Loud Thinking

Archive for November, 2017

Few suggestions to improve economy on fast track after the great escape of the hitman..!

According to a news item reported today, our federal government is moving fast in the direction of further burdening Pakistan, with the borrowing of fresh loans.

Link:
Amid declining reserves, Pakistan set to start borrowing journey https://tribune.com.pk/story/1564936/2-amid-declining-reserves-pakistan-set-start-borrowing-journey/‬

As we are well aware that currently Pakistan’s total internal and external debt liability stands at a whopping number of $250 billion, which is almost equal to our GDP of under $300 billion. [ Finance Minister Ishaq Dar is often accused of manipulating figures to show reduced fiscal deficit as well as the total debt that according to the central bank rose to Rs22.2 trillion in 2016-17 compared to Rs14.8 trillion of 2013. The latest figure of the total debt stands at Rs25 trillion. link…https://tribune.com.pk/story/1544770/2-ticking-economic-bomb/ ]

Every sane person in Pakistan knew well in advance that Mr. Ishaq Dar will ultimately sink the country economically; and leave it after recklessly borrowing loans, with interest rates as high as 8.25%, which till date, stands as a world record, for highest interest rate.

The solution for Pakistan’s economic malaise can not and never be found in getting loans to repay the loans and to build false foreign exchange reserves with loans.

The cardinal rule to build a sustainable economy is to live within the means; for which austerity is the secret of success.

In Pakistan, we can easily control our expenses, if the following statement is adopted as a motto/mission; and implemented as an official policy, and is also displayed in the offices of the civil and military bureaucracy, just below the portrait of Quaid-e-Azam Muhammad Ali Jinnah Sahab:

“Recall the face of the poorest and the weakest man whom you may have seen and ask yourself if the step you contemplate is going to be of any use to him.”

Moreover, the following austerity measures may be adopted on emergency basis till our budget deficit is overcome and total government debt is repaid:

1. No officially paid foreign treatment for any government official or public representative be allowed without exception.

2. No government official or public representative be allowed air travel (domestic & foreign) in business/first class, on official expense.

3. No foreign tours for government officials and public representatives on official expense, without the permission/clearance of the chairman NAB. In this regard, for the foreign visits of President, Prime Minister and CM’s, no more than two persons shall accompany them on official expense.

4. All public sector organisations/corporations/
companies and sports organisations falling under the purview of the federal and provincial governments of Pakistan, must be headed by a private sector person, who should be suitably qualified, experienced and duly recommended by the Federation of Pakistan Chambers of Commerce and Industry/PEC/PMDC and other such relevant apex bodies. Moreover, all such organisations must be bound to send their internal, external and special audit reports to the Chairman NAB on regular basis.

5. Immediate issuance of orders for 50% reduction in protocol expenses (specially the motorcade) of all VVIP and other government and public servants and representatives.

6. No subsidised food and other items be allowed to be served, in the canteens/restaurants/kitchens of the President/PM houses/offices, Senate, National and Provincial assemblies.

7. Complete bar/ban on any development allocation to the parliamentarians.

8. Total ban on announcements of funds/packages for development schemes by the President/PM, CM’s and anyone for any area, community, scheme, organisation, body or NGO. All such decisions should be mentioned in an organised manner in the annual budget.

9. No announcements by any government functionary of rewards for players/board employees of sports board/body/Federation etc from the national exchequer, as was recently done in July last, to the cricket players and employees of the PCB, after the victory in the Champions Trophy, when besides players, board employees were also given crores of Rupees from the national exchequer of the country, which is obtaining loans to repay its debt.

10. Strict moratorium on purchase of news cars/vehicles by any government department or organisation, before 10 years use of the old car.

11. Complete ban on official entertainment (Breakfast, Hi-Tea, Lunch or dinner) except one dish serving for any local guests and two dishes for foreign guests.

12. No payment (in any official legal case of government or its allied departments/organisations) to any lawyer on government expense over Rs.1 million. Beyond this amount payment approval must be obtained from the chairman NAB.

13. Only one premises should be given the status of President House, Prime Minister House, Governor House and the Chief Minister House.

Besides the above austerity measures, the following steps are also suggested to rejig the national economy on a fast track mode.

1. Request to all foreign donors for a 10 years moratorium, on all debt repayments by Pakistan, which is a frontline state of the world’s war on terror (WOT). Here, don’t forget that the world powers have totally written off loans of many countries, for much less cooperation than Pakistan, which is practically fighting their war, for more than a decade and a half.
2. 20% per annum reduction in all non-developmental government expenditures, plus total freeze in all perks paid from the national exchequer, involving foreign currency.
3. Maximum tax rate on each and every type of income in Pakistan should be fixed at 10%. This will not only bring huge revenues to the government, but will also discourage the tax evasion tendencies.
The size of our undocumented economy is almost equal to the yearly budget of Pakistan.
The best way to minimise black money is not the launching of amnesty schemes, because the black money keeps flourishing after taking advantage of such facilities. If we really want to deal with the menace of undocumented economy on a permanent basis, the ideal way is to either eliminate taxes or reduce the rates of taxes to a minimum level i.e., not more than 10%. This low level of tax rate will not only spur an economic boom, but will also automatically encourage people towards paying the taxes; rather than giving bribes to the government officials to save higher payments of taxes.
4. Impart training on war footings, of various modern skills to the country’s huge unskilled manpower, for increasing the industrial and agricultural productivity, competitiveness, value addition & exports.
5. Special support and incentives for developing world class facilities for enhancing income from tourism sector, which should encompass religious, medical, educational, hunting, entertainment and traditional tourism, specially keeping in view how rapidly Dubai has become a world tourist destination, by juxtaposing technology with innovative ideas. In technology and innovation Pakistan will have to be one step ahead of Dubai and Singapore.
6. Set a target for 20% per annum increase in foreign remittances, by offering innovative incentives to expatriate Pakistanis, which should even attract foreigners to park their money in Pakistan.
7. Outsource FBR functions (which will alone increase income by Rs.1000 billion) & IMPOSE FLAT 10% tax on ALL & EVERY TYPE OF INCOME (as already mentioned at 3. above), without any exemption (except for the security forces personnel, whose salaries may be doubled with expected receipt of un-precedented increase in revenues). This will not only reduce income tax burden on salaried class (with max. tax rate of 10%. Here don’t forget consultants are already paying 10% tax), but will also result in so much increase in revenues, to the extent that government will not require any tax fresh imposition, in the budget. Plus, the government will be able to give tax free salaries to all the armed forces, rangers, police and other security agencies personnel, who are shedding their blood, in fighting the menace of terrorism, for our and our children’s safe TOMORROW.
8. Pakistan’s Foreign policy is excellent in theory, perhaps the best in the world. However, this policy should be implemented in its true letter and spirit, with core emphasis on PEACE particularly with its neighbours; and Foreign Policy thrust and motto of all our diplomats should be that any and every action in their embassy, must result in the economic benefit of the country. Foreign missions exceeding their allocated targets of investments and remittances should be lavishly rewarded with monetary benefits.
9. Initiate steps (by imposing economic emergency) to bring each and every economic activity under document. In China even road side vendors issues receipts for sales of minor items.
10. To attract huge world wide foreign exchange deposits from expatriate Pakistanis and foreigners, allow profit rate of 3% PA to be paid on half yearly basis, on Dollar and other specified foreign currency bank accounts in Pakistan. We should not forget that recently Pakistan borrowed at 3% from the IMF and sold Eurobonds at 8.25%.

Best Regards,

Syed Nayyar Uddin Ahmad

#PCB…#Pathetic #Cricket #Board?

 

Questions for the members of the BOG of the PCB to be asked during the meeting of Wednesday, 22 November, 2017.

1. Why no separate PSL-1 and PSL-2 Audit was allowed when:
– Scores of time it was announced in Media by the PSL chairman that PSL Audit was being conducted.
– If PSL Audit was not conducted separately from the PCB on the grounds that PSL was not a different company, then why PCB employees were paid huge extra salaries, amounting to crores of Rupees for doing PSL related assignments?
– When PCB gave huge seed money of Rs.50 crores for PSL Project, why PSL was not separately Audited, as a Project?
– If PSL was not a separate project why Mr. Najam Sethi was specifically appointed as its chairman, when the departments of PCB are headed by directors not chairmans?
2. Was the audit of PSL was not allowed because crores repeat crores of Rupees, were paid to the franchises, out of the written terms of the franchise agreements?
3. Was the audit of the PSL not allowed because about Rs. 40 crores was paid to the franchises on account of Pool Money of PSL-1; under a strange terms of the franchise agreement, which stipulated minimum 80% payment, instead of fixing a maximum ceiling/limit of payment?
Everywhere in the world always for payments upper limit is mentioned, but here PCB allowed minimum limit of payment, leaving scope for limitless payments.
4. Was Audit of the PSL not allowed to keep under wraps unjustifiable PSL-1 launching dinner expense of Rs.70,000/- per head?
5. Why constitution of PCB was blatantly violated in removing Mr. Shahryar Khan on 9 August, 2017 whereas, his legal three years tenure was to expire on 17 August, 2017, because he took over on 18 August, 2013 at 4PM?
Questions on MOU.
The Mystery of USD 1 million MOU..!

It was reported in the media that PCB’s Board of Governors (BoG) has approved USD 1 million or Rupees 10 crore to cover the legal expenses involved in filing and contesting the case against the BCCI, for causing huge financial losses to the PCB, by reneging on its commitments made under a MOU, to play six cricket match series in eight years, with Pakistani cricket team.

In this regard, the honourable members of the BoG are requested to kindly call an extraordinary meeting to decide and verify, on the following important points, because about Rs.10 crores of the PCB are at stake:

1. Confirm, by personally verifying and examining the original of the document, claimed by Mr. Najam Sethi as a MOU, between the BCCI and the PCB, was really and legally a MOU or not.

2. Is the document called as MOU was signed by the then heads of the PCB (Mr. Najam Sethi) and the BCCI (Mr. N. Srinivasan)?

3. To confirm whether the purported MOU was written on a legal paper or on the letter head of the BCCI or on a plain paper?

4. Does the document purported as MOU mentions specifically that it was an MOU document?

5. Whether the purported MOU was signed by just a honorary official of the BCCI when the authorised signatory and president of the BCCI was present at the venue?

6. Is this purported MOU just a letter from the BCCI to the PCB?
6 (a). And if it was a letter then is it on the letterhead of the BCCI?
6 (b). And why it was not signed by the BCCI president N. Srinivasan, who was physically present in that ICC meeting?

7. If this document called MOU was counter signed (at that time) by Mr. Najam Sethi as chairman PCB why he allowed a lower rank unauthorised and honorary BCCI person to sign it?
7 (a). And if it was not also signed by Mr. Najam Sethi then can we call such a document an MOU?

8. This purported MOU was signed during an ICC board members meeting. Why did not Mr. Najam Sethi obtain signatures of any ICC board members on this document as witnesses?

9. Why Mr. Najam Sethi accepted this purported conditional MOU from the BCCI, when he himself voted without conditions/reservations, in favour of the Big3 formula?

10. Why Mr. Najam Sethi accepted this purported MOU without the agreement of the BCCI to include the clause of the [ international court of arbitration] as was aggressively taken up by Mr. Zaka Ashraf?

11. The BOG must ask Mr. Najam Sethi as to why he was not taking legal action against the ICC for not paying to the PCB $15 million per year, which Mr. Najam Sethi told to the media and was widely reported in the press that the ICC has made PCB as Big4 and has more than doubled annual payments to PCB to $15 million (after Mr. Najam Sethi voted for the Big3 formula which enhanced astronomically BCCI’s financial share from the income of the ICC), or did Mr. Najam Sethi made a deliberate wrong statement at that time to hoodwink the Pakistani public, from the main issue of his casting an unconditional vote, in favour of making India, the king of the ICC, which started getting lions share of the ICC’s income?
12. Why this so called MOU document was never presented in original, before the members of the BoG of the PCB?

It is earnestly hoped that the timely intervention of BoG members of the PCB may save a huge amount of USD 1 million of the Pakistan Cricket Board.
The issue of participation of Pakistani players in the ICC [unapproved] T10 League.

1. Has the the ICC accorded its approval to the T10 League? If not, then how and why their presence will be there and will have a check on any misdeeds of the players/officials.

2. Why PCB wants to take a chance of sponsorship losses for its own franchises, by holding ICC non approved event, so close to PSL tournament, which is definitely expected to suffer losses due to sponsorship fatigue, which is bound to happen by the diversion of sponsors budgets/funds to T10 League?

3. Why such a tight Indian strangle hold have been allowed over this ICC unapproved league where 67% shares are held by an Indian named Shaji al Mulk?

4. Will BCCI ever allow its 28 players to participate in a League of a Pakistani major (67%) share holder? If not then why PCB has thrown its approval to the feet of an Indian investor?

5. The non participation of almost any reputed Indian player is a big question mark which needs answer in light of the fact that out of the six teams three are owned by the Indians and one by a SriLankan. Only two out of the six teams are owned by Pakistanis.

6. The mother of all questions is that why the PCB chairman took a 180 degrees U turn and allowed 28 players to participate in the T10 League? after announcing that:

a). No Pakistani player to participate in the T10 League.

b). PCB has no connection or link with T10 League.
Proposed Constitutional Amendment

Why to amend the PCB’s constitution just to please the Regional Cricket Association presidents to allow them to extend their tenure from two terms of three years each (total six years)? This will kill the room for the entry of fresh blood and create monopoly of old stuff.

 

 

 

1. Has the the ICC accorded its approval to the T10 League? If not, then how and why their presence will be there and will have a check on any misdeeds of the players/officials?

2. Why PCB wants to take a chance of sponsorship losses for its own franchises, by holding ICC non approved event, so close to PSL tournament, which is definitely expected to suffer losses due to sponsorship fatigue, which is bound to happen by the diversion of sponsors budgets/funds to T10 League?

3. Why such a tight Indian strangle hold have been allowed over this ICC unapproved league where 67% shares are held by an Indian named Shaji al Mulk?

4. Will BCCI ever allow its 28 players to participate in a League of a Pakistani major (67%) share holder? If not then why PCB has thrown its approval to the feet of an Indian investor?

5. The non participation of almost any reputed Indian player is a big question mark which needs answer in light of the fact that out of the six teams three are owned by the Indians and one by a SriLankan. Only two out of the six teams are owned by Pakistanis.

6. The mother of all questions is that why the PCB chairman took a 180 degrees U turn and allowed 28 players to participate in the T10 League? after announcing that:

a). No Pakistani player to participate in the T10 League.

b). PCB has no connection or link with T10 League.
According to sources, PSL franchise owners said that participation in short-format cricket makes the players prone to misdemeanor, so Pakistani players should not be allowed to be a part of the T10 league.

However, Sethi rejected their demand and clarified that PCB and ICC officials will be present in the event which nearly nullifies the chances of any misdeeds.

https://tribune.com.pk/story/1558227/7-pcb-readies-measures-curb-corruption-psl3/

To:- All the PCB’s members of the Board of Governors.

AoA.

It was reported in the media that PCB’s Board of Governors (BoG) has approved USD 1 million to cover the legal expenses involved in filing and contesting the case against the BCCI, for causing huge financial losses to the PCB, by reneging on its commitments made under a MOU, to play six cricket match series in eight years, with Pakistani cricket team.

In this regard, the honourable members of the BoG are requested to kindly call an extraordinary meeting to decide and verify, on the following important points, because about Rs.10 crores of the PCB are at stake:

1. Confirm, by examining the original of the document, claimed by Mr. Najam Sethi as a MOU between the BCCI and the PCB, was really and legally a MOU or not.

2. Is the document called as MOU was signed by the then heads of the PCB (Mr. Najam Sethi) and the BCCI (Mr. N. Srinivasan)?

3. To confirm whether the purported MOU was written on a legal paper or on the letter head of the BCCI or on a plain paper?

4. Does the document purported as MOU mentions specifically that it was an MOU document?

5. Whether the purported MOU was signed by just a honorary official of the BCCI when the authorised signatory and president of the BCCI was present at the venue?

6. Is this purported MOU just a letter from the BCCI to the PCB?
6 (a). And if it was a letter then is it on the letterhead of the BCCI?
6 (b). And why it was not signed by the BCCI president N. Srinivasan, who was physically present in that ICC meeting?

7. If this document called MOU was counter signed (at that time) by Mr. Najam Sethi as chairman PCB why he allowed a lower rank unauthorised and honorary BCCI person to sign it?
7 (a). And if it was not also signed by Mr. Najam Sethi then can we call such a document an MOU?

8. This purported MOU was signed during an ICC board members meeting. Why did not Mr. Najam Sethi obtain signatures of any ICC board members on this document as witnesses?

9. Why Mr. Najam Sethi accepted this purported conditional MOU from the BCCI, when he himself voted without conditions/reservations, in favour of the Big3 formula?

10. Why Mr. Najam Sethi accepted this purported MOU without the offer/security of any bank guarantee from the BCCI, which was earlier being very strongly demanded by Mr. Zaka Ashraf?

11. The BOG must ask Mr. Najam Sethi as to why he was not taking legal action against the ICC for not paying to the PCB $15 million per year, which Mr. Najam Sethi told to the media and was widely reported in the press that the ICC has made PCB as Big4 and has more than doubled annual payments to PCB to $15 million (after Mr. Najam Sethi voted for the Big3 formula which enhanced astronomically BCCI’s financial share from the income of the ICC), or did Mr. Najam Sethi made a deliberate wrong statement at that time to hoodwink the Pakistani public, from the main issue of his casting an unconditional vote, in favour of making India, the king of the ICC, which started getting lions share of the ICC’s income?
12. Why this so called MOU document was never presented in original, before the members of the BoG of the PCB?

It is earnestly hoped that the timely intervention of BoG members of the PCB may save a huge amount of USD 1 million of the Pakistan Cricket Board.

Best Regards,

Syed Nayyar Uddin Ahmad

PMLN must repay personally the current national total loan burden of USD 250 billion.
Dear Messrs Nawaz Sharif, Shahid Khaqan Abbasi, Muhammad Ishaq Dar, Ahsan Iqbal, all cabinet members and entire PMLN party leadership.

Sir,

Hope none of you will be aware that as of now, the latest figure of the total debt of Pakistan (internal+external) stands at Rs.25 trillion or $250 billion, which is almost equal to the total GDP of Pakistan.

Here, I would like to remind you the following:

1. The main election slogan of PMLn in 2013 general elections was:

Ae Tair-e-Lahooti! Uss Rizq Se Mout Achi
Jis Rizq Se Ati Ho Parwaz Mein Kotahi

2. PMLN’s E13 manifesto specifically made the following two commitments:

a). Beggars bowl will be broken.

b). Pakistan’s wealth stashed in foreign countries will be brought back in the country.

In view of the 100% failure of your government on the above commitments, resulting in Pakistan’s virtual economic subjugation before its creditors, the only honourable way left for your party and its top leadership is to quit the government immediately; as an atonement for deliberately pushing Pakistan towards the darkness of the economic abyss, before the mass awakening, for demanding registration of cases, against the entire cabinet and party leadership, for the recovery of total odious loans, obtained in your tenure of the government, personally from all cabinet and party members.

Best Regards,

Syed Nayyar Uddin Ahmad
PS. Related news item:
Finance Minister Ishaq Dar is often accused of manipulating figures to show reduced fiscal deficit as well as the total debt that according to the central bank rose to Rs22.2 trillion in 2016-17 compared to Rs14.8 trillion of 2013. The latest figure of the total debt stands at Rs25 trillion or USD 250 billion.
Link:- https://tribune.com.pk/story/1544770/2-ticking-economic-bomb/