05-26-2006, 01:54 AM
A new National Reforms Commission has been set up under the chairmanship of Dr. Ishrat Hussain the ex Governor of State Bank. As usual an elite Eng. Zakria of some Citizen Forum has left no time trying to convince that this Commission was the only need left for the betterment of the country. I have never believed on so called NGOs, human right activities, Forums and social workers. What has so far this or that Forum has practically done for the common man? Those who have human heart for humanity do not form NGOs or Forums but do service to community silently both individually and jointly
It has been realized by the Government that ordinary people are badly affected by rules and procedures at every tier of the Government. Is this realization the first time? No, certainly not. This nation for the last more than 30 years have heard so many slogans of reforming or making easy the systems for the public. One day Nawaz Sharif raised the same slogan that office procedures would be made simple and easy. Immediately the Gas Company in home town Punjab in compliance made the procedure more simplified by introducing a new condition that henceforth a copy of neighbourâs paid gas bill will also be attached with new application for a gas connection.
The question now is whether Dr. Hussain will be able to improve the lot of the people by simplifying the rules and procedures at all tires of governance, from local to provincial and federal levels that have made their life a hell. The reply lies in recent press remarks of Abdul Qadir of Karachi a banking employee that Dr. Ishrat did nothing for the cause of the poor employees of SBP and he will do little in his present capacity as chairman of the Commmission.
What Dr. Ishrat delivered during his tenure as Governor State Bank of Pakistan? I or none of my family member has ever worked directly or indirectly in any Bank though late 1960s when UBL emerged on surface late Mr. Abdi offered me a job. However, my basic general banking knowledge as a layman has well at different levels been appreciated viz a fiz that in 1986 a very top level from Islamabad addressed a D.O letter to the Finance Division that the gentleman talks sense about finance hence a contact with him could be better.
My view is during Dr. Ishratâs tenure domestic savings got the severest set back. In the words of famous economist Sultan Ahmed under some planning since years real domestic savings which are the real backbone of a countryâs economy are in our country being killed Banking industry was âpracticallyâ given the blanket hand to do and play whatever with the small account holders. Dr. Isharat never explained that why it was that when under his doctrine allowing banks to levy and recover service charges, the average rate of profit to domestic savings remained 1.5 to 2.5% and in most cases negative profit whereas when his this doctrine was not in existence same very banks were giving 5 to 8% profit without any service charges. Dr. Ishrat has never explained are todayâs soaring banking assets and profits really due to some innovative banking new schemes or due to deductions from saving account holders and different unpublicized charges like on credit cards etc. A Bank deducted Rs. 80 from my account as courier charges whereas within Karachi limited all clearance is through SBP clearance house and within Karachi the TCS then charged Rs. 25/- only from ordinary man and bulking customers like Banks merely Rs. 8/-. Since Dr. Ishrafâs doctrine that banks have the right to recover their charges I had to pay the Bank Rs. 80/- whereas it spent only Rs. 8/-. The other day a reader was commenting how right under SBPâs sleep one foreign bank was selling its sister concerned companyâs mobile chips. Dr. Ishrat during his tenure raised many slogans about interest of common man. For example three years back he ordered banks to install ATMs. How many have installed so far. He ordered facilities like shade, water etc for people paying utilities but on the other hand during his tenure many Branches accepting bills stopped this. He introduced Basic Bank Account but according to recent numerous letters appearing in the press hardly any bank has so far made available Forms for such an account. Dr. Ishrat belongs from that school of thought who treat banks merely commercial organizations which academically is quite right but this school of thought does not believe that in societies like ourâs these banks also are also to play a little role for the welfare of society in general even at a little loss which can be recovered from elsewhere.
The fact is Commission over Commission is a technique to kill the time and let the status quo remain. Likewise reforms too is a slogan. We established and spent quite a lot on National Reconstruction Bureau which was aimed at a sort of reforming / reconstruction of system. NRC had an internal idea bank. What this NRB achieved? Over a Federal Ombudsman we established provincial ombudsman. Then spreading up we created tax ombudsman, bank ombudsman and now we are planning district level ombudsmen. What has so far been achieved? Has tax complaints âreducedâ.
Federal Ombudsman for 22-23 years very well handled complaints against Banks. I filed dozen and dozens complaints in most of which I got relief. In some cases even I got the banking procedures amended. For example in 1990 I raised the issue that there should not be a single signature account opening. I explained the reason. The Pakistan Banking Council and all five Head of the Natioalised Banks tooth and nail resisted but the Federal Ombudsman terming my raised issue as âhumanitarianâ ordered to adopt my proposed and drafted text in account opening procedure which since then is in vogue. The national newspapers wrote praising editorials on it. Now banking complaints have been taken from Federal Ombudsman and given to the newly established Banking Ombudsman the office procedure of which has been written by SBP under Dr. Ishrat Hussain. If a Bank does not give me a response or did not meeting my request etc. despite my whole one or two years struggle, under this new procedure I am now required to re-write to the concerned bank giving it a âfurther 90 daysâ margin as if my already wasted one or two years were not enough. To qualify myself as a complainant I would also have to threat the bank that in case I did not get response in 90 days I will go the Banking Ombudsman. When I used to raise complaints with Federal Ombudsman under that simple procedure I was never required to give the bank any further margin of time. The Federal Ombudsman simply took the complaint, forwarded the bankâs reply asking for rejoinder and issued a written Final Decision. This Final Decision as is universal practice contained brief nature of complaint, briefed bank reply, brief complainantâs rejoinder, ombudsmanâs own observation and finally his Order either directing Bank to do this and that or turning down the complaint. Copies of this decision used to go to both parties. This served as a deterrent or a remedy for avoiding future acts of mal administration. Today under the procedure prescribed by SBP/Dr. Ishrat against my two complaints neither any Decision has been received nor it is know what the bank took a defence.
If the Government is really serious in reforming the cumbersome bureaucratic procedures then as a first step this Commission should be headed and comprised by Mr. Justice Sardar Mohammad Iqbal the so far unmatched Ombudsman, Mr. Justice Nassar Zahid Aslam, Mr. Ardeshir Cowasjee etc who really know what the peopleâs sufferings were and above all posses the most important quality namely God given public service spirit. A person who does not have public spirit can only advise people to eat cake if bread was not available. The presence of such people will highlight and diagnose real causes of public ills. For example presence of Mr. Ardeshir Cowasje can at least diagnose and advice remedy for public concerning illegal constructions, occupying gardens and greenery by mafia etc.
Will the bureaucrats and politicians let the government implement the report of such a commission is another subject.
It has been realized by the Government that ordinary people are badly affected by rules and procedures at every tier of the Government. Is this realization the first time? No, certainly not. This nation for the last more than 30 years have heard so many slogans of reforming or making easy the systems for the public. One day Nawaz Sharif raised the same slogan that office procedures would be made simple and easy. Immediately the Gas Company in home town Punjab in compliance made the procedure more simplified by introducing a new condition that henceforth a copy of neighbourâs paid gas bill will also be attached with new application for a gas connection.
The question now is whether Dr. Hussain will be able to improve the lot of the people by simplifying the rules and procedures at all tires of governance, from local to provincial and federal levels that have made their life a hell. The reply lies in recent press remarks of Abdul Qadir of Karachi a banking employee that Dr. Ishrat did nothing for the cause of the poor employees of SBP and he will do little in his present capacity as chairman of the Commmission.
What Dr. Ishrat delivered during his tenure as Governor State Bank of Pakistan? I or none of my family member has ever worked directly or indirectly in any Bank though late 1960s when UBL emerged on surface late Mr. Abdi offered me a job. However, my basic general banking knowledge as a layman has well at different levels been appreciated viz a fiz that in 1986 a very top level from Islamabad addressed a D.O letter to the Finance Division that the gentleman talks sense about finance hence a contact with him could be better.
My view is during Dr. Ishratâs tenure domestic savings got the severest set back. In the words of famous economist Sultan Ahmed under some planning since years real domestic savings which are the real backbone of a countryâs economy are in our country being killed Banking industry was âpracticallyâ given the blanket hand to do and play whatever with the small account holders. Dr. Isharat never explained that why it was that when under his doctrine allowing banks to levy and recover service charges, the average rate of profit to domestic savings remained 1.5 to 2.5% and in most cases negative profit whereas when his this doctrine was not in existence same very banks were giving 5 to 8% profit without any service charges. Dr. Ishrat has never explained are todayâs soaring banking assets and profits really due to some innovative banking new schemes or due to deductions from saving account holders and different unpublicized charges like on credit cards etc. A Bank deducted Rs. 80 from my account as courier charges whereas within Karachi limited all clearance is through SBP clearance house and within Karachi the TCS then charged Rs. 25/- only from ordinary man and bulking customers like Banks merely Rs. 8/-. Since Dr. Ishrafâs doctrine that banks have the right to recover their charges I had to pay the Bank Rs. 80/- whereas it spent only Rs. 8/-. The other day a reader was commenting how right under SBPâs sleep one foreign bank was selling its sister concerned companyâs mobile chips. Dr. Ishrat during his tenure raised many slogans about interest of common man. For example three years back he ordered banks to install ATMs. How many have installed so far. He ordered facilities like shade, water etc for people paying utilities but on the other hand during his tenure many Branches accepting bills stopped this. He introduced Basic Bank Account but according to recent numerous letters appearing in the press hardly any bank has so far made available Forms for such an account. Dr. Ishrat belongs from that school of thought who treat banks merely commercial organizations which academically is quite right but this school of thought does not believe that in societies like ourâs these banks also are also to play a little role for the welfare of society in general even at a little loss which can be recovered from elsewhere.
The fact is Commission over Commission is a technique to kill the time and let the status quo remain. Likewise reforms too is a slogan. We established and spent quite a lot on National Reconstruction Bureau which was aimed at a sort of reforming / reconstruction of system. NRC had an internal idea bank. What this NRB achieved? Over a Federal Ombudsman we established provincial ombudsman. Then spreading up we created tax ombudsman, bank ombudsman and now we are planning district level ombudsmen. What has so far been achieved? Has tax complaints âreducedâ.
Federal Ombudsman for 22-23 years very well handled complaints against Banks. I filed dozen and dozens complaints in most of which I got relief. In some cases even I got the banking procedures amended. For example in 1990 I raised the issue that there should not be a single signature account opening. I explained the reason. The Pakistan Banking Council and all five Head of the Natioalised Banks tooth and nail resisted but the Federal Ombudsman terming my raised issue as âhumanitarianâ ordered to adopt my proposed and drafted text in account opening procedure which since then is in vogue. The national newspapers wrote praising editorials on it. Now banking complaints have been taken from Federal Ombudsman and given to the newly established Banking Ombudsman the office procedure of which has been written by SBP under Dr. Ishrat Hussain. If a Bank does not give me a response or did not meeting my request etc. despite my whole one or two years struggle, under this new procedure I am now required to re-write to the concerned bank giving it a âfurther 90 daysâ margin as if my already wasted one or two years were not enough. To qualify myself as a complainant I would also have to threat the bank that in case I did not get response in 90 days I will go the Banking Ombudsman. When I used to raise complaints with Federal Ombudsman under that simple procedure I was never required to give the bank any further margin of time. The Federal Ombudsman simply took the complaint, forwarded the bankâs reply asking for rejoinder and issued a written Final Decision. This Final Decision as is universal practice contained brief nature of complaint, briefed bank reply, brief complainantâs rejoinder, ombudsmanâs own observation and finally his Order either directing Bank to do this and that or turning down the complaint. Copies of this decision used to go to both parties. This served as a deterrent or a remedy for avoiding future acts of mal administration. Today under the procedure prescribed by SBP/Dr. Ishrat against my two complaints neither any Decision has been received nor it is know what the bank took a defence.
If the Government is really serious in reforming the cumbersome bureaucratic procedures then as a first step this Commission should be headed and comprised by Mr. Justice Sardar Mohammad Iqbal the so far unmatched Ombudsman, Mr. Justice Nassar Zahid Aslam, Mr. Ardeshir Cowasjee etc who really know what the peopleâs sufferings were and above all posses the most important quality namely God given public service spirit. A person who does not have public spirit can only advise people to eat cake if bread was not available. The presence of such people will highlight and diagnose real causes of public ills. For example presence of Mr. Ardeshir Cowasje can at least diagnose and advice remedy for public concerning illegal constructions, occupying gardens and greenery by mafia etc.
Will the bureaucrats and politicians let the government implement the report of such a commission is another subject.