IN 1930, the Father of the Nation MAJ, disappointed by intrigues and postponement of Round Table Conference in January 1931, decided to settle down in London, devoting to his practice as a Barrister before the Privy Council, having qualified from Lincoln’s Inn in 1895. He bought a house and was well settled there, but when the situation demanded he returned back to lead the AIML for a political struggle for creation of Pakistan. This is the sort of commitment, where greed and self-interest, are sacrificed at the altar of commitment to serve the people, which is lacking in Pakistan after MAJ’s death in 1948. On January 20, 1961, former President JF Kennedy in his inaugural address stated “Ask not what your country can do for you – Ask what you can do for your country”. Unfortunately, very few, at helm, holding either elected, or paid public office of importance, including those within judiciary, establishment, bureaucracy, politics etc., since 1953, can claim that they have given back to Pakistan, in proportion to what this country has given to them. There are very few exceptions.
The list of individuals named in Panama Leaks, followed by Dubai Leaks, is a directory of all those with “Conflicts of Interest”, who have been associated directly or indirectly and facilitated gross irregularities in real estate, Afghan Transit Trade, Capacity PPA with IPP, smuggling, illegal tobacco manufacturers, wholesale and retail sectors, sugar, cement and fertilizer cartels etc. When paid government servants, both retired or serving, own properties in their name or benami, in Dubai, it is reflective of the massive corruption within their rank and file, and the tolerance for this abuse, by this system. While corruption cannot be curtailed or eradicated in totality, the outflow of money from Pakistan can, if the political will is there. The manner, in which four middle ranking bureaucrats were made a scapegoat in $1Billion wheat scam, does not inspire confidence in the system. Smuggling under garb of Afghan Transit State can only be regulated if LCs are opened by Afghan Banks, identifying individuals sending foreign exchange for transit consignments through Pakistan, ensuring that Afghan foreign exchange alone is involved. As long as LCs are opened in Gulf States etc., there can be no regulatory control by State Bank of Pakistan. This is the only way that Pakistan can regulate trade of smuggling-prone items, which flood our markets, depriving this country of billions in taxes etc. There is no rationale which can justify owning of properties by paid government servants in Dubai or anywhere else.
The Dubai Leaks reveal a list of Pakistanis, who benefitted the most from vast opportunities, yet considered it unwise to invest their money in this country. They comprise people from all walks of life. It is testimony, if any is needed, that most of them have failed to deliver back to this country. The Dubai Leaks reveal properties held in name of individuals, but do not include those held in the name of companies registered in the UAE, such as HDS/Niazi Services etc., nor Off-Shore companies in other tax havens. India with FOREX reserves of $648.7Billion, as on 17 May 2024, and a population of over 1.417Billion tops the list with 29,700 individuals owning properties registered in their names, worth $17Billion. As compared to this Pakistan, with a population of 242.8.8Million, as per official January 2024 statistics, and FOREX Reserves of $8Billion as on 23May 2024, stands second with 23,000 Pakistanis, owning properties held in their name worth $10Billion as of 2022, which with increase of 25% in property values, is above $12.5Billion. What should be bothersome for relevant quarters in Pakistan is identity of individuals, and the fact that many of these individuals have held public offices. It reveals the ease with which scarce foreign exchanges can be transferred out of Pakistan, through regular banking channels and the illegal/irregular channels like Hundi, over/under invoicing etc. British nationals (FOREX Reserves $109.4Billion) own properties in Dubai worth $10Billion, whilst the Saudis (FOREX Reserves $455.3Billion) have $8.5Billion.
Almost all those involved in criminalization of real estate, who were facilitated by powerful quarters in conversion of green fertile agricultural produce land, into real estate projects, are settled abroad, having transferred their ill-gotten money to Gulf States, Canada etc. Pakistan with an agriculture-based economy that once produced enough to feed its own and export surplus, today imports almost every basic food item. The poorly negotiated PPA agreements with IPP guaranteeing them capacity payments, even to those plants which are shut down, have become an “Achilles Heel” for this country. There are reports that facilitators and beneficiaries of numerous such IPPs, whose PPA are due to mature, are planning to renew their agreements. This will be a criminal fatal blow to an already bankrupt economy and perhaps the proverbial “Last Straw that broke the Camel’s back”. As it is, the Federal Government Fiscal Deficit exceeds Revenues by over Rs8,500Billion, which means that this country is almost insolvent. Almost Rs9,000 billion is the annual interest payment on debts, which should have raised alarm bells both in Islamabad, provincial capitals and establishment. Events and the chaos that afflicts countries like Myanmar with vast resources of tin, tungsten, copper, gold, zinc, lead, nickel, silver, timber, oil and gas reserves etc.; just because of poor governance and abuse by a few, should awaken us out of deep slumber. We cannot continue with status-quo and must put our house in order, by focusing on the economy, eradicate elitist culture, ensure rule of law and develop our human resources; give priority to meritocracy and zero tolerance for tax evasion. Both the flight of capital and brain drain need to be eradicated through ethics of governance. In such a situation, a statement by a sitting federal minister, that he or his family, have a right to invest where ever he wishes, is unacceptable, especially when we seek more FDI. Sanity must prevail.
—The writer is contributing columnist, based in Lahore. Email: [email protected]
