Disqus - Latest Comments for Panjabijutt

Re: Man commits suicide because of alleged MCB loan recovery staff harassment

Adnan — Tue, 06 May 2008 04:33:53 -0000

Absolutely agree with you. As I mentioned, the industry is still in its infancy and will take time to settle and mature. People in Pakistan have never had this offered to them before and many do not fully understand the concept. It is appealing to many to be able to know they can have something almost immediately and worry about paying for it at a later date.
Its taken decades and more for the capitalist society to develop in many countries and the playing field was equal for the borrowers and lenders, both grew to learn about the system. The Pakistani nation has been thrust in to it at the deep end, where the lenders know exactly what they are doing (through their experiences abroad) and the Pakistani people are going to have to learn the hard way.

Re: Man commits suicide because of alleged MCB loan recovery staff harassment

Adnan — Mon, 05 May 2008 23:43:02 -0000

Hi Osama, yes this made big news in Pakistani media. However, is it really big news? As sad as it is, regardless of whether the man was driven to suicide by the debt-collectors, is this not just a natural occurrence in a capitalist society. You hear similar stories regularly in the Western Media, be it the UK or the USA. You hear regular stories here in Pakistan as well where someone has committed suicide just because they could not pay back to the money lenders or could not feed their families etc etc. People will always live beyond their means, either out of choice or out of necessity. Most people, the have NOTS, will borrow money and worry about paying it back later and the consequences of not paying it back. A phase that all capitalist societies have gone through and still do so. Just look at the Sub-Prime mortgage crisis from the USA.
Having said that the lenders (Banks in Pakistan) do need to have a responsible lending policy. There needs to be sufficient checks in place to make sure that the borrower has the means to pay back the loan. Banks will not do this naturally of their own back. This is where legislation is needed from the government or the state bank. A legislation that can be enforced. Lenders and borrowers have not come to terms with this in the developed countries which have been doing this for decades. How does one expect the Pakistani nation to come to terms with it in a matter of couple of years. The lending industry in Pakistan is still in its infancy and needs to mature. This will take time.
As far as the responsibility of MCB in this case is concerned, well obviously the whole responsibility lies with MCB. They cannot just outsource the work to others and wash their hands of the problem. They need to be responsible and be held accountable for anyone they sub-contract to for their behaviour and actions. They appointed this sub-contractor. The responsibility thus is solely theirs (MCB).

Re: A Question - Why should companies care about you anyway?

Adnan — Mon, 05 May 2008 23:00:23 -0000

Waqas, I agree that such an occurrence has not happened in Pakistan, YET! Well not on a massive scale where whole communities have been left desolated by a company moving out. This is the natural consequence of a Capitalist society. Once again re-affirms the statement by Milton Friedman that the main goal of a privately owned organisation is to maximise profit for its shareholders. Hence why if a company can produce its products at a cheaper cost elsewhere then they will simply follow that lead. Public organisations obviously have a different objective and of course different problems.
Pakistan has never had a manufacturing industry at a scale to affect whole communities. Just look at all the ports around the UK where back in the 19th and early 20th century 80% of the worlds cotton used to pass through (although UK never had a cotton production!!). Cities like Liverpool and Manchester. When the cotton trade dried up from these ports, the cities were literally left derelict. It has taken decades and tens of billions of pounds investment from the government and the European Union for the cities to come back to life.
Nowadays, although CSR is not compulsory governments in the western world do expect companies to offer some recompense to their staff if they shut down an operation. Most companies will help provide new training and or grants for employees to change their careers. Employees are also provided with additional resources to find new employment. Unfortunately, I cannot see that happening in Pakistan for a long time to come. Large corporations operating in Pakistan do not have to deal with trade and labour regulations which are provided as a safeguard for workers abroad. As I mentioned previously, CSR is a public opinion driven concept. There is no consensus in Pakistan where public opinion is concerned. There is virtually no law implemented (although there are plenty on the statute) to protect workers in Pakistan.