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Economic Reforms

Alternative energy in Pakistan (2017)

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Alternative energy in Pakistan (2017)

The Oil & Gas Regulatory Authority (OGRA) of Pakistan has introduced a price ceiling on Liquefied Petroleum Gas (LPG) by capping it at PKR 910 per 11.8 kg domestic cylinder. According to one news item (Express Tribune, 3 March), LPG marketing companies have protested against this intervention and termed it a move that will lead to
shortages, promotion of black market activities, overcharging, and social unrest.

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A frivolous lawsuit (2017)

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A frivolous lawsuit (2017)

Asad Malik became a cellular service subscriber of Herring Sky, a private limited company, in 2012. For this purpose, Asad executed the customer services agreement. He had a postpaid connection and had also subscribed to international roaming facility provided by Herring Sky. During July 2013, he went abroad on a
business trip and was utilizing the international roaming facility provided by Herring Sky. While on the trip, he found out that his cellular service had been terminated. He contacted the customer services to inquire about the reason and was informed that his account services had been suspended because he had a liability of Rs. 55,000/-, which far exceeded his credit limit of Rs. 15,000/-.

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Justifying employment termination (2017)

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Mazoomdar was employed under an employment contract as a supervisor at Erste (Pvt) Ltd. Erste had its offices in a few major cities in Pakistan. Its clients were mainly multinational FMCG brands operating in the country. In November 2006, Erste transferred Mazoomdar from its Peshawar office to its country headquarters located in Karachi. Upon Mazoomdar’s failure to join his new place of posting at Karachi, he was terminated from service. Mazoomdar took legal action against Erste and filed a lawsuit in the Labour Court, Peshawar. After the lawsuit was dismissed for lack of jurisdiction, he then approached the court of Civil Judge, Peshawar. This case study is based on the case proceedings of Mazoomdar versus Erste in the court of Civil Judge, Peshawar.

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Not just a purchase (2017)

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Not just a purchase (2017)

Behram entered into an agreement with Ahsan to purchase a real estate property. Ahsan was implied to be acting on behalf of the true owners of the property. Behram paid for the property, took its possession and the title of ownership was transferred to his name. The true owners approached the court seeking to regain ownership of the property as Ahsan was not acting on their behalf while carrying out the transaction. Trial court accepted the plea of the true owners and ordered for annulment of the transaction and ordered Ahsan to pay back the full amount of transaction along with interest for the period. Ahsan was also ordered to pay the cost of litigation to both the parties. Behram and Ahsan separately challenged the decisions against them. High Court upheld the original decision of the trial court.

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Recovering Losses (2018)

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Recovering Losses (2018)

SK Mills (Sugar manufacturing mills) entered in a contract for the sale of sugar with Nasir and Ali.
Nasir and Ali made the full payment in advance to the SK Mills for the delivery of sugar. However, the SK Mills failed to deliver the sugar as per the delivery order; thus signing a new forward contract. The delivery kept on getting delayed each time causing both the parties to sign a new forward contract. Soon Nasir and Ali defaulted on the forward contracts and faced the loss of clientele. Consequently, a lawsuit was filed against the SK Mills in the High Court of Sindh with regards to non-delivery of sugar as per the delivery order. Moreover, Nasir and Ali also demanded the fulfillment of specific terms of the agreement and additionally claimed damages amounting to Rs. 1,000,000,000. Moreover, they requested for the temporary injunction (where court prohibits the defendants from doing a specific act in this particular case; the court directed the SK Mills not to sell sugar to the extent of other party’s claim nor create any third party interest till the disposal of the suit).

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Privatization of Environmentally Critical Spaces

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Pakistan in the recent years has come to terms with several unexpected natural disasters. These events were inimical to infrastructure and livelihoods.Thousands of people have been injured, displaced and killed because of unforeseen floods, droughts, and cyclones. Such natural hazards are a stark reminder of the fact that Pakistan is one of the most vulnerable countries to the effects of climate change. According to the Global Climate Risk Index,Pakistan ranks 33rd overall on the index and 8th on the list of 10 countries most affected by climate change from 1998 to 2017.

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How Strong is the Moral & Economic Foundation of Pakistan” Case of Private Property Rights

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How Strong is the Moral & Economic Foundation of Pakistan” Case of Private Property Rights

Private property right is a basic moral and economic precondition of attaining individual excellence. It is the bedrock institution of capitalism and is essential for the preservation of individual freedom. The right to own property (in any shape or form) is intrinsically linked to personal wellbeing, which in turn maximizes the overall wealth of society.

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Foreign Exchange Regulations in Pakistan

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Foreign Exchange Regulations in Pakistan

The Policy Research Institute of Market Economy (PRIME) has published a review of the foreign exchange regulations in Pakistan. The report notes that regulatory policies by the State Bank of Pakistan and other regulators are not conducive to attracting FDI in the country. These regulatory constraints inhibit entry, proper utilization and exit of funds for any foreign investor to invest in startups and venture capital firms in Pakistan. Internationally, countries whose GDP has grown at high rates have been countries which relatively have lesser restrictions on entry of capital as well as foreign direct investment. The publication includes case studies of China, India, Malaysia and Turkey. These countries started off with similar.

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Why state should not be in business: A case of Pakistan Steel Mills

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State-Owned Enterprises (SOEs) are used globally by governments for venturing into commercial activities. In Pakistan, there are 204 SOEs categorized into Public Sector Companies (186), Development Finance Institutions (8) and Federal Authorities (10). The Public Sector Companies are further classified as commercial (138) and non-commercial (48)1 . A significant number of SOEs fall in the promotional and advocacy sector followed by energy, transportation and financial sector.

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Easing Import of 3D Printers

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Easing Import of 3D Printers

The world is entering the fourth industrial revolution which is mostly based on technologies like robotics and 3D printing. Engineers and designers are now already working remotely and making products with high precision through the use of 3D printers. 3D printing offers an excellent avenue to improve housing, food supplies, healthcare and educational facilities in developing countries.

Unfortunately, Pakistan has rather restrictive policies for the import of 3D printers, with the procedure being cumbersome and time-consuming.  In 2016, Pakistan placed a ban on import of 3D printers, citing threats to national security as these printers could be used to manufacture illicit weapons. While it is correct that some components of weapons can be made through this technology, 3D printing of the most important parts like the chamber or the barrel is extremely difficult requiring high resistance to heat and explosion. It is pertinent to note that it is much easier to make such parts from a milling machine than a 3D printer. In any event, in Pakistan the manufacture of weapons is prohibited without a valid license and the penalty for doing so is up to 7 years in prison.

On the other hand, competing countries like UAE are becoming a hub for this state-of-the-art technology. Countries like Jordan and Thailand have also relaxed import regulations on 3D printers in order to kickstart their industries, health and education sector. Thus, it is high-time for Pakistan to take a cue from these countries and allow the import of 3D printers.

Currently, Pakistan faces acute shortfall of ventilators amid COVID-19 pandemic. In addition, shortage of other healthcare products such as facemasks and safety kits for medical experts is also posing serious challenges. In this regard, 3D printing technology can play a pivotal role in meeting the high demand for such essential commodities. It will not only benefit the health sector but also other sectors such as academic institutions, industries and housing sector. However, this is possible only if the government allows for and streamlines the import of 3D printers.

Recently, the commerce minister has issued a notification allowing import of 3D printers to ensure availability of ventilators. However, this is a late call as fatality is increasing with each day. For now, the numbers are expected to surge as it would take some time to manufacture ventilators from imported 3D printers. On a positive note, a group of volunteers in Lahore which includes doctors, biomedical professionals, academics and engineers have used 3D printing technology to design a device that allows a single ventilator to support multiple patients at a time.

In Pakistan, the awareness about 3D modeling and printing is gradually increasing and members of academia along with other industries are now approaching the laboratory. The 3D printers are being used in some of the education, engineering and health departments. Since it is a new field, it will require exposure and training with the proper availability of hardware and software.

Given the current situation, there are a few learning points. Due to the intricate nature of the internet of modern economies, no country can afford to completely abolish the use of 3D printers. Therefore, regulation rather than prevention should be government’s priority when it comes to handling the proliferation of 3D printing technology. It is imperative that the government withdraw tariff and non-tariff barriers on medical equipments at least till the time the crisis is over, and not just for three months. In order to facilitate the use of 3D printers for industrial, medical and academic purposes, trainings should be provided through public-private partnership.

If we continue to restrict use of such technologies, the digital divide between us and the rest of the world will accentuate. We need to embrace the technology rather than be left out.

The Footprints of Leviathan: Dwindling Forests of Pakistan

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The Footprints of Leviathan: Dwindling Forests of Pakistan

Pakistan’s forests have been degenerated at the world’s highest rate. In its efforts for afforestation and conservation, Pakistani state has done a range of experiments from complete control to community participation to farmers’ cooperatives. It has continued to view forest with a timber-lens consistent with colonial legacy whereas it has not achieved its objectives of conservation. This paper considers the efforts of Pakistani state largely inconsequential and somewhat counterproductive. The paper makes the case of liberty in jungles based on private property rights, free trade of timber and market-friendly policies.

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