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

Panama JIT in Pakistan

Did Musharraf Steal Pakistani People's Money?

Modi's "Make in India" Hype

Aircraft Sales Lead Pakistan's High Value Military Exports

Trump's White House

Talk4Pak Youtube Channel

Comments

Riaz Haq said…
Burying Dar-nomics. #Pakistan #PMLN #PPP #Corruption #Taxes #Exports #Industry #Economy Sakib Sherani

https://www.dawn.com/news/1352190

Here is a snapshot of PML-N’s economic policies in numbers.

On top of these new taxation measures, the government has been withholding refunds of businesses of around Rs150bn to Rs200bn while collecting advance tax to bolster its revenue performance under the IMF programme. Measures such as the foregoing in particular, including the levying of sales tax of up to 52pc on high speed diesel, a main stay input for the entire economy, have been particularly damaging for industry.

In terms of borrowing, the government’s debt-accumulation since 2013 has pushed up total public debt from nearly Rs14.5 trillion in FY13 to around Rs21.5tr by June 2017 — adding Rs7tr in just four years. More worryingly, the PML-N government has contracted new foreign loans of nearly $40bn in four years, an unprecedented amount, pushing total public external debt outstanding in net terms (after repayments), from $51bn in June 2013 to $62bn at the end of March 2017.

Under the third leg of economic policy under Mr Dar, the exchange rate has appreciated 26pc in real effective terms since December 2013 — hurting exports while giving a boost to all manner of imports including non-essential consumer and luxury items. In addition, the overvalued exchange rate has acted as a spur to capital flight from the country.

A combination of unaddressed structural challenges from the past, and Mr Dar’s policy framework since 2013, has resulted in Pakistan’s export sector (manufactured goods) shrinking to 6.9pc of GDP from around 14pc in the mid-2000s.

So the first order of business for the new PML-N prime minister should be to undo the punishing taxation burden on industry imposed by Mr Dar’s policies, and to rectify the policy framework in ways that will boost industry, in particular exports, in the long run. With Pakistan no more sleepwalking into a balance of payments crisis but sliding into one (even with international oil prices at around $50!), the government’s policy space and options are becoming limited. It, or its successor, will need to begin talking to the IMF for a new loan programme sooner rather than later, which will curtail freedom of movement for introducing industry- and investment-friendly policies.

However, some immediate concrete policy measures to reduce the cost of doing business in the country (on the taxation side), combined with a strong signal that the PML-N government is moving away from Mr Dar’s damaging economic policies, will be welcome as well as hopeful news for Pakistani industry.

Tailpiece: Thank God for the PPP government in Sindh! In a huge service to real democracy, its uninterrupted misrule since 2008 has buried some apologetic myths forwarded since the July 28 Supreme Court ruling to ‘defend’ the pathetic non-performance of political governments.

With the military commanding the heights in foreign and security policy, and not in terms of economic governance, it cannot be blamed if Thari children die each year due to lack of medicines in public hospitals, or if roads in Larkana are in a shambles, or there are heaps of uncollected garbage in Karachi. With around Rs2,100bn transferred to Sindh from the centre since 2013 under the National Finance Commission awards, in addition to the nearly Rs200bn tax collected by Sindh itself over this period, the issue is not even of money.

It boils down to corruption pure and simple. Large-scale, pervasive and systemic corruption has been widely documented as the undoing of many resource-rich but underdeveloped countries, particularly in Africa, which have no civil-military imbalances to worry about. Regular, ongoing attempts to shift the blame from bad governance and grand corruption (political sleaze) to tensions in civil-military relations are disingenuous as well as a disservice.

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