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Posted by admin in NAWAZ SHARIF SAGA OF ABSOLUTE & CHRONIC CORRUPTION on December 26th, 2013
Posted by admin in NAWAZ SHARIF LOAN SCAM on December 17th, 2013
Yet another fraud in offing.The fate of this scheme is going to be similar to that of Yellow Taxi scheme of 90s floated by NS. Thereafter, all the six nationalised banks had to write off around Rupees nine Billion, while 80% cars landed in Afghanistan. This time its going to be 100 Billion default portfolio at stake to be borne by just one & half bank only. Poor will die running from Bank to Bank day dreaming for a loan.
Published 2013-12-11 16:04:07
The Scheme may end up with billions of dollars in toxic debt. While it appears to be a well-intentioned Scheme to offer business loans to the youth, it may end up becoming a massive exercise in sub-prime lending where the defaulted amounts will be added to the ever-growing public debt.
Pakistan’s Prime Minister, Mian Nawaz Sharif, launched the Youth Business Loan Scheme
earlier this week. The 100 billion rupees Scheme will give out 100,000 loans to young entrepreneurs to launch small businesses. The loans will range from 100,000 rupees to a maximum of two million rupees. The borrower will pay an 8 per cent annual interest rate, whereas the lending institutions will charge approximately 15 per cent in annual interest. The government will subsidize the loans by covering the borrowing cost for the difference between the rates charged by lenders and 8 per cent paid by the borrower. The Scheme will be run by the Prime Minister’s daughter, Maryam Nawaz Sharif.
Pakistan is suffering from widespread under- and unemployment resulting in the youth being readily recruited by religious and other extremist groups. In such dire circumstances, any scheme that engages the youth in commerce and productive activities must be a step in the right direction. However, despite the good intentions, the Scheme appears to be flawed and ill-conceived. Furthermore, the claims that theScheme will be free of corruption
and nepotism fly in the face of the Prime Minister’s decision to put his daughter in charge of a 100 billion Rupee lending program.
Successful entrepreneurs turn investment and opportunity into profits and prosperity. They are driven by the desire to create something new as they chase their dream in every living moment of their lives. Bill Gates, Michael Dell, Steve Jobs, Larry Page and Sergey Brin are all examples of entrepreneurs who launched small businesses and with passion and perseverance grew their small businesses into multi billion dollars corporations.
The fine distinction between a loan and an investment appears to be lost in the Prime Minister’s Youth Business Loan Scheme. Does Pakistan really have 100,000 entrepreneurs ready to turn opportunity and capital into profits and prosperity? Or will the nation end up with billions in loans extended to those who couldn’t even write or conceive a business plan.
Even if one were to assume that the 180 million Pakistanis are fortunate to have 100,000 budding entrepreneurs ready to make their mark, the very structure of the Scheme is riddled with constraints and contradictions that may take away the very incentive to put the borrowed funds to productive use.
For starters, consider that an applicant doesn’t need to submit a business plan with the application for the loan. SMEDA, a partner agency along with the State Bank of Pakistan, offers templates for how to develop a business plan
on its website. However, the very first item in the template states the following: “A business plan is not required for PM’s youth business loan scheme.” How on earth will the lenders determine the feasibility of the proposed business?
Take the example of Canadian Youth Business Foundation
that offers up to $45,000 in start-up financing to youth for new businesses. The program does not limit its role to extending credit, but instead it guides the engaged youth in developing business plans, arranging mentors, and making available other resources for a successful execution of their business plans. No one gets financing without a business plan in Canada!
I see the Prime Minister’s Scheme bearing the signs of sub-prime lending because many unsuspecting individuals will end up borrowing huge sums for projects they will not be able to plan or execute, thus resulting in defaults. Remember, if the prospective borrowers are not required to furnish a business plan, how will lenders differentiate entrepreneurs from subprime borrowers?
The two leading banks in the Prime Minister’s Scheme are the National Bank and the First Women Bank. The lenders have set the lending (interest) rate at KIBOR plus 500 basis points. Since the base rate in Pakistan is hovering around 10 per cent, the lenders are adding 500 basis points on top of it to end up with an interest rate of 15 per cent. However, if the base rate fluctuates, as it has done in the past, the cost of borrowing can change as well. This can play havoc with the balance sheets of even well-planned businesses who may have naively assumed that they were protected from fluctuations in interest rates.
Notice that inter-bank interest rates in Pakistan were as high as 14 per cent in 2011. What if the 8 per cent mark-up or interest rate advertised by the Prime Minister’s office end up being a teaser rate? The odds of that happening are high and the borrowers under this Scheme will be at the mercy of lenders, especially if the government withdraws its subsidy and sovereign guarantee during the 8-year life of the loan. Clause 8 under Terms and Conditions of the loans states explicitly that if the current or any future government were to withdraw the subsidy for any reason, the borrower agrees to pay against the revised interest rate set by either the National Bank or the First Women Bank.
The 2007-08 global recession was brought about by similar lending practices in the United States where sub-prime mortgages were offered to un-creditworthy borrowers who were enticed by very low mortgage rates that lasted for only a short while. As soon as the higher mortgage rates kicked in, borrowers lacking a stable source of income ended up defaulting on their mortgages resulting in a global crisis because the sub-prime mortgages were bundled as mispriced derivatives that concealed the inherent risks in those investments. Could Pakistan be next with its 100 billion Rupee toxic debt?
If the partner Banks are correct in pricing the debt at 15 per cent, these loans may create a secondary debt market managed by those who would like to benefit from the opportunity for arbitrage, i.e., borrowing two million rupees at 8 per cent and lending it at 15 per cent, thus avoiding the need to start a business and create employment opportunities for others. These borrowers may end up becoming shark investors themselves as they loan funds to the financially disenfranchised in their communities. This will generate a source of revenue for some, but will defeat the very purpose of the Scheme that aspires to start an entrepreneurial revolution in Pakistan.
And what about the notion of Islamic banking? Remember that the Muslim League has always pandered to the religious right who have shun the very concept of ribaa(interest). These loans are structured as traditional debt where the borrowers are expected to return the principal and interest for a fixed interest rate of 8 per cent. The loan repayment schedule posted as Excel spreadsheets lay bare the structure of these loans. A video posted on the SMEDA website shows an individual who explains the details of the Scheme. Fast forward the video to eight minutes and 45 seconds to see the gentleman almost choking at the word interest
and with some effort replacing it with profit margin.
Calling interest payments profit sharing is intellectual dishonesty. What business turns profit in the first month? Those familiar with the risk/venture capital know it takes years before the business turns profitable. Until that time the business merely services the debt. Also misleading is the claim that the Scheme offers the first year as a grace period. The loan repayment schedule illustrates that the borrowers have to make interest payments in the first year and are exempted only from repaying principal in the first year.
Details on what happens in the case of default are sketchy at best. The borrowers are expected to put only 10 per cent in collateral. In case of default and with a 10 per cent limited exposure, the borrower can simply walk away from liabilities, leaving the public sector to foot the cost of defaults.
Pakistan is not without the expertise to roll out such Schemes to meet their objectives. Organisations such as the National Rural Support Programme
and Tameer Bank
have significant experience in micro finance and operations in near and remote parts of Pakistan. Their decades of experience and demonstrated success is the competitive advantage that the Prime Minister could have tapped into. Instead, it appears that the 100 billion Rupees initiative is being used to bolster Maryam Nawaz Sharif’s claim to inherit the Muslim League’s throne against the rival bid by the Prime Minister’s nephew, Hamza Shahbaz Sharif.
A 100 billion rupees is too big an amount to settle a family dispute over succession
Posted by admin in NAWAZ SHARIF FAMILY TURPITUDE on November 14th, 2013
Will there be justice?
“In August 2008 the reopening by the National Accountability Bureau (NAB) of the corruption cases about Hudaibiya Paper Mills, Ittefaq Foundry and Raiwind assets meant that the entire Sharif family was in the dock. There are three cases against the Sharif brothers and their families, which do not fall under the ambit of the National Reconciliation Ordinance (NRO), as all these were established after 1999. The cases were registered in 2000. Nine persons were nominated in the Hudaibiya paper mills case. They are late Mian Muhammad Sharif, Nawaz Sharif, Shahbaz Sharif, widow of Mian Muhammad Sharif, Mian Abbas Sharif, Hussain Nawaz, Hamza Shahbaz, Shamim Akhtar, Sabiha Abbas wife of Mian Abbas Sharif and Mariam Safdar. In the case of Hudabiya Sugar Mills, the charge is of money laundering to the tune of over Rs600 million whereas in the case against Ittefaq Foundry, the directors are accused of bank loans default involving a total sum of Rs1.6 billion.”
Email From A Member Pakistan Think TankSubject: Sharif Family SagaFrom: Payja <Gowalmandi>Date: 3 October 2013 14:00:19 GMT+5
To: undisclosed-recipients:;
Subject: Fwd: Sharif FamilyPakistan’s political system is broken: its political parties are ineffective, functioning for decades as instruments of two families, the Bhuttos and the Sharifs, two clans, both corrupt. The Bhutto-Zardari axis may be considered “left leaning,” while the Sharif brothers may be considered “right leaning.” The Sharifs are much closer to Pakistan’s military, and to Pakistan’s Muslim fundamentalists. Punjabi, the Sharifs represent Pakistan’s major ethnic bloc, and the devout Sunni Sharif has an advantage over the Bhuttos, who have Shiite ties.In 1968, Dr Mahbubul Haq spoke of 22 families that controlled 68 percent of Pakistan’s industrial assets, 86 percent of banking assets and many other sources of income generation. Almost all the big business groups of the 1970s had started in 1947 as family joint ventures.Mian Sharif and his six brothers set up an iron-melting furnace in Landa Bazaar and in 1967-68 expanded the business with his brothers. Later, he set up the Ittefaq Mills in the Shahara area. He went on to set up the Ittefaq Group of Companies and more than half a dozen factories and sugar mills across the Punjab, rising to fame in Pakistan’s business circles.Mian Sharif’s business faced a serious setback during the Zulfikar Ali Bhutto’s regime, as the government nationalised his industrial units and took over the Ittefaq Foundry. In 1972, when Zulfikar Ali Bhutto nationalized the Ittefaq Foundry, the heart of the Sharif family’s industrial empire, this set the Sharif family back considerably. The Sharifs disappeared from public eye and tried doing business in the West Asia. Mian Sharif founded the Sharif Group of Industries in 1974 after the nationalisation of the Ittefaq Foundry on the orders of prime minister Zulfiqar Ali Bhutto.In 1981, the family returned with a bang, and shot up to power. When Gen Ziaul Haq deposed Zulfikar Bhutto and took over as the chief martial law administrator, Mian Sharif and his three sons returned to Pakistan and managed to get the Ittefaq Foundry back from the government. In 1978, General Ziaul Haq handed over Ittefaq Foundry to the Sharifs of Lahore without inviting any bids. In fact, two other nationalised units, Nowshera Engineering in the NWFP and Hilal Ghee in Multan, were handed over to their original owners. Mian Sharif also developed friendly relations with Gen Zia and became one of the general’s most trusted men. In 1983, General Ziaul Haq inducted Nawaz Sharif into the Punjab provincial cabinet as finance minister.During the rule of Nawaz Sharif, the Gidani beach was the largest ship breaking industry in the world, providing more than $1 Billion in earnings to the people of the Mekran coast. To help the Ittefaq foundry keep its monopoly on steel, Nawaz Sharif imposed strict tariffs on the ship breaking industry, while expropriating the Pakistan Railway for free transportation of imported steel to Ittefaq Foundry. These acts of Nawaz Sharif destroyed the largest ship breaking industry in the world. The ships were sold at scrap value and provided valuable engines and repair material to an entire industry in Pakistan. The Gidani beach provided steel to the Pakistan Steel Mills as very low cost.The House of Ittefaq, the industrial conglomerate of Prime Minister Nawaz Sharif’s family, is not unity anymore and 119 offspring’s siblings and spouses of the seven founding brothers are currently battling in courts for the division of the assets of the Ittefaq group. As soon as Nawaz Sharif became Prime Minister in 1990, Mian Mohammad Sharif switched over to setting up projects independent of the other partners, thus laying the grounds for split. According to agreement reached in Lahore High Court by members of the family sometime in 1996, the House of Ittefaq split in two groups. The first comprised the families of Mian Mohammad Sharif, Mohammad Shafi, Barkat Ali, Yousaf Aziz and Idrees Bashir while the second group comprised the families of Meraj Din and Siraj Din. Members of the Ittefaq group are currently operating in three groups namely Sharif Group, Ittefaq Group and Haseeb Waqas Group. The three groups have only four companies listed on the Karachi Stock Exchange (KSE).
Former prime minister Nawaz Sharif left the country along with 18 other family members in December, 2000, after striking a deal with the military government. Mian Muhammad Sharif, father of Pakistan’s ex-Prime Minister Mian Nawaz Sharif, died in October 2000. Mian Sharif, a respected politician and noted industrialist of Pakistan, was in exile in Saudi Arabia along with his family after an agreement in 2000 with the Pakistan government.The Sharif family is the most influential family in the Punjab province, especially in the urban areas. The Sharif family is moving into third-generation politics. By grooming their sons, the Sharifs are perpetuating a political tradition that allows a few families to maintain a hold over national politics. The PML (N) continued to be led by the Sharif family, despite their exile in Saudi Arabia and the Saudis’ restrictions on their political activities, that effectively cut them out of the 2002 elections.In August 2008 the reopening by the National Accountability Bureau (NAB) of the corruption cases about Hudaibiya Paper Mills, Ittefaq Foundry and Raiwind assets meant that the entire Sharif family was in the dock. There are three cases against the Sharif brothers and their families, which do not fall under the ambit of the National Reconciliation Ordinance (NRO), as all these were established after 1999. The cases were registered in 2000. Nine persons were nominated in the Hudaibia paper mills case. They are late Mian Muhammad Sharif, Nawaz Sharif, Shahbaz Sharif, widow of Mian Muhammad Sharif, Mian Abbas Sharif, Hussain Nawaz, Hamza Shahbaz, Shamim Akhtar, Sabiha Abbas wife of Mian Abbas Sharif and Mariam Safdar. In the case of Hudabiya Sugar Mills, the charge is of money laundering to the tune of over Rs600 million whereas in the case against Ittefaq Foundry, the directors are accused of bank loans default involving a total sum of Rs1.6 billion.
Posted by admin in " RIAZ THE SHAITAN OF PAKISTAN, ADHD NAWAZ SHARIF, BOOT THE SCOUNDRELS OR SHOWDAZ, CHACHA SAM'S MAKHAN BAZI, Corruption, EXPATRIATE PAKISTANIS SPEAK-UP, GHADAAR-I-PAKISTAN NAWAZ SHARIF, Looters and Scam Artists, Nawaz Sharif & Kashmiri Biradari, Nawaz Sharif Dangerous Man, NAWAZ SHARIF DICTATOR, Nawaz Sharif Massive Corruption, NAWAZ SHARIF MUZZLES PRESS, NAWAZ SHARIF SAGA OF ABSOLUTE & CHRONIC CORRUPTION, NAWAZ SHARIF US & SAUDI AGENT, NAWAZ SHARIF: THE LOOTER, Nawaz US Agent, Pakistan's Hall of Shame on August 31st, 2013
HISTORY OF CORRUPTION OF NAWAZ SHARIF SO CALLED POLTICAL LEADER OF PAKISTAN PART 1
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.
Posted by admin in ADHD NAWAZ SHARIF, BOOT THE SCOUNDRELS OR SHOWDAZ, BUNGLER NAWAZ SHARIF, COWARD OF KARGIL NAWAZ SHARIF, LIAR POLITICIANS, Nawaz "Badami Lassi Kim Barker Thurke" Sharif, Nawaz Dangerous, Nawaz Sharif Womanizer, Nawaz Sharif-The Prime Minister from Hell, Nawaz US Agent on June 14th, 2013
PMLN Threatens Anchor Mubasher Lucman During Live TV Show
SPECIAL REPORT | 12 June 2013
PakNationalist.com
TV anchorman Mubasher Lucman was threatened on live television after he aired footage of Punjab police storming the houses of Faisalabad residents protesting against the government of Chief Minister Shahbaz Sharif.
Lucman received the threat during his 10 pm prime-time show Khari Baat on ARY News last night.
The video of the police action has gone viral on social media. It shows police brutality by the newly formed government of PMLN, the party of Prime Minister Nawaz Sharif. The protesters were out against the acute power crisis in the central Punjab city of Faisalabad, a hub of textile and agriculture.
During the show, Lucman picked his cell phone and said he just a received a text message in Urdu that said, ‘Apni Khair Manao!’ [Literal translation: ‘Pray for your safety’].
After reading the text message, Lucman looked into the camera and addressed Chief Minister Sharif saying he will stay put in Lahore and is ready to face the wrath of the powerful chief minister.
Lucman did not reveal the identity of the sender of the text message.
Lucman compared Sharif to a pharaoh and asked his producer to show again the footage of Sharif’s police storming the houses of poor Faisalabad residents. The ruthless action by the new government of PMLN, which swept the 2013 general election, has surprised Pakistanis.
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