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C O N F I D E N T I A L SECTION 01 OF 03 KARACHI 000040 
 
SIPDIS 
 
REF: KARACHI 23 
 
E.O. 12958: DECL: 02/05/2020 
TAGS: PGOV PTER PK
 
SUBJECT: KARACHI: MQM AND PPP SPAR OVER LAW AND ORDER, LOCAL 
GOVERNANCE 
 
Classified by: Consul General Stephen G. Fakan, Reasons 1.4 (b) and 
(d) 
 
¶1.  (C) SUMMARY:  The debate over the future of local governance in 
Sindh Province continues without resolution, while the current local 
government's tenure expired in October 2009.  The terrorist attack in 
Karachi on Ashura, and several recent periods of elevated targeted 
killings in the city have been the backdrop to this debate (reftel). 
Conflicting positions among the Pakistan People's Party (PPP) and 
Muttahida Qaumi Movement (MQM) are preventing the Sindh government 
from passing an amendment to the local body ordinance.  In an 
unexpected development on January 16, both parties agreed to appoint 
Caretaker Administrators - but again without a formal mechanism to 
execute that decision.  Fiery insults and a walkout by MQM 
highlighted the early February actions, requiring high-level PPP and 
MQM intervention to return parties to the negotiating table.  The 
Sindh Assembly will take up legislative consideration beginning on 
February 8. END SUMMARY. 
 
------------------------------------ 
BACKGROUND: FEUDS ON MULTIPLE FRONTS 
------------------------------------ 
 
¶2. (U) The debate over the future of Local Governance in Sindh 
Province continues without resolution, while the current local 
government's tenure expired in October 2009.  Coalition partners (MQM 
and PPP, with the ANP on the periphery) have yet to agree on a path 
forward, instead seeking extensive amendments to the existing 
governance system and working to diminish the other party's strength 
in Karachi and across the Province. 
 
¶3. (U) The terrorist attack in Karachi on Ashura, and several recent 
periods of elevated targeted killings in the city have been the 
backdrop to this debate (reftel).  This violence pits the MQM against 
the PPP on law and order -- the Karachi Nazim Mustafa Kamal versus 
the Sindh Home Minister Zulfiqar Mirza, each blaming the other for 
not suppressing the onslaught. 
 
------------------------------------- 
ELECTIONS, NAZIMS AND THE 1979 SYSTEM 
------------------------------------- 
 
¶3. (C) Both sides are staking out their positions with very little 
movement toward compromise in the last six months. The PPP ideally 
wishes to return to the 1979 commissioner system of provincial 
government, as it diffuses the power of elected officials and 
increases PPP influence through Chief Minister appointments.  The MQM 
seeks a continuation of the current system established under 
President Musharraf, putting elected Nazims (Mayors) at the forefront 
of local leadership - particularly critical for MQM in the urban 
centers of Karachi and Hyderabad.  However, in November 2009, Sindh 
Home Minister Mirza (PPP) told CG Fakan, that to keep the national 
and provincial coalitions together the PPP would compromise, agreeing 
to retention of the current system with some amendments. 
 
¶4. (C) Moving in fits and starts through December, the negotiations 
finally began in earnest in mid-January.  The Core Committee of the 
Sindh Provincial Assembly, in January 13 discussions, feuded over the 
role of caretaker administrators, and the details of required local 
elections, particularly timing.  MQM demanded the status quo. 
According to the Minister for Local Bodies, Agha Siraj Durrani (PPP), 
who was in the meeting, the MQM wants elections held under the 
present Nazims and will agree to Administrator-appointment only if 
elections are held within 90 days.  If elections are not held, the 
system reverts back, and the original Nazims resume office.  MQM 
Deputy of Media and LG Minister for Youth Affairs, Faisal Sabzwari, 
reiterated that the party would only concede with such assurances, 
noting that reverting back to the 1979 commissioner system would 
create unspecified "serious issues" between the parties. 
 
¶5.  (C) According to Durrani (PPP), elections under the present 
Nazims would not be fair and free because most Nazims of the 23 
districts of Sindh are hostile to the PPP and the deadlock awaits 
decision by President Zardari, as "it appears to be futile to hold 
any further meetings with MQM."  Durrani told PolOff that MQM's 
intransigence kept them from negotiating at the lengthy prior 
 
KARACHI 00000040  002 OF 003 
 
 
meetings and that "the party brings fresh demands at every meeting 
and goes back on whatever was agreed upon during the last one" in an 
attempt to maintain their hold over Sindh.  PPP also requested an MQM 
list of people whom they trust to be appointed as Administrators. 
 
¶6.  (C) The only issue agreed to in the January 13 meeting was that a 
report about the discussions, agreements and disagreements would be 
prepared for Sindh Chief Minister (PPP) and Governor (MQM) updating 
them of progress at each meeting.  Senior Minister and lead member of 
the core committee, Pir Mazhar-ul-Haq (PPP), also said that PPP wants 
documentation of everything discussed in the core meetings "as MQM 
changes its stance every time (we) meet." 
 
¶7.  (C) In an unexpected development on January 16, both parties 
agreed to appoint Caretaker Administrators (from the grade 20 civil 
servant corps) - but again without a formal mechanism to execute that 
decision.  Sindh Assembly Parliamentary Minister, Syed Sardar Ahmed 
(MQM) detailed ongoing and lengthy core committee meetings through 
February 1 as the group began drafting the resolution outlining 
party-based elections with clauses satisfactory to PPP, MQM and 
others. 
 
---------------------- 
THE FEUD GETS PERSONAL 
---------------------- 
 
¶8.  (C) On February 2 however, discussions again turned tense. Sindh 
Home Minister Mirza(PPP) launched a fiery speech during a Sindh 
Assembly meeting blaming MQM for Karachi's targeted killings 
(reftel).  LG Minister Durrani also reprimanded the Karachi Nazim for 
interfering in the Provincial government, claiming that Kamal was 
suffering from "mental imbalances."  Enraged, MQM legislators stormed 
out of the Assembly and held a press conference condemning PPP 
ministers.  As a result, the tension moved into the streets resulting 
in the killings of 11 members of PPP, MQM and ANP. That evening, the 
Sindh Governor (MQM) called CG Fakan asking him to help settle 
everyone down and to urge the parties to continue negotiations. 
 
¶9. (C) Calls between President Zardari, Prime Minister Gilani and MQM 
leader-in-exile Altaf Hussain brought assurances from the top that 
the two parties remained committed to the coalition.  But taking 
nothing to chance, Interior Minister Malik was dispatched to Karachi 
on February 3, to return all parties back to the negotiating table. 
 
¶10. (C) In a February 4 meeting, MQM assured Fakan that they will 
take the high road, but noted that the PPP and Home Minister remain 
quite rigid in negotiations.  Karachi Nazim, and Deputy Nazim 
discussed resolution details in vague language that leaves several 
outcomes open - elections would be held either within 90 or 120 days 
or not held entirely in the event of "unforeseen events" (code for 
the law and order situation).  The prevailing opinion in the PPP 
remains that these clauses provide MQM with incentive to create and 
maintain continued unrest and violence in Karachi for the stipulated 
90 days, preventing party-based elections in order to revert to their 
certain control through the original Nazims.  However, MQM contacts 
worry that, even in the absence of "unforeseen events", the PPP will 
not hold elections at all.  Comment:  Post believes that Karachi is 
in a vicious cycle where both parties may have reason to affect 
"unforeseen events," negotiate again and come to the same impasse in 
a few weeks or months.  End Comment. 
 
-------------------------------------- 
MORE TO COME, BUT WILL IT BE PROGRESS? 
-------------------------------------- 
 
¶11.  (C) The Sindh Assembly will take up legislative consideration 
beginning on February 8.  In this plan, Nazims will step down and 
hand power to caretaker administrators.  Note: Karachi Nazim Kamal is 
visibly battle-worn and depressed about losing his job. 
 
¶12.  (C) COMMENT:  While the PPP plurality in the provincial 
parliament could easily override MQM on the local government 
elections issue, the PPP requires MQM's support in the Federal 
government and in order to prevent other parties in the coalition 
from tipping the balance in the Sindh Provincial Assembly in MQM's 
favor.  MQM is taking full advantage of the situation to maintain 
 
KARACHI 00000040  003 OF 003 
 
 
their control over the two largest cities in Sindh - Karachi, the 
financial capital, and Hyderabad - both of which are currently under 
MQM Nazims.  The two parties numerically need each other, but that 
does not mean that have to like each other, or even get along. END 
COMMENT. 
 
FAKAN