Farmers – Roots For Equity https://rootsforequity.org Mobilizing Communities for an Equitable World Wed, 13 Nov 2024 06:20:48 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://rootsforequity.org/wp-content/uploads/2021/07/cropped-Untitled-1-copy-1-32x32.jpg Farmers – Roots For Equity https://rootsforequity.org 32 32 World Foodless Day 2024 https://rootsforequity.org/?p=1906 Tue, 29 Oct 2024 07:23:35 +0000 https://rootsforequity.org/?p=1906 The Pakistan Kissan Mazdoor Tehreek (PKMT) is marking the “World Hunger Day’ on October 16, 2024 – a day which is marked by the United Nations as the World Food Day. However, the global data by the same esteemed organization gives a poor condition of food security, globally and in Pakistan, which has been ranked 109th out of 127 nations in the Global Hunger Index (GHI) report.

In 2023, according to the State of Food Security and Nutrition, World Report 2024 released by the Food and Agriculture Organization (FAO) of the UN, an estimated 28.9 percent of the global population that is, 2.33 billion people were moderately or severely food insecure. This include 10.7 percent of the population – 864 million people who faced severe levels of food insecurity.

The crippling situation has not been created in just a day – it is the consistent promotion of imperialist neoliberal policies that have pushed for trade liberalization in food and agriculture, not to mention the killer conditionalities coerced by the IMF standby agreements in many parts of the world.

A significant growth, 16.8 percent has been reported in the production of wheat, cotton, and rice crops, and the sector improved its share in gross domestic production; agricultural sector growth of 6.3 percent was the highest in 19 years. The government of Pakistan continues to earn huge foreign exchange reserves, all through the back-breaking labor of peasants, a vast majority of whom include landless farmers, including women. However, it is indeed shameful that poverty rate in Pakistan has increased from 38.6 percent to 39.5 percent over the last five years, with food prices sky high, making basic food items to be beyond the reach of the poverty-stricken masses.

While the peasantry, and the urban poor face hunger and malnutrition, the government guards the interest of traders and investors such that it continues to import wheat grains from abroad, while pushing prices down for local wheat, pushing small and landless farmers in debt and bondage, left to face hunger and misery.

With more than 24 standby agreements with the IMF, the nation’s debt keeps soaring; it has increased by around Rs. 4.64 trillion in the past months. While the people of Pakistan suffer from monstrous policies protecting the imperialist and local elites, the scenario is no different in other part of the world.

The ongoing imperialist wars of aggression in occupied Palestine for the past 12 months has now spread to Lebanon, Yemen, Iraq and is fast marching toward Iran. The destruction of agricultural land in the Gaza Strip, and the West Bank knows no bounds; 70% of agricultural land being wasted through direct bombing and toxic chemicals; farmers are killed persecuted and their means of production such as water wells, trees including centuries old olive trees are deliberately destroyed; fisher folk are forbidden access to the seas. All this is part of the genocide happening in Occupied Palestine, and has been part and parcel of the US-led Zionist fascist regime for more than 7 decades.

The unchecked carbon emissions from our colonizers over many centuries has given rise to climate crisis. Globally, and particularly in Pakistan, it is starkly evident that climate change has vastly negative impact on food security especially for rural communities and a variety of climate change impacts such as floods, droughts, and hurricanes.

The solution lies in not putting the country up for sale and taking dictation from international financial institution like IMF, but for building self-reliance in food and agriculture and national industry. It is critical at this juncture that we adopt food sovereignty as the base for our food and agriculture policy; making the voice and decision making of small and landless farmers, especially women in policy development and implementing, making just and equitable land distribution a priority can help the country to break the shackle of debt and pauperization, and also help in establishing a national industry, prosperity and food security.

Release by: Pakistan Kissan Mazdoor Tehreek (PKMT)

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Points to Ponder April 2024 https://rootsforequity.org/?p=1889 Mon, 07 Oct 2024 11:06:18 +0000 https://rootsforequity.org/?p=1889 Wheat as Food or Wheat as Lucre?

The country is going through a period of dismal debt and economic crisis that is further worsened by the climate crisis. Government policies do not necessarily help in alleviating the dire situation. While the government had been expecting a bumper wheat crop, and directives were given for ‘good price’ for the farmers, and ensure availability of the staple crop in the market, the final result can be considered anything but successful. While the crop itself was damaged due to heavy rains in parts of Pakistan, there were bureaucratic delays in setting procurement centers in various points in Sindh, resulting in farmers selling their produce at PKR 3,500/40kg, which was much less than the government procurement price of PKR 4,000/40kg. According to another report, the procurement price set by Sindh government was at PKR 4,600/40kg.

In Punjab, farmers also voiced their dissatisfaction with the support price set by the Punjab government at PKR 3,900/40kg, which was the same as last year. According to news reports, millers and stock buyers were offering PKR 2,800/40kg as compared to the official support price of PKR 3,900/40kg.

Rich farmers’ representatives like the Sindh Abadgar Board (SAB), have rejected the price set by the Sindh government. The economic and debt crisis has led to huge price increase for agriculture inputs including chemical fertilizers, petrol and diesel, and even though with a good bumper crop, farmers suffered losses due to traders’ monopoly. Farmers in Punjab, as well as the Pakistan Business Forum also critiqued the high input prices, while also pointing out the possibility of wheat smuggling by hoarders and smugglers. Sindh Abadgar Itehad (SAI) has also accused the agriculture extension department of corruption having ‘stomached’ PKR 4 billion that had been earmarked for flood impacted farmers in 2022, and has demanded a ‘high-profile inquiry’ for misuse of public funds. Allegations against corporations have been levied for charging over-market prices for fertilizer. These allegations do have credence as an inquiry by the Com­p­­etition Commission of Pakistan (CCP) has revealed that the fertilizer sector secured a whopping subsidy on gas to the tune of Rs152 billion but never passed the benefits on to the consumers.

In addition, the supply of bardana has been curtailed and hence farmers were unable to sell wheat at government set support price. What is to come in future is clear from Balochistan government’s announment that starting from next year, it will not provide bardana to the farmers but support them to buy the bags from the market. Such measures leaves farmers wide open to market shocks, a market that is monopolized by the rich and the powerful.

Before wheat harvest had started, government had allowed the private sector to import about 3.2 million tons of wheat. Unlike the farmers, millers were happy with the government’s policy allowing wheat import by the private sector, as according to them, it has given them freedom from ‘Sindh government’s blackmailing practices.’ Whether, these allegations are true or not, there is no disputing the fact that the bulk of small farmers have suffered hugely through increased agriculture input prices as well as lack of government support in selling their harvest, and falling wheat grain prices in the market; all of these factors have combined in pushing them further into debt and increased hunger, especially landless farmers and the urban poor.

Apart from the wheat fiasco, there is general crisis in the agriculture sector. The agriculture growth target of 3.5 percent set for 2023-24, is in doldrums due to ongoing rains impacting major crops including wheat. Other Rabi crops such as mustard and canola, and gram have also suffered, though sugarcane is expected to benefit. On one hand, there is high input cost, while on the other hand, the commodity prices for major crops such as wheat, cotton and maize have dropped by 25%. The protests by the farming community seem to have been heard, but really to no avail. The final conclusion by political big wigs was that the caretaker government was at fault, as it had allowed for the import of wheat in the first place.

One can point out the fact that it is the elected government that has increased gas prices causing an increase of urea price by around PKR 1,000/bag. This step is going to impact cotton yield, as famers will not be in a position to cultivate the cotton crop to the capacity required. It is being reported that the outlook for the upcoming cotton crop is not very promising due to difficult weather conditions, irrigation water scarcity, and the sky rocketing prices for agricultural inputs. Cotton contributes more than 60 percent to the total national exports, and ultimately this further hike in production cost will result in lower cotton yields impacting industrial production.

An interesting editorial in DAWN points out the fallacy of allowing support provided to farmers on wheat production, as it diverts farmers attention from value added crops to wheat; instead of providing support to farmers on wheat production, there should be complete deregulation of the wheat economy and linking it to the global grain market.

Such policy emphasis of course comes from those who support monopoly capital, and are heedless to escalating food prices which leaves millions suffering from hunger and grinding poverty. Actors pursuing neoliberalism and free market ideology are also not bothered about the millions of small and landless farmers who have played a pivotal role in wheat production, but are unable to buy the grain for their households. It should be noted that raw food exports that continued to expand in March, with a 16.35 percent increase to $685.03 million, up from $588.76m in the same month last year, has led to high food prices for local population.

Might is Right!

For many decades now, there has been unabating pressure from international financial institutions to adopt neoliberal policies for economic growth, including in the agriculture sector. From digital agricultural loans to farmers through organizations like Karandaaz (a non-profit receiving funds from Melinda & Bill Gates, that promotes digitalization of financial services including digitalization of the tax system), to modern agriculture warehousing through Electronic Warehousing Receipt (EWR) financing, all measures that allows agricultural commodities to be traded nationally and internationally. Digital marketing is in essence for the richest segment of farmers in the agriculture economy, and marginalizes the small and landless farmers.

In the same vein, there is continued push for enabling environment for private sector investment in aquaculture value chains for national and international markets. VC Dr. Dr. Iqrar Ahmad, Vice Chair Faisalabad Agriculture University has also urged the private sector to invest in high-efficiency irrigation.

Trade liberalization in agricultural production continues, allowing corporate farming and joint ventures with other countries. According to Saudi Arabia, Saudi agriculture corporations are interested in joint ventures for improving value chains in the agriculture sector, with a lofty vision of Pakistan becoming a ‘bread basket for the kingdom’ as well as for the entire region.

Pakistan and Iran are also bolstering their trade relationship, with annual trade volume to be increased to $10 billion. The relationship has been stagnating under the impact of geopolitics directed by trade sanctions by the US on Iran. While, Pakistan is on a path to increasing trade with Iran, US and Pakistan have renewed a key framework to promote bilateral trade, the Trade and Investment Framework Agreement (TIFA).

It is indeed interesting that though free market economy seems to be the bible for international trade forcefully thrust by US and other G7 economies, but when it comes to trading with Iran, a different beat is heard. Pakistan and Iran’s bilateral trade plans, especially in context to “setting up of joint border markets, economic free zones, and new border openings”, is raising hackles in certain quarters, The US Department of State has been warning Pakistan about trade with Iran, to the extent of sanctions that are designed for putting an end to political and economic relations with Iran. Hence a ‘free market economy’ is not really a free market economy, but hinged on dictates of those in power. No doubt, the idiom ‘might is right,’ is based on such show of political and military strength, often used by imperialist forces.

It is noteworthy that Pak­istan’s merchandise ex­­ports to United States has come down by 10.14 percent to $3.63 billion in the first eight months of the current fiscal year from $4.04 billion over the corresponding period last year. At the same time, Pakistan’s exports to China increased by 42 percent; it has increased to $1.895 billion in July-February FY24 from $1.334 billion over the corresponding period last year.

According to Punjab Livestock Secretary, Masaud Anwar, Pakistan has come to terms with China for exporting dairy products to China through a state-of-the-art farm developed in Sheikhupura.

In short, there is a continued shift in Pakistan’s trade pattern, where it is now trading more and more within the region; whether this trend will continue in the long term is yet to be determined.

At the same time, the role of the Special Investment Facilitation Council (SIFC) in attracting investors to Pakistan remains central. Investors from UAE, Saudi Arabia continue to be in dialogue with Ministry for Finance and Revenue. At the same time, there is also invitation to Australia and France for investing in the country.

Climate Imperialism?

There is no doubt that Pakistan is facing diabolical damages based on climate change. Though the government bureaucracy is accepting the fact, and at least making speeches for addressing the issue, the context of putting the blame for this havoc on western industrialized nations carbon emissions seems to be lacking. According to the Sindh Chief Minister Syed Murad Ali Shah, climate change impact was emerging in shape of water scarcity and could be addressed through introducing new cropping patterns that includes low delta crops aimed at reducing water consumption and increasing efficiency in agriculture. Mitigations could also be carried out by introducing agricultural water conservation practices that could also include drip irrigation, sprinkle system, dry farming, conservation tillage and other methods.

Given the extreme dearth of water resources in the country, it is worth pointing out that Coca-Cola, a corporation that faces not only boycott but is also responsible for using up extensive water reserves has invested $22 million in the beverage sector, specifically in technology upgrade, capacity enhancement of its export potential, and employment for over half a million local professionals along its chain.

In the end, the focus is on imported technology, and promotion of the same model of industrial development which is responsible for the catastrophic climate crisis. Our policy makers are blind to the rich source of local and indigenous knowledge embedded in our communities; the fact that the immense wealth generated by the agriculture sector is hinged on the immensely powerful productive force of small and landless farmers is totally ignored.

At the same time, the failure of government bureaucracy is abysmal. For instance, the Sindh Chief Secretary has acknowledged before the Sindh High Court that the timelines for implementation of Supreme Court-appointed water commission could not be met. There were still 769 points from where different departments had been releasing waste into freshwater bodies. Such negligence in context to water sources is criminal lack of accountability seems to be the order of the day.

After decades of pursuing a free-market economy the economic strength of the country, and social condition of the Pakistani population, especially rural communities, the low-income urban masses continues to deteriorate. There is no doubt that the austere economic policies dictated by the international financial organizations are for the benefit of corporations and investors, not for the people. What is the way out is a question which need to be asked and answers sought.

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Commercialisation of genetically modified sugar cane crops strongly opposed https://rootsforequity.org/?p=1791 Mon, 01 Jul 2024 08:02:35 +0000 https://rootsforequity.org/?p=1791 KARACHI: Highlighting the hazards of genetically modified (GM) crops, the Pakistan Kissan Mazdoor Tehreek (PKMT) has urged the National Biosafety Commission (NBC) to reject the proposal for commercialisation of two GM sugar cane crops.

In a press release, the PKMT stated that it strongly opposed the recent move of the Technical Advisory Committee, operating under the Environment Protection Agency (EPA), Islamabad, wherein it had approved and recommended commercialisation of two high-yielding GM varieties of sugar cane; insect-resistant transgenic sugar cane (CABB-IRS) and herbicide-tolerant transgenic sugar cane (CABB-HTS) developed by the University of Agriculture, Faisalabad. It now needs final approval of the NBC.

“The PKMT denounced this attempt. This will further allow the corporate sector to control our food and agricultural production. The approval for GM sugar cane commercialisation will be disastrous for the country, especially for the agriculture sector. It will be the first GM food crop in Pakistan,” officials of the non-profit organisation stated in a press release.

The world, they said, had already witnessed the failure of Bt cotton crop in India; farmers had borne the brunt of the Bt cotton, and the rapidly falling cotton yield in Pakistan was also a testimony to the fact.

“It’s also to be noted that GM crops are banned in several European Union (EU) countries as well as Turkey and many other countries.”

They recalled that in 2019, there was an attempt to introduce maize seed in Pakistani market, but the Ministry of National Food Security & Research distanced itself from the approval of genetically modified maize.

“Now, after the failure of Bt Cotton, and disapproval of GM maize, another attempt is being made, which will only further undermine farmer’s collective rights over seeds and agriculture production. There is no doubt that the corporate sector for the past many years has been lobbying for the commercial use of GM crops.”

“Granting of patent rights to mega-transnational corporations springs from the TRIPs (trade-related aspects of intellectual property rights) agreement of the WTO. The PKMT reiterates its demand for a moratorium on genetically modified seeds and foods in the country and immediate stoppage of GM sugar cane promotion.”

The organisation also referred to the petition filed by various civil society organisations against the Amended Seed Act 2015, and demanded an immediate hearing of the petition pertaining to matters to farmers’ collective rights to seeds.

“It’s well known that sugar cane is used for ethanol production. This move will exacerbate the extremely dire situation of environmental catastrophe, not to mention the increasing pauperisation of small and landless farmers. We strongly urge the National Biosafety Committee to disapprove the two varieties,” the organisation stated.

Published in Dawn, June 17th, 2024

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Points to Ponder February 2024 https://rootsforequity.org/?p=1777 Tue, 11 Jun 2024 12:03:46 +0000 https://rootsforequity.org/?p=1777 Export, Starve, Export

The current fiscal year (FY) has shown a consistent increase in export of raw food products. According to the Pakistan Bureau of Statistics, the food export value has more than doubled to $787.36 million in January, up 105.29 per cent from $383.54m in the same month last year. Food exports grew 57.66 percent in the first seven months of 2023-24 to $4.26 billion from $2.70 billion in the corresponding months of last year.  According to the Trade and Development Authority of Pakistan (TDAP), it is expected that export of Pakistani food items projected to cross $7 billion mark by the end of FY 2023-24, reflecting a sharp contrast of about $4 billion annual exports in this sector previously. And the impact is inevitable as domestic consumer prices for food have been increasing, with food inflation at a stunning 27.4 percent in January. High price of basic food items such as wheat flour, rice, sugar, meat, and vegetables has made their access difficult for the common person. Food inflation since October 2023 has been on average, 29 percent.

It is also worth pointing out that, even though Government of Pakistan claimed a bumper wheat crop, it imported 613,147 tons of wheat in January, up 6.67 percent from 447,560 ton over the corresponding month of last year. Similarly, there has been an increase of sugar imports 26.12 percent January FY24 from corresponding month, last year.

Private sector has been importing wheat with federal government’s approval, to meet domestic demand as the country was facing a massive shortage of over 2.5 million tons. It is being pointed out the influx of imported wheat, even as harvesting approaches, will end up posing challenges for growers in selling their produce at minimum support prices.

At the moment, for this year, the Punjab government is claiming a good wheat production of 25.6 million metric ton (MMT). However, lessons learned from past years, it is hard to believe government claims, as they do not translate into economical access for the working class. It is important to note that Pakistan’s wheat consumption is projected to reach 33 million tons in the next two to three years, which requires urgent planning to meet domestic food security.

After export of food commodities, there is now also interest in exporting livestock and fish items. There has been a ban on export of livestock, but recently the Ministry of Commerce has sought permission for its export to support artificial insemination (AI) in Sri Lanka. According to the ministry, Sri Lanka after research has decreed that the ‘Sahiwal cow is one of the best dairy cattle in India and Pakistan, which has the attributes of heat tolerance, high milk production, and resistance to parasites. Sahiwal bulls are expected to contribute significantly to enhancing the genetic qualities of cows.’Similarly, amendments have been made in the Pakistan Fish Inspection Rules, 1998 that will facilitate the export of fish and fisheries-related products to various foreign markets, including existing and new.

The export policy orientation of the country is clear from the Economic Coordination Committee (ECC) approval of proposals for enhancing value added exports, which included permission to import of wheat and export of wheat flour under Export Facilitation Scheme 2021. A Free Trade Agreement (FTA) between Pakistan and Gulf countries had been ratified last year, and increasing trade with Saudi Arabia was one way of enhancing exports. According to the Chairman of the Saudi Business Forum, Hassan Al Hazawi, bilateral trade between the two countries has increased by 35 percent.

It is interesting to note that though a ban on export of both metallic and non-metallic minerals including pink salt in raw form has been improved, it does not cover minerals which will be mined and exported under government to government (G2G) pacts being facilitated under the Special Investment Facilitation Council (SIFC) framework. Although it was not stated which minerals were being exported under the SIFC, most probably they include the gold and copper mining Reko Diq project in Balochistan.

Minting Agriculture

Agricultural production remains the most lucrative sector in Pakistan, and is a center of focus for furthering its productive and profitability. From the 1960s to the present, genetic resources have been a key area of research and with the formation of the World Trade Organization (WTO), its Trade-related Aspects of Intellectual Property Rights (TRIPs) agreement, a source of earning mega profits, as genetically-engineered seeds are protected as intellectual property of giant monopoly agrochemical corporations. US corporations and academics have been facilitating the use of genetic technology in agriculture. Ostensibly, it is all about increasing crop yield and ‘feeding the hungry.’ Recently, a US Professor Dr Bikram S Gill visiting Pakistan at University of Agriculture Faisalabad, has encouraged young ‘breeders’ to use emerging technologies. He is the founding Director, Wheat Genetics Resource Centre, at the Kansas State University, and researches ancient grains for coming up with modern grain varieties. One has to remember, that first of all these ancient grains have been preserved based on traditional scientific knowledge of many generations of farmers, especially from the global South. Now these ancient varieties’ genetic material is being used by giant agro-chemical corporations to create new varieties that are protected by intellectual property agreements, such as TRIPs. These varieties are heavily dependent on expensive external inputs such as chemical fertilizers, and other forms of technology all to bought from the corporate sector only to further increase national debt.

A new theme emerging in agricultural production is guarding women’s rights. According to Sindh Agriculture University’s vice chancellor, information technologies (ITs) integration in agriculture would not only enhance productivity but also create new opportunities, especially for women in agri-business and related fields. The vice chancellor believes that ITs use in agricultural products’ would increase agricultural exports to global markets and increase the country’s GDP. All of this would lead to development of rural women’s participation in education, IT, agricultural development and domestic industries in Sindh.

A recent study by Food and Agriculture Organization (FAO) has highlighted the lack of recognition of women farmers in Pakistan. They are generally not considered farmers, unlike males in similar circumstances; farmers are considered to be those who own and till the land. However, women work long hours – 12-18 hours a day, but do not have the means to be independent farmers.

In recent months, there have been news items stressing women agricultural workers’ training. According to a news item, the Sindh Community Foundation (SCF) has signed a Letter of Understanding with Directorate of Literacy and Non-Formal Education, Education and Literacy Department, Government of Sindh to train 3000 women cotton workers in Matiari and Sanghar districts. This venture will result in increasing literacy of women and help them in fighting for fair wages and decent working conditions.

These developments are positive. But one has to wonder what is driving this concern for women’s literacy? On one hand, a literate work force is certainly in a better position to demand for their rights. At the same time, corporations need a literate, trained workforce for a higher quality of work as well as for reading instructions and other functions.

Dream Visions and Road Blocks  

While modern technology is constantly being advocated for increasing agricultural productivity, there are many hurdles that do not seem surmountable. A critical issue remains availability of urea, which seems to be caught in a vicious cycle: urea production is dependent on gas as fuel, and ever-increasing price of gas in the market results in its price hikes (even though subsidy is provided to industry). In addition, urea is also imported but even then, there is an acute shortage and black marketing of urea. This year, the industry is already claiming that urea bags will be available for PKR 1,700. Other chemical fertilizers such as potash and phosphorous are also being provided subsidies for cotton crop production. It should be noted that even though gas prices are astronomical, the federal cabinet has further approved a 67% increase in the natural gas tariff with effect from February 1.

While chemical fertilizers are being subsidized, that are major contributors to carbon emissions, the Food and Agriculture Organization (FAO), is pursuing implementation of Sustainable and Regenerative Management of Rice Production in Pakistan. The Global Environment Facility (GEF) has approved $6.9 million for this intervention. The aim is to restore 15,000 hectares of land and improve farming practices on 50,000 hectares, including protected areas, reducing approximately 460,000 tons of greenhouse gas emissions, benefiting nearly 75,000 individuals, almost 50% of whom are women. It is indeed quite puzzling that how will opposite goals of increasing productivity through chemical-intensive agriculture and reducing carbon emissions will work together.

Another major obstacle with grave consequences is Pakistan facing water scarcity for agriculture production on one hand, and on the other the rapid melting of glaciers as a result of global warming. Given the seriousness of the matter, Pakistan has raised this issue at a UN Security Council meeting, ‘stressing the crucial importance of upholding the Indus Water Treaty.’ Pakistan and India share water resources based on a World Bank brokered agreement in 1960, the Indus Water Treaty. According to a news report, India is seeking greater share of Indus Basin water by modifying the treaty, and it also opposes discussing the issue at international fora. Apparently, that’s why India avoided treaty references at UNSC debate. In the past years, India has built dams on the Chenab River, and Pakistan wants to resolve the conflict through arbitration, as per the treaty recommendation. However, India has been objecting to the Article IX of the treaty, which provides a dispute resolution mechanism. In the meanwhile, according to the Caretaker Provincial Agriculture Minister, Punjab, a program had been initiated to transfer tube wells to solar system in the salt affected areas of Punjab.

Loss and Profit

Pakistan’s industrial sector is reeling under the constant escalation of gas and power tariffs. IMF’s conditionalities know no bounds; the rupee devaluation and then taking away advantages from national industry is whittling its ability to compete on a global scale. Particularly concerned is the textile sector. All Pakistan Textile Mills Association (APTMA) in the past year, and now once again raised concern against high electricity and gas tariffs and their implications on textile industry. It is being stated that if remedial measures are not taken, over 50 percent of industry will be at high risk of shutting down.

At the same time foreign corporations are not necessarily in the same boat. According to Nestle Pakistan Limited (NPL), its sales have increased by 23.4 percent to PKR 200 billion in 2023 from PKR 162.5 billion in 2022. The profit-after-tax (PAT) has also managed to climb, to PKR 16.5 billion from PKR 15 billion. Similarly, FrieslandCampina Engro Pakistan Limited, a subsidiary of FrieslandCampina Pakistan, has reported a growth in profitability by 35 percent to PKR 482 billion in 2023. The consolidated PAT increased 43 percent, to PKR 66 billion from PKR 46 billion last year. However, due to the remeasurement of thermal energy assets, the consolidated PAT stood at PKR 36 billion.

The Competition Commission of Pakistan (CCP) has approved M/s Fauji Foundation acquisition of Fauji Cereals Business. This increases the sphere of the Fauji Foundation, which had concentrated on production and sale of dairy and allied products previously.

Under the mantel of IMF conditionalities, the caretaker federal cabinet has approved the privatization of the First Women Bank Limited. In addition, a restructuring of Pakistan International Airlines (PIA) was approved based on which a new holding company will be created, a prerequisite for the sale of PIA to the private sector.

In addition, the federal cabinet also approved the deregulation of prices of medicines that were not part of the List of Essential Medicines.

In the wake of debt crises, the panacea offered by international economic and financial organizations is to liberalize trade. In the past year, Sri Lanka like Pakistan has been through a turbulent economic crisis; according to the World Bank, its economy contracted 3.8% last year. In order to improve its economic situation, Sri Lanka has heightened its focus on trade deals. Thailand and Sri Lanka have signed a Free Trade Agreement, where Sri Lanka hopes it will be able to overcome its financial crisis. Like Pakistan, Sri Lanka has also entered a barter trade agreement with Iran, exporting $20 million worth of tea to Iran to partially repay its $251 million oil debts.

While the prescription is trade and more trade, it is important to note that the international trade arena is becoming more and more difficult. At the WTO 13th Ministerial Conference, its director general Ms Ngozi Okonjo-Iweala noted that the global economy was fragmenting into separate blocs, with wars, tensions and elections having an impact on the trade environment.

It is important to point out that in response to the genocidal attack by Israel on Gaza, Yemen’s Ansarullah have blocked ships going to Israeli ports. According to the IMF, the total transit volume – including not only containers – through the Suez Canal had dropped by 37 percent this year through January 16 compared to same period a year earlier.

The Climate Catastrophe Alms and IMF Conditionalities

It been 18 months since the country went through one of its worst floods in history. The 2022 floods impacted 33 million people, caused over 1,700 casualties, displaced over 8 million people, and pushed a further 9 million into extreme poverty. Recent data through a revised Flood Response Plan reports that food shortages in the recent months has pushed more children toward malnutrition, with over 2.1 million children suffering from Acute Malnutrition Analysis, and need urgent treatment. Many institutions and countries have been providing help which include the United Nations Development Program (UNDP), European Union, Germany and Japan.

Even though the help provided is much needed by affected communities, one has to question the mode of production, especially pursued by the rich industrial countries which are the main culprits with respect to historical as well as present high carbon emissions. These unchecked emissions are the main reason for the raging climate emergency, creating havoc on the poorest of the poor.  It’s quite ironic that the Asian Development Bank has committed more than $10.4 billion for climate finance in 2023 to help developing member countries in Asia and the Pacific region to cut greenhouse gas emissions and adapt to the impacts of a warming planet; this money would have been better spent demanding the rich industrial countries to bring about drastic changes in their production and consumption patterns.

On one hand, ‘alms’ are handed out to alleviate the suffering of the victims of climate crisis, and on the other hand, same set of decision-makers impose economically crippling conditionalities which do not allow countries to reach a stable economic environment. Case in point is the fact that Pakistan plans to once again go the IMF seeking a fresh loan package amounting to $6 billion. At the same time, the government has requested the World Bank for an extension of the closing date and restructuring of the “Pakistan Raises Revenue (PRR)” project worth $400 million.

The vicious cycle of borrowing is out of control, as the caretaker government has borrowed almost PKR 4 trillion from various banks. According to analysts, the country is facing a poor economic growth, and is unable to pay of the circular debt of the power sector which has reached PKR 5.7 trillion.

So, on one hand, the government borrows recklessly, while the working class is the one which through its blood and sweat remains the main provider of country’s earnings: the State Bank of Pakistan (SBP) reports that workers’ remittances have increased by 26.2% year on year in January. In dollar amounts, $2.397 billion were received in January against $1.9 billion in the same month of 2023.

Whether it is remittances or export earnings, these have been created by the country’s working class including migrant workers, as well as the peasanty. It is deplorable that while they are the wealth makers, their own living conditions continues to suffer from inequity and marginalization.

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Points to Ponder January 2024 https://rootsforequity.org/?p=1744 Mon, 03 Jun 2024 13:40:53 +0000 https://rootsforequity.org/?p=1744 Unabating Debt

With the start of a new year, the situation in the country sees no real change in terms of economic stability. It is unfortunate that in 75 years, it has gone to the IMF 23 times for financial bailout programs. The State Bank of Pakistan has received the second tranche of $700 million, which is approximately equivalent to SDR 528 million. The last tranche of $1.2 billion under the $3 billion Standby Agreement is expected in March 2024.

Data on Pakistan’s borrowing record is stark testimony to its achievements in being able to pull itself out of debt on a path to self-reliance and economic stability: it ranks 5th in outstanding debt at $7.4 billion. Other countries before Pakistan are Argentina, Egypt, Ukraine, and Ecuador. According to Pakistan’s Economic Affairs Division (EAD) data, the country seems to be functioning on borrowed money; it has borrowed $5.968 billion from multiple financing sources during the first half (July-December) of the current fiscal year 2023-24 compared to $5.595 billion borrowed during the same period of 2022-23. According to news reports, Pakistan has received $1.2 billion as the first tranche of the $3 billion Stand-By Arrangement (SBA) in July 2023, and $1 billion from the UAE. If these amounts are added to the total financial inflows, a total of $8.168 billion during the first half of the current fiscal year (FY).

In the fiscal year 2023, Pakistan purchased $894 million, accompanied by charges and interest payments totaling $776 million and $325.8 million, respectively. According to the IMF, an IMF loan is disbursed by the borrower’s purchase of foreign currency assets from the IMF with its own currency. Repayment of the loan is achieved by the borrower’s repurchase of its currency from the IMF with foreign currency. In 2022, Pakistan’s purchase from the IMF had been $1.64 billion, which is testimony to its dependence on the IMF. It is noteworthy that the IMF has downward revised real GDP growth to 2% from 2.5% for the ongoing FY.

Panacea or Poison

In order to get out of the debt quagmire, it seems that the government policy making is based on neoliberalism, with emphasis on increasing exports as the lynch pin. The Federal Minister Commerce, Industries & Production as part of the caretaker government, has been paying especial attention to increasing trade relations with various countries, and has even been visiting the MENA region to boost Pakistani trade. In addition, he is hopeful that exports will cross $100 billion in the next five years if the 10,000-acre new industrial zone in Karachi comes to fruition. That this push for exports is having an effect on the trade deficit is certainly there, as it has narrowed by 34.29 percent in the first half (July-December) of the current fiscal year 2023-24. Exports in December have increased by 22.21 percent, from $2.3 billion last year to $2.82 billion for the same corresponding month.

On the whole, there has been increased exports for a number of agricultural goods such as maize, whose exports have tripled, escalating from $85 million to $262 million in a period of one year, and rice whose exports in the same period from last year have gone up from $282.53 million to $367.39 million. Similarly, textile and clothing sector exports have gone up to $1.39 billion, up from $1.35bn in the same month the previous year, and has shown an expansion of 3.3 percent. The export of raw food products have increased massively up to 111.63% in December 2023, and overall, agriculture and food exports jumped by 64% during first half of current fiscal year; the increase was from $2.345 billion to $3.847 billion in same period last year. It needs to be highlighted that our major export markets are the European Union, USA and China. Given the intense political tug of war between the western imperialist countries and China, with Pakistan caught in between, it does not border well for Pakistan. It is important to note that Pakistan is adopting trade settlements in Chinese RMB rather than US dollars. There has been an increase of nearly 600 percent in trade settlements using the Chinese currency. This will decrease the country’s dependency on US dollars but of course what will it mean in terms of Pakistan’s debt obligations to China have to be further studied.

From the perspective of food security, the upsurge in exports for rice, (especially basmati), meat and fruits has other ramifications as well. High food prices mean hardship and hunger for the people at home, especially the very farmers who are responsible for rearing the livestock, fruit and vegetables. In the end, though huge loans taken by governments run by elite of the country, the cost is born by the working masses. There has been high inflation in the country, going up to 29.7 percent in the last months. According to reports, various consumer companies saw their unit sales falling and declining purchasing power of the people. They have been blamed on soaring prices of basic kitchen items, as well as electricity rates. The economic situation of the common man is well understood by suicide cases being reported which include murder of family members as well based on inability to meet family needs. Such shocking cases portray the suicidal rise in basic items. This is even more tragic, given that global food prices came down in 2023. According to the FAO, its Food Price Index (FFPI) fell by 10% below its December 2022 level.

Apart from promoting exports, foreign direct investment (FDI) is also being promoted in the country. Only in November, 2023, FDI increased by 12 percent, growing from previous year’s $117 million to $131.4 million in the same time frame. SBP data for the first half of the current fiscal year shows that a net FDI of $862.6 million was received and is a 35% increase. Foreign investment is based on the primary self-interest of the investors and does not necessarily take into consideration the needs of the local communities, or country’s welfare. The aid agencies as well as commercial groups of various countries including China, UAE, USA are interested in investment in agriculture, including fruits, mines and minerals. This trend is quite apparent. The Caretaker Federal Minister for Privatization has concluded the privatization of the Heavy Electrical Complex (HEC) with the purchasing party IMS Engineering. The Asian Development Bank has stated that it would promote enhancement of the role of the private sector in its so-called climate resilient housing ecosystems. No doubt that these investments will promote neoliberalism, hinged on privatization that would increase the role of transnational corporations responsible for human rights abuses and environmental degradation.

Produce and Export, No Matter the Cost

Agriculture production is bulwark of export. And the means for increasing production seems to lie only on external inputs and technologies. The Economic Coordination Committee (ECC) of the Cabinet has given permission importing 200,000 metric tons of urea as a buffer stock, which is being brought in from Azerbaijan. There were special instructions given against hoarding and ensuring farmers’ easy access to the input. Apart from urea, agriculture sector machinery and equipment were also imported, showing an increase of 60.76 percent.

Of course, multinational corporations such as Nestle have been promoting modern technologies, and for ‘educating’ farmers. It is quite ironical that the farming sector, which is the biggest export sector, responsible for most of the foreign exchange earnings, is always being considered the most backward.

In the same vein, another Spanish clothing multinational, Industria de Diseño Textil (Inditex) is also interested in working with farmers in Pakistan. According to D&B Hoovers, Inditex is one of the world’s largest fashion retailers, globally having 6,475 shops under seven different banners, including Zara, Bershka, and Zara Home. It is owned by a Spanish billionaire. One wonders, why such a corporation, which has faced intense criticism for its ‘fashion sense’ making fun of ongoing massacres in occupied Palestine? Further, can giant multinational corporations who are responsible for intense exploitation of workers and environment deliver justice and equity?

In any case, Inditex has provided funding to the International Labor Organization (ILO) for carrying out the second phase of a program, Fundamental Principles and Rights at Work (FPRW) in the cotton sector. The objective of the workshop is to promote rights of cotton workers, and capacity building of cotton-growing communities to advocate for their rights and address gender inequalities in the sector. The ILO and Inditex entered into a partnership in 2017 to promote an integrated approach to FPRW in the cotton supply chain in China, India, Mali and Pakistan.

Another news item provides information on the caretaker Sindh government and M/s Green Corporate Initiative (Private) Limited entering an agreement to provide over 52,000 acres of land in six districts for corporate farming. This initiative falls under the Special Investment Facilitation Council (SIFC). The M/s Green Corporate Initiative (Private) Limited which is under the umbrella of the Pakistan Army is supposed to carry out corporate farming using barren land in all provinces of Pakistan. It should be noticed that in November 2023, the Economic Coordination Committee (ECC) had approved provision of PKR 20 billion through the Federal Government to the Defence Division, Ministry of Defence. According to the news, based on the successful pilot corporate agriculture farming project in Punjab, a government-to-government (G2G) Joint Venture Agreement was signed at Chief Minister House between the Sindh government and M/s Green Corporate Initiative (Private) Limited. The amount of land and districts included in providing barren land include 28,000 acres in Khairpur, 10,000 acres in Tharparkar, 9,305 acres in Dadu, 1,000 acres in Thatta, 3,408 acres in Sujawal and 1,000 acres in Badin. The agreement is based on 20 years to carry out the so-called Green Pakistan Initiative.

It should be pointed out that while thousands of acres of land is being handed over for corporate farming in Sindh, the province is facing persisting water shortage that could lead to a drought. In addition, climate change impacts including calamities as well as rising sea level has been eating up land and/or it has been destroyed by salinity. The year 2023 has been marked as the hottest year in world records. In Pakistan, the climate crisis has had a major impact on the cotton crop, which has been suffering a decline for a number of years, and even this year the production did not reach the set target. In the mountains, there has been a dry spell and lack of snowfall which means lesser amount of water in the rivers. This will impact fish species that breed in the downstream ecosystem. The impact of climate crisis, now having been upgraded to climate emergency is a global phenomenon. Across the world, countries are suffering from drought, forest fires, decreased ground water and other impacts. For experts on the subject, the answers lie in attracting foreign direct investment in the fisheries sector. Colonial dominance has allowed dependence on foreign expertise rather than trying to tap into indigenous knowledge systems and finding answers from the communities’ wisdom gained over centuries. It is worth pointing out that while so much emphasis is being put on trade and foreign trade, the world is going through an intense political upheaval, with wars and militarization disrupting trade routes. The genocidal aggression by Apartheid Israel against Gaza, suggests of a looming famine in the Strip, with its entire population of 2.2 million already facing crisis levels of food insecurity.

Is this the time for relying more on trade or is it time to assess our internal strengths, capabilities and promote self-reliance leading to a resilient national economy? A recalibration is also needed as according to the World Bank’s analysis Pakistan’s the economic performance does not seem so rosy, with growth projected at only 1.7 percent. This scenario is also predicted globally, where third year in a row, economic growth is predicted to remain slow, prolonging poverty and debilitating debt levels in many developing countries.

The discrimination against small and landless farmers is quite blatant. In Kohat district, the agriculture department has introduced drones for pesticide spraying. From a health perspective, no doubt its beneficial for the farmers to spared pesticide spraying. But a remark from a senior member of the agriculture department that such technology is more time efficient, as well as spares the cost of hiring labor is objectionable. Livelihood, and for that decent livelihood is the responsibility of the state and such remarks show a stark lack of concern for the livelihood of agriculture workers.

Small farmers have great difficulty in accessing these chemical fertilizers due to black marketing, and due to land being intoxicated to these chemicals, it is difficult to get a good harvest without their use. It should be noticed that in the current FY budget, PKR 30 billion have been allocated for fertilizer subsidy. However, the subsidy is provided as gas subsidy to fertilizer plants, and then fertilizer has to be sold at a subsidized rate. As is seen every year, in the end chemical fertilizers are in short supply and hoarded to be sold at much higher rates than set by the government and/or or smuggled out of the country. In summary, profits are minted by various interest groups except small farmers.

At the same time, the government officials protect the big landlords by not levying taxes on their income and agricultural land. According to a tax expert, Dr Ikramul Haq, the remedy is to let the federal government collect the taxation on agricultural income, while transferring to the provincial governments collection of sales tax on goods. According to him, the current situation allows concentration of resources and powers in the hands of privileged classes who support corrupt government officials as they safeguard interests of these elite segments of society. There has been a constant resistance from the federal government and provincial authorities to impose income tax on agricultural income of rich landlords based on their political clout. In the FY22-23, agricultural income tax accumulatively from all of the provincial governments was PKR 2.4 billion. Reportedly, its national potential could be up to PKR 800 billion, if the agricultural income tax was imposed in accordance with the Constitution.

National Assets: Our Children

There is a price to the above policies. And it is being paid by children. Khyber Pakhtunkhwa’s first provincial Child Labor Survey 2022-23 has shown that 11%, about 745,165 children are employed as child labor. The situation would be more or less the same in the other provinces. With accelerating economic deterioration in the economic stability of the country, children are forced to share in financial provision for their families. Another issue that revolves around children’s health is the increasing occurrence of Type 1 diabetes in children in Pakistan. Around 100,000 are estimated to be suffering. The cause of Type 1 diabetes in children is considered to be the presence of high fatty and processed food. It is considered to be more prevalent in urban rather than rural centers and is also due to lack of healthy environment providing children the awareness and space for physical activity. The context of development is based on many parameters defined in the Sustainable Development Goals of the UN. It is quite evident that children are being neglected in the country based on glamorizing values pertaining to profit-seeking Capitalist society especially targeting children.

There has to be a more wholistic view of development rather than just seeking foreign exchange and chasing our tails to get rid of the mountainous debt.

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Sustainable Production & Consumption Education (SPACE) program https://rootsforequity.org/?p=1721 Mon, 03 Jun 2024 13:30:25 +0000 https://rootsforequity.org/?p=1721 May 30, 2024: A Sustainable Production and Consumption Education (SPACE) program conducted at a Gulshan Public School in Karachi. Students participated in discussions on patriarchy, colonization, Pakistan’s debt, and climate change. Young people are our most valuable asset and must be a forward force in our development.

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Point to Ponder December 2023 https://rootsforequity.org/?p=1711 Mon, 03 Jun 2024 12:23:49 +0000 https://rootsforequity.org/?p=1711 Corporate Agriculture – the Crux of the matter

With the formation of Special Investment Facilitation Council (SIFC), there has been heavy emphasis on promoting agro-chemical agriculture, with Green Revolution technologies considered markers for progress. The role of the Pakistan Army in SIFC remains dominant. In context to the project ‘Green Initiatives,’ the Pakistan Army Chief of Staff (COAS) has identified plans for ‘agriculture malls,’ that would supply various facilities to farmers. He has been quoted, to have said that “provision of easy agricultural credit, cold storage chain, climate change resistant seeds and genetically engineered livestock will be ensured”.  These development in the agriculture sector are alarming, as the economic and political positions of ‘famers’ in the country is divided into those who are on one hand big feudal lords, and rich farmers, while the bulk of those who till the land, are small farmers and agriculture workers.

This is in essence the crux of the matter. Agriculture sector, though it remains the major employer in the country has declining productivity. Climate change is often held responsible for the poor performance. However, political factors are not given the weightage that they deserve. On one hand there is vast inequity in land distribution, and on the other modern technologies and private sector are considered a panacea to all ailments. The long-term harm caused by Green Revolution policies are totally ignored. Agriculture university academics are lamenting soil infertility, with more than 6.3 million hectares of land having been destroyed by salinity. While soil nutrients are decreasing, we have the defense forces claiming they want to bring back the glory of development through Green Revolution technologies, which are globally accepted to have been the key catalyst to environmental degradation, loss of biodiversity, and a severe impact on human health. Even under acute national debt of $128 billion, instead of planning policies that would decrease the debt and increase local reliance in agriculture production, a new Green Revolution package worth PKR 2 billion has been introduced.

Apart from the crippling harm to biodiversity, especially loss of local and indigenous seeds, and pesticide poisoning, there is also now overwhelming dependency on profit-seeking agro-chemical corporations. Apart from these issues are also, bureaucratic procedures, poor policy planning and implementation, black marketing of agricultural inputs, soaring unbridled cost of production are all factors that do not take into account ground realities of small farmers. An example is that while ‘experts’ emphasize insurance and small loans for small farmers, according to a report from the Securities and Exchange Commission of Pakistan (SECP) has provided data that of the total population of farmers of 8.2 million, only 9.5 percent of the farmers were insured against the disaster risk insurance and small loans. At the same time, at peak sowing seasons, there has been continued shortage of chemical fertilizers, a situation that has been prevailing for many years. This year, government officials had assured urea imports of 200,000 tonnes; however, all provinces have reported once again, acute shortage of the chemical fertilizer. Farmers have been protesting against the black-marketing of urea fertiliser by dealers. The ultimate result is that a majority of the peasantry is pushed deeper into debt and poverty. Apart from the scenario at home, the use of agro-chemicals for agricultural production is being questioned, globally. At the COP28 UN climate summit in Dubai, there were calls for complete phasing out of chemical fertilizers based on their heavy reliance on fossil fuels.

For the policy makers in the country, the way out from the high national debt ultimately relies on increasing exports. In the past month, two export advisory committees were established, one for exports of the textile sector, and the other for the non-textile sector. They are expected to formulate policy guidelines that are to be shared with SIFC. Based on these developments, the Export Advisory Council (EAC) held its inaugural meeting under the chairmanship of Caretaker Minister for Commerce, Dr. Gohar Ejaz, charting the course for Pakistan’s $100 Billion Export Vision, where a $50 billion elevation of exports in the next five years was considered. While there are discussions of increasing textile exports underway, Punjab, the biggest cotton producing province was not able to reach even 50% of its cotton production. It’s worth pointing out that the textile industry has been reeling from the impact of highest ever energy cost, a direct result of the conditionalities of the IMF. It is also important to point out that adverse weather conditions have not been kind to cotton production, globally.

Trade – the merry go round

Exports are tied to trade relations with other countries, and Iran and China are key trade partners. There has been further developments in Pakistan-China trade relations. China has agreed to revise the Free Trade Agreement. Private sector parties of Pakistan and China have signed several memoranda of understandings (MoUs) with a $10 billion investment in four major export-oriented sectors. Joint ventures (JVs) planned include establishing industries in key sectors including textiles, agriculture, food, and car spare parts manufacturing.

Additionally, a protocol has been signed to export halal meat to China. In the coming weeks, Pakistan will commence shipments of boiled meat to China. Mr Gohar revealed that a protocol has been signed with a Chinese investor to cultivate peanuts across 10,000 acres of the Cholistan desert. The peanuts will be exclusively grown for export purpose. In addition, China is willing to put forth new investments in automobile, mineral, and agricultural sectors, with joint venture in the textile sector, with Chinese technology to be used in special economic zones. The Chinese government has also agreed to consider the option of providing trade finance in Yuan. Trade with Iran has also shown further developments with respect to barter trade.

Among exports are also fodder exports to Kuwait, based on cultivation of high protein fodder ‘alfalfa.’ The caretaker CM Punjab, is emphasizing the scientific drying and preservation of this nutrient-rich feed. There are also plans to provide alfalfa seeds to farmers for cultivating the fodder. Other key players, such as FPCCI members have highlighted the importance of increasing rice exports, while hoping to meet an annual rice export target of $3 billion by the end of the fiscal year (FY) 2024.

Further, according to the Pakistan Bureau of Statistics, food exports have increased year-on-year by 37.12 percent during the first five months of the current fiscal year, recorded at $2.64 billion during July-November 2023-24 as compared to $1.92 billion in the same period last year. The rice exports surged by 49.37 percent to $1.11 billion from $749.4 million, last year. Likewise, the exports of fruits rose year-on-year 15.27 percent to $128.13 million, leguminous vegetables 79.01 percent to $0.084 million and spices 19.21 percent to $45.179 million.

While there is an increase in food exports, the situation of food security in the country is not so rosy. UNICEF is looking for $135.6 million from the donor community for 2024 to meet the critical humanitarian needs of more than 5.5 million Pakistanis, including 3.4 million children. These fund requests for 2024 are for the protracted and ongoing nutrition emergency following the 2022 floods, and for Afghan refugees residing in Pakistan. According to UNICEF, funds requested will be used to help 1.3 million people gain access to safe water and sanitation, provide essential health and nutrition services for 5 million people, among other uses. The state of hunger and malnutrition cannot be separated from high food inflation in the country. In November 2023, it stood at 29.8 percent in urban and 29.2 percent in rural areas, whereas non-food inflation was 30.9 percent in urban and 25.9 percent in rural areas. The rise in food prices, particularly wheat have been met with popular protest. In Gilgit-Baltistan, a shutter-down strike was observed as the increase in the rate of subsidised wheat, has significantly increased over the past six months — first from PKR 7.5 to PKR 20 per kg in June, and then recently to PKR 52 per kilogram

The Lynch Pin – Foreign Direct Investment

Another area of concern for policy makers is the decrease in remittances, which has been a key sector for earning foreign exchange. The World Bank has projected a drop in remittance flows to Pakistan to $24 billion in 2023 and further drop below $22 billion with 10 percent decline in 2024.

While Pakistan is one of the most vulnerable countries to climate crisis, more than 50 percent of foreign direct investment (FDI) has been in the power sector of Pakistan, mostly for coal power projects.  Most of the coal power projects are being funded by China. According to the government of Pakistan, the Thar coal reserves are worth $25 trillion, much needed to pay back foreign loans.

Policy making seems to have an internal conflict. Increasing exports is the highest priority, and given the billions in dollars in debt, it is understandable. However, the very policies that are enacted for increasing exports, end up increasing the debt burden instead of reducing it, as it is heavily reliant on further loans, and opening the country to foreign investments; investments which keep the investors profits at heart, and is not concerned with other social, political and/or economic consequences that may arise for Pakistan. Projects like the Green Initiative, are being critiqued as ‘poison for the country,’ where millions of acres of land are being offered for corporate farming.

The debilitating climate disasters in the country are based on the global character of climate crisis. This is further exacerbated when agrochemical technologies are introduced, and at the same time increasing food and agriculture exports to foreign markets. The impact of climate disasters are suffered by the population, mostly those segments who are the most marginalized.  It needs to be pointed out that the impact of these disasters are long term. After the 2022 floods, to date, 1.3 million people remain temporarily displaced in Sindh, Balochistan, and KP, with 900,000 concentrated in five hardest-hit districts of Sindh, posing risks due to preexisting vulnerabilities. According to the World Malaria Report 2023, as a result of the 2022 floods, Pakistan is facing a five-fold surge in Malaria, with reported cases escalating from 500,000 in 2021 to 2.6 million in 2022; this was based on stagnant water providing an optimal breeding environment for mosquitoes. In addition, over 150,000 cases of watery diarrhea are being reported every week across Pakistan as children are facing micronutrient deficiencies. According to the World Health Organization (WHO), other reasons for the spread of the disease were displacement, healthcare system breakdown due to the crisis, increased levels of food insecurity and malnutrition. Further, according to the World Bank, Pakistan’s GDP is expected to decrease by a minimum of 18 to 20 percent by 2050 due to severe climate-related occurrences, environmental deterioration, and air contamination; all of these factors are directly related to capitalist, modern technologies dependent on fossil fuel production. The situation globally is also alarming, as there is further increase in global warming. According to scientists, based on available data, ‘ice cores, tree rings and the like suggests this year could be the warmest in more than 100,000 years.’

And then, as part of the panacea, further loans are provided for mitigating the impacts. For instance, the Asian Development Bank has already approved a $80 million concessional loan as part of its $1.5 billion pledge of support for Pakistan’s recovery from the 2022 floods.

One also needs to examine the ethical character of lending institutions. It is in this vein, an organization, the Fair Finance Pakistan carried out a policy ranking of leading commercial banks, based on which it was reported that these banks had low policy commitments in the following areas: climate change, human rights, gender equality and labour rights. On a scale of zero to 10, with zero being the least desirable policies, the five banks scored an average of 0.5 for addressing climate change. These banks have not publicly disclosed any climate policies alig­ned with the Paris Agreement. All five banks scored an average of 0.72/10 in human rights policy ratings. None of the banks disclosed human rights policies related to their investment or financing, which is “not aligned” with the UN Guiding Principles on Business and Human Rights. In a similar vein, in Amsterdam, Netherlands, Extinction Rebellion, a climate activist group blocked a major highway demanding an immediate end to the financing of fossil fuel projects by the country’s largest bank, ING. According to Extinction Rebellion, ING was the main financer of fossil fuel projects in the Netherlands.

The hypocritical face of corporations can be clearly seen by the fact that in Pakistan, a program, “Recharge Pakistan’, a seven-year, $77.8 million activity to use nature to help adapt to climate change, has as one of its funders The Coca Cola foundation, which is providing $5 million. It is no hidden secret that Coca Cola company is one of the worst corporations in the world that is not only creating plastic pollution, but offers a high sugar-based soft drink that has no nutritional value, rather just the opposite. In addition, it is part of corporations that are known for funding the apartheid Israel, carrying out genocide in the occupied Palestine. The brutal aggression carried out by Zionist forces in Gaza have led to wide scale protests by hundreds of healthcare professionals, paramedics and students. In face of such brutality, it is quite atrocious that corporations like Coca Cola are being allowed to provide funds for climate crisis or any other issue, when they themselves are active players in the ongoing ecocide, globally.

Grotesque Imperialism

The Israeli assault in Gaza has many consequences for economic development as well as social and political freedom across the world. There are millions of people protesting against the genocide and intense destruction of Gaza. With Yemen blocking the Red Sea, it has already impacted global trade with world’s largest shipping corporations having re-routed their ships and imposed extra charges. Similarly, the attack on democracy and human rights in occupied Palestine, has been beyond what has been seen in recent years. Since October 7, in Gaza more than 20,000 people, mostly women and children have been killed, while the health system has been destroyed through Zionist aerial bombardment. According to the UN World Food Programme, half of the 2.3 million Gazan population is starving. The Palestinian foreign minister has stated that Israel is using food as a weapon of war, as the occupation forces have cut off food, medicine and fuel forcing starvation on the people. The year 2023 can only be remembered as the starting of the demise of the legitimacy of the western countries that have been holding the world accountable for human rights, women’s rights, freedom of expression and peaceful demonstration, among other pillars for democracy. The economic crisis, the environmental and climate crisis are all set for becoming worse. It is the time for uniting for raising our voices for genuine democracy and just and lasting peace.

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The Rural People Demand: Food, Land and Climate Justice! https://rootsforequity.org/?p=1552 Fri, 20 Oct 2023 07:30:33 +0000 https://rootsforequity.org/?p=1552 Press Release | World Hunger Day | October 16, 2023

The Pakistan Kissan Mazdoor Tehreek (PKMT) and Roots for Equity in collaboration with Asian Peasant Coalition (APC), Pesticide Action Network (PAN AP) are marking the “World Hunger Day’ on October 16, 2023 – a day which is considered to be World Food Day. A peasant gathering (JALSA) has been organized in Ghotki, Sindh.

According to a recent report by UNICEF and the World Bank, about 333 million children (one in every six children) worldwide live in extreme poverty, while 62 million children in South Asia are living in extreme poverty. The World Food Programme estimates that 345 million people worldwide suffer from severe hunger, while according to the United Nations Food and Agriculture Organization, the number of people suffering from hunger in the world in 2022 was between 691 million and 783 million. According to a recent UN statement, another 745 million people could suffer from severe hunger this year. Apparently, we are in the 21st century, and it seems that high technological advances are also taking place, but the world is facing increasing hunger, with rural women being the most disadvantaged, who are not only suffering from hunger and malnutrition but also deprived of proper employment and ownership of their personal land, especially agricultural land.

Given that Pakistan has been ranked 99th out of 129 nations in the Global Hunger Index (GHI) report, where the level of hunger has been described as serious; food agencies such as World Food Programme (WFP) and the Food and Agriculture Organization (FAO), believe that more than eight million people are expected to experience “high levels of acute food insecurity.”

The situation has not been created in just a day – it is the consistent promotion of neoliberal policies that have pushed for trade liberalization in food and agriculture that have resulted in such a dire situation.

The intense land concentration, with just 5% feudal families having control over 67% of land is of course also a critical reason behind not only rising hunger but the intense indebtedness of the country. The small number of elite who govern our country has pushed it into an abyss of debt and pauperization; at the moment Pakistan has a debt of $85 billion which has resulted in a severe economic crisis forcing austerity measures on the people. The government has been begging for aid from different sources, and since beggars cannot be choosers agricultural land is being offered for lease to foreign entities. The government has created entities such as the Special Investment Facilitation Council (SIFC) that have an extraordinary presence of the armed forces. The SIFC is paying particular attention to privatization and investment, especially in food and agriculture, and will result in massive food exports. In addition, there is now land also being leased for corporate farming, with corporations being given priority over farmers, especially small and landless farmers. This is only going to have further grave consequences for rural communities, the bedrock of our society.

As a result of the IMF conditionalities, the prices of fuel have risen astronomically making it difficult for small farmers to continue food production. The rising debt of the farming community will end in exacerbating landlessness in the country.

The solution lies in not putting the country up for sale but in building self-reliance in food agriculture and national industry. Corporations and foreign direct investment will only leach the country of its resources, while reaping rich profits off our land and labor. It is critical at this juncture that we adopt food sovereignty as the base for our food and agriculture policy, with center space given to small and landless farmers, especially women in policy development and implementing. There is no doubt that by making just and equitable land distribution a priority can help the country to break the shackles of debt and pauperization, and also help in establishing a national industry.

Let us fight for Food Sovereignty, for Climate Justice, for National Sovereignty!

Released by: Pakistan Kissan Mazdoor Tehreek (PKMT);

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Peasant-Labour Women’s Demands: Land, Food and Decision-Making Power https://rootsforequity.org/?p=1549 Fri, 20 Oct 2023 07:23:18 +0000 https://rootsforequity.org/?p=1549 Press Release | International Day of Rural Women | October 15, 2023

We mark the Rural Women’s Day with grave concern! Though we are now in the 21st Century, and there is high technological development, the world is facing rising hunger, with rural women being at the highest rung of being the most marginalized, suffering from hunger,  hunger wages, and hunger for a piece of land of our own.

Women farmers, though almost all are landless are the backbone of the agriculture economy. Seeds cannot be sown, land cannot be looked after, livestock cannot be cared and bred, harvests cannot be cut without women. In Pakistan, all food crops, especially wheat are harvested by women’s back-breaking labor, almost all cotton is picked by women, and livestock is cared for by women but even after this hard labor, the rural women peasants are the most marginalized in society.

The imperialist world order dictates neoliberalism as a panacea for our misery and enforced poverty, but in fact, it is the base of our pauperization. From colonization to the present day, we the real tillers of land have been forcefully pushed off our lands. Feudal lords retain control of our land, and with the rise of imperialism, more and more corporate hegemony can be seen being imposed on food and agricultural systems.

It is the fossil fuel, profit-greedy production system that has now brought about the climate crisis. But imperialist powers are unwilling to change the unsustainable production and consumption, and we are left to suffer the intense destruction and damage of our land, homes, and livestock. Not only climate crisis, we also suffer the burden of an astronomical national debt which we never took! The austerity measures imposed by the IMF and World Bank are further crippling the food and agricultural production system.

Our government instead of leasing our land for the export of food should stand up to the capitalist nations demanding debt cancellation, ensuring just and equitable land distribution to the peasants, especially women, and ensuring safe and nutrition food for all that is free not only from chemical and genetic pollution but also free from corporate control. In short, we ask for a policy orientation that would fulfill our demands for food sovereignty, climate justice, economic and social justice, and accountability to the people.

Women Demand Food Sovereignty!

Women Demand Just and Equitable Land Distribution!

Women Demand Climate Justice!

Released by: Pakistan Kissan Mazdoor Tehreek (PKMT)

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Points to Ponder July 2023! https://rootsforequity.org/?p=1465 Tue, 12 Sep 2023 07:06:23 +0000 http://rootsforequity.org/?p=1465 There have been major developments in Pakistan’s food and agriculture system in a matter of weeks, where after the finalization of the deeply inhumane-IMF stand-by agreement, the government of Pakistan has adopted a new strategy for trade liberalization in food and agriculture. This will end in bringing fresh onslaught of misery and hunger for the people, especially women, children and elderly in the country. The IMF conditionalities result in a massive debt burden, which is not felt only by the Pakistani people but across the neocolonial world. According to the United Nations, global public debt has surged to a record $92 trillion in 2022. Domestic and external debt worldwide has climbed up more than five times in the past two decades, and third world countries owe almost 30 per cent of the global public debt, of which 70pc is represented by China, India and Brazil.

Based on various surveys, in the period 2017-22, 21.5 percent population in Pakistan suffered severe multidimensional poverty, while 12.9 percent is vulnerable to multidimensional poverty. Globally, in 2023, 1.1 billion out of 6.1billion people (just over 18percent) live in acute multidimensional poverty across 110 countries. The United Nations has called for a pause in debt repayments for countries like Pakistan. According to the United Nations Development Program (UNDP), the global situation of economic crisis, the pandemic and other shocks, 75 million people have fallen into extreme poverty, defined as living on less than $2.15 a day, between 2020 and the end of 2023 — and 90 million more will fall below the poverty line of $3.65 a day. The new head of the World Bank has said that growing divide between rich and poor nations risked deepening poverty in the developing world, at a meeting of G20 finance ministers in India- a context which coming from the World Bank is almost laughable. Such statements do not stop the international financial institutions from imposing crippling conditionalities on debt-stricken countries, as is very clear from the stark economic crisis in Pakistan.

The result of thrusting neoliberal policies can be clearly seen in our domestic policy. The outgoing Prime Minister just before leaving office along with the Chief of Army Staff General Asim launched the Special Investment Facilitation Council (SIFC). The primary focus of the SIFC will be on investment and privatization, initially targeting five areas: Defense, Agriculture, Minerals, Information Technology and Telecommunication, and Energy. The Pakistan Military has been given key prominence in SIFC, which is represented by both civilian and army personnel. The SIFC will serve as a ‘single window’ for multi-domain cooperation with Gulf countries including Saudi Arabia, Qatar, the United Arab Emirates  as well as China, aiming to facilitate investment and create an enabling policy environment. According to the outgoing Prime Minister, Pakistan needs political stability to attract investment as an unstable environment discourages investment. Pakistan could attract investment of $40 to $50 billion in the coming years and it could make food exports to the gulf countries presently importing food products worth $40 billion from else where; in addition, the government hopes that through these investments in agriculture there would also add to four million more jobs.

The Chief of Army Staff General Asim Munir assured Pakistan Army’s full cooperation in overseeing the new SIFC as well as other investment ventures. Hence, the major political upheaval in the country in the past few months has culminated in a soft coup in the country, where all facilities facilitating trade and investment will be overseen by the military, to ensure political stability in the country.

According to the Minister of State for Petroleum Dr Musadiq Malik, the Kingdom of Saudi Arabia and United Arab Emirates are taking keen interest in Pakistani information technology, agriculture and mining sectors. The Saudi government plans to provide 24 billion dollars for investment purposes, while UAE has reportedly allocated 22 billion dollars funds for exploring opportunities in three sectors of Pakistan. Similar information was shared by the Secretary, Special Investment Facilitation Council (SIFC) Jameel Ahmed Qureshi while briefing the National Assembly Standing Committee on Board of Investment (BoI). According to him, Saudi Arabia would like to invest in the mineral sector, while Qatar and UAE are interested in investing in agriculture. Chinese corporations are interested in investing in seed and other sectors.

In addition, a Green Initiative has been launched based on a Land Information and Management System, Center of Excellence ((LIMS-CoE) with joint ventures with multinational companies, to enhance modern agro-farming utilizing over nine million hectares of uncultivated state land. Saudi Arabia has provided an initial $500 million investment to set up a high efficiency irrigation system. There is a belief that there will be an influx of investments from the Gulf countries.

It’s also expected that a high-level Iranian delegation will be visiting shortly to discuss the possibility of exploring investment projects under a trilateral arrangement between Pakistan, China and Iran. Earlier this month, the Army Chief General Syed Asim Munir had also visited Iran.

It is clear that investment in Pakistan has come at a cost. Saudi Arabia, UAE and China have provided Pakistan with much needed dollars to meet IMF conditionalities. According to Finance Minister Ishaq Dar, Pakistan received $2 billion in financial support from Saudi Arabia, and $1 billion from UAE, shortly before the IMF’s board was expected to give final approval for a much needed $3 billion bailout to the Pakistani economy. Saudi Arabia has deposited the funds with the State Bank of Pakistan (SBP) boosting foreign exchange reserves, which stood at around $9.7 billion. Similarly, China has rolled over $2.4 billion in loans to Pakistan for two years that were up for repayment in FY24 and FY25. Under the nine-month arrangement, Pakistan will receive about $1.1billion upfront and the IMF will stagger disbursements of the rest.

The government has announced that the annual inflation surpassed its budgetary target and remained at 29.18 per cent for 2022-23 owing to the unprecedented rupee depreciation, increase in domestic taxes and rising global commodity prices. There is no doubt that the resounding inflation is based on the escalating debt due to neo-colonial, neo liberal policies. At the same time, the elite culture of impunity has led to extreme malfunction of all productive systems in the country. Lack of accountability to the people is the base for the current diabolical situation. The impact on the people, especially the working class, the small and landless farmers, workers of all categories including the urban poor is tragic. People are forced to pay utility bills, as if they are not paid supply is cut-off. Ultimately, it is only food and health needs that are neglected as there is no other recourse.

The active role of foreign donors in food and agriculture is quite apparent. Pakistan Agricultural Research Council (PARC) has announced launching of new projects with the technological assistance of Korea Programme on International Agriculture (KOPIA), South Korea to enhance production of various crops.  It should be noted that the venture is not only for seeds but also include breed improvement through the implementation of efficient artificial insemination services, and dissemination of improved technology for fodder production.  The attention on seed and livestock breeding are of major concern, as work on genetically modified organisms continues globally. Recently scientists have genetically engineered female fruit flies that can have offspring without needing a male, marking first time “virgin birth” induced in an animal. The offspring of the flies were also able to give birth without mating, showing that the trait could be passed down generations. Such irreversible biological intervention in biodiversity can end in extreme catastrophe not to mention exacerbating environmental pollution. Pakistan, with its high dependency on foreign donors will find itself being pressurized to accept investment measures that could result in environmental and food security disasters, that is already highly at risk through the country’s vulnerability to climate crisis.

Research on wheat seeds has resulted in the release of bio-fortified wheat varieties with higher zinc context. The expectation is that the wide-scale cultivation of these seeds on nearly 3.25 million hectares of land will help to mitigate malnutrition. The research has been assisted by funding support from various donors including USAID, Bill & Melinda Gates Foundation, and Foreign, Commonwealth and Development Office (FCDO) of the United Kingdom and the Pakistan government. The stated context of these new trade liberalization ventures is to increase food and agriculture input for domestic markets, and creating exportable surplus for the Gulf states and China However, there is no guarantee that the food security of the masses will be looked after first. Currently, according to the World Food Programme, 37 percent of Pakistanis are food-insecure and one-fifth of them are facing a severe food crisis. The remedy proposed by the government is to launch the “National Multisectoral Nutrition to Reduce Stunting and other forms of Malnutrition” worth PKR 8.5 billion under the Pakistan Nutrition Initiatives (PANI). This multisectoral programme is for highly-burdened stunted, calamity-hit and less privileged districts, including 12 districts in Balochistan, 10 in Sindh, five in Gilgit-Baltistan, and two each in Punjab and Azad Kashmir. The context is to reduce stunting and other forms of malnutrition with a multisectoral approach. As part of the project, micronutrients and nutritional supplements, Ready-to-Use Therapeutic foods are to be provided to treat stunting and wasting.

Food fortification projects are pushed by mostly G-7 countries such as the US, UK, Germany whose multinational corporations such as Nestle, Keloggs, and others hold a monopoly over food fortified products, globally. This is indeed capitalist plunder using people’s misery, hunger and poverty to extract money. All this in face of an ever-increasing mountain of debt in the country.

The result of allowing the corporate world to dominate over food and agriculture is more than visible. According to the State of Food Security and Nutrition Report of the UN, world hunger stopped rising in 2022 after growing for seven years but remains above pre-pandemic levels and far off track to be eradicated by 2030, Between 691 million and 783 million people faced hunger last year, and the proportion of people facing chronic hunger rose from 7.9 percent of the world population in 2019 — before the pandemic — to 9.2 percent in 2022. The report also states that about 2.4 billion people — three out of 10 people on the planet — suffered from moderate or severe food insecurity in 2022.

One of course one is left to ponder that if indeed malnutrition is a major concern of the governments, then why is equitable land distribution not being considered which would go a long way in eliminating structural causes of inequality in society. At the same time, land is being freely allocated to the military for trade and investment measures. The government is fully prepared to advance modern corporate farming initiatives and facilitate the army’s role in agriculture is clear from a judgement of a Lahore High Court division two-judge bench. It had been reported last month that a single judge bench had ruled against handing over 45,000 acres of land in three districts of Punjab to the army on a 20-year lease for Corporate Agriculture Farming (CAF) under the China-Pakistan Economic Corridor (CPEC). This judgement has been struck down, with a statement that the decision by the interim government of Punjab was beyond the mandate of both the caretaker and the military. A two-judge bench has suspended the single bench’s decision and has issued notices to the respondents for a date to be fixed later by the office. So, though no steps are being taken by the state to initiate any form of land distribution among small and landless farmers in the country, corporate farming as well as induction of other actors in food and agriculture production is being promoted.

Stark anti-people, anti-farmer measures have been the base for overriding people’s rights, and pushing them into an abyss of hunger and poverty. To make matters worse, there is acute state negligence in safeguarding public resources. It has been reported that over 7,000 wheat bags were found filled only with straws and loose earth at a government warehouse in Khairpur, Sindh.

Corporate sector has expressed interest in agriculture related industrial raw material of textile industry and agreed to sign a memorandum of understanding (MoU) with Sindh Agriculture University (SAU) on different projects especially on quality production of cotton, banana fiber and banana powder. A delegation of the country’s popular Al-Karam Textiles and other industrial enterprises visited Sindh Agriculture University and discussed issues of mutual interest. The SAU university is researching the quality seed of various cotton commodities, as well as on liquid and composite fertilizer technology from banana fiber and banana residues.

At the same time, the condition of agriculture land is also deteriorating – according to the Punjab State of Environment Report 2022, released by the Environment Protection Department (EPD) Punjab, about 6.3 million hectares of land in Pakistan is salt affected and over half of this lies in the Canal Command Area, with approximate annual loss of over $2,326 million in the cotton-wheat, rice-wheat, and mixed cropping regions of Punjab. These statistics point to not only economic and health cost to society as a whole but also to the environmental impact on biodiversity and ecological systems. Further, industrial wastewater treatment plants in Punjab are not performing up to mark, resulting in pollution of aquatic ecosystems.

On one hand there is high level of water logging and salinity being reported, and on the other there is also acute water shortages being reported in Shahdadkot, Warah, Nasirabad, Sujawal Junejo and in other parts across upper Sindh, with protests being held to demand release of allocated water share in these areas where the paddy crop is being impacted by not only water shortage but escalating inflation impacting seed and fuel prices.

While there seems to be no dearth of policies and strategies to modernize agriculture, there is also a commitment by the state not to impose new taxes on agriculture, construction and real estate sectors. This is indeed highly discriminatory as the common man, the salaried class have been lashed again and again by high prices, especially the constant increase in fuel prices which accelerates prices for essential commodities. A joint venture of Chinese and Pakistani engineering companies constructing Mohmand Dam has challenged imposition of advance taxes on them; while corporations are capable of challenging imposition of income tax on them, the masses are faced with high energy bills which they have no recourse but to pay or lose access to electricity and gas, increasing transport and housing cost and inadequate food intake.

The corporate world continues to fleece small farmers. An inquiry committee of the Competition Commission of Pakistan (CCP) has found urea manufacturers guilty of price fixing and recommended proceedings against urea manufacturers and Fertiliser Manufacturers of Pakistan Advisory Council (FMPAC). Similarly, ginners are refusing to buy cotton from farmers based on prices mandated by the government.

According to the Pakistan Bureau of Statistics (PBS) Pakistan’s exports and imports have declined by 12.71 percent, and 31 percent, respectively from last year. There has been a decline in mango exports. According to the All Pakistan Fruit and Vegetable Exporters, Importers and Merchants Association (PFVA), the decrease in mango exports was a new SOP (standard operating procedure) requiring mandatory hot water treatment (HWT) of mangoes from approved plants only. This has resulted in closure of a vast majority of such plants, leading to further job loss among the plant workers.

With respect to seafood exports, Pakistan has achieved its highest mark of $496 million – however, the gains are also a manifestation of the devaluation of Pakistan rupee. The US continues to ban shrimp export because of non-compliance with Turtle Excluder Device (TED) regulations. The ban has lasted six years and has negatively impacted on the seafood industry. Similarly, the EU also has a partial ban on seafood exports from Pakistan. It is interesting that with so much emphasis on trade liberalization, the country continues to face restrictions on its trading commodities by first world nations using technical barriers to trade for protecting their markets, and the local produce of their own producers.

The government has decided to hand over the bulk and general cargo terminal at Karachi Port’s East Wharf to Abu Dhabi Ports through a government-to-government deal under the Inter-Governmental Commercial Transaction Act, 2022. It has been reported that the Karachi Port Trust has already handed over the control of container terminal to AD Ports of UAE for 50 years after negotiations for an upfront $50 million price for existing fixed infrastructure and a $102 million investment in five years for infrastructure development, $18 million royalty and an annual rent of PKR1, 100 per square metre ­— just PKR7 higher than for previous operators of container terminal. According to news reports, these prices were fixed without any independent assessment.

Not only Karachi port, but the operations of Islamabad International Airport have also been outsourced.  The Minister for Aviation Khawaja Saad Rafique has informed the National Assembly that Islamabad International Airport would be outsourced for 15 years within three to four months. According to Mr Rafique outsourcing will have no impact on employees, and the navigational services and runway operations will not be outsourced, with Civil Aviation Authority (CAA) continue providing its services. Islamabad outsourcing is said to be first, and Lahore and Karachi airports will be contracted, later. Further, the privatization of the national flag carrier – Pakistan International Airlines (PIA) is also on the books. It has been reported that the World Bank’s International Finance Corporation (IFC) is acting as the Financial Advisor for airports outsourcing.

According to reports, UAE, Qatar, Turkey, China and Kingdom of Saudi Arabia have expressed special interest in outsourcing of Islamabad, Karachi and Lahore airports. Sources claimed that Saudi Arabia’s Bin Laden group is making efforts to take on airports outsourcing while Qatar government has shown more interest in taking over the cargo sector of the airports.

At the same time, Planning Minister Ahsan Iqbal has stated that Pakistan has great advantage in low cost of labor, an element which attracted investment in Cambodia, Vietnam, and Laos. These statements were in context to the construction of Special Economic Zones under CPEC. According to the minister, Chinese companies intend to start business in Pakistan and had invested in the Gwadar Free Zone.

The government narrative on privatization schemes is that state-owned enterprises are ‘bleeding the economy’. The remedy is that since the Gulf countries are willing to invest in agriculture and modern machinery, public assets should handed over to investors. The government officials of a government which are to leave office in just a matter of weeks have basically put our ports, airports and food security in bondage, while selling ‘cheap labor’ as an advantage. Government officials enjoy free housing, electricity, transport, vehicle but have forced not only intense poverty, joblessness and hunger on the masses, but have also leasing country’s assets to meet a debt which was based on one hand, neo-colonial principals and reforms, and  on the other hand maintaining a corrupt elite power in the country. No doubt, these new developments do not speak well for the people’s rights especially farmers rights as a number of draconian laws were passed in quick succession just before Interim government took over the running of the country.

The situation of the people, whether in urban or rural settings is deplorable. A marker could also be the Economist Intelligence Unit’s (EIU) Global Livability Index 2023. EIU has ranked Karachi 169th out of a total of 173 cities, among the top five ‘least livable’ urban centers in the world. The index focuses on the post-Covid recovery of cities across the world, and rates living conditions based on five categories — stability, healthcare, culture and environment, education, and infrastructure. Similar issues are reported for Lahore. According to a WHO report, air pollution much above stated limits have resulted in the loss of 5.3 and 4.8 years of life expectancy from 1998-2016 among populations of Lahore and Faisalabad cities, respectively.

Pakistan is ranked third among the top 10 countries with the largest number of maternal deaths, neonatal mortality and stillbirths in 2020. The remedies provided by our government are quite abysmal; for instance, the government of Sindh has announced the issuance of free-of-cost health cards up to PKR 0.5 million for low-income people. It should be noted that the health and environment conditions of the Sindh, especially Karachi leads to oft-happening mishaps – the latest has been outbreak of gastroenteritis in Malir, Karachi. Water shortage, polluted water supply, as well as rising temperatures due to climate change exacerbate environmental and health issues.

The Green Climate Fund (GCF) has announced $66 million in funding to support the government of Pakistan’s efforts to reduce the twin climate impacts of flooding and drought. The seven-year project titled Recharge Pakistan: Building Pakistan’s Resilience to Climate Change through Ecosystem-Based Adaptation for Integrated Flood Risk Management is the largest investment at the national level to date in an ecosystem-based approach to flood and water resources management. The investment is meant to improve the ‘resilience’ of some of the country’s most vulnerable communities affected by climate change, including catastrophic flooding.

Quite interestingly, in addition to the GCF funding, the project is supported through a collective $12 million investment and technical support from the US Agency for International Development (USAID), Coca-Cola Foundation and WWF-Pakistan.

Given that the partners include a notorious multinational corporation that is responsible for spreading plastic pollution, supported by the most imperialist G-7 state, the project can hardly be considered promising; the greed for profits and markets remain the ultimate aim of the corporate sector and cannot be trusted to yield any benefit to the people.

One needs to also look at the intense carbon footprint left by one of the biggest corporate sectors, the global shipping network. Both the maritime and aviation sector have remained out of the Paris Agreement in terms of cutting down carbon emissions. To make matters worse, militaries account for 5.5 per cent of global greenhouse gas emissions, and they are not bound by international climate agreements.

So, while the UN chief Antonio Guterres has stated “The era of global warming has ended; the era of global boiling has arrived,” the corporate sector and military might of imperialist countries continue to inflict havoc on the planet. This is much in evidence not only in Pakistan but across Asia, as well as Europe and other parts of the globe.

The people across the country have been protesting against the various atrocities faced by them through embedded structures of injustice and inequality, imposed by the dual character of a semi-colonial, semi-feudal society.

The high prices of energy, as well as inadequate services supplied through a very hard summer, made unbearable through the climate crisis, resulted in many protests across the nation, from Peshawar to Karachi. In Lyari, Karachi people’s protest was met with police using tear gas and baton charge. The high inflation, rising prices and further infliction of taxes was another reason for people to take to the streets, including salaried working class who came with a banner “Save the Salaried Class.” Protests were also held by cotton farmers who were not being paid their due as set by the government.

In Balochistan, the Balochistan National Party (BNP-Mengal) carried out a province-wide strike against the worsening law and order situation in particular areas of Khuzdar district. Another protest in Balochistan was organized by relatives of missing persons, and traffic remained suspended on N-25 highway between two cities Quetta and Karachi

A rally was organized by the Karachi Bachao Tehreek comprised thousands of demolition affectees (including women, children, the elderly and the disabled,) who had been forcibly evicted from their quarters next to various sewage lines. Their demands included immediate resettlement and rehabilitation.

Various group of government employees also protested in various parts of the country for either non-payment of their salaries or demanding increase in salaries.

It is clear that the impact of neoliberalism is being felt deeply by the people from various walks of life, of course the working class and peasantry bearing the deepest impact. As the abject neglect of the people rises, the flaunting of elite culture is playing out in mass riots and protests. The ultimate result of vastly exploitative and oppressive policies does not bode well for the people or the planet.

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