Loud Thinking

Mian Muhammad Nawaz Sharif Sb.

Salaam.

Today (31 May, 2013) it has been reported that ministry of finance expects to earn $1 billion from the auction of 3G telecom license, during the first three months of your government. Link:- http://jang.com.pk/jang/may2013-daily/31-05-2013/u148138.htm

In this regard, some facts are placed before you to judge for yourself that why this telecom auction can and must generate much more than $1 billion.

PPP government finance minister Abdul Hafeez Sheikh, had budgeted a figure of ONLY $800 million income in the FY 2011-12 (this is on record and can be confirmed from the documents), for which auction was planned in March, 2012, for NOT ONLY 3G but 4G LTE and 5G LTE-A.

Just imagine 4G LTE and 5G LTE-A were to be given free with the auction of 3G. Whereas, in April, 2010 India ONLY auctioned 3G, for a whooping amount of $15 billion. Now after over 3 years, this figure almost may be equal to $20 billion.

Here, the question arises was Indian economy or telecom density size (at that time in 2011-12 when Pakistan went for the aborted auction) was more than 18.75 times bigger than Pakistan’s economy and telecom density? Sir, all this gap was to be made up with corruption and corruption alone.

Plus the mother of all corruption was the plan (clearly written in the tender that 4G LTE and 5G LTE-A license was to be given free along with 3G) to plunder the national wealth with future telecom technology licenses, to be gifted free of cost.

Here, again the question arises that when in the year 2004 Pakistan auctioned the 2G telecom license we didn’t give 3G license for free. And now when in 2012, we went for the auction of 3G, why advance technologies of the future were being given for FREE. (currently we are on 2G, whereas Kabul, India has 3G and Oman 4G LTE).

In view of the foregoing, I am more than 100% sure that now when we are entering middle of the year 2013, if the 3G (along with 4G LTE & 5G LTE-A) auction is done in an intelligent, smart and honest manner, Pakistan can very easily fetch anything between 2-5 billion USD.

Last but not the least, I would humbly like to inform that by the grace of Allah, first I single handedly convinced the government in 2011 to go for the auction of the 3G license. And, later on again in the year 2012, I had to wage a full fledged war to stop the government after the issuance of tender, to abort their nefarious designs and plans to indulge in mother of all corruptions.

In this regard, I had the FULLEST support from Senator Pervaiz Rashid and Ms Anusha Rehman & Prof. Ahsan Iqbal Sahab. Geo, Dunya & Ary TV media also fully supported me in this Jihad against the mother of all scandals. Moreover, Mr. Zahid Malik of Pakistan observer and Transparency International Pakistan, also played a very active part in stopping the government going the wrong way in this case. My salute to all these patriotic Pakistanis.

Best regards,

Syed Nayyar Uddin Ahmad

PHIR NA KAHNA HAMEIN KHABAR NA HUI

An Open Letter Dated 04 October, 2011 to the then PM Pakistan

H’able Makhdoom Syed Yousuf Raza Gillani Sb.

A.O.A.

You may be aware that the electricity load shedding has brought the country to the brink of abyss. The writing on the wall is there for every body to read and take immediate, repeat immediate, drastic and emergent steps, before the situation explodes to a point of no return. In fact, the country has now reached a defining moment.

In this regard, now as all powerful Prime Minister, it is high time that you may take personal charge of the looming crisis.

For your consideration, I take this opportunity to submit the following proposals to stem the rot of the current electricity crisis of Pakistan.

1. Impose total country-wide ban on use of air-conditioners in all official, public and private offices and residences ( which includes the offices and residences of the President, P.M, Governors, C.M’s and state guest houses with no exceptions, even for the foreign guests). We should not forget that in 60’s Indian government imposed a nation-wide ban on serving of dinner, to meet the severe food shortage.

2. Order, closure (strictly) of all shops and offices after 6 P.M. Remember, every Watt saved is Watt generated.

3. Order prohibition of every type of decorative lighting in the country.

4. All TV channel transmissions and cable services must be ordered to be closed at 9 P.M. through out the country.

5. The services of Police, Rangers, F.C and Armed Forces may be acquired to detect and permanently disconnect, the electricity connection of all those premises, who are getting electricity through illegal means. These premises, under no circumstances, be allowed electricity connection in future. Remember, there is more than 30% (latest NEPRA losses figures are at 40%) electricity theft in the country and civilian agencies can never overcome this problem.

6. Order, immediate one hour advancement of clocks and five days working in a week.

7. Order, immediate maximum facilitation to all and sundry, installing and using Solar energy at their premises, like as in India, bank loans are given for Solar energy at 4% interest rates. Our customs department charge tax on one pretex or other, on Solar energy equipments, although the government has declared it as tax free. This matter should be resolved once for ever.

Wishing you all the success, in your endeavours to serve the country, in a manner to be remembered in the annuls of the history.

Na Samgho Gay To Mit Jao Gay Aay PPP Walo,

Tumharey Datan Tak Na Ho Gy Dastano mein.

Now, after wasting almost a year’s time, the government of Pakistan is again active in proceeding with the telecom auction of 3G spectrum. However, this time GOP or PTA has appointed three consultants for advising on the whole process of auction to ensure transparency (as being told to the general public).

In this regard, we invite the attention of all stake holders of this telecom auction, to the pit falls of the previous IM (information memorandum); and the terms of tender documents duly elaborated in my February 2012 open letter to the then PM Pakistan, Syed Yousaf Raza Gilani, reproduced as below for the benefit of the all concerned, to ensure that Pakistan is not cheated in the ensuing 3G telecom auction, planned in the coming weeks and months. Plus the mew IM must mention that any telecom company like Etisalat, will not be allowed to participate in the bidding process of the auction, if it is a defaulter of the GOP, notwithstanding the fact that it has gone to the court or got an stay order etc. Any such party must deposit the outstanding amount in lump sum. However, if at any later stage, the defaulting company gets courts order in its favour, the GOP must be bound to immediately return the disputed amount.

$10 Billion Impending 3G Auction Scam – My Open Letter to PM in February 2012, Still Relevant Today.

Honourable Syed Yusuf Raza Gilani,

AoA.

It will not be out of place to begin with a news item published in the news papers today i.e., Wednesday 1 Feb. 2012, stating that the Indian Supreme Court warned on Tuesday that corruption posed a “grave danger” to the world’s largest democracy quoted as below. Quote ” Today corruption in our country not only poses a grave danger for the concept of constitutional governance, it also threatens the very foundation of Indian democracy and the rule of law.” Unquote. The above was said by Justice A.K. Ganguly, while delivering a ruling in connection with the alleged underpriced selling of telecom licenses, which the national auditors says may have cost the country up to $39 billion.

An excerpt from a Times of India news published on Wednesday, 2nd Feb. 2012 is also given below for the information of Mr. Abdul Hafeez Sheikh, Finance Minister of Pakistan, who says he expects only $800 million from the COMBINED telecom auction of 3G, (4G LTE) and (5G LTE-A.) (India got IRS69 billion for ONLY 3G, exactly two years ago, as per TOI news quoted below.

“The 122 licences were given by Raja for over IRs 9,000 crore, while 3G auctions for a smaller number of licences had fetched the government a sum of IRs 69,000 crores.”

In the same context of selling of telecom licenses in Pakistan, a mega scandal is also brewing, for which your kind attention is invited to immediately intervene, so that the nefarious designs of unscrupulous elements to defame the PPP and its government, is nipped in the bud.

DETAILS OF THE CASE

With the recent publication of the advertisement of PTA in the news papers for “Invitation for Expression of Interest” (EOI) with application for AUCTION of Mobile License/Spectrum (3G/4G/LTE [long term evolution] etc), the following questions needs answers to safeguard the national interest by all and sundry.

1. Why the LOW base price of US $ 155 Million for one Mobile Cellular License/Spectrum (800 MHz), when this license was sold for 291 US $ Million eight years ago in the year 2004? OK, it is being auctioned for 8 years instead of 15 years, but is there no premium for above 68 % mobile teledensity which was not there eight years ago?

2. Why the license will be technology neutral? Which means no licenses will be required for any future launches of 4G, 5G so on so forth. this also means selling all future long term evolution inductions free of cost. This happens no where in the world. Even in Pakistan when 2G was sold in 2004, it was not permitted to launch 3G without fresh license. So why now 4G onwards is being sold free of cost?

3.i. Why the LOW base price of US $ 210 Million for the auction of Three Mobile Cellular Licenses/Spectrum (1900/211MHz/3G/4G/LTE etc.)?

3.ii. Here it should be noted that 2G license was auctioned by PTA in 2004 at US $ 291 Million, when there was much less teledensity than 68% as of now and in the next 15 years (the period for which new licenses are being auctioned), it will obviously increase to higher levels.

3.iii. And above all this auction is technology neutral, which means license for 3G is also valid for FREE for 4G, 5G onwards. Under this situation this base price of US $ 210 Million is ridiculously low.

4. As per IM (Information Memorandum) on PTA website all three telecom companies winning the technology neutral AUCTION of Mobile License/Spectrum (3G/4G/LTE [long term evolution] etc) will be required to pay half of the bid value within 30 days in USD or PKR. Also Rest of the amount can be paid in USD or PKR in five equal yearly installments. This virtually means that Telecom companies will NOT bring any fresh foreign investment and also the remaining 50% amount will be deposited on PAY AS YOU EARN basis. This tantamount to robbing the nation of valuable FDI in the garb of auction terms, particularly when bidding is only allowed in minimum 2 million USD and maximum 10 million USD. So when bidding is in USD, then why NOT payment should also be in USD?

5. Why PTA has shown less figures of total Teledensity of Pakistan (68.39) in 2010-11 at para 3.7 of (IM [information memorandum] on its website) whereas, according to its own figures in the graph shown in the para 3.7, the total comes to (68.43)?

6. Why the PTA advertisement published in the news papers of 24 January, 2012 states mobile teledensity as 62% against the figures of 64.9% shown in IM at their website?

7. Indian economy is about 7-9 times bigger than Pakistan, but it got IRS69 billion, that too, in April 2010, from it’s auction of ONLY 3G. Why our Finance Minister has kept a budgeted amount of ONLY $800 million as expected income from the auction of NOT only 3G but 4 & 5G as well?

Submitted for consideration and immediate corrective action before it is too late.

—————————————
It was reported recently on a TV channel, that Finance Minister Abdul Hafeez Sheikh expects 800 million USD revenue, from the auction of 3G (fast Internet) license to telecom companies.

It is also reported that government has fixed the base price for auction to held on March 28 and 29, 2012 for 3G and 4G as 210 million USD. Whereas, 8 years ago 2G was sold at 291 million USD. (Please check and confirm this data from PTA).

Here, I must forewarn all and sundry, that under no circumstances, the worth of this auction amount can be less than 10 billion dollars. India got IRS69 billion from the same auction in April 2010 i.e. two years ago. Details are available at link:- https://www.snayyar.com/3g-telecom-technology-pakistan-can-earn-billions-of-usd-by-just-selling-air.html.

It will not be out of place to state that as reported today i.e., Wednesday 1 Feb. 2012 the Indian Supreme Court warned on Tuesday that corruption posed a “grave danger” to the world’s largest democracy quoted as above.

All patriotic citizens and institutions must be alert, lest we may not be cheated again, by those who sold our valuable national assets, for even less than the peanuts, in Musharraf era.

In Pakistan, every body knows that we are no less behind any nation in corruption.

Moreover, we are also no less behind in raising hue and cry against corruption. But, the problem is that corruption can neither be curbed with hollow slogans nor by declaration of assets by the politicians and government employees.

Times of India reported on 19 November, 2011(Link:-http://timesofindia.indiatimes.com/india/Black-money-India-to-sign-agreements-with-42-more-nations/articleshow/10793795.cms) that After signing agreements with 48 countries, India will shortly ink pacts with 42 more nations to bring backblack money stashed abroad, Union minister of state for parliamentary affairs Harish Rawat said. Once these agreements are signed, India will be in a position to bring back black money stashed in different banks abroad, he told reporters here.

Corruption can only be minimised by deterrent legislation; which ensures that crime of corruption will not pay, neither in the short nor in the long term.

And effective judicial verdicts, like the one announced today by the Delhi court in which former Indian 86 years old telecom minister Sukhram, has been sentenced for five years jail, for taking Rs 3 lakhs as bribe to give a lucrative contract to a private firm in 1996. He pleaded for leniency in court on grounds of his old age while the CBI called him a “habitual offender” and sought maximum punishment for him.The 86-year-old former minister was held guilty for misusing his official position during his tenure as telecom minister in P V Narasimha Rao’s cabinet in giving a contract worth Rs 30 crore to a private company, Haryana Telecom Limited (HTL), to supply 3.5 Lakh Conductor Kilometers (LCKM) ofPolythene Insulated Jelly Filled (PIJF) cables to the telecom department.

We in Pakistan, must realise that our main problem is not the existence of corruption. Rather, the fertile culture which help breeds corruption pay, as the most lucrative and profitable activity in Pakistan.

Till such time, we attack the very roots of this cancerous culture of corruption in Pakistan, no positive improvement should be expected in any sphere of life.

And we must be aware of the fact that, corruption is a bigger menace than terrorism.

Since, we have all the required institutions and no dearth of honest and honourable people, what is required is developing a system to post these DYNAMITE people to be head of NAB, FIA and Anti-Corruption departments of provincial governments.

Towards the achievement of this goal, a committee is proposed to be constituted, consisting of Chief Justice of Supreme Court, all Chief Justices of High Courts and leader of the opposition of National and all provincial assemblies, for appointing on a tenure post, all heads and key personnel of NAB, FIA and Provincial anti-Corruption departments.

Moreover, NO person in the country from civil, military, judiciary and any other department should have the immunity from interrogation, on corruption matters before these departments.

It is earnestly hoped that the above said mechanism if, put in place, will strike such a fear in the hearts of all and sundry, that no one will dare even think, of doing corruption in Pakistan.

Now our economic malaise has reached such a stage that business as usual, is going to jeopardise our statehood, not in years, but in months.

The degree of the sovereignty of a country, is directly proportional to the state of the economy of that nation. Actually, in constant growth & development lies our salvation. Secondly, we Pakistanis must know, that without any doubt, the …

How to involve public in increasing tax collection.

Without going into big preamble, I would jot down my suggestions for evolving a national culture of tax payment.

It is most difficult part in any culture to motivate its people to pay tax voluntarily. However, when tax burden, its collection and utilization is made equitable and transparent, majority of people, if not all, would pay their taxes on time and in full.

Although my suggestions would not cover all aspects, yet, when implemented these would definitely prove a major step forward towards establishing a society which pay its tax and feel proud of their contribution.
 
1.       Recognize tax payers and their contribution by:
 
a)      All those who pay personal income tax > Rs. 2.5 million in any one year should be on the list of invitees at President’s  receptions. While all those who pay personal income tax > 1.0 million in any one year should be on the list of invitees at Governor’s receptions.
 
b)      All those who pay personal income tax above Rs. 1.0 million in a year should be honored by nation by allowing them to fly national flag on their motor vehicles and at their residences.
 
c)       Honorary magistrates should be appointed from the list of those who have paid personal income tax above Rs. 0.5 million.
 
d)      Contribution of all personal income tax payers should be recognized by giving them national awards on 23rd March. Suggestions for honor list are:

Personal income tax payment > 5.0 million for 3 years consecutive – Nishan-e Kidmat
Personal income tax payment > 2.5 million for 3 years consecutive – Hilal-e- Kidmat   
Personal income tax payment > 1.0 million for 3 years consecutive – Sitara-e-Kidmat
Personal income tax payment > 0.5 million for 3 years consecutive – Tamgha-e- Kidmat
 
e)      All those citizens paying personal income tax > 1.0 million in any one year should be allowed one free arms license up to a maximum of three licenses.
 
f)       All registered income tax payers should be allowed free registration at NADRA for NIC renewal/reissue.
 
g)      Driving License fee of all registered personal income tax payers should be abolished.
 
h)      All income tax payers should be allowed 25% rebate in car/motorcycle registration at the time of purchase, and 50% rebate for annual registration after they have paid income tax for three consecutive years.
 
i)        All those who have paid personal income tax above Rs. 100,000 should be allowed free of cost new passport or renewal.
 
j)        When appointing members of board of governors of banks/corporate bodies/Government institutions/University Syndicates, these should be selected from the list of citizens who pay personal annual income tax above Rs. 1.0 million.
 
k)      All those Pakistanis sending remittances from abroad should also be recognized for their contributions. Some suggestions are:
 
1)      All those who remit more than $10,000, should be allowed to recommend one of their family member in Pakistan for one free arm license.

2)      All those who remit more than $25,000 should be allowed free passport renewal.

3)      All those who remit $10,000 or more, should be given 2.5% bonus (or Rs.2.50 per dollar) as incentive to use official channels. This incentive should be paid as certificates of investment, cashable after five years. These certificates should carry 10% annual profit and be tradable on stock exchanges.

4)       All those who have remitted $1.0 million or more in a year, should be allowed to hoist national flag on their homes in Pakistan.
 
l)        Peace and Harmony committees should be formulated at police station level. Only income tax payers should be included as private members in these committees.
 
m)    It should be made mandatory for all public office holders and all government employees to get personal income tax registration, even if their total income is less than minimum level. 
 
n)      It should be mandatory for all business accounts to provide national tax number. No bank should be allowed to operate any business account without NTN. All new firms, should be required to provide NTN within 90 days, otherwise their account should be frozen automatically.
 
o)      All bank accounts where credit or debit balance exceeds Rs. 500,000 should automatically (same day) be reported to Income Tax department, unless banks already have NTN in their possession. This includes all type of investments, as well. In case of default, banks/investment institutes  should be heavily penalized.
 
p)      No property (plot/shop/flat/house/farm/agri land etc) should be registered without NTN of buyer.
 
q)      No motor vehicle should be registered without NTN of buyer.
 
r)       Retired persons with no income, continue to file their income tax returns for three years. This should be abolished. Need to file return after retirement should be finished. However, their NTN should be kept alive/valid throughout their life like NIC.
 
2.       Tax collection system should be reformed. Apart from detailed overhauling of FBR, following changes should be announced immediately:

a)      Chairman FBR should be an eminent person without any political affiliation and with experience of business management. He should be selected from private corporate sector. Appointment of Chairman should be for one term three years.

b)      FBR should be given constitutional autonomy in operational matters.

c)       An FBR Supervisory Board should be constituted whose remit should be to quarterly review FBR’s working and submission of quarterly reports to government of its findings and recommendations. This report should simultaneously be published on internet. This board should consist of Finance Secretaries of Pakistan and all provinces, Auditor General of Pakistan, two prominent chartered accountants (non-political) from private sector, Leaders of Opposition in Senate and National Assembly, Chairman Public Accounts Committee.

A Practical Solution for Saving Pakistan.

Somehow, I have a hunch feeling that if, at the time of partition, our leaders had decided that Eastern Pakistan and Western Pakistan, will be two autonomous units of a confederation of Pakistan, it would been a very fruitful and beneficial decision, both politically and economically, for the Crores of Muslim population, in this part of the world. 

Anyway, it is always easier to be wise after the event. But the decisions of history always teach us some lessons, for our correct guidance and right decision making for the future.

Now after sixty five years of age, Pakistan is a more fragmented society than our forefathers could have ever imagined. It looks that polarization is so intense that if, immediate corrective steps are not taken, that too, on a collective basis, God forbid, this great country may not be confined to the dust bin of history. There are signs for all to see, of the decadence of Pakistani society, in every sphere of life, be it the political, economical, educational, industrial, agricultural,  religious, law & order or any other segment worth naming. Hardly, any day passes without reports  of  suicides due to the economic hardships of the poor and hapless people.  The ever widening gap in the fractured society, is there to see for all and sundry. In fact, Pakistan is slowly inching towards economic bankruptcy and civil war. 

Now, in order to stem the rot, may be, we have one last chance, to unite the people and give them a prescription, to rise again and build the nation from the ashes.

All stake holders of Pakistan, must open their eyes immediately, as the nation is moving towards fragmentation and into an abyss, as well. 

Our survival is directly linked with the existence of the nation. Hence, for all Pakistanis, failure is NOT an option.

In this regard, I would like to suggest that, let us formulate a new social contract (specially designed for the 95% have nots) for the PEOPLE of Pakistan, which should take care of 95% down trodden, poor people who always pay 100% bills and taxes and never default on bank loans. Let us make a new Pakistan, which is redesigned to practically cater to needs of the exploited masses, in true sense.

In order to achieve the above objectives, it is proposed that the following steps may be initiated jointly, by ALL the organs of Pakistani government, opposition (in & out side the assemblies), bench and bar, civil & military bureaucracy, all students and trade unions and representatives of the civil societity.

1. Constitution may be amended to change the current faulty election system, which ensures the rule of minority over majority.

2. The election system should also be changed in a way, so that the whole country directly votes for a President or the P.M. However, before the voting, the candidates of all the political parties for this top post, must notify a list of their MPA’s, MNA’s and Senators, who will be automatically considered elected according to percentage of votes cast, in favour of the main candidate for the top post of the country. For example, if a candidate for the top post gets 35% votes, his team’s 35% (from top of the list) candidates will be deemed to have been elected, for all the assemblies and senate, as well. 

3. The decision for Pakistan’s charter of  development  (for building dams & mega projects, educational, industrial, infra structural & communications, religious, agricultural, science & technology, poverty eradication, health and defense policy ), for the next fifty years, should also be finalized, on which later on, no politics shall be allowed. In other words, the entire representatives of the nation should decide now, where they would like to see Pakistan, in each and every field of life, after 50 years.

4. In order to decentralize and empower maximum number of people, to enjoy the fruits of self rule, we should convert every division of Pakistan into a province. This will also work as a panacea for the eradication of linguistic and any other type of  frictions and doubts about hegemony of people, of certain big area, over the people of other smaller area. In fact, it will work wonders in the speedy development and unity of Pakistan and kill instantly, any secessionist or separatist activities (by marginalization and localization of such people having nefarious designs against Pakistan), currently prevailing  in some parts of the country.

Pakistan Paindabad.

The degree of the sovereignty of a country, is directly proportional to the state of economy of that nation. Actually, in constant growth & development lies our salvation. Secondly, 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, can keep us afloat, but won’t allow us to swim.

Now the time has come to separate the growth, development, education, eradication of poverty & security of Pakistan, from the politics, forever.

In this regard, it is suggested that, we should aim to bring Pakistan, to the level of Singapore of 2010, by the year 2030. All politics & other considerations should be made subservient to this target for 2030, even if we have to abolish weekly holidays for the next 20 years & reduce our daily sleeping time to 6 hours.

All stake holders 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.

As such, the nation must embark upon the following agenda, to resurrect our economy without any further loss of time.
 
1. 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.  
 
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.
 
4. Increase in productivity & exports with liberal tax relief  to industry, commerce & trade.
 
5. Set a target for 20% per annum increase in foreign remittances, by offering innovative incentives to expatriate Pakistanis.
 
6. Abolish FBR (which will alone increase income by Rs.500 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 revenue, due to this formula). This will not only reduce income tax burden on salaried class (with max. 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 armed forces, rangers, police and other security agencies personnel, who are shedding their blood, in fighting the menace of terrorism, for our safe tomorrow.
 
7. Initiate steps (by imposing economic emergency) to bring each and every economic activity under document.  

I am more than confident that by the dint of sheer hard work, sincerity & honesty, which is imbibed in the bones of Pakistani work force, we can surely bring Pakistan, into the comity of 20 developed nations of the world, in the next 15-20 years.