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Archive for December, 2012

ایم کیو ایم الطاف حسین کو توہین عدالت کانوٹس Supreme Court of Pakistan has issued a contempt of court notice to (MQM) Killer Altaf Hussain

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اسلام آباد…سپریم کورٹ نے ایم کیو ایم کے قائد الطاف حسین کو جلسے میں عدلیہ مخالف تقریر کرنے پرتوہین عدالت کا نوٹس جاری کرتے ہوئے سات جنوری کوذاتی طور پر یا وکیل کے ذریعے پیش ہونے کا حکم دیا ہے۔ سیکریٹری خارجہ کو بھی نوٹس کی تعمیل کرانے کے احکامات جاری کر دیئے گئے ہیں۔چیف جسٹس کی سربراہی میں سپریم کورٹ کے تین رکنی بنچ نے کراچی بد امنی کیس میں عدالتی فیصلے پر عمل درآمد کیلئے دائردرخواست پر سماعت کی۔ چیف جسٹس نے ریمارکس دیئے کہ ایم کیو ایم کے قائد الطاف حسین کا یہ بیان جس میں انہوں نے کہاکہ ہے ججزریمارکس پرمعافی مانگیں ،عدلیہ کے کام میں رکاوٹ کے مترادف ہے،کیا وہ یہ چاہتے ہیں کہ عدالت اپنا کام نہ کرے؟عدلیہ کے خلاف تضحیک آمیز الفاظ استعمال کیے گئے اور عدالت کے خلاف نفرت پھیلانے کی کوشش کی گئی۔ الطاف حسین کو ذاتی طور پر یا وکیل کے ذریعے عدالت میں وضاحت کریں۔ عدالتی حکم میں کہا گیا ہے کہ الطاف حسین نے قابل احترام ججز کے بارے میں نامناسب الفاظ استعمال کیے جوتوہین آمیز بھی تھے اور دھمکی آمیز بھی۔ بادی النظر میں ایسے الفاظ توہین عدالت کے زُمرے میں آتاہے۔عدالت نے پیمرا کو نوٹس جاری کرتے ہوئے ججز کے بارے میں نازیبا الفاظ کا متن اور تحریری مواد بھی طلب کر لیا ہے۔ عدالتی حکم کے مطابق پی ٹی اے ٹیلی فونک خطاب کی اپ لنکنگ سہولت دیتا ہے جس کا غلط استعمال کیا گیا۔عدالتی حکم میں کہاگیاہے کہ پاکستان میں فاروق ستار اور بیرون ملک سیکریٹری خارجہ کے ذریعے الطاف حسین کو نوٹس کی تعمیل کرائی جائے۔سیکریٹری خارجہ کو کہا گیا ہے کہ لندن کے جس ایڈریس سے جلسے سے ٹیلی فونک خطاب کیا گیا وہ پتہ معلوم کر کے نوٹس کی تعمیل کرائی جائے۔ عدالت نے کراچی میں ہلاکتوں میں اضافے کا بھی نوٹس لیتے ہوئے چیف سیکریٹری سندھ کو وجوہات سے آگاہ کرنے کا حکم دیا ہے۔جبکہ سندھ کے آئی جی اور ہوم سیکریٹریز کو بھی شوکاز نوٹسز جاری کر دیئے گئے ہیں۔

 

 

 

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Our national disgrace

When a most foolish prime minister after committing an avoidable blunder handed over on a gilded platter this country to his army chief in October 1999, there was, to put it mildly, from a nation imbued with democratic principles, a strange outpouring of widespread joy. The love of and desire for democracy was shelved.

Gen Pervez Musharraf inherited a country that was broke, and that was regarded as an international pariah due to its nuclear ambitions. Initially he did not do a bad job of running it, with a cabinet of 12 citizens, and his popularity ranking by and large was favourable. We chugged along, with no help from the outer world, with no internal upheavals. Then came 2001 and 9/11, and Musharraf was established as one of the world`s most sought after leaders. Pakistan`s geographical location and his wink-of-an-eye decision had seen to it.

Then he got carried away, it all went to his head, by April 2002 he had `lost it`. His referendum was the beginning of his end. He then further `lost it` by picking out the worst possible political actors on the national stage with whom to form a political party and run away with the elections he was bound, by the Supreme Court, to hold at the end of that year. His choice of manpower on the political side could not have been worse (well, yes, judging by what we have today, perhaps it amazingly could have been).

To form his new assemblies some bright spark advised him to decree that all those standing for election must be graduates. Utterly ridiculous, and against all democratic norms, because not only did it shut out the larger majority of the nation from offering themselves to the electorate but it opened wide the door to corruption (which until then had been held within reasonable bounds).

Musharraf knew his country-kin, he knew their propensity for corruption and he must have known that a large number of those he sought to install in his parliament would conjure up bogus degrees — which of course they did with his encouragement. He was not ignorant as to how entrenched was corruption. At the end of 1999, in an interview with the BBC, when asked how corruption in the armed forces compared with that of the political classes — Mickey (Kamran) Shafi will like this one — he responded, curtly and aptly “We are all of the same stock.”

So, no one knew, or even cared, at that time how many bogus degrees had been produced before the Election Commission, and exactly how many cheats and crooks entered parliament — though we did have a fair idea from the calibre of those that sat there.

The graduate requirement was operable for the 2008 elections and so more bogus degrees were cooked up by the new lot of aspiring legislators. We now know much more. On orders passed by the Supreme Court, the Higher Education Commission (HEC) has reportedly sent off the degree certificates produced by 934 parliamentarians for verification (the total number of these leech-like beings is 1,170). Apparently 161 certificates were illegible — what does that tell us as to their validity?

It seems that a dozen or so cheats and crooks have already been disqualified by our courts and over 50 cases are pending. The most famous legislator allegedly with a bogus degree is the man in charge of the law ministry who claims to hold a doctorate from a university that sounds like an Italian ice cream factory.

The media, particularly the press, has been active in its coverage of this national disgrace — and must be given due credit. `Civil society` which reared its head in 2007 has not been too vocal, there have been no marches or demos against the cheats, charlatans, con-persons and four-flushers who have passed themselves off as legislators.

The two intrepid tilters at windmills, friends Naeem Sadiq and Isa Daudpota, appealed in April to the Chief Justice of Pakistan pleading that he order that the parliamentarians` degrees be verified and those found with fake degrees be disqualified immediately and barred from ever again standing for election.

Last month they sent him a second appeal requesting that he take legal action against the CEC or Chief Election Commissioner (current and previous) for failing to verify the declared degrees and allowing cheats and crooks to sit in our parliament. The fault that they are where they are lies entirely with the CECs.

The CEC and, by extension, the HEC must shoulder the blame for this unacceptable state of affairs and see that the matter is sorted out as per the orders of the Supreme Court and as per accepted norms of honesty. All who have sat in parliament between 2002 and 2007 and all who now sit there must share the guilt for having connived and acquiesced with gross moral corruption. The universities of the country must cooperate, and not in their turn cheat and falsify, in weeding out the bogus degrees and by advising the HEC which in turn should make public the list of all the criminals who have conned us.

To top it all, when on the subject of connivance and acquiescence, we had the chief minister of Balochistan, a `nawab` no less, Aslam Raisani, who recently when uttering on the subject of the holders of fake degrees in his assembly (13 members of whom allegedly stand accused) is quoted (this newspaper June 30) as having stated that “a degree is a degree whether fake or genuine”. If such be the belief and thinking of our legislators, then not even God Almighty can save this country from its moral morass.

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PARLIAMENTARY CROOKS: How Crooks Rule Pakistan-Nearly 70 percent of Pakistani lawmakers don’t file taxes

 

“Those who are too smart to engage in politics are punished by being governed by those who are dumber.”

 Plato quotes (Ancient Greek Philosopher He was the world’s most influential philosopher. 428 BC-348 BC)

 

 

Nearly 70 percent of Pakistani lawmakers don’t file taxes – group

ISLAMABAD (Reuters) – Almost 70 percent of Pakistani lawmakers did not file income taxes last year, an investigative journalism group said on Wednesday, highlighting deep flaws in a taxation system that has drawn repeated criticism from Western aid donors.

The Center for Investigative Journalism in Pakistan released a report based on leaked tax returns, marking the first time that the records of 446 lawmakers and ministers have been published and focusing scrutiny on individuals ahead of polls next year.

Pakistan’s inability to raise revenue has constrained government spending, depriving schools and hospitals of funds and exacerbating a power crisis, causing widespread hardship in the nuclear-armed country of 180 million people.

Western allies have poured billions of dollars in aid into Pakistan, worried that growing public anger may boost recruitment to Islamist militant groups threatening to destabilise Pakistan and beyond.

But the aid has not been nearly enough to plug the huge gap between members of the elite, who often pay little tax, and the poor who desperately need the public services taxes should fund.

“This is what the people of Pakistan are upset about,” said Jehangir Tareen, a trim, silver-haired businessman who paid the most tax in the National Assembly last year. He tried to set a precedent by making his returns public but no one followed suit.

“Taxes are the beginning and end of reform in Pakistan,” said Tareen, who gave up his seat in parliament in frustration over his inability to push changes. “Right now the rich are colluding to live off the poor.”

Umar Cheema, an award-winning journalist heading the Center for Investigative Journalism, said he hoped the report would make members of parliament more accountable to voters.

Cheema took legislators’ identity card numbers from their public election nomination papers, then convinced employees at the Federal Board of Revenue to leak the tax returns related to the identity numbers. It took him nine months to collect the data.

POOR ENFORCEMENT

The report highlights why Pakistan has failed to improve its tax collection rates: politicians benefit from a lax regime. No one has been convicted of income tax evasion in 25 years and few Pakistanis see a failure to pay tax as shameful.

Although lawmakers have about $25 (15.48 pounds) a month deducted from their basic pay in tax, almost all have second incomes.

“They built this system for their own benefit,” said tax expert Ikramul Haq. Poor laws and loopholes meant lawmakers often have their income exempt from tax, he said.

Huge swathes of the economy, like agriculture, are virtually exempt. Specially designated products also benefit from “zero-ratings” and are not subject to any tax.

“We want to cut down on zero ratings and loopholes,” said Ali Arshad Hakeem, the head of the Federal Board of Revenue. He has vowed to crack down on tax cheats.

“Parliamentarians are just a subsection of the population we want to become compliant,” he said.

Enforcement is so poor that paying tax is almost voluntary, another revenue official said. About one percent of Pakistanis file tax returns.

The investigative group said it had not been able to find tax returns for 35 out of 55 government ministers, including Interior Minister Rehman Malik.

Finance Minister Hafiz Sheikh was among those who did file, paying $1,700 in tax on his ministerial salary. His money from private equity funds would be exempt, a tax official said. He spent more on his electricity bill than his taxes, according to a federal tax record seen by Reuters.

The interior and finance ministries did not return calls or emails inquiring about tax obligations for ministers. Visits by a Reuters reporter also did not yield any comments.

Foreign Minister Hina Rabbani Khar paid $670, the investigative center said. Her spokesman said she paid $1,700, more than most. Her agricultural income and a small dividend from up-market restaurants she co-owns were exempt, he said.

Among the ordinary members of parliament whose tax returns the investigative group was unable to find is Mehboob Ullah Jan, a former secretary for religious affairs.

He is often pictured wearing a traditional flat cap, handing out aid to poor families fleeing fighting in his native northwestern Pakistan.

Jan has assets of more than $30 million, making him the country’s richest legislator, according to an analysis of asset declarations by the Pakistan Institute of Legislative Development and Transparency, an Islamabad-based think-tank.

Jan did not return calls seeking comment.

The average Pakistani legislator has assets of $800,000, the investigative center’s study of their declarations found. Yet of those who paid tax, most paid less than $1,000, it said.

Former minister and Georgetown University graduate Mushahid Hussain Syed paid less than a dollar in tax, the center said. The senator was attending a conference in Bali but sent an email disputing the report and saying he had paid $6.

“I was not a Senator then, my source of support was from my family’s agricultural income and lecture honoraria,” he told Reuters.

According to his tax record, Syed paid $6 but had $5 due as a refund.

“RIDDLED WITH HOLES”

The report makes troubling reading for Pakistan’s donors. Much of their aid supports services normally funded by state revenues.

Britain has begun a five-year, billion dollar project to improve education in Pakistan. The United States has given Pakistan more than $3 billion over the past two years.

Pakistan also owes the International Monetary Fund (IMF) $7 billion. The IMF has repeatedly demanded Pakistan widen its tax base as a precondition of possibly rescheduling loan repayments.

“The tax net is riddled with holes,” said Jeffrey Franks, a regional advisor to the IMF.

Most countries collect between 20 to 40 percent of their economic output in tax. In Pakistan, less than 10 percent is collected, Franks said.

Pakistan revenue authorities say 0.57 percent of adults pay income tax and the number is steadily declining.

“People know that the elites, the government, are corrupt but they don’t understand how the corruption works,” said report author Cheema.

“If our rulers are not paying for themselves, why should taxpayers in other countries pay for them?”

Part of the problem with going after tax evaders is the poor state of records at the Federal Board of Revenue. It’s hard to distinguish ineptitude from corruption, officials said.

About three quarters of the time, people’s declarations of what they paid did not match the actual payments, the officials said. An official said authorities never really tried to match up the records: “Oh dear God, no!” he laughed.

(Editing by Michael Georgy and Robert Birsel)

Copyright © 2012 Reuters

This video has been hacked by cyberterrorists of MQM and defaced. This was done at the direction of Pakistan’s No.1 Terrorist, Altaf Hussain

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Rs.7 Billion a Day Corruption: “Jeay Bhutto, Jeay Zardari,Tum Nay Pakistan Ki Daulat, Loot Li Sarey, Qaum Ko Kardi Maut He Pyari, Jeay Bhutto, Jeay Zardari!”

LETTER TO EDITOR

December 13th, 2012

 

7 Billion a Day Corruption

The NAB sticks to its statement of daily corruption of 7 billions in Pakistan.

The Cabinet holds a heated discussion on such an assertion by the NAB.

The PM appoints a committee of ministers to probe into this allegation.

Only a fool would expect the ministers to blame themselves in their findings !

Allah Allah Khair Sallah.

Let’s prepare ourselves for even more corruption per day  for  the next five years.

 

Col. Riaz Jafri (Retd)
30 Westridge 1
Rawalpindi 46000
Pakistan
E.mail: [email protected]

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Who will pay for Pakistan’s state? The Economist highlights the mismanagement, cronyism, chaos, nepotism, and pernicious theft of taxes in Pakistan

Pakistan’s economy

Plugging leaks, poking holes

Who will pay for Pakistan’s state?

Dec 8th 2012 | ISLAMABAD | from the print edition

PAKISTAN’S national poet, Muhammad Iqbal, believed the subcontinent’s Muslims needed to unite if they were to prosper. Without a strong sense of nationhood, he wrote, “mountains become straw and are blown away in the wind”.

Poetry and taxes do not often mix. But those melancholy lines grace an analysis of Pakistan’s fiscal plight by Ehtisham Ahmad of the London School of Economics. The country’s tax revenues have collapsed. Its debt is almost certainly unsustainable without outside help. And yet Pakistan does not pull together. “Textile lobbies, the urban gentry, traders and agriculturists, all point to the other and say: Tax that group first, but do not tax me,” Mr Ahmad writes.

 

The tax authorities can identify a mere 768,000 individuals who paid income tax last year. Even fewer—just 270,000—have paid something in each of the past three years. That is one reason why Pakistan’s tax revenues amounted to only 9.1% of GDP in the latest fiscal year, one of the lowest ratios in the world (see chart). These are exceedingly narrow shoulders on which to rest a nuclear-armed state of 180m people. The culture of cheating starts at the top. Most members of parliament, many of them conspicuously affluent, do not file tax returns.

In the months before an election, due by May, the government of President Asif Zardari of the Pakistan Peoples Party (PPP) is proposing a controversial remedy: an amnesty for evaders. They will be invited to wipe the slate clean with a one-off payment of only 40,000 rupees ($400). The government says it is a quick way to resuscitate the public finances and expand the tax net. Its critics see the amnesty as a boon for politically connected crooks.

The scheme is the brainchild of Pakistan’s tax chief, Ali Hakeem, head of the Federal Board of Revenue (FBR) since July. His computer boffins have spent the past few months trawling data—not to find out how much people earn, but rather to unearth their spending patterns and lifestyles. The FBR has come up with 1,700 variables that predict a person’s tax liability. Some clues are obvious, such as foreign travel, owning a house in a posh neighbourhood and big-ticket purchases such as cars. Others are ingenious. It turns out that having a weapons licence is an excellent indicator of wealth. The FBR’s analysis also shows that married men are richer than single men. Men with two wives are richer still. However, men with four wives (the maximum allowed to Muslims in Pakistan) are often poorer than those who have only one.

Many people escape paying taxes by simply bribing the tax inspectors who call on them, Mr Hakeem admits. “We want the computers to be the enforcers,” he says. The exercise has identified around 3m people who should be paying tax. Under the plan, these people will be served notice and given 75 days to comply or they will face punishment.

But if the FBR can identify the dodgers, why can it not pursue them for the full amount they owe? The tax board says it wants to use its new data fast, before a possible change of government jeopardises the scheme. There is no time to calculate the evaders’ full liabilities.

Mr Hakeem believes the system is so rotten that, in effect, it offers an amnesty to almost everyone anyway. But cynics worry that the oily businessmen and back-room fixers who have prospered over the past four years of PPP government will use the scheme to legitimise their ill-gotten gains. It is “a way of laundering your money”, says Hafeez Pasha, a former finance minister.

Amnesties, which have failed in Pakistan in the past, create perverse incentives. They alienate taxpayers otherwise disposed to being honest, who may decide to stop filing and wait for the next such offer. At best, the amnesty will bring in another 0.5% of GDP in revenue, Mr Ahmad suggests. At worst, revenues may fall.

Both Mr Pasha and Mr Ahmad argue that more fundamental reform is required. Many people fail to pay taxes because they are not legally obliged to do so. Agriculture is exempt from federal income tax, largely because parliamentarians are either large landowners or dependent on rural votes.

Mr Hakeem’s board has the power to exempt products through regulatory orders without the approval of parliament. One such order, dated April Fool’s Day, 2011, made a mockery of the country’s sales tax, imposing a 0% rate on 184 items, including carpets, buttons and the willow wood from which cricket bats are made—as well as “any other goods as may be specified”. Mr Hakeem’s number-crunching may help plug some leaks in Pakistan’s tax bucket. But his board has already poked hundreds of legal holes in it.

Pakistan promised to abolish loopholes in 2008 as one of the conditions for a generous IMF loan of $11.5 billion. Yet it failed to do so. It also promised to remove the tax board’s discretionary power to create loopholes. But punching holes in the tax code is a handy way to “win friends and influence people”, Mr Ahmad says.

A low tax take breeds problems. People who might otherwise pay their taxes wonder what services they will get in return. Federal revenues are swallowed up by debt servicing, defence spending and power subsidies, with no room for much-needed spending on health, education or welfare. A constitutional amendment passed in 2010 gave the provinces clearer responsibility for such programmes. But the provinces lack a reliable tax base of their own. In the latest fiscal year, Pakistan spared only 0.3% of GDP for health.

Despite such miserliness, Pakistan’s budget deficit still exceeded 8% of GDP last year. The government has bridged the gap by borrowing from the central bank and the banking system (which itself borrows heavily from the central bank). This has crowded out private borrowing and ushered in inflation, projected by the IMF to return to double-digit rates by the middle of next year.

Fundamental tax reform will always upset one powerful constituency or another, whether it be the landed gentry, farmers, traders or industrialists. Without reform Pakistan courts economic disaster, a financial crisis that might blow the precarious economy away like straw. That would upset everybody. But Pakistan’s ruling elites assume that such a crisis will always be averted with help from international donors. And, says Mr Ahmad, “they are probably right.”

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