad portfolios of banks? About Rs600 billion (the money of poor depositors) has been defaulted by these industrialists during the last five years.

More cruelly, cheap lending (due to the sharp decline in the interest rate is likely to double the figure within the next five years. This is what we call an economic crime.

Peon Riyaz of the Pakistan Railways had immolated himself as a consequence of which people came out into the streets. Now it seems that the ‘decision makers’ have set us on fire but this time nobody even spoke a word leave alone coming out in the streets in protest.

This is a wakeup call for all Pakistanis regarding our default financial system, debt in billions of dollars and last but not least social injustice. It is time to put on our thinking caps.

HAADI AOLIYAH Karachi

Rate of growth THE number of Pakistanis living below the poverty line has increased from 27 per cent in 2006 to 33 per cent in 2011.

The causes of poverty, grappling the entire country, not only stops the economic growth of the country but also increases the anger and hatred of the public for the government, especially in a country where the public seems to be dying for a piece of bread while politicians seem to be living in the lap of luxury.

The growth rate of the economy has fallen to 3.5 per cent from 6.5 per cent within five years. The fiscal deficit is yawning at 7.5 per cent GDP today as compared to 4.5 per cent five years ago. The monetary value of the dollar has risen from Rs77 to Rs90 within five years.

Under such terrible conditions when the public is being crushed under the weight of poverty, when senior citizens are standing in queues for their pension and are waking up in hot water, inflation runs at 15 per cent and food inflation at 25 per cent. The tax ratio has gone up from 0.7 per cent in 2006 to 11.5 per cent within five years.

It is time for the government to learn a lesson from previous regimes which ended up with destructive results and to wake up, as ‘poverty is the father of revolution’.

ASMA AKHTAR Turbat

Three trains in private sector PRIVATE sector companies will now operate three passenger trains. The Pakistan Railways (PR) will provide tracks, coaches and locomotives which obviously will have to be offered in perfect condition.

How that will be possible is not understood in view of the unreliable and deplorable condition of assets, particularly locomotives, portrayed by the PR.

Therefore, it is intriguing that privatisation of trains gains precedence over everything else so badly needed to be addressed to redress PR’s actual problems which are yet to be ascertained.

PR officials have proved inefficient in maintenance of operational assets. The running of trains will be handed over to private parties at a profit.

Experience evokes apprehension that the contracts would be one-sided in favour of private operators and would prove to be too costly and counter-productive for PR.

First, the true cost of usage of PR assets will not be fully reflected in the contracts either by design or default. It will be undervalued for sure because no passenger train is financially viable at current costs and tariffs.

In addition, PR remains lacking in professional expertise where traffic costs are concerned. Besides, the contracts will be loaded with clauses dealing with penalties in the event of delays and defaults on obligations of the PR which will be plenty and the mainstay for operators’ profits. Too many disputes and conflicts will be disruptive and will make the whole exercise counter-productive.

All know that the ‘success’ story of the private sector is everything other than efficiency and integrity in this country manipulated by SROs, under/over invoicing, tax evasion and corruption of all sorts. The fate of the PR in the ultimate analysis will rest on who beats the other where corruption is concerned, the public or the private sector.

The experience of private-public partnership in leasing Pakistan Railways Golf Club property and in operating a passenger train on the Lahore-Faisalabad route failed to provide any relief to PR finances.

Unless PR problems are not properly addressed as soon as possible, there will be no viable change in its operations. Unfortunately, not a single step has so far been taken in the right direction.

KHALID RASHID Federal Secretary (Retd) Lahore