Showing posts with label Sharif. Show all posts
Showing posts with label Sharif. Show all posts

Tuesday, July 17, 2018

"Deep State" AKA "Khalai Makhlooq" vs Trump and Sharif

US President Donald Trump says he is being investigated by the "US Deep State" because he is trying to improve his nation's bilateral relations with Russia.  Pakistan's ex Prime Minister Nawaz Sharif has also made similar allegations of being targeted by "Khalai Makhlooq" (Pakistani Deep State) because of his efforts to make peace with India.  Their narratives are strikingly similar. Sharif and Trump have polarized and divided their nations by asking their political supporters to stand by them and to reject what they describe as a political "witch hunt".

Donald Trump and Nawaz Sharif
Trump vs US Deep State:

In a press conference after meeting with Russian President Vladimir Putin in Helsinki, Mr. Trump said: "We have 90 percent of nuclear power between the two countries. It’s ridiculous. It’s ridiculous what’s going on with the probe".  The probe Mr. Trump is calling "ridiculous" is the result of the consensus reached by US intelligence agencies that Russia meddled in 2016 US presidential election to help Mr. Trump win. President Putin confessed that he favored Trump over Democrat Hillary Clinton.

Trump's supporters have accused "US Deep State" made up of intelligence and security establishment and Democrats of pursuing an anti-Trump agenda to derail efforts to improve US-Russia ties. Trump himself at the Helsinki press conference said: "As president, I cannot make decisions on foreign policy in a futile effort to appease partisan critics or the media or Democrats who want to do nothing but resist and obstruct. Constructive dialogue between the United States and Russia forwards the opportunity to open new pathways toward peace and stability in our world. I would rather take a political risk in pursuit of peace than to risk peace in pursuit of politics. As president, I will always put what is best for America and what is best for the American people".

Sharif vs Khalai Makhlooq:

Nawaz Sharif and his supporters have long accused "Khalai Makhlooq" (Pakistani Deep State) for targeting him because of his efforts to improve ties with India. They reject any criticism of Sharif's eagerness to make friends with Indian Hindu Nationalist Prime Minister while ignoring India's proxy war of terror to destabilize and damage Pakistan.

Sharif's critics say that he is too soft on India's Modi in the same way that Trump's critics accuse him of being too cosy with Russia's Vladimir Putin.  They cite Nawaz Sharif's total silence on the arrest and confessions of Indian intelligence agent Kulbhushan Jadhav in Balochistan. Sharif's silence on this issue is seen as his distrust in his own intelligence agencies.

Sharif and his supporters have bought the Indian narrative that Pakistani establishment is the root cause of all problems between India and Pakistan. It''s similar to the way Trump and his supporters accuse US establishment of being responsible for lack of progress on building better ties with Russia.

Sharm al Shaikh and Ufa Declarations:

In 2009 Sharm al Sheikh meeting between then prime ministers Yousuf Raza Gilani and Manmohan Singh, the joint declaration included the mention of India's involvement in Balochistan along with Kashmir and other issues.

In 2015 when Nawaz Sharif met with Narendra Modi in Ufa, Russia, the joint statement does not mention the the Kashmir issue. Nor did it raise the issue of the 2007 inquiry of the Samjhauta Express blast, the British government’s alleged findings that India was supporting the MQM, and the Pakistan's charge that India is supporting terrorist groups in Pakistan.

The difference between the Sharm al Sheikh and Ufa caught the attention of all in Pakistan and reinforced the perception that Sharif was eager to make any deal with Modi, even a deal that ignored Pakistan's national security interests.  Many Americans have similar views about Trump's eagerness to make a deal with Putin.

Civil-Military Divide:

Indian and Western analysts and media promote the narrative of civil-military divide in Pakistan for lack of progress on India-Pakistan relations. In an article titled "Pakistan’s civil–military imbalance misunderstood", Husain Nadim of the University of Sydney says as follows:

"This absence of nuance in Western academic writing and commentaries on Pakistan is not just a blind spot. It is deliberate neglect whereby the dominant characterization of Pakistan’s civil–military relations is constructed to suit Western political interests that include aligning Pakistan’s national security policies with that of the West, and having a strong check on its nuclear program. Through aiding the civil–military divide in the country, the idea is to push back the mighty role of the Pakistan army from national security and foreign policy in hopes to seeking concession from the civilian political leadership."

On Sharif's eagerness to seek better ties with India, Husain Nadim says that "(Pakistani) military leaders advised caution and small steps to achieving sustainable peace with India — advice which Sharif ignored. After several months of futile attempts to court Indian Prime Minister Narendra Modi, who pressed hard on Pakistan after his rise to power, Sharif faced an embarrassing situation. He accepted that his strategy had been a failure and allowed the military to devise a new strategy to engage India".

Who's at Fault?

In “How India Sees the World: Kautilya to the 21st Century”, the former India Foreign Secretary Shyam Saran recalls the crucial meeting of the CCS (Cabinet Committee on Security) on the eve of India-Pakistan Defense Secretary-level talks in May 2006, where the draft agreement, that had been approved by the Army and other stakeholders, was to be discussed. However, he said two key players, the-then National Security Advisor MK Narayanan and then Army Chief General J.J. Singh made last minute interventions to scuttle the proposal, according to a report in The Hindu newspaper.

“When the CCS meeting was held on the eve of the defense secretary–level talks, [Mr.] Narayanan launched into a bitter offensive against the proposal, saying that Pakistan could not be trusted, that there would be political and public opposition to any such initiative and that India’s military position in the northern sector vis- à-vis both Pakistan and China would be compromised. [Gen] J.J. Singh, who had happily gone along with the proposal in its earlier iterations, now decided to join Narayanan in rubbishing it,” Mr. Saran writes.

“This is when L. K. Advani surprised Musharraf by asking for Dawood Ibrahim. This took Musharraf back and a shadow was cast thereafter on the Agra summit.” “As Mr. Mishra put it: “Yaar, hote-hote reh gaya … Ho gaya tha, who toh.”  Ex Indian Intelligence Chief A.S. Dulat

The above quote is from A.S. Dulat who has served as Chief of India's Research and Analysis Wing (RAW) and as Special Director of India's Intelligence Bureau. He was speaking with Indian Journalist Karan Thapar of India Today on a variety of subjects including Kashmir and Musharraf-Vajpayee Agra summit.

Dulat has essentially confirmed the fact that Indian hawks like the BJP leader L.K. Advani are responsible for sabotaging the India-Pakistan summit.

There have now been multiple revelations by former Indian officials like Shyam Saran and AS Dulat as well as leaked US diplomatic cables detailing the causes of failures to resolve disputes in India-Pakistan talks in the last two decades.  These disclosures thoroughly debunk the myth promoted by Indian security analysts, Indian politicians and some western think tanks blaming Pakistan, particularly the Pakistani military, for the continuing failures to resolve bilateral disputes with India.

Summary:

US President Donald Trump and Pakistan's ex prime minister Nawaz Sharif are both claiming they are victims of  conspiracies by "Deep State" also known as Khalai Makhlooq in their respective countries. Each says that they are being targeted for wanting better relations with the leaders of their arch rivals in Russia and India. Their narratives are strikingly similar. Sharif and Trump have polarized and divided their own nations by asking the voters to stand by them and to reject what they describe as a political "witch hunt". Their critics argue that both leaders are too eager to make any deals with the enemies, even deals that do not take into account their countries best interests.

Here's a video clip of BBC Hardtalk's host Stephen Sackur challenging Pakistan Dawn Media Group's CEO Hameed Haroon to show evidence of Pakistani "Deep State" interference in the upcoming elections:

https://youtu.be/JQbt2QlVbwI



Related Links:

Haq's Musings

South Asia Investor Review

Sharif's and Trump's Strikingly Similar Narratives

Indian Agent Kulbhushan Jhadav's Arrest in Balochistan

MQM-RAW Link

A.S. Dulat and Shyam Saran on India-Pakistan Ties

America's "We're the Good Guys" Narrative

The Story of Pakistan's M8 Motorway

Pakistan-China-Russia vs India-Japan-US

Riaz Haq's Youtube Channel


Saturday, May 26, 2018

India-Pakistan Spy Chronicles; Trump-Sharif Troubles

What are Asad Durrani and AS Dulat, ex spooks of India and Pakistan, trying to accomplish with their joint appearances and book collaboration? What is “Spy Chronicles: RAW, ISI and the Illusion of Peace" all about? What have the two revealed about the work of ISI and RAW spy agencies with Kashmiri insurgents? Has the Modi government lost control of the situation in Kashmir? Why does Durrani say that all Pakistan has to do now in Kashmir is "sit back and watch"? Why have both spy agencies been bribing the militants to buy influence? Is "corrupting someone with money more ethical than killing them" as AS Dulat has put it? Is Dulat's optimism about solution to Kashmir issue justified?

Why are both Nawaz Sharif and Donald Trump attacking the "deep state" or "establishment" in their respective countries? Why are they both spinning conspiracy theories? Is it to deflect public attention from the serious allegations against them? How serious are the problems of Russia collusion in the US case and money laundering in Pakistan's case? Are they succeeding in their efforts? Are their defense strategies causing major harm to the national cohesion in Pakistan and US? How will it all end?

Viewpoint From Overseas host Faraz Darvesh discusses these questions with panelists Misbah Azam and Riaz Haq (www.riazhaq.com)

https://youtu.be/5qfDYZgEX8U




Related Links:

Haq's Musings

South Asia Investor Review

Ex Indian Spy Documents RAW's Successes Against Pakistan

Mohanalal Bhaskar: An Indian Spy in Pakistan

Sharif's and Trump's Strikingly Similar Narratives

Who's at Fault for Failure to Resolve Disputes: India or Pakistan?

700,000 Indian Soldiers vs 10 Million Kashmiris

UK Says Pakistan Among Top 3 Money Laundering Sources

Riaz Haq's Youtube Channel


Friday, May 25, 2018

Sharif's and Trump's Strikingly Similar Narratives

President of the United States Donald John Trump and Pakistan's former prime minister Mian Mohammad Nawaz Sharif are both under investigation by law enforcement agencies in their respective countries. Both men allege that they are victims of conspiracies against them by the "Criminal Deep State", better known as "the establishment" in Pakistan. The two men have accused the investigators, prosecutors and the judges of being biased against them. Their narratives are strikingly similar. Sharif and Trump have polarized and divided their nations by asking the voters to stand by them and to reject what they describe as a political "witch hunt". Both have succeeded in maintaining the support of the vast majority of their party legislators so far.

Donald Trump and Nawaz Sharif
Attacking Investigators:

Donald Trump has denounced the FBI teams working for Special Counsel Robert Mueller on Russia Collusion as "partisan Democrats". He has demanded that the FBI be investigated for "spying" on his 2016 presidential campaign. He has called the entire investigation a "witch hunt" by "criminal deep state" actors in the law enforcement and intelligence communities. He has described the FBI raid of his lawyer Michael Cohen's office as a "break-in".

Trump's Republican supporters in the House of Representatives of US Congress have made an unprecedented demand to see documents related to the FBI investigation of the President.

Like Trump, former Prime Minister Nawaz Sharif too has attacked the JIT (Joint Investigative Team) set up the Pakistan Supreme Court as being biased against him. Like Trump, Sharif has denounced the entire process of money laundering investigation against him as a "conspiracy" by the "establishment" (Deep State).

Nawaz Sharif's PMLN supporters have so far stood with their leader.

Distrust in Judiciary:

President Trump has repeatedly and viciously attacked judges who have issued orders unfavorable to him. Even before he was elected, candidate Trump accused a US-born judge with a Mexican last name of being biased him because  "he is Mexican and I'm building a wall".

Like Trump, Nawaz Sharif has accused his country's Supreme Court judges of acting against him on behalf of the "establishment" (the Deep State).

Politicizing Legal Processes: 

Both Trump and Sharif have used the legal accountability they face to rally political support for themselves. By arguing that they both face political witch hunt for their policies and not their alleged conduct, they have fired up their supporters and polarized their nations.  Both have delegitimized the institutions of law and justice in their attempts to beat the law enforcement agencies and the justice system in their respective countries.

Attempts by Trump's and Sharif to politicize legal proceedings against them are causing deep divisions in both the United States and Pakistan. These divisions don't augur well for the countries and the future of their institutions. They pose a threat to law and order and national security.

Lying to Law Enforcement:

While the right to remain silent is guaranteed under the 5th amendment of the US constitution, lying to law enforcement officials is a felony that triggers charges of obstruction of justice. These charges can potentially result in serious jail time. While state laws may vary across jurisdictions, obstructing a federal investigation is a felony with a potential five year prison sentence. Some of Trump's aides, including his former national security advisor General Michael Flynn, have already pleaded guilty to lying to the FBI and obstruction of justice charges.  Trump's  team is trying to avoid the obstruction of justice charges against the President.

Similarly, there are Articles 62 and 63 of the Pakistan constitution that require that the public office holders be honest. While one may question the specific meanings of the words "sadiq" and "ameen" written in the constitution,  it is ridiculous to argue that deliberate lying by the highest officials of the country go unpunished.  In answers to questions by law enforcement regarding the sources of funds for buying London properties owned by the Sharif family, Mr. Sharif's multiple different conflicting explanations to the parliament, law enforcement and the people constitute a  big white lie.

Foreign Residency (Iqama):

Mr. Nawaz Sharif says he has been disqualified by the Supreme Court for Iqama (foreign residency), not Panama (money laundering). What he doesn't acknowledge is that Iqma facilitates Panama. Nor does he fully explain the source of funds used by his children to buy properties in London at the time they were too young to have their own legitimate incomes to afford to buy the properties.

Assets held by people in offshore tax havens are tracked by their country of residence, not by their citizenship, under OECD sponsored Agreement On Exchange of Information on Tax Matters. Pakistan is a signatory of this international agreement.  When Pakistan seeks information from another country under this agreement,  the nation's FBR gets only the information on asset holders who have declared Pakistan as their country of residence. Information on those Pakistanis who claim residency (iqama) in another country is not shared with Pakistani government. This loophole allows many Pakistani asset holders with iqamas in other countries to hide their assets. Many of Pakistan's top politicians, bureaucrats and businessmen hold residency visas in the Middle East, Europe and North America.

Money Laundering:

Money laundering is a very serious problem resulting in the illicit outflow of trillions of dollars from the poor to the rich countries, according to data compiled by Washington-based Global Financial Integrity.   Bloomberg has reported that Pakistanis alone own as much as $150 billion worth of undeclared assets offshore.

There's a direct relationship between investment and GDP. Flight of capital reduces domestic investment and depresses economic growth in poor countries. Lower tax revenues also impact spending on education, health care and infrastructure, resulting in poor socioeconomic indicators.

A recent report by the British National Crime Agency (NCA) has identified Pakistan as one of the top three source countries for money laundering to the United Kingdom where Nawaz Sharif's family owns expensive real estate. Both the UK NCA report and Panama papers show that the politicians and their family members are the biggest culprits in money laundering.

President vs Prime Minister:

Presidents as heads of state in most countries avoid prosecution while in office. Prime Ministers as heads of government do not enjoy the same immunity.

The US president is both the head of state and the head of government. There is no precedent of any US president being indicted while in office. The closest that a prosecutor ever came to indicting a president was in 1974 when President Richard Nixon was named an "un-indicted co-conspirator" in Watergate.  President Nixon resigned when he saw that the US Congress was ready to impeach him. Later, President Gerald Ford pardoned President Nixon, sparing him the humiliation of indictment and-or conviction.

In Pakistan, the President does enjoy immunity from prosecution while in office. The Prime Minister does not.

Summary:

Faced with serious charges against them, US President Donald Trump and Pakistan's ex premier Nawaz Sharif are attacking investigators, prosectors and judges in their respective countries. Both are politicizing the legal processes and delegitimizing institutions of democracy in the United States and Pakistan. Their narratives are strikingly similar. They are  polarizing their people and dividing their societies.  These divisions don't augur well for the countries and their institutions.

Here's a discussion on the subject:

https://youtu.be/5qfDYZgEX8U




Related Links:

Haq's Musings

South Asia Investor Review

UK Names Pakistan Among Top Sources of Money Laundering

Did Musharraf Steal Pakistani People's Money?

Pakistan Economy Hobbled By Underinvestment

Raymond Baker on Corruption in Pakistan

Nawaz Sharif Disqualified

Culture of Corruption in Pakistan

US Investigating Microsoft Bribery in Pakistan

Zardari's Corruption Probe in Switzerland

Politics of Patronage in Pakistan


Sunday, July 30, 2017

Nawaz Sharif's Disqualification; Indian Defense Industry; White House Chaos

Why did Pakistan Supreme Court's 5 judge panel unanimously vote to disqualify Prime Minister Nawaz Sharif from holding elected office after Panama Leaks JIT? What was the basis for it? Can it be compared with the conviction of Chicago gangster Al Capone who was convicted for lesser charges of tax evasion, not multiple murders? Are those crying "conspiracy" right? Was the apex court influenced by the military? What is next for Pakistan? Will this decision help reduce corruption in high places? Will democracy be weakened or strengthened by continuing accountability of politicians, generals and bureaucrats?
Politicians Dominate Names of Offshore Company Owners in Panama Papers 


Why did the Indian Army's vice chief say "Pakistan probably has better defense industrial base"? Is it out of frustration with the performance of India's defense industry? How's Prime Minister Modi's "Make In India" initiative doing since 2014 when it was launched with a lot of fanfare? Has India's dependence grown or shrink since then? Why is the White House in such chaos? Who's responsible for it?

President Donald Trump? His top aides? His outgoing chief of staff Reince Priebus? or his newly hired communications director Anthony Scaramucci? Will General Kelly as the new chief of staff bring an end to the infighting and restore order in the White House?

Viewpoint From Overseas host Misbah Azam discusses these questions with panelists Ali Hasan Cemendtaur and Riaz Haq (www.riazhaq.com)

https://youtu.be/ITFGYgjMPuY





Related Links:

Haq's Musings

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Trump's White House

Talk4Pak Youtube Channel

Sunday, July 16, 2017

India Cattle Slaughter Ban; Panama JIT Report; Trump Russia Collusion

Why did the Modi government ban cattle slaughter across India? Why did the Indian Supreme Court block it nationally? Was Modi government targeting India's Muslim minority that depends on the $16 billion meat and leather industry? Are such steps consistent with the constitution of a "secular democracy"?

Sharif Family Being Investigated by Panama JIT
How historic is Pakistan's corruption investigation into the allegations against a sitting prime minister and his family? What is in the JIT report about country's ruling Sharif family? Is it hard evidence of Sharifs' corruption as its supporters believe? Or is it just rumors and innuendo and part of a conspiracy to unseat Prime Minister Sharif? How will Pakistan Supreme Court deal with it? Will it lead to disqualification and removal of Prime Minister Sharif from office? How will it affect Pakistan's political stability and economy?

What was the Trump tower meeting of June 9 2016 meeting about? Was Donald Trump Jr attempting to collude with the Russian government as alleged to defeat Democratic candidate Hillary Clinton? Is this illegal or improper? How will it affect the ongoing Congressional and Special Counsel investigations into Trump Campaign's alleged collusion with Russia?

Viewpoint From Overseas host Faraz Darvesh discusses these questions with Misbah Azam and Riaz Haq (www.riazhaq.com).

https://youtu.be/ghqG7gHEOBg



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Saturday, July 8, 2017

Modi in Israel and G20; North Korean ICBM; Panama JIT

What were the objectives of Indian Prime Minister Narendra Modi's recent visits to US, Israel and his attendance of G20 summit in Hamburg, Germany? Is it all about India's quest for more and better weapons from the US and Israel to "bolster Indian military against arch-rival Pakistan" as CNN reported it? Is it part of his campaign to slander and isolate Pakistan? Why is Modi so obsessed with Pakistan? Is it his Hindu Nationalist mindset that drives his Islamophobia and Pakistan phobia?

What is the significance of North Korea's ICBM test demonstrating Kim Jong Un's potential ability to hit US mainland? Is the Korean peninsula the most dangerous flashpoint in the world today? Is this where the United States and China are destined war that Harvard professor and author Graham Allison has written about in his book "Destined For War"?

Why are the PMLN leaders, including Prime Minister Nawaz Sharif, fiercely attacking the Joint Investigation Team (JIT) appointed by the Pakistan Supreme Court to investigate allegations of corruption against the ruling Sharif family? Are the JIT proceedings going badly for them? Is there a conspiracy against the PMLN party as they claim? If so, who are the conspirators? the judiciary? the military? the ISI? Are the PMLN leaders preparing the ground to claim victimhood for political advantage in the next elections?

Viewpoint From Overseas host Faraz Darvesh discusses these questions with Misbah Azam and Riaz Haq (www.riazhaq.com)


https://youtu.be/7j9XsD_i3oE





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Sunday, June 4, 2017

Trump's Paris Accord Pullout; India's Slowing Economy; Kabul Blast; Panama JIT

Why did President Trump pull the United States out of the Paris Climate Deal? How will this impact the United States and the world? Can US still lead on matters related to energy? Will China and Europe pick up the mantle of world leadership on climate change and clean energy? Will US growing isolation cost American jobs?

Why has India's GDP growth slowed to 6.1% in Jan-March 2017 from 7.1% earlier? Is it the result of demonetization? Why has bank credit growth declined to just 5%, the slowest in 60 years? Is the growth in non-performing loans taking a toll on new lending by ailing public sector banks? How will it affect job growth in India?

Who is responsible for the massive Kabul blast that caused tragic loss of 100 lives? Did the Haqqanis do it? Why is the Afghan intelligence blaming it on Pakistan? How will the United States deal with the deteriorating situation after 16 years of war in Afghanistan? Will the Taliban accept talking with the Afghan and US representatives?

Does PMLN Senator Nihal Hashmi's scathing attack on judiciary and bureaucracy reflect the inner thinking within the Sharif family and the PMLN leadership? Is it an attempt to intimidate the judges and the bureaucrats involved investigating corruption allegations against Prime Minister Nawaz Sharif and his family members? Are they having a hard time dealing with accountability as never seen before by a ruling party in Pakistan?

Viewpoint From Overseas host Faraz Darvesh discusses these questions with Ali H. Cemendtaur and Riaz Haq (www.riazhaq.com)

https://youtu.be/jMkseal7jgg





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Sunday, November 22, 2015

West’s Reaction to Paris Attacks; Gen Raheel Sharif in US; Modi’s World Tour

Will West’s reaction to Paris attacks weaken or strengthen ISIS and other Middle East terror groups? Should Muslim refugees coming to Europe and US be punished for such attacks? Will it make the Syrian refugee crisis much worse? How will further alienation of already marginalized Muslims in France affect security in Europe?


Why is General Raheel Sharif in Washington? Do such visits weaken Prime Minister Nawaz Sharif’s government? Are there any implications for the future civil-military ties in Pakistan?

What does the Badin sweep of Zulfiqar Mirza’s anti-PPP candidates in local elections mean for Sindh politics? Is it a reflection of the power of local feudal electoral politics in Pakistan?

Why has Narendra Modi chosen to focus on foreign relations with 30 foreign visits in just over a year since he became Prime Minister of India? Is it all about photo ops and PR to project himself as a world leader? Can India really become a significant global power with its poorly educated and unhealthy labor force? Shouldn’t Modi pay more attention to India’s serious social, economic and development issues at home?

Viewpoint From Overseas host Misbah Azam discusses these questions with Ali H. Cemendtaur and Riaz Haq (www.riazhaq.com)

https://vimeo.com/146561295



West's Reaction to Paris Attacks; Gen Raheel Sharif in US; Modi's World Tour from WBT 
Productions on Vimeo.

http://dai.ly/x3f6k54



West's Reaction to Paris Attacks; Gen Raheel... by ViewpointFromOverseas
https://youtu.be/dhzuj3g0Zqc





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Friday, October 23, 2015

US Reaffirms Ties With Pakistan; Obama Pledges Continuing Support

All the speculations about the United States walking away from Pakistan this year have been proved wrong by the joint statement issued by the White House after this week's summit meeting between Pakistani Prime Minister Nawaz Sharif and US President Barack Obama in Washington D.C.

US-Pakistan Joint Statement:

The US-Pakistan joint statement reaffirmed "enduring U.S.-Pakistan partnership" for "a prosperous Pakistan, and a more stable region."  It commits the two sides to work "jointly toward strengthening strategic stability in South Asia".  The statement further said that "President Obama expressed support for Pakistan’s efforts to secure funding for Diamer­ Bhasha and Dasu dams to help meet Pakistan’s energy and water needs."

Referring to the strained India-Pakistan ties, the statement said that both leaders "emphasized the importance of a sustained and resilient dialogue process between the two neighbors aimed at resolving all outstanding territorial and other disputes, including Kashmir, through peaceful means and working together to address mutual concerns of India and Pakistan regarding terrorism".

US Assistance to Pakistan:

There are also media reports indicating that President Obama has decided to sell 8 new F-16s to Pakistan.  Mr. Obama has also pledged $900 million in assistance to Pakistan for 2015-16. In addition, both Washington Post and New York Times have reported that the United States wants to negotiate a civil nuclear deal with Pakistan. Pakistan has said it will not accept any conditions that limit its nuclear weapons program in exchange for a civil nuclear deal with the United States.

India's Strong Negative Reaction:

As expected, India has reacted with anger to references to US support for strategic stability in South Asia region, support for Diamer Bhasha dam financing and resolution of Kashmir issue through peaceful means. The reports of F-16 sale to Pakistan and possible US-Pakistan civil nuclear deal have also elicited a strong negative reaction in New Delhi.

The US-Pakistan joint statement and several White House fact sheets have detailed US-Pakistan cooperation in education, energy, trade and investment, defense, cybersecurity and counter terrorism.

US-Pakistan Partnerships:

Under the U.S.-Pakistan Clean Energy Partnership, the United States said it "will work with the Government of Pakistan to advance energy sector reforms, improve the investment framework, and make targeted investments that will enable U.S., Pakistani, and international private sector developers to add at least 3,000 megawatts (MW) of clean power generation infrastructure to Pakistan’s national electricity system, benefitting 30 million Pakistanis".

Under the Education partnership, the United States, through the U.S. Agency for International Development (USAID), committed $70 million to work jointly with the Government of Pakistan and other partners to help educate and empower more than 200,000 additional adolescent girls across Pakistan.

The United States is already funding three centers for advanced studies for agriculture, energy and water under the education partnership. The Center For Advanced Studies in Agriculture is at the University of Agriculture in Faisalabad, the Center For Advanced Studies in energy at Peshawar University and the Center For Advance Studies in water at  Mehran University. These centers are working with major US universities.

Under Trade and Investment Partnership,  the United States will help upgrade the capabilities of the ready-made garments (RMG) sector through support of vocational centers dedicated to RMG and improvements in industry labor conditions. U.S. assistance will also help scale-up Pakistan’s International Labor Organization (ILO)-International Labor Standards (ILS) Textile program and support the launch of an ILO “Better Work Program.” Also, the United States will support an investment event in New York to highlight opportunities in Pakistan’s RMG industry and other sectors.  The Office of the U.S. Trade Representative will assist the Government of Pakistan in identifying and petitioning for additional GSP tariff lines and to obtain eligibility for exports of goods under newly GSP-eligible travel goods tariff lines.

Summary:

The latest Obama-Sharif Summit in Washington has cleared up any confusion that may have been created by the continuing US troop withdrawal from Afghanistan and the expiration of Kerry-Lugar Bill. The US-Pakistan joint statement has firmly established continuing US interest in maintaining close ties with Pakistan.   Pakistan's strategic location makes it attractive to both the United States and China, the world's two largest economic and military powers, to maintain close ties with it. What comes out of these ties will ultimately be determined by how well the Pakistani leaders leverage them for maximum benefit for the well-being of the people of Pakistan.

Related Links:

Haq's Musings

US-Pakistan Civil Nuclear Deal

China-Pakistan Industrial Corridor

How Strategic Are China-Pakistan Ties? 

India's Proxy War Against Pakistan

Pakistan Economic Recovery: Car Sales Jump 72%, Cement Sales Up 17%

Renewable Power in Pakistan

Floods and Drought Cycles in Pakistan

Sunday, October 11, 2015

NA-122 Poll Significance; Ghulam Ali's Indian Concert; US-Pakistan Civil Nuclear Deal

Why is the Lahore NA-122 By-Election Significant? Why is it so hard fought?

How will the forced cancellation of Ghulam Ali's Mumbai concert affect India-Pakistan cultural ties?
Will it spill over into all people-people contact between the two countries? How is Indian media's intense anti-Pakistan propaganda hurting the entire region?

What are the chances of US-Pakistan civil nuclear deal? Why are Washington think tanks and US mainstream media talking about it ahead of Obama-Sharif summit scheduled for late October 2015?

Viewpoint From Overseas host Misbah Azam discusses these questions with panelists Ali Hasan Cemendtaur and Riaz Haq (www.riazhaq.com).

http://www.dailymotion.com/video/x39adcl_na-122-poll-significance-ghulam-ali-s-indian-concert-us-pakistan-civil-nuclear-deal_news



NA-122 Poll Significance; Ghulam Ali's Indian... by ViewpointFromOverseas

https://youtu.be/YD25bAMc-Jo





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Monday, June 2, 2014

Pakistan GDP Grew Just 4.1% in 2013-14: Is it Another Lost Decade?

Meager 4.1% GDP growth reported by Pakistan for 2013-14 caps sixth consecutive year of disappointing economic performance under "democratic" governments in the country. This slow growth brings back bitter memories of the last lost decade of 1990s when economic growth plummeted to between 3% and 4%, poverty rose to 33%, inflation was in double digits and the foreign debt mounted to nearly the entire GDP of Pakistan as the governments of Benazir Bhutto (PPP) and Nawaz Sharif (PMLN) played musical chairs.

Pakistan GDP Growth Rates Since 1993. Source: World Bank



Economy in 1990s:

Before the current Prime Minister Nawaz Sharif was ousted by General Pervez Musharraf  in 1999, Pakistan's two main political parties had presided over a decade of corruption and mismanagement. In 1999 Pakistan’s economy was the slowest in South Asia while its total public debt as percentage of GDP was the highest in the region– 99.3 percent of its GDP and 629 percent of its revenue receipts, compared to Sri Lanka (91.1% and 528.3% respectively in 1998) and India (47.2% and 384.9% respectively in 1998). Internal Debt of Pakistan in 1999 was 45.6 per cent of GDP and 289.1 per cent of its revenue receipts, as compared to Sri Lanka (45.7% and 264.8% respectively in 1998) and India (44.0% and 358.4% respectively in 1998).

Musharraf Era:

Under President Musharraf's leadership, Pakistan became one of the four fastest growing economies in the Asian region during 2000-07 with its growth averaging over 6 per cent per year for most of this period. As a result of strong economic growth, Pakistan succeeded in reducing poverty by one-half, creating almost 13 million jobs, halving the country's debt burden, raising foreign exchange reserves to a comfortable position and propping the country's exchange rate, restoring investors' confidence and most importantly, taking Pakistan out of the IMF Program.

The above facts were acknowledged by the PPP government in a Memorandum of Economic and Financial Policies (MEFP) for 2008/09-2009/10, while signing agreement with the IMF on November 20, 2008. The document clearly (but grudgingly) acknowledged that "Pakistan's economy witnessed a major economic transformation in the last decade. The country's real GDP increased from $60 billion to $170 billion, with per capita income rising from under $500 to over $1000 during 2000-07" elevating Pakistan from low-income to middle-income country.



IMF MOU of 2008 further acknowledged that Pakistan's "volume of international trade increased from $20 billion to nearly $60 billion. The improved macroeconomic performance enabled Pakistan to re-enter the international capital markets in the mid-2000s. Large capital inflows financed the current account deficit and contributed to an increase in gross official reserves to $14.3 billion at end-June 2007. Buoyant output growth, low inflation, and the government's social policies contributed to a reduction in poverty and improvement in many social indicators". (see MEFP, November 20, 2008, Para 1)



Pakistan experienced rapid economic and human capital growth in years 2000 to 2008 on President Pervez Musharraf's watch. Savings, investments and exports hit new records and the rate of increase in human development reached new highs not seen before or since this period.

Exports as Percentage of GDP in South Asia. Source: World Bank

Savings and Investments:

Domestic savings rate reached 18% of the GDP and foreign direct investment (FDI) hit a record level of $5.4 billion in 2007-8. This combination of domestic and foreign investments nearly tripled the size of the economy from $60 billion in 1999 to $170 billion in 2007, according to IMF. Exports nearly tripled from about $7 billion in 1999-2000 to $22 billion in 2007-2008, adding millions of more jobs. Pakistan was lifted from a poor, low-income country with per capita income of just $500 in 1999 to a middle-income country with per capita income exceeding $1000 in 2007.

Pakistan Per Capita Income 1960-2012. Source: World Bank 


The PPP government summed up General Musharraf's accomplishments well when it signed a 2008 Memorandum of Understanding with the International Monetary Fund which said:

"Pakistan's economy witnessed a major economic transformation in the last decade. The country's real GDP increased from $60 billion to $170 billion, with per capita income rising from under $500 to over $1000 during 2000-07" to elevate Pakistan from low-income to middle-income group. It further acknowledged that "the volume of international trade increased from $20 billion to nearly $60 billion. The improved macroeconomic performance enabled Pakistan to re-enter the international capital markets in the mid-2000s. Large capital inflows financed the current account deficit and contributed to an increase in gross official reserves to $14.3 billion at end-June 2007. Buoyant output growth, low inflation, and the government's social policies contributed to a reduction in poverty and improvement in many social indicators". (see MEFP, November 20, 2008, Para 1)

Human Capital Development: 

In addition to the economic revival, Musharraf focused on social sector as well. Pakistan's HDI grew an average rate of 2.7% per year under President Musharraf from 2000 to 2007, and then its pace slowed to 0.7% per year in 2008 to 2012 under elected politicians, according to the 2013 Human Development Report titled “The Rise of the South: Human Progress in a Diverse World”.



Overall, Pakistan's human development score rose by 18.9% during Musharraf years and increased just 3.4% under elected leadership since 2008. The news on the human development front got even worse in the last three years, with HDI growth slowing down as low as 0.59% — a paltry average annual increase of under 0.20 per cent. Going further back to the  decade of 1990s when the civilian leadership of the country alternated between PML (N) and PPP,  the increase in Pakistan's HDI was 9.3% from 1990 to 2000, less than half of the HDI gain of 18.9% on Musharraf's watch from 2000 to 2007.

R&D Spending Jumped 7-fold as % of GDP 1999-2007 Source: World Bank

Acceleration of HDI growth during Musharraf years was not an accident.  Not only did Musharraf's policies attracted significant new domestic and foreign investments to accelerate economic growth, they also helped create 13 million new jobs, cut poverty in half and halved the country's total debt burden in the period from 2000 to 2007, his government also ensured significant investment and focus on education and health care. The annual budget for higher education increased from only Rs 500 million in 2000 to Rs 28 billion in 2008, to lay the foundations of the development of a strong knowledge economy, according to former education minister Dr. Ata ur Rehman.

Student enrollment in universities increased from 270,000 to 900,000 and the number of universities and degree awarding institutions increased from 57 in 2000 to 137 by 2008. Government R&D spending jumped from 0.1% of GDP in 1999 to 0.7% of GDP in 2007. In 2011, a Pakistani government commission on education found that public funding for education has been cut from 2.5% of GDP in 2007 to just 1.5% - less than the annual subsidy given to the various PSUs including Pakistan Steel and PIA, both of which  continue to sustain huge losses due to patronage-based hiring.

To see a discussion of the above subject and the current situation, please watch the following video:

http://vimeo.com/84504051



Civil-military Stand-Off on Musharraf Trial; Musharraf Govt's Performance Record from WBT TV on Vimeo.

Related Links:

Haq's Musings

Musharraf Earned Legitimacy By Good Governance

Musharraf Wants to Face Trial; Military Opposed to it

Saving Pakistan's Education

Political Patronage Trumps Public Policy in Pakistan

Dr. Ata-ur-Rehman Defends Pakistan's Higher Education Reforms

Twelve Years Since Musharraf's Coup

Musharraf's Legacy

Pakistan's Economic Performance 2008-2010

Role of Politics in Pakistan Economy

India and Pakistan Compared in 2011

Musharraf's Coup Revived Pakistan's Economy

What If Musharraf Had Said No?

Human Development in Musharraf Years



Thursday, August 21, 2008

Sharif Emerges as Pakistan's Power Broker


Less than nine years ago, Mr. Nawaz Sharif, the two-time prime minister of Pakistan, was overthrown, jailed and then forced into exile by General Musharraf. Now, he is emerging as the ultimate come-back kid of Pakistani politics. Recent polls indicate he is the most popular politician in Pakistan. His party, the PML(N) has emerged as the second largest force in Pakistan's parliament in February elections held under President Musharraf. His brother rules Punjab, the largest province in Pakistan, and Sharif has forced Asif Zardari to join him in removing Musharraf, his personal nemesis, under the threat of impeachment.

Who is Nawaz Sharif? What is his past? What does he want? These questions are gaining great relevance with the rising popularity and increasing clout of Nawaz Sharif. A recent Wall Street Journal interview and story shed some light on Mr. Sharif.


Here are some excerpts from the Wall Street Journal report today:

Mr. Sharif hails from a family of industrialists. At his heavily guarded home on the outskirts of Lahore, his wealth and power are both on display. Peacocks stroll on neatly trimmed grass and statues of a doe and her fawn mark an entrance where security guards wearing black T-shirts and carrying automatic weapons await visitors. Just outside Mr. Sharif's cavernous dining room are two stuffed African lions that appear to be stalking prey. "From Botswana," Mr. Sharif said. "Male lions."

In an interview at his home Wednesday, Mr. Sharif said he is prepared to withdraw his Pakistan Muslim League (N) from the governing coalition, led by the Pakistan People's Party, if about 60 judges -- sacked during a six-week state of emergency declared in November -- aren't given their jobs back immediately. Mr. Sharif added, "Mr. Musharraf threw the judges out of office. He ridiculed the institution," he said. "If this institution is not restored, it will shake the foundations of this country."

In answer to a question on business, Mr. Sharif said, "The privatization program started from our government. We should open up further. I'd like to privatize everything. This is the key to success. The government shouldn't be in the business of running factories".

Answering another question, Mr. Sharif said, "The coalition of the PPP and our party came into being on the basis that democracy would be strengthened and judges restored. And of course, we would restore the constitution as it stood before Mr. Musharraf overthrew an elected government, my government. The reinstatement of the judges hasn't come through."

Is Mr. Sharif a really changed man? Has he learned from his past mistakes? Has he had a real epiphany? Let's see how one can square the new persona of Mr. Sharif with the following realities from his past two stints as prime minister:

In June 1994 when Nawaz Sharif was the prime minister, Pakistan faced its worst-ever constitutional crisis when a pro-Sharif mob stormed into the supreme court, forcing Chief Justice Sajjad Ali Shah to adjourn the contempt of court hearing against Sharif. Hundreds of Pakistan Muslim League supporters and members of its youth wing, the Muslim Students Front (MSF), broke the police barricade around the courthouse when defense attorney Mr. S.M. Zafar was arguing his case.

A journalist ran into the courtroom and warned the bench of an impending attack. Heeding the warning, the chief justice got up abruptly, thanked Zafar and adjourned the hearing. While judicial members left the courtroom soon after, the mob ran in shouting anti-Supreme Court slogans, and damaging furniture.

The angry mob, led by ruling party member from Punjab Sardar Naseem and Colonel (retired) Mushtaq Tahir Kheli, Sharif's political secretary, shouted slogans against the chief justice. The mob also beat up Pakistan Peoples Party senator Iqbal Haider. The police managed to restore normalcy after baton charging and teargassing the mob, both inside and outside the courthouse. The court which assembled at 9:45 a.m., could continue the proceedings for only about 45 minutes.


According to media reports in 1998, Nawaz Sharif, after taking over as prime minister for the second time, amended Pakistan's constitution twice to consolidate his power. He attempted to transform the constitution and system of government completely by attempting to get unlimited powers of Amir ul Momineen (the chief of the faithful) by means of the Sharia Bill, which he introduced.

In April 2001, Ayaz Amir, a popular newspaper columnist and now a PML(N) MNA, wrote as follows about the Sharif brothers: The Sharifs’ notions of government were intensely private: which is to say, have your own man at every key post. They began with commissioners and police DIGs, the dregs of both services pandering to their whims and enriching themselves in the process. Major Mushtaq of the Police Service who has finally been caught by NAB for becoming a real estate tycoon while in service was an outstanding example of this breed: doing as he was told and becoming an impressive man of property along the way. But when Nawaz Sharif became Prime Minister the second time round the family’s sights were set higher. They had whiz-kid younger brother running Punjab. They had their own man in the presidency. After Sajjad Ali Shah’s arranged departure from the Supreme Court, they thought they had the apex court lined up in their favor. In the person of Justice Qayyum at the Lahore High Court they had the closest thing they could get to a personal judge. Division of family assets, balancing of huge bank loans against dummy collateral, tightening the noose around Asif Zardari and Benazir: the only judge who could handle these sensitive matters was Justice Qayyum.

In 1999, when Nawaz Sharif was prime minister, Pakistani economy was in shambles. Pakistan’s total debt as percentage of GDP was the highest in South Asia – 99.3 percent of its GDP and 629 percent of its revenue receipts, compared to Sri Lanka (91.1% & 528.3% respectively in 1998) and India (47.2% & 384.9% respectively in 1998). Internal Debt of Pakistan in 1999 was 45.6 per cent of GDP and 289.1 per cent of its revenue receipts, as compared to Sri Lanka (45.7% & 264.8% respectively in 1998) and India (44.0% & 358.4% respectively in 1998). The Economist recently noted that the current macroeconomic disarray will be familiar to the coalition government led by the Pakistan People's Party of Asif Zardari, and to Nawaz Sharif, whose party provides it “outside support”. Before Mr Sharif was ousted in 1999, the two parties had presided over a decade of corruption and mismanagement. But since then, as the IMF remarked in a report in January, there has been a transformation. Pakistan attracted over $5 billion in foreign direct investment in the 2006-07 fiscal year, ten times the figure of 2000-01. The government's debt fell from 68% of GDP in 2003-04 to less than 55% in 2006-07, and its foreign-exchange reserves reached $16.4 billion as recently as in October."

Like his coalition partner Asif Zardari, Nawaz Sharif has also been the subject of corruption allegations. He is accused of abuse of power and amassing personal wealth at Pakistan's expense, and leaving the country bankrupt in 1999. There are lingering questions of where and how Mr. Sharif got the money to pay off the $450m judgment as rendered by a British court against him in 1998, in connection with Hudaibia Paper Mills Ltd.

Let me conclude with some questions and a sincere hope: Is the transformation of Nawaz Sharif genuine? Or, are we seeing just another two-faced politician vying for more power and popularity? Sometimes, people do change profoundly. I sincerely hope, for the sake of Pakistan's future, that the metamorphosis of Nawaz Sharif is positive and genuine. I also hope that Asif Zardari , the other major power broker in Pakistan, has gone through similar transformation to enable genuine democracy to take roots in Pakistan.

Friday, May 30, 2008

"Economic Meltdown" in Pakistan

Modern economies and markets are largely driven by business, investor and consumer confidence. The movers and shakers of business and investment world look to the national political and economic leadership and their pronouncements and actions for cues on what is to come. When they sense a lack of competent leadership, their confidence drops and the markets and the economies come crashing down, as has been observed in Pakistan recently.

In his first comments about Pakistani economy since the formation of PPP-PML(N) coalition government, the PPP co-chairman Asif Ali Zardari told a press conference on May 17 that the economy is headed toward "meltdown". These remarks came immediately after Finance Minister Ishaq Dar had pulled out of the cabinet on the issue of the judges restoration. Yesterday, Nawaz Sharif said that Pakistan’s ruling coalition had agreed to “expel” President Pervez Musharraf from power, further contributing to market unease.

As the PPP and PML leaderships continue their political posturing, the larger story is the massive loss of confidence by business/investment community in Pakistan. It is worrying to see a sudden halt to foreign investments and the flight of capital by Pakistani investors to investments elsewhere in the world.

State Bank has raised interest rates from 10% to 12.5%, the rupee is in free fall, the dollar reserves are disappearing and both S&P and Moody’s have cut Pakistan’s credit ratings.

KSE 100 index has lost 2992 pts during May 2008 starting at 15122 & ending at 12130. The index has lost 879 pts during the week ended May 30th , 2008, standing at a nine month low.

Credit-default swaps on Pakistan's government debt increased 10 basis points to 530 in Hong Kong, according to Morgan Stanley's prices. That means it costs $530,000 a year to protect $10 million of Pakistan's debt from default for five years.

As Pakistan's foreign currency reserves dwindle, the ability to borrow additional cash has been impaired by Pakistan's credit rating cut for the first time in nine years by S&P and Moody's Investors Service, which cited "growing economic imbalances and renewed political difficulties."

"The ratings could impact Pakistan's effort to raise debt overseas or sell shares in companies," said Zaheeruddin Khalid, head of research at Al-Meezan Investment Management Ltd. in Karachi, which oversees $270 million in stocks and bonds.

A recent report on Pakistan’s Geo TV said that Pakistani real estate companies have been moving capital out of the country to the tune of at least $15 billion so far to invest in Gulf real estate. Such steep loss of capital will inevitably lead to job losses in Pakistan and contribute to further economic and political instability.

Unfortunately, it takes time and serious effort to create confidence in markets and economy. But it is very quick and easy to destroy such confidence by ill-conceived, impromptu statements. Zardari's comments such as Pakistani economy heading toward a "meltdown" add fuel to the fire and weaken confidence in Pakistan's economy and drive away investors. What Pakistan needs more than anything else is a sense that the leadership understands the issues and working seriously in a focused manner to resolve the economic issues. They need some sense of political stability and predictability.

Wednesday, November 21, 2007

Is 90% Good Enough?

In response my earlier post on the role of Justice Chaudry and Pakistani Judiciary, I got an interesting comment from Khalid A in London, UK. I'd like to share it with you as follows:

"I wrote the following, as early as March 2007
Knowing When to Stop ( Dawn 27.3.07 & Frontier Post 25.3.07)
I often wonder why our nation manages to extract defeat from the jaws
of victory. I am not talking of cricket.
I was able to identify at least 3 important historical moments when
history of Pakistan would have changed, had we known when to stop, and
bank our profits.

1. In 1969, an agitation for restoration of democracy was launched by
Air Marshal Asghar Khan and others against the Ayub regime. It was no
mean achievement that the all powerful military government was really
shaken. Ayub Khan offered to hold elections within 6 months and to
hand over power to the elected leaders. But Air Marshal Asghar Khan
was thumping the table and demanded immediate hand over of power.
There was no elected civilian leader who could have taken over
immediately. The only person who could take over was Gen Yahya Khan,
and he did. Air Marshal Asghar Khan and his colleagues did not know
when to stop. Having achieved 90 percent of their goals, they tried
for 100 percent and lost everything.
2. In 1977, the combined opposition launched a campaign against Mr
Bhutto. It was no mean achievement that the all powerful Bhutto was
ready to meet 90 percent of the demands of his opponents. But they
wanted 100 percent – Bhutto must go immediately! Bhutto did go, but it
was Zia who took over. Our politicians in the opposition did not know
when to stop!
3. In 1997, Chief Justice Sajjad Ali Shah had the Prime Minister Nawaz
Sharif in the dock. It was no mean achievement for a judge in a third
world country to be able to summon the Prime Minister. Even in the
West, such a situation would be quite remarkable. The Chief Justice
had achieved 90 percent of the goals and could have accepted an
apology. But he wanted a hundred percent victory. The rest is history.
Alas he did not know when to stop!

Today we have another watershed moment in our history. Will the
agitators know when to stop? Will they accept 90 percent victory or
must they lose everything to achieve 100 per cent? The smell of
victory is quite intoxicating and it blurs one's judgement. Will they
extract defeat from the jaws of victory? Will the nation face a coup
a-la-GHQ?"

I also wrote more recently:

What Supreme Court could have done. (Frontier Post 17 nov 2007)

I wrote on the subject in March 2007, under the title "Knowing When to
Stop" ( Frontier Post 27th March 2007). It is very tempting for me to
say " I told you!", but the events are too traumatic for me to do
that.

I said then that our nation always extracts defeat from the jaws of
victory, because we do not learn when to stop. This happened in 1969,
1977 and 1997. Having achieved 90 per cent of our goals, we do not
stop and consolidate our position. We go on fighting to achieve total
humiliation of the opponent. Instead of a 100 per cent victory, we end
up with total defeat.

This time, the Supreme Court had asserted itself and would have had a
major role to play in our national affairs, in future years, had the
Court avoided the path of confrontation. This should have been
done,not under any pressure, but in the supreme national interest. The
Court could have declared that the President's election would be
valid, but with the following conditions:
1. Gen Musharraf will give up the Army uniform BEFORE he takes the new
oath as President. In this way Gen Musharraf will be a civilian when
he takes the oath.
2. Gen Kiyani will be sworn in as Army Chief, in the same ceremony,
immediately after the Presidential oath.
3. Gen Musharraf must seek a new vote of confidence from the next
assemblies, within a specified time. If the vote of confidence is not
granted, the office of the President will become vacant.

Alas, it was not to be!

Khalid A
London UK



This comment reminded of the lyrics of a Kenny Rogers song:

"You've got to know when to hold 'em
Know when to fold 'em
Know when to walk away
And know when to run
You never count your money
When you're sittin' at the table
There'll be time enough for countin'
When the dealin's done"