Pakistan - News and Discussion -7

[Naresh]

<b>Gloom in Gwadar and conspiracy with the Steel Mills</b> <!--emo&:flush--><img src='style_emoticons/<#EMO_DIR#>/Flush.gif' border='0' style='vertical-align:middle' alt='Flush.gif' /><!--endemo-->

<b>KARACHI: The announcement by Dubai Ports World to make an investment of $211 million at Port Qasim for the building and operating of a container terminal is welcome in some ways and worrisome in others. When completed, the terminal will double the capacity of Port Qasim and also significantly increase its revenues. That is welcome news since Port Qasim has never really been able to overtake Karachi Port despite all the plans that were made for it when it was envisaged.

However, the decision comes at a price. Initially, there was talk that Dubai Ports World would be building such a terminal at Gwadar. Although the CEO of the company has assured that the company will look at investing in a facility in Gwadar later on, the fact that it has chosen Karachi instead is significant.

It goes to show the private sector, particularly foreign investors, are wary about putting their money in Gwadar because of the rising uncertainty in Balochistan.</b> Despite claims that all is well, earlier this month the government also offered to provide protection to foreign investors who were wishing to invest in that troubled province. So far, that offer has got a cold response.

While there may be jubilation amongst the people and land owners of the Port Qasim area - as real estate prices are bound to rise following the setting up of the DPW container terminal there - there is gloom in Gwadar.

This project would have been the catalyst to getting Gwadar off the ground. It may be recalled that Dubai Ports World is the same company that got embroiled in a controversy earlier this year over taking operational control of six US ports.

Dubai Ports World then agreed to postpone its plans to take over management of six US ports after the proposal ignited harsh criticism on Capitol Hill. The strong US reaction over fears that national ports “would fall into Arab hands” made the company backtrack.

While conceding defeat, Ted Bilkey, the company’s chief operating officer, in a statement at the time, said: “We need to understand the concerns of the people in the US who are worried about this transaction and make sure they are addressed to the benefit of all parties.”

Now that Dubai Ports World has decided to operate in Pakistan, it is an opportunity that the government must capitalize on. There are many who feel that the Port Qasim Industrial Area has the potential to become a world class technology park and this can be achieved with names such as Dubai Ports World coming here.

So far, the government has done the opposite. Instead of encouraging hi-tech non-polluting companies to set up shop here, it has allowed such entities like the Textile City to be located here. This “city” envisages a number of polluting factories working in otherwise pristine surroundings. Such a “city” could well have been located elsewhere. So much for planning ahead.

Meanwhile, the conspiracy with the nearby Steel Mills continues. The haste with which the government is moving again for the sale of the Steel Mills the second time over is impressive. In contrast, the way it is dragging its feet over finding those responsible for the “errors of omission and commission” of the previous sale (which now stands cancelled) seems puzzling. Is there a link we are missing?

The chairman of the steel mills, a man in uniform, insists that this is a profitable entity that should not be sold. The argument is that privatization should concentrate on the loss-making plans that are a burden on the national exchequer.

However, the present government’s success in the privatization program seems to come from selling profitable ventures and not many loss-making ones. In the case of the Steel Mills, it seems someone is in quite a hurry for a sale. The latest salvo from Islamabad has come in the form of “placed” articles that argue why the Steel Mills should be sold. Why are we resorting to this?

Cheers <!--emo&:beer--><img src='style_emoticons/<#EMO_DIR#>/cheers.gif' border='0' style='vertical-align:middle' alt='cheers.gif' /><!--endemo-->