ISLAMABAD: In another political manoeuvre, President Asif Ali Zardari on Sunday again engaged Pakistan Muslim League-Nawaz (PML-N) chief Nawaz Sharif by responding to his letter written last month, in an attempt to mend fences with the PML-N at a time when the government’s coalition partners are up in arms.
The timing of the response suggests that Zardari’s move is more of a damage-control attempt after the Fazlur Rehman-led JUI-F’s departure from the coalition government. Extending a hand of friendship to the PML-N chief, President Zardari invited him to nominate his party’s representatives to “jointly” take difficult decisions required to take the country forward.
Nawaz had said on Saturday that if the president and the government responded positively to his recommendations, his party would also respond positively.
The president seized the opportunity and immediately replied to Nawaz’s letter. In his reply, President Zardari sought PML-N’s cooperation on the GST Bill 2010, reminding Nawaz that his party’s nominee, Ishaq Dar, and other senators of major political parties had unanimously recommended the GST law with some 15 amendments. “The Senate adopted those recommendations along with the bill, and referred it to the National Assembly. We also hoped for your support in the National Assembly for the passage of this important reform measure,” the letter said. However, the president conceded his government’s inability to incorporate PML-N’s amendments into the Ehtesab Bill. “In this backdrop, the chairperson of the (concerned) standing committee has decided to reconsider the bill and to deliberate upon outstanding issues arising out of the dissenting note of the PML-N members,” the president assured Nawaz.
However, he recalled the history of how the proposed bill passed through successive stages of the legislative process. Pointing out the need for restructuring public sector enterprises (PSEs) for pursuing the economic reforms’ agenda, the president sought Nawaz’s support. “We will be grateful if your party facilitates the government in its restructuring plans for these entities, and extends support our policy to promote public-private partnership to protect Pakistan’s national interests,” the president said.
“A Cabinet Committee on Restructuring of PSE’s has already been formed and a comprehensive plan for restructuring of the power sector companies has been launched with an aim of bringing the private sector under the management of the distribution companies,” he added. He said the restructuring of power sector companies would save in excess of Rs 250 billion in the financial year 2011-12.
“A restructuring plan of Pakistan Railways has also been approved and work initiated to convert Pakistan Railways over a period of three to four years into a profitable organisation. Business plans are under preparation for all other loss making PSEs like Pakistan Steel Mills, Pakistan International Airlines, Trading Corporation of Pakistan and Utility Stores Corporation, with a timeframe of four to six months for implementation,” the president said. Defending the policy of not giving indiscriminate subsidies, the president said a subsidy could only lead to fiscal indiscipline and would contribute to inflation indirectly by increasing fiscal deficit.
The president shared concerns expressed by Nawaz over the increase in petroleum and electricity prices, urging him to “appreciate that POL prices in Pakistan are linked directly to international market prices, and are free of government interference”.
Zardari also dwelt on the genesis of the current power crisis to draw home the point of the importance of continuing economic polices, saying, “The seeds of Pakistan’s current energy deficit were sown by the reversal of power policy in the aftermath of the end of Benazir Bhutto’s second term in office (in 1996)”. He said that as a result of this policy, 5,653MW were added to the national grid in a record span of three years by allowing a uniform rate of 6.5 cents per KW to IPPs for a locked period of 20 years, compared to 18 cents per KW today.
“The failure of successive governments after the dismissal of ours to attract investment in this sector has created a supply shortage that will take time to clear. Today, unfortunately, there is no magic wand that can be waved to restore investors’ confidence and remove the deficit of 15 years, overnight”. Though the president did not say explicitly that some elements might have been wishing to see the politicians divided, he borrowed a quotation from German philosopher Goethe to warn against the divide and rule policy, calling for unity.
“Divide and rule, the politician cries, unite and lead is watchword of the wise,” he concluded.
