• The economic indicators in ‘Recovery thickens’ (IE, September 26) reveal that the economy is back on track and the performance of key sectors — with 7.1 per cent output expansion of six core industries, especially in cement and coal output on a year-on-year basis, and 22.7 per cent growth in excise duty collections — is sufficient proof. The stock market indices too reveal a sense of things being well. This points to the need for proactive action by the banking system to support the industrial and infrastructure sectors. The flow of bank lending will accelerate growth. On the other hand, there could be gradual withdrawal of the concessions and incentives granted through fiscal and monetary stimuli.

— K.U. Mada

Mumbai

Aiding Pakistan

•The US is very generous regarding Pakistan. Although Pakistan is really backward in many fields, it couldn’t make proper use of US aid. The Kerry-Lugar Bill that authorises $7.5 billion in non-military aid to Pakistan over the next five years also imposes checks and conditions on military aid, including a semi-annual report on how the aid is being utilised. But then, Pervez Musharraf admitted that Pakistan used US aid in military preparations against India to a great extent instead of social development. This is not only unfair but also dangerous for India. Af-Pak special envoy Richard Holbrooke has said that Al-Qaeda is seeking nuclear secrets from Pakistan. It’s happening only because of the Pakistani system. Nevertheless, some of the thorniest problems facing the Obama administration — Iran and North Korea — have direct links to Pakistan. It’s clear that Pakistani soil nurtures terrorism and the UN should look at it.

... contd.