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Archive for category FINANCIAL TERRORISTS

OPINION: The day of reckoning Syed Shabbar Zaidi 


The day of reckoning

03 Feb 2021



When the good times are rolling very few have the foresight of seeing the storm around the corner. Whilst it takes time to accumulate gains, reckoning is usually a quick phenomenon when it suddenly strikes…

As I have noted, the elite of Pakistan have enjoyed a very good run, especially since 1992 i.e., after the enactment of the Protection of Economic Reforms Act and some other near criminal acts against our nation. It became extremely easy to create tax-free wealth and stash it abroad, and our gluttonous elite availed every opportunity to indulge in it. I have discussed this in detail in my books and articles. Successive governments have tried to bring back this wealth, however as a seasoned financial advisor I know for certain that once money leaves the shores it is very difficult to bring it back; those who say otherwise are trying to fool people. So the party continues… for now.

However, post-2020 we do not live in the same world, the developed countries, where the wealth of our nation is mostly stashed are under a severe strain and three prominent themes are originating from the Covid pandemic:

  1. How to cover the financial distress caused due to the pandemic. This will inevitably entail higher taxes especially wealth tax;
  2. How to solve the problems of inequality in society where some people have made large fortunes whilst most of society members suffer;
  3. Falling real returns on assets …. Those who want to talk about the stock markets, please note that the performance of stock markets has been totally divorced from the real performance of economies.

Who do you think will this impact the most? I feel this will be the elite of developing countries who have stashed their wealth in these western “safe havens”. Yet the day when these havens will be the least safe for our elite is soon approaching. Laws, unthinkable only until a few years, are firmly in place, an example of which is the Unexplained Wealth Order (UWO) of 2018, in the UK (one of the most popular destinations for foreign capital) where the onus is on the person to prove the source of his or her wealth.





Most of the wealth of our elite is undeclared, it is not necessarily always income from corruption or other illegal activities, it could be legitimate income from a legal business that was simply not declared or taxed. However, in the eyes of many jurisdictions, undeclared income due to any reason is fair-game and can be subjected to confiscation. Many might not know this but confiscations under the UWO have picked up pace recently.

Laws like this are only the beginning, confiscations of undeclared wealth solves a lot of problems that I have noted above for these developed countries and trust me no one in the developing or developed world will shed a tear when we see mass confiscations for such elite.


If you do not want to bring it back at least declare it here, so that you have some protection against foreign authorities although full protection is still not guaranteed.

Operating in the developed countries is completely different from operating in Pakistan; there your connections or “nepotism” cannot save you and, there are no easy “settlements” for small sums. The advisors that you might have for these matters are either outright scamsters, incompetent lackeys or at best lower tier professionals – top grade professionals in developed countries will not do business with undeclared/risky clients.

I have given up hope in appealing to the patriotism and honour of our people because this approach has failed miserably. What has driven me to sheer despair is the prospect that it would be the most horrible fate for the wealth of our nation to be confiscated in foreign lands to finance their deficits, whilst our country is ravaged by poverty and is perpetually holding the begging bowl.

Copyright Business Recorder, 2021

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WHO HELPED IN PAYMENT OF $32 MILLION TO BROADSHEET? by Arshad Sharif,The Reporter’s Diary







 January 15, 2021

The Reporter’s Diary

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Islamabad, January 15:  Successive governments and National Accountability Bureau (NAB) made questionable payments of atleast US $32 Million to different companies in Broadsheet scam from 2008 till now without challenging the re-instatement of companies which were dissolved in 2007. 

Government of Pakistan (GoP) also paid millions of dollars as fees to the lawyers in addition to the US$32 Million questionable payments to Broadsheet which had links to a few important people in Pakistani power corridors. How many million dollars have been paid to lawyers internationally and locally by GoP and NAB remains a well-guarded secret in the scam.

“I had been requesting the relevant people to challenge the re-instatement order of Broadsheet in Isle of Man but no one was interested,” said a well-placed source, adding, “unless the money is distributed, how will people get their share.”

Disbursement of atleast US $32 Million include payment of US $1.5 Million to Broadsheet, $2.2 to International Asset Recovery (IAR) and US$ 28 Million to reinstated Broadsheet.

“In addition to US$1,500,000 paid to or to order of Mr. James under the Settlement Agreement, NAB paid US$2,250,000 in settlement of the claims by IAR, also in about 2008,” reads an order of settlement in the case.

The first tranche of questionable payments were made when Pakistan Peoples Party (PPP) was in power, Navid Ahsan was Chairman NAB and Sardar Latif Khosa was Attorney General of Pakistan.

Sardar Latif Khosa later represented Broadsheet LLC in Supreme Court of Pakistan in 2018 to seek access to Volume 10 of Joint Investigation Team (JIT) report to be used to assess the quantum of damages sought in the international arbitration.

Who actually owns Broadsheet LLC, an offshore company, is a question which has baffled Pakistani officialdom. The multi-million dollar question finds mention in a communication sent by Broadsheet’s lawyers, Crowell & Moring LLP, to Pakistani authorities in March 2019 in the following words”

Zafar Ali, QC

“Mr. Ali informed Mr. Moussavi that people in Pakistan wanted to “know who he is” after dealing with him for years, and whether Broadsheet was being funded by Zardari and the Bhutto Family. Mr. Moussavi told Mr. Ali that was nonsense, that he had no connection whatsoever with Zardari, and never would, and that in his view Mr.Ali was being pushed aside by others in Pakistan eager to pursue the Sharif funds in Singapore for themselves.”

Imran Khan, Prime Minister of Pakistan

Prime Minister Imran Khan has recently ordered an investigation to find how the Broadsheet case was mishandled by previous governments resulting in penalty of millions of dollars against Pakistan.

It is surprising that settlement was made with Broadsheet without due diligence by GoP and NAB in 2008 despite the fact that the company was dissolved in April 2007. The fact finds mention in the settlement order in following words:

“In April 2007, when Broadsheet (IoM) was formally dissolved, negotiations were in progress between NAB, represented by their lawyer, Mr. Soofi, and Mr. James’s former associates representing another company, IAR, which had made an agreement similar to the ARA (but relating to other parts of the World) in 2000 at about the same time as he entered into the ARA on behalf of Broadsheet. 

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In addition, Mr. James began to negotiate a Settlement Agreement with NAB represented by Mr. Soofi representing that he, Mr. James, was authorised to represent Broadsheet, notwithstanding (and without disclosing) that the company was in liquidation and was recently formally dissolved.

His purpose in doing this can readily be inferred from the facts that at about this time he formed a new Colorado company, also called Broadsheet, which he represented was a successor to Broadsheet IoM. When the Settlement Agreement was signed on 20 May 2008 it provided that NAB would make payments totaling US$1,500,000, in settlement of claims made under the ARA, not to Broadsheet IoM or its Liquidator but to Broadsheet Colorado which Mr. James controlled and in effect to him personally. When these facts became known to Mr. Moussavi, he took steps to have the dissolution of Broadsheet set aside. A new Liquidator was appointed who has authorised these arbitration proceedings against NAB (Notice of Arbitration was given on 23 October 2009). 

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Naveed Ahsan, Former Chairman NABThe Settlement Agreement was authorised for NAB by an executive decision in which Mr. Soofi was not involved. There is no evidence as to who the decision makers were. The Governor of NAB at that time was Mr. Ahsan.”

The settlement order gives details about dissolution of Broadsheet, raising fundamental question why re-instatement was not challenged in Isle of Man either by GoP or NAB.

“When the ARA terminated in Oct./Dec.2003, Broadsheet was a trading company registered in the Isle of Man. Mr. James was its executive chairman and controlling shareholder. Mr. Tisdale was involved in its affairs by virtue of being Mr. James’s legal adviser, and Mr. Tariq Fawad Malik effectively was its local representative in Pakistan. On 19 May 2003, the company’s former legal adviser in Jersey obtained a default judgment for outstanding fees in the sum of about £29,000 (“the Sinel judgement”). On 1 April 2004 the Sinel judgment was registered against Broadsheet in the Isle of Man. Winding-up proceedings against the Company based on non-payment of the judgment debt were commenced in the Isle of Man in February 2005 and a Winding-up Order was made on 2-7 March 2005. On 2 April 2007 the company was formally dissolved. Meanwhile, Mr. James remained active in business and/or financial affairs in the USA. On 4 January 2005 he purported to assign to a Colorado company, Steeplechase Financial Services LLC, “all his right, title and interest in … connection with [the ARA]” signing the Assignment as chairman of Broadsheet and ‘Manager’ of Broadsheet. He did not notify NAB of the Assignment nor did he communicate with the Liquidator who was appointed in the Isle of Man shortly afterwards, in February/March 2005.”

Interestingly enough, when the questionable payments were made a year later to a company dissolved in 2007, the damage claims were again accepted in 2009. 

Second payment of atleast US $28 million was facilitated in December 2020 when Pakistan Tehrik-i-Insaaf led by Prime Minister Imran Khan was in office.

A senior government official with knowledge of the case said a number of questions need to be answered as to who facilitated payments to Broadsheet once again in December 2020 when clear instructions were given by Attorney General office to keep “bare minimum” cash in accounts of Pakistani missions abroad.

Public Accounts Committee and Foreign Affairs Committee of National Assembly of Pakistan have ordered probe in the broadsheet scam.

Answers to a few of the following questions can expose a few characters who facilitated payment of atleast US $28 million to Broadsheet through Pakistan High Commission bank account in London:

 1. Why such a big amount was lying in Pakistan High Commission’s account when arbitration was ongoing and instructions were passed to keep bare minimum cash in bank accounts for official use?

2. When the amount of US $28 million was transferred to High Commission’s account and for what purpose? Who authorized transfer of funds to account of High Commission?

3. What had been the average Monthly balance in High Commission’s account during last 36 months?

4. How Broadsheet came to know about huge balance in High Commission’s account and specific account number to ensure implementation of damages claim?

5. Why diplomatic immunity was not invoked and if invoked at what stage and when?

6. Does it prima facie not seem an arranged and corroborative move to facilitate Broadsheet to recover the money?

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Fraud Charity Muslim Hands:Charity trustee Mohammed Ashfaq who misused funds and took a massive salary

Fraud Charity Muslim Hands:

Charity trustee who misused funds and took a massive salary

Mirror investigative columnist Andrew Penman investigates the charity worker who drew a fat cat salary and misused funds that were supposed to go to earthquake victims

Former Helping Hands boss Mohammed Ashfaq at Oman Air First Class Lounge
Helping Hands Fraud: Mohammed Ashfaq

When an earthquake devastated Kashmir in 2005 killing nearly 80,000, his Helping Hands for the Needy received national media coverage for its apparent role in sending aid.

The Duke of Edinburgh, no less, visited its premises in Stratford, East London.

“We are much honoured by the royal visit and appreciate the thoughtfulness and concern shown by HRH The Duke of Edinburgh,” gushed Ashfaq at the time.

According to its publicity, Helping Hands for the Needy had sweeping ambitions: “The relief of poverty and sickness anywhere in the world, and in particular, those affected by natural causes or by wars and conflicts, foreign and domestic, by the provision of financial or other assistance including medicines, hospitals, shelter, food, clothing, sanitation and clean drinking water.”

Behind this bluster lay Ashfaq, a 44-year-old from Harrow in North London, and a tale of greed and deceit.

The wheels started to come off his gravy train three years after that earthquake when, in 2008, the Charity Commission investigated what it called the “weak governance and a lack of financial controls” at Helping Hands.

The charity was given legal advice and some improvements seemed to be made, but two years later the Commission took another look at the accounts at Helping Hands.

In theory, there were trustees in place to stop donations going astray but in practice, there was still little scrutiny.

“This lack of adequate governance and management of the charity meant that the then trustees failed to safeguard the charity’s funds which led to thousands of pounds of charitable funds being misused,” the Commission has just reported.

Numerous examples of money being siphoned away were identified, including payments for parking fines and home improvements.

Ashfaq had insisted that he was not paid for his work at Helping Hands for the Needy.

But the Commission discovered that he had obtained a mortgage by telling the lender that he was paid more than £85,000 a year as the charity’s managing director.

It also discovered that his wife netted £77,000 over three years.

The charity rented its office from Ashfaq, paying £1,200 a month directly to his mortgage providers. Other payments included £134,000 to companies linked to Ashfaq or his family members.

According to the Commission, there was no evidence to show that the payments were authorized by the charity trustees.

And what of the overseas good causes that they were supposed to be helping?

Most of the charity’s funds came from donations for specific appeals but the accounts revealed that all the money was lumped together.

Meanwhile, huge payments were made to “volunteers” abroad – one received £79,000 and another got £109,000.

The excuse used by Ashfaq and fellow trustee Syed Iqbal was: “Due to poor banking systems in the countries where they were operating there was no other way of getting the money to the projects.”

Ashfaq resigned from the charity before he could be officially removed by the watchdog.

In December 2013, he was banned from being a company director for 12 years, and Iqbal was banned for five years.

Helping Hands is now in liquidation and the Commission is taking legal action to recover misappropriated money.


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Pakistan’s External Debt Will Soon Cross a Staggering $75 Billion

Pakistan’s External Debt Will Soon Cross a Staggering $75 Billion


Pakistan’s loan situation has steadily grown worse over the course of the last year as the government has continued to take on more loans from local and foreign institutions. While taking loans is not unique to this government, the rate at which the loans are accruing is certainly unprecedented.

Pakistan’s Current Debt

2016 was a record setter in terms of debt for our country. Pakistan’s foreign debt stood at Rs. 74 trillion ($72.98 billion) after the first half of 2016. During the last fiscal year, Pakistan’s debt increased by $7.9 billion, a record amount of foreign debt.

During the past three-odd years, the current government has taken $25 billion in foreign loans. Out of the $25 billion, $11.95 billion was used to pay off other loans.

For the same duration, the PML-N government has borrowed $30 billion (PKR 3.1 trillion) from local banking institutions.

Summing up, Pakistan’s total debt (local and foreign) had increased by $55 billion in the three-odd years of the current govt. Loans from the Chinese institutions are a separate issue altogether and more details regarding those are still incoming.

We would like to mention that domestic borrowings are often not mentioned because their effect is not as adverse as foreign debt. The government could simply devalue the local currency and make up for local payments.

Debt Predictions

According to data from the Trading Economics, Pakistan’s external debt will cross $75.54 billion (PKR 79 trillion) when the details for Jan 2017 come out.

It is expected to cross $79.35 billion (PKR 83 trillion) in 6 months’ time and at the rate, it is progressing, the analyst firm says by 2020 the foreign debt will reach $87.1 billion (PKR 91.2 trillion).

Pakistan’s Debt Due in 18 Months

Pakistan has to pay $11.5 billion within the next 18 months. Various international monetary are owed different amounts from that sum. These are:

  • Pakistan has to pay a sum of $8.76 billion to International Monetary Fund (IMF), World Bank and Asian Development Bank.
  • $160 million has to be paid in Saudi Riyals to Islamic Development Bank.
  • Pakistan has to pay $1.6 billion to China within 18 months.
  • Japan has to be paid back 192 billion Yen.
  • Paris Club from France is owed 625 million Euros.

Debt History

Let’s take a look at Pakistan’s debt history:

  • Pakistan had received $121 million from 1951 to 1955.
  • The figure nearly had tripled in the next five years.
  • By December 1969, the external debt of Pakistan had amounted to $2.7 billion.
  • Pakistan’s total external debt was $3 billion by December 1971.
  • Foreign debt figure had then subsequently increased to $6.3 billion in 1977.
  • Pakistan’s external debt was $21.9 billion in 1990.
  • It was $35.6 billion in 2000.
  • Pakistan’s foreign debt and liabilities in July 2013 stood at USD 61.9 billion
  • In July 2014, Pakistan’s foreign debt soared to USD 63.4 billion, showing an increase of USD 1.5 billion.
  • In July 2015, the foreign debt rose to USD 65.1 billion recording an increase of USD 1.7 billion.

Some Facts

With updated information about Pakistan’s debt, some often used facts need to be updated.

  • With a foreign debt of 74 trillion and a population of 190 million. Each Pakistani owes Rs. 389473.68. (The amount is higher when considering local debt.)
  • With a foreign debt of 79 trillion (Recent prediction) and a population of 190 million. Each Pakistani will owe Rs. 415789.47. (The amount is higher when considering local debt.)
  • When the debt is converted to $1 notes, it can be wrapped around the world 284 times (293 times with $79 billion).


Which Countries Have The Highest Default Risk: A Global CDS Heatmap

Tyler Durden's picture

Sweden beats USA and Germany as the least likely to default on its bonds but at the other end of the global sovereign risk spectrum lie two socialist utopias – Venezuela (CDS just shy of 6000bps) and Greece (CDS around 1800bps) are the nations most likely to default.

Of course, our readers will be well aware of this: back in December, when its CDS was trading at “only” 2300 bps (or whatever points upfront equivalent it was back then) we said Venezuela CDS are going much, much wider. Little did we know that in just about 14 months they would more than double, and as of last check, Venezuela CDS are just shy of 6000bps suggesting a default is virtually guaranteed.

So aside from these two socialist utopias, who else is on the default chopping block? The CDS heat map below lays out all the countries which according to the market, are most likely to tell their creditors the money is gone… it’s all gone.

Below, in order of declining default risk, are the ten most likely to follow Venezuela and Greece into the great default unknown:

  1. Ukraine
  2. Pakistan
  3. Egypt
  4. Brazil
  5. South Africa
  6. Russia
  7. Portugal
  8. Kazakhstan
  9. Turkey
  10. Vietnam

Sovereign Credit Default Swaps (CDS) are financial contracts that measure the risk of default on sovereign debt: the higher the spread, the greater the risk of default.

Source: BofA






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Jangla Bus service biggest scam of Asia, says Pervaiz Elahi,Brilliant Former CM Punjab

Jangla Bus Scam



CHAKWAL – PML-Q senior central leader and Deputy Prime Minister Ch Pervaiz Elahi has challenged Shahbaz Sharif to a comparative survey of development projects executed in Punjab over the past five years and the previous government.He said that Khadm-e-Aala should not cheat on people of the province on the basis of fake and false survey. He termed “Jangla Bus service” as the biggest scandal of Asia due to lack of transparency. Addressing a big public meeting here at Talagang on Sunday, Pervaiz Elahi claimed that his government in Punjab executed development projects worth Rs22 billion in Chakwal and Talagang, adding that the “so-called” Khadm-e-Aala even took away machinery from Talagang Hospital established during his government.The public meeting was also addressed by Hafiz Ammar Yasir, Sardar Amjad Ilyas, Malik Asad Ali Khan, Syed Taqleed Shah, PPP leader Raja Shahjahan, PPP MPA Fauzia Behram, Malik Qadeer Altaf and Peer Syed Nisar Qasim whereas those seated on the occasion included Muhammad Basharat Raja, Raasikh Elahi, Sardar Khurrum Nawab, Malik Muzaffar Khan, Malik Allah Yar Khan Dandah, Dr Khalid Ranjha and Sheikh Saeed Ahmad among others.  People kept chanting slogans of “Ghazioon aur Shaheedoon Key Mohsin, Ch Pervaiz Elahi” enthusiastically quite frequently.Speaking on the occasion, the Deputy PM charged that “Jangla Bus Service” was the biggest corruption in the history of Asia and Transparency International should take its notice. “Our prosperous Punjab has been turned into “Kangla” by inefficient Chief Minister. However he (Shahbaz) should remember that people would expel him from the province in the upcoming general elections,” he elaborated.  Pervaiz Elahi dubbed the PML-N MNAs and MPAs as ‘deaf and dumb’ for keeping mum when medical machinery was being taken away from Talagang Hospital, adding that murder case should be registered against the Punjab CM and local PML-N MNAs and MPAs if any death occurred due lack of machinery in the hospital.The PML-Q senior leader said that Chakwal and Talagang was the land of brave people, Ghazis and Shaheeds. “I am grateful to you (people) for the love and affection you bestowed on me; I regard Talagang and Chakwal as my home”, he averred. The Deputy PM pointedly stated that his government had executed record development works in the entire province including South Punjab without any discrimination, adding that “Khadm-e-A’ala” had dumped funds of other districts in Jangla Bus Service. He alleged that due to flopped schemes like Jangla Bus Service, Laptop Scheme and Ashiana Scheme, the exchequer of Punjab was empty and there was no money even to pay salaries to the govt employees. The N-League could not held local bodies elections in five years and instead abolished our local bodies system of public service,” he observed.Ch Pervaiz Elahi challenged Shahbaz Sharif to get conducted a survey on development projects executed during his (Shahbaz’s) three tenures and his (Elahi) single tenure. He maintained that focus of development projects during his government was the common man whgich could be judged from the introduction Punjab Emergency Services (Rescue 1122), adding that for the first time his government provided free textbooks up to Matriculation, established centres for special children and brick-lined water courses, provided tractors and laser-levellers, exempted land up to 12 and half acres from tax, constructed over 37,000 kilometres of roads all across the province.He regretted that unfortunately the N-League parliamentarians could not do anything for the people of this area.Ch Pervaiz Elahi asked the people to join hands with him for the security of country and betterment and prosperity of Punjab. He claimed that lion had no brain and that’s why N-League leaders were coming up imprudent plans. “Cycle takes its rider to destination without petrol and diesel and because of this we are completing our projects”, he pointed out. He pledged that if blessed with opportunity by Almighty Allah, he would eliminate deprivations of people of the area. Speaking on the occasion, PML-Q leader Hafiz Ammar Yassir called Shahbaz Sharif “Zaalim-e-A’ala” for “what he called” closure of Talagang Hospital and constructing of 27-km long road in Lahore by depriving poor people of health facilities. He said that credit for development works to-date in the area went to Ch Raasikh Elahi, son of Ch Pervaiz Elahi. He also demanded the Army Chief to get a military hospital constructed on this land of the Ghazis and Shaheeds to provide modern healthcare to people of this far-off area.


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