Yellow Cab Scheme execution unsatisfactory

Donors consider such schemes ineffective, against market norms

Steps demanded to reduce failures in poverty alleviation measures

 

 

Islamabad: [Dec 18]

The Pakistan Economy Watch (PEW) on Sunday said the much-publicised Yellow Cab Scheme is not coming up to the expectations due to mismanagement.

 

The scheme was launched on 14th of July 2011 with plan to distribute 2500 vehicles every month for eight months for the elimination of poverty and unemployment, it said.

 

However, the plan could not be executed properly as thousands of cars are rusting at different showrooms across Punjab awaiting delivery, said Dr. Murtaza Mughal, President of the Pakistan Economy Watch (PEW).

 

Authorities recently announced that 5000 applicants have won the lucky draw only to find that 4600 submitted fake documents, he said adding that verification process should have been completed before the balloting.

 

The Punjab government is yet to decide to hold another draw or invite fresh applications making it unlikely for them to distribute 20000 vehicles -- 16,000 Suzuki Mehrans and 4,000 Bolans –by the deadline, said Dr. Murtaza Mughal.

 

He said that proper measures should be taken to keep this scheme successful lest it meets the fate of Sasti Roti Scheme and Yellow Cab Scheme launched in early 1990s.

 

Billion were lost in the earlier scheme, it drained the exchequer, invited criticism, hurt local auto industry while thousands of cars were converted illegally, he said.

 

Dr. Murtaza Mughal said that all such schemes have weaknesses; recovery rate is lower, government has to pick up the losses and the political interference keeps the targeted group from benefit of credit.

 

Moreover, the lack of knowledge, collateral and security requirements stand in the way of the poor, he added.

 

International donors would not favour such schemes considering them ineffective and against the market-friendly system, said Dr. Mughal.

 

He demanded immediate action to avoid another addition to the failed poverty alleviation policies and programmes.

--

Dr. Murtaza Mughal

Cell:  0321-5157671

President Pakistan Economy Watch

www.pakistaneconomywatch.com


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Civil society terms memogate scandal an attempt to thwart democracy; Says threatening the representative system tantamount to attack on sovereignty of people.

Karachi, 17 December 2011:

We, the representatives of the Civil Society including non governmental organisations, labour organisations, academia, women's rights bodies, and media persons express deep concern over the current political situation in the country where a crisis is being manufactured on frivolous grounds, and is being referred as the so-called Memogate. This has the potential of subverting democratically elected Parliament and the Constitution.

It is time all conspirators against democracy and the sovereignty of the people be called to account. Sovereignty belongs to the people who have agreed to exercise it through their representatives in a federal, parliamentary, and a democratic system. Any attempt at arbitrarily altering this arrangement is tantamount to an attack on the sovereignty of the people. Various institutions of the state are supposed to function within their defined constitutional parameters and complement each other but they seem to be working at cross-purposes, to the determent of public interest.

We emphasise that the role of political parties and political leaders is to represent their constituents' interests and arrive at negotiated agreements to differences in agreed political forums.

The role of state's security organizations is to serve the people through stipulated constitutional arrangements, under the command of the executive, and not to define what is or is not in the national interest.

The role of the judiciary is to protect the rights of the citizens from arbitrary abuse of executive power, and not to itself become a source of arbitrary executive power.

The role of the mass media is to help citizens hold powerful interests groups within and outside the state to promote their legitimate interests and hold violators of rights accountable, and not to itself act as an unaccountable interest group.

In our opinion, parliament is the appropriate forum to discuss and investigate this issue and come up with findings.

We believe that any attack on the sovereignty of the people will be unjust. It will necessarily lead to conflict and must be resisted.

We appeal to the people of Pakistan to stand united and firm in support of democracy and to resist all attempts aimed at its subversion. The people of Pakistan have made great many sacrifices for the cause of democracy and they should not let any vested interests trample their right to have a democratic and an elected representative system run the country.

Undersigned:-

1. Karamat Ali, Executive Director, Pakistan Institute of Labour Education and Research,

2. B. M Kutty, Secretary, Pakistan Peace Coalition ,

3. Dr. Kaisar Bengali, Senior Economist,

4. Dr Haroon Ahmed, President Pakistan Mental Health Association

5. Haris Gazdar, Independent Economist

6. Dr. Aly Ercelan, Senior Development Economist

7. Tasneem Ahmed Siddiqui, Chairman, Saiban, Former Chief Secretary Sindh,

8. Farooq Tariq, Spokes Persons Labour Party Pakistan,

9. Arif Hassan, Architect, Urban Planner,

10. Dr. Badar Siddiqui, Ex-President, Pakistan Medical Association,

11. Prof. Arfana Mallah, President Sindh University Teachers Association,

12. Nazim F Haji, industrialist, Former Chief Citizens Police Liaison Committee,

13. Dr. Jaffar Ahmed, Irtiqa Institute of Social Science,

14. Mohammd Tahseen, Executive Director, South Asia Partnership Pakistan,

15. Mohammad Ali Shah, Chairperson Pakistan Fisher folk Forum (PFF)

16. Dr. Abid Qayoum Suleri, Executive Director Sustainable Development Policy Institute

17. Naseer Memon, Chief Executive, Strengthening Participatory Organization, SPO,

18. Jami Chandio, Executive Director, Centre for Peace and Civil Society,

19. Samina Khan, Executive Director Sungi Development Foundation

20. Mehnaz Rehman, Regional Director Aurat Foundation,

21. Zulfiqar Halepoto, Sindh Democratic Forum,

22. Abrar Qazi, Awami President Awami Jamhori Party,

23. Zulfiqar Shah, Institute for Social Movements Pakistan,

24. Jaffar Memon, We Journalists,

25. Ishaq Mangrio, Independent Journalist,

26. Ghulam Fatima, Executive Member BLLF,

27. Punhal Saryo, President Sindh Hari Porhiat Council,

28. Arshad Mehmood, Executive Director Society for the Protection of the Rights of the Child

29. Qamar Hayat, Executive Director Sahara Development Foundation,

30. Sheema Kermani, Tahreek –e- Niswan,

31. Harris Khalique, Development Consultant,

32. Sheen Farukh, Inter Press Communications,

33. Lateef Mughal, General Secretary, Peoples Workers Union KESC

34. Aziz Abbasi, President Watan Dost mazdoor federeration

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IHC calls FBR Chief, Secretary Finance, CEO PRAL


The hearing from the respondents of writ petition registered in Islamabad High Court extended to 2nd February due to un-noticed absence of respondents. The writ petition was registered by Shah Khalid on November 18 under Article 199 of the Constitution of Islamic Republic of Pakistan.

On November 18, IHC had written letters to Secretary, Ministry of Finance, Chairman FBR and CEO PRAL to clarify the writ registered against them by aggrieved petitioner. But these respondents have not attended today's session of IHC.


Justice Anwar-ul-Haque has re-issued summoned to respondents to present before the court on 2nd February, next year to submit their stance on the grounds of losses caused to public exchequer and to him (petitioner) being part of this nation and horrifying loss of billions of rupees in customs duty, sales tax and other taxes. It caused complete destruction to local manufacturing industry which leads to unemployment and side by side it also caused shifting of industry to other countries, the role of PRAL by leaving loop holes in their system is absolutely doubtful of providing services to the FBR.

That ignoring the Public Procurement Laws is a criminal act and continuously to award work to PRAL without assessing their abilities and ignoring their corrupt practices is a complete failure.


That ignoring of Public Procurement Laws and silence of Public Procurement Authority and to award work to PRAL in spite of above mentioned facts and cause billions of rupees loss to public exchequer is a wilful negligence from their duties by Secretary, Ministry of Finance and Salman Siddique Chairman FBR particularly, writ petition says.

In a Writ Petition (3134/2011) filed before the Islamabad High Court, it has been prayed that since the software deployed by PRAL Pvt. Limited was responsible for pilferage of over Billion Rs. of Revenue, losses to the government may be recovered from the owners and shareholders of PRAL Pvt. Limited.


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