Behold a Trojan Horse
As far back as 1989 it was clear Hubco would be an albatross around Pakistan’s neck but we are a glutton for punishment and we persisted with this scam. When eventually confronted, Hubco countered with an extremely effective propaganda campaign, holding the country’s financial liquidity hostage and virtually putting all future investment in Pakistan under jeopardy. In this no-win situation we should be thankful we managed to cut our losses and accept, however unpalatable, Hubco’s terms for surrender. With a Trojan Horse or two as a trump card up their sleeve, Hubco’s investors can be excused for laughing all the way to their private banks. Someone someday will do an exhaustive case study to include those who, viz (1) conceived this monstrosity both in (a) Pakistan and (b) abroad, to include government and non-government functionaries, international financial technocrats, consultants, etc (3) nurtured the project, engineers of all kind, bureaucrats, politicians etc (4) were the investors, Japanese (later replaced by Saudis), British, Singaporean, US, etc (5) built it, mainly construction companies, equipment manufacturers, etc (6) then profited by it, mainly almost all of the aforementioned (7) took part in the cover-up and sustaining of the scam, including WAPDA personnel (8) acted as accessories to a combination of media and diplomatic blackmail designed to force us to swallow the bitter pill and (9) lastly, whose children’s grandchildren will continue paying through their nose for the next millennium, long after Hubco is a pile of rubble and rusted scrap?
Hunting the Foxes
In his wide-ranging first ever Press Conference on Monday Nov 1, 1999, the Chief Executive (CE) of Pakistan Gen Pervez Musharraf, spelt out his aims and objectives for the nation and the priorities he has set. Without any doubt the most important issue was Accountability and how he intended to carry out a horizontal exercise at the top before a vertical one starting from top downwards. There are other problems to take care of, viz the economy, law and order, etc but accountability is the core issue. To implement his stated aim he announced the formation of National Accountability Bureau (NAB), an acronym that fits neatly with the objectives, to NAB those who have been looting the country blind.
In the words of the CE paraphrasing Winston Churchill, “never in human history has so much been plundered by so few from so many”. What remains to be seen is the will to make the powerful pay their just dues, the CE’s body language on this issue was visibly positive. About 320 families owe Rs. 200 billion as loan defaulters, only about Rs. 80-100 billion may be actually recoverable. To ensure thorough enquiry in all issues, cases against such individuals, whether it be tax, customs or excise evasion, KESC or PTC bills default etc should be clubbed together for ease of investigation and prosecution under NAB. The clout of illegal money and their move into legitimate business cannot be ignored. For example at least one cigarette manufacturer with foreign collaboration has been not only evading customs and excise duties at will but has been involved in the large scale fake manufacture of other brands. Under one head we have fake manufacture, customs, excise duties evasion, income tax default, bribing of officials to escape cynosure, etc. All this illegal money has funded other legitimate businesses, with a battery of high-powered lawyers and accountants well paid for, can he be touched? All those income and wealth tax, customs and excise department officers, in fact all government officials who were associated with such cases are collaborators and should be taken to task. A comprehensive audit is necessary. Instead of having firms to do the job, individual auditors having a good reputation should be appointed to make out a comprehensive financial picture of such defaulters, tax-evaders, etc. Direct rewards should be offered for tracing out undeclared assets of these defaulters whether at home or abroad. However, what one fears is that given all the sincerity of the CE and his “Nabbers”, entrenched bureaucracy or other motivated interest will frustrate their moves on some pretext or the other.
It’s the Economy
Two hundred days plus into the military regime the prime problem remains the revitalisation of the economy. Miracle men with magic wands and smooth rhetoric notwithstanding, the economy remains sluggish. Granted that the financial haemorrhaging that was the hallmark of the past political governments has been contained, client-patron relationships that have bedevilled Pakistan for over 50 years continues to flourish, one set of patrons have simply been replaced by another, the clients keep ever increasing, to their credit much slower in this regime. Except for one or two dishonourable exceptions, the khakis have remained squeaky clean. Economic initiatives taken have been enough for the manufacturing sector to show some life but nature has played a cruel hand to the agricultural sector, the backbone of the economy. There is a shortage of water in our rivers and severe drought in many parts of Balochistan and Sindh, is a potential disaster staring us in the face. We expected a bumper wheat crop, in the face of fickle nature, if at the least we do not get a reasonable one, we face a very bleak immediate future. To add to additional outlays for oil, add to that for wheat.