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MEDIA MIR JAFARS : An Open Letter to Mubasher Lucman

An Open Letter to Mubasher Lucman
 
US, Indian, Israeli, Control of News Media in Pakistan
 
 
Pakistan had a single TV Station and some private channels.
In 2002-03 (?), persuading authorities that a free press would be necessary for a democracy to function, foreign ownership of news media was allowed.
 
The Independent Media Corporation was set up and the Jung/News Group was allowed to set up Geo TV. This later added the Channels, Express News, Samaa TV, AAG, and other channels.
 
Ownership of this media group includes Anil Ambani of India, an American group, and a part ownership of the Shakilur Rehman family.

GEO was allowed to conduct transmission of Pakistani news from Dubai and UAE.
GEO personnel were trained in the US.
 
Mir Shakilur Rehman’s son, Mir Ibrahim Rehman, was awarded the Robert F. Kennedy award for public service at Harvard University. He is the first Muslim and only the second person from South Asia to receive this coveted award. The award was given for his work in getting Pakistan an independent judiciary and for working for peace between Pakistan and India—The Aman ki Asha programme.
 
His Paper covered the idea of changing the public narrative. The question is which public was Mir Ibrahim serving? American, Israeli or Pakistani?
 
Geo TV serves Indian agendas not those of Pakistan.
 
The fact that GEO conceals its ownership and secretly takes funding and direction from India is enough evidence of treason.
 
The Chief Justice was given the Medal of Honour by Harvard. Harvard must have a weird understanding of law and justice. Would they tolerate the criminality, the treason with which he has helped to destroy the system of justice and law in Pakistan? Why does no chief justice in America act the way he does?
 
These are the Mir Jaffars of Pakistan ánd they should be called by their name.
Quaid-e-Azam, Eidhi, no one else in Pakistan has been recognised by this university.
 
The Press and Information Department has knowledge of this foreign ownership but this knowledge is kept secret from the public. PEMRA has knowledge of foreign ownership but it is kept secret. Members of parliament have knowledge of this but do not debate it.
 
Secret operations are being conducted by external powers to wage war and sabotage in Pakistan, and their functioning is kept top secret.
 
In spite of public confusion and concerns at the anti Pakistan bias and propaganda, the knowledge that this is Indian/US/Israeli owned media is kept hidden by members of Parliament, by ISI, by IB, by Media and the people who brought this into being.
 
The last government as well as the current government, that was the opposition then, have knowledge of this. There is a war going on against Pakistan but our government and media and our lawyers and judiciary have given it their full support.
 
Members of the media including key presenters, earn fabulous sums of money to carry out this treason. They know that every word, image, attitude, and stance is directed from abroad. No presenter is allowed to take a personal position on any piece of news.
 
The International Herald Tribune (IHT),the international edition of The New York Times are owned by the Sulzberberger, Jewish Zionist Family of New York, and the Pakistani newspaper The Express Tribune is in partnership with the IHT. They announce this partnership on the front page. We are given a copy of the IHT daily with The Express Tribune but people foolishly ask no questions! How can a newspaper of the quality of International Herald Tribune make, print and distribute the paper for Rs 19.00 all over Pakistan?
 
All those who are involved in this secret war against the integrity and existence of Pakistan are traitors and should be tried for treason.
 
The Murder of Karachi’s Citizens and Destruction of the City
 
Thousands of innocent people have been killed, maimed and robbed in the last 5 years in Karachi. The media calls it mafia, turf wars, bhatta wars.
 
Target killings, bomb blasts, fires, have taken place every day killing innocent people.
No steps have been taken to take suo motto notice, investigate, to arrest, to try, to punish the people or parties who are doing this. Newspapers report the deaths then forget about it as if it was a matter of course, or deaths by malaria.
 
The people of Karachi have been given no security. All police and security is given to government and party functionaries. Traffic jams are created daily on busy streets in order to rob passengers in stalled vehicles. There is no police, no security force, no Army or Rangers to keep peace in Karachi.
 
Musharraf is being tried for not providing security to Benazir Bhutto. Why is the Government not held responsible and TRIED for the killing of innocent people in Karachi, and for not providing security to its citizens?
 
Why are members of the political parties, MQM, ANP, PPP, not arrested for removing police from Karachi, for denying security and facilitating the murderers?
 
Arrest the top leadership of these party mafias and stop the killing.
 
Why has the Chief Justice and Asma Jehangir not taken notice of what has happened in Karachi, when they are so concerned about the missing persons of Baluchistan?
 
Thousands are missing in Karachi but no questions are asked. The Chief Justice makes the ISI the enemy, and targets their personnel and humiliates them, and has brought the army into disrepute in the world. Whose agent is he? Who will give him security from the very Indians who pay him?
 
Targeting the Army and ISI
 
In the last 6-8 years, the propaganda war and the media war has targeted the Pakistan Army and especially ISI and security agencies.
 
The image of the Army is constantly under attack by the media, by paid politicians, by lawyers, by the so called civil society.
 
In the last so many years, the words “CIA, Mossad, RAW” and other agencies have not appeared in our media coverage except for the one time when Raymond Davis was exposed. No questions are asked.
 
Why were Visas given in thousands to US, Indian and Afghan nationals to create turmoil in Pakistan, FATA and Baluchistan?
 
Why is ISI being targeted and not RAW? Not Mossad? Not CIA?
 
Why is this not discussed or questioned?
 
By: Zainab Ali, Washington DC.
 
 
 

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Straight Talk – The Forgotten Citizens of Pakistan.

 

 

Sixty-six years ago, there had been a “founder”, who created a nation for the Muslims of India on 14th August, 1947. They had raised their hands to Allah in gratitude for blessing them with a nation of their own, a Nation called Pakistan.

 

Thousands of innocent men, women and children had died, as riots broke out during the partition, but for those who lost their loved ones, the sacrifice was worth it, as they were now free citizens and masters of their own destiny.

 

But since then, we have been trying to find another “builder” who could build this nation and introduce a system of governance that is “of the people, for the people and by the people”. A government that would improve the quality of life of the uneducated millions, who still live below the poverty line.

 

However, we failed to do so and our politics of tragedies and errors gave the army repeated excuses to dismiss and remove governments for corruption and mismanagement and take control

of the Nation.

 

We had one PM hanged, one general-president blown up in the skies, one President and CJ, forced to resign, of which the CJ has been restored and now our current PM, whose government was dismissed twice for mismanagement and now holding office for the third time.

 

At the same time, numerous Presidents, PMs, Field Marshals and 5 Star Generals have come and gone and have tried various types and systems of governments, from basic, to tailored democracy, to dictatorships in different forms and the present one, which is a cocktail of all of these.

 

The one common factor in these explosive ‘Molotov Cocktails’ was, that they were all “in the best interest of the country” and promised us a better tomorrow and a pot of gold at the end of the rainbow. And along the long journey, heroes and villains have merged and played musical chairs with the destiny of this nation.

 

In the process, we have seen our constitution mutilated and mauled, our LEAs and civic services made ineffective and nominated as the second most corrupt nation in the world, about to implode.

 

At one of Helpline Trust’s seminar, a former Chief Economist of Pakistan had stated: ‘There are only two stakeholders in Pakistan, the privileged few, about 5%, which includes the feudals, the armed forces and the rich and the famous, while the other stakeholders are the balance 95%, who are their subjects. They have no say in their own destiny or the destiny of this nation’. They are the forgotten citizens of Pakistan, like the people in T/ S. Elliot’s well known poem, ‘The Hollow Men’. 

 

‘We are the hollow men, We are the stuffed men, Leaning together, Headpiece filled with straw. Our dried voices, when we whisper together, Are quiet and meaningless. This is the way the world ends, not with a bang but a whimper.
(http://famouspoetsandpoems.com/poets/t__s__eliot/poems/15120).

 

We may be a nuclear power with a growing economy, planning mass transit transport systems, under and over passes, etc., but unfortunately for the forgotten subjects, things have remained the same for the last 66 years and their plight is as dismal as before. Like most of Pakistan, they have been shamefully neglected and are still without electricity, safe drinking water and the basic amenities.

 

Rape and crimes against women are common all over the world, but civil society in other countries, show their disgust, by organizing protests on a National basis, demanding lawmakers to take immediate and visible action.

 

However, in Pakistan, civil society has also failed miserably, as it has never played its expected role, refusing to take a stand on important issues and demand accountability and turned a blind eye to the crimes against women, including ‘Honor Killings’ and the plight of the Forgotten People of Pakistan.

 

It took a brave, uneducated woman from a village, who was brutally raped, to shame the Nation. She demanded justice and begged the government to take notice of the plight of the women in Pakistan.

 

But the Nation turned their backs on her and she was forced to seek justice from strangers and take her case to the citizens of the world and it was the International community that recognized her courage and honored her by calling her the bravest woman in the world.

 

The Gods had woken us up from our deep slumber with a jolt, when the devastating earthquake struck the northern parts of the country, destroying homes and killing thousands of innocent citizens.

 

This was then followed by the devastating floods, which again killed thousands, destroyed crops and livestock, submerged numerous towns and swept away entire villages.  

 

The plight and suffering of these pitiful victims had been brought into our comfortable homes by our TV channels and though many citizens jumped into action to assist the victims, we failed to learn from these tragedies.

 

Seeing the gravity of the suffering of the flood victims, experts had warned the government, that if dams were not built to prevent such floods, the people of Sindh would be committing mass Hara-Kiri.

 

But as usual, the warning fell on deaf years and the government failed to learn from the tragedy and take preventative measures. Forgotten were the sufferings of these people and today we once again see the loss of life and property, caused by the devastation of floods in Sindh.

 

Even our financial Shylocks have not spared the Forgotten People of Pakistan. They have broken their already bent backs, extracting their pound of flesh from their already undernourished bodies, by constantly raising the prices of electricity, petrol and essential items.

 

Returning to real time, the Government seems to be unable to stop the drone attacks, target killings, ethnic violence and enforce the simplest of laws, while the Great Khan seems to have survived his day in court, without eating humble pie and boosting his status as a person, who is not prepared to compromise on his principals.  

 

Let us hope that the new government will review its priorities and improve the lives of the Forgotten Citizens of Pakistan and not just the privileged few. And if not, then they will be forgotten again and continue to suffer for another decade.

 

May God protect Pakistan from the hollow promises of hollow leaders.

 

Hamid Maker. (email: trust@helplinetrust.org).

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CORRUPTION BAZAAR: NAWAZ SHARIF AND CRONIES HIJACK PIA

 

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True Face of Nawaz Sharif & Ahsan Iqbal Exposed by Talat


 

 

Living like a king — Sharif’s litany of abuses

News Intelligence Unit
By Kamran Khan

  

While constantly pleading with expatriate Pakistanis to send their hard-earned dollars to their motherland, former prime minister Nawaz Sharif caused a dent of at least Rs 110 crore to the national exchequer through the 28 foreign trips he undertook after assuming power on February 17, 1997.

Official documents seen by the News Intelligence Unit (NIU) disclosed that about Rs 15 crore were spent from the tax-payers money for Nawaz Sharif’s six Umra trips. For almost each of his foreign visits, Nawaz Sharif used his special Boeing plane that he had promised to return to PIA for commercial use in his famous national agenda speech in June last year.

Almost unbelievably, instead of keeping his promise to return this special aircraft to PIA, Sharif ordered an extravagant US$1.8 million renovation of his aircraft that turned the Boeing into an airborne palace. While reading sermons on austerity to the nation on almost every domestic tour, on this aircraft — on which all the seats were in a first class configuration — Nawaz Sharif and his entourage would always be served a specially-cooked, seven-course meal. PIA’s former chairman Shahid Khaqan Abbasi had, in fact, hired a cook who was familiar with Sharif’s craze for a special type of ‘Gajrela’ (carrot dessert).

While aboard his special plane, Sharif was always served ‘Lassi’ or Badami milk in a Mughal style silver glass by a crew of his choice. Even on domestic flights, Sharif and his men would be served with Perrier water, not available even to first class domestic passengers. The towels he would use on board, had golden embroidery.

Not for a moment, after making his historic promise to the nation in June last year for leaving the palatial prime minister house for a modest residence in Islamabad, did Nawaz Sharif show any intention to leave the prime minister’s palace. On the contrary, soon after that speech, the Prime Minister House received fresh supplies of imported crockery and groceries.

Some of the permanent in-house residents were Sharif’s personal friends, including one Sajjad Shah who used to crack jokes and play songs for him. Sharif’s little-known political mentor Hasan Pirzada, who died last month, always lived at the Prime Minister House. Sources estimate that Pirzada’s daily guest-list to the PM House numbered around 100 people who were always served with meals or snacks.

In the first year of Nawaz Sharif’s second term in power, Hamid Asghar Kidwai of Mehran bank fame, lived and operated from the Prime Minister House until he was appointed Pakistan’s ambassador to Kenya.

While making unending promises of instituting merit in all appointments and selections, Sharif played havoc with the system while issuing personal directives by ordering 30 direct appointments of officers in the Federal Investigation Agency (FIA). While Sharif was ordering these unprecedented direct appointments, his crony Saifur Rahman was seeking strict punishment and disqualification of former prime minister Benazir Bhutto for making direct appointments in Pakistan International Airlines.

Out of these 30 people who were directly appointed on posts ranging from deputy director to inspector in the FIA — without interviews, examination or training — 28 were from Lahore and were all close to the Sharif family or his government. One of the lucky inductees was a nephew of President Rafiq Tarar.

Nawaz Sharif had such an incredible liking for his friends from Lahore or Central Punjab, that not a single non-Central Punjabi was included in his close circle, both at the political or administrative levels in the Prime Minister’s Office. At one point, during his tenure, there was not a single Sindhi-speaking active federal secretary in Islamabad.

For about the first 18 months of Sharif’s second term in office, 41 of the most important appointments in Pakistan were in the hands of individuals who were either from Lahore or Central Punjab, despite the total lack of representation of smaller provinces in State affairs. Sharif stunned even his cabinet by choosing Rafiq Tarar for the post of President.

Unknown-7His activities were almost totally Lahore or Punjab focussed, reflected by the fact that in the first 16 months of power, he had only one overnight stay in Karachi. Conversely, he held an open Kutchery on every Sunday in Lahore, a gesture he never showed in any of the smaller provinces.

Nawaz Sharif, who had always promised a ‘small government’ ended up with no less than 48 people with the status of a federal minister in his cabinet. Ironically, less than fifteen per cent of the people in 49-member cabinet came from the three smaller provinces.

While anti-corruption rhetoric always topped his public speeches, Nawaz Sharif demonstrated tremendous tolerance for corruption as he completely ignored strong evidence laden corruption reports against Liaquat Ali Jatoi and his aides in Karachi.

Sources said that volumes of documents on the corruption of Liaquat Ali Jatoi, his brother Senator Sadaqat Ali Jatoi, the then Sindh health secretary and several of Liaquat’s personal staff members were placed before Nawaz Sharif, but he never ordered any action. These sources said that Nawaz Sharif also ignored evidence that showed Liaquat’s newly discovered business interests in Dubai and London.

Informed official sources said that Nawaz Sharif also ignored reports, even those produced by Shahbaz Sharif, about rampant corruption in the Ehtesab Cell (EC). Shahbaz Sharif and several other cabinet ministers had informed Sharif that Khalid Aziz and Wasim Afzal, Saifur Rahman’s right-hand men in the EC were involved in institutionalised corruption through extortion from Ehtesab victims and manipulation of the Intelligence Bureau’s secret funds.

Sources said that the Ehtesab Cell had issued official departmental cards to one Sarfraz Merchant, involved in several cases of bootlegging and another to Mumtaz Burney, a multi-billionaire former police official who had earlier been sacked from the service for being hand in glove with a notorious drug baron. Sharif was told that these two notorious individuals were serving as middle men between Khalid Aziz, Wasim Afzal and those sought by the EC both here and abroad.

Fully aware that Khawer Zaman and Major General Enayet Niazi were amongst the most honest and upright director generals of the FIA, he booted them out only to be replaced by handpicked cronies such as Major (Retd) Mohammad Mushtaq.

Sources said that while posting Rana Maqbool Ahmed as the Inspector General Police, Sindh, Nawaz Sharif was reminded by his younger brother Shahbaz Sharif about his reputation as one of the most corrupt Punjab police officers and also about his shady past. But Nawaz Sharif not only installed Rana as the IGP, but also acted on his advice to remove Gen. Moinuddin Haider as the Governor Sindh.

In a startling paradox, right at the time when the government media campaign was at its peak about the properties of Benazir Bhutto and Asif Ali Zardari in Britain, particularly Rockwood estate in Surrey, disclosures came to light about the Sharif family’s multi-million pound apartments in London’s posh district of Mayfair.

The apartment No: 16, 16a, 17 and 17a that form the third floor of the Avonfield House in Mayfair is the residential base for Sharif family in London. Records show that all those four apartments were in the name Nescoll Ltd and Nielson Ltd Ansbacher (BVI) Ltd, the two off-shore companies managed by Hans Rudolf Wegmuller of Banque Paribas en Suisse and Urs Specker — the two Swiss nationals alleged to be linked with Sharif’s offshore fortune.

In a knee-jerk reaction last year, Sharif first denied the ownership of those flats. Later, his younger son Hasan Nawaz Sharif said the family had leased only two of the flats, while their spokesmen, including former law minister Khalid Anwer, said that Sharif had actually rented those flats.

But what will count with legal experts is the fact that in their tax returns, none of the Sharif family members had ever showed any foreign ownership of any properties, nor had their tax returns listed payments for any rented apartments abroad.

“With the sale of these Mayfair apartments, you can buy three Rockwood-size properties of Asif Zardari,” commented a source, who added that Sharif’s third party owned properties in Britain may land them in a crisis comparable only with Benazir and Zardari’s cases abroad.

In another example of hypocrisy, while Sharif geared up his government’s campaign against loan defaulters in Pakistan, a High Court in London declared his family a defaulter and ordered them to pay US$ 18.8 million to Al-Towfeek Company and its subsidiary Al-Baraka Islamic Bank as payment for interest and loan they had borrowed for Hudabiya Papers Limited.

The court papers said that the Sharifs refused to make payments on the principle amount and instead directed official action against the Arab company’s business interests in Pakistan. Informed sources said that a few days before the fall of the Nawaz Sharif government on October 12, lawyers representing the Sharif family were busy in hectic behind-the-scenes negotiations with Al-Towfeek executives in London for an out-of-court settlement. These sources said that negotiations in London broke down soon after the army action in Islamabad.

While Nawaz Sharif deployed the entire state machinery and spent millions of dollars from the IB’s secret fund to prove money-laundering charges against Benazir Bhutto and her husband abroad, his government crushed any attempt by the FIA to move the Supreme Court of Pakistan against a decision handed down by the Lahore High Court absolving the Sharif family from money-laundering charges instituted against them by the last PPP government.

FIA officials who had investigated the money-laundering charges against the Sharifs faced termination from service, while the agency was told that even a decision to probe money-laundering was a crime. This particular case is likely to now go to the Supreme Court in the next few weeks.

SEVERAL INQUIRIES AGAINST SHARIFS PENDING WITH NAB  

ISLAMABAD – Some three corruption references and almost half a dozen inquiries were pending with National Accountability Bureau (NAB) and Accountability Courts against former Premier and PML-N President Mian Muhammad Nawaz Sharif and his other family members, but the same could not be reopened as the Division Bench of Lahore High Court Rawalpindi Bench had barred the NAB to proceed against Sharif family.

Officials in the National Accountability Bureau informed The Nation that the Division Bench of Lahore High Court Rawalpindi Bench consisting of Justice Ijazul Hasan and Justice Wahid Khan, an appellate forum of Accountability Courts, had barred the Accountability Courts to proceed against Mian Nawaz Sharif and other family members in these three cases in October last year. The preemptive move was made in the Division Bench of LHC Rawalpindi after the incumbent Chairman NAB Admiral (Retd) Fasih Bokhari was appointed despite the objection on his appointment was made through a letter written to President Asif Ali Zardari by Leader of the Opposition in the National Assembly Ch. Nisar Ali Khan.

Sources in the PML-N informed that they had secured stay order against reopening of these cases from the Appellate Court only to prevent the PPP-led coalition government to use these cases for arm twisting of the PML-N leadership though NAB.

So an application for early hearing of their petition, pending with the court for past several months, was initiated and the very next day of moving of the application by AkramSheikh Advocate stay against the opening of these cases was secured from the Division Bench of LHC Rawalpindi.

All the three cases-Hudaybia Paper Mills,Ittefaq Foundries and Assets reference—were framed against Mian Nawaz Sharif and his family members after dislodging of his elected government in 1999 and during year 2000 and initially all the three cases had been fixed for trial at Accountability Court Attock where Mian Nawaz Sharif and his brother MianShahbaz Sharif were kept after the dislodging of their government. All these cases were adjourned sine die under some clandestine deal when Mian Nawaz Sharif and his family was exiled to Saudi Arabia.

These cases were reopened in year 2007 when the Supreme Court allowed Mian Nawaz Sharif to return back to Pakistan but once again he was sent back to Saudi Arabia moments after he landed here at Islamabad Airport.

The request for the reopening of these cases was again made in year 2010 when the then Prosecutor General NAB Dr Danishwar Malik had moved an application seeking reopening of these cases on the plea that as the accused in these cases had returned back to the country so the cases against them should be reopened. But the matter once again went into limbo when the Accountability Court Rawalpindi No. 1 judge directed the Prosecutor General to furnish the request for reopening of these cased duly signed by Chairman NAB but as the slot of Chairman NAB was vacant and once again the court had adjourned these cases sine die. In State vs Hudaybia Paper Mills (Pvt) Ltd-nine members of the Sharif family were accused of committing a corruption of Rs 642.743 million.

As per NAB allegations the accused had secured loan against the Hudaybia Paper Mills and later used this money to pay off the loans of other companies owned by the Sharif family. Mian Muhammad Sharif, Mian Nawaz Sharif, Mian Shahbaz Sharif, Mian Abbas Sharif, Hussain Nawaz, Hamza Shahbaz Sharif, Mrs Shamim Akhtar (Mother to NawazSharif), Mrs Sabiha Abbas, Mrs Maryam Safdar and former Federal Minister Ishaq Dar were the accused in this reference.

In State Vs Ittefaq Foundries etc, Mian Nawaz Sharif, his brother Mian Abbas Sharif and Kamal Qureshi were charged with the willful default of Rs 1.06 billion.

The main allegation against the accused in this case was that M/s Ittefaq Foundries Ltd obtained cash finance from National Bank. As per NAB allegations, the company willfully defaulted to pay back the amount in 1994. In State vs Mian Muhammad Nawaz Sharif etc is about the Raiwind assets.

Main allegation in this reference is that the accused had acquired vast tracts of land on which a number of palatial houses and mansions were constructed with less resources, which appeared to be grossly disproportionate to their known sources of income. As per NAB allegations, there involved an amount Rs 247.352 million that is under question. Apart from Mian Nawaz Sharif, his mother was also an accused in this case.

There are six investigations against Sharif pending before the NAB following Chairman NAB’s order. These pending investigations included; case of illegal appointments in theFIA against Mian Nawaz Sharif; misuse of authority by Nawaz Sharif as ex-Chief Minister Punjab in the construction of road from Raiwind to Sharif family house causing loss of Rs125 million; Sharif Trust case against Nawaz Sharif/Sharif Trust involving allegation of money laundering, misappropriation of trust funds and acquisition of benami assets in the name of Sharif Trust; London properties case against Nawaz Sharif and others regarding owning of Aven Field properties in London; Illegal appointments in PIA allegedly byMian Nawaz Sharif, and corruption in the allotment of Lahore Development Authority (LDA) plots involving ex-CM Nawaz Sharif, ex-DG LDA Brig (Retd) Manzoor Malik, ex-Director Estate and Shahid Rafi.

Two pending inquiries against Sharifs in the NAB included a complaint of allotment of LDA plots and another complaint about alleged misappropriation of government property by allotting 12 plots to Mian Attaullah instead of one in Gulshan Ravi Scheme ,thereby, causing loss of Rs 20 million to the State.

It is pertinent to mention here that Mian Muhammad Nawaz Sharif and other accused in plane hijacking and helicopter case were acquitted

 
 

 

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HISTORY OF CORRUPTION OF SHARIF BROTHERS

Unknown-6HISTORY OF CORRUPTION OF NAWAZ SHARIF SO CALLED POLTICAL LEADER OF PAKISTAN PART 1

History of Mian Muhammad Nawaz Sharif So Called Poltical Leader of Pakistan

12DEC

In the early eighties, after that Nawaz Sharif had completed his education his father Mian Muhammad Sharif started him in the business. However, this proved a disaster. As a second option Mian Muhammad Sharif set him up with Pakistani actor Saeed Khan Rangeela to get him into acting (something which Nawaz Sharif wanted).

A few days later Saeed Khan Rangeela sent his regrets to Mian Muhammad Sharif saying that his son was too dumb for acting and movie industry. Mian Muhammad Sharif then a cricket coaches to train his son for cricket, but his physical fitness was too low for the sport. It is rumored that by mid-day on his first day at training Nawaz Sharif threw the bat down and left the stadium saying, “This is too tough for me.”  As a last resort he paid General Ghulam Jilani Khan a considerable sum of monies to introduce Nawaz Sharif to General Zia-ul-Haq recommending him for a political post, who in turn made Nawaz Sharif the Finance Minister of Punjab. This was the day when the street thugs of Mohni Road had stepped on to becoming the national thugs of Pakistan.

The day Nawaz Sharif had become Finance Minister, the entire family’s earnings were few million rupees and had only one refinery. From there they went on to: Ittefaq Sugar Mills was set up in 1982, Brothers steel in 1983, Brother’s Textile Mills in 1986, Brothers Sugar Mills Ltd in 1986, Ittefaq Textile units in 2-3 in 1987, Khalid Siraj Textile Mills in 1988, Ramzan Buksh Textiles in 1987, Farooq Barkat (pvt) Ltd in 1985. By the time of Zia ul Haq’s fateful plane crash, Mian Muhammad Sharif’s family was earning a net profit of US$ 3 million, up from a few million rupees. By the end of the decade their net assets were worth more than 6 billion rupees, according to their own admission, nearly US$ 350 million at the time. But this turned out to be small-change when Nawaz Sharif became the Prime Minister.

When Nawaz Sharif became prime minister, the group took a decision to secure project loans from the foreign banks and only working capital were taken from the nationalized commercial banks. The project financing from foreign banks was ostensibly secured against the foreign currency deposits, a number of which were held in benamee accounts, as repeatedly claimed by Interior Minister Naseer Ullah Babar at his press conferences. In 1992 Salman Taseer released an account of Nawaz Sharif’s corruption stating that the family had taken loans of up to 12 billion rupees, which were never paid back. On March 2, 1994, Khalid Siraj, a cousin of Nawaz Sharif claimed that the assets of the seven brothers were valued at Rs 21 billion.

These were the accounts of profits and companies which were openly known to public. However, the family kept their side business going all the while ” the gambling dens and heroin control in Lahore ” and along with their industry the side business also mushroomed.

During the Afghan-Soviet War Nawaz Sharif’s cousin Sohail Zia Butt started working under the drug baron Mirza Iqbal Beg, then Pakistan’s second biggest drug lord after Ayub Afridi. Mian Muhammad Sharif and his sons had a permanent share in his gambling and heroin business. In 1990 Suhail Butt won a seat on the Islami Jamhoori Ittehad ticket in the Punjab Assembly. It was through Sohail Butt’s association that Nawaz Sharif became a close associate of Mirza Iqbal Beg. It was through him that Nawaz Sharif became benami owner of many of the privatized government entities, such as Muslim Commercial Bank. Sohail Zia Butt other than getting involved in the drug business made billions in the co-operative societies’ collapse, mainly through the National Industrial Credit and Finance Corporation. It was Nawaz Sharif’s share in his cousin’s drug business which he used to buy off the generals thereby delaying the inevitable dismissal of his government.

In 1995 when Mirza Iqbal Beg was imprisoned, Sohail Zia Butt took over his drug empire. It is at this time that he became one of the biggest drug and crime bosses in Pakistan and was nicknamed the “King of Hera Mandi” and at one time all six underworld gangs of Lahore were working under him.

By 1995 family’s declared annual profits from industrial units had increased 1500% from US$ 30 million to staggering US$ 400 million.

This is the short version of how in mere 15 years small street thugs running gambling dens became leaders of a country running narcotics, underworld and smuggling empires, untouched by everyone.

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Deadly Debt Trap

Deadly debt trap

The only way to come out of prevalent economic mess is to accelerate growth and enhance tax revenues

By Huzaima Bukhari & Dr. Ikramul Haq

ikram@huzaimaikram.com

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Pakistan trapped in deadly ‘debt prison’ needs concentrated short and long term efforts to come out of it. Unfortunately, till today no workable plan and viable strategy is devised by the government or any political party in opposition to tackle the issue. The debt burden — Rs14.5 billion internal and $60 billion external — is becoming unmanageable as major resources are consumed by debt servicing. The budget allocation of Rs1.52 trillion for retiring public debt and payment of interest during fiscal year 2013-14 would prove short as there was surge of Rs180 billion in external debts alone during July 2013.

On July 29, 2013, the rupee recorded its lowest value against the dollar: Rs102.4 in the interbank market, Rs104.7 in open market, but actual rate was Rs105.5. Continuous slide of the rupee is not merely due to widening demand-supply gap or maneuverings by unscrupulous elements. Other factors are external debt repayments of around $1billion and speculations about official devaluation in the wake of IMF bailout.

Devaluation will have devastating effects e.g. tremendous surge in public debt (one rupee loss in the exchange rate adds Rs60 billion to public debt), enhancement in debt servicing, further widening of fiscal deficit and more expensive imports, especially of crude oil raising cost of all goods and services.

Already huge debt servicing is taking a heavy toll on economy — fiscal deficit for financial year 2012-13 jumped to 8.8 per cent of GDP as shortfall on the part of Federal Board of Revenue (FBR) alone was Rs442 billion. The fast depletion of foreign exchange reserves — from $14.776 billion in July 2011 to $5.153 billion by July 2013 — aggravated the situation. Heavy repayments to the IMF and others plus financing of current account deficit amounting to $2.3 billion in 2012-13 forced the new government to approach the IMF for a bailout package.

The situation on internal debt is equally disturbing. The government, for the first time in the history, borrowed from local banks Rs one trillion during the fiscal year 2012-13. The net government borrowing from domestic banks increased to Rs1.012 trillion between July 1, 2012 and June 28, 2013 against Rs629.9 billion over the same period last fiscal year. The federal government borrowed Rs1.005 trillion for budgetary support as compared to Rs696.5 billion during the corresponding period fiscal year.

The reckless and unabated borrowing from commercial banks is not only retarding growth but also depriving private sector of the much-needed funds for investments. It is but also forcing State Bank of Pakistan (SBP) to inject heavy amounts of liquidity in the banking system through frequent open market operations as high borrowings wipe out liquidity from the money market.

The only way to come out of prevalent mess is to accelerate growth, generate employment, enhance tax revenues, and stop financing luxuries of elites and losses of public sector enterprises (PSEs). But the present government, like the PPP-coalition government, is not serious about it. During its election campaign, the Pakistan Muslim League-Nawaz (PML-N) made tall claims that on assuming power it will get rid of the “cancer of external debts”.

However, the PML-N government is knocking the doors of international lenders more vigorously than the PPP. Besides the IMF’s lending of $5.3 billion to pay off previous loan, Finance Minister Ishaq Dar is approaching Asian Development Bank and World Bank for further borrowing. The main priority of the government is to rely more on external borrowing than mobilising own resources.

Internal debt is now 68 per cent of GDP breaching the limit of 60 per cent imposed under the Fiscal Responsibility and Debt Limitation Act 2010. The law requires the government to prepare and revise the debt management policy every year in January but nothing has been done as there is no debt reduction plan. Making things worse, the government is not inclined to impose fiscal discipline and reckless borrowing continues to pay off liabilities of the corruption-ridden inefficient PSEs. According to SBP, the funding of PSEs has hit economy heavily, increasing the stock of total debt & liabilities (TDL) by Rs500-600 billion.

All the governments — civil or military alike — have failed to end debt enslavement by raising revenues even to the extent of Rs6 trillion, though actual potential is not less than Rs8.5 trillion [complete roadmap was given in Taxing targetsThe News, August 26, 2012]. Unless it is done, Pakistan can never come out of the ‘debt prison’.

The Senate was informed on January 23, 2013 that over 3.39 million individuals had National Tax Numbers (NTNs), but only 885,999 businesses filed their returns. The former finance minister, Abdul Hafeez Sheikh, admitted that the number of income tax filers had drastically reduced to 1.6 million by 31 December 2012. The Senate was told that “a large number of businesses and individuals, who were regularly filing their income tax returns, are now avoiding their legal obligations by either under-declaring or incorrectly declaring their assets and incomes”.

After admitting widespread tax non-compliance, no action was taken against any official of the FBR. There is no will to eliminate wasteful spending on monstrous government machinery and inefficient PSEs. The way the government is moving our foreign debt would reach US$75 billion in 2015 and domestic debt would be Rs22 trillion. The policies of appeasement towards tax evaders, money-launderers and plunderers of national wealth and monopolisation of resources by Riasti Ashrafiya(state aristocracy) have pushed the country towards disaster.

The word ‘austerity’ is not in the dictionary of state aristocracy — indomitable military-judicial-civil complex and men in power. The habit of living beyond means — our national addiction — has turned the nuclear-powered Pakistanis into a nation holding the beggar’s bowl. When foreign lenders see the lifestyle of our ruling elite, they immediately show indignation — it is hard to believe for them that the rulers of a nation surviving on borrowed funds can display such flamboyance.

The reluctance to collect taxes from the rich and mighty, rather giving them free benefits and perquisites at state’s expense, is worsening the miseries of the poor. There is no scarcity of resources as propagated by the rulers to shift blame on others, but the real cause is outlandish living of the elites off taxpayers’ money [‘Public parasites’The News, July 21, 2013]. Look at residences of judges, generals and high-ranking civil officials with army of servants and fleet of cars.

Wasteful spending on state aristocracy and unwillingness to tax the rich is playing havoc with the economy. Behind the present chaotic socio-economic and political situation in Pakistan, amongst other factors, is an ever-widening gulf between the rich and the poor. With every passing day more and more people are being pushed below the poverty line — their total number is now not less than 60 million in a country where rulers unashamedly waste billions on their comforts and personal security.

The present crisis testifies to the failure of power-hungry, money-greedy politicians and incompetent, inefficient and corrupt bureaucrats. Even the so-called technocrats always take the first flight to Washington after creating mess — where are Shaukat Aziz and Abdul Hafeez now? In this bleak scenario, Riasti Ashrafiya is not ready to surrender extraordinary perks and privileges enjoyed by them at the cost of taxpayers’ money. How can rulers and bureaucrats living in fortified containments, completely oblivious of the ordinary people’s plight, feel the pinch of life’s hardships?

We cannot come out of debt-enslavement unless we restructure our state on the principle enshrined in Article 3 of the Constitution — from each according to his ability, to each according to his work. For this, everyone should be given work and fair reward for that. There should be a complete change in the style of governance — the president, governors, prime minister, chief ministers, ministers, parliamentarians, and high-ranking government officials should be paid ‘consolidated pay’ liable to tax like income of an ordinary citizen.

Palatial residences occupied by them should be sold or converted into income-yielding assets, and all perquisites of civil servants and public office-holders should be monetized to remove the burden off our country’s broken financial back.

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The writers, lawyers and authors of many books, are Adjunct Faculty Members at Lahore University of Management Sciences (LUMS)

 

 

 

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