Archive for June, 2018
A Pakistan for the masses not masters..!
June 25th, 2018 | 
Author: 
Basically amnesty schemes are for the rich of the rich by the rich.
These schemes are offered to legalise mega economic crimes of the ultra-rich, in the poor countries falling in the category of Banana Republic: and are never offered, in the developed nations, where the rule of law is supreme.
In fact, in the poor countries the first thing the big wigs do is to get the amnesty scheme immediately legalised from the parliament and the judiciary.
In this regard, writing off of mega bank loans of the rich and mighty defaulters is also an amnesty for the ultra-rich persons of the society.
Never ever, huge educational fees, fat medical expenses and high utility bills (which includes payment by the poor of the share of theft charges of the utility facilities by the rich and mighty) have been waived off for the poor, in Pakistan, by any government.
In typical Banana Republics the huge and sprawling residences and production units of the high and mighty, invariably indulge in thefts of utility facilities and taxes with issuance of SRO’s, the burden of which, is passed over into the bills of the poorest of the poor, even living in the ghettos: and to cover up their smart moves, a propaganda is unleashed that very few persons pay taxes in the country.
Further, the hitmen of the Banana Republic excellently use their brains to serve their masters and befool the masses, by ingenious ways of deception.
In this regard, the previous government of PMLn found two genius masters/ministers who reduced the amount of Pakistan’s government debt and poverty, respectively, with just a stroke of pen, by changing the definition of total government debt and arbitrarily amending the status of poor living below poverty line, by a Royal Decree that those earning less than one USD per day will only be considered poor in Pakistan of PMLN’s government, instead of the internationally accepted yardstick of two USD per day.
If we calculate the losses suffered by the country due to the issuance of SRO’s by the previous PMLN’s government, the nation will be surprised to know that it may open a Pandora’s box of biggest ever financial scam of the country.
Moreover, like devaluation of currency, the amnesty schemes, theft of utilities, issuance of SRO’s and loan waivers increases the number of poor persons living below the poverty base line: and similarly increases the number of persons legally living above the ultra rich category, who only pay 10% of the tax revenue compared with 17% share of the poorest 10% in Pakistan, just because indirect taxation is above 80% and direct taxation less than 20% in Pakistan.
The gist of the above analysis clearly explains that Pakistan must immediately get itself unleashed from the policies of the hitmen and develop a homegrown politico-socio-economic system specifically designed to serve the masses not the masters.
Best Regards,
Syed Nayyar Uddin Ahmad
Pakistani Magna Carta – How to come out of Straitjacket?
The degree of the sovereignty of a country, is directly proportional to the state of the economy of that nation.
However, even knowledgable people are not aware that the total debt (Internal + External) according to the central bank rose to Rs22.2 trillion or $222 billion in 2016-17 compared to Rs14.8 trillion or $148 billion of 2013.
The latest figure of the TOTAL debt stands at Rs25 trillion or $250 billion repeat, Dollar 250 billion.
Link..https://tribune.com.pk/story/1544770/2-ticking-economic-bomb/%20%5D/
Pakistanis are justified in demanding from the government to inform where this amount of $250 billion internal and external loans were spent, when, even the average entire national budget of the last ten years, was not more than worth $40 billion per year?
Just to have an idea of how much value can be derived from 250 billion USD given below is the cost comparisons of few projects in Pakistan and India:
Estimated/expected final cost of Orange Line Lahore Metro train (running distance just 27.1 KM’s) in 2018….2 billion USD (rough estimate).
Cost of Indian mission to Moon in 2008….Only 80 million USD
Cost of Indian mission to Mars in 2013….Only 73 million USD which had to travel about 8 billion KM’s.
We Pakistanis must know, that without any doubt, the easiest and surest way of moving ahead, is to stand on our own feet.
Foreign aid/loans, can keep us afloat, but won’t allow us to swim. Actually, in constant homegrown methods of growth and development, lies our salvation.
Now, the time has come to separate the growth and development in the sectors of education, health, eradication of poverty, environment protection, human development, conservation of water resources and security of Pakistan, from the politics, forever. Politics and these issues of life and death can not go together.
In this regard, we can not put cart before the horse, which means that economic emancipation of the teeming millions and Pakistan’s financial stability, should be the top most priority, over all other subjects including the democracy, which can wait after so much waste of time and resources.
Even democracy can never deliver without its foundations truly embedded, in rock solid and inevitable local bodies system.
It is just a false propaganda of the beneficiaries of the democracy (oligarchs) that if allowed continuity, democracy can work and deliver from the assemblies and senate, without genuinely and financially autonomous grass roots level, fully empowered local bodies system; and not the sham local bodies system, currently prevalent in every province of Pakistan, very reluctantly allowed by the politicians, albeit, on the repeated orders of the Supreme Court.
If Pakistan has to be governed and developed with the current system of few provinces of huge areas having large populations, then it immediately needs a revamped and fully empowered local bodies or COUNTY system; else, we will have to convert every division, into a province.
In the meantime, a referendum may also be held to decide should we switch towards the presidential system of government.
Further, the biggest reason in the collapse of our economy has been the higher than the highest level of corruption which has created an impression and culture, which ensures that the crime of corruption pays and is an acceptable norm of our society; plus the judicial system which has miserably failed to punish the big wigs who are caught on corruption or criminal charges of even day light murders, while providing such top level culprits so much facilities (even permission to travel abroad on humanitarian grounds) during trials; and facilities of house arrests and stay at five star hospitals (during the jail terms) that it motivates others, to always indulge in mega corruption and other criminal activities with impunity.
The level of mega corruption, in fact, puts Pakistan at the top of the most corrupt nation’s league in world, whose government level financial irregularities are almost double its size of the budget, as depicted from the news quoted below:
Quote.
“The Auditor General of Pakistan (AGP), Javaid Jahangir, has claimed that during the audit year 2017-18 auditors pointed out irregularities amounting to Rs8.276 trillion in the accounts of the federal government.
It may be mentioned that this figure is almost double the amount allocated for the fiscal year’s federal budget that is Rs4.75tr.”Unquote.
Link:- https://www.dawn.com/news/1402111
We must re-vamp our judicial system to kill the notion that it always pays to indulge in big corruption in Pakistan.
Until and unless, the culture of our country which loudly announces that crime of corruption pays in Pakistan, is not changed with radical steps of zero tolerance and no leniency, in corruption court trials and jail sentences; and severe punishments like DEATH SENTENCES are awarded in the corruption crimes, we will remain a Banana Republic of the worst level. Under the circumstances, if certain basic changes in our political and judicial systems are not incorporated in our constitution, no dictator or even best of the best civilian leadership or political party, with all the good intentions, can deliver and succeed in pulling out this country, from the abyss.
It has been a good political tactics in the past by all and sundry, particularly by those at the helm of the affairs, to divert the attention of the masses, from the real issues, by mud slinging on politicians, civil and military servants, judges etc.
However, now we must put a full stop to this non-sense, which has wasted the entire life of Pakistan.
Nothing can match the benefits of the collective wisdom. Since, its a matter of impending economic collapse of the country, impetus for which is being provided by the four devaluations of the currency in the last five months, which obviously is a sure recipe of disaster, for which almost all of us are responsible in one way or the other: almost no one is exempt from the charge of hurting the cause of the country. It looks that a certain gang of oligarchs within ourselves is forcing Pakistan (by design) to irreversible bankruptcy disaster, as if, to punish Pakistan, for its some unpardonable crime.
As such, we should decide to look forward and forgive and forget each other’s sins of the past, and take each and every segment and political/social force of the society in confidence, for a very transparent scheme of our future development.
In this connection, Mr. Steve Maraboli has very appropriately said that “Make a pact with yourself today to not be defined by your past. Sometimes the greatest thing to come out of all your hard work isn’t what you get for it, but what you become for it. Shake things up today! Be You… Be Free… Share.”
Let us unitedly build a new economically strong and politically stable Pakistan, with our collective and prudent decisions; knowing very well that no political party, group or institution is so strong, to run this country, single handedly, for a sustainable period, without the help and cooperation of each other.
Our immediate task must be to stem the economic rot immediately and on EMERGENCY basis.
Government of Pakistan (GoP) must be duly warned that rapid devaluation of the PKR is no panacea for the economic stability and amnesty schemes are factually and cruelly legalising crimes of the 1% rich at the expense of the 99% poor Pakistanis.
Moreover, 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.”
In this regard, it is suggested that, we should AIM to bring Pakistan, to the level of Singapore of 2018, by the year 2040.
All politics and other considerations should be made subservient to this TARGET for 2040, even if we have to abolish weekly holidays for the next 20 years & reduce our daily sleeping time to 6 hours.
All stake holders, particularly, from the deprived sections of the society in Pakistan, must immediately come forward, for deciding about the direction of the future of the nation.
Biggest factor in any victory is self-confidence. Anti-thesis of terrorism is education, coupled with economic emancipation. But it must be remembered that no country or society has ever risen from ashes, without individual and collective sacrifices and discipline, for example Japan, China, Korea, Turkey and Malaysia. Basically these nations did not waste their time on feeding precious resources to top level democracy which automatically breeds oligarchy. [Oligarchy is a form of power structure in which power rests with a small number of people. These people may be distinguished by nobility, wealth, family ties, education or corporate, religious or military control. Such states are often controlled by families who typically pass their influence from one generation to the next, but inheritance is not a necessary condition for the application of this term. Throughout history, oligarchies have often been tyrannical, relying on public obedience or oppression to exist. Aristotle pioneered the use of the term as a synonym for rule by the rich, for which another term commonly used today is plutocracy.
Link:- https://en.m.wikipedia.org/wiki/Oligarchy ]. The achievement of these countries named above were not the outcome of democracy at the top level, but participation of the entire population in the nation building at the grass roots level. These nations have risen (from the conditions worse than Pakistan) by the honesty of purpose of their leadership, national discipline, engagement of all segments of society from the grass roots level and rule of law. We very recently watched the example of rule of law from South Korea, where their former lady president was brought to court handcuffed, for a trial on corruption charges.
As such, our nation must embark upon the following agenda, to resurrect our economy, without any further loss of time.
1. We should not expect any different results at the end of the five term after the general elections of 2018 from what we got after the GE-2013. Why; because for any different result there has to be some change. In fact, famous scientist Albert Einstein defined INSANITY as doing the same thing over and over again, without any charge and expecting different results.
Now since this country of 220 million population can not afford any further waste of time with so called democratic and dictatorship experiments, it will be prudent to look forward and immediately form a national government, which must be specifically government devoid of Hitmen of the lending agencies and controversial and dishonest people.
This homegrown government should consist of honest members from every segment of society for example labourers, peasants, teachers /professors, students, minorities, professionals from all possible fields and experts from the fields of media, law, military, diplomacy and civil administration.
2. This national government should request to all foreign donors for a 5 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 Pakistan still NOT charging a penny for overflights in the ongoing war of terror being fought in Afghanistan.
3. 20% per annum reduction in all non-developmental government expenditures, plus total freeze in all perks paid from the national exchequer, involving foreign currency.
4. 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 by giving a fillip to the badly suppressed economy, but will also discourage (to a very large extent) the tax evasion tendencies.
5. Increase in productivity & exports with liberal tax and tariff relief to industry, commerce, trade and agriculture. In fact, our strong point is agriculture and our focus should be to revolutionise it with most modern technologies of smart agriculture, which easily has the potential to create five million jobs in just five years.
6. Set a target for 20% per annum increase in foreign remittances, by offering innovative incentives to expatriate Pakistanis.
7. Outsource the FBR (which will alone increase income by Rs.500 to Rs.1,000 billion) and IMPOSE FLAT 10% tax on ALL & EVERY TYPE OF INCOME (as already mentioned at 3. above), without any exemption or SRO’s (except for the Police and security forces personnel whose salaries may be doubled with expected receipt of un-precedented increase in revenues, due to the above suggestions). This will not only reduce income tax burden on salaried class (with maximum tax rate of 10%), but will also result in so much increase in revenues, to the extent that government will not require any tax 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. The collective financial loss of State Enterprises is above Rs.500 billions per annum. All such entities should be immediately handed over to highly professional, dead honest, most patriotic successful Pakistani and or overseas businessmen, to head and bring in their own members of board of directors, to immediately turn around and successfully run these organisations, like world class companies, as a national cause service to the motherland, on war footings.
Few of the names which comes to mind of our world class successful Pakistani talented entrepreneurs, fully capable to serve the country in times of its dire need, are as below:
– Mr. Shahid Khan at USA, with net worth of $3.8 billion.
He owns Jacksonville Jaguars which worth $770 Million, plus a team in English Premier League ‘Fulham F.C’ which worth $300 Million and also He is the owner of Flex – N – Gate. He is the Richest person of Pakistan. He is presently living in USA. His main source of earnings are from the business of Auto parts manufacturing. He is counted as the 490th richest person in the world.
– Sir Anwar Pervaiz O.B.E
He is the founder and chairman of Bestway Group which is known as the country’s second largest cement producer and 16th largest cash and carry operator in UK, and also he is the Deputy Chairman of United Bank Limited Pakistan. He is one of the renowned investor. He is known as the great businessman in the country. His net worth is $1.5 Billion.
– Mr. Salim Ghauri is a renowned IT Entrepreneur recognised globally today. He is the founder & CEO of NetSol Technologies (1996).
– Mr. Razzaq Dawood is a highly reputed and successful industrialist and philanthropist. One of the founders of the famous LUMS university. He is founder of Descon.
– Mr. Sikandar Mustafa Khan is Chairman Millat group of companies and heads many organisations and forums. He is credited in the country for successfully heading buyout of a government run organisation which is a rare example in the industrial sector of the country in which employees of the same organisation purchased their company and created history of a terrific success story under the professional and administrative leadership of Mr. Sikandar M. Khan.
9. 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 FP’s thrust and theme should be that any and every action must result in the economic benefit of the country.
10. Initiate steps (by imposing economic emergency) to bring each and every economic activity under document.
There is absolutely no doubt that by the dint of sheer hard work, sincerity & honesty, which is imbibed in the bones of the Pakistani work force, we can surely bring Pakistan, into the comity of 20 developed nations of the world, in the next 15-20 years.
The current leaders of Pakistan holding the destiny of this great nation, with highest manpower potential and material resources in the world, must remember the following two adages.
~ NOT FAILURE BUT SETTING LOW AIM IS A CRIME.
~ IN ORDER TO ACHIEVE THE IMPOSSIBLE IT IS PRECISELY THE UNTHINKABLE WHICH MUST BE THOUGHT.
Devaluation is a sure recipe of economic meltdown..!
Devaluation is a sure recipe of economic meltdown..!
Government of Pakistan (GoP) must be duly warned that rapid devaluation of the PKR is no panacea for the economic stability.
Rather, it is a sure recipe for disaster, which, as a direct side affect, is throwing back more and more Pakistani population, to below the poverty line.
Those economic managers of the country, who think that our economic slide into the abyss, can be controlled with more and more devaluation (in fact four times in the last five months, re-defining or re-phrasing the definition of the total public debt, changing the definition of poverty to people who live on 2$ per day income to 1$ per day income and by fudging the economic numbers: are behaving like a pigeon; which closes its eyes, on seeing a cat.
I have been writing in the past that it’s a misnomer and disinformation that Pakistanis don’t pay taxes.
The fact is that all the 220 million Pakistanis pay taxes.
The devil lies in the fact that above 80% indirect taxes and less than 20% direct taxation, is the major cause of our backwardness; and on two dollar per day income basis, is the main reason, of over 130 million population, living below the poverty line.
Moreover, 10% poorest pay 17% of the tax revenue to the government; and richest 10% pay only 10% of the revenue to the government.
Until and unless, these abnormalities of our economic system are corrected, it will be well neigh impossible, to take out major portion of our population (which numbers may well have now increased substantially over 130 million after the recent massive devaluations of PKR) from the below poverty line income segment of poor people, earning less than two dollars per day.
In this regard, the fastest way to reduce the poverty, is to ensure direct foreign investment into Pakistan, for which our foreign missions must be given specific targets.
Other means includes immediately replacing the entire existing economic team of the SBP and the MoF. And by bringing back the billions of dollars illegal foreign funds and properties of Pakistanis, a la the Saudi Arabian Model and recovery of illegally written off loans and bad debts, by imposing economic emergency laws, on fast track basis.
Last but not the least, immediate launching of a scheme for payment of 3% PA profit (payable bi-annually) on Foreign Currency bank deposits in Pakistan (backed by the sovereign guarantee of the GoP) with a suitable, but attractive fixed period. This is a fool proof scheme, sans any risk, which can boost up our foreign reserves, in a very short time, on extremely cheap rates, as compared to the foreign loans and international bonds, which were sold by the previous government of PMLN, at even 8.25% interest rates (Pakistan will be repaying USD 910 million for USD 500 million Euro Bonds) for which the ten PM Mian Nawaz Sharif was requested to hold an inquiry, to fix the responsibility of the culprit(s), who allowed the sale of Euro Bonds, on such a criminally high interest rates.
Syed Nayyar Uddin Ahmad
Sydney
Alarm bells ringing for the GoP – Red lines of the economic crisis have been crossed
Government of Pakistan (GoP) must be severely warned that rapid devaluation of the PKR is no panacea for the economic stability. Rather, it is a sure recipe for disaster, which, as a direct side affect, is throwing back more and more Pakistani population, to below the poverty line.
Those economic managers of the country, who think that our economic slide into the abyss, can be controlled with devaluation, re-defining the total public debt, changing the definition of poverty to people who live on 2$ per day income to 1$ per day income and by fudging the economic numbers, are behaving like a pigeon; which closes its eyes, on seeing a cat.
I have been writing in the past that it’s a misnomer and disinformation that Pakistanis don’t pay taxes.
The fact is that all the 220 million Pakistanis pay taxes.
The devil lies in the fact that above 80% indirect taxes and less than 20% direct taxation, is the major cause of our backwardness; and on two dollar per day income basis, is the main reason, of over 130 million population, living below the poverty line.
Moreover, 10% poorest pay 17% of the tax revenue to the government; and richest 10% pay only 10% of the revenue to the government.
Until and unless, these abnormalities of our economic system are corrected, it will be well neigh impossible, to take out major portion of our population (which numbers may well have now increased substantially over 130 million after the recent massive devaluation of PKR) from the below poverty line income segment of population, earning less than two dollars per day.
In this regard, the fastest way to reduce poverty, is to ensure direct foreign investment into Pakistan, for which our foreign missions must be given specific targets.
Other means includes immediate sacking of the entire existing economic team of the SBP and the MoF. And by bringing back the billions of dollars illegal foreign funds and properties of Pakistanis, a la the Saudi Arabian Model and recovery of illegally written off loans and bad debts, by imposing economic emergency laws, on fast track basis.
Last but not the least, immediate launching of a scheme for payment of 3% PA profit (payable bi-annually) on Foreign Currency bank deposits in Pakistan (backed by the sovereign guarantee of the GoP) with a suitable, but attractive fixed period. This is a fool proof scheme, sans any risk, which can boost up our foreign reserves, in very short time, on extremely cheap rates as compared to foreign loans and international bonds, which were sold by the previous government of PMLN, at even 8.25% rates, for which I had then requested to Mian Nawaz Sharif, to hold an inquiry, to fix the responsibility of the culprit(s), who allowed the sale of Euro Bonds, on such a criminally high interest rates.
Syed Nayyar Uddin Ahmad
Sydney
Wake up Pakistanis before you are robbed..!
An Urgent Appeal to Conscientious Pakistanis all over the Globe.
SAY NO TO CORRUPTION
To:
All the Pakistani politicians and rest of the Pakistanis in Pakistan or abroad, who staunchly stand for the cleansing of our government and society from the cancer of corruption:
Ladies and Gentlemen,
AoA.
The federal government and the ECP are separately going into appeal with the SCP against the decision of the LHC for the mandatory submission of all the details in the nomination papers of the candidates of the Elections 2018 about their assets, nationality, Iqama, businesses and other sources of income before being eligible for the elections.
Dear Pakistanis,
If this vital information is not provided before the elections in the nomination papers (which was mandatory in all previous elections and now being withdrawn for E18 onwards to circumvent the Articles 62 & 63 of the Constitution of Pakistan), it will encourage huge/mega corrupt practices in the Pakistani government and society, without any fear or hindrance and tear apart the remains of social fabric of the honest people in the society.
This will in-fact, open the flood gates of corruption in Pakistan.
It is apparently an ingenious move to sabotage the Articles 62 & 63 of the constitution; and will effectively render impossible, to prove any elected public representative, liable for actions under the Articles 62 & 63 of the constitution, which almost means the aforementioned Articles of the constitution have been check mated, in an indirect way.
As such, kindly support this cause in favour of the LHC decision in the SCP (don’t forget that the ECP lawyer originally supported this matter in the LHC hearing and which helped the Honourable Judge of the LHC to give her verdict in favour of retaining the provision of all information which was earlier required for the submission of nomination papers) with all the force and strength at your disposal, particularly, on the electronic and social media, to save our future generations, for which our martyrs have been shedding their blood to achieve a Pakistan which will be safe, peaceful, prosperous, just and corruption free.
Best Regards,
Syed Nayyar Uddin Ahmad
What’s app
+92 321 9402157
Sydney
————————————
I have launched a social media campaign on my Face Book and associated groups accounts, regarding total information requirement on candidates that has been curbed by last National Assembly.
If you like what I have please spread the word
We want to know “everything”….about the candidates we vote for in 2018
We will not go into elections, unless we have complete knowledge of every candidate.
PS: please copy and repost if you agree.
http://tns.thenews.com.pk/embarrassing-disclosures/#.WxMp9v9RWEc
Embarrassing disclosures
In the name of electoral reforms, all the political parties collusively and cleverly ensured non-disclosure of essential details in nomination forms for the forthcoming elections. Whenever we write about the existence of an unholy, anti-people alliance amongst elites — militro-judicial-civil complex, politicians and businessmen — many think it is mere rhetoric or vent by the under-privileged against the rich and mighty. However, time and again, they have proved otherwise. The latest manifestation is passing of the Election Act, 2017.
In the name of electoral reforms, all the parties collusively and cleverly ensured non-disclosure of essential details in the nomination forms to be used in the forthcoming elections. They have failed to realise that this was a requirement of the supreme law of the land (fundamental right of the voters to judge their representative on the touchstone of Articles 62 and 63). Concealing vital information relating to payment of taxes and loan write-offs etc is in conflict with Articles 62 and 63 of the Constitution, but till today neither any writ has been filed nor has the Supreme Court taken any suo moto action.
In the wake of 2008 and 2013 elections, the people of Pakistan thought that the rulers would respect their mandate by moving towards accountability of all and establishing an egalitarian society — the essence of people’s rule. What happened is just the opposite. Instead of showing any serious effort to reform the system, the elites are ensuring that financial matters are not scrutinised properly. Rather, these are totally eclipsed from public glare.
This concern is recently expressed by Tariq Malik, ex-Chairman of National Database & Registration Authority [NADRA] in an op-ed as under:
“Sadly, the Election Act of 2017 has clipped the powers of the Election Commission of Pakistan (ECP) to scrutinise candidates with regard to the declarations about their income, asset and loan status. Under the previous nomination forms all election candidates had to declare under oath that: “I hereby solemnly declare to the best of my knowledge and belief that (i) no loan for an amount of Rs2 million or more obtained from any bank, financial institution, cooperative society or corporate body in my own name or in the name of my spouse or any of my dependants or any business concern mainly owned by me or the aforesaid stands unpaid for more than one year from the due date or has been written off.”
Similar declarations were required with regard to the payment of utility bills and any criminal offences. Considerable administrative input has already gone into efficiently compiling this information and strengthening the capacity of the ECP to scrutinise candidates in the light of these public disclosures. There is clearly room for improvement, but it is ill-advised to do away with such public declarations altogether…….. The revised format for nomination papers would no longer allow ordinary citizens to access information on loan defaults and taxes paid by candidates. With regard to the former, there is a clear attempt by our political class to shelve the issue as a closed and shut case.
A legacy of the 1990s era, loan defaults were, in their essence, a political issue. Respective governments in this period used state-owned banks to grant loans to politicians masquerading as businessmen. In many cases, political clout was used to write off the loans of connected borrowers. In their seminal and landmark research on the subject, Asim Khwaja and Atif Mian, two social scientists, have already shown that politically connected firms during the 1990s and early 2000s were 45 per cent more likely to obtain a loan from government-owned banks and were 50 per cent more likely to default on these loans. Many of these beneficiaries should be clearly ineligible for public representation.
Many beneficiaries of loan write-offs are still part of parliaments though Supreme Court asked the government to punish them and their accomplices. Supreme Court in Suo Moto Case No. 26 of 2007 and Human Rights Case Nos. 2698/06, 133, 778-P, 13933 and 14072-P of 2009, while questioning the authority and jurisdiction of State Bank of Pakistan (SBP) to waive off loans, constituted on June 3, 2011, a three-member commission, headed by Justice Syed Jamshed Ali, former judge of apex court, to prepare a report in respect of recovery of written off loans from 1971 onwards.
The commission submitted its report in Supreme Court and a hearing was conducted on February 20, 2013. The Court in its order of the same date ordered: “the report of the Commission to be made public, which is available for inspection according to the Rules to all and sundry. However, the procedure for allowing inspection of the report shall be regularized by the office. The locked iron boxes are ordered to be kept in safe custody along with their keys.” A notice was also issued to all the learned counsels appearing in the case and all concerned for March 15, 2013.
The commission revealed that loans worth Rs2.38 billon were waived off between 1971 and 1991 whereas loans worth Rs84.62 billion were waived off between 1992 and 2009. The commission, while holding bankers responsible for extending short-term or long-term loan facility to borrowers on inadequate securities, had recommended action against willful defaulters who took benefit of SBP’s Circular BPD No. 29, which expired on April 14, 2003 although the banks continued writing off loans till 2011.
The commission also has given the names of companies and directors who were beneficiaries of loan waivers but no action has been taken till today. The commission could only probe 740 cases and proposed that 222 more cases should also be probed as Rs35 billion were waived off in those cases. The report found serious irregularities in loans given to politicians, civil and military bureaucracy, but could not get proofs about waiver on political basis, as bank officials allegedly “concealed the facts because they were afraid of the influential persons.”
The bankers, the report says, “have given only business reasons for writing off the loans.” The report consisted of three volumes — Volume I (Report of the Commission), Volume-II (Parts I to VII, synopsis of individual cases), Volume-III (Annexure of Volume I) — and the supplementary paper book (containing different correspondence).
The commission suggested four steps: (i) principal amount should be recovered less payment already made, if any (ii) tribunals comprising the on duty or retired judges of High Courts should be set up for the recovery of amounts (iii) legislation for the recovery of written off loans should be made and (iv) action should also be taken against the credit committees. As expected, the powerful vested interests resisted all the steps proposed by the commission. Till today, not a single rupee stands recovered from any big fish. Now they want to conceal these facts from voters as well in the nomination papers!
The inquiry into loans write offs by the commission revealed the modus operandi used for looting public money by the powerful segments of society. It is time that the plunderers of public funds are punished and money squandered by them is recovered as suggested by the commission without any further delay — it is essential for establishing true democratic polity and bringing about transparency in both the public and private institutions. If 2018 elections are held without such scrutiny, it will be nothing but another farce for the people of Pakistan.
It is a constitutional command that honest and truthful declaration of all facts, assets and liabilities by a contesting or returned candidate in his/her nomination papers, constitutes a benchmark for reviewing his/her integrity and probity in the discharge of his/her duties and functions as an aspiring or elected legislator. Statement of assets and liabilities along with other financial disclosures is a constitutional requirement and cannot be waived or relaxed under the Election Act, 2017 — a subordinate legislation. These disclosures are not only essential but represent fundamental right of voters for determining the suitability of any candidate.
