Comment on Khanani and Kalia arrests in Pakistan: Only the top 2,000 businessmen and politicians or the “ruling class” in Pakistan would transfer big money being claimed in the media. They will not be prosecuted, convicted and sentenced. Money market analysts suspect KKI's political-business rivals are playing a game for the benefit of Mr 10% plus and his mafia gang, including interior advisor Rehman Malik (Mr oil for food UN-US scandal fame) who lectures 160m people and the global audience on “financial terrorism” which he links to “Afghan drug trade”! Does he know that trade is bred, fed, nurtured and protected by covert US agencies? Moreover, according to Rehman Malik, outgoing FDI is now classified as “financial terrorism”!
So, what led to seemingly kneejerk reactions? Well, due to oil price hikes in 2008 and other political corruptions, Pakistan reserves are down from over $16 billion to $4 billion. Lack of confidence in the corrupt Zardari-Sharif mafia style political-business alliance also reduced Karachi Stock Exchange (KSE) index by 41 per cent. Over a period of some 8 years, Shaukat Aziz created bubble economy boom, but so far in 2008 alone, the country has turned into a businessmen nightmare hell. That is nothing less than a remarkable miracle for the alliance that even Nawaz Sharif dare not topple in a country where inflation is now running at 25%. World Bank-IFC and IMF also imposed rules before lending Pakistan $15 billion.
The reserves and the KSE index fell, and the rupee collapsed due to massive reductions in FDI, the remittances and the inflation. That also proves lack of confidence in the mafia. Those factors, therefore, have nothing to do with havala and hondi (HH) money transfer system, offering a variety of services including currency exchange, inward and out ward remittances, demand draft and travellers’ cheques. HH has been tried and tested over many centuries all over the world. It remains the most popular money transfer method from one city to millions of bankless villages in South Asia. The HH system has proven to be more reliable, trustworthy, faster and much cheaper than “free market” glocal banking cartels who received $1 trillion in bailouts and handouts in return for complete submission to the big brother governments and their governors in more than 150 countries worldwide.
Kalia and Khanani arrests are politically motivated. Their arrests would dry up remaining foreign direct investment (FDI) to Pakistan, and reduce up to $7 billions annual remittances coming to Pakistan, some 40% through Khanani and Kalia International (KKI). Since 1992, over 24 licensed HH exchange companies, including KKI operate in Pakistan to ISO 9001 standards that is something most government agencies and commercial outfits cannot live up to.
Who would dare and waste money on litigation costs in challenging shutting down licensed HH companies in the Pakistan kangaroo PCO courts? The HH companies contribute over $7 billion annually to Pakistan’s foreign reserve, much more than the glocal banking cartels.
The State Bank of Pakistan (SBP) regulations allow movement of currency in and out of Pakistan. So anyone who is to transfer even $50 million could not legally be prevented to do so. According to senators Ahmad Ali, Kamran Murtaza, Dr Khalid Ranjha and Babar Ghauri, there are no laws that barred the transfer of foreign currency out of Pakistan. In that context, the arrests of Khanani and Kalia, are politically motivated in order to divert public attention from the mafia’s schemes and failures, and with FIA threatening hostage taking, demanding ransom, aiding NRO Zardari gang extortion, updating exit control lists in a country where justice is dependent on kangaroo PCO judiciary and courts.
Former prime minister Shaukat Aziz can also learn a few more tricks from Zadari’s organised criminal gang that is busy monopolising cash flow to rape and loot Pakistan; hasten its meltdown, crippling its economy and any chance of recovery. Zardari wants to get his own cut from future giveaway “privatisation,” ensuring his ill-gotten loot is not challenged legally. Pakistan needs FDI in, but no FDI going out! Pakistan need to increase export, but wants to ban imports, including raw materials, energy, commodities, wheat, cotton, fertilizers, etc costing $6.85 billion more than previous fiscal year.
[FONT="]Why would investors not invest in Lehman Brother, and Bear Stearns? Why would any prudent investor invest in Pakistan? Why would investors want get his/her own money out of Pakistan, particularly when fundamentals are so wrong? Most investors know why NRO president Zardari and his puppet government would not restore all senior judges, including Iftikhar M Choudhary. What is Zardari afraid off? What has Zardari got to hide?