Tag Archive | "economy"

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“Our thing”

Posted on 29 January 2012 by Tea Server



I have been following stories of different mafia groups for a while now. One reason is the sheer dramatization of their stories that can attract anyone, but there are other reasons as well. The mafias give you an interesting account of the parallel economy or commonly known as the ‘black markets’. Another interesting aspect of any mafia is the CoC or the ‘Code of Conduct’. It is only the strong adherence to this code that makes any mafia an effective long term enterprise. I am particularly fascinated by the Sicilian mafia, commonly known as ‘Cosa Nostra’ or ‘our thing’. Their process of ‘making’ a guy, the oath ceremonies, the hierarchy with-in the families, and strong adherence to the CoC, made them one of the strongest enterprise in the history of United States. They developed a superlative concept of parallel economy that was copied by different mafias around the world.

If you look at the current economy and political structure in Pakistan, you will find an even greater degree of parallel economy-an even bigger Costa Nostra. The corruption has been institutionalized and ‘made’ men are minting money right and left. Parties have taken the shape of families and there is just one rule of thumb, as the boss of famous Gambino family repeatedly said ‘We can not make money with guns in our hands’. Our political parties have recently been exercising this rule. They have dropped their guns for each other and they are indeed making a lot of money. They have Captains in the form of ministers who are eligible for the bigger share. They have consiglieres giving them advices and protecting them in legal battles. No sect or sector is out of bound when it comes to making money. Just like old mafia, they will never name anyone from their or another family in case someone is convicted. The have vows, that their own family will come before anyone else in the whole world, and anything for the family will never be considered out of bound. You start imagining any of our ruling political parties today, and it wont take you long to develop the same analogies. The Godfathers, in this case, are also the kings of black market.

If think of all the captains in the current political setup, there is one ‘made’ man who made the most out of the last four years, Monsieur Gilani. For the past 4 years when the Godfather have been under a lot of heat in the federal and the financial capital, the Gilani family has enjoyed a tantamount wealth in the deserts of Multan. Having been a 1000 Km too far for the media to cover the luxuries of the family, Mr. Gilani was rarely tried in media the way Zardari/ Bhutto family has been tried. People like myself, who have seen the Gs (Short of Gilani’s) through the 90s and early 20s, are in awe. The family who proclaims to be the descendants of the same Abdul Qadir Jilani, who once gave away all his money to the robbers so that he doesn’t have to lie, is anything but hypocrites. Few of their corruptions have surfaced in recent years like the Hajj scandal, the import of million dollar vehicles, and kick backs from various developmental projects (some of those projects were carries out their own city). Mr. Gilani, being the boss of the family, usually goes for the bigger kick backs.

In short, The Gs, the Zs, the Bs, and the Ss, are just part of a system that supports parallel economy. A recent transparency report predicts that by 2023, in 11 years,Pakistan’s parallel economy will be of the same size as its normal economy. I fail to imagine the state of people then.

In old Sicilian times, the Sicilian’s used to work in Sulphur mines. It used to get so hot in the mines that the miners used to work naked. Despite these tough situations, they were supposed to pay to a middle man to get a job in the mine, and once they got their daily wages, they were supposed to pay to another mafia. It was then these miners got together and fought with the mafia. The same people went on to the U.S to form Cosa Nostra. I don’t see our current state of affairs any different than the Sicilian miners.. I just hope that we fight with our mafia the way Sicilian miners fought with their’s.

Syndicated from: Borderline Green

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Obama Cracks Hilarious Joke, Hopes Re-Election

Posted on 25 January 2012 by Tea Server

The first black President of the most easily offended and supremely overweight super power of the world versed his best ever joke during a State of the Union address on Tuesday; he announced a plan to place steep tax increases on wealthier Americans, fresh investigations into the mortgage crisis and support for domestic manufacturing. After [...]

Obama Cracks Hilarious Joke, Hopes Re-Election is a post from: PakMediaBlog All Rights Reserved.



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What Are the Main Reasons to Be Cautious of Mobile Banking?

Posted on 24 January 2012 by Tea Server

Mobile banking is still a fairly new technology. More and more people are now using their mobile devices to check their balances, make payments and do everything else that we’re used to doing online: so are there any reasons for caution, any more so than there would be were you doing your online banking via [...]

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Syndicated from: GeoTauAisay Pakistan

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Mansoor Ejaz Vulgar Video: Statement by Maulana Mujahid Al Hussaini

Posted on 19 January 2012 by Tea Server

We extremely condemn the sheer act of vulgarity done by a Qadiani, Mansoor Ejaz’s clip of a video which is reported by various national Dailies today. In this video he is hosting a show of wrestling of naked girls. This was said by Maulana Mujahid Al Hussaini, a close aide of Ameer-e-Shariat Syed Ataullah Shah [...]

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Syndicated from: GeoTauAisay Pakistan

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The Next 3 Months of Pakistani Politics

Posted on 16 January 2012 by Tea Server

Photo Credit: SANA News Agency

To say that Pakistan is ahappening place would be an understatement, we are a country that has atsunami, flood and even an earthquake coming but thankfully all this is justcoming in the political sense. With the political situation changing so rapidlyit is no wonder that our media is mostly in frenzy leaving us the public withno clear indication as to what is going on and where we are headed in the nextfew months. In this blog I intend to actually do exactly that, provide someclarity as to where we are going and how we are getting there.

So to start of let me make itvery clear that the Government is going nowhere. I know that you keep hearingthrough the media and other sources that may be there is something going andthat very soon this government is going to wrap up, but it is not going tohappen. Yes the PM has been asked to appear in court but that has been done in the past as well and worst case scenario would be that the PM would be forced to resign. That does not mean that the NA will fold. Instead what is going to happen is this, Senate elections are going to happenon time and once they are done, the government is going to give a date forelections and dissolve the Parliament. About a week ago PML N the majoropposition party agreed in principle that they would not do anything thatjeopardizes the Senate elections based on the promise that the Government wouldfold immediately afterwards. Now the deal is, once the government wraps up,Elections are to be held in about 90 days. That means given that the Senateelection is done and the new Senators take oath, the time would be aroundmiddle of March. The Government would ideally be dissolved around middle ofApril and then the Election date would be set for something like middle ofAugust or September.
Photo Credit: Reuters

This settlement works out foreveryone for different reasons. Firstly the Senate is elected based onprovincial seats. That means that if you have enough provincial seats, you getto have proportional seats in the Senate. The biggest beneficiaries of this arethe PPP and PML N who gain substantial seats in the Senate. Holding the Senateinsures that even if the General Elections are a mess and PPP along with PML Nwere to suffer losses, they would still hold one house of the Parliament. Thisalso means that the Chairman Senate would be a compromise candidate who will beacceptable to all parties involved and for that the name being thrown around isthat of Aitezaz Ahsan, someone who is acceptable to everyone. In case you didnot know, the Chairman Senate is also the Acting President by default. So ifthere were to be a situation where the President was to be forced out, a PPPperson would still hold the office.

Secondly, NADRA cannot completethe voter list updating by the court appointed date of Feb 23rd.There is absolutely no way that they can manage that and there is a very goodchance that the whole exercise would have to be extended for a few moremonths.  This means that no matter whathappens, the voter lists are not going to be ready and that elections would beheld until they are.

Photo Credit: The Nation
Thirdly, the opposition has beenworking overtime to form alliances to ensure that the PPP led coalition doesnot come back in elections. Opposition parties fear that if the government wereto be forcibly sent home in the next few months, they would go out as PoliticalMartyrs and this would just help them bounce back in the elections. The logicalway for the opposition to operate is to let the PPP led coalition burn out andcall for elections on their own as that way the whole Political Martyr carddoes not get used. This also gives time for the PML N led opposition to cobbletogether an alliance with other parties namely JI and Baloch Nationalists.  That alliance would have a very strong chanceof doing well in the elections as it would be able to cast a wider netnationwide. But the sticking point in that whole negation is the Munawwar Hasanof the JI who refuses to sit with PML N and instead wants his party to sit withPTI. But JI the party refuses to sit with PTI and instead wants to join handswith the PML N, so there is an internal debate going on in the JI with regardsto which side they wish to proceed to. Based on the Qazi-Nawaz meeting a coupleof days ago, it looks like that the JI is going to go with PML N. In additionto this alliance in the making, the PTI is continuing its policy of taking inanyone and everyone and right now they are involved in a prolonged negotiationwith the PML Like Minded group who have left the Q league and are being refusedentry in the PML N. The sticking point there seems to be that PTI does not wantthem to join as a group but to negotiate their terms on individual basis likeQasuris and the Legharis but the PML Like Minded refuse to negotiateindividually. That whole situation will pan out soon as they have nowhere elseto go and PTI knows that.

Lastly, the Supreme Court isgoing over a few high profile cases at the moment and these cases are going toreach their climax around March. All the Commissions are going to startwrapping up their investigations around that period of time too. A number ofcredible sources maintain that in nearly all cases the PM would bear the bruntand would probably be declared unfit for office. He would resign and face thecourts while the PPP led coalition elects an alternative PM.

The next 3 months are going to bevery interesting. The path I have spelled out above is the one that iseventually going to be followed. Now that you have a good idea of what is goingto be happening, enjoy the media frenzy and the whole political show. 
Syndicated from: Seedhi Baat

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The Weekly Pah-kee-stuhn Musings

Posted on 14 January 2012 by Tea Server

NYT/AP. Gilani: I should just Expecto Patronum all of you! All of you! Kayani: Oh God.

The problem with blogging about Pakistan is that there’s no dearth of topics and issues to write about. Turning on the television hits you with drama, intrigue, and conspiracy theories as caricatures scream in vain and to no one in particular.

And that’s just on our news channels.

Rather than be overwhelmed by the multitude of things I could write about, and hence, um, not actually write anything, I decided to spare you the excuses and just package them as a list. With a bow. And a rainbow. You’re welcome.

1. Gilani went all Jadoogar on the military. If you don’t know why Harry Potter should be jealous of Gilani Sahib, check out this past post. This week, media outlets and Twitter feeds alike were abuzz after Prime Minister Gilani fired Pakistan’s Defense Secretary [retired] General Lodhi. (Poof! He was gone. Jadoogar! Ooh!) According to media outlets, the controversy resulted from Lodhi’s statements during his Memogate investigation, claiming the Ministry of Defense (MOD) had no control over the ISI or Pakistan military.

Not surprisingly, coup rumors were abound after said news went public, as the Express Tribune reported Gilani allegedly made a “panicky” phone call to a British diplomat to support the PPP government. The British Foreign Secretary appealed for calm today, urging that all parties respect “the constitution and help ensure stability.” So military coup in the making? The jury’s still out, but I highly doubt it given the proximity (hopefully) to elections as well as the military’s own capacity to perform a coup. Al Jazeera English quoted analyst Moeed Pirzada who further iterated, “The Pakistani military is not the political player it used to be. It knows it’s not in a position to capture political power in Islamabad … not with the Supreme Court being the biggest impediment.”

But why such a high octave of rumors now? There are obviously many reasons, but one factor [purposefully?] upping the notch is…

2. The controversy known as #Memogate. Gah. I recently wrote about the first iteration of the Memogate scandal here, when Pakistani-American businessman Mansoor Ijaz alleged that he was asked by [now former] Amb. Haqqani to pass a memo to former chairman of the U.S. Joint Chiefs of Staff Adm. Mike Mullen, asking for help in reigning in Pakistan’s military establishment. The military, particularly COAS Kayani & ISI chief Pasha claim there is truth to the document & urged the judiciary to investigate its origins. Gilani claimed that Kayani & Pasha were violating the Constitution by submitting statements to the Supreme Court. ISPR responded by calling Gilani’s statements false and could have “very serious ramifications.” Gilani responded by saying the Army’s statements were – wait for it – released with his consent, i.e. “Just kidding, guys! I totes let the Army make allusions to a military coup, that would hence usurp my power!” Hee! [Note: read this great piece by Mohammed Hanif on how the military uses rumors over force.]

As the three-member judiciary panel gears up to for the memo inquiry this coming Monday, “A separate bench of the Supreme Court is scheduled to convene that day to hear the government’s explanation for failing to comply with earlier court orders to reopen corruption cases against Mr. Zardari,” noted the NY Times. Raza Rumi said it well when he noted, “The real threat for the government is a proactive Supreme Court which has taken a serious notice of noncompliance with its orders. The civilian government is stuck between two powerful institutions, which are no longer comfortable with business as usual.”

The ironic thing, though, is that this cacaphony still is business as usual. Politicians are not the only players who reign over politics, they are joined and often challenged by the judiciary and the military. This politicized warring, this blurring between the lines, mean we are also distracted from *real* issues like…

3. The Gas Shortage. Hello, McFly! The gas crisis in Pakistan isn’t so much a shortage as much as it’s the result of horrendous management. Or as Khurram Hussain noted in his piece for Express, it’s the result of an addiction. As CNG stations ran short on fuel and/or shut down in the country, protests broke out as people voiced their discontent. The gas shortage became visual as you would drive past rows of cars waiting at the CNG stations. But beyond the lines, beyond the protests, the crisis goes much deeper. Take away gas, and citizens are immobilized. They can’t drive their cars, they can’t take buses to get to work, they can’t cook their food. This has impacted industries, where, in Punjab, rows of factories have had to shut down. It’s affected jobs and livelihoods. In my opinion, that more than coup rumors is worrisome.

Also while you were watching Memogate

4. The Saleem Shahzad Report came out. And it was inconclusive. The Pakistani journalist was abducted, tortured and found dead outside Islamabad last year, two days after his report on connections between Al Qaeda and the Pakistan Navy was published. Although several facts pointed to an alleged connection to the ISI, the Saleem Shahzad Commission did “not hold any institution or individual responsible for his death,” instead blaming “belligerents” for the incident. Given this lack of accountability, it’s no wonder the Committee to Protect Journalists (CPJ) once again said Pakistan was, for the second year in a row, the most dangerous place in the world to be a journalist. CPJ’s Bob Dietz told AJE,

[The media in Pakistan is] free and vibrant, but let me qualify that with saying that they are under tremendous amounts of pressure from all sides. There’s been a lot of emphasis on intelligence services attacking journalists, but the fact, if you look at the journalists slain in the last few years, is that the ISI is only one of the actors that is putting pressure on journalists, threatening them and responsible for their deaths as well.

The news about Pakistan is, as always, eventful. The negative developments couched in this list are a reflection of the ground reality, but they are also a snapshot of what’s in the news. My work convinces me every day that Pakistan is a country with tremendous potential that has been horrifically managed. We are the victims of poor leadership, institutions that care more about pointing fingers outwards than looking inward, and a number of inefficiencies in our national value chain. Peel back that rotten layer, and you see the positive stories of opportunity, innovation, and energy. It may not completely overcome the bad, but it’s enough to be the silver lining. At least in my opinion.

And if you ever need further proof of change, check out this preview for Pakistan’s Next Top Model (PNTM). Because nothing says “Pakistanis, they’re just like us! Yay!” quite like reality television franchises & model wannabes smizing. What ups, #FAT (Fashion Against the Taliban).:



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Memo Case: Mansoor Ejaz with the support of Qadiani Group trying to destabilize Pakistan?

Posted on 13 January 2012 by Tea Server

Since creation of the Islamic Republic of Pakistan, the Qadiani Group is at their best for conspiring to topple every government of this country and present memogate issue is also one of the conspiracies hatched by Qadiani brains. Maulana Mujahid Al Hussaini, former editor of weekly ‘Khaddam-ud-Din’ and a close aide of Ameer-e-Shariat Syed Ataullah [...]

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Syndicated from: GeoTauAisay Pakistan

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To franchise or disenfranchise overseas Pakistani’s?

Posted on 08 January 2012 by Tea Server

Overseas Pakistanis have been comingunder some stick recently. The Election Commissions recent decisionthat dual nationals will not be allowed to contest the upcomingelections has been challenged in the Supreme Court.
The current PPP government firstsuggested allowing overseas Pakistanis to caste votes a couple ofyears ago and a consultation process was initiated. Recently, the PTImoved a petition in the Supreme Court, calling on it to allowoverseas Pakistanis to vote.
So on the one hand, votes count butstanding in the same elections is to be allowed.
A question of patriotism
Living overseas is enough for onespatriotism to be questioned. Having a second nationality doesn’thelp ones cause either. Some people say that,
if you want to join politics, andserve Pakistan then giving up a second passport is a small thing toask”
Perhaps, but what happens if you standin elections and don’t win? No one is going to compensate you if one fails. At the same time its also a small thing to ask for voters of a constituency not to vote for such an individual if they consider his or her second nationality unappealing. 
Fast track corruption
The second line of argument goessomething like:
All these dual nationals can packup and leave whenever they like. They line their pockets and leave”
Does that mean that people who haveonly Pakistani nationality are less corrupt? Or conversely, does thismean that overseas Pakistanis, because they presumably havethe opportunity to dabble in corruption are necessarily corrupt?Essentially, they are being accused of being petty opportunists.
Thesecond argument that they can pack up and leave is the one that Ifind most frustrating. Yes, I guess, people with second passports canleave when they like. But then again, politicians in Pakistan , giventheir social and economic status in the country are also quite mobileinternationally. To think that the colour of their passport effectstheir mobility to the same degree as the average Pakistani is a grossexaggeration.
Ifpeople are behaving in a corrupt manner, they do so because they areconfident that they can get away with it. They weigh the pros andcons and realise that the benefits of behaving in a corrupt manner isgreater than the perceived risk or costs. The nationality of theindividual is inconsequential to the extent that a foreign passportdoes not give an individual immunity when prosecuted for a crime. Thefact that a Pakistani, overseas Pakistani or dual national knows thathe or she can get away with a crime in the first place determines hisor her ability to indulge in illegal activity. A second passport maybe a convenience, however, its the system that is at fault, not theindividual.
Men and women of a lesser God
Now when it comesto overseas Pakistanis, not all overseas Pakistanis are equal.
The vast majorityconstitute Pakistani labourers, who toil away in the Gulf, NorthAfrica and to a lesser degree in places such as Malaysia. Now theseworkers, who primarily leave Pakistan in search of work, save a highpropensity of their income. In doing so, they remit most of it.Thankfully, due to their efforts over the past few years, Pakistanhas managed to contain its Current Account deficit given the massiveinflows from such workers.
On the flip side,these overseas Pakistanis are the ones that are conveniently ignored.Before our grand Arab masters, the Pakistani state is unable orunwilling to voice any concern over the treatment that is meted outto them. For example, the seizing of labourers passports in the Gulfis a common practise which breaks the International Covenant on Civiland Political Rights. The city state of Dubai, which effectively wentbankrupt a year and a half ago, saw many managers and business ownersleave the city in a rush. In doing so, they left without returningpassports to labourers or clearing their wages. What did thegovernment of Pakistan offer to such workers? Nothing. The BBC’s Panorama looks at migrant workers in the UAE:
I dont even blamethe government for such inaction. Dubai and the wider Gulf region hasbecome a playground for the upper-middle and upper economic class ofthe country. The same people who buy second homes, work in managerialpositions and enjoy vacations in these cities have no qualms aboutenjoying the fruits of the mass, systematic exploitation of theirfellow countrymen in a foreign land, while complaining aboutcorruption and injustice in Pakistan itself.
Return toPakistan, and its these same labourers who are welcomed by rentseeking customs and immigration officials. When these same Pakistanisleave the country, they have to pay of immigration officials due tothe “protector law”.
Most people thinkthat all the people working in the Gulf are happy to do so, shouldconsider that a few years ago the UAE government launched a schemewhere they offered free tickets to workers who wanted toleave. The number of people who came forward was so large, that theyhad to eventually stop the entire project due to its cost and thepoor press it received. If everything was so hunky dory thegovernment of the UAE wouldn’t have paid the founder of Blackwater to hire and train mercenaries from Columbia, Angola, Namibia and South Africa as a rapid reaction force to put down any labour protests.
No, these overseasPakistanis, have little hope of support from their host governmentsor their governments, but nevertheless the Pakistani state isgrateful for their remittances. Effectively, the savings of poorlabourers overseas, cross subsidises the tax dodging opulence of thePakistani upper class, for without their remittances, the Pakistanieconomy would be in a much, much worse state at present.
Giving thesePakistanis the right to vote is little consolation given theinjustice and exploitation they face. However, when we talk about overseas Pakistanis, we are not thinking about the poor labourers. Instead, we are looking at those living in the West. For they, supposedly have sold their souls to a foreign master. However, the Pakistani state selling Pakistanis into second class citizenship in the Arab world is well…just brotherly relations. 
The “Western” Pakistanis
No, the problemsand the question of loyalty really comes up when we talk aboutPakistanis who have dual nationality with Western countries.Pakistani-Brits, Pakistani-Americans etc. Another point thatPakistani commentator like to take up over and over again is to quotethe American oath of allegiance. In all its glory:
I hereby declare, on oath, that Iabsolutely and entirely renounce and abjure all allegiance andfidelity to any foreign prince, potentate, state, or sovereignty ofwhom or which I have heretofore been a subject or citizen; that Iwill support and defend the Constitution and laws of the UnitedStates of America against all enemies, foreign and domestic; that Iwill bear true faith and allegiance to the same; that I will beararms on behalf of the United States when required by the law; that Iwill perform noncombatant service in the Armed Forces of the UnitedStates when required by the law; that I will perform work of nationalimportance under civilian direction when required by the law; andthat I take this obligation freely without any mental reservation orpurpose of evasion; so help me God.
People complain that how can someonewho has taken this oath be patriotic towards or have Pakistan’s best interest at heart? That is utternonsense. We live in a globalised world where people move not becauseof changing nationalistic sentiments, but because of economicopportunity or familial pressure. If someone takes this oath thatdoes not make them any more American or any less Pakistani. If youbelieve that this is infact the case, then you should also believethat when a girl marries a boy and moves to her boys household, herlove for her parents and siblings is compromised. You then, shouldalso believe that if a non-Muslim, in school in Pakistan, happens tosit through an Urdu class and comes across a chapter related to Islamand reads through it, he or she will become more Muslim and his orher faith in their religion is also compromised.
Why do British-Pakistanis supportPakistan in a England vs. Pakistan cricket match? I am sure they havesand God Save the Queen at some point in their life or attended acivics class in school?
I am not saying that overseasPakistanis will always be patriotic towards Pakistan. I am sure theyare now third or even fourth generation British or AmericanPakistanis, who probably have no link with Pakistan at all and noattachment. However, what I do disagree with are the nonsensicalarguments that are made to disenfranchise overseas Pakistanis. 
Citizenship for another age
The primary function of oaths andcitizenship was to make sure that they were always men that could becalled upon to fight a war if need be. Through conscription,individuals could be drafted into military service. However, Pakistandoesn’t draft citizens into the military. And we are not fightingbattles for local chieftains (or are we?).
The issue here isn’t about the colour ofones passport.
To move beyond questioning onespatriotism, same sensible rules can be established for overseasPakistanis who may want to participate in elections.
More important than citizenship isresidency. For example, the UK along with many EU countries allow non-EU citizensto vote in local or city elections. An overseas Pakistani may beasked to reside in Pakistan for a qualifying period before beingallowed to stand for office. He or she should make a declaration ofincome and assets, and if liable show a history of paying taxes inPakistan.
The issue here is not about excludingindividuals from running from office. The issue here is thatconstituents are being deprived of choice on the ballot. If thevoters of X, Y or Z want to vote for an overseas Pakistani that’stheir choice. What however, needs to be discouraged is for potentialcandidates not declaring dual citizenship, not because there issomething wrong in having a second passport, but because that mayraise questions on what else he or she is hiding.
In afuture post I hope to talk about the economics of overseas Pakistanisand the role immigration plays in supporting our economy. However, interms of politics, disenfranchising individuals should not be ourgoal, to serve some warped understanding of patriotism. On the one handlobbying for overseas Pakistanis to vote, while denying them theright to stand in the same elections is setting dual standards anddenies voters a full spectrum of choice.

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Fabrication galore: Nadeem Ul Haque and the nukes controversy

Posted on 05 January 2012 by Tea Server

Ahmad Rafay Alam ‘s exclusive piece for Pak Tea House.

I stopped writing for The News after their attacks against Asma Jehangir during the run-up the Supreme Court Bar elections in 2010.  I knew The News catered to every constituency – from the sublime to the ridiculous.  It has to.  It’s in business, after all.  But what they tried to do with Asma was reckless and unforgivable.

There are plenty other papers out there, I thought to myself, why be associated with this one.  I have not regretted my decision.

Last week, I saw the same ugly underside of the paper’s editorial policies when Ahmad Noorani tried to uncover a scandal that wasn’t there.  Noorani, who is known to call helpless interviewees late at night and record their conversations, made headlines some time ago by trying to embarrass Nazir Naji.  Naji, however, didn’t have the good sense to turn the other cheek – a good strategy in the face of a smear campaign, especially when you don’t have a microphone as loud as The News’.

Noorani had spoken to Dr. Nadeem Ul Haque, the Deputy Chairman of the Planning Commission.  Haque was due to deliver a lecture on development, and plug his baby, the New Growth Framework for Pakistan, before an audience at the National Defence University.  He’s done this plenty of times, as anyone on the conference circuit in Islamabad can attest to.  However, NDU cancelled the lecture last minute, apparently because it was due to be held in the middle of the December 25/Christmas break.

Nevertheless, like a mouse scrounging for scraps, Noorani thought he saw a story in the cancellation and promptly called Haque.  He spins the tale, in an article titled “Progress, N-Plan can’t go together”, thus:

The PPP government was on the verge of making yet another blast to complete the implementation of the notorious ‘Memo agenda’ on Monday when the deputy chairman Planning Commission was all set to deliver a lecture at the National Defence University on the growth strategy based on major cuts in the country’s nuclear budget or completely giving up the nuclear programme, it is reliably learnt.

 Credible sources told The News that Dr Nadeem-ul-Haq was preparing the lecture he was to deliver at the NDU on December 26 with the aim of convincing his audience of Pakistan Army officers that the only way to take the country ahead and to make economic progress was to make major cuts in the country’s nuclear programme and subsequently follow the South African Model.

These sources revealed to The News that under instructions of the present government, Dr Haq was to come out in public on the last point of the memo, something the Prime Minister Gilani had stopped short of doing in his two fiery speeches on Thursday.

Noorani is one of those journalists for whom facts are not really something that get in the way of a good copy.  He records Haque’s side of the story thus:

When The News approached Dr Nadeem, he differed completely with this interpretation and said his speech, which had been cancelled, was not to focus on the nuclear programme in any way.

But, never mind the other side of the story, the game is set and the script runs thus: Haque is an IMF plant in the Government and is now an instrument of Western World’s plan to roll-back our nuclear program.

The Planning Commission issued a clarification to Noorani’s article the next day (there’s a report in The Express Tribune as well). What I find amazing is the brazen defiance Noorani displays in his rejoinder to the clarification:

Planning Commission Deputy Chairman Dr Nadeemul Haque, despite great condemnation of his statement against the country’s nuclear assets across Pakistan, stuck to his words and did not take his statement back during the whole day on Monday, but tried to play with the words by issuing a press release saying: “The story misquoted the presentation he was to give in NDU”.

Arrey bhai, the man says he didn’t say it in his clarification and you just go and call him a liar. The story should have come to an end then and there.  But no, with the game set, it was only time before The News let someone else come and play.  Enter Shamshad Ahmad, former Foreign Secretary, with his op-ed on “Intrigue and National Security”, and this is where all semblance of The News’ credibility goes down the drain.  Ahmad states:

Given our colossal economic mess-up under the present government, we always thought there is no real economist available to it. But we have now discovered it does have one. He happens to be the head of the now almost defunct Planning Commission. The story goes that last week this distinguished economist, who had never been heard of ever since this government came to office, was to present the blueprint of a plan for Pakistan’s economic recovery and development.

The story further goes that the venue of his presentation was to be the prime military institution, the National Defence University (NDU), regarding the contents of the notorious May 10 memo. Ironically, this was also the place where our civil and military leadership had assembled 13 years ago to take the decision to go ahead with our nuclear tests on May 28, 1998.

Symbolically, therefore, it would have been a blow delivered to the nation by this government through an inconsequential functionary. Timely detection of the radioactivity from the ill-designed “testing device” even before its explosion seems to have pre-empted an embarrassing event. The economist was told not to come to the NDU. The testing device he was to explode was certainly not compatible with the location, a university. No wonder, the planned presentation was aborted.

The Planning Commission “almost defunct”?  Haque “an inconsequential functionary”.  This is yellow journalism at its worst.  Carrying out character assassination.

Nevertheless, Ahmad’s op-ed opens up another aspect of this entire story.  The elephant in the room, so to speak.  And that, of course, is the role of military expenditure with respect to the development budget.  Everyone knows that the billions spent on our nuclear program have done bugger all for the country’s security (Dr. Parvez Hoodbhoy makes this point far more eloquently) and that, amongst so many other things, that money could have spent saving the hundreds of thousands who perish every year because of impure drinking water.  Even now, as the development lobby cries hoarse over cuts in development expenditure, no one sits back to notice that the lion’s share of the pie goes into a one-line budget entry that remains inaccessible to the public.  But no, Ahmad comes from that rare breed of diplomats who fancy themselves economists: later in his essay, he offers the following chestnuts of advice on how to run the country:

Instead of seeking to undermine the country’s national security, our economist friends should have been using their professional skills to control governmental spendings, rooting out corruption from all segments of our society, promoting self-reliance, simplicity and austerity in all spheres of life, and eliminating the VIP culture, including the lavish perks and privileges extended at government expense to holders of public office. What is needed is tightening of belts at the top levels, reducing governmental borrowings, controlling inflation, rationalising of GDP targets, restoring macro-economic balance, and banning non-essential imports and luxuries to reduce the trade gap.

No doubt a fine actor, Ahmad continues to masquerade as an economist for large tracts of the article.  If you have the time, I recommend his anachronisms for your amusement.  But for now, I want to stop and make a couple of observations.

First, anyone who’s enjoyed Secretary status at the Federal level shouldn’t be allowed to lecture us on “eliminating VIP culture”.  Secondly, anyone who’s retired from Government service and is still alive bears some measure of responsibility for the mess Pakistan is in.  And here, I’d like to remind Ahmad that he, too, must have played no small part in determining the fortunes of our blighted land.  I’d like to ask him what good strategic depth in Afghanistan ever did for schoolgirls in Quetta.  I’d like to ask him whether his oversight of the Sir Creek Dispute ever made a difference for people in South Punjab.

The relentless hounding of Haque and his Growth Strategy is base and undignified.  I don’t know what bone Ahmad may have to pick with Haque, but his op-ed certainly makes me think the less of him.  If you want to criticize Haque and the National Growth Strategy, do so (and there’s plenty to engage on; for me, I’d like to mention that the document is thin on issues such as the environment and climate change), but properly.  The News may never live to meet such a standard, but surely there are people out there who can tell right from wrong.

Ahmad Rafay Alam is a lawyer, columnist and an environmental activist based in Lahore. The views expressed here are those of the author.

Syndicated from: Pak Tea House

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Controlling inflation in Pakistan

Posted on 04 January 2012 by Tea Server

Present Pakistan People’s Party Government has totally failed to control inflation. The cost of the ever worsening problem is constantly being paid by the people of Pakistan without any iota of respite. People are facing unprecedented high inflation together with high unemployment, a decline in Growth Rate and decreased currency value, and high food and [...]

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U.S Aid- Suspension of Supply to NATO Troops

Posted on 04 January 2012 by Tea Server

Finally, President Barack Obama has signed a $662 billion national defence authorisation bill which freezes $700 million in aid to Pakistan until Islamabad gives assurances of helping it fight against the spread of improvised explosive devices (IEDs). After signing the bill Obama stated, “I have signed this bill despite having serious reservations with certain provisions [...]

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No civil military balance, without divesting military commercial interests

Posted on 02 January 2012 by Tea Server

A poor attempt at a balancing act
Asma Jahangir has spoken on the issue of military-civil imbalance today. Quite rightly, any deference to the wordsof General Kayani and Pasha that compromises individual rights doesn’tsay much for either the supremacy of the law, or a “freejudiciary”.
Back in May, right after the Abbottabadraid, a lot of people quite excitedly, heralded this as aunfortunate, but at the same time fortunate opportunity to put themilitary in its place. Get it back into the confines of itsconstitutional mandate. Then came the in camera briefing in the National Assembly, but after a few weeks it was obvious that the military was running the show.
The PPP government started off by emphasisingits determination to guide Pakistan’s security and foreign policy.Zardari spoke of a grand free trade area and our then foreignminister SMQ smiled sheepishly with Hillary Clinton as Kayani looked on from the margins. Alot of choreographing, but Zardari’s ideas didn’t come to much and SMQ is well, batting for the other team now. Even then, fewbelieved that the Army had relinquished influence over foreign andsecurity affairs. Effectively, it could exercise its veto overcivilian decisions if and when it wanted.
In the recent past, one has to be quitenaive to still believe that its Zardari who shapes Pakistan’sforeign policy. Unlike most PTI supporters and reactionary critics,its not as if Zardari allowed drone strikes or handed over Pakistaniairbases to US control. Neither was it Zardari who extra-judiciallyhanded over foreign and Pakistani citizens to the US without dueprocess who later ended up in Bagram, Guantanamo etc. And before Iforget, the most hated of documents, the infamous NRO was facilitatedand negotiated by our very own COAS General Kayani, however, being inkhaki he’s above criticism or responsibility.
That said, whenever the issue ofcivil-military relations come up and people talk about balancing it,a lot of emphasis is placed on politicians doing the “right”thing and exercising their mandate and forcing the military to relentbefore there constitutional superiority. That’s why the mere mentionof the possibility of the PM sacking Kayani and Pasha unleashed astorm. Mind you that storm was much louder in regards to a possibledecision that a sitting PM might which is his prerogative andconstitutional, while a coup, orchestrated by the military unleashesjubilation and a fiscal stimulus for mathai shops.
The biggest slice of the cake
Iwould argue that any balance between the civilian side and themilitary side of the state can only be achieved if the militaryeconomic influence is decreased. The military through its variousarms has its fingers in every commercial pie. Resources are skewedfavourably in the hands of those in khaki and their institutions; forthe industrial, capitalist class knows who to deal with if they wantto get things done.
Nowthe military property empire is a ubiquitous part of Pakistani urbanlife. The nexus between Bahria Town-HRL-DHA for a few is “nationalprogress” but for those forcibly displaced, the state that missesout on tax revenues, the banks that are forced to offer concessionalloans and later write them off, the abrogation of the constitutionwithin these areas; the costs are massive and they keep on piling up.The following DAWN Reporter Episodes paint an ugly picture of thecartel that is now the military-commercial interest which is a lawunto itself. (Thanks to @shahidsaaed)
Youcan tick through a list of industries in Pakistan, and one way or theother, either through outright ownership or in partnership themilitary is a major stakeholder. Nothing comes of cases ofcorruptions against generals, so there is no surprise thatex-military types pack commercial organisations. Capitalists votewith their feet, and it shouldn’t come as a surprise to anyone thatthey vote for the team with the bigger stick.
Incentives in action
Nowpoliticians are a fragmented and competitive group. Sure, they makepoor decisions and may be corrupt, however, they act in their selfinterest, where ever that might take them. Given the might of the military, its monopoly over the useof force, coupled with its huge economic clout, a fragmented group ofpoliticians have no chance to exercise their will over the military. Instead, they are co-opted by the military to do their bidding, and why wouldn’t they? 
Nowthe next obvious question is: Do we want these incompetent civiliansdictating policy to the military?
Theanswer to that is yes. The simple reason is this: Given Zardari’s 11%approval rating, the dismal approval rating of the PPP, and overallimage of politicians as incompetent, we can be assured that everydecision they take is the talk of the evening news cycle. Columns arewritten, opinions are formed, news is shared and retweeted.
However,decisions taken by the military fall under two categories. Either themilitary makes a decision, and then civilians are made to face thenegative fall out of it. Or the military makes decisions and no oneis the wiser. When questioned, you are not offered a policy outline.Instead you get a long emotive speech about sacrifices and braverywhich somehow qualifies someone to make decisions on a nationsforeign policy or other associated matter that is not even thatpersons job.
Do as the Chinese do
In China the Divestiture Act of 1998banned all the commercial activities of the People’s LiberationArmy (PLA). Like their Pakistani counterparts, the PLA had investeditself in banks, hotels, factories, property developments, retailingetc. During the Tienanmen uprising in 1989, China came dangerouslyclose to a military coup. As the vanguard of the revolution the PLA,was a central part of the Communist Party and the Party heavilyinvested in the PLA. The PLA eventually sided with the pulitburo andthe Tienanmen protesters, and protesters across the country werecrushed. These events helped accelerate the PLA’s independence fromCCP control and widen its economic activities. By the mid-1990s asChina bombed, so did the PLA’s financial interests. In an effort toencourage professionalism in the PLA and in a display of itsauthority, the CPC promulgated the Divestiture Act of 1998 banningits commercial activities. Without it, the PLA would have gainedundue influence, both by wielding weapons and cheque books…. Soundfamiliar?
Without reducing the military’seconomic dominance and access to resources the dream of civilauthority over the military will not come to pass. This is not amatter of budgetary allocations. Its about a parallel economy thatsucks away resources without any accountability. It rewards itselffor taking the risks, but given that its “too big to fail”, thecosts are passed on to the losers. The military and those associatedwith it, sail through bureaucratic red tape, judicial and legislativeoversight, and political interference.
This is also why, I don’t agree withsuggestions that the only way to save the Railways or PIA is toprivatise it. Pakistan has toothless regulators that are easilyco-opted. Recently, a newspaper report claimed that the NationalLogistics Cell, which has single handedly destroyed the Railwaysfreight transport market is going to take over parts of theorganisation to run as a “private” initiative. Then again, NLC,with its association with the military is above any critique. Until the state has a capacity to regulate privatised industries, there is no point in transferring a public monopoly to a private one. Tax payers keeping a state organisation afloat for better or worse is one thing, however, tax payers of inflationary borrowing doing the same to prop up a privatised industry to line the pockets of shareholders is criminal.
If I may digress for a paragraph, thisis also another reason why I dont buy Imran Khan’s and PTI’s rhetoricon jusitice and ending corruption. How can they talk about justiceand reducing corruption when they remain silent on the military andits role in the economy? Why the silence? PTI supporters like to talkabout Turkey’s example and the Erdogen model of gradual civiliandominance, but Erdogen as an activist and campaigner would not shyaway from putting the Turkish military in its place.
Given that the military is the “winninghorse” in the race to the bottom, its not surprising that thoseseeking an economic advantage find one way or another to cling to it.Some argue, that this proves that the military is a disciplinedinstitution and people trust it with its money. However, the flipside is that no competitor is allowed a fair chance to compete withthe military’s might. And those individuals and organisations who arelucky enough to tag along under the khaki umbrella…well not onlyare they minting money, but they are also called national heroes. Andwhen there great money making enterprises go belly up, it will be thepatriotic duty off every Pakistani to bail them out.

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Taxing problems: few winners, many losers

Posted on 01 January 2012 by Tea Server

Since the early 1990s, inequality has intensified in Pakistan. The consumer boom under the Musharaf regime, coupled with high inflation since 2007 has widened the gap between the rich and the poor.

While the rhetoric in the media is largely made up about issues of access to resources and state services, the wider implications for ignoring inequality are ignored.

Some quick thoughts on this.

1) Given the minuscule number of tax payers in the country, the idea of having a progressive taxation system that redistributes wealth from the rich to the poor is non-existent. We still live in a system where individuals, even those who can well afford it, expect the state to provide them services for free.

2) The states inability to raise enough taxes forces it to borrow money from the State Bank, commercial bank or foreign sources. In all of these cases the increase in inflation and the burden of repaying the debt is borne primarily by those who the state should be protecting. The “haves” however are net beneficiaries through low or non existent tax obligations.

3) Links between politicians, civil servants, the military, industrialists and feudal networks insures that resources are allocated in a manner that serves their own interests. Laws, systems and methods that would help to reduce inequality either by redistributing wealth from the rich to the poor, or by improving the state of the poor are non-existent or co-opted to suit the interests of a small segment of society.

This list could go on for several more points, but I think you get the picture. As we rally against price hikes, increase in the cost of gas, oil and electricity, corruption and mismanagement, we should stop to remember that even in the worst of times, they are winners and losers. The winners continue to win big, while the losers lose more badly. The long term costs of increased inequality are mostly ignored.

The following talk best summarises alot of the points I would agree with.

   
                              

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Aftermath of Energy Crisis in Pakistan

Posted on 29 December 2011 by Tea Server

The power outage for over eight to 12 hours per day has ruined the country. Four-year tenure of the incumbent PPP regime is characterized by extreme power shortage and load-shedding with a series of broken promises, un-kept pledges, misplaced priorities and a directionless journey. Industrial production is suffering, exports are on the decline, jobs are [...]

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