Loud Thinking

Posts Tagged ‘pm’

My letter in English to the Indian Prime Minister translated in Urdu and published by the Urdu daily “JANG” at page 9 today.

Link :- http://e.jang.com.pk/01-18-2014/lahore/page9.asp

My replies to the Indian PM on his latest Twitter Messages after 12 Indian security personnel were reported to have been killed today in an ongoing insurgency in Indian held Kashmir.

1. @PMOIndia: “This is one more in a series of provocations and barbaric actions by the enemies of peace.” http://t.co/BJ8wKK01wt

Reply:- @nayyarahmad: @PMOIndia exactly we had the same feelings when Church was bombed in Pakistan.

2. @PMOIndia: We are firmly resolved to combat and defeat the terrorist menace that continues to receive encouragement from across the border. -PM

Reply:- @nayyarahmad: @PMOIndia Sir, pl also comment on the role of Indian consulates in Afghanistan in Swat, Balouchistan insurgencies & suicide attacks in Pak.

3. @PMOIndia: Such attacks will not deter us or succeed in derailing our efforts to find a resolution to all problems through a process of dialogue. PM

Reply:- @nayyarahmad: @PMOIndia no doubt your this statement reflects that it has come from a statesman. Fully appreciated.

The statement of Mr. Najam Sethi tonight over the Geo TV program “Score” conducted by Mr. Yahya Hussaini that “India has money and it is the need of our players to play in India” is such an insult of the self respect of the nation, our cricket players and the PCB that no condemnation of this statement shall be enough.

The Prime Minister Mian Nawaz Sharif, must take immediate action against the chairman PCB, for degrading and demeaning entire Pakistani nation and our players in such a blatant manner.

Pakistan Submerged in the Debt Trap..!

There is a feeling that government is mortgaging the future of the country with the foreign donor agencies, by taking so much huge amount of loans (that too just for the repayment of the old loans), which this poor country may never be able to repay. This means that in every terms, we have gone bankrupt; and can’t even breathe, without the debt life line.

Today, Pakistan is not under huge debt, rather, it is completely buried under the debt. The government has borrowed Rs.611 billion in just 40 days from the state bank of Pakistan, as against Rs.507 billion in full year (2012-13). In other words, the PMLN’s government has borrowed Rs.15.3 billion per day in 40 days as against Rs.1.4 billion per day by the previous regime in 2012-13.

The 6% depreciation of Rupee vs the USD in the last 80 days, has cost Pakistan Rs.3.5 billion per day and has added additional Rs.276 billion in public debt in the last 80 days. (Figures quoted in this para and its preceding para were reported by Dr. Ashfaque H Khan, in his article, reproduced below, titled “A nation’s debt” published by the daily “The News” dated 27 August, 2013).

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H’able Prime Minister Mian Nawaz Sharif Sahab, you always spoke against the debt burden through out the last 5 years tenure of the PPP.

However, now your government has broken the entire 365 days record of the PPP government in just first 40 days, as per the details explained above.

As such, kindly take it as very serious matter (of the economic life and death of the Pakistan) because, all the world knows that the USSR, the strongest nuclear power of the world, was broken, not because of any enemy action, but by its own economic melt down.

Sir, unfortunately, all financial indicators points that your era is moving the country fast towards economic melt down.

You may remember, I requested you to to take the personal charge of the affairs of the country, lest the situation may not come to a pass, where even you may not become helpless, to stem the rot.

In this regard, after declaring an economic emergency, the following economy and austerity measures are suggested for adoption, to at least put up an impression to the masses, that government is seriously contemplating to improve the economic resurgence of Pakistan. And also to dispel the impression that your economic policy is not to just blindly run the country on domestic and foreign loans and to merely pass your tenure of the government, without bothering about the repercussions of the future inability of the country, to pay back these loans.

SUGGESTIONS

1. Immediate 50% reduction of all the pay and perks of the entire government servants/employees (except all the security personnel who are shedding their blood for our safe and better tomorrow) from president to the peon. This should include all government employees, employees of the government semi-government/autonomous corporations/ banks, PIA, Railways, Steel Mills etc.

However, upon improvement of the economic situation the unpaid 50% salary amount should be gradually given back to the employees.

Moreover, for all these government employees, there should be a 50% rebate in payment of all utility bills and educational fees of their children during this period of economic emergency.

2. 50% expenditure reduction in the entire PSDP.

3. Absolute ban on the foreign trips of the government officials. All international meetings to be attended by the respective envoy’s of Pakistan, in that country.

4. Absolute ban on the foreign medical treatment on government expenditure, right from the top to the bottom.

5. Cessation of the entire subsidy on the food items available to the Senators, MNA’s and MPA’s at the Parliament’s cafeteria, where Roti is served almost free; and even in Peshawar, it is selling at Rs.15/- for the general Public.

6. Complete ban (in real sense) on the official entertainments at all levels.

7. NAB may be directed to take very immediate steps (absolutely ruthlessly) to recover (from within and outside Pakistan) all the looted national money, on a fast track basis.

8. Immediate nationalisation (without giving any time to the ultra rich people to move their precious jewellery out of Pakistan) of the GOLD, DIAMONDS, GEMS and precious metal in Pakistan.

9. Reduce taxation rate of all types of taxes, GST, levies, excise etc. to a maximum of 10%.

10. During the currency of this economic emergency period, there should be a ban on increase in the prices and rates of POL, utilities and all essential items.

With warm regards and best wishes.

Sincerely yours,

Syed Nayyar Uddin Ahmad

Lahore – Pakistan

Sent from my iPad3 4G LTE

Article of Dr. A.H. Khan published in the daily “The News” dated 27 August, 2013.

A nation’s debt

Dr Ashfaque H Khan
Tuesday, August 27, 2013
From Print Edition

The prime minister, in his address to the nation, expressed his concern about the rising debt of the country. His concern was right because high and rising debt constitutes a serious threat to economic prosperity. It acts as a major impediment to growth and hence to employment generation and poverty alleviation. It also discourages both foreign and domestic investment and puts pressure on the exchange rate thereby causing sharp depreciation of the exchange rate and the attendant rise in public debt.

Managing the country’s debt is an art as well as a science. It requires proper institution to manage the debt. Successful debt reduction would require fiscal consolidation and a policy mix that supports growth. Key elements of this policy mix and measures include addressing structural weaknesses in the economy, domestic resource mobilisation and supportive monetary policy.

Fiscal consolidation must emphasise persistent structural reforms for resource mobilisation and expenditure rationalisation over temporary fiscal measures such as increasing tax rates and reducing expenditure across the board. Fiscal institutions including the country’s debt office can play an important role in locking any gains. Reducing public debt takes time; therefore, fiscal consolidation must focus on enduring structural change.

Pakistan’s public debt has grown over the last five years at a pace never witnessed in the country’s history. Public debt (both rupee and dollar components) has grown at an average rate of 21.5 percent per annum in the last five years (2008-12) as against an average rate of 6.6 percent per annum during the first seven years (2000-07) of the previous decade. In absolute terms, public debt rose from Rs6040 billion in 2007-08 to Rs14255 billion by the end of June 2013; that is, an addition of Rs8215 billion in five years.

It is interesting that successive governments over the last 60 years accumulated Rs6040 billion public debt while the previous regime alone added Rs8215 in just five years. Put differently, every child born in 2007-08 carried a debt burden of Rs36606. A child born in 2012-13 carried a debt of Rs77896 – an increase of 112 percent in just five years.

Within the public debt, it is domestic debt that has grown at a pace (23.4 percent per annum) faster than external debt, which stood at $46.2 billion in end June-2008 and rose to $66.4 billion by end-June 2011. But it declined to almost $60 billion in end-June 2013. The decline in external debt owes to the suspension of the IMF programme in May 2010 which dried up most of the external flows from the International Financial Institutions. Meantime, Pakistan continued to service its external debt obligations out of its foreign exchange reserves. It appears that the suspension of the IMF programme was a blessing in disguise as it prevented Pakistan from further accumulating external debt to the extent of approximately $10 billion by now.

Within the domestic debt, the composition of debt has witnessed considerable changes in the last five years. Medium-to-long term debt has been converted into short-term debt with serious consequences for government’s debt management. Today, over 55 percent of domestic debt (Rs5.2 trillion) is of short maturity, which must be rolled over at least once a year. Even more worrisome is the fact that the bulk of short-term debt is shifted to the shortest end of the maturity (three and six months).

Factors responsible for the unprecedented surge in debt include the persistence of large fiscal deficit (on average over 7 percent of GDP), sharp depreciation of exchange rate (over 40 percent) and slower growth in economy (on average, 3 percent per annum). The persistence of large fiscal deficit represents government’s inability to collect more revenues on the one hand and reckless spending on the other, resulting in an extraordinary surge in public debt. Higher public debt has caused interest payment to more than double, crowded out private investment and reduced fiscal space to undertake much needed public investment in infrastructure.

The prime minister’s concern is genuine. He has inherited a severely damaged economy. What is required on his part is not to repeat the same mistakes. Fiscal consolidation should therefore be the topmost priority of his government. In his frequent speeches, he loves to mention various developmental projects of national and regional importance that he intends to launch. All these projects would require resources to complete them. He has seldom talked about domestic resource mobilisation with same zeal and fervour. It is suggested that domestic resource mobilisation should be an integral part of his government’s fiscal consolidation.

Secondly, fiscal consolidation efforts need to be complimented by measures that support growth: structural issues need to be addressed and monetary conditions need to be as supportive as possible. The beginning is not up to the mark. The government has borrowed Rs611 billion in just 40 days from the State Bank of Pakistan as against Rs507 billion in full year (2012-13). In other words, it has borrowed Rs15.3 billion per day in 40 days as against Rs1.4 billion per day by the previous regime in 2012-13.

Thirdly, exchange rate stability is also vital for preventing public debt accumulation. The performance in this regard is equally poor. The exchange rate has already depreciated by 6 percent in just 80 days. Accordingly, without borrowing a single dollar, Pakistan has added Rs276 billion in public debt in just 80 days – Rs3.5 billion per day.

Nothing is lost thus far on economic front for this government. These are minor damages and can be cured. What is required from the government is a serious effort to consolidate the debt situation through fiscal discipline, productive use of fiscal deficit, improving the quality of expenditure, exchange rate stability, structural reforms, a vibrant debt office, good communication strategy, and a strong and coherent economic team.

The writer is the principal and dean of NUST Business School, Islamabad.

Email: ahkhan@nbs.edu.pk

The H’able Prime Minister of Pakistan,

AOA.

Your honour seems to be absolutely oblivious of the living conditions of the poorest of the poor in Pakistan. Otherwise, how it was possible that again very cruelly, your government has announced the increase in the price of the poor man’s fuel i. e., KEROSINE OIL, which after an increase of Rs.4.71 per litre, will now cost Rs.105.99 (virtually Rs.106) per litre.

Perhaps, your honour may be aware that kerosene – which is mostly used in cooking stoves in remote areas where Liquefied Petroleum Gas (LPG) is not readily available – and LPG too is so expensive that poorest of the poor cant even think of using this fuel.

Sir, it looks your advisors have forced you to govern Pakistan like a cruel king, by squeezing the poor and honest people, with every now and then increase of prices of essential commodities, e.g., fuel, gas, electricity plus simply enhancing taxation rates, which impacts each and every item, in the use of the common man.

Your honour may or may not be aware of the fact, that the impact of your government’s policies has also started affecting the middle class society of the country; and people have started withdrawing their children from good public schools. This situation is a real cause of alarm for your government, which claims to have been formed, with the votes of the masses.

It looks your government is absolutely gone out of sync with the ground realities being faced by the teeming millions; and your advisors have totally shut their eyes to seek any out of the box solutions, for ameliorating the sufferings of the masses, in non traditional and revolutionary manners. The main reason for this approach of your advisors is that they don’t belong to the masses cadre (no doubt some of them are ultra rich) and thus, they are the forces, who support the status quo.

Anyway, I would like to invite your kind attention towards the below mentioned news item; in which case, if you pursue it with missionary zeal (this was your election promise as well), Pakistan’s all economic woes will end, like the movement of a magic wand.

Mr. Prime Minister, whether you want to be remembered as a run of the mill ordinary ruler, or as a cut above the rest, who changed the fate of the nation, the choice is in your hands. However, it must be remembered again, that with the current direction and outdated strategy of your government, the posterity will surely remember you, standing in line with rulers like Syed Yousaf Raza Gilani etc.

So, Sir, if you want to create a name for yourself in the realms of the history, just break the status quo; and surround your honour with the advisors, who have a connect with the masses and have the guts to call a spade a spade, in your presence.

Pakistan has 97 billion dollars in Swiss Banks: Director Swiss Bank

A news published on 18 September, 2011, by the daily “Pakistan Today”

BERN – Director Swiss Bank said that Pakistan has 97 billion dollars in Swiss Banks. Director Swiss Bank said ‘Pakistanis are poor but Pakistan isn’t a poor country.’

He added that 97 billion dollars of Pakistan is deposited in respective bank and if this money would be utilized for the welfare of Pakistan and its people then Pakistan can make tax less budget for 30 years, can create 60 million jobs, can carpet four lanes road from any village to Islamabad, endless power supply to five hundred social projects, every citizen can get 20000 rupees salary for the next 60 years and there is no need to see IMF and any World Bank for loans.

My comments posted subsequently on the above news.

“Syed Nayyar Uddin Ahmad · 101 weeks ago
The news reported in Pakistan Today that Swiss banks have 97 billion dollars is a smoke screen to mislead the general public. By no means this figure can be less than 200 billion dollars i.e. more than three times the existing foreign debt of Pakistan. Leaving aside the exact amount of Pakistan in the Swiss banks, our civilian government & parliament, military establisment, bench and bar & the media must devise some mechanism (following the US government initiative with the Swiss government) to very strongly take up the issue with Swiss government to return back our money deposited in Swiss banks. This is all the more necessary to stabilize the country to successfully fight the war on terror for the entire world.”

Wishing you godspeed and all the success in your endeavours, to serve the country in the best possible manner.

Sincerely yours,

Syed Nayyar Uddin Ahmad

An appeal to the PM Pakistan, to make conditional, the grant of the MFN status and the normalisation of relations with India, with the withdrawal of Indian military and para military forces, from the occupied Kashmir and the Siachin.

India kills unarmed protestors (a must read letter published on 21 July, 2013 by the daily “Pakistan Observer”

Professor Kabil Khan

Sunday, July 21, 2013 – This is with reference to the news of six unarmed protestors that were killed when the Indian security forces opened fire upon them. The mindset of the Indian army is evident from its brutal handling of the innocent and unarmed people of Kashmir and the grotesque manner in which they are maimed and killed. It is also reflective of the collective Indian psyche that has legitimized the use of brute force in order to attain and maintain a dominant status in the region.

After acting as a brute force, with full blessings from its government, the Indian army has surelyforgotten how to act as a civilized one. To raid a seminary in the holy month of Ramadan where Muslims are more emotional and sensitized towards religious activity, is nothing but sheer mischief making on the part of the Indian soldiers.

First the Imam of a mosque was harassed and the holy Quar’an desecrated upon which the local people were fired upon indiscriminately when they protested this act of brutal violence. This, manner in which the Indian forces operate is surely nothing new as they are regular customers of HR violations. And all this is being done with the relentless support of the institutional culture of moral, political and juridical impunity. Indian writer and human rights activist Arundhaty Roy states that India will suffer because of what it has done in Kashmir. That the “troops involved in various heinous crimes including custodial killings, disappearances, rapes and declared accused through FIRs and other reports have evaded action which has resulted in making them habitualoffenders. These habitual offenders when deployed in other states will commit the same offences against innocent people.”

—Peshawar

H’able Mian Nawaz Sharif Sahab,

Salaam.

The above mentioned news reported today on 10 July, 2013, by the jang.com.pk that Saudi Arabia and UAE are providing (interest free and conditions free) cash and kind assistance of $8 billion to Egypt, further highlights the importance of my three doable suggestions put forward for your kind consideration in my article titled “Mr. PM! there are three options to avoid IMF loan”. published in the daily “The News” dated 27 June, 2013 links:-

http://www.thenews.com.pk/Todays-News-13-23752-Mr-PM!-There-are-three-options-to-avoid-IMF-loan

http://images.thenews.com.pk/27-06-2013/ethenews/t-23752.htm

In this regard, vide my email dated 9 July, 2013 addressed to your honour, titled “Few Suggestions to Revive Economy, Fast Track Improvements in Energy Crisis and Nation Security Policy” the possibility and practicability of option No.2, of my above mentioned article was duly elaborated for the convenience of your finance team as below:

Quote. “Your kind attention is invited to my earlier email informing that the news that Abu Dhabi has planned a $50 billion investment in India; and the negotiations are at a very advanced level. Abu Dhabi has the WORLDS BIGGEST SOVEREIGN WEALTH FUND . Now considering the following plus points of Pakistan:

i. Pakistan is the only country in the world which allows foreign investors to repatriate 100% profit and investment without any hassle.

ii. There is no income tax on IPP’s in Pakistan.

iii. The Indians are severely annoying the Abu Dhabi people with objections on their deal of Etihad Air with Jet Airways of India, which will give EA rights over 37,000 weekly seats in India, after EA purchases 24% shares of Jet Airways. Pakistan must grab this opportunity and offer a suitable agreement with PIA. Indian Jet Airways is in much more bad financial shape than PIA and is owned PRIVATELY.

iv. Pakistan should also offer to Abu Dhabi, management sharing in other avenues like, Port Qasim, KPT, steel mills, OGDC, PNSC etc., in lieu of their investment.

v. Pakistan can also offer to Abu Dhabi to invest in new Islamabad Airport, expansion and development of other airports, helicopter and small planes air taxi service to and from big cities to many smaller cities and towns, and development and export of world class fisheries, corporate farming, export of dairy products, fruits, flowers etc.

vi. Abu Dhabi had a very long and successful JV experience with Pakistan viz., Pak Arab Fertilisers Limited. Now they can be offered such JV’s for Refineries, Oil and Gas explorations, defence related production items and air craft manufacturings etc.”Unquote.

Mr. Prime Minister, this news of cash and kind (interest free and conditions free) financial help of Egypt, by the KSA and UAE proves that Pakistan was deliberately forced to take IMF loan with very high repeat very high interest rate of 3%, coupled with conditionality’s. Further, it has also proved that we have completely failed in convincing our Arab friends and 49 NATO countries led by the USA, that helping Pakistan is helping the world and its neighbours, against the menace of terrorism, mainly because Pakistan is the front line state against this world war of terrorism, for the last 13 years. Our friends and allies should be cognisant of the fact that the more Pakistan goes into poverty and economic deprivation, the more this situation will breed the terrorists.

In view of the foregoing, Mr. Prime Minister, you are passionately requested to personally take the charge of the economic policies of Pakistan, vis-a-vis it’s friends, to save Pakistan from the stranglehold of IMF and the World Bank; and from the tunnel vision of our financial and foreign affairs experts. This is all the more necessary because business as usual will never deliver (like the lousy suggestions of increasing tax burden and enhancing utility services rates, so that the ages old policy of penalising the honest common man and rewarding rich scoundrels, continues in this tenure as well, which obviously is the best recipe of an early demise of ANY government).

Pakistan needs nothing, except out of box solutions, which is only possible from a fearless leader and not a timid person, because a timid person like Pervaiz Musharraf, can rule a country, but he can never rule the hearts of his subjects.

With Best Wishes and Kind Regards,

Syed Nayyar Uddin Ahmad

snayyar.com
Lahore.

Sent from my iPad3 4G LTE

Turkey Approves Indictment of Israeli Commanders : Why Can’t Pakistan Try NATO Commanders?

A report published today (29 May 2012) in a news paper, tells that a Turkish court has approved an indictment, seeking multiple (8000 to 18000) life sentences, for the four Israeli military commanders, over their alleged involvement in the 2010 killings of nine Turks on a Gaza- bound aid ship. The indictment accuses Israel’s former COGS Gabi Ashkenazi & three other retired senior military commanders, of involvement in the raid on the Turkish aid ship. Turkey had previously said, it would try to prosecute all Israelis responsible, for crimes committed during the raid.

Now, coming to NATO Salala check post attack, which resulted in the killing of 26 & not 24 Pakistani soldiers and dozens others were injured, why can’t Pakistan also indict NATO commander and other responsible soldiers, for a far more serious crime than the Israeli attack on Turkish aid flotilla? Here, we must also remember that Pakistan has deployed its forces on the Afghanistan’s border, on specific request of NATO, to help them in their created WOT. So, by all means, killing the helping forces of Pakistan, attracts and deserves double the punishment, than in normal circumstances.

However, we hope that the news attributed in media to the Prime Minister of Pakistan (elected by 180 million Pakistanis), that the “Killed soldiers now can’t be back alive with US apology” is absolutely false. In the mean time, we are also hoping that the same worthy PM of Pakistan, will soon issue a defamation notice to the concerned news agencies, who reported that our PM during his latest visit to UK, purchased only 3 coats worth Rs.80/- lacs. At the same time, we are still waiting for the denial of the news, about the last time purchase in UK, of items worth about Rs.8 crores by the honourable wife of our P.M.

So, long live the cherished democracy in Pakistan, which is looking after our leaders and their families in a befitting manner. Long live our chosen democratic leaders.

For the dying poor Pakistani civil and military mortals “Democracy is the best revenge”.

                              Revenge of Supreme Court’s Punishment?

Since the Supreme Court of Pakistan punished our beloved P.M. (elected with a two third majority of the parliament) for a few seconds, he seems to have decided to go on a revenge policy, to punish the entire 180 million people of Pakistan, with virtual cessation of electricity supplies, in this extremely hot season.

And, after putting the general public on hot burner, the worthy convicted P.M. has himself left on a sojourn, to watch the Queen opening the session of the UK parliament.

I will request with my folded hands, to the honourable judges of the SC, to kindly condone the punishment of our beloved P.M.,  so that in return, the general public of Pakistan is released by the government from the perpetual sentence, of being condemned to the hell. Otherwise, the general public will remain hostage, with this highly honest & efficient government.

Moreover, it looks the government is hell bent to prove  the U.S. Senator correct, that Pakistan is a failed state, under this highly competent government of PPP.

In order to neutralize Indian double game, Pakistan must emphasize that ICP (integrated check post) working at Wagah border can’t be allowed (for which India & USA are dying to start its working to allow flow of 2000 trucks per day movement from present rate of 200 trucks per day movement) till such time India restores full fledged cricketing ties with Pakistan (as per the commitment of MMS) and must first send Indian cricket team to Pakistan, for a full fledged tour of 3 Tests, 5 ODI’s & 3 T20 matches series.

We must understand that why even after the commitment of MM Singh with our PM last year in Mohali, for the restoration of cricketing ties between the two countries, what are the Indian motives to back out on their commitment? If they can back out, we can also do the same and this must be very clearly told by our PM to Barack Obama (who has a big stake in restoration of India -Afghanistan trade link through Pakistan, in facilitating India as per the US end game plan of Afghan war), when he meets him in the next few days.

First, they sent terrorists to attack Srilankan team players and then blame us on security issues. Enough is enough. If security for players is an issue, then let it be an issue also for the Indian goods and transports going to and fro to Afghanistan.

Now it’s high time this joke with Pakistan, is stopped forthwith.