Budget to widen gap between rich, poor: Dr Ikramul Haq

Budget a threat to economy, society: int’l tax experts

Budget to widen gap between rich, poor: Dr Ikramul Haq

Govt yet to provide economic justice to masses: Huzaima Bukhari

Budget pushing majority to abject poverty: Dr Murtaza Mughal

June 25

International tax experts Dr Ikramul Haq and Huzaima Bukhari on Tuesday said current budget will widen the gap between rich and poor which is detrimental for society andeconomy.

They said that the budget indicates failure of the government to provide economic justice to the masses by taxing the rich.

Talking to Dr Murtaza Mughal, President of the Pakistan Economy Watch, Dr Ikramul Haq and Huzaima Bukhari said that budget lacks focus on welfare programmes and it will impede poor from moving up economically.

The budgetary measures will not redistribute wealth and income in the society but benefitting the affluent, the tax experts said.

Government efforts will not help overcome economic crisis but it has successfully pushed majority to another crisis in this era of high inflation, they remarked.

They opined that government can bring an end to lucrative SRO business, amend the Constitution and bring all kinds of income including from agriculture in the federal ambit.

Dr Ikramul Haq and Huzaima Bukhari further said that taxing education amounts to barring the children who are at the bottom to do better than their parents which is unfortunate.

There is a complete lack of understanding in the government that education can be used as effective tool for upward social mobility. 

Speaking on the occasion, Dr Murtaza Mughal said that the system has been damaging poor segments of society who remain mired in abject poverty.

He said Pakistan needs meaningful redistribution policies that can uplift the downtrodden but this is not preferred by rulers and the budget is an example of it.

Dr Murtaza Mughal said that the claim of the government to keep national interests supreme seems to be a political slogan as interests of rich are being watched and protected adding that revenue measures can go wrong anytime.

The budget document is long on rhetoric and short on action which overestimates revenues, stock market and wholesalers and retailers have been taxed lightly, formal sector has been burdened.

Salary increase and fertiliser import will broaden the deficit by Rs 160 billion, said Dr. Mughal.

Read More

IWCCI asks Govt. to complete IMF package deal urgently

Govt lauded for showing true picture of economy

Move helped restore confidence of business community

Broadening tax base better option than printing money

IWCCI asks Govt to complete IMF package deal urgently

Islamabad: June 23

The Islamabad Women's Chamber of Commerce and Industry (IWCCI) on Sunday lauded the government for showing true state of economy to the nation which has improved confidence of business community in their leadership.

The statement of Finance Minister Ishaq Dar that the government would have to look towards the IMF and other donors to start returning foreign debts calls for an urgent action, said Farida Rashid.

She said that former government damaged the economy, took 200 per cent loan of Pakistan’s quota and left Rs500 billion circular debt unsettled, now the country will face a default if it failed to return three billion dollars to IMF during 2013-2014.

She asked the government to finalise a deal with IMF for a loan of five billion dollar minimum on urgent basis so that Pakistan can avert a default.

The current situation is result of the inaction of the previous government which signed the loan agreement with the IMF in 2008 but failed to reform the tax system, state corporations, energy sector, eliminate subsidies and bring down fiscal deficit to 4 per cent as promised during negotiations.

The indecision of former unpopular rulers has brought country on the brink again which cannot make it on its own, she noted.

Farida Rashid said that new IML loan will restore the confidence of World Bank, ADB, and other donors to support Pakistan.

It will improve investment climate, result in continuity of policies, reduce flight of capital and relocation of industries and erosion of local currency to stabilise exchange rate.

Farida said that unlike former rulers, the incumbent government has decided to stop printing excessive currency and broaden the tax net which is a very positive development.

She said that government should think about the impression that it plans to burden masses through taxes while sparing wealthy.

Read More

Captive Power lobby biggest hurdle in resolution of energy crisis

Captive Power lobby biggest hurdle in resolution of energy crisis

June 27, 2013

The Pakistan Economy Watch (PEW) on Thursday said influential lobby of the owners of Captive Power Plants (CPPs) which is wasting gas worth Rs70 billion per annum is one of the biggest hurdle is the resolution of the energy crisis in Pakistan.

The incumbent government seems helpless as the powerful lobby which has been getting natural gas at dirt cheap prices since last five years without the permission of Ogra and Nepra is still enjoying unprecedented influence in the corridors of power, it said.

Dr Murtaza Mughal said that those who are getting natural gas at 91 per cent discounted rates as compare to furnace oil are being patronized despite the opposition by Planning Commission and Ogra while they have sent packing four federal secretaries which has terrified the entire bureaucracy.

A former Advisor petroleum changed gas provision priority list for three times within twenty days illegally and without the consent of concerned institutions including Council of Common Interests, he said.

Murtaza Mughal said that gas load management policy available on SNGPL clearly indicates that masses are on the top of the priority list while CPPs are at the bottom which was violated by the former government while incumbent government seems in no mood the correct the matter.

Rules clearly indicate the CPPs can get gas when it is surplus, its usage remains within 1 mmcfd and the owner of any CPP invests Rs500 million minimum. Not only all these conditions are being violated but some owners of the primitive CPPs have closed down their units while selling electricity to others to distribute spoils with government officials.

He said that the situation warrants action which has been put on the backburner since long which is increasing plight of masses and budget deficit resulting in severe energy crunch.

It may be mentioned that government figures reveal the number of CPPs at 113 which are getting 450 mmcfd gas daily to waster 326 mmcfd which translated into annual loss of Rs70 billion.

The gas load management policy of 2013 has not been approved by the competent forums and its imposition could be a bid to sweep facts under the carpet which include unholy collusion between the owners of CPPs and top government functionaries. 

Read More

Civil Society urges Government to enact law to end Torture

PAKISTAN: Civil Society urges Government to enact law to end Torture 

International Day in support of Torture victims

Rights-based organizations, HR defenders vow to synergies efforts to combat Torture

LAHORE:(26^th June 2013): "The large scale instances of torture in custody is a common practice in Pakistan and there is no law in the country to stop this menace. The Parliament of Pakistan should enact law for criminalization of torture. Govt. of Pakistan must respect all international treaties and ratify the optional protocol on Torture. Despite prohibition of torture in the Constitution of Pakistan under the article 14 (2), police and other law enforcement agencies are running detention and torture cells. These centers must be immediately closed and the perpetrators of Torture must brought to justice".

These demands were made by speakers at a civil society seminar on 26^th June 2013"Ending Torture: Protecting Human Rights", jointly organized by Asian Human Rights Commission (AHRC), Human Rights Commission of Pakistan (HRCP), South Asia Partnership-Pakistan (SAP-PK) and Anti Torture Alliance (ATA) Pakistan, in connection with international day in Support to Torture Victims, here on Wednesday at HRCP Hall.Among main speakers were I.A. Rehman, Mohammad Tahseen, Khawar Naeem Hashmi, Sajida Mir, Bushra Khaliq and Zakia Arshad. A large number of representatives of civil society, Human Rights activists, media and political parties attended the seminar.

Director Human Rights Commission of Pakistan, I. A. Rehman said investigation through torture is common practice of police in Pakistan. The menace of Torture is a colonial legacy, which is continued in Pakistan since decades. Torture is generally used to extort confessional statements from detainees. It has become societal attitude. Most of jail inmates in Pakistan are under trial prisoners, which is tantamount to torture as well. Similarly handcuffing of under custody is illegal but the police is still practicing it. The state agents justify torture "in good faith" for national security.

Talking about Article 2 of UNCAT, he urged state to incorporate admin, judicial and legal reforms in their respective legal systems. Even during war torture cannot be justify, he clarified. Under the UNCAT "No state shall hand over to another state any person, who might be tortured".

He urged the state develop mechanism to ensure protection and safety of Human rights defenders. It is imperative for the civil society as well to initiate solid steps to protect victims of torture by forging unity to stand up against the menace by involving rights-based group, HR activists and individuals.

Focal Person Anti-Torture Alliance (ATA) Pakistan, Bushra Khaliq said there are 1300 police stations in Pakistan and it can assumed that at least 1300 persons are tortured every day. Two important conventions were ratified in 2010, which prohibits torture. She clarifies that Section 332-337 of PPC deals with Hurt, and not Torture.

She said at present there is no law to criminalize custodial torture in Pakistan, this reason giving rise to incidents of unabated torture in police custody. Thousands of cases of severe torture in police custody are reported every year. Sexual violence is reported by up to 70 per cent of women in police custody, along with the violation of their basic human rights. Making torture a criminal offence can stop this menace .She said there are no adequate and proper independent investigation procedures in Pakistan to investigate through modern and scientific methods including the forensic method in the criminal justice system. She urged upon the authorities to modernize the criminal justice system with development of proper complaint centers and the Judicial Commission must immediately start the reforms; particularly in lower judiciary and also make reforms in prosecution system.

Director South Asia Partnership (SAP-PK), Mohammad Tehseen, presenting civil society charter of demands said besides enactment of law its implementation mechanism more important. The government must perform its constitutional responsibility and check the menace of custodial torture. He said Pakistan has ratified the UN Convention against Torture and other Cruel, Inhuman, Degrading Treatment or Punishment (CAT) in June 2010, but it has yet to take steps for the implementation of this convention.

Making torture a punishable crime only can stop this. He demanded legislation for an absolute ban on torture by police, law enforcement agencies, state or non-state actors for a peaceful society. He said the provincial governments must improve the condition of human rights standards at police stations, lock ups and jails.  At least female SHOs can be appointed in the model police stations in different parts of the province. He shared the incident of murder of young child by a feudal lady in Jatoi village.

Renowned Journalist Khawar Naeem Hashmi, himself a torture victim, said in his testimony, Pakistan is not a free country, 18 crore population is facing state torture daily. Talking about his struggle for press freedom and his ordeal in police custody during Gen. Zia-ul-Haq martial law, he said he was detained in Lahore Fort, where had to face worst form of inhuman torture. Hundreds of political activists were subjected to torture during martial law period, however, the stories of these torture victims are not documented, he lamented.  It is important to highlight the struggle and stories of these brave victims

Political Activist and torture victim Sajida Mir, said in her testimony that in martial law regimes political workers and innocent people are arrested and subjected to state-sponsored torture. They did not spare even women, who dared to resist the regime. Police exploit political workers and women, which is another form of torture. Thana culture never changed and police stations had become hubs of torture and bribery, she added. He demanded of the government to end torture culture in police station and there should be sensible police officers appointed in police stations

Zakia Arshad from SAP-PK said lack of public awareness on the human rights has also aggravated the issue of rising torture and ill treatment. Therefore there is a strong need for the sensitization of the lawmakers, judiciary and law enforcement bodies on the subject of torture. It is also observed that legislators are the least interested in making a law against torture, she added.

Testimonies from the floor threw detail light on the incidents of torture and its implications on the societal attitudes.

Read More

2013 World Drug Report notes stability in use of traditional drugs and points to alarming rise in new psychoactive substances

Vienna special high-level session marks key milestone in roadmap towards 2016 UN Drug Review.

26 June - Vienna – At a special high-level event of the Commission on Narcotic Drugs (CND), the United Nations Office on Drugs and Crime (UNODC) today launched in Vienna the 2013 World Drug Report.  The special high-level event marks the first step on the road to the 2014 high-level review by the Commission on Narcotic Drugs of the Political Declaration and Plan of Action which will be followed, in 2016, by the UN General Assembly Special Session on the issue.

While drug challenges are emerging from new psychoactive substances (NPS), the 2013 World Drug Report (WDR) is pointing to stability in the use of traditional drugs.  The WDR will be a key measuring stick in the lead up to the 2016 Review.

UNODC Executive Director, Yury Fedotov, said “We have agreed on a path for our ongoing discussion. I hope it will lead to an affirmation of the importance of the international drug control conventions, as well as an acknowledgement that the conventions are humane, human-rights centred and flexible. There must also be a firm  emphasis on health and we must support and promote alternative sustainable livelihoods. It is also essential that we recognize the important role played by criminal justice systems in countering the world drug problem and the need for enhanced work against precursor chemicals.”

Emerging drug problems

Marketed as ‘legal highs’ and ‘designer drugs’, NPS are proliferating at an unprecedented rate and posing unforeseen public health challenges.  Mr. Fedotov urged concerted action to prevent the manufacture, trafficking and abuse of these substances.  

The number of NPS reported by Member States to UNODC rose from 166 at the end of 2009 to 251 by mid-2012, an increase of more than 50 per cent. For the first time, the number of NPS exceeded the total number of substances under international control (234).  Since new harmful substances have been emerging with unfailing regularity on the drug scene, the international drug control system is now challenged by the speed and creativity of the NPS phenomenon. 

This is an alarming drug problem – but the drugs are legal. Sold openly, including via the internet, NPS, which have not been tested for safety, can be far more dangerous than traditional drugs. Street names, such as “spice”, “meow-meow and “bath salts” mislead young people into believing that they are indulging in low-risk fun. Given the almost infinite scope to alter the chemical structure of NPS, new formulations are outpacing efforts to impose international control.  While law enforcement lags behind, criminals have been quick to tap into this lucrative market. The adverse effects and addictive potential of most of these uncontrolled substances are at best poorly understood. 

In response to the proliferation of NPS, UNODC has launched an early warning system which will allow the global community to monitor the emergence and take appropriate actions.

The global picture

While the use of traditional drugs, such as heroin and cocaine, seems to be declining in some parts of the world, prescription drug abuse and new psychoactive substance abuse is growing. In Europe, heroin use seems to be declining. Meanwhile, the cocaine market seems to be expanding in South America and the emerging economies in Asia. Use of opiates (heroin and opium), on the other hand, remains stable (around 16 million people, or 0.4 per cent of the population aged 15-64), although a high prevalence of opiate use has been reported from South-West and Central Asia,  Eastern and South-Eastern Europe and North America.

Africa is emerging as a target for the trafficking as well as production of illicit substances, although data are scarce. Mr. Fedotov called for international support to monitor the situation and to prevent the continent from becoming increasingly vulnerable to the drugs trade and organized crime. There is also a need to help the large number of drug users who are the victims of the spill-over effect of drug trafficking through the continent.

New data reveal that the prevalence of people who inject drugs and are also living with HIV in 2011 was lower than previously estimated: 14.0 million people between the ages of 15 and 64 are estimated to be injecting drugs, while 1.6 million people who inject drugs are also living with HIV. The revised estimates are 12 per cent lower for the number of people who inject drugs and 46 per cent lower for the number of people who inject drugs and are living with HIV.   These changes are the result of revised estimates in countries that acquired new behavioural surveillance data since the previous estimates, which were made in 2008.

In terms of production, Afghanistan retained its position as the lead producer and cultivator of opium globally (75 per cent of global illicit opium production in 2012). The global area under opium poppy cultivation amounted to 236,320 ha and was thus 14 per cent higher than in 2011. Nonetheless, given a poor yield, owing to a plant disease affecting the opium poppy, in Afghanistan, global opium production fell to 4,905 tons in 2012, 30 per cent less than a year earlier and 40 per cent less than in the peak year of 2007.

Estimates of the amounts of cocaine manufactured ranged from 776 to 1,051 tons in 2011, largely unchanged from a year earlier.  The world’s largest cocaine seizures – unadjusted for purity - continue to be reported from Colombia (200 tons) and the US (94 tons). Cocaine use continues falling in the US, the world’s largest cocaine market.  In contrast, significant increases in seizures have been noted in Asia, Oceania and Central and South America, and the Caribbean in 2011. 

The use of amphetamine-type stimulants (ATS), excluding ecstasy, remains widespread globally and appears to be increasing in most regions. In 2011, an estimated 0.7 per cent of the global population aged 15-64, or 33.8 million people, had used ATS in the preceding year. 

The prevalence of ecstasy in 2011 (19 million, or 0.4 per cent of the population) was lower than in 2009.  However, at the global level, ATS seizures have risen to a new high of 123 tons in 2011, which is 66 per cent more than in 2010 (74 tons) and double the 2005 figure (60 tons).

Methamphetamine continues to dominate the ATS business, accounting for 71 per cent of global ATS seizures in 2011. Methamphetamine pills remain the predominant ATS in East and South-East Asia: 122.8 million pills were seized in 2011, although this was a 9 per cent decline compared with 2010 (134.4 million pills).  Seizures of crystal methamphetamine, however, increased to 8.8 tons, the highest level during the past five years, indicating that the substance is an imminent threat.  Mexico recorded its largest seizures of   methamphetamine, more than doubling within a year from 13 tons to 31 tons, thus representing the largest reported seizures globally.

Cannabis remains the most widely used illicit substance. While cannabis use has clearly declined among young people in Europe over the past decade, there was a minor increase in the prevalence of cannabis users (180 million or 3.9 per cent of the population age 15-64) as compared with previous estimates in 2009. 

Read More

Coal ministry suggested to tame energy crisis

Thar coal offers cheap, abundant power

Coal ministry suggested to tame energy crisis

Economical Thar coal can fulfil rising Indian demand

Statement of petro minister of Thar coal, Iran gas welcomed

Islamabad: June 25

The Islamabad Women Chamber of Commerce and Industry (IWCCI) on Tuesday said precious resource of Thar coal is lying unexploited due to want of coordinated efforts therefore government should consider establishing a coal ministry to exploit its potential.

The 175 billion tonnes of coal, sixth largest in the world, was discovered 23 years back that could not be put to work so far despite the fact that it can to meet the country’s and neighbouring nationsfuel requirements for centuries, it said.

Pakistan has emerged as one of the leading countries, seventh in the list of top 20 countries of the world after the discovery of huge lignite coal resources which must be exploited, said Farida Rashid, President IWCCI.

Speaking to business community, she said that countries have lesser coal than Pakistan have coal ministries which ensure smooth flow of things.

Different federal and provincial departments, warring over petty matters, have only wasted time and funds to make the situation worst casting a dark shadow on the future of the country, she said.

She noted that despite decades of efforts, Pakistan is yet to claim any success on coal front therefore it should find an alternative solution to find support of other countries.

Farida Rashid said that coal has met nearly half of the rise in global energy demand over the last decade, growing faster even than total renewables while there are 1004 billion tonnes of coal reserves left which is equivalent to 130 years of global output.

Coal use in India continues to rise and by 2025 it will overtake the United States as the world’s second-largest user meaning that it will need to import more coal while Thar coal may be most economical for her.

Currently India imports coal from Indonesia, South Africa and Australia to satisfy annual deficit of 204 million tonnes.

According to World Coal Association, presently India is producing around 585 million tonnes of coal while importing 105 million tonnes and exporting nothing.

Converting captive power plants on coal may settle gas crisis while conversion of state-run power plants can resolve issue of budget deficit.

Pakistan’s economy’s steady drift towards collapse can be averted if a powerful coal ministry or a regulatory authority is established, she said.

Farida termed statement of Minister for Petroleum and Natural Resources Shahid Khaqan Abbasi on Thar coal and Iran gas pipeline project highly encouraging.

Read More

Congestion at ports making imports costly, exports uncompetitive

Govt promoting intra-Saarc trade through liberalisation, connectivity: Micheal

Ferry service between Karachi, Gujarat ports under consideration: Minister

Trade liberalisation to boost economic ties, ensure lasting peace: Malik

Congestion at ports making imports costly, exports uncompetitive

Islamabad: June 23

Federal Minister for Ports and Shipping Senator Kamran Michael on Sunday said government is promoting intra-regional trade through confidence building measures,liberalisation, and improved connectivity.

The strategy will unlock growth potential of the region marred with lowest level of intra-regional trade in the world, he said.

Speaking at a reception jointly organised by Saarc Chamber of Commerce and Friends of Pakistan Forum, Kamran Michael said that only way to bring billions of people out of poverty is enhanced regional trade for which full equipped ports are imperative.

VP Saarc Chamber Iftikhar Ali Malik, Zubair Tufail, VP FPCCI Naveed Jan Baloch, Tariq Haleem, Raheel Khan Bhatti, MNA Pervaiz Malik, MNA Qaisar Shaikh, Senator Haji Adeel, Gen (Retd) Abdul Quyum, DG DTO Jaweed Qureshi, Kunwar Qutbuddin, Iqbal Tabish, Malik Sohail, Farida Rashid, Zafar Bakhtawri, Munawal Mughal and Tariq Sadiq and others were also present on the occasion.

Mr Michael said that around a quarter of the world’s population lives in Saarc but we produce less than two per cent of global GDP due to political conflicts and lack of lack sufficient competencies and capacities.

We need expanding regional production networks, integration into the global economy, foreign direct investment, removal of trade and investment barriers, and heightened demand for which we need to improve infrastructure, he said.

Integration of trade between Pakistan and India has made some progress but remained limited due to trade barriers and insufficient regional cooperation which is now being tackled on a fast pace, he informed.

Mr Michael said that government is seriously considering launching ferry service between ports of Karachi and Gujarat. Ferry service between the two parts of world continued in ancient times, it peaked during British Raj and ended in 1965.

Earlier, Iftikhar Ali Malik apprised the minister of congestion on ports which is hurting the imports and exports and demanded deepening of the ports so that larger cargo shipscan be anchored there.

The container terminals are going to face an acute congestion if no timely expansion in existing facilities or no new terminals are developed to meet annual growth in the traffic of containerised cargo, said former VP FPCCI Zubair Tufail.

Chairman FPPCI Committee on Ports and Shipping Tariq Haleem said the under the present competitive world market, our exports and imports are becoming costly anduncompetitive against the regional countries due to want of better facilities.

The business community demanded to appoint one representative of the private sector on the boards of Port Qasim and other entities working under the Ministry of Ports and Shipping to improve its efficiency and ensure national development. 

Read More

Inaction increasing mistrust among foreign donors

Former IGP KPK embezzled Rs35 mln allocated for peace initiatives

Inaction increasing mistrust among foreign donors

June 23

The Pakistan Economy Watch (PEW) on Sunday said a former Inspector General of Police Khyber Pakhtunkhwa embezzled funds provided by international community to battle terror.

American and Australian government granted Rs 35 million to police for peace initiatives through mediation, reconciliation, alternative dispute resolution and de-radicalization which were wasted, said Dr Murtaza Mughal, President PEW.

He said that third-party independent evaluation ordered by USAID and AUSAID revealed that nothing was done on ground and all documents regarding activities and expanses were bogus.

All the record presented before the auditors was found fabricated which failed the initiative to reduce crimes and disputes in the target areas thus misappropriating the money of American and Australian tax-payers, he said.

Dr Murtaza Mughal said that NGOs involved in the deal were blacklisted while no action could be initiated against the police official who enjoyed full backing of the ANP.

A lot of damage to life and property of masses and security forces could have been averted if the money earmarked for reconciliation was not siphoned off, he said.

Dr Murtaza Mughal said that no action has been initiated against the culprit despite the fact that ANP is no longer in the power which is increasing mistrust among foreign donors.

Read More

FPCCI hosts farewell dinner in honour of outgoing Ambassadors

FPCCI hosts farewell dinner in honour of outgoing Ambassadors

Diplomats should strive for improved economic relations: Zubair Ahmed Malik

Pakistan has resources, skills to become a developed nation soon: Envoys

Islamabad: Dated: June 19

Zubair Ahmed Malik, President FPCCI hosted a farewell dinner in honour of the outgoing Ambassadors and High Commissioners who have completed their term in Pakistan.

Ambassadors, High Commissioners and diplomats of USA, Japan, Denmark, Kenya, India, Italy, Spain, Hungary, Indonesia, Malaysia, Thailand, Philippines, Brazil, Sudan, Nigeria, Algeria, Jordan, Azerbaijan, and other countries were present on the occasion.

Besides, leaders of the business community, politicians, former and serving top government officials and people representing other walks of life were also present at the well-attended gathering.

Speaking on the occasion, Zubair Ahmed Malik said that all the outgoing Ambassadors and High Commissioners have workeddedicatedly to bring Pakistan closer to their respective countries.

Business community acknowledges your devotion and sincere efforts to broaden bilateral ties by creating opportunities for trade and business, he said.

Zubair Ahmed Malik said, “I hope you successors will help improve already cordial relations and work for enhanced economic cooperation while keeping relations with the local business community intact.”

Advocating relationship on sustained upward trajectory, the national business leader said that we should use trade as the engine for enhanced bilateral partnership. Malik praised the diplomats for their dedicated work in helping improved ties.

Speaking on the occasion, Ambassadors and High Commissioners congratulated Pakistan on successful elections and peaceful transition.

The Ambassadors said that Pakistan has all the resources, skills and leadership to become a developed nation soon. They hoped that dynamic people of Pakistan will soon overcome all challenges to bring the country out of the different problems confronting it.

The envoys assured that their countries would continue to cooperate with Pakistan and serve its interests in best possible way. “Ourcountries will continue to strive for broad-based relationship, focusing on people-to-people contact and promoting trade and development,” they pledged.

The said that Pakistan is a beautiful, dynamic and robust country with great potential and its people are friendly as well as hospitable; here we felt at home and learned a lot.

Read More

The debts taken in our name

Why does Pakistan routinely consider IMF-style austerity which decision-makers and well-off don’t suffer? Because, as well known, those with ulterior motives don’t have to repay. Mostly the hapless taxpayers do. Every time another loan is taken, it never eases economic problems. In fact, money doesn’t even change hands. It’s just a ledger entry in Washington of what’s lent by the IMF and immediately ‘returned’ to pay the current year’s usury.

What we should say instead is: “Sorry guys, our people are suffering unbearably. We’ll pay you later when we can.” We’ve paid off the principal anyway, as have dozens of countries, some several times over. If Argentina, Ecuador, even Dubai, can default, why can’t we? A moratorium would be a much-needed, learning exercise.

Why is it, the more our governments borrow on our behalf, the more indebted we get? When leading financial experts including those who’ve worked within the World Bank-IMF system have denounced crippling terms as dubious and unnecessary, why can’t we extricate ourselves? Hundreds of reports documenting IMF methods and consequences over the past four decades are readily available: on structural adjustment hacking social spending – health, education, water, sanitation, literally snatching food from children’s mouths.

A question never asked of our governments or lenders – why are objectives and terms of loans taken in the name of the people, not debated with the people, and so secretive? Even the pro-market Economist of London called it an international loan shark – because the system is rigged to scuttle repayment. Like any money-lender, they just want to collect interest forever.

In 1988, economist Davison Budhoo revealed in his 22-page resignation letter – more of an expose of IMF ‘expertise’ – after his 11 years with it: “When we went on a mission, we did not even have the scope to innovate, to look at the country and make projections, that you thought were reasonable... there was already a briefing paper before we entered the country. We were told what we were expected to do, and give conditionality in terms of what the fiscal deficit was and how much it should be reduced; even before we entered the mission... we were expected to structure our findings in relation to the figures in the briefing paper, which were put there without any research, and were predetermined. So the conditionality was also predetermined... In this sense, every IMF mission is fraudulent even today...”

Usurious earnings also support ostentatious lifestyles. As Budhoo described: “...The salary/allowances package of a median missionary staffer would be in the region of five to ten times the budgeted salary of almost every Third World head of state, and some one thousand times the per capita income of that of two-thirds of mankind that he is paid so handsomely to crush down into further destitution.” It’s easier to be conscience-free yes-men than to resign over principles.

Christine Lagarde, the current head of IMF, draws $400,000 annually, excluding perks. Third World people lose their livelihoods, go hungry, just to shoulder the lifestyles of 9,000 World Bank and 2,500 IMF personnel. As economist Jeffrey Sachs once said: “the Fund’s usual prescription is budgetary belt tightening to countries that are much too poor to own belts”.

Usury was forbidden by all major religions until some invented ways around it. The Muslim governments ignore it for supposed “lack of choice”. If countries can’t pay up, public assets are often sold to do so. Nor do IMF ethics see privatization of natural resources or essential services as human rights violations.

Even investor Warren Buffet calls them “the financial weapons of mass destruction”. So why do we put up with parasitism – or ‘Odious Debt’ as it’s aptly known? Unfortunately, few who understood the system blow the whistle – they were too comfortable in their overpaid lifestyle.

Governments inheriting past debts, when occasionally trying to frame the right policies, find their hands tied because IMF takes first priority before spending for food, jobs, poverty alleviation, and maybe some development. Even 40 years ago, totalThird World debt was $135 billion; it quadrupled in 6 years. In another 12 years, debtors paid $1.6 trillion, and still left with almost as much in new interest-debt! Borrowing repeatedly to pay off interest ensures permanent debt-slavery.

Reduced to penury and fed up, the Latin American countries launched BANCOSUR (Bank of the South), their own development bank, sans dollars and outside interference. Initiated by Hugo Chavez in 2007 after Venezuela fully paid off the WB/IMF debt – thanks to nationalizing and retaking their oil – it will be fully operational this year. Is that possible here regionally? Will the new government focus on strictly enforcing transparency and accountability, without which corruption can’t be eliminated? Or are we doomed by our own leaders collaborating with post-independence colonizers?

By:Najma Sadeque

Putting up with parasitism

Read More

Pakistan beauticians participate in Beauty Eurasia

IWCCI holding two-day lifestyle expo

Pakistan beauticians participate in Beauty Eurasia

Islamabad: June 18

Islamabad Women's Chamber of Commerce and Industry (IWCCI) on Tuesday said it is holding a two-day lifestyle exhibition in Islamabad.

The 20^th lifestyle exhibition will be held on June 21^st and 22^nd at a local hotel in Blue Area, Naima Ansari, Chairperson IWCCI Standing Committee on Fairs and Exhibitions said here while speaking to women entrepreneurs.

Holding up a long standing relationship between businesswomen and IWCCI, we are holding the annual event which has always proved to be an exceptional cultivating ground for small and large companies and entrepreneurs, she said.

Naima Ansari said that women from every nook and corner of the country are taking part in the event which will be a great opportunity for them to market products.

Moreover, the exhibition has always drawn in some popular brands catching the attention of nearly every participant.

One of our aims is to help skilled women who cannot own a shop, to promote their products to retailers, wholesalers and distributors, she said.

She said that the expo will be a great learning, shopping, and entertainment experience and an opportunity for women from different backgrounds to share their work and goals towards a prosperous future.

Samina Fazil, founder president IWCCI said that this will be an opening for women dealing in handmade garments, arts and crafts, home decor, gems and jewellery, furniture, stones and decoration pieces etc.

We will continue efforts to help women attain economic freedom through different empowerment initiatives, she said.

She informed that IWCCI has sent a group of fifteen beauticians to participate in Beauty Eurasia 2013 held in Istanbul, Turkey.

Participation of Pakistani beauticians in expo regarding for beauty products, cosmetics, perfumery, beauty, hair salons, packaging, and wellness was a great experience for them.

Read More