Staying away from politics only way to preserve army’s pride

ISLAMABAD: Echoes of an inter-institutional tiff are in the air in the wake of some recent harsh comments passed by two federal ministers, followed by a rare statement by the army chief which was apparently made in the backdrop of Musharraf’s indictment by a trial court on treason charges.
While many analysts have taken the army chief’s statement as a warning shot for the Sharif government, khaki circles say the COAS was compelled to react to growing discontent within his institution over the harsh comments passed by the defence minister and the railways minister against an ex-army chief, which were tantamount to hurting the institutional pride of the army. While sticking to their guns, however, the ministers have maintained that the only person responsible for hurting the army’s institutional pride was none other than Musharraf who had indulged his institution in politics and thus made it controversial.

The Defence Minister, Khawaja Mohammad Asif, has described parliament the most powerful institution of the country, the Railways Minister Khawaja Saad Rafiq has said that no one can stop him from criticising the military dictators. The government circles say Musharraf is not being tried by the government but by the judiciary in accordance with the law of the land for abrogating the Constitution twice. Even otherwise, they say, being the head of a political party, Musharraf was no more a part of the army and thus no institution or entity should try to manipulate the institution of judiciary by making uncalled-for statements.

Speaking to the Special Services Group (SSG) Commandos at the Ghazi Base near Tarbela, General Raheel Sharif said on April 8 that “Pakistan Army upholds the sanctity of all institutions and will resolutely preserve its own dignity and institutional pride”. His statement was considered quite significant in both the Khaki and the government circles given the fact that before being appointed the COAS, he did not make public statements in his 35-year career, thereby suggesting that he had little interest in politics and that he would be a safe choice for the key slot of the army chief. He was thus elevated as the COAS by Prime Minister Nawaz Sharif while superseding two more-senior generals.

However, General Raheel Sharif, who is considered to be a professional soldier and a man of few words who has rarely spoken on non-professional issues even after being made the COAS, has not only broken his silence on the issue of Gen Pervez Musharraf’s treason trial but has also warned critics against undermining the military’s institutional morale. In his comments at the Ghazi Base in Tarbela, General Raheel Sharif regretted the timing of the campaign to ‘malign the military as an institution’ at a time when the country is faced with multiple internal and external challenge. ISPR statement noted that the army chief had made these remarks in response to “the concerns of soldiers on undue criticism of the institution (of Army) in recent days”.

While the army chief might have tried to cool down the sentiments of some of the SSG commandos by making these remarks, there are those in the government circles who believe that he has actually tried to assert the authority of the military as an institution at a time when a former COAS has been indicted by a trial court on treason charges.

It is for the first time that General Raheel has issued a statement which is being described by analysts as an obvious indication of the growing differences between the civilian and military leadership. The statement was made at a time when the government was expecting the army to maintain its institutional neutrality during the proceedings of the treason case against Pervez Musharraf.

The top brass of the army has already endorsed the views expressed by the army chief during the four-hour-long corp commanders conference, held in Rawalpindi on April 9. Subsequent media reports have stated that the commanders expressed solidarity with the COAS and articulated their confidence in his leadership. It has also been reported that the generals were upset with the government for having been unfairly criticised by the federal ministers and for proceeding with the so-called peace talks with the Taliban despite their reservations. These developments have in fact dispelled the impression of the civil-military leadership being on the same page which was being created by the government circles ever since the appointment of General Raheel as the army chief on November 27, 2013.

That was the second time that Nawaz Sharif, being the prime minister, had ignored the seniority rule while appointing the army chief. Earlier, Nawaz had elevated Musharraf as COAS out of turn by superseding the senior-most Lt Gen Ali Kuli Khan Khattak, a move which had backfired when Musharraf seized power in a counter coup in October 1999, after being sacked by Sharif and replaced by the then ISI chief, Lt Gen Ziauddin Butt. It is an open secret that the army has directly or indirectly ruled Pakistan for more than half the years since its independence.

In fact, in the very first decade after Pakistan came into being in 1947, the army became a politicised force — the power behind the throne in politics and, therefore, soon seized control. Subsequently, the army chiefs kept intervening frequently to impose martial laws for protracted periods; the coups of Generals Ayub Khan and Yahya Khan were followed by a pro-Jehad Zia regime that lasted 12 years and the so-called anti-Jihad Musharraf regime, which consumed nine more years of Pakistan’s life. Having tasted political power, the army has simply ceased to be apolitical. Despite repeated pledges by General Ashfaq Kayani and General Raheel Sharif to keep their institution away from politics and to make it apolitical, the army keeps influencing the national politics in one way or the other.

Analysts believe the Pakistan Army’s agenda of remaining the most powerful actor in national politics has received some irreparable setbacks in the last few years, starting with the May 2011 covert raid in Abbottabad that killed Osama bin Laden and left the Khakis hugely embarrassed. They believe that the decision of the COAS to finally speak up was meant to restore the institutional pride of the Pakistan Army.

Yet they are of the view that the army chief would have received enormous public support had he made public his concern over the ongoing peace talks with terrorists [who have killed over 50,000 civilians and security forces personnel] instead of trying to side with Musharraf who was responsible for indulging the army in politics and thus hurting its dignity and pride. Thus, the only legitimate way for the Pakistan Army to preserve its dignity and institutional pride is to stay away from national politics and focus on its professional responsibility of defending the geographical frontiers of the country.

Budgetary reforms and way forward

 

Government’s budget is a reflection of its policy intent. Through the budget, the government pronounces how it intends to foster job creation, stabilise the economy, bring down prices and facilitate investments. Now that the preparation of Federal Budget 2014-15 is progressing, I want to take this opportunity to explain our budget-making mechanism, broad-level medium-term priorities, and what will be the newer ways of working to enhance public sector efficiency going-forward.
The Federal Government is in the process of innovating new methods and processes to improve the system of public budgeting. Since government budget plays a key role in economic stability and growth and affects citizens and businesses, it is important that efforts should be focused on establishing a modern system of budgeting.

The Ministry of Finance has embarked upon important reforms that are aimed at improving fiscal discipline, focusing budget allocations towards emerging government priorities (for example, energy, public security, unemployment etc.), and introducing a system that focuses on achievement of results.

Living within the available means or controlling government’s budget deficit is an important economic consideration. If government expenses are more than its revenues, then it borrows money from banking system to finance these expenses. Borrowing beyond a certain limit can discourage private businesses from investments, which is an activity that creates jobs in the economy. Too much borrowing can also result in increased money supply that leads to rise in prices of commodities–called inflation. This in turn leads to increase in interest rates, which is also a discouraging factor for the businesses to grow. As public debts increase they impose a high cost. In 2012-13, the Federal Government paid 63% of net revenues (revenues available after transfer to provinces) as interest. High budget deficits also have an impact on sustainability of foreign reserves. Hence, a well thought out and sustainable budget policy is fundamental to a good budgeting system.

Many countries in the world have reformed their budgeting systems to meet the growing challenges of sustainability of debts, improved efficiency in allocations due to growing needs for austerity, and focus on performance for improving lives of the citizens and facilitating businesses. These reforms are necessary to avoid bankruptcy situation that for example recently arose in Greece.

Two important steps are required for making the budget sustainable. First is the adoption of fiscal rules –providing a legal backing of an upper limit of public debts. Second is the adoption of a Medium Term Budgetary Framework. The current government plans to halve the fiscal deficit, which reached 8 of GDP in 2012-13 (had it been unchecked, it would have been 8.8% of GDP) to 4% by June 2017. To achieve this important target the Ministry of Finance is strengthening the Medium-Term Budgetary Framework. This system requires preparation of a medium-term (3-5 years) macroeconomic framework (forecasts of GDP growth, investment, reserves, etc.), and a fiscal framework (i.e. forecasts of revenues, expenditures and borrowings). These forecasts and sectoral policies (e.g. investments in energy sector) are presented to the Cabinet in shape of a 3-years ‘Budget Strategy Paper’. Each year the Budget Strategy Paper is tabled in the cabinet that debates allocations, policy priorities, future investment needs, fiscal space, and issues such as economic stability.

The Budget Strategy Paper is guided by our medium-term macroeconomic goals. By June 2017, the government intends to achieve around 7% of annual GDP growth, reduce budget deficit to 4% of GDP, increase revenues to close to 15% of GDP and investments to 20% of GDP, and keep inflation in single-digits. When the government took over in June 2013, the GDP growth was 3.6%, budget deficit was about to reach 8.8% of GDP, revenues were 13% of GDP, and investments fell to historic low of 14% of GDP.

Determination of goals allows us to closely monitor our performance and make adjustments where required. I am happy to state that we are gradually progressing on our macroeconomic stabilisation plan and July-February performance suggests that tax revenues have increased by around 18% as compared to last year, and we have been successful in containing budget deficit to 3.1% of GDP as compared to 4.1% last year. Inflationary pressures that increased in the first quarter of 2013-14 have reduced in the second quarter and we are hopeful that the inflation will remain between 8% and 9% for the year. While it is relatively early to state that economic growth has entered into the next gear, there are positive signs emerging on different fronts.

The Budget Strategy Paper forms the foundation of the government’s budget. The medium-term perspective allows the government to set targets. Questions such as how the government will achieve this target, what policies will be adopted and what are the risks, are analysed to ensure that the targets remain achievable. The Budget Strategy Paper is also shared with the Parliamentary Standing Committees, political parties, and businesses to allow debate on the policies and forecasts. This makes the system more participatory, and transparent. Recommendation of citizens on government’s taxation and expenditure policies are currently collected at the budgetary stage but going-forward, we want to create a process through which there is a mechanism that ensures a formal participation.

Based on the forecasts detailed in the Budget Strategy Paper, each ministry is given 3-years expenditure ceilings. These are the total amounts within which ministries prepare their detailed budgets. To this date, we have forwarded 2014-17 budget ceilings, in two-envelops – one for current budgets and the other for public investments required for improving quality and access of public services, to all ministries. The ministries are being encouraged to cut down on wasteful expenditure and divert funds to high priority areas. Better public services, improved infrastructure, strengthened regulatory environment, availability of energy for businesses to enhance production, and human development are the selected priorities of the present government. We intend to ring-fence social protection expenditure so that the needy and the poor do not feel burdened by our drive for austerity. We are, therefore, working with federal ministries to ensure that our policies are adequately reflected in the budget 2014-15.

Another important factor is increased focus on achievement of results. In the traditional budgeting system, ministries would primarily focus on pays and procurements. This system lacked focus on performance or results that affect citizens and businesses in an economy.

To modernise this method, the government has introduced ‘Output-based budgeting’ system. In this new method of budgeting, the ministries provide goals, policies (in shape of outputs – services to be delivered, and outcomes – affect of those services on target population) and performance indicators and targets. The method requires ministries to specify the outputs that they would deliver to the public services. The main aim of introducing this method is to improve comprehensiveness of the budget, introduce a system of performance monitoring, and hold officers accountable for the use of public funds. Each year, the government also tables ‘Federal Medium-Term Budget Estimates for Service Delivery’ in Parliament together with other budget books at the time of budget presentation in May / June. This book presents the amounts and the intended purpose (government services e.g. public service delivery, facilitation to the markets, regulations, etc.) in shape of policies and performance details.

Budget forecasts, Budget Strategy Paper and Output Based budgeting are the beginning of a modern system of budgeting. However, more needs to be done to make the system even more transparent, comprehensive and accountable. While the country ratings in openness and transparency (as undertaken through Open Budget Index – an index compiled by non-government organisation for more than 100 countries around the world) have improved from 38 to 58, and ratings assessed through Public Expenditure and Financial Accountability system have gradually increased, the current government intends to roll-out further complementary reforms to make the system even more robust.

Firstly, a system of performance monitoring is being introduced. The moneys spent and the performance achieved against that budgeted / planned is an important step towards measuring performance and introducing a system of accountability for results. Secondly, to improve service delivery a system of delegation of authority is being discussed. In this system, the central controls on budgets and plans will be gradually decentralised and line managers will be given more autonomy and authority to deliver better services to citizens. This will require enhancements in capabilities of planning, budgeting and monitoring at the ministerial level. Thirdly, a public finance administration bill is being drafted to enhance management of public moneys. Fourthly, computerisation of output-based budgeting has started and linkages with the national accounting and budgeting system (called Pifra) are under way. In addition, results based management – where plans, budgets, audits and monitoring systems are aligned with achievement of results – is being planned for introduction.

Embedding new budgeting systems is an institutional reform, which requires structural changes in the way the government works. These changes, therefore, require time and resources for implementation. The current government is, however, determined to make the system conform to the modern systems of planning, budgeting and monitoring to make it transparent, participatory, and policy-focused. At the same time, the government is making efforts to implement its medium-term macroeconomic policy, and I would encourage our businesses to take advantage of our open policies and contribute in job creation for the prosperity of our people.

BlackBerry’s new flagship on the way. Now you know why BlackBerry Z10 got a price cut.

The BlackBerry Z10 is now selling for Rs 17,990

If you were planning to cash in on the price cut and buy BlackBerry Z10 then you might have to wait a week or so to get your phone, for the smartphone has almost vanished from stores across India.
Now, available for a limited period offer price of Rs 17,990, the phone is sold out at most online as well as brick and mortar dealers. We could not find the phone is stock with most top NCR dealers. Some of them said new stock should be in by March 10.
When contacted, Sameer Bhatia, Director, Distribution, BlackBerry India, confirmed to indianexpress.com that the phone had indeed been “stocked out”. “We have seen great response to the commemorative offer for BlackBerry Z10 and it is true that we have been stocked out.
MUST-READ: BlackBerry Z10 is a big deal at Rs 17,990. Here is why
Yes, we are looking at bringing fresh stocks in the next few days, so as to  ensure that more and more users are able to enjoy the cutting edge experience of a full-touch device combined with a revolutionary operating system,” he said.
However, despite the huge price cut, marking BlackBerry’s tenth anniversary in India, online portals like Flipkart still have units selling for as high as Rs 22,990. Bhatia said this was because in the market place model any seller could list any product at their own price. “On Flipkart, authorized BlackBerry product is sold via WS Retail. At present, WS Retail is stocked out.”
The BlackBerry Z10, the first smartphone to feature the new BB10 OS, was launched at a price of Rs 43,990.
There are suggestions that BlackBerry is working on a new flagship phone to win over new customers. Recently, BlackBerry CEO John Chen said in Barcelona that a new flagship is on the way, though he did not guarantee when.  The new price cut could be a way to get rid of old stocks before it brings in the new devices.
MWC: BlackBerry goes classic with Q20′s QWERTY keypad and menu, back buttons

Karan Johar: Alia Bhatt still has a long way to go

According to the Times of India, Bollywood director Karan Johar says his ‘Student of the year’ star Alia Bhatt has yet to prove her acting versatility. Bhatt has garnered heaps of critical praise for her performance in Imitaz Ali’s ‘Highway’.However, Johar, who is set to release his second film with the 20-year-old actress, believes Bhatt has yet to cover a long way in the industry to prove her talent. The Times of India quoted KJo as saying, "Alia has a lot to be explored. What we have seen so far is tip of the iceberg. Whether it is Highway or 2 States and her subsequent films, it will all add up to her repertoire. We all hope that she will live up to the expectations." Bhatt’s next film '2 States', based on Chetan Bhagat's best-selling novel, is slated to release on April 18th. It will feature Arjun Kapoor as the ...