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China’s ‘Debt Trap’ for Pakistan: Dilutes FATF Ruling

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Under normal circumstances, a one billion dollar loan between two sovereign countries would have gone unnoticed by global community, but what makes China’s one billion dollar lending to Pakistan so special is the timing of this loan and the strategic intention behind it. The economics of this loan to justify the need to buffer Pakistan’s foreign currency reserves, which nosedived to $9.66bn last week from $16.4bn in May 2017, taking China’s lending to Pakistan to over $5bn in this fiscal year, has been well covered by all the segments of media in India and abroad. The messaging and the strategy behind this bailout need deeper analysis.

Timing and Messaging

The timing of the loan, which raises eyebrows, is that it comes immediately after Pakistan being officially included in the grey list of Financial Action Task Force (FATF). FATF is a global body, (of which China is also a member), aims to combat money laundering and terror financing, while taking the decision was convinced that Pakistan has failed to act against terror financing on its soil. China’s tried its best to help its ‘All weather friend’ Pakistan by responses to indicate that they are doing their best to fight terrorism and have made enormous sacrifices towards that. This aid package indicates China’s resolve to signal the global community, that it intends to keep Pakistan economically afloat irrespective of FATF ruling. China is apprehensive that if Pakistan sinks economically (if it does not get IMF aid package which it will bid for after elections), it may well happen that China may not find enough investors for CPEC, and may be its own companies may find it difficult to sustain the project. With this gesture China has tried to raise the confidence level of its investors in CPEC/BRI, despite the risk of criticism of diluting FATF, despite knowing that Pakistan cannot pay the interest of its loan and needs further loan to repay its interests with sinking economy.

Why Pakistan is strategically lucrative to find donor for bail out?      

Pakistan’s geographic location is strategically so important that US, as well as China will like to have influence over it. For US, Pakistan is relevant to keep its competitors under check and have bases to launch operations in Afghanistan, especially against al-Qaeda and Haqqani network. As Pakistan provided the bases and manpower to enable US to fight in Afghanistan against Taliban giving shelter to both, it extracted billions of dollars from them as bailout packages, besides military hardware on the excuse to ward of Indian threat to concentrate on fighting on Afghanistan borders to serve US interest. Now US is acting tough on them, post “New South Asia Policy of Trump Administration”, blocking the aid to them, as it is convinced that Pakistan did not do enough to target al-Qaeda and Haqqani network and continues to help them. US is however, in no mood to give a free run to China to cede this strategic space so easily in this region, hence the strategic competition in this region is not yet over.

China needs warm water access for its Western region and smooth flow of energy and trade through this region besides some of the minerals in Pakistan. CPEC and the related infrastructure also give China an opportunity to utilize its overcapacities in Pakistan. This will end up in insurmountable loan for Pakistan, beyond its paying capacity, which may result in Chinese land grab as well as resource grab and some compromise to sovereignty of Pakistan by “Debt/Financial Offensive” by China, which has been very successful in some countries like Myanmar, Maldives, Sri Lanka and others. China also has a strategic interest to keep US out of this region. China therefore has enough strategic reasons to keep Pakistan economically afloat for its own strategic interests, hence it has gladly taken over this role from US.

Pakistan transition to Chinese colony/Terroristan

From global prism and Indian perspective the financial crisis of Pakistan is dangerous. If China continues to be determined to bail it out every time, Pakistan’s status will be reduced to a colony of China, with considerable PLA’s presence in context of protecting CPEC and other investments. Presently Pakistan is a sham democracy with Pakistan Army giving an impression of binding and protecting the country by holding all levers of power. If Pakistan collapses, then, with the number of terrorist groups being nurtured, there is a danger of it coming under Jihadi rule or becoming another Islamic caliphate, which the world community has to deal with, which can be far more dangerous with nuclear assets including tactical nukes present there. With Pakistani Army’s and ISI honeymoon with terrorists, including getting them a backdoor entry into politics through Hafiz Saeed’s Milli Muslim League fighting elections, the radicalization of Pakistani Army is reasonably evident. It is time for the global community including China to revisit their support to Pakistan, and prevent it from being diverted to self destroying Terroristan.

The author is a veteran Infantry General with 40 years experience in international fields and UN. A globally acknowledged strategic & military writer/analyst; he is currently the Chief Instructor of USI of India, the oldest Indian Think-tank in India.

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“Haqeeqi Azaadi” or “Political Invasion”?

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You call it a “Long March” or an “Azaadi March” or a “Haqeeqi Azaadi March” and lastly according to some people “Political invasion of the capital”; whatever attempt it may be, the impact of this “Long March” will not be “Short” at all. Seems like history is repeating. Yesterday, it was PTI, later it was TLP, then JUIF, PDM & now again PTI. This reminds us about a Supreme Court’s historic judgment on Faizabad Sit in by Supreme Court, which is quite relevant again in these crucial times. The historic judgment of Supreme Court on Suo moto quotes that “The leaders of the dharna intimidated, hurled threats, abused, provoked and promoted hatred. The media provided unabated coverage. Inflammatory speeches were delivered by irresponsible politicians. Some unscrupulous talk-show hosts incited and provoked citizens.” Isn’t the situation once again similar? Doesn’t it seem like history is repeating? Few analysts consider it to be a worst kind of situation.

Supreme Court writes in its judgment that “the freedom of speech and expression and of the press are fundamental right. However, these rights cannot be used to denigrate or undermine the glory of Islam, security or defence of Pakistan, friendly relations with foreign States, public order, decency or morality or in relation to contempt of court, or commission of or incitement to an offence.  He categorically mentions that “PEMRA Ordinance mirrors the restrictions as set out in Article 19 of the Constitution and further prohibits broadcasts which are, “likely to create hatred among the people or is prejudicial to the maintenance of law and order or is likely to disturb public peace and tranquility.” So, Supreme Court has already given clear instructions that if some event is likely to disrupt peace and tranquility, media broadcasts can be prohibited.

Insiders say that we are in a dead end and this is the most crucial time of history for Pakistan, especially when the economic fate has to be decided by IMF on 25th May when Imran khan marches on Islamabad. So let’s playout the possible upcoming scenarios which political stakeholders may have to consider;

  1. Marching towards Islamabad with huge crowds is one thing but forcing a government to dissolve assemblies with this crowd is another thing. Imran Khan very well knows this is a do or die situation for his political career as well. He knows his March will only succeed if he can force an early election.
  2. Bringing larger mobs to Islamabad will only be fruitful if there is some kind of disruption by the present government or by the PTI itself. IK knows that a prolonged sit in without happenings in the red zone won’t be impactful.
  3. PTI leaders have been repeatedly convincing people including government employees, Army officers and police to bring their families in their Haqeeqi Azaadi March. The question which arises is that “Why IK doesn’t bring own family members to join the “Jihad” or “Haqeeqi Azaadi”?
  4. IMF has to take crucial decision on Pakistan’s economic fate. Without an IMF Package, a Srilanka type scenario may arise. The decision will come on the same date as of long march, on 25th May. This is a do or die situation for Pakistan’s economy. So the leaders of this March should definitely come with a futuristic economic plan and tell the masses how will they get rid of this dire economic situation.
  5. While Srinagar Highway will be full of Marchers led by the so-called Ambassador of Kashmir, a big decision is expected to come from Srinagar about Yasin Malik. Unfortunately, it is expected that his sentencing maybe announced on 25th May as well.

The government also has limited options. They are arresting leaders of PTI. They are raiding houses in their own panic mode which will further incite the situation. The removal of fuel subsidiary has become inevitable and when it happens it will be the most unpopular decision. Rising, Inflation will cut purchasing power. Finalization of IMF program has brought them to a dead end.

The dread is in the air. 25th May is around the corner. It is Crucial. It is Do or Die for Pakistan. We must fear!!

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When Politics turns Personal; The Toxic Allegations & Accusations become a Norm

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Image source: timeofpakistan.com

There is something happening beneath this political turmoil which is NOT looking good!!

Whenever Political landscape turns into a Personal battleground, defeats become unacceptable. These past few days are a perfect case study to see that how Political elite in Pakistan has done whatever it took it to stay in power. In this power grab scenario, there could be numerous losses including the integrity of institutions. We have unfortunately entered into a very dangerous phase, where some political stakeholders have put all stakes at risk, where they have stretched their limits beyond a constitutional limit, all to gather mass support, all to stay in power and avoid defeat. Is it a threat of losing power? Is it a double game? Is it a practical hybrid war we are fighting?  Whatever it is, it doesn’t seem to be good. All is at stake, all is at risk and all is toxic.

As if the political temperature was not noxious enough, Shireen Mazari Saga took place. Once again, accusations, allegations and assumptions started pouring in against the state institutions. Soon after her arrest, her daughter, a lawyer herself Imaan Zainab Mazari alleged that her mother was beaten by male police officers during the arrest. But few minutes later, a video clip surfaced that showed clearly that her mother was arrested by Female Police officers in broad daylight and as per the law. Lie number 1 of the daughter stood exposed. Within moments, without any cogent evidence the lady, known for many controversies in the past targeted state institution for such an act, although the anti-corruption already had taken responsibility of her arrest.

Abuse of power can never be tolerated, regardless of who it targets or from where it emanates. This mantra is true and everyone has an equal belief on it but let’s take a deep dive to see that how politics turned dirty in this case, how blame game took place and how this entire episode was used as a tool to churn propaganda against Army leadership and Armed Forces.

1. The anti-corruption police had arrested Shireen Mazari and she herself accepted that Prime Minister and Interior minister were responsible for my arrest. But the mother daughter nexus brazenly started blaming institutions without any solid evidence. Shouldn’t there be an inquiry on this too?

2. PTI was always of the opinion that why courts were opened mid night to send IK packing while he wasn’t listening to anyone however when same court gave a verdict in favor of PTI ex minister, late night, it was celebrated and much appreciated by Shireen Mazari & IK who have been spearheading anti judicial tirade until recently. Isn’t it blatant hypocrisy? Judicial inquiry has been ordered by the Court which is a positive sign, but the serious allegations which Mazari nexus have raised must also be inquired during this newly formed judicial inquiry. Should the Judiciary not question them on hurling these baseless allegations?

3. The present government, whose Police itself arrested Shireen Mazari disowned this attempt. Attorney General displayed his ignorance about the matter in front of the court. So, somehow the government created this impression in the public eye that they are not to be blamed for the arrest of Shireen Mazari. Was it a double game? Or a deliberate effort to discredit institutions?

Pakistan is already facing serious economic downfall, political uncertainty and civil strife. PTI has also announced Long March to Islamabad on 25th May which is likely to further exacerbate already fragile political and economic instability. It has become quite evident now for achieving petty political ends, our political elite has no serious resolve to address the crisis confronting the country. Country is being deliberately pushed to limits of economic and political dead end. The political immaturity and lack of vision to handle the crisis situation is also hurting the repute of institutions amidst internal political wrangling. If political leadership doesn’t come to grips of the critical situation prevailing which is likely to aggravate further in coming days, people of Pakistan in particular and the country in general are likely to suffer unprecedented damage. Political elite must put its acts together and steer the country out of prevalent political and economic crisis by showing sagacity and political wisdom until it’s too late.

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Accusations to Acknowledgement: The Battle of Article 63 A

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The weather is heating up. As the May is ending, Political temperatures are soaring. The fate regarding the country’s political and economic stability will be measured in the upcoming days. Earlier, PDM built momentum by taking on institutions. Maryam Nawaz raised the temperature by targeting key personalities and institutions. Allegations were bursting against the institutions in all dimensions. Today, we witness reversal of roles. Accusations have been outflowing in every Jalsa by PTI. But now suddenly, the “accusations” turned into “acknowledgment”. “Complaints” started transforming into “Compliments”. Is it the change of narrative? Is it another U-turn? Or is it the restoration of confidence in the institutions? Where will this chaos end?

The Supreme Court’s “decision” or as they say “opinion” or “binding” on Article 63 A has raised some pertinent questions on the status of CM Punjab election? In the interpretation of Article 63 A of the constitution, the Supreme court categorically condemns the practice of horse trading by calling it “a cancer afflicting the body politic”. Supreme Court in its decision of 3-2 rejected the vote count of these dissident members against the party directives. So the future of the Chief Executive of Punjab is now under threat because it is contrary to what happened in National Assembly. The political instability continues and the situation is messy.

In light of this verdict, Hamza has a support of 172 MPAs in Punjab assembly but at the same time, he also has 4 dissenting members which draws the figure to 168. Now further moving ahead, PTI and alliance also has a collective figure of 168 votes minus 21 dissenting members. The situation here in Punjab is way too complex now. A support of 186 members is required for a clear majority in Punjab assembly to formulate a government. This current Punjab government can either fall through a governor led vote of no confidence or a Supreme court order. The governor even has a right to dissolve the assembly with his discretionary powers according to Article 112 (2) of the constitution. Supreme Court has already made its decision on cross voting against Party fiat.  Now legal experts are interpreting the decision in their own dictionaries. What will happen in Punjab? What will happen on the federal level? Will there be an election call? If so, what will be the care taker setup? Will there be a fresh mandate? Who will make the hard economic decisions?  Lot needs to be answered in these crucial times.

From “My judges disappointed me” to “Thankyou Supreme Court”, a lot has happened and a lot is ready to take place. Islamabad is full of gossips, interpretations, whispers and predictions these days. There is something seething under this political turmoil. The Red zone is under a lot of pressure whether politically or economically. Pre – Elections, Elections and then Post elections, we have a lot of consequences of a lot of hard decisions. But hard decisions need to be taken. Question is who is ready to make the hard choices? Be Afraid!!

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