In 1985, Xenel Corporation of Saudi Arabia conceived the setting up of a mega-power plant in Pakistan's private sector. The sponsors of Hub Power Company had to negotiate for nine long years with 11 successive Pakistani governments and at least 40 different bank-lenders before they could sit and sign an Implementation Agreement (IA) with the government of Pakistan then led by Prime Minister Nawaz Sharif (the IA was signed on August 3, 1992). Hub Power's four steam turbines of 323 MW each, for a total of 1,292 MW, were commissioned on March 31, 1997. In 1993, the Pakistan Peoples Party won elections. In 1994, Prime Minister Benazir Bhutto unveiled Power Policy 1994. The Private Power and Infrastructure Board (PPIB) was inundated with 116 applications amounting to an accumulated generation capacity of 26,000 MW. The PPIB selected 75 applications -- amounting to an investment of some $20 billion -- to whom it issued its Letter of Intention (LoI). After further scrutiny and a deposit requirement of Rs100,000 per MW, a total of 33 applicants were issued Letters of Support (LoS). Eventually, 14 of the 33 applicants were able to reach financial close. In 1997, Mian Nawaz Sharif was elected prime minister once again and he unveiled Power Policy 1998. Power Policy 1998 was a complete failure. In 2002, General Musharraf unveiled his Policy for Power Generation Projects 2002. The Policy for Power Generation Projects 2002 over its seven-year life span has so far added a paltry 165 MW. According to the PPIB, we now have 17 private power producers with a capacity of around 4,500 MW. Of the 4,500 MW, private power producers with a capacity of some 800 MW have been shut down. All other private power producers are operating way below their full generating potential. Two questions: why have some private power producers completely shut down? Why are private power producers operating way below their full generating potential? Two answers: political score-settling plus the circular...

Total chaos in Peshawar: A recent cursory look at just one Urdu newspaper published from Peshawar, the capital of Pakistan's embattled Northwestern Frontier Province (NWFP) exposes extremely disturbing figures on the alarming socio-economic decline that major cities of the Northwestern Frontier Province find themselves in. The data on crimes in Peshawar, Charsadda, Nowshehra, D.I.Khan and Mardan presents a sad story of how poor governance, lack of justice, corruption and insensitivity of politicians and bureaucrats have delivered these cities in the hands of criminal gangs, many of whom disguise themselves as Taliban. Half of the total murders recorded in the abovementioned districts took place in Peshawar, the provincial capital and the largest district with close to 3 million inhabitants. Same is the case with the kidnappings and robberies as nearly 70% of all the kidnappings and robberies took place in Peshawar city. Viewed against these alarming figures, why shouldn–t Peshawarites feel insecure and scare? This also explains the provincial capital degeneration from a throbbing, tolerant and literary city into a town haunted by the lethal combination of crime and militancy, that is compounded by a corrupt ruling elite backed up by an insensitive bureaucracy. Over the years, the city has sunk into social chaos and insecurity, precipitated by economic adversity. Once a glorious city: Peshawar in the 1960s, was a culturally-throbbing city with activities going on from staging classic English plays to playing and experimentation in modern music. Peshawar University was the 'epicenter' of much cultural and artistic experimentation and was seen as one among the most progressive, liberal and forward looking institutions. Now, fast forward to 2002-2007 when Peshawar hardly survived under the 'Islamic rule' of the bigoted rule of Muttahida Majlise Amal (MMA) that killed the spirit and soul of the city. Pictures of females cannot appear on billboards and absolutely not in...

Total chaos in Peshawar: A recent cursory look at just one Urdu newspaper published from Peshawar, the capital of Pakistan's embattled Northwestern Frontier Province (NWFP) exposes extremely disturbing figures on the alarming socio-economic decline that major cities of the Northwestern Frontier Province find themselves in. The data on crimes in Peshawar, Charsadda, Nowshehra, D.I.Khan and Mardan presents a sad story of how poor governance, lack of justice, corruption and insensitivity of politicians and bureaucrats have delivered these cities in the hands of criminal gangs, many of whom disguise themselves as Taliban. Half of the total murders recorded in the abovementioned districts took place in Peshawar, the provincial capital and the largest district with close to 3 million inhabitants. Same is the case with the kidnappings and robberies as nearly 70% of all the kidnappings and robberies took place in Peshawar city. Viewed against these alarming figures, why shouldn–t Peshawarites feel insecure and scare? This also explains the provincial capital degeneration from a throbbing, tolerant and literary city into a town haunted by the lethal combination of crime and militancy, that is compounded by a corrupt ruling elite backed up by an insensitive bureaucracy. Over the years, the city has sunk into social chaos and insecurity, precipitated by economic adversity. Once a glorious city: Peshawar in the 1960s, was a culturally-throbbing city with activities going on from staging classic English plays to playing and experimentation in modern music. Peshawar University was the 'epicenter' of much cultural and artistic experimentation and was seen as one among the most progressive, liberal and forward looking institutions. Now, fast forward to 2002-2007 when Peshawar hardly survived under the 'Islamic rule' of the bigoted rule of Muttahida Majlise Amal (MMA) that killed the spirit and soul of the city. Pictures of females cannot appear on billboards and absolutely not in...

Total chaos in Peshawar: A recent cursory look at just one Urdu newspaper published from Peshawar, the capital of Pakistan's embattled Northwestern Frontier Province (NWFP) exposes extremely disturbing figures on the alarming socio-economic decline that major cities of the Northwestern Frontier Province find themselves in. The data on crimes in Peshawar, Charsadda, Nowshehra, D.I.Khan and Mardan presents a sad story of how poor governance, lack of justice, corruption and insensitivity of politicians and bureaucrats have delivered these cities in the hands of criminal gangs, many of whom disguise themselves as Taliban. Half of the total murders recorded in the abovementioned districts took place in Peshawar, the provincial capital and the largest district with close to 3 million inhabitants. Same is the case with the kidnappings and robberies as nearly 70% of all the kidnappings and robberies took place in Peshawar city. Viewed against these alarming figures, why shouldn–t Peshawarites feel insecure and scare? This also explains the provincial capital degeneration from a throbbing, tolerant and literary city into a town haunted by the lethal combination of crime and militancy, that is compounded by a corrupt ruling elite backed up by an insensitive bureaucracy. Over the years, the city has sunk into social chaos and insecurity, precipitated by economic adversity. Once a glorious city: Peshawar in the 1960s, was a culturally-throbbing city with activities going on from staging classic English plays to playing and experimentation in modern music. Peshawar University was the 'epicenter' of much cultural and artistic experimentation and was seen as one among the most progressive, liberal and forward looking institutions. Now, fast forward to 2002-2007 when Peshawar hardly survived under the 'Islamic rule' of the bigoted rule of Muttahida Majlise Amal (MMA) that killed the spirit and soul of the city. Pictures of females cannot appear on billboards and absolutely not in...

Perpetually hostile neighbors: India and Pakistan are in a state of active hostility-if not war or at least two proxy wars. At least 6 of Pak Army 9 Corps are on the border with India. Of the 6, I Corps and II Corps are heavy armor strike corps. At least 7 of Indian Army 13 Corps are on the border with Pakistan. Of the 7, X Corps and II Corps are powerful strike corps (strike corps is an offensive formation). Additionally, all of India Holding Corps, that are directly facing Pakistan, also have significant offensive capabilities. In effect, 66 percent of Pak Army holding and strike formations are directly facing India. In effect, more than 53 percent of Indian Army holding and strike formations are directly facing Pakistan. Both are poised for war: Pakistan maintains-and sustains-critical assets in the northeast that have managed to pin down India XV Corps, IX Corps, XVI Corps, XIV Corps, XI Corps, X Corps and II Corps. India 4 Armored Brigade, 340 Mechanized Brigade, 11 and 12 Infantry Divisions, Jaisalmer Air Force Base, Utarlai Air Force Base and Bhuj Air Force Base maintain a threatening-offensive posture. India is reportedly supporting anti-Pakistan Baloch elements as well as anti-Pakistan Taliban factions. India is bent upon projecting power into Afghanistan that Pakistani establishment sees as encirclement of Pakistan. And, India-post Operation Parakram- has been investing into a 'Cold Start War Doctrine' involving joint operations by Indian Army, Air Force and Navy; eight integrated battle groups with armor, artillery, infantry and combat air support. High on defense spending: For FY 2009, India defense spending will rise by close to 50 percent to a colossal $32.7 billion (according to Jane Information Group). India is planning it biggest-ever arms purchases; $11 billion fighter jets, T-90S tanks, Scorpion submarines, Phalcon airborne warning and control system, multi-barrel rocket launchers and an aircraft carrier. At $32.7 billion India defense spending...

Division of water resources: Partition of the sub-continent in 1947 divided the largest contiguousirrigation system within theIndus Rive, while many of the canal head-works remained withIndia. The ad-hoc division led to a serious water conflict, when India stopped the water supply toPakistanon April 1, 1948.The World Bankfacilitated negotiations between India and Pakistan, backed with technical expertise. The resulting agreement, known as theIndus Waters Treaty(IWT), was signed in 1960. Under this treaty, Pakistan obtained exclusive rights to use 135 million acres-feet (MAF) of the water of the Indus,Jhelumand the Chenab. India retained the rights to use 33 MAF of the three eastern rivers: Ravi,Beasand Sutlej. The Bank also created theIndus Basin DevelopmentFund (IBDF) of $895 million for Pakistan to develop dams and link canals on the three western rivers. (India contributed $174 million to the IBDF.) India developed better: Under a comprehensive master plan for the utilization of its allocated share of the water, India constructed link canals and dams having a storage capacity of 17 MAF. In Punjab state alone, this resulted in a 54 percent increase in the sown area. Canal water supplywas supplemented by simultaneous installation of tube-wells supported by power supply throughhydroelectric projectson the rivers. This transformed Punjab and Haryana, once deficient in food grain, in to India '¿bread basket' in the mid-1970s. …and Pakistan did not: In Pakistan, on the other hand, poor water management policies led to salinity and water-logging problems. Meanwhile, due to high sedimentation, the three dams on the Pakistani side have seen their storage capacity go down from 16 MAF to 12 MAF. At the same time, Pakistan allowed 35 MAF of water to escape into the sea every year. Pakistan storage-to- water-flow ratio is only 11 percent, against India 52 percent on the allocated eastern rivers. India hydropower potential utilization better: India has a hydropower...

Division of water resources: Partition of the sub-continent in 1947 divided the largest contiguousirrigation system within theIndus Rive, while many of the canal head-works remained withIndia. The ad-hoc division led to a serious water conflict, when India stopped the water supply toPakistanon April 1, 1948.The World Bankfacilitated negotiations between India and Pakistan, backed with technical expertise. The resulting agreement, known as theIndus Waters Treaty(IWT), was signed in 1960. Under this treaty, Pakistan obtained exclusive rights to use 135 million acres-feet (MAF) of the water of the Indus,Jhelumand the Chenab. India retained the rights to use 33 MAF of the three eastern rivers: Ravi,Beasand Sutlej. The Bank also created theIndus Basin DevelopmentFund (IBDF) of $895 million for Pakistan to develop dams and link canals on the three western rivers. (India contributed $174 million to the IBDF.) India developed better: Under a comprehensive master plan for the utilization of its allocated share of the water, India constructed link canals and dams having a storage capacity of 17 MAF. In Punjab state alone, this resulted in a 54 percent increase in the sown area. Canal water supplywas supplemented by simultaneous installation of tube-wells supported by power supply throughhydroelectric projectson the rivers. This transformed Punjab and Haryana, once deficient in food grain, in to India '¿bread basket' in the mid-1970s. …and Pakistan did not: In Pakistan, on the other hand, poor water management policies led to salinity and water-logging problems. Meanwhile, due to high sedimentation, the three dams on the Pakistani side have seen their storage capacity go down from 16 MAF to 12 MAF. At the same time, Pakistan allowed 35 MAF of water to escape into the sea every year. Pakistan storage-to- water-flow ratio is only 11 percent, against India 52 percent on the allocated eastern rivers. India hydropower potential utilization better: India has a hydropower...

Division of water resources: Partition of the sub-continent in 1947 divided the largest contiguousirrigation system within theIndus Rive, while many of the canal head-works remained withIndia. The ad-hoc division led to a serious water conflict, when India stopped the water supply toPakistanon April 1, 1948.The World Bankfacilitated negotiations between India and Pakistan, backed with technical expertise. The resulting agreement, known as theIndus Waters Treaty(IWT), was signed in 1960. Under this treaty, Pakistan obtained exclusive rights to use 135 million acres-feet (MAF) of the water of the Indus,Jhelumand the Chenab. India retained the rights to use 33 MAF of the three eastern rivers: Ravi,Beasand Sutlej. The Bank also created theIndus Basin DevelopmentFund (IBDF) of $895 million for Pakistan to develop dams and link canals on the three western rivers. (India contributed $174 million to the IBDF.) India developed better: Under a comprehensive master plan for the utilization of its allocated share of the water, India constructed link canals and dams having a storage capacity of 17 MAF. In Punjab state alone, this resulted in a 54 percent increase in the sown area. Canal water supplywas supplemented by simultaneous installation of tube-wells supported by power supply throughhydroelectric projectson the rivers. This transformed Punjab and Haryana, once deficient in food grain, in to India '¿bread basket' in the mid-1970s. …and Pakistan did not: In Pakistan, on the other hand, poor water management policies led to salinity and water-logging problems. Meanwhile, due to high sedimentation, the three dams on the Pakistani side have seen their storage capacity go down from 16 MAF to 12 MAF. At the same time, Pakistan allowed 35 MAF of water to escape into the sea every year. Pakistan storage-to- water-flow ratio is only 11 percent, against India 52 percent on the allocated eastern rivers. India hydropower potential utilization better: India has a hydropower...

Demographics of Swat: Of the over 5 million residents of Swat, nearly 2 million have now been internally displaced (including people from FATA and Malakand Division). Administratively, Swat is divided into 65 Union Councils and 1 Municipal Committee. Politically, Swat comprises of two sub-divisions, Matta and Swat. Around 60 percent of Swat population is dependent on agriculture; a family at an average owns a hectare of land and the literacy rate is well below the national average. Matta, surrounded by the Hindu Kush, is famous for its orchards of apples and peaches but 3 out of 4 residents make $2 a day or less. The Government of Pakistan (GOP) and its military are now bracing for another major operation in Waziristan against Baitullah Mehsud, the supreme leader of Tehrike Taliban Pakistan (TTP). As a consequence, the influx of Internally Displaced Persons (IDPs) is surely expected to rise (the government is yet to announce a firm date for the return of Swat IDPs). Agricultural mix: Swat has 98,100 hectares cultivable while 408,175 hectares remain uncultivable. Swat current fruit production stands at: 5,000 tons of citrus (612 hectares), 50,000 tons of various kinds of apples (4,110 hectares), 6,500 tons of loquats (600 hectares), 41,000 tons of peaches (4,300 hectares), 6,000 tons of plums (6,000 hectares), 7,500 tons of pears (415 hectares) and 300 tons of grapes (60 hectares). Additionally, the Swat Valley produces 110,000 tons of onion (4,000 hectares), 14,000 tons of potatoes (761 hectares), 66,000 tons of tomatoes (6,000 hectares), 800 tons of turmeric (90 hectares) and 4 tons of chilies (3 hectares). According to a survey by the National Agricultural Research Center (NARC), nearly 48% of Pakistan total fruit is produced by the North-West Frontier Province with the Swat Valley being a major contributor. Another NARC survey concludes that a total of 84,524 hectares of land could be added to the cultivable category with little effort and some basic...

Demographics of Swat: Of the over 5 million residents of Swat, nearly 2 million have now been internally displaced (including people from FATA and Malakand Division). Administratively, Swat is divided into 65 Union Councils and 1 Municipal Committee. Politically, Swat comprises of two sub-divisions, Matta and Swat. Around 60 percent of Swat population is dependent on agriculture; a family at an average owns a hectare of land and the literacy rate is well below the national average. Matta, surrounded by the Hindu Kush, is famous for its orchards of apples and peaches but 3 out of 4 residents make $2 a day or less. The Government of Pakistan (GOP) and its military are now bracing for another major operation in Waziristan against Baitullah Mehsud, the supreme leader of Tehrike Taliban Pakistan (TTP). As a consequence, the influx of Internally Displaced Persons (IDPs) is surely expected to rise (the government is yet to announce a firm date for the return of Swat IDPs). Agricultural mix: Swat has 98,100 hectares cultivable while 408,175 hectares remain uncultivable. Swat current fruit production stands at: 5,000 tons of citrus (612 hectares), 50,000 tons of various kinds of apples (4,110 hectares), 6,500 tons of loquats (600 hectares), 41,000 tons of peaches (4,300 hectares), 6,000 tons of plums (6,000 hectares), 7,500 tons of pears (415 hectares) and 300 tons of grapes (60 hectares). Additionally, the Swat Valley produces 110,000 tons of onion (4,000 hectares), 14,000 tons of potatoes (761 hectares), 66,000 tons of tomatoes (6,000 hectares), 800 tons of turmeric (90 hectares) and 4 tons of chilies (3 hectares). According to a survey by the National Agricultural Research Center (NARC), nearly 48% of Pakistan total fruit is produced by the North-West Frontier Province with the Swat Valley being a major contributor. Another NARC survey concludes that a total of 84,524 hectares of land could be added to the cultivable category with little effort and some basic...