Our Food Systems – Roots For Equity https://rootsforequity.org Mobilizing Communities for an Equitable World Tue, 29 Oct 2024 07:23:36 +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 Our Food Systems – 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)

]]>
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

]]>
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.

]]>
Point to Ponder October 2023! https://rootsforequity.org/?p=1592 Wed, 07 Feb 2024 04:59:54 +0000 https://rootsforequity.org/?p=1592 Agriculture is a complex system in which natural resources, whether they be land, seed or water, play a critical role in socio-economic and political scenarios. For a water scarce country like Pakistan, the dilemma is now increasing. This critical issue was highlighted with an emphasis on promoting drip irrigation system at the “Food-Water Nexus: Connecting Dots,” hosted by the Sindh Agriculture University (SAU) in collaboration with other institutes; this matter has been raised at other fora as well. Pakistan stands at 14 out of 17 extremely high-water risk countries, remaining on the list of ten-most water-stressed countries and if the depletion of water resources continues, it will face severe water scarcity by 2025. The demand for water is 274 MAF, whereas, the supply is about 191 MAF. Around 94 percent of the groundwater is used in the agriculture sector while 80 percent of the water is consumed by mainly four crops, rice, cotton, sugarcane, and wheat. These crops contribute only 5% to the GDP. Currently, there is 15 percent water shortage during the ongoing Rabi season that began on October 1.

A politician, Mr. Altaf Shakoor of, Pakistan Democratic Party, has asked the Special Investment Facilitation Council (SIFC) to focus on the issue of saline water irrigation in Thar and other desert areas where salt water lakes are present and can turn our deserts into grain baskets. According to him, many countries in the world successfully use saline water to grow crops with salt-tolerant seed varieties; Pakistan’s wheat research institute had also produced salt-tolerant wheat seed but has not been pursued further.

The caretaker government in Sindh has directed the provincial Forest and Wildlife Departments to start GIS (Geographic Information System) mapping of Kirthar National Park land, cancel illegal allotments and retrieve illegally occupied forest land. According to the Secretary of Forest and Wildlife Department, Najam Shah, the province had 3.4 million acres of forest land. Out of 232,205.7 acres of encroached forest land, 191,175.2 acres have been retrieved, with 41,030.5 acres were still encroached. In addition, 34,713.05 acres of forest land were illegally allotted, of which 21,274.56 acres have been cancelled.

Based on a land record digitization project, the Sindh government has initiated the digitization of land records of the entire province. Sindh Government has set a target of online facilitation and mobile application for the improvement of revenue records and getting information online. According to the Minister of Revenue, Industries & Commerce Mohammad Younus Dagha, about 580 officials from provincial finance and revenue departments have been transferred during the current caretaker government to ensure transparency within the system.

According to reports, Pakistan’s fundamental concern is only management, not resources. There is immense scope for value addition in the fields of human resource, agriculture and mining. These three sectors, if properly utilized and managed at least for 10 years, will have the potential to steer the country out of the economic quagmire.

Land ownership remains a critical aspect of agrarian society; six people were killed and five wounded in a fierce gun battle between armed men of two rival groups of Kalhoro and Junejo clans in Shikarpur district. Since the start of the dispute over a piece of agricultural land, more than 40 persons have lost their lives in clashes between the two groups.

Neoliberalism at Play!

On the behest of the World Bank, the caretaker government is considering amendments to taxation regime for retail, agriculture and real estate sectors. Imposition of wealth tax on moveable assets is also being proposed, which would allow generation of additional revenue up to four per cent of GDP (approximately PKR4 trillion) in the short term.

According to a senior economist Tobias Haque, real estate and agriculture should yield a revenue of 2 percent and 1 percent, respectively, of the GDP which would be equivalent to about PKR 2.1 trillion and PKR 1 trillion, respectively, according to official GDP size. This should be done immediately to “reduce or refine the current 12.5-acre tax exemption threshold to bring more agriculture land into the tax net,” and ensure appropriate categorization of land on the basis of size, location, irrigation status and area-based productivity aspects into tax rates. Pakistan’s total revenue collection averaged 12.8 percent of GDP in the past decade, is substantially lower than the South Asian average of 19.2 percent.

The Focus on Agrochemical Agriculture and Genetically Modified Seeds

Under the caretaker government, the Ministry of Planning and Development has put agriculture development projects at top priority; it has allocated billions of rupees under the Public Sector Development Program (PSDP) 2023-24, as they are deemed to have a ‘huge potential’. In this context, the agriculture sector is a top priority for the Special Investment Facilitation Council (SIFC), as well.

The Planning Commission has decided to focus their energies on cage culture cluster development project; commercialization of potato tissue culture technology; establishment of consumer-sourcing seed authenticity system and strengthening of laboratories of Federal Seed Certification and Research and Development, among others. Besides, the Prime Minister’s Initiatives for Green Revolution project worth PKR 5000 million is also a landmark project initiated to address key constraints to productivity of agriculture.

It is felt that Pakistan’s food product exports face a hurdle based on international standards; in this context projects are being initiated to address issues faced in sector for fruits and vegetables. The aim is to reduce on-field and post-harvest losses of selected fruits and vegetables, and strengthen their value chains based on using value-adding technologies through public-private partnerships.

The Ministry of Industries and Production presented strategies to fulfil urea requirements for the 2023-24 Rabi season; the Economic Coordination Committee (ECC) has sanctioned the immediate import of 200,000 tons of urea fertilizer. The committee also mandated a continuous gas supply for the fertilizer industry.

In addition, the Variety Evaluation Committee of Pakistan Agricultural Research Council (PARC) has recommended 10 new high yielding genotypes of oilseed crops and two of sugarcane for commercial cultivation in the country. At present, there is a large gap of 66 percent between supply and demand of certified seeds in the country. In addition, there is a huge burden on foreign currency, as Pakistan imported edible oil, mostly palm oil, worth US$4.5 billion in 2022.

As has been done in the previous years,  Punjab government has decided to promote oil seed cultivation in the province by offering subsidy to farmers in a bid to cut the country’s edible oil imports bill, and improve their income by encouraging cultivation of non-conventional crops; the provincial agriculture department will offer PKR 5,000 per acre subsidy for a total 100,000 acres to be brought under imported canola hybrid variety cultivation in the Rabi season, sowing for which will begin within days. A farmer may claim the subsidy for a maximum of five acres.

A meeting at the Ministry of National Food Security and Research has focused on the seed sector. Consultations were on streamlining the seed sector by using advanced genomic technologies as well as of IT systems for transparency. The presence of International Food Policy Research Institute (IFPRI) is evidence that international actors, lodged in the United States (US) are also intervening in the seed policy setting arena. The country head of IFPRI, Pakistan, presented salient features of a report titled, ‘National Seed Sector: Prospects and Challenges.’ The report points out that the national breeders` intellectual property rights are being pirated. The meeting also discussed the issues related to biotech seeds and resolved to settle this in compliance with national and international rules.

According to James McNee, First Secretary, Canadian Embassy in Pakistan, Canada has been exporting grains, canola, and other agricultural products to Pakistan. But for him a handicap is the need for modifying legislation on GMOs to transform its existing agricultural production. He pointed out that grain institutes in Canada and Punjab province have joined hands to further study the GMOs that are being raised in Canada for their suitability to the soil of this region.

Genetically modified seeds, in the context of poultry feed is also being pushed. Increased retail chicken prices are being attributed to the ban on the import of soybean a key ingredient of poultry feed. Last year, there had been a ban imposed on GM soyabean mainly produced by United States, Brazil and Argentina, a key content of the poultry seed. According to Mr. Tariq Cheema, formerly federal minister for national food security and research, Shehbaz Sharif government, “the poultry industry is acting like a `mafia` to force the authorities to allow the use of a “known carcinogenic ingredient. They`re playing with the lives of people. GM soybean causes cancer.”

Apart from promoting hybrid and GM seeds, neoliberal policies based on market digitalization are also being promoted for agricultural marketing. The Market Committees Management Information System was officially launched in Lahore. Caretaker Agriculture Minister SM Tanvir launched the system; the digitalization of this system would improve tax collection processes & maintain accurate records of market activities while reducing instances of black marketing. The digitalization process is already in process through the use of Kisan Card; farmers that register themselves are able to ‘benefit’ from various government schemes like subsidies, loans, insurance among other.

In addition, the Asian Development Bank (ADB) is launching a new project to promote modern trends and mechanization in agriculture in various member countries including Pakistan. In addition, the Sindh Water and Agriculture Transformation (SWAT) project of the World Bank is already ongoing; the project is meant to increase agricultural productivity by introducing modern techniques.

 A focus on the fisheries industry is also quite clear. According to an expert on fisheries sector of KP, GB and AJ&K, Omar Hayat Khan, the abundance of suitable water in quality and quantity in the shape of springs, streams, rivers and lakes provides opportunity for production of trout fish in millions of metric tons per annum, as well yield job creation. However, it needs translation into a formal ‘billion-dollar industry.’

Similarly, an expected US delegation to review the installation of turtle excluder devices (TEDs) in shrimp-catching nets has led to various stakeholders (fisheries departments, and others) to address this issue that has been present for many years. Pakistan’s shrimp exports to the US has been banned since 2017 because fishermen were not using the TED in their nets, endangering turtles. It is speculated that Pakistan has missed out $150 million in annual exports to the US.

While pushing for trade liberalization at home, similar trends are also seen for the export sector; the Pakistan’s Ambassador in China, Moinul Haque inaugurated the Pakistan National Pavilion at the Sichuan Agriculture Expo in Chengdu, where numerous Pakistani companies were promoting country’s agricultural products.

UNICEF has reported, more than 1.5 million children require lifesaving nutrition interventions. In Pakistan, the 2022 floods inflicted vast damage to the infrastructure, including 30,000 schools, 2,000 health facilities, and 4,300 water systems making access to safe drinking water and sanitation low. Further, according to the Integrated Food Security Phase Classification (IPC) about 2.14 million children are suffering acute malnutrition in various parts of Pakistan. Malnutrition has been attributed to number of issues including inadequate food quality and quantity, heightened food insecurity, insufficient sanitation coverage, elevated rates of diarrhea, acute respiratory infections (ARIs) and fever, as well as suboptimal health-seeking behavior. In response, projects co-funded by the European Union (EU), as well as International Rescue Committee (IRC), Medical Emergency Resilience Foundation (MERF) and others is providing therapeutic food and other services in various areas of the country.

Hunger and malnutrition as well as climate change has been used to promote not only biofortified therapeutic foods in the country but also for crop biofortification. It is being said that climate change-related unexpected temperature variability and extreme weather events lower agricultural yields and in reduction of nutritional value of staple crops in Pakistan; the panacea is switching to biofortified crops to deal with growing malnutrition in the country. Farmers, are being ‘convinced’ to switch to biofortified crops such as zinc wheat, which are more nutritious having adequate amounts of Zinc, Iron and other micronutrients. In this policy option, there is no mention of the added burden to Pakistan’s ‘starved foreign reserves.’

It is interesting that there is news about a survey on milk quality and safety conducted by the University of Veterinary and Animal Sciences (UVAS) informs that 54 percent of fresh milk samples were unsuitable for human consumption, and 92 percent did not comply with quality and safety standards. Institutions that support neoliberalism, hold a position where fresh milk should be corporate-controlled; issues of safety and hygiene are being propagated as a shield for transferring the dairy market from small and landless farmers to global dairy corporations. The basic neoliberal law that is being used to push this framework is lodged in the WTO agreements of Sanitary and Phytosanitary (SPS) mechanisms and Technical Barriers to Trade (TBT), and of course indirectly Trade-related Aspects of Intellectual Property Rights (TRIPs) agreement.

It is worth noting that Nestlé Pakistan recorded revenue of PKR 151,153 million for the third quarter of 2023, an increase of 24.9 percent as compared to the same period last year. According to Nestle, this growth is based on the wide spectrum of their products as well as ‘demand generating activities’ of the corporation as well as emphasis on localization of raw and packaging material has led to an improvement in operating profit. It’s worth reminding our readers that Nestle products include dairy products, juices and water: a majority based on local agriculture production. How many of these billions of rupees in profits actually benefit the real producers and how much is taken out of the country?

State’s Agriculture Growth Projections, and Contestants

There are predictions that the country will attain its agricultural growth target of 3.5 percent for 2023-24; the agriculture sector contributes 22.9 percent to GDP and 37.4 percent in employment generation, ensures food security and provides raw material to the industrial sector. Official projections for increase in cotton production was 126.6 percent over last year; rice to show an increase of 12.7 percent and 18 percent in area and production, respectively, over last year. For livestock, the share in agriculture sector is likely to increase by 64 percent.

Sindh Chamber of Agriculture (SCA) has raised concerns with respect to ‘cartelization’ of Sindh rice millers, who are not paying a ‘just price to paddy growers for their produce’ who based on moisture presence in paddy crops are already being paid less than offered rates. According to the SCA senior vice president Nabi Bux Sathio, last year Pakistan had exported 3.8 million tons of rice and earned $2.28 billion in foreign exchange; exporters fetched $600 per ton of coarse variety rice at the highest possible rate at the end of the export season. Out of these 3.8 million tons, 2.5 million tons were a coarse variety of rice to which Sindh contributed about 85 percent share. Sindh Abadgar Ittehad (SAI) has also pointed to ‘cartelization’ of Sindh rice millers and has appealed to the caretaker prime minister to intervene; the rice millers had offered PKR 4,500 per 40kg to farmers before harvesting but later “. . . due to the cartelization of millers and a nexus between them and rice exporters, the rate of paddy plummeted to PKR 3,200 to PKR 3,000 per 40kg”.

SAI has rejected the idea of corporate farming, called for fixing sugarcane rate at PKR 600 per 40kg. The government was planning corporate farming and had initiated project in the Cholistan area of Punjab where vast lands were given to another country while machinery was to be provided by China.

The Federal Committee on Agriculture (FCA) has fixed the wheat production target at 32.12 million tons for rabi season 2023-24, an increase of 12.20 per cent over last year’s 28.2m tons. The production target would be achieved from 8.9 million hectares.

However, agriculture experts have called for increasing per acre yield productivity, given the ambitious wheat production target of over 33 million tons expected for the 2023-24 season. The emphasis seems to be on vertical growth by enhancing per acre yield.

October is the month for the International Day of Rural Women, as well as the World Food Day. Therefore, this month is marked by many peasant rights activities and actions. According to the Hari Welfare Association (HWA), it is deeply concerned by the failure of federal and provincial governments to safeguard the rights of rural women in Pakistan.  The Sindh Women Agriculture Workers Act (SWAWA) though passed in 2019, which categorically recognizes women agriculture workers, remains unimplemented in Sindh.

In rural Sindh, more than 70% of women are employed in agriculture, but often lack access to education through different structural barriers such as patriarchy and feudal tribal systems. Low literacy rate contribute to the heightened abuse and women rights violations, and suffer from poverty, malnutrition and hunger.

A report by HWA, “the State of Peasants’ Rights in Sindh in 2022” was launched at the HWA office, Nawab Shah. The report reviews the legislative, policy, and administrative frameworks in place and highlights the challenges faced by peasants and rural workers. And highlights the need for enforcement of laws such as the Sindh Tenancy Act 1950, the Sindh Tenancy Amendment Act 2013, the Sindh Bonded Labor (Abolition) System Act 2015, and the Sindh Industrial Relations Act 2013.

The World Food Day was commemorated as the ‘World Hunger Day’ by an alliance of small and landless farmers, Pakistan Kissan Mazdoor Tehreek (PKMT) in collaboration with the Asian Peasant Coalition, in Ghotki, Sindh. Recent reports by UNICEF and World Banks have stated that 333 million children (one in every six children) worldwide live in extreme poverty including 62 million children in South Asia. The World Food Program estimates that 345 million people worldwide suffer from severe hunger; these figures show the aptness of PKMT, and APC call which points out the true state of affairs. 

The Pakistan Bureau of Statistics has provided data according to which Pakistan’s trade deficit narrowed by 42.25 percent in the first quarter (July-September) of the current fiscal year 2023-24; exports decreased by 3.78 percent to $6.899 billion in this period whereas, imports declined by 25.36 per cent to $12.188 billion during the first quarter of fiscal year 2023-24.

In the first quarter of the financial year of 2023-2024, exports of agriculture and food products from Pakistan increased by 37.4 percent as compared to the same period during 2022-2023. Major increases were in export of Sesame seed, meat, fruits and vegetables, fish and fish products.

Based on data from Pakistan Customs, the Afghan transit cargo flow of containers have shown a 39 percent increase in the past year. According to the commerce secretary, Afghan exports are approximately worth $1 billion, but imports had risen to $6 billion in FY23. With fears of illegal entry of goods in Pakistan through this transit trade, a ten percent processing fee has been levied on items imported under the Afghan Transit Trade Agreement.

Ambassador of Turkiye would like to see a bilateral trade volume between Pakistan and Turkiye to reach USD 20-25 billion, and the Federation of Pakistan Chamber of Commerce and Industries (FPCCI) have suggested exploring new avenues to export to Turkiye, which would also include industrial collaborations and transfer of technology. The Iranian Ambassador to Pakistan has suggested that the long Pakistan-Iran border could be turned into an economic border, while both countries could trade in Chinese Yuan. Pakistan could export live animals, meat, wheat and rice while Pakistan could import from Iran fuel, building materials and food products. According to the Iranian Ambassador, CPEC was an important project for both countries, and Iran could provide energy to Pakistan for CPEC projects at economical terms.

The European Parliament has extended the current generalized system of preferences (GSP) for another four years until 2027 for developing countries, including Pak­istan, to enjoy duty-free or minimum duty on exports to the European market. However, according to analysts, the long-term future for exporting goods to the EU will be based on the type of electricity used for manufacturing. These measures are being taken under Carbon Border Adjustment Mechanism (CBAM), a new set of trade rules for imposing taxes on imports from non-EU members. Starting now, businesses in EU have to provide information on ‘carbon emission-intensive’ aspects of imported products, and this could make Pakistani export products more expensive in the European markets.

Cnergyico, formerly known as Byco Petroleum Pakistan Limited (BPPL), has imported the country’s first private-sector shipment of Russian crude oil. Russia is offering discounted rates after its exports were banned in Europe.

Increase in gas tariff for the ongoing fiscal year have been approved by Economic Coordination Committee (ECC) of the Cabinet, along with import of 200,000 metric tons of urea for the Rabi season. Further, import of one million ton of milling wheat through Trading Corporation of Pakistan (TCP) has also been approved.

According to the State Bank of Pakistan, the federal government’s total debt (domestic and external) stocks reached PKR 64 trillion by August 2023, mainly due to exchange rate volatility

The economy continues to be based on foreign loans. According to the “World Bank Annual Report 2023: A New Era in Development,” in fiscal year 2023, Pakistan was International Development Association’s (IDA) top borrower, securing $2.3 billion in funding. The Economic Affairs Division (EAD) has reported that Pakistan`s foreign assistance inflows rose by about 58 per cent in the first quarter of the current fiscal year.

The World Bank has projected positive growth return for Pakistan in fiscal year 2023-24, but at a rate of only 1.7 per cent, while the economy remains dependent on capital inflows to finance substantial fiscal and current account deficits. On the other hand, the IMF’s latest growth forecast is well above the recent forecasts from the World Bank and ADB.

While the flow of loans comes in freely, the conditionalities are also there. The care taker Privatization Minister Fawad Hassan has affirmed the government’s decision to divest major loss-making state-owned enterprises, so as to get rid of the drain on resources. He has held meetings with World Bank officials for divestment of PIA and other state-owned entities for optimizing the performance of ex-Wapda Discos, a process in which the World Bank has agreed to provide help. In addition, the caretaker government has decided to privatize Pakistan Steel Mills (PSM) on Government to Government (G2G) basis, as Privatization Commission has failed to finalize restructuring plan in eight years. The World Bank has critiqued this form of privatization, based on fears of litigation in divestments to foreign states under government-to-government contracts, and advised public offerings through stock exchanges followed by privatization under transparent oversight of the parliament. Quite interesting that the French Ambassador to Pakistan has expressed interest in gaining insights into Pakistan’s privatization strategy on which he was then briefed by the Privatization Minister, Mr. Fawad Hassan. It’s worth pointing out, that all this is happening under a caretaker government.

According to a preliminary research, global carbon dioxide emissions are expected to rise around one per cent to reach a new all-time high in 2023. Scientists say carbon pollution will need to be cut almost in half this decade to meet the world’s targets of limiting global warming and avoiding catastrophic climate impacts.

The ongoing climate crisis, which of course is based on the carbon emissions of industrialized rich countries, finds expression in the misery of the people in countries like Pakistan. According to the “World Bank Annual Report 2023: A New Era in Development,” South Asia is highly vulnerable to the impacts of climate change and natural disasters, and in the past 20 years, climate disasters have impacted 750 million people, which means more than 50 percent of the population. South Asia, which is one of the poorest regions in the world is suffering from intensifying heatwaves, cyclones, droughts and floods. The changing climate could sharply diminish living conditions for up to 800 million people.

According to the ‘State of Global Water Resources 2022 Report’ published by the World Meteorological Organization (WMO), over 50 percent of the global catchment areas exp­erienced deviations from normal river discharge conditions in 2022. From 2000 to 2018, the total glacier mass balance decreased by more than four percent.

Climate change has wrecked the hydrological cycle which is a result; extreme weather events, such as droughts and extreme rainfall events are taking a heavy toll on lives and livelihoods. At the same time, high temperatures lead to melting snow, ice and glaciers that result in intense floods as we have seen in Pakistan numerous times.

According to a report by FAO, a staggering $3.8 trillion loss in crop and livestock production has been reported over the past 30 years due to disasters. This equals an average annual loss of $123 billion, or five per cent of global agricultural GDP.  Average losses over 30 years have increased across all the main agricultural product groups, with an average of 69 million tons of cereals, 40 million tons of fruits and vegetables and 16m tons of meat, dairy products and eggs lost annually due to extreme events; a $3.8 trillion loss in crop and livestock production has been reported over these three decades.

Numerous projects have been floated by neoliberal institutions, however there seems to be reliance on the private sector. The IMF has asked the private sector to ‘drastically’ increase its climate-related investments in the poor countries. Will these projects than like it has happened over many decades, result in flow of funds from poor countries to rich, through intellectual property rights on shared technologies and knowledge sharing?

According to an Oxfam International report, world’s poorest countries face budget cuts topping $220 billion over the coming five years due to a debt crisis that has pushed dozens to the brink of default.

The conditions imposed by IMF have been having a diabolical impact on the working class and peasantry in the country. Inflation in the first quarter (July to September) surged to 29.04 percent in FY24 from 25.11 percent over the corresponding period of last year. State Bank of Pakistan has projected 20-22 percent average inflation for FY24 from 29.2 percent in FY23. Wheat flour prices saw a staggering rise of 81.29 percent while rice prices experienced a rise of 64.71 percent. The ongoing economic crises have multiple impacts on the people. A truly tragic incidence was the killing of a person by three others, when he failed to return a loan of PKR 50,000.

As part of resisting the ongoing false solutions provided by industrialized countries for climate change, a Global People’s Caravan was organized from many countries including Pakistan. In Shikarpur, Sindh, PKMT held a People’s Caravan highlighting the plight of the peasantry, especially women in face of the ongoing climate as well economic crisis.

It was reported that “the caravans will build up to the 28th session of the Conference of the Parties (COP28) of the UN Climate Change Conference happening in Dubai, the United Arab Emirates (UAE), from Nov 30 to Dec 12. Similar caravans or actions in various countries in Asia, Africa, Latin America and other regions are planned throughout October-November 2023. . . . They are holding to account imperialism – the global empire of the wealthiest countries’ finance oligarchs and their monopoly corporations.”

Other sectors of society, such as students of Sindh University held a rally against student fee increase, ban on student unions, and other issues. It was noted that in just a period of seven months, the university implemented fee hikes by 45 percent. Urban and rural communities in Karachi and Peshawar have been carrying out sit-ins against the long hours of power outage and other injustices related to energy supply.

In Tangwani town, Kandhkot-Kashmore, a large number of paddy growers, along with their children, took out a rally against rice millers and traders for refusing to offer more than 50 per cent of the agreed upon price of their crop without any valid reason. Similarly, rice farmers of Garhi Khairo, Jacobabad staged a protest sit-in against paddy price being offered to them by traders. According to them, the government of Sindh had fixed paddy price at PKR 4,500 per 40kg but the traders were only paying PKR 2200-2300 per 40kg.

Farmers associations in Balochistan also protested against WAPDA, due to long hours of unannounced power shortage which had resulted in destroying livelihood of farms, as destruction of agriculture produce has left them unable to repay loans taken from commercial banks. Other farmer movements have also protested demanding international financial institutions should write-off loans of countries like Pakistan, that also suffer from climate crisis. Similarly, the salaried class has also been protesting against the World Bank proposal of inflicting further taxes on this class.

A shutter down strike was carried out in Gwadar over shortage of drinking water. Please note, Balochistan home and tribal affairs department has banned the blocking of main avenues and highways in Red Zone across the province under Section 144 of the Criminal Procedure Code. In Khairpur, the Khairpur police registered an FIR against 16 reporters along with around 100 people, who were holding a protest in Hingorja against a lesser rate than the officially fixed price of cotton.

In Sukkur, irrigation department employees have been agitating with slogans ‘Eliminate corruption and save irrigation,’ so as to ‘cleanse the department of the menace that had hollowed out one of the oldest institutions of the province.’ In the geo-political arena, there have been many developments in this month which will change the course of human history in the context of understanding genuine democracy and human rights. October 7, 2023 will be remembered for years to come. After many decades of atrocities by Zionist Israel, the Palestinian Resistance hit back; this feat looms large over all nations, whether they have stood up against the US-backed Zionist entity of Israel, or those who have supported this fascist formation.

]]>
Point to Ponder September 2023! https://rootsforequity.org/?p=1560 Wed, 13 Dec 2023 07:11:03 +0000 https://rootsforequity.org/?p=1560 The country’s economy is based on agricultural production. In Pakistan, out of 79.61 million hectares about 23.70 million hectares are under cultivation, of which a majority of situated in the Punjab and Sindh provinces. According to Professor Dr Ismail Kumbhar, Agriculture of Sindh Agriculture University, agriculture contributes about 19.5 per cent to the national gross domestic product (GDP) while providing employment to 40 percent of the country’s labor force. It also provides food to 220 million people and a very large livestock herd, along with providing raw materials to large agro-based industries. About 65 percent of the population lives in rural areas and derives their livelihood from agriculture.

However, peasanty the bedrock of our economy, continues to face exploitation and ensuing poverty. The Sindh Abadgar Ittehad (SAI) has raised this issue along with continued impact of high prices for agricultural input and black-marketing. Even numerous laws that have been enacted in Sindh to safeguard the small and landless farmers, including women agricultural workers have not been able to protect them from the wrath of the feudal landlords, or bring any relief to the frontline producers in the province.

Along with remaining highly vulnerable to climate change, the economic indicters continued to be abysmal: fuel prices, inflation, Consumer Price and Sensitive Price Indices all continued to rise in this month. Pakistan Mazdoor Kisan Tehreek, an alliance of small and landless farmers has protested against the high fuel prices; there have been strikes against general sales tax as well as it continues to create intense strain on daily living for landless farmers as well as industrial workers leaving them no recourse but to come out on the streets and set up hunger camps. Tobacco farmers have been standing up against foreign cigarette manufacturing corporations for non-compensation of the tobacco rates settled with them. Similarly, the Haq Do Tehreek has been protesting, to the extent of hinting at ‘armed struggle,’ against trawlers that operate in the Balochistan waters, leading to loss in livelihood for local fishermen.

Apart from the continued exploitation pointed above, there are other issues at stake. About 25,000 fertilizer bags were seized from a goods train in Mirpukhas, Sindh. It’s believed that local fertilizer dealers were involved who wanted the fertilizer bags to be sold to landlords and farmers at higher rates than at the controlled prices. In Khairpur, police has arrested a food official for putting on fire the remaining 30,000 bags of 200,000 wheat sacks that had been pilfered and hidden at various government warehouses.

It is being reported that apart from increasing water tax, the federal government has hinted at revising tax on retail, agriculture and real estate. Though, there is absolutely no doubt that big landlords must be taxed but for the small farmers, and sharecroppers, additional taxes will push them further into debt, hunger and poverty.

The Sindh Chamber of Agriculture (SCA) has rejected the decision taken by the Rice Exporters Association of Pakistan (REAP) on weight deduction in transactions involving rice crop. The deduction is applied on the grounds of moisture in the rice and the percentage of broken grain. The decision allows exporters or buyers one-kilo deduction for 15 to 15.5 per cent moisture and two kilos for 15.5 to 16 per cent moisture. It is clear that though that the SCA is there to protect the interests of the rich farmers, who is there to protect the small farmers from policies which are made for the politically powerful and affluent class of the rural economy?

It may be worth noting that according to the World Bank, Pakistan’s current economic development model is no longer reducing poverty and provides few benefits to most citizens, as poverty increased from 34.2 percent in the fiscal year 2022 to 39.4 percent in the (current) fiscal year –pushing 12.5 million people below the poverty line.

The newly formed Special Investment Facilitation Council (SIFC) under the leadership of senior army officers has become quite active; army personnel have provided detailed information on the scope and investment potential in agriculture and livestock, mines and minerals, and information technology sectors. A number of initiatives seem to be on the table: the SIFC has directed the Ministry of Water Resources to collaborate with the Ministry of Planning, Development and Special Initiatives to develop a five-year plan on water resource development with financing plan for agriculture sector. According to the SIFC, the recently inaugurated Green Pakistan Initiative’s focus is on ‘large scale farming (that could be another name for corporate farming) in Bahawalpur, using irrigation pivot system which is on one hand is an efficient irrigation system saving water usage and on the other is also not labor intensive. It is believed that the new technology will result in a Green Cholistan. This initiative will provide ‘One Stop’ facilities for seeds, machinery, indigenous development of pivot system, as well as modernization in farming techniques. The impediment to the seed industry is the presence of large number of seed companies operating in Pakistan. Four Brothers, a seed corporation in Pakistan is advocating providing land to multinational seed corporations (without rent or charges) so that they could develop seeds according to Pakistan’s climate.

The executive committee of SIFC was informed that presently, Kingdom of Saudi Arabia (SKA) imports 1%, UAE imports 3% and China 2% of food items from Pakistan. These low volumes can be enhanced manifolds. It would, however, require efficiently managed flood water and excess rain water. Waste lands all over the country have to be converted green. Collaboration with a Spanish company has commenced in the irrigation sector. Further, improvement in livestock shrimp farming in saline water, and cage farming could bring improved dividends and create 3 million employment opportunities for small farmers, leading to enhanced exports.

A major thrust is to attract foreign investment in the country, with emphasis on privatization policy implementation. It’s reported that Saudi Arabia will invest about $25 billion in Pakistan over the next two to five years in various sectors, which would be the highest investment in the country by the Kingdom, if it comes through. Barrick Gold Corp, which had in the past year filed a case against Pakistan through the Investor-State Dispute Settlement (ISDS) mechanism in context to Reko Diq gold and copper mines, has stated that it was open to partnering with Saudi Arabia’s wealth fund; however some (unmentioned) hurdles have been pointed out by Saudi Arabia that need to be tackled first.

Pakistan and USA had earlier launched a five-year project named the Investment Promotion Activity (IPA) to be implemented by USAID. IPA aims to strengthen Pakistan’s business environment, build the capacity of institutions focused on investment promotion, attract FDI, and increase US-Pakistan bilateral trade and investment, and in general reduce barriers to investment and trade by improving Pakistan’s investment promotion capabilities. The USAID is facilitating $40 million in US-Pakistani diaspora investment that include four diaspora partners including funds from SERVINZ, Pakfoods LLC Group, Jaxeri Investment Corporation, as well as Global Semiconductors Group.

Not to be left behind, the International Finance Corporation (IFC), a commercial arm of the World Bank Group, announced that it would double its investments in Pakistan to $1.5 billion during the current fiscal year. In FY23, the IFC committed a record $43.7bn to private companies and financial institutions in developing countries, leveraging the power of the private sector to supposedly end extreme poverty and boost shared prosperity.

There is no dearth of propagation of modern technology for the agriculture sector. Preparations are underway for the International Livestock Agri-Fisheries Expo in Peshawar, which will be KP’s largest dairy, livestock, agriculture and fisheries exhibition. Pakistan has also organized a mango festival in Kuala Lumpur seeking new markets. The $3 trillion international halal market is also being hyped for potential exports.

While there are continuous efforts to increase production and production capacity, we face serious water scarcity in the country. With our water resources rapidly depleting, wastage of this precious resource is posing serious challenges by pushing us towards water-scarce status from the existing water-stressed nation status. Our present per capita water availability has declined below 1000 cubic meter from 5600 cubic meter in 1950s with fewer reservoirs constructed since Pakistan’s inception. A major chunk of water resources continue to flow to the Arabian Sea and a vast quantity is wasted due to an obsolete irrigation system. The Sindh Irrigation and Drainage Authority (SIDA) chairman, Kabool Khatian has urged to revise abiyana (water charges) to meet expenses for irrigation infrastructure. The corporate sector, like Nestle, is also active in water irrigation system, introducing projects such as drip irrigation and installing smart soil moisture sensors that would decrease water usage. At the same time, Dr Muhammad Ismail Kumbhar, an expert in rural development and agriculture pointed out that 85 percent of the groundwater is not fit for human consumption due to the extensive use of pesticides and fertilizers. Not only water, but also soil fertility is also affected, while cotton-pickers and vegetable-pickers and farmers in general suffer from various cancer, skin and liver diseases.

According to a study published in the journal BMJ Oncology, globally, the number of people under 50 years of age, diagnosed with cancer has surged worldwide in the last three decades though, reasons are not fully clear. The study points to the fact that cases of cancer among people aged 14 to 49 rose by nearly 80 percent, from 1.82 million to 3.26 million, between 1990 to 2019.

Climate crisis continues to have its impact felt. Even though this year there is an increase in cotton production, sudden increase in temperature has resulted in whitefly attack on the cotton crop in Rahimyar Khan; drones have been used to provide high pressure cluster spray.

According to a research study from Schroders and Cornell University, extreme heat and flooding could erase $65 billion in apparel export earnings from four Asian countries by 2030, as workers struggle under high temperatures and factories closure due to flooding; four countries studied — Bangladesh, Cambodia, Pakistan and Vietnam — would be impacted. The overall fall in productivity would lead to a $65 billion shortfall in projected earnings between 2025 and 2030 – equivalent to a 22 percent decline – and 950,000 fewer jobs being created.

Even with much evidence on the destruction and toxication of soil and water sources as well as climate crisis, there continues to be a push for agro-chemical farming. According to a senior official, Punjab Agriculture Department, at least 1.2 million certified wheat seed bags, each weighing 50kg, will be provided to the farmers at subsidized rate of PKR 1,500/bag. In addition, one million packs of weedicide at subsidized rates of PKR 500/pack will also be provided so as to minimize the risk of importing wheat grains later.

All of the above endeavors have to be examined in the context of not only productivity which is meant for increasing exports to pay off the IMF debt, but the impact on biodiversity, long term soil fertility, and of course nutrition and health of our people. Agro-chemical farming has been proved to be highly toxic to all living being on Earth as well as to ecosystems. At the same time, this mode of production pushes for adoption of modern technology which of course has to be imported, it is also capital extensive and hence we lose not only foreign exchange but also exacerbate joblessness in the country.

It also needs to be mentioned that a major source of foreign exchange earnings are from our migrant labor across the world. According to the Italian Ambassador to Pakistan, Andreas Ferrarese, remittances from Pakistanis living in Italy have increased to €1 billion, and according to the Malaysian High Commissioner, Mohammad Azhar Bin Mazlan more than 50,000 Pakistanis are working in Malaysia. However, there is hardly any information on their well-being, or policies to facilitate migrant workers or/and their families that provide such needed economic help through their remittances. It also points to a faultline in Pakistan’s economy that there is lack of job opportunities for our workforce, of which a majority are youth.

Being part of a region where the security situation as well unhealthy relationships with our neighbors leads to further export barriers. The closure of the Torkham border, Bolochistan has had a tremendous impact on trade between Afghanistan and Pakistan; it is estimated that Pakistan faced a cumulative loss of PKR240 million in imports, while export goods worth $8.16 million could not be sent across in just four days of border closing.

Where does Pakistani exports stand at the moment? On a month-to-month basis, from July ($1.637 billion) to August ($2.126 billion), 2023 Pakistan’s trade deficit widened by 29.86 percent. However, according to the Pakistan Bureau of Statistics (PBS), in comparison to date from last year, the country’s trade deficit narrowed by 40.29 per cent during the first two months (July-August) of the current fiscal year; it stood at $3.763 billion compared to $6.302 billion during the same period of last fiscal year.

In order to ensure food security of the country, India has put a ban on its rice exports; for Pakistan, with a bumper rice crop, this has provided opportunities for traders to find new export markets; a first time $3 billion mark by the end of the fiscal year (FY24) is expected while $2.5 billion rice exports were carried out in FY23. Recently, Qatar has lifted its ban on Pakistani rice export which will also provide markets for Pakistani rice. It is being reported that export to Middle-eastern countries have shown a growth of 20.82 per cent in July led by revival from Saudi Arabia, Qatar, Kuwait and Bahrain; interestingly that is not the case for UAE, where exports have decreased.

Textile exports, the mainstay of our economy do not show encouraging figures, which fell by six percent year-on-year in August to $1.48 billion. The reasons for the fall include high energy costs and a liquidity crunch in the country.

Based on data from the State Bank of Pakistan, in the first month of the current fiscal year, exports to nine regional countries fell by 14.55 per cent, which was mainly due to fall in shipments to China. However, Pakistan`s exports to Afghanistan posted a positive growth of 32.79 percent; the exports were $42.173 million in July from $31.757 million in the same month, last year.

The decline was not only in exports but also imports – from China there was a steep decline in July from a year ago. Other countries where our exports declined included Afghanistan, China, Bangladesh, Sri Lanka, India, Iran, Nepal, Bhutan and the Maldives.

In the past months, Pakistan has been through a terrible debt crunch facing acute dearth in foreign exchange reserves. In order to overcome the situation, the government had imposed heavy time-bound regulatory duties; the government has been facing international pressure to rem­ove a complete ban on imp­orts. We need to remind ourselves that the under the World Trade Organization (WTO) rules, gov­ernment cannot indefini­t­ely ban imports and only reg­u­latory duties could be imp­osed based on different base lines. The WTO believes that all of its members are now able to trade equally; the highly skewed ability to trade in goods and services, where one country can only export primary commodities, while the others can export services such as in health, education and information technology, as well as capital intensive goods is not taken into consideration. And the endpoint of course then is the back-breaking debt like many countries across Asia and Africa are now facing.

Given the monster floods last year, and overall increase in production cost, the country is facing a shortfall of 2.45 million tons of wheat as per demand. According to reports, the market would need at least 3.5 million tons of wheat in the current year. The Economic Survey 2022-23 statistics show that the country produced over 27 million tons of wheat. The government had allowed the private sector to import wheat till March 15, 2024.

A private sector consortium of Pakistani traders have finalized import of 0.7 million metric tons of wheat to be brought from Russian and Romania. The import is expected to decrease wheat prices by PKR 5-7 per kg. However, consumers have not derived much benefit from the import of 2.7 million tons of wheat costing $1 billion during FY23 compared to 2.2 million tons amounting to $795 million in FY22.

At the same time, Pakistan’s economy is being hurt by the smuggled items that enter the country while goods are being taken to Afghanistan through the Afghanistan Transit Trade. The government is seeking measures to stop the ongoing smuggling.

The Asian Development Bank reports that the global trade finance gap grew to a record $2.5 trillion in 2022 from $1.7 trillion two years earlier, as rising interest rates, flagging economic prospects, inflation, and geopolitical volatility reduced the capacity of banks to deliver trade financing. (The trade finance gap is the difference between requests and approvals for financing to support imports and exports). Overall, the international growth and investment scenario for countries seem to be bleak. The pandemic and the war in Ukraine has raised the idea of ‘de-globalization,’ as there have been disruptions in trade and slow growth. It should be noticed that according to the IMF, total debt, which includes both public and private debt, stood at 238 percent of global gross domestic product (GDP) last year, 9 percentage points higher than it was in 2019.

At the same time, there is increasing struggle between major economic and military powers to create trade zones vying with each other to control trade routes and markets. Though there is much discussion on Saudi Arabia’s potential investment in Pakistan, there have been major developments happening between the US, Saudi Arabia and India at the Group of 20 leaders meeting, in New Delhi, India, this month. A memorandum of understanding is on the table to be signed by the European Union, India, Saudi Arabia, the United Arab Emirates, the US and other G20 partners. An economic corridor that includes multinational rail and ports stretching from India, to the Middle East, and then further to Europe is underway. The infrastructure project is considered to counter the China’s Belt and Road initiative. There is now further push for Saudi Arabia to recognize Israel, a process that has been undergoing in the Arab Islamic countries under the Abraham Accords. No doubt, Pakistan will also be pushed to join the Abraham Accords but will be highly contested by the people, of course.

There seems to be a disconnect in how the trade and investment is viewed by capitalist paradigms for achieving growth and economic development versus the ecological and environment debacle facing society at large. While scientists warn about mass extinction of species or extinction of ‘Tree of Life,’ and the UN maritime court seeks protection of the world oceans, the UN Secretary-General Antonio Guterres raises stark warning about the use of fossil fuel, the forces of monopoly capital seem entirely focused on pursuing a path of corporate super-profits unheeding the destruction caused by its industrial mode of production. Warning about global poverty, hunger, famine all seem words seem to fall on deaf ears. It seems that we are on the brink of a global disaster that may erupt at any moment. The struggle for sanity, for an equitable world, all seem to rest on the shoulders of the people, as our elite-run governments across the world seem to have crossed many red lines.

]]>
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);

]]>
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)

]]>
Points to Ponder August 2023! https://rootsforequity.org/?p=1514 Thu, 28 Sep 2023 15:47:32 +0000 http://rootsforequity.org/?p=1514 IMF Conditionalities – the suffering of the people!

The impacts of the IMF conditionalities set in its Standby Agreement that was signed last month have become glaringly visible in this month, and strikes, street protests and rallies have been held across the country. In Kamoke, and many others areas in Punjab, people burnt their electricity bills raising slogans against the extreme hike in utility bills refusing to pay what they cannot afford. The situation was so volatile that in Islamabad, the Islamabad Electricity Supply Company, Iesco asked for police protection from consumers protesting inflated electricity bills.

Businesses represented by Karachi Chamber of Commerce & Industry (KCCI) and Businessmen Group have also strongly protested against the ‘unbearable’ escalation in electricity tariffs. These bills were deemed unaffordable by neither the common person, nor traders or small industrialists. However, the caretaker government which took over the running of the government on August 17, 2023, is unable to provide any relief to the people or industry given the conditionalities agreed upon with the IMF. According to the caretaker Finance Minister Dr Shamshad Akhtar Pakistan’s fiscal space did not allow any subsidy or relief. The message given was that electricity consumers need to ‘manage their expectations’ that had been raised by the caretaker Prime Minister Kakar. It was clear that the country’s governors had little space (and maybe even interest) to protect the interest of the people and the dictate of the neo-colonial rulers had to be towed.

There has also a sharp rise in water utility bills, and the Punjab government has notified more than 400 percent increase in water utility bills for five major cities of the province. Similarly, the prices of petrol and diesel have hit a record high; fuel prices have jumped by nearly PKR 40/litre in just 15 days. Business leaders have stated that rise in fuel prices will result in closure of 50 per cent of industrial units, and trigger mass unemployment. Trade and industry are already struggling to survive the power tariff hikes of almost PKR10/unit, and cannot bear the increase of PKR17.50 and PKR 20/litre in prices of petrol and diesel, respectively.

In Karachi, traders have launched the “livelihood protection movement” against the soaring petrol and electricity prices. At a traders’ convention representatives of over a dozen of trade bodies agreed to step up the movement to save their businesses.

Similar impact is being felt in agriculture and food production where high fuel prices have increased all associated costs in production including transport. Expensive chemical agriculture inputs are heavily impacted due to currency depreciation as well as fuel prices. According to the Sindh Abadgar Board (SAB), prices of agricultural inputs continued to rise; fertiliser price had increased by 15pc to 20pc over the last few months. The Sindh Chamber of Agriculture (SCA) demanded at least PKR450 per maund for sugarcane crop given the sharp increase in agriculture input costs. They have rejected PKR 425/40 kilograms of sugarcane that is being proposed by sugar mills. It was also pointed out that though the government has not raised gas price for the fertilizer industry, farmers are still being forced to pay a high price for fertilizer.

Some good news was a good cotton crop as the pest attacks remained insignificant, and it is expected that a high cotton production will save billions of US dollars in cotton imports. An agriculture think tank, Agriculture Republic has pointed out that the textile industrial have lagged behind in ensuring that farmers get a good price, such as PKR 8,500 per 40 kilograms of cotton.

Another welcome news was availability of sufficient water in water canals after recent rains across the country, which included water being released downstream in the Kotri Barrage as well. The country`s two major reservoirs Tarbela and Mangla are now almost full to capacity, turning into surplus the acute water shortage that marked beginning of the current Kharif season in April; it is expected that there is now sufficient water for this year as well as next year cropping season.

However, the feudal elite continue to amass irrigation water access for their own benefit. According to DAWN, farmers in the tail-end areas of Thatta district have unearthed numerous illegal cuts, outlets, barricades and pumping machines meant to block flow of Nari Chach (upper) irrigation channel to their areas. Farmers requesting anonymity as no doubt they feared the wrath of feudal power, claimed that the local irrigation officials and other employees were hand in glove with the influential landowners.

Inflation, measured by CPI, surged by 28.3 per cent in the first month of the current fiscal year mainly due to rising food and energy prices. Similarly, food inflation for July was 40.2pc and 41.3pc for urban and rural areas, respectively, whereas non-food inflation was 17.3pc in urban and 22pc in rural areas. Core inflation, which strips out food and energy, stood at 18.4pc in urban and 24.6pc in rural areas.

The rising hunger and poverty can be seen through reports on suicides that are being reported. In Mandi Bahauddin, a woman poisoned her three sons due to poverty, resulting in the death of two of them at the hospital, while the eldest one survived. A 28-year-old man hanged himself from a tree with a rope over poverty at in district Layyah. The man was the father of three girls and he was reportedly facing financial troubles. Police responded to a desperate call for help from a man at emergency 15 who told about hunger his family was going through for the last two days, warning of committing suicide. These tragic happenings are testimony to what the people are suffering.

While unable to provide relief to the people, the state is quite willing to take away livelihood and resources from the people. The Punjab Chief Secretary Zahid Zaman has once again directed deputy commissioners to launch an operation against the illegal occupation of state land and encroachments. The Punjab government, through its various operations has claimed to have identified hundreds of thousands of acres of illegally occupied land. So, while, hundreds of thousands of agriculture land is the property of very power feudal elite as well as the defense forces, the landless farmers are being pushed off land. That ‘might is right’ is very evident in the policy arena in Pakistan. That indeed just and equitable land reforms are not considered a policy option is quite clear.

Voices have been raised by a number of organizations against the state’s disregard for small and landless peasants including sharecroppers and agricultural workers in various agriculture, livestock and fisheries sector. Though various laws such as the Sindh Tenancy Act of 1955, Sindh Bonded Labour System (Abolition) Act of 2015, Sindh Agriculture Worker Women Act of 2019 and Sindh Industrial Relation Act of 2013 are present, they are not being implemented. A large majority of peasants, particularly sharecroppers and rural workers, especially women cotton pickers faced abject poverty, crippling debt bondage and persistent malnutrition, while landlords were pushing extra costs on the peasants that further result in hunger and poverty.

Loans and debts abound!

The above dismal situation is partly based on the debt-ridden situation of Pakistan. As of 31st March 2023, Pakistan’s total external public debt stood at $85.18 billion, with a reduction of $1.38 billion in total external public debt, as of December 2022.

The IMF stimulus package has resulted in inflows of foreign finance amounting to $5.1 billion in July. According to the finance ministry’s Economic Affairs Division, total foreign economic assistance received in July was $2.89 billion compared to $185.6 million of the same month last year, an increase of 1,454 per cent. This was in addition to $1.2 billion released by the International Monetary Fund on July 13 as the first tranche of the $3 billion Standby Arrangement (SBA) and $1bn by the United Arab Emirates. The bulk – $2bn — of foreign loans were from Saudi Arabia and a $508 million guaranteed loan to Pakistan Air Force by China National Aero-Technology Import and Export Corporation. The division said that out of the $2.89 billion inflows, the bulk of $2.08 billion were received for budgetary support or programme loans and about $640 million as project aid.

Further, according to the Economic Affairs Division the government of Pakistan signed new loan agreements worth $7.228 billion with development partners during the first three-quarters (July-March) of the fiscal year 2022-23, compared to $11.321 billion during the same period of 2021-22.

Out of the total external public debt of $85.18 billion, the government owed $64 billion to multilateral and bilateral development partners including IMF. Meaning, more than two-thirds (i.e. 75 percent) of the total external public debt is on concessional terms with a longer maturity, 16 percent (i.e. $13.5 billion) from international capital markets and foreign commercial banks, and seven percent (i.e. $7 billion) of the total external public debt constitutes deposits from friendly countries (China and Saudi Arabia).

The government paid an amount of $12.922 billion during the period July-March 2023 on account of debt servicing of external public loans. This consists of principal repayment of $10.835 billion and interest payments of $2.087 billion.

The above figures show the vast burden of debt that the country is under, and the impact of this callosal debt is borne by the people, that can be well seen under the conditionalities imposed by the IMF.

Wither Accountability?

According to the Asian Development Bank, soaring food and fuel prices and the coronavirus pandemic have pushed nearly 70 million more people in Asia into extreme poverty last year. This sentiment is also expressed by the Governor Jameel Ahmad, State Bank of Pakistan (SBP). According to him, the global economic conditions have largely contributed to higher inflation in Pakistan, and matters have exacerbated due to the floods in Pakistan. However, only floods have not resulted in the accumulation of such a massive debt and the blame has to be shared with one after the other incompetent governments run by elite classes of our country who have borrowed without showing any productive gain. One also needs to ask the lending institutions how they carry out their monitoring and evaluation? Accountability of the funds given and received seem to be totally lacking; while the elite, including bureaucracy continues to live with plenty, the poor are coerced to pay a debt they had no hand in incurring. Such are the results of so-called capitalist democracy, a system that is much sprouted for safeguarding human rights, women rights, the rights of the working class, peasants and minorities, among others.

The utter disregard for accountability is seen in the actions of an outgoing government. Just a day before its term reaching completion Economic Coordination Committee (ECC) of the Cabinet approved a huge number of programs and policies. A six-month extension of the Kissan Package worth PKR 158 billion was carried out. Also, a ‘single-entity’ export processing status to Frontier Works Organisation (FWO) in Waziristan for mineral exports and revival of modified SME Asaan Finance (SAAF) Scheme were granted as well as a ‘gradual sovereign guarantee’ for about $3.475 billion worth of Chinese loans for a 1,200MW nuclear power plant were given. The ECC also approved the continuation of gas supply to two Punjab based fertiliser plants of Fatima Group till Oct 15 and issuance of a ‘State Support Agreement’ to provide financing comfort to prospective foreign operator of Islamabad International Airport set to be outsourced shortly. Eight development projects worth PKR 174 billion were also approved that included a World Bank financed Punjab Urban Land Systems Enhancement Project of the Punjab Board of Revenue (BoR) worth PKR 26.44 billion. The Cabinet Committee on Inter-Governmental Commercial Transactions approved the outsourcing of the Bulk and General Terminal at Karachi Port, East Wharf, to Abu Dhabi Ports (ADP) for 15 years.

The rapid agreement on development projects, including selling off national assets and privatization schemes have once again happened without any consultation with the people, the working class. The All Pakistan Wapda Hydro Electric Workers Union (CBA) is questioning the federal government for not disclosing plans for privatisation; the facade of public-private partnership is being used for outsourcing feeders. The union officials have stated that they will stand up and fight the government’s policy of privatisation of power utilities.

The so-called democratic right to protest is not looked upon favorably by the Pakistan International Airlines (PIA) management and has lodged an FIR against its employees who were demanding askance at the proposed privatisation of the national flag carrier. It is indeed interesting that the common citizen is met with extreme resistance from the Police if she wants to lodge an FIR; however, it seems the PIA management has had to face no such difficulties. Such is the sorry tale of power and privilege in the country where the working class is criminalized for demanding rights, where the rich and the powerful run Scot free even in face of dire misdeeds.

The Persistent Mantra …trade liberalization in agriculture

In spite of the massive failing of neoliberalism in bringing prosperity to the country, our rulers continue to propagate the firm belief that they hold in the neoliberal capitalism and corporate control. According to Ms. Tanzila Umi Habiba, the Special Assistant to the Chief Minister, modernizing agriculture could help in overcoming food and economic crisis. Modernizing means linking agriculture with the information technology sector. Academia also believes that our youth bulge could avail career opportunities by participating in joint ventures in the IT and agriculture sectors; they could use their innovating ideas in areas such agri-business, smart agriculture, GIS, remote sensing, and agricultural monitoring.

The Punjab Agricultural Research Board (PARB) has approved research projects worth PKR 900 million that include development of superior canola quality lines in rapeseed and mustard; in the presence of the interim Agriculture Minister SM Tanveer, a board meeting approved 40 research plans — 31 relating to agriculture and nine pertaining to livestock. Rich landlords euphemistically called ‘progressive farmers’ have called for research on the horticulture sector so that Pakistan could also engage in exports in this sector.

National and international experts are advocating for establishment of joint forums that include national agricultural institutions, policymakers, and breeders for the improvement of the country’s livelihood and the food security. In context to seed, legislation and genetic inspection is being proposed to prevent defective seeds in the country and to certify imported seeds. Sindh Agriculture University (SAU) and Food and Agriculture Organization (FAO) have agreed to work together for strengthening research and development, on agriculture in Sindh and Balochistan to promote sustainable agriculture and improve living standards of the farming communities.

Similar emphasis is by various international development organizations. A high-profile event organized by FAO for a USAID-funded project “Livelihood and Food Security Improvement Activity” (LFSA), was attended by the Secretary Agriculture, KP, Director Generals and high-level government officials from agriculture research, extension, livestock and dairy development along with representatives from USAID, UN WOMEN and farmers’ representatives from Khyber and Mohmand districts. The project – a FAO collaboration with KP government, civil society organizations, the private sector will support 150,000 rural households including women farmers, over a period of four years. The aim is to improve livelihoods and food security of 150,000 households through agriculture-led growth in KP and flood-affected areas of Pakistan, adopting technological advancements for enhanced productivity and better livelihoods. The narrative is that the project will strengthen and modernize agriculture and livestock sectors, creating assets, and diversifying livelihood options.

Such ventures abound Pakistan’s development history, but to no avail. One is left to wonder how these projects are designed and evaluated that there is failure after failure in creating better standards of living among rural communities. All new projects have the same ambitions with no reflection on what they have failed to deliver in more than 70 years of pursuing development projects based on capitalist enterprise.

Institutions like the FAO, US AID among others who espouse neoliberalism, and industrialized chemical agriculture forget that such agriculture production systems are dependent on water which is now a highly scarce resource. According to the World Resource Institute, increased water demand is based on number of factors including industries, irrigated agriculture, livestock and energy production.

Pakistan has been classified under the ‘high’ water stress category. This categorisation is part of a broader revelation that by 2050, an estimated $70 trillion in GDP, equivalent to 31 per cent of the global GDP, will be vulnerable to high water stress. The world is facing an unprecedented water crisis, and the Water Risk Atlas finds that 25 countries, i.e. one-fourth of the world’s population face high water stress, annually. Given these circumstances, to invest in ventures that will require more and more modern industrial technology puts the entire planet at risk.

The new emphasis on livestock and dairy sector is blood-chilling as the context of Pure Food Laws in Pakistan is to wrest control over livestock and dairy from the hands of small and landless farmers, especially women farmers in compliance with the Sanitary and Phytosanitary Mechanisms of the World Trade Organization.

Trade – murky waters!

Trade liberalization has not been able to yield gainful results as yet as can be seen by the poor performance of Pakistan’s exports in the last fiscal year.

Reports on exports on the last fiscal year were made available this month in August, and the overall picture is quite dismal. In FY23, the merchandise exports dipped by 12.71 percent to $27.54 billion from $31.78 billion in FY22, missing the $32 billion target by a wide margin of $4.46 billion. The government has projected an export target of $30 billion for the current fiscal year. According to the Pakistan Bureau of Statistics, declining exports are aggravating fear about closure of industrial units, especially for clothing and textiles. However, apart from exports, imports also fell by 31 percent to $55.29 billion in FY23 from $80.13 billion in FY22. According to APTMA, textile exports in the period of January to July, 2023 stood at $9.09 billion, down by 21 percent as compared to export earnings $11.48 billion in the same period in 2022.

Similarly, rice export fell by 14 percent during the FY23 due to lower crop output from flooding. However, a positive outlook on rice exports in FY24 as a bumper crop is expected as well as a ban on rice exports by India.

Though Pakistan’s vegetable exports reached its highest peak yet at 1.336 million tonnes in FY23 from 939,714 tonnes in FY22, which was a 42 percent increase in export volume. However, it still failed to fetch higher foreign exchange earnings which went down by 3 per cent to $300 million in FY23 from $310m in FY22 mainly due to a drop in average per tonne price (APT) from $329 to $224.6.

It is indeed remarkable that as consumers at home faced high sugar prices, sugar exports rose to a 100 percent in the first month of the current fiscal year. According to news, the previous PDM government had allowed sugar exports in February at the behest of influential political families. It is also questionable that under heavy pressure on foreign exchange reserves, 574 tonnes of sugar has been imported in July, showing an increase of over 20pc on a year-on-year basis. Under these conditions, it may be worth examining how our neighboring country India has dealt with in trying to improve domestic availability. According to news reports, India intends banning sugar mills from exporting sugar from October 2023. It has also with immediate effect, imposed a 40% export duty on onion to help improve local supply to the Indian consumer.

However, on this side of the border, it is evident that there are efforts to increase agriculture exports. Pakistan held its 1st International Food and Agriculture Exhibition-FoodAg-2023, where more than $410 million of export deals were finalised in agro-rel­ated products along with the signing of 10 memorandum of understandings (MoUs).

Of Trade Partnerships . . .

A Chinese food firm, Litong Foods is aiming a joint venture worth $30 million with Pakistani Guard Agricultural Research and Services (Pvt.) Limited to export 5000 tons of dried chillies to China. Litong Foods and guard have already undertaken a project of sowing hybrid chilies in Multan, Punjab. Guard, in the past has also introduced Chinese long grain hybrid rice in Pakistan.

Pakis­tan and Iran have developed a five-year trade cooperation plan aimed at enhancing trade volume to $5 billion and to finalize a free trade agreement among the two countries, as well as the completion of the Pakistan-Iran gas pipeline. They also came to an agreement to set fishermen from the two countries free and waive off any fine imposed by authorities of both countries for the release of their vessels.

The remarks of the Ambassador of Iran to Pakistan Dr Reza Amiri Moghaddam on CPEC, Gwadar and Chahbahar Ports portray a greater relationship between the two countries as well as the trilateral relationship with China. According to him the two ports Gwardar and Chahbahar are interlinked in terms of commerce and development, and “there is no element of conflict.”

The inaugural shipment from China to Afghanistan via the Khunjerab border in Gilgit-Baltistan, under the Transports Internationaux Routiers (TIR) Convention has been undertaken; expectations are that transit route would significantly reduce travel time, almost by 70 per cent and cut logistics costs by 30pc. There are hopes that the shortened passage through TIR coupled with Quadrilateral Traffic in Transit Agreement — between China, Pakistan, Kyrgyzstan and Kazakhstan — including the Belt and Road Initiative will help Pakistan to become a major hub of transit trade.

Climate Imperialism!

After the devastating monster monsoons of last year, the country is once again facing impacts of the monsoon season this year. All major rivers of Punjab have swollen due to heavy rains in different parts of the province as well as other parts of the country.

The Sutlej and Chenab burst its banks, water inundating villages as well as agricultural land spreading over hundreds of acres. Areas in Bahawalpur, Okara, Vehari and Khanewal among others have been heavily impacted. Mudhouses collapsed leaving people once again without shelter. Flash floods in Balochistan left eleven people dead, as well as destruction of houses.

By the end of the month nearly 400,000 persons and 20,000 livestock had been shifted to safer locations. The ongoing floods triggered by monsoon resulted in the deaths of 213 people, injuring 313, destroying 5,754 houses and killing 1,256 livestock during the current rainy season that started on June 25, 2023. This catastrophe is in face of impacts still being felt from last year floods. According to UNICEF, there were still eight million people, around half of whom are children, who continue to live without access to safe water in flood-affected areas, whereas over 1.5 million children require life-saving nutrition interventions in the flood-affected districts.

On one hand the people are suffering from fossil fuel emissions of rich industrial countries, and on the other hand industrial practices have resulted in various forms of pollution. Government of Gilgit-Baltis­tan has made a much-needed decision to impose a complete ban on single-use plastic throughout the region; such a step needs to be taken across the country, as plastic pollution intensely harms all life forms including marine life, destroys agricultural production harming human health and the environment. Similar actions by the people internationally can also be seen. For instance, in Ecuador, the people have voted to stop an oil drilling project in an Amazon reserve.

According to an Air Quality Life Index report published by University of Chicago, air pollution in urban centers of Pakistan, such as in Lahore, Kasur, and Sheikapura could reduce at least four years of life expectancy. The report identifies that the entire 240 million population of Pakistan resides in regions where the yearly average of particulate pollution surpasses the guidelines set by the World Health Organization.

The disregard for the environment can be seen at the national and international level; Japan has now started releasing treated radioactive water in the Pacific Ocean from its damaged Fukushima power plant. In response China has announced a blanket ban on all aquatic products from Japan. However, this will not save marine ecosystem from harm.

It is interesting to see that for countries like the United States, who are basically largely accountable for fossil fuel emissions, their efforts are spent in trying not to bring about changes in their highly destructive production and consumption system but to find ways to clean up the emissions after they have been emitted. The US government has announced that it will spend up to $1.2 billion for two pioneering facilities to vacuum carbon out of the air. Similarly, a new Global Biodiversity Framework Fund has been created by the Global Environment Facility (GEF) to facilitate financing for developing countries to enhance their ability to protect, restore and ensure sustainable use of natural resources. It is again ironical that the countries that are responsible for destroying biodiversity in their own backyard as well as in our countries also create these grand funding schemes to save what they are willfully destroying. It is important to note that world temperature is constantly increasing. According to European Union climate observatory data, in the first week of August, the temperature of the oceans’ surface rose to 20.96 degree Celsius, rising from 20.95C in March 2016. This was a new temperature record, and could have further implications for the Earth climate, marine life and coastal communities.

The Right to Fight: Fight for our Rights!

The constant misery faced by the people on various fronts has resulted in an overall environment of confrontation in the country, with people standing up resisting the many forms of violations that they are facing at the hand of the governing elite. Flawed governance policies of Punjab Health Facilities Management Company (PHFMC) under the administrative control of Primary and Secondary Health Care Department (P&SHC) has led to closure of nearly 1,000 primary health units, with thousands of medical and paramedical staff going on strike demanding their rights. As is the norm, instead of their demands being addressed, they were given ‘warning letters’. Civil Aviation Authority (CAA) employees have also been holding demonstration at the Allama Iqbal International Airport, Lahore outsourcing of major airports of the country.

In Nagarparkar, Sindh, there have been protests against the Sindh government plans to auction off 5,000 acres in the Parkar region for granite extraction, while in Balochistan, hundreds of female students at a government college have been protesting against continued absence of teachers at the facility, that has left it basically non-functional.

Another dastardly incident was a mob attack on 19 churches in Jaranwala, Faisalabad based on information that two people had defile the Quran. Religious extremist reactions routinely end in death and destruction of minorities with state forces showing total failure to control such acts of vandalism. People across the country have stood up to call for the protection of religious minorities, including a Minority Rights March which held a candle vigil and protest in Karachi.

Given the wide scale of chaotic disruptions in socio-economic lives of the people, the way out of course is to demand for a change in our economic system. A system change is drastically needed that upholds basic principles of human rights, full fills basic needs such as food, water, health and shelter, and of course must include right to decent livelihood. Just and equitable distribution of resources will surely lead to a more humane society, cooling not only our overheated planet, but also bring relief and dignity in the lives of the human civilization, as well as living-beings.

]]>
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.

]]>
Small and landless farmers: Pay Heed! https://rootsforequity.org/?p=1396 Wed, 22 Mar 2023 11:47:16 +0000 https://rootsforequity.org/?p=1396 “Save our Invaluable Rural Assets: Campaign for Dairy and Livestock”

The People: Pay Heed!

  • The government is imposing restrictions on fresh natural open milk; new laws have been made.
  • The government has decreed it is necessary to pasteurize fresh natural open milk. Without pasteurization, fresh milk cannot be sold.
  • Millions of small and landless farmers, workers, especially women farmers and milkmen put immense labor in the production and sale of fresh natural open milk.
  • Our small and landless farmers provides not only fresh natural open milk but also milk products such as butter, lassi, khoya, curd, and cream. Apart from this, they also provides meat and leather throughout the country.
  • International, hegemonic profit-seeking corporations want to impose legal restrictions on the sale of fresh natural open milk so that they take control of the dairy sector. With this aim, they are promoting packaged milk.
  • Fresh natural open milk is a blessing. By giving its control to profit-seeking corporations, the Pakistani population will lose a healthy nutritious food including a major source of livelihood. In other words, an already rich class is being further strengthened and the peasantry and the working class is being further oppressed.
  • Let us raise our voices against the ‘Pure Food Regulations’ and ensure the protection of safe and nutritious food for the people and the livelihood of the farmers, the backbone of our society.

What are the Punjab and Sindh ‘Pure Food Regulations 2018’?

The Punjab Food Authority, Government of Punjab and Sindh Food Authority, Government of Sindh have issued the Pure Food Regulations 2018 to impose various restrictions on the production, processing and sale of food. Under this, Punjab and Sindh Pure Food Authorities have issued orders that fresh natural open milk can now be sold only after pasteurizing. For businesses that are producing milk and other milk products will have to undergo a complex process of registration with the government authorities to be able to operate in the dairy sector.

Please note, it is based on the unflinching hard labor of small and landless farmers that Pakistan is the fourth largest milk producing country in the world.

  • The livestock sector accounts for about 60% of Pakistan’s agricultural sector and contributes 11% to the country’s production.
  • About 80 per cent of milk production is in the hands of small producing groups (small and landless farmers).
  • Small and landless farmers, men and women, earn their livelihood from this sector through arduous painful work.
  • Ordinary rural households earn 35 to 40 percent of their income from livestock.
  • Globally, monopoly corporations in the agriculture sector are aggressively trying to take full control, from production to processing to marketing and sale of foods and food products.
  • In the dairy sector (and others), new laws are being put in place, ostensibly keeping in mind food hygiene and public health. However, only 20 percent of households in Pakistan have access to clean water to date. If hygiene was such a priority, rules and regulations for safe drinking water should have been on top of the list, and being implemented rigorously.
  • It should be noted that laws on the sale of natural open milk are being made and implemented only to promote the dominance of foreign imperialist corporations.
  • This process will deprive the people of invaluable natural assets, food and livelihood, which will further increase hunger and poverty.

No to Corporate Capture of our Milk and Milk Products!

]]>