Different Leadership, Same Old System

ZANDARI ABANDONS PAKISTAN

In the week when a draft report by the World Bank presented an extremely gloomy picture of Pakistan's power sector that is marred by corruption and inefficiency, the Zardari government

has imposed a new petrol levy to offset revenue lost due to an apparent earlier Supreme Court decision to cut a carbon tax and reduce oil prices.

On Tuesday 7^th July the court cut the carbon tax imposed by the government, bringing down oil prices by more than 10%. But officials said the government would lose $1.52 billion because of the tax cut.

President Asif Ali Zardari issued an ordinance on Thursday 9^th July imposing a levy which effectively returns oil prices to their previous levels. Officials say they feared the loss of revenue as a result of the court decision would increase the budget deficit beyond the limit approved by the International Monetary Fund (IMF), which is funding the Pakistani budget.

Whilst many have been bogged down by the judicial intervention, this issue highlights some issues, which prove Pakistan is heading for catastrophe:-

1. The Zardari government like the previous Musharraf government is completely bankrupt on solving Pakistan's economic problems. Since Zardari took over the reins of power he has been unable to solve the man made economic crisis in the country, he has still to present his economic blueprint (even if he has one). This is why the Zardari government continues with policies which are contradictory. Hence it provides some Punjabi farmers with wheat subsidies, whilst imposing income based taxes on a population where 72% of the population live on less than $2 dollars a day.

2. Like last months budget that required ratification by the IMF, the government did not even hide the fact that it was imposing the petrol tax to ensure IMF conditions are met. This should prove beyond doubt that the Pakistan economy is in reality organised in Washington rather then Islamabad.

3. The Zardari government like the previous bankrupt Musharraf government has attempted to justify its economic policies by citing the fact that the government has so few sources from which is raises revenue it has no choice to turn to foreign money and stealth taxes domestically. Under the Musharraf era foreign direct investment (FDI) and loans from the IMF and World Bank is what drove the economy. The Zardari government has argued Pakistan only has 2 million taxpayers and underdeveloped sectors which only generate revenues of $26 billion with expenses of $33 billion. Hence the government has no choice but to turn to foreign money and taxation.

4. The fundamental problem with Pakistan is the economy is not structured according to the nation's strengths. Currently Pakistan is geared around the service sector and foreign direct investment (FDI), which in no way stimulate the remainder of the economy. Pakistan's strengths lay in its mineral resources and agricultural landscape.

• - Punjab is Pakistan's most fertile province which has the world's largest salt range housing the world's largest deposit of pure salt.

• - Baluchistan - Pakistan's largest province is home to the world's fifth largest reserves of copper and over 20 million ounces of untapped Gold reserves in the Chaghi area and the Rekodiq mine.
• - Pakistan has the world's largest Coal reserves after the US. The Thar coal field in Sindh is the world's largest coal field. Thar coal has the world's largest lignite deposits spread over more than 9, 000 km2. It comprises around 175 billion tonnes of coal which is the equivalent of 618 billion barrels of crude oil.

• - Pakistan has an estimated 25.1 trillion cubic feet (tcf) of proven gas reserves. This has led to Pakistan having the highest number of compressed natural gas (CNG)-run vehicles in the world leaving Brazil and Argentina behind in the race as largest user of natural gas vehicles.

• - Pakistan's irrigated land area of 182,300 km2 making it the worlds 4^th largest with regards agricultural land use, more than the whole of Europe combined.

• - Pakistan is watered by the Indus river, one of the largest irrigation systems in the world. It also has the Tarbela Dam on the Indus River, which is the world's largest earth-filled dam.

• - Pakistan is the worlds largest producer of ghee (Clarified Butter), the 2nd largest producer of chickpeas, Buffalo Meat and Milk, the 3rd largest producer of Okra vegetables, the 4th largest producer of Apricot, Cotton, Goat's Milk and Mangos and the 5th largest producer of Milk, Onion and Sugar Cane.

5. Pakistan does not lack the resources to be a great nation or lift its population out of poverty. It is the rulers who have completely abandoned the people for a few dollars from the US who hold Pakistan back from progressing. Such rulers allowed the US to set up bases in Pakistan and then allowed the US to use Pakistani airspace and land so they could supply their troops to kill Muslims in Afghanistan.

6. The US today continues to rebuke Pakistan for not doing enough, in reality such foreign interference will always hold Pakistan back, US official are in Pakistan almost weekly having meetings with the government, army, civil service and their agents to ensure Pakistan fulfils US aims in Afghanistan and the region and saves it from an embarrassing defeat. US reliance on Pakistan will only increase as the competition over central Asia continues with Russia and as China threatens US interests in Asia.

7. With the US marred in two wars where it bleeds to death, this represents a brilliant opportunity for Pakistan to expel the US and take control over its own destiny. In part, US interference has also been due to the threat Pakistan posses if it were to unify, US national intelligence estimates have predicted scenario's from 2020 onwards with the Khilafah established in the Muslim world.

Pakistan must take charge of its own destiny and establish the Khilafah, only this will allow the Muslim of the country to realise their full potential, once this is achieved the work of reunification with the wider Muslim world will begin.

source taken from www.khilafah.com