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Archive for category Pakistan’s Debt Bomb

If wishes were horses, beggars would be…   Haider Mehdi’s Perspectives

If wishes were horses, beggars would be…

By Syed Haider Raza Mehdi

Nawaz Sharif’s Act of Treason: Launching an undeclared War on Pakistan Armed Forces with the backing of US & India
I think it’s getting close to one Qabar and two bodies.

Nawaz’s aim is political martyrdom.

As long as he controls the party he will continue to create chaos.

But, as history tells us, this great land of Punjab knows which side of the paratha has more ghee.

And with each passing day as the power struggles between the brothers Sharifs and other groups within PMLN  intensify we will see his grip loosening.

This will make Nawaz and especially Princess Tubelight Maryam Safdar, even more desperate and they will resort to desperate measures. To understand Nawaz one only has to recall his instructions to Sohail Zia Butt many years ago.

“Butt saheb Thoray jeean golian sholian….thay Thora jiaa khoon kharrapa!”

Therefore, I have a feeling of great disquiet. A sense of, God Forbid, a major urban terrorist attack and or some highly potent acts of violence. Perhaps even attempts at assassinations. These could be across, political, ethnic, sectarian and religious divides to create more chaos and disorder.

Some orchestrated by PMLN and some by our “friendly” neighbours, India and Afghanistan and our Godfather, the USA.

The last mentioned, continously attempting to keep Pakistan unstable, through political unrest and economic meltdown, create civil unrest, weaken Pakistan and achieve their ultimate objective of defanging us of our nuclear assets.

Iran will likely not try anything funny because a stable Pakistan is in their interest. But some of our other “Middle Eastern brothers” especially Saudi Arabia, will silently support this subversion of Pakistan now no longer expecting much from us.  They are very angry at us for not supporting their Yemen misadventure and helping them kill over 20,000 Yemeni women cholden and civilians. They are also extremely upset that we didn’t join their mad sectarian war against Iran sponsored by the Trumpeter from the USA, despite the very secretive command of a phantom anti terror coslition headed by an extremely uncomfortable Raheel Sharif. And lastly not siding with them against their Qatari misfire.

Saudi Arabia has now openly allied itself to the USA, India, Israel, UAE, Egypt, Regional bloc in direct opposition to the Chinese, Russian, Pakistani and Iranian bloc.

So major geo political realignments driven by selfish national Interests, which must always reign supreme, have changed our relationship with Saudi Arabia.

The same goes for the UAE, which is now also very closely allied to Israel. UAE faces significant economic challenges and competition from CPEC and Gawader and now Qatar. So I don’t see them shedding any tears to see a weak and on its knees, Pakistan.

These anti Pakistan external forces will also support the PMLN  in creating major chaos within to serve their own interests and not out of any love lost for Nawaz.

Nawaz has clearly announced an “undeclared” all out war against the Army, with his recently acquired “Nazriaathee” dogma. He hopes to goad and force the Army into some kind of action. But one sincerely hopes that the Army does not fall into this trap.

But one does hope and pray they also provide full support to the Supreme Court and investigators in doing their jobs. This is a sad reality.  But in a Nation of Mafia Dons, with an ex PM your biggest, this support is critical.

Today only Imran, the Supreme Court, and the Army are the three internal saving graces. China being the one major external one.

In my opinion, an ideal scenario given the current environment and without any extra constitutional steps would constitute the following outcomes.

1. NAB references against Nawaz and family to be filed ASAP.
2. Irfan Mangi as DG to head investigation
3. Quick trial and conviction of Nawaz and family. Jail.  Seizure of assets and lifetime disqualification. The evidence is all there. And conviction and lifetime disqualification for others, especially Ishaq Dar.
4. NAB reference against PM Abbasi for LNG. Trial, lifetime disqualification, conviction and Jail.
5. Shahbaz Sharif and Rana Sanaullah Model Town trial followed by Conviction.  Disqualification and jail.
6. Zaradari NAB references. Trial. Disqualification, Conviction and Jail. Same for Faryal Talpur.
7. Census based demarcation and remarcation of election constituencies.
8. Changes of heads of NAB, FBR, FIA, State Bank, SECP.
9. New constituted Election Commission comprising competent and honest professionals without biases.
10. Trial and conviction of Zafar Hijazi of SECP and Saeed Ahmed of NBP with extremely harsh and exemplary punishment to send a message to senior bureaucrats that they can, and will be taken to task if they do the bidding of their political masters by indulging in illegal and criminal acts.

All above through constitutional petitions filed with the Supreme Court.

That’s my ideal scenario. But if wishes were horses, beggars would be kings.

Of course many will target this as an attempt to remove a “legally and democratically” elected PM through a judicial coup.

The answer to this is simple.  If your Prime Minister and family and your Finance Minister and current PM are criminals, crooks, money launderers, irrespective of how they were elected, they must face the due process of law.

And yes this process must go on to catch others as the judicial process gains strength and investigators are able to do their jobs without fear.

Therefore, in my opinion, this is the only way for us progress, positively.

The people of Pakistan have another golden opportunity to cleanse the Augean stables.

We owe it to all our brave sons and daughters, military and civilians who gave the ultimate sacrifice for Pakistan and to our future generations to fix ourselves, once and for all.

We must not lose this opportunity to rid us of the cancer of Nawaz and Zaradari and all they represent and everything that’s corrupt in any institution, civilian or military.

Let’s not forget that Our Flag flutters not because of the breeze, but the dying breaths of its brave men and women who died, defending it.

-Haider Mehdi

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TO ROOT OUT TERRORISM, UPROOT ITS NETWORK CONTROLLED BY FOREIGN AGENCIES By Commodore Tariq Majeed PN (Retd)

Note by Commodore Tariq Majeed PN (Retd):

This Awareness Brief was sent in printed form to concerned Civil, Military, and Police
Authorities 2 years ago, on 14 February 2015. Please give it serious attention. The
step It emphasizes has to be taken now to uproot the ongoing entrenched terrorism.

TO ROOT OUT TERRORISM, UPROOT ITS NETWORK CONTROLLED BY FOREIGN AGENCIES

By

Commodore Tariq Majeed PN (Retd)

Why the Anti-Terror Measures have Failed
1.      After the savage attack by the terrorist brutes on the Army Public School in Peshawar on 16 December 2014, the nation as a whole cried out for protection against Terrorism. The civil and military authorities rushed to proclaim that they would take the most stringent measures to wipe out terrorism and that security would be tightened and made foolproof. Their repeated assertions to wipe out Terrorism seemed solemn. But would they succeed?
2.      People are very worried and fearful. They have been victims of dreadful terrorism for fourteen years now, and have seen all the measures taken by the civil and military authorities fail in wiping out Terrorism. The new measures designated as the National Action Plan (NAP) cannot succeed either. The reason is of a fundamental nature and is central to the ongoing Terrorism.
Terror Network of Foreign Agencies
3.      There exists in Pakistan an extensive network of foreign spy agencies which is creating, sustaining and directing all Terrorism. This Network has to be uprooted in order to root out Terrorism. There is no other way. But, this measure is missing from the NAP, as it was missing from the previous set of measures.
The Purpose of this Submission
4.     To identify this Network and to emphasize why it is absolutely essential to rid our Country of this rogue Network is the purpose of this submission, which is addressed mainly to the Country’s top defenders and policymakers.
The 9/11 Attacks and the Ongoing Terrorism
5.      Pakistan did experience incidents of terrorism in the 1980s during the Soviet-Afghan War.  But the current wave of Terrorism
originated with the 9/11 Air Attacks in the US. Those Attacks, now confirmed that they originated from within the US, were planned and executed with military precision and had political aims. The same features can be seen in the acts of Terrorism since 9/11.
Terrorists’ Obvious Capabilities
6.      The authorities evidently know much more than the public does about the characteristics and capabilities of the Terrorists. What thoughtful Pakistanis know from the news and the actual terror attacks reveals many of their characteristics.
7.      The terrorists are highly organized and trained in their destructive skills. For their ceaseless acts of terrorism and sabotage, they have vast supplies of resources: bombs, arms and ammunition, grenades, IEDs, rockets, electronic gadgets, satellite communication access, transportation facility, abundant money and manpower including female suicide bombers, intelligence and inside information on selected targets, help from local sources, safe houses to hide, and supporting publicity in Media.
False Image given to Terrorists
8.      These features are proof enough that there is a command organization behind the Terrorists. Yet the official quarters and the Media have created a false impression that the Terrorists are operating independently. This has misled and confused many people including politicians and officials, and analysts, dealing with Terrorism. On the other hand, this false impression has benefited the Terrorists and boosted their deceitful jihadist guise.
Top Authorities know about the Network
9.      The top civil and military authorities know about the rogue Network and the powers behind it. It is kept concealed from the public, except that ‘once in a blue moon’ it is said, “India is behind unrest in Pakistan,” (first headline in the Nation, 24 August 2013).
10.    In a rare case of disclosure of classified material, the Nation, 12 February 2010, carried a report about the threat to Pakistan by a joint axis of United States, India, and Israel. The lengthy report, “Secret Document Reveals Indian Subversion in Pakistan,” spoke more about the Indian “spy network and subversive operations” but also specifically identified the trio of spy agencies. Leaving aside some details, the essential message of the report, which quotes “well-placed sources”— most likely the ISI— is as follows: 
“Indian RAW’s Team CIT-X had been assigned to conduct subversive operations targeting Pakistan. The CIT-X was working relentlessly to destabilize Pakistan while New Delhi stepped up interaction with Islamabad on the diplomatic channels.
          “These plans came to light once a copy of the classified document detailing these activities was accidentally lost and became available for public scrutiny. The document lays out the extensive espionage network dovetailed into the diplomatic missions in Central Asia, Afghanistan, and the Middle East, which the Indian undercover intelligence operatives utilize to rake trouble not only in FATA but in Pakistani hinterland as well.
“Mossad’s tactics of infiltrating Palestinian resistance acted as a model
and provided the modus operandi for CIT-X to stir insurgency on Pakistan’s Western border. Targeting interior regions of Sindh province, Seraiki-belt and the Northern Areas of Pakistan forms pivots of the Indian plan.

The document of  RAW  revealed CIT-X operations which spells out the Mossad/RAW/CIA plot against Pakistan.

“Sources believed that UAE is being used as a launching pad for terrorist activities in Pakistan. Agents are getting hold of young, disgruntled elements and after carrying out their proper brainwashing, they are dispatched to Dubai. Indian Consulate in Dubai is issuing temporary passports to these activists for getting training. After completion of their formal training, they are launched into Pakistan to carry out terrorist activities. RAW and MOSSAD had conceived the ‘offensive’ a year ago. Modus operandi has been successful.
“CIT-X is effectively training agents for covert operations in Pakistan. Under the Vajpayee government, the CIT-X and other sensitive organizations were authorized to strengthen contacts with sleeping agents and recruit new front men to carry out covert operations in Pakistan.

 “This intelligence model is an improvement on the practices of Mossad which has infiltrated several Jewish agents into the occupied territory of Palestine as Muslims. These agents practice Islam like any normal Muslim. They mingle into local Muslim population just to wait for the appropriate time to strike.

      “The hostile intelligence operatives are making concerted attempts to achieve their aim of destabilizing Pakistan through a well-conceived plan. It needs to be countered utilizing all means available at our disposal. “Analysts say that Pakistan should think twice before initiating dialogue with India due to New Delhi‘s dangerous track record.”
  
Trilateral Terror Network and its Aim
11.    Does this report not throw ample light on the Organized  Terrorism, that is devastating our Country?  It does. It directly points to the Terrorism’s Organizers—the Trilateral Network of CIA, Mossad, and RAW. It asserts that their Aim is “destabilizing Pakistan through a well-conceived plan.”
12.    ‘Destabilisation’ means: weakening, disruption, subversion, undermining, dislocation.”  It is carried out by many methods, machinations, and instruments. Among the multitude of methods being used against Pakistan, ruthless Terrorism of multifarious forms stands out as the most destabilizing method.   Planned, persistent, unchecked destabilization of a country is bound to result in its collapse. There should be no doubt in the minds of Pakistan’s patriotic defenders and policymakers that this is the goal of the rogue Trilateral Axis of powers regarding Pakistan.
Root Cause of Terrorism—Not Addressed in NAP
13.    Yet, there is no mention in the NAP of eradicating or checking this Root Cause of Terrorism! How could the architects of the National Action Plan, who advised the Parliament Committees and the Government, have missed it?
CIA’s Terror Network
14.    The other authoritative source that points to the terror network in Pakistan is the Abbottabad Commission, which was set up to investigate the US commando raid in Abbottabad on 2 May 2011. Its composition indicates its high status.
 
President:    
   Justice Javed Iqbal, Senior Most Judge of the Supreme Court  
Members:
   1. Abbas Mohammad Khan, Retired Inspector General Police
   2. Ashraf Jehangir Qazi, Retired Ambassador, Director
       General, Institute of Strategic Studies, Islamabad
   3. Lieutenant General (Retd) Nadeem Ahmad
15.The Commission’s report was published by the Aljazeera Channel at www.aljazeera.com/indepth/spotlight/binladenfiles on 8 July 2013. Its important points appeared in Dawn 10 July 2013.    The report’s flaws aside, it contains many facts and comments which are of vital importance to Pakistan’s security. However, what is reproduced here is about CIA’s Network in Pakistan:
 
a.  Dismantling the Terror Networks.    “The dismantling of CIA, other foreign intelligence, and militant  networks must be treated as an urgent national priority if the country is to regain sovereignty over its own territory.”
                                                                                      (page  332,  paragraph 786)
b.  CIA’s Undercover Presence in Pakistan. “The Defence Secretary told the Commission that the CIA’s undercover officials had been operating in Pakistan since a long time…The CIA operated in diverse ways including cultivation of human resources, using Contractors, NGOs, Multinational Companies, USAID programs, intelligence personnel in the guise of Diplomats, etc. CIA’s Human  Resources were supplemented by Technical Intelligence.”                                                      (page 221, paragraph 531)
 
c.  Safe Houses.   “The Commission noted that the Americans had reportedly rented 389 houses in Islamabad and asked if there was any policy in place with regard to such matters including the entry and exit of aliens. The Interior Secretary said the visa policy was liberalized for trade and investment in 2000 and was again reviewed and updated in 2006 with the approval of the Prime Minister.”                       (page 237, paragraph 572)
      “With regard to the US Embassy hiring hundreds of houses in Islamabad and the suspicious activities of their US residents, the Foreign Minister said this was a matter of serious concern and that a comprehensive approach was required involving all relevant agencies and departments to address it and other such like issues. The problem was that the previous administration had been flexible with the sovereignty of the country vis-à-vis the US and once such flexibility was displayed, the ability of succeeding governments to reverse the situation is compromised.”                     (page 234, paragraph 564)
 
d.    Unchecked Grant of Visas by Ambassador Haqqani. “It was widely reported that Ambassador Haqqani had abused his authority in order to issue a large number of visas to US officials without proper security clearance.This enabled the CIA to develop a major spy network inside Pakistan  comprising US personnel, US personnel of Pakistani origin and Pakistani nationals.”                                          (page 214, paragraph 516)
   [Unbridled grant of visas]…“ resulted in an alarming increase in the presence of CIA agents in Pakistan, who established foreign spy networks… (page 217, paragraph 520)
“Mr. Haqqani is answerable for his role, but the primary responsibility for aiding and abetting the establishment of a nationwide CIA network in Pakistan whose purpose was to subvert the sovereign independence of the country…lay with Mr. Haqqani’s principals.  Mr. Haqqani directly reported to them, bypassing his proper reporting channel which was Ministry of Foreign Affairs. The political leadership was grossly irresponsible to deliberately sideline its own Foreign Office and Foreign Minister on such a delicate security issue. (page 217, paragraph 522) 
Alarming Situation
16.    The evidence of CIA’s nationwide subversive Network in Pakistan brings us face to face with a very alarming situation. The Commission rightly warned that it be dismantled urgently. There is no evidence of any efforts toward this end. Terrorists continue to operate with impunity. The rogue Network remains strong and is advancing toward its political goal.
People Suffering under Intensely Traumatic Conditions
17.    Pakistani People, although endowed by nature with courage and toughness, have been forced to live, for many years now, in a state of fear and acute anxiety. Thousands have lost their near and dear ones. Many are suffering from severe mental and physical stress, and a sense of helplessness.
18.    Terrorism’s dreadful effects and fears and Government’s ill-advised and thoughtless measures in the name of “security” have drastically disrupted the daily life of the people. This situation is crippling the performance of the people and the work of the government at every level. The Civil and Military Authorities ought to be well aware of the dangerous consequences of this crippling state of affairs. It has to be halted as a matter of urgency.
Dismantling the Terror Network—Essential for Country’s Survival
19.    Dismantling the CIA/Mossad/Raw Network, that is using devastating Terrorism with the aim of breaking up this Country, will be a difficult task, with a heavy cost. But it has to be undertaken and accomplished, no matter what the cost. Strong Will and Wisdom in the Country’s top Defenders and Policymakers shall, Insha-Allah, ensure success.
             

“Then, when you have taken a decision, put your trust in Allah,

 for Allah loves those who put  their trust  (in Him).”         (3:159)

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WHAT A JOKE — RECORD OF PROPERTY BOUGHT IN 2006 WAS LOST DURING 1999 MARTIAL LAW!

Panamagate: No record for Sharifs’ past business dealings, counsel tells Supreme Court

HASEEB BHATTI 

in DAWN, Pakistan

As the Supreme Court resumed hearing the Panamagate case on Wednesday, Advocate Salman Akram Raja picked up his arguments where he had left them off.

After welcoming Justice Sheikh Azmat Saeed — whose sudden illness had forced a suspension in the case’s daily hearings — Raja reminded the court that “this is neither a trial nor the defendant a witness.”

“I will only argue this case based on the evidence present,” Raja, who represents Hassan and Hussain Nawaz, continued.

The record for the Sharif family’s business dealings for the last 40 to 45 years cannot be reproduced, the counsel said, as “it was lost during the 1999 martial law.”

The matter can be sent to relevant departments for inquiry as the Arsalan Iftikhar case determined that trials for cases can be held at corresponding forums, Salman Akram Raja told the court.

“A court has never conducted an independent inquiry in any criminal case,” Raja argued, adding that Article 10 of the Constitution says that every citizen of this country deserves a fair trial and that departments formed under the law should be allowed to do their job.

“There is no charge against the Prime Minister, so there is no charge against his children either,” he continued.

“If we suppose that the PM’s children are his employees, according to the National Accountability Bureau’s laws, then the burden of proof does not fall on the defendants,” Raja argued in court.

“This is not a criminal court, so even if Hassan and Hussain Nawaz are suspected, there is no proof against them,” he added.

There were eight questions that the court posed to the defendants, including the relationship between Mian Mohammad Sharif and the Al Sani family, the shares in Nielsen and Nescoll, and the profits the family gained from them, the counsel recalled.

Lawyer Salman Akbar said that Sharif family has ties with more than one Qatari royal family but he cannot disclose the name of other royal families before the court due to certain reasons.

 

 

 

 

 

 

 

 

 

 

 

 

 

“There were questions about the trust deed as well, and in this hearing, I will answer all these questions,” he told the court.

Justice Khosa advised Raja that he should first finish his arguments before answering the court’s questions.

Moving on to the matter of the London flats, Hussain Nawaz’s counsel argued that the flats were bought by the Al Thani family between 1993 and 1996.

“The Sharif family did not own the flats in 1999, as Hussain Nawaz was given the bearer certificate to the flats by the Al Thani family,” Raja argued. He added that the shares for the flats were given to Minerva Financial Services in 2006.

Upon hearing this argument, Justice Azmat Saeed asked the counsel to provide a paper trail for these transactions, and said, “You have been moving from one point to the other since the beginning, but have failed to provide any evidence in this regard.”

The allegation is that Maryam Nawaz contacted Minerva Holdings, Raja retorted, upon this, the bench asked that evidence should be proved that Hussain Nawaz is the beneficial owner of the offshore companies.

PTI’s new evidence

The Pakistan Tehreek-i-Insaaf (PTI) had announced on Tuesday that it would submit three more documents to disprove the stance adopted by Prime Minister Nawaz Sharif and his family, but the ruling Pakistan Muslim League-Nawaz (PML-N) is not convinced.

“We are submitting three more documents — one from PTI chairman Imran Khan that authenticates all previous documents presented by the party, the expert opinion of UK-based lawyers and a document that proves that Maryam Nawaz is the owner of UK-based firms Minerva, Nielson and Nescoll,” PTI spokesman Fawad Chaudhry told a press conference.

He said that Imran Khan would submit an affidavit stating that all documents previously submitted by the party were credible and authentic.

PML-N MNA Daniyal Aziz told Dawn that PTI’s lawyers had already completed their arguments and submitted all the evidence they had to the apex court. “Once they have completed their arguments, how can they file more documents?”

 

From The Guardian. London Archival Report

Search for the millions Sharif ‘stole’

The investigator Pakistan’s PM could not stop


They tortured Rehman Malik by placing his hands and feet on ice for up to an hour at a time at a ‘safe house’ in Islamabad. Three years on, he still has trouble feeling sensations in his palms and soles from the punishment, meted out in black masks, by Nawaz Sharif’s heavies.His neck, too, bears the painful crick from a year spent in solitary confinement in a tiny cell at Rawalpindi’s Adila jail with a brick wrapped in newspapers for a pillow. Malik, in mortal fear of convicted terrorists and official hatchet men, found his monthly half-hour visit from his seven-year-old son his single comfort.

Three times following his arrest in November 1996 the courts ordered Malik’s release. Each time he was re-arrested on trumped up charges until, after 12 months of humiliation, the Pakistani Supreme Court itself ruled his detention illegal.

Malik’s crime? To have been the deputy head of the Federal Investigation Agency (FIA), Pakistan’s equivalent of the FBI, investigating allegations of massive corruption by Prime Minister Nawaz Sharif, his family, and cronies.

At 46, he was the youngest officer to reach such a senior rank, the equivalent of an army major-general. In a 20-year career, Malik had gained an impressive reputation in the West for anti-terrorist expertise, including investigation of the 1993 World Trade Centre bombing in New York and of Saudi fundamentalist Osama bin Laden. And, after Malik’s inquiries were publicized by The Observer last year, he started a ball rolling which culminated in the coup against Sharif. ‘I have suffered enormously from doing my duty as a civil servant. My friends, family, and colleagues have been harassed. My life has been at risk,’ Malik told The Observer in his first UK interview since fleeing Pakistan for London after an attempt on his life 15 months ago. ‘I am not a politician, but I welcome the army’s action. They have saved Pakistan from someone who was ruining the country. As a career officer, I would like to return to fulfill my official obligations as soon as possible.’

He is also promising further explosive revelations, which will implicate Sharif and senior Muslim League politicians in allegedly creaming off more of the country’s wealth overseas.

Malik’s report last year was painful enough for the deposed Prime Minister, as were the cat-and-mouse tactics by which Malik has been a thorn in his side since. The 200-page report, smuggled into the country on Sharif’s official Jumbo jet, set out a secret web of fake bank accounts and firms in offshore tax havens through which Sharif’s family allegedly siphoned off more than $70 million (£40m) into London property, Swiss investments and banks in New York.

The family, whose empire grew hugely while Sharif was in office, was also accused of defaulting on $120m of state bank loans, a favourite way of milking the public purse.

According to further documents seen by The Observer, however, the revelations appear to be the tip of an iceberg. Following inquiries over the past year, Malik says he has established further channels by which the Sharif family channelled money illegally offshore.

They include $2.74m allegedly deposited in the account of an Essex-based Pakistani family at the Atlas BOT (Bank of Tokyo) Investment Bank in Lahore as security for loans to four Sharif family members. They also include $4.6m deposited at the Al Faysal Investment Bank in Islamabad as security for a loan to Hamza Board Mills, a paper, and forestry firm in the Sharif family’s Ittefaq group.

Among all his amassed wealth, Sharif also appears to have concealed ownership of a Russian-made Ulan helicopter, which he used during election campaigns. The aircraft, worth more than $1m, was bought from an Arab prince, Sheikh Abdul Rehman Bin Nasir Al Thani of Qatar, in November 1996 and registered in Sharif’s name at the Pakistani Civil Aviation Authority, according to official documents obtained by Malik. It was, however, not declared on Sharif’s statutory filing of assets and liabilities to the country’s Election Commission. ‘This was a man who once told me he could not afford a second-hand Mercedes. How then could he buy a helicopter?’ Malik asks.

Most explosive of all, however, is likely to be Malik’s new investigation, which is almost concluded and alleges laundering of more than $100m offshore via a network of UK trusts, Swiss accounts and offshore havens including Liechtenstein.

An Observer investigation has revealed other instances of alleged corruption during Sharif’s last administration:

• In an emergency budget after Pakistan’s nuclear tests last year, import duties on luxury cars were cut from 325 per cent to 125 per cent. A week later they were restored. In between a friend of Sharif imported 80 cars.

• In 1996 senior figures at Bankers Equity Limited, a finance house granted a huge loan, believed to be more than £10m, to close associates of Sharif. Last summer the bank collapsed and several senior managers, including a friend of Sharif’s, were arrested. The loan is outstanding.

• After the 1997 elections the Sharif family and their business concerns were able to reschedule and renegotiate loans worth nearly £100m from eight banks. When ordered by courts to pay some back they surrendered 33 factories. Only one factory was fully operational, the rest closed, out of order, or both.

Sharif, his family, and former Ministers have consistently dismissed the allegations as politically inspired.

Sharif himself is still in ‘preventative custody’, as the army calls it, in a government guesthouse on the outskirts of Islamabad. General Pervez Musharraf, the self-appointed Chief Executive of Pakistan, has not revealed his plans for the man ousted in a coup 10 days ago. Military sources say the evidence is being gathered to put Sharif on trial for corruption and possibly treason.

Sharif’s former residence, the 100-acre Raiwind estate, near the city of Lahore in eastern Pakistan, is widely seen as a symbol of the opulent lifestyle the Sharifs have led since their pursuit of power and wealth began to pay off 15 years ago. Last week The Observer was the first Western newspaper to visit it since Sharif’s fall.

Brand new roads lead out of Lahore, where the Sharifs have two other houses, to the walled 100-acre estate. A turning leads to a helicopter pad and a set of steel gates. Beyond is an open, grassy compound where five houses, all in white-washed villa style, lie in a rough circle around a man-made pond. Each has a huge colonnaded porch sheltering a £20,000 four-wheel drive Jeep. Two of the buildings are partially constructed as is a pool, though a lake stocked with fish is completed. There is a small zoo.

All the houses are similar, with deep red carpets and velvet curtains throughout. Sharif’s own house is distinguished by the number of televisions – the Prime Minister was gadget crazy. Now army machine gunners have replaced the bodyguards who previously watched the compound’s perimeter. And the muzzles of their weapons point in as much as out.

Raiwind is, to the ousted Prime Minister’s critics at least, a symbol of how his administration manipulated government to benefit itself.

According to opposition spokesmen, Sharif has ‘used public office for personal economic gain’. It is corruption, they say, even if it is within the letter of the law.

Soon after coming to power for a second time in February 1997 Sharif declared the Raiwind site to be the ‘Prime Minister’s Camp Office’ – his home away from the capital. The local municipal authority took on the estate’s maintenance at an estimated annual cost of 40 million Pakistani rupees (£500,000) and built a new road for it, while the state has also supplied gas, electricity and a 200-line telephone exchange.

Near Raiwind last week feelings were mixed about Sharif’s fall. Many remain loyal to a man they see as a local boy made good. ‘He has done a lot around here,’ said Ahmadullah Ali, a farmer. ‘He is a good man.’ In the rough and tumble world of Pakistani politics, Sharif may be down, but he still isn’t out.

 Reference Courtesy

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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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