Myth & Reality about Devaluation of US Dollar
The inherent motive behind lowering value of the US dollar against the Pak Rupee.When Nawaz’s younger son Hasan launched Flagship Holdings in London in 2002-03 (it is closed down now)–it also introduced establishment of a ‘hedge fund’ with an investment of £300 million ($500 million). The Flagship thrived unprecedentedly, during the past ten years, on the strengthen of:1) Cash flow of £300 million ($500 million)–which the Sharifs had in 2003–now it may be a cash flow in excess of £3 billion ($5 billion).
2) Easy money transfer protocols through UK, India and Dubai (as the Iranians are doing under international banking sanctions). This money laundering stunt in the West is a complete eyewash–one can bring into UK millions of pounds after paying commission to the UK banks and intermediary financial handlers, who in turn will legalise everything for the fund-bringer. Which is why since 2007–more than 1,000 Pakistani politicians, bureaucrats and dodgy businessmen have purchased properties in the UK worth £5 billion (more than $8 billion), and nothing has precluded them from doing so.
3) Clockwise and anti-clockwise fund-purchasing. The Sharifs and their larcenous munshi Ishaq Dar have divided the financial year into 3-4 revolves. In one revolve (say: June to September 2013)–they increased the value of dollar as $1=Rs 111, and brought home say: $1 billion in cash–which got them Rs 111 billion. If they bring in secretly (which they easily can–having their own bank chiefs) $5 billion–pretending it as a foreign remittance per quarter (revolve), they will get Rs 555 billion. In my understanding–the Sharifs made Rs 50-100 billion ($500 to $900 million) during the first four months of their government (June to October 2013).
During the second revolve–they kept things stable @ $1=Rs 111, and recycled that money within the country for 3/4 months (October 2013 to February 2014), and bought essential commodities (rice, wheat, sugar, lentils, cooking oil, livestock and petrol/diesel). In the next two/three years–the Sharifs (applying the Jewish and Hindus sahukaar monopolistic model) have intend to hijack the commodity sector under fake names. They plan to paralyse the country by hoarding these commodities, if a military takeover occurs or a hostile political group takes over in Pakistan. They are carrying out this commodity monopolisation in partnership with international traders of Britain/EU/India/UAE/Brazil/Australia and so forth–so that the military (or non-friendly political elite) government collapses more quickly after failing to withstand international pressure.
In the third revolve (March to May/June 2014–before the Budget)–as they have hundreds of billions of rupees, say: Rs 100 billion ($900 million) from first revolve (June-September 2013). They also had more than Rs 220 billion ($2 billion), spared/left over from bulk note printing of Rs 850 billion which they did between June and July 2013. By end of February 2014, the Sharifs had more than Rs 320 billion in personal coffer. If they buy dollars for that, by dividing them with 111–they could get $2.882 billion. But by lowering the dollar value to $1= Rs 99 they will now get $3.233 billion. This means that this dollar devaluation will now get them an extra $351 million within nine months of their rule (June 2013 to March 2014). What a satanic business, isn’t it?
With an unparalleled experience of three decades in banking/business frauds–the Sharifs are in a strong position to manipulate the State Bank and other five main Pakistani banks (National, Habib, MCB, Allied and UBL). They have all major stock exchanges under control and SECP (Securities and Exchange Commission of Pakistan) is spineless.
Soon, the Sharifs will print more Pak rupee notes at the Security Printing Press, and will buy the dollars/pounds from every money exchange shop in the country.
Lets see if the dollar sustains at $1= under Rs 100, during the next three months. What I think is–they will devalue Pak rupee again to $1= Rs 111 (even beyond) after the budget.They also intend to pocket $5 billion from sale of 18 major state enterprises. By the end of 2014–they will have made $10 billion from the business of governing Pakistan through a corrupt/rotten system called Mian/Zardari democracy.
They know they can NOT win the next general election–whenever they are. Asif Zardari also knows that PPP will not come to power either, in near future. What Nawaz is doing is–hiding Zardari regime’s brazen malfeasance, and in turn the PPP is supporting the Sharifs’ obnoxious ‘democracy’.———————————————————— —————————— —————————— ———————— The Silence of the Lambs (written in October 2013)The Finance Ministry hierarchy is flustered about the IMF’s $6.64 billion loan that will be provided to Pakistan during the next 36 months on a quarterly disbursement of $545 million each. The Federal Finance Minister Ishaq Daar, Secretary Finance Dr Waqar Ahmad and Secretary Economic Affairs Nargis Sethi seem over-exuberant about this loan. They view it as elixir to heal all fiscal maladies Nawaz Sharif’s clueless government is suffering–but the first tranche of $545 million which they are expecting in the next few weeks is a little over what Pakistan has already paid back to the IMF during the first half of FY 2013– i.e. $340 million.
As per SBP the government is doomed to pay back over $3 billion to the IMF before the end of September 2015. This clearly means that half of the promised $6.64 billion loan that they receive from the IMF over the next three years will be used to pay off old debts. As the old debts are cleared the new debts emerge, twice as big.
The Finance Ministry also expects in the next few months $1 billion from the World Bank as its President Dr Jim Yong Kim has recently approved it. The Asian Development Bank President Takehiko Nakao has given a nod for another $500 million loan to Pakistan.
The big picture that shows here is, will the Nawaz Sharif government run country’s economy for the next two years on these loans put together as a little over $8 billion? This amount is not enough to fill even Nawaz Sharif’s own coffer–because he is such a politician that if you make him in-charge of the Sahara Desert it would run out of sand.Ishaq Daar is also over-optimistic about USAID to make some offer to Islamabad. Nawaz Sharif’s elder son Hussain Nawaz has recently approached the head of USAID Rajiv Shah–who studied with him at the London School of Economics in 1996, but Rajiv Shah is a staunch Hindu and is under the influence of Manmohan Singh,Shashi Tharoor and Salman Khursheed. That said, any monetary offer to Pakistan will be India-tied.
The Secretary Finance Dr Waqar is also naive about UK’s DfID headed by Justine Greening MP but the DfID Select Committee is headed by the Scottish Lib-Dem MP from Aberdeen, Malcolm Bruce, who is friends with Shashi Tharoor, Salman Khursheed andSonia Gandhi‘s son-in-law Robert Vadra. He visited India for a week (25 September to 02 October 2010) –all expenses (£3,300) were paid by India’s Ministry for External Affairs. Malcolm Bruce informed the author (Ejaz Hussain) in March 2013 that DfID had given to Pakistan over £380 million in 2012, they will give Islamabad £422 million in 2013, £480 million in the year 2014 and over £500 million in 2015. This will make around $2 billion that Britain will give to Pakistan over the next two years. If we add this amount to $8 billion above–Pakistan will have $11 billion by end of 2015. Canada’s CIDA, Japan’s JICA, the Saudi regime, Qatari/Kuwaiti Ameers and UAE monarchs have promised to give under $2 billion (put together) over the next two years–but there are no guarantees.
As regards the Foreign Exchange Reserves (FER)–Pakistan had a little over $11 billion in April this year (2013). When Ishaq Daar paid Rs 326 billion (of the total Rs 503 circular debt) on 29 June 2013–Pakistan’s FER were just over $5 billion.
The figure of $5 billion will continue to pinch the Pakistani nation for the next five years–whether it was paid to the crony IPPs or the crony bankers. This is the figure that has purportedly disappeared from Pakistan’s FER. The SBP has also printed Rs 850 billion notes during the past few weeks. The Governor State Bank Yaseen Anwar, both Deputy Governors (Qazi Muqtadir and Arshad Wathra) and Secretary Finance Dr Waqar Ahmed are completely silent over this issue–what a Silence of the Lambs?
