Well Deserved Good News

[visioninthedark]

http://www.jang.com.pk/thenews/jul2004-dai...national/n3.htm


WB official lauds Pak economic policy

WASHINGTON: The executive director of International Finance Corporation (IFC) and World Bank on Friday said Pakistan has won "admiration and respect" for its outstanding economic performance, and various economic indicators showing a success story.

"Very few countries have achieved multitude of achievements in its economic sector, in such a short span, as Pakistan," Tanwir Agha said while addressing the inaugural session of the day-long ‘IFC Roundtable on Pakistan’, held at at the IFC headquarters.

He said: "For the first time in history, Pakistan today has a very coherent economic policy. We no more depend on borrowing." The topic for roundtable was ‘How to work with IFC instruments- types of partnerships: and summary of IFC’s operations in Pakistan.’

Agha made a particular mention of the effective economic reforms programme, coupled with continuity of policies.

He said the international credit agencies continue to upgrade ratings for Pakistan, because of its economic performance.

Exports, he said, have touched a record level of $12 billion, real GDP growth registered 6.4 per cent during financial year 2003-04, total investment picked up sharply to 18.1 per cent of the GDP in 2003-04 against 16.7 per cent last year, industrial sector grew by a record 13.1 per cent, services by 5.2 per cent, agriculture by 2.6 per cent, and construction by 7.9 per cent while large-scale manufacturing grew by 25 per cent.

He said Pakistan is the sixth largest country by population with a GDP of $100 billion.

Agha said the IFC’s investments in Pakistan date back to 1958, with cumulative commitments to date nearing $1.8 billion.

The international lending agencies were supporting Pakistan’s strategy of economic reforms policies, poverty reduction programme, efforts aimed at achieving sustained economic growth and boosting of private sector, he said, adding "Pakistan’s economic strides have been outstanding."

Domestic and international imbalances were bridged, fiscal deficit stands at 3.3 per cent of the GDP, inflation has been very low, the government has repaid $1.2 billion expensive loans, thus saving immense debt servicing burden.

Pakistan’s national reserves have reached an all time $12 billion, having capacity for imports for a full year, the home remittances have increased, and import/export position is "stable and robust." He said privatisation was transparent and continues with full pace while still, there are several reforms programmes in the pipeline.

[Confed999]

Credit should be given, when credit is due. 6.4% kicks ass, keep it up!

[ChrisF202]

Good job :)

[Ray]

Washington DC, July 29, 2004 | ISSN: 1684-2057 | www.satribune.com

http://www.satribune.com/archives/july04/P1_rauf.htm

Moeen Afzal and Hafeez Pasha betrayed the Saudis

The Men Who Leaked $2 Billion Saudi Oil Secret and Got Away

By Rauf Klasra

ISLAMABAD, July 29: Saudi Arabia, the Islamic brother of Pakistan has withdrawn a $2 billion annual oil grant, Prime Minister-in-waiting Shaukat Aziz is deeply worried how he will fill that huge gap but the men who betrayed the country and leaked the two billion dollar secret are enjoying life in Pakistan and in US and both are loved by the Army rulers.

This grim story is not just of betrayal and selling out the national interest for petty personal gains but also of poor leadership by the institution which claims day in and day out that it is the custodian of the country’s interests and ideological frontiers, the Pakistan Army.

This story is also about lessons Pakistan should have learnt from giving top national positions to experts and technocrats from international financial institutions because it proves that these “imported leaders” are always loyal to their real employers and never care for the interests of "their client" states.

Since December 1998, Pakistan has been receiving from the Saudis crude oil worth $2 billion annually, free of cost. That was the reward Pakistan received for making the Islamic world feel a sense of strength and confidence by becoming a nuclear power.

The nuclear test brought sanctions on Islamabad from the Western world but Muslim brothers supported a weakening Pakistan economy and the $2 billion free Saudi oil was one way of saying ‘Thank You’ and keeping Pakistan afloat.

But there was a condition put by the Saudis. The oil would be free of cost for Pakistan but for the rest of the world, it would be a “sale on deferred payments” to keep away the intrusive IMF and World Bank from interfering and the US and the others, who had imposed sanctions on Pakistan, from pressurizing the Saudis. Every thing looked fine.

But to their utter shock Nawaz Sharif and his financial managers soon found that their big secret had been leaked to the IMF. Who had done it was the big question.

Only seven top men of the Nawaz Government knew the deal. Besides Sharif they were Sartaj Aziz, Ishaq Dar, Shahbaz Sharif, Hafeez Pasha, Secretary Finance Moeen Afzal and Governor of State Bank Dr. Mohammad Yaqub.

Every body was duty bound to keep that secret keeping in view the national interest involved particularly after the economic sanctions imposed on Pakistan after the nuclear blasts.

Ishaq Dar was in London with Nawaz Sharif on his return from the UN General Assembly session in September 1998 when Governor of the State Bank sent an urgent but explosive message informing him that some Finance Ministry guys had already told the IMF about the $2 billion free oil plan. IMF had also been told about the devaluation of the Pakistani currency, at least by four to five rupees against dollar.

This created panic in the Nawaz camp. They were really in a fix how to explain the deal to the IMF as delicate negotiations for an IMF package were going on and disclosure of such a huge financial facility would disturb all the calculations. The Pakistanis were also worried about saving their Saudi friends who were facing the wrath of US for bailing out Pakistan.

Nawaz asked Dar to rush to Washington to join the Pakistani team busy in the negotiations with IMF. Imported technocrat Hafeez Pasha was heading the Pakistan team. The purpose was to control the damage done by the disclosure.

Before meeting the IMF guys, Dar went straight to meet one of his friends in the IMF and asked him how much they knew about Saudi oil facility? Islamabad had already given the agreed explanation to the IMF that Saudis were supplying oil on deferred payment basis.

The IMF Director told Dar: “Yes Dear Minister your guys have already told us all in Islamabad while you were away with Nawaz in New York.”

Once this was confirmed, Nawaz Sharif was so enraged he decided to sack the two top financial managers -- Secretary Finance Moeen Afzal and PM’s Advisor Hafeez Pasha as they had leaked the classified information. Afzal was retired and sent home disgraced and Pasha returned to US humiliated and embarrassed.

The deal with Saudi Arabia was somehow restructured on papers, written down for the IMF and others and properly signed but in effect it remained a free oil facility. The Saudis stood by their word and kept on sending hundreds of thousands of barrels to keep the Pakistani economy running.

Within a year, however, Nawaz Sharif was toppled and the Army took over and the first thing General Musharraf did was to reinstate the disgraced Moeen Afzal to a post higher than he first enjoyed. He was made the Secretary General of the Ministry of Finance. He was awarded the Hilal-I-Imtiaz, a high civil award, in 2002, when he became Chairman of a private bank. Hafeez Pasha was soon appointed at a top UN post for the services he had rendered. The betrayal to the country was forgotten and forgiven.

In those turbulent times, no one was ready to talk on this troubling issue because the culprits had become powerful decision makers once again and the Opposition was on the run. However former Finance Minister Ishaq Dar recently shared this information with this scribe in detail and confirmed everything including how Pakistan was betrayed.

Dar said the Crown Prince Abdullah had great regard and respect for Nawaz Sharif and even used to call him his brother. So, when Nawaz Sharif requested for help in those crucial times, Crown Prince Abdullah offered every help to bail out Pakistan. Two billion dollars a year was no small favor.

Dar also disclosed how Hafeez Pasha had negotiated a $1.5 billion foreign loan at highly negative terms and conditions for Pakistan. Conditionalities attached with the loan were horrible but Pasha accepted these terms. He agreed to take the loan on 5 per cent above LIBOR against normal rate of 1.5 per cent.

Dar said Pakistan was also required to pledge three key strategic assets, including an oil refinery, a fertilizer unit and power plants to lenders. But the startling fact was that Pakistan would actually receive only $300 million out of $1.5 billion. The remainder of $1.2 billion was to be repaid to the same lenders. Even out of the $300 million, Pakistan would be repaying $240 million as increased interest. So in real terms Pakistan was to receive only $60 million out of a $1.5 billion loan negotiated by Hafeez Pasha.

Ishaq Dar said after becoming Finance Minister he simply scrapped that expensive deal. Soon foreign exchange reserves situation started to improve simply because of an unprecedented tradition set by Ishaq Dar to buy dollars from open market particularly from the money changers of Dubai.

Three billion dollars were purchased by Ishaq Dar. This practice got so popular with his successor Shaukat Aziz that he purchased $12 billion from the local market against cash payment of Rs 9 trillion without caring much about the inflation unleashed in Pakistan.

Pakistan’s total foreign exchange reserves now stand at $12 billion thanks to money changers who were given Rs 2-3 more for each dollar against prevailing market price. Thus, taxpayers suffered a loss of Rs 25 billion to create the $12 billion reserve.

Now this artificially created reserve has been cited by the Saudis to stop the free oil that Pakistan had been getting. The Saudis now want us to pay upfront as we have a huge dollar reserve.

The immediate worry for Shaukat Aziz after he becomes a full time Prime Minister in August, would be how to convince the defiant Saudis.

But Aziz’s foreign links are his biggest weakness as far as the Saudis are concerned. It were “imported technocrats” like him who betrayed the trust of the Saudi Royal family by leaking their secrets to IMF. Will they trust another imported leader?

The writer is a senior investigative journalist based in Islamabad

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Copyright © 2002-04 South Asia Tribune Publications, L.L.C. All rights reserved.

[Ray]

Fudging the economy on doles?

Now that Saudi bankrolling stops, what's in store?

Mustn't badmouth the Arabs any more. They must be waching the Pakistanis on WAB. ;)

[visioninthedark]

Fudging the economy on doles?

Now that Saudi bankrolling stops, what's in store?

Mustn't badmouth the Arabs any more. They must be waching the Pakistanis on WAB. ;)

The arabs can go f**k themselves and shove off to a corner and finger each other to frothing orgasmic excitement ....!!!

you, being an Indian, can't really act graciously and accept basic economic good news when it comes to Pakistan ...

why this useless and childish attitude?

[Ray]

The Indian economy is far better than many. But we don't gloat. We work harder since we have a long way to go. But this thread is gloating.

The Rockefellers don't boast of their diamonds. But I am sure a poor guy have just a gold ring would have good reasons to gloat.

Posts earlier have indicated that Pak economy is looking up rather well. That is good. Why give credit to just one man? Others have played their role too. Many have played their role.

I am all for Pak improving her economic soundness. It will bring stability to the sub continent. But there is no need to make heroes out of individuals.

The Daily Times report also showed heroes having feet of clay and selling Pakstian to the wolves!

[visioninthedark]

The Indian economy is far better than many. But we don't gloat. We work harder since we have a long way to go. But this thread is gloating.

The Rockefellers don't boast of their diamonds. But I am sure a poor guy have just a gold ring would have good reasons to gloat.

Posts earlier have indicated that Pak economy is looking up rather well. That is good. Why give credit to just one man? Others have played their role too. Many have played their role.

I am all for Pak improving her economic soundness. It will bring stability to the sub continent. But there is no need to make heroes out of individuals.

The Daily Times report also showed heroes having feet of clay and selling Pakstian to the wolves!

all I did was post some positive news about my country .... but it sems to hard ... even for an educated indian "gentleman" to digest ... !!

well ... I feel sorry to hear your negative attitude ... !!

as some rightly pointed out above ... it won't reduce anything from you to simply add a few good unselfish and non-jeleous words ...

but, knowing Indians ... I guess that is too hard and too much to expect from them ... !!

anyways ... !!

[Asim Aquil]

[QUOTE=Ray]The Indian economy is far better than many. But we don't gloat. We work harder since we have a long way to go. But this thread is gloating.[/quote

So what's wrong in gloating? It's more to do with pride actually, India's economy is in no bad shape, so why would we gloat? It does give you a sense of pride to know your nation's doing good doesn't it? No crime there. Nothing morally wrong there either.

It's not a my weener is bigger than yours competition.

a poor guy have just a gold ring would have good reasons to gloat.

And there Ray, you're very right. When India detonated nukes and Pakistan followed, though Pakistan was compelled into the nuke club, it wasn't India who suffered the consequences of Sanctions. American analysts had predicted, the bulk of Pakistanis would come down to eating raw onions, as a result of those sanctions. Our idiot plundering leaders who had given all hope and started freezing US dollar accounts, didn't help either. Zero investment into Pakistan, Pakistan was on the verge of being officially declared bankrupt and become another Afghanistan.

In came Musharraf. In came Shaukat Aziz. In came Atta-Ur-Rehman (science and tech guy).... and bam economy improved. Even before 9/11 our Forex had actually hit record highs. Pakistan's Forex in its history had never gone above 650Million dollars, I think they were about 3Bn before any alleged help was given to Pakistan to give its economy this boost.

Posts earlier have indicated that Pak economy is looking up rather well. That is good. Why give credit to just one man? Others have played their role too. Many have played their role.

Right again. We end up making people Demigods and then they think they can do anything.

About Saudi's, first of all let's hear something from a Saudi Royalty (or spokesperson) first, and then see. Anyway, they'll cave. They can't afford to be assholes with us. Although could be a blessing in disguise! Get rid of the Saudi web. 2Bn is not a big amount to distant urself from people that cost us about just as much clearing up the mess their wahhabi organizations create in Pakistan.

And dude, they hate Pakistanis. Actually they don't respect us not hate. They'd only respect money! You have to be a rich South Asian for an Arab not to go Yallah bara, somewhere 2 mins down in the conversation.

[Ray]

Asim,

I totally agree with you.

What makes me a bit apprehesive is the tendency in the sub continent to deify individuals.

In our country Chidambaram, the Finance Minister is supposed to have presented a Dream Budget etc etc. The PM is a great guy. All this is bullshit. The proof of the pudding is in the eating. Let's see how they deliver. Now, the media is obsfucating with the monsoon not in time and crap. Well, damn well they should have catered for it. Can't have God to intervene all the time.

Natwar Singh is a great Foreign Minister. Bullshit. His scowl upsets all. Get cracking and do something worthwhile about the India Pakistan relationship. That is the millstone that is not letting either country progress and have their place in the sun.

Nobody is great. We all are just doing our duty. Some beter than others, but nothing to go gaga or gloat.