Re: Imran’s offshore company
I wrote that ‘IF’ a project is budgeted for $10 billion than initial kickbacks and corruption happens of the order of $3 billion, followed by lower level corruption, while true cost spent on project would be around $4 billion. I was not referring to any particular project, but was referring to extend of corruption, how it happens in proportion to total cost … and that is easier done if company is foreign, as local companies may spill the bean.
Coalition support funds is paid directly to State Bank of Pakistan and so do IMF loans. … On the other hand, your information is wrong. In 1999, Pakistan had IMF loan, but it was Musharraf who paid up all IMF loan in 2004 and took Pakistan out of IMF programs. It was first time since 1974 that Pakistan had no IMF loan and was run without IMF dictation. So, how can you say that Musharraf took IMF loan?
On the other hand, in 2009, Zardari government again went to IMF and took huge loan to be paid (directly to State bank) in instalment (huge loan was possible because Musharraf left economy in robust condition that was growing fast, so IMF obliged, and gave huge loan, what never happened before for Pakistan) … and later once NS government came into Power, Pakistan went to IMF for further loans.
Actually, all loans Pakistan take, it goes directly to State Bank. Corruption happens in projects or issuing of expensive loan bonds that corrupt government cronies buy themselves … and here (issuing expensive bonds that were bought by government cronies), NS is specialist.
Further, when government spend on projects paying foreign companies, dollar from state bank is used … or foreign companies (occasionally foreign governments) gives loan to cover the cost of those projects. Here, part of payment received by foreign companies is given to corrupts as commission. These commission do not even see Pakistani soil, rather get paid abroad in the accounts of these corrupts. Even when foreign companies are paid by State Bank (in dollars), corrupts receive their cut abroad from foreign companies. So, state bank is never involved in paying dollars to Haramkhor corrupts directly.
Most project goes through budgeting. Whenever Haramkhor corrupts are in power, commission is included in budgeting these projects. When projects are given, any company who are not working with Haramkhors, they do not get project, even if their bid is lowest, Many time, their bid do not even get entertained … and thus there is many news that highest bidder got the project and lower bidders are ignored (or bid not even entertained). Many time, Haramkhors do not even give project after bidding (… recent example is billions of dollar worth LNG import project given to Qatari Prince whose letter was to save Haramkhor swine in Pajama Leak case. In this project, Qatari would get over a billion dollar guaranteed profit each year … no open bidding happened) … NS is expert here, though Zardari is not far behind,
Biggest corruption is done by Haramkhor Swines, when project overshoots the budget and Haramkhor government readily approves that overshoot cost (happens as the project progresses) … as there is always big cut in that overshoot cost for Haramkhor Swines
So, for observing corruption, see what was the budgeted amount (if that amount was above normal or not) and how much was actual cost to complete the project at the end (how much was overshoot cost above budget). You will see that NS is expert here too (though Zardari was not far behind).
If you will see the record, you will find that most big projects in recent past happened (started and finished) during Musharraf time, and best part is that, these projects got completed most economically. Regardless … you are right that country is underdeveloped and need big projects, but that does not mean projects should cost 2 to 3 times what it normally should or Haramkhor Swines eating up national exchequer to get these project done.
Just imagine: Pakistan external debt in 1999 (when Musharraf came to power) was around $40 billion … and this external debt stayed $40 billion when Musharraf lost power in early 2008 … and best part was that, most debt that was left had lower interest than debt inherited by Musharraf government .. means, Musharraf government replaced expensive short term debt with cheaper long term debts, making repayment of debt easier and saving huge dollar amount for Pakistan. Still, Pakistan completed many projects during Musharraf government, surprisingly at very nominal cost. Some projects were completed at quarter of the cost what corrupt Haramkhor governments of BB and NS were budgeting, saving Pakistan billions of rupees in those projects. …
On top of that, Pakistan seen highest growth rate ever during Musharraf period, export increased from ~$7 billion in 1999 to over $18 billion in 2008 … Pakistan dollar reserves increased from less than half billion dollar to at time over $16 billion (if one use present government argument that external debt should be seen as (debt - reserve) .. than during Musharraf time, foreign debt got reduced from $40 billion to around $24 billion) … and best part hat all can see is that … dollar stayed stable throughout during 8 years of Musharraf rule.
Just imagine, Pakistan GDP was around $65 billion in 1999 that increased to around $180 billion in 2008, almost 3 times or 300 percent in 8 years … and now, after 9 years of Haramkhors in power, GDP increased to around $300 billion, that is only 66 percent more what it was in 2008. So, why is that?
Do you know … Pakistan defaulted twice in Pakistan history and both happened when NS was PM and $Daar was Finance Minister, that is, in late 1998 and again in early 1999. On top of that, IMF and World bank accused Pakistan of fudging the figures submitted to IMF and WB (by Ishaq Daar), for which Musharraf government had to pay substantial fine.
