Tag Archives: debt

Pakistan’s Risk Surges to One-Year High Amid Global Turmoil

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Bets are rising that Pakistan will default on its debt just as it starts to revive investor interest with a reduction in terrorist attacks.

Credit default swaps protecting the nation’s debt against non-payment for five years surged 56 basis points last week to 620 points amid the global market sell-off, according to data compiled by Bloomberg. That’s the highest since January 2015 and the steepest jump after Greece, Venezuela and Portugal among more than 50 sovereigns tracked by Bloomberg.

About 40 percent of Pakistan’s outstanding debt — both local and foreign — is due to mature in 2016, according to data compiled by Bloomberg. That’s roughly $45 billion, of which about 4.3 trillion rupees ($41 billion) is in local currency.

Read more » Bloomberg
See more » http://www.bloomberg.com/news/articles/2016-02-14/pakistan-default-risk-surges-as-50-billion-debt-bill-coming-due

Why Marxism is on the rise again

Capitalism is in crisis across the globe – but what on earth is the alternative? Well, what about the musings of a certain 19th-century German philosopher? Yes, Karl Marx is going mainstream – and goodness knows where it will end

By The Guardian

Class conflict once seemed so straightforward. Marx and Engels wrote in the second best-selling book of all time, The Communist Manifesto: “What the bourgeoisie therefore produces, above all, are its own grave-diggers. Its fall and the victory of the proletariat are equally inevitable.” (The best-selling book of all time, incidentally, is the Bible – it only feels like it’s 50 Shades of Grey.)

Today, 164 years after Marx and Engels wrote about grave-diggers, the truth is almost the exact opposite. The proletariat, far from burying capitalism, are keeping it on life support. Overworked, underpaid workers ostensibly liberated by the largest socialist revolution in history (China’s) are driven to the brink of suicide to keep those in the west playing with their iPads. Chinese money bankrolls an otherwise bankrupt America.

The irony is scarcely wasted on leading Marxist thinkers. “The domination of capitalism globally depends today on the existence of a Chinese Communist party that gives de-localised capitalist enterprises cheap labour to lower prices and deprive workers of the rights of self-organisation,” says Jacques Rancière, the French marxist thinker and Professor of Philosophy at the University of Paris VIII. “Happily, it is possible to hope for a world less absurd and more just than today’s.”

That hope, perhaps, explains another improbable truth of our economically catastrophic times – the revival in interest in Marx and Marxist thought. Sales of Das Kapital, Marx’s masterpiece of political economy, have soared ever since 2008, as have those of The Communist Manifesto and the Grundrisse (or, to give it its English title, Outlines of the Critique of Political Economy). Their sales rose as British workers bailed out the banks to keep the degraded system going and the snouts of the rich firmly in their troughs while the rest of us struggle in debt, job insecurity or worse. There’s even a Chinese theatre director called He Nian who capitalised on Das Kapital’s renaissance to create anall-singing, all-dancing musical.

Read more » the guardian
See more » http://www.theguardian.com/world/2012/jul/04/the-return-of-marxism

Strikes in Greece as austerity deal proves elusive

By DEREK GATOPOULOS

ATHENS, Greece (AP) — A 24-hour strike by civil servants disrupted public services in Greece on Wednesday as the government struggled to hammer out a deal on further austerity measures with international creditors.

Thousands of protesters attended rallies in Athens and other cities, while civil servants penciled in another 48-hour strike on March 19-20.

In central Athens, cleaning staff fired by the finance ministry marched holding up buckets and mops, and a group of school teachers chained themselves to railings in front of parliament.

“I feel like I’ve been dumped in the trash,” said Nikos Kikakis, a suspended 59-year-old high school headmaster who is due to be laid off this month and joined the protest at the parliament. “I have worked for 26 years in public service, and have no hope of finding a job now.”

Read more » Yahoo News
http://news.yahoo.com/strikes-greece-austerity-deal-proves-elusive-090617286–finance.html

Russia to cancel Cuba’s $29 billion of Soviet debt

Russia is going to write off 90 percent of Cuba’s $32 billion Soviet-era debt as part of a deal to end a 20-year dispute, according to diplomatic sources cited by Reuters.

Prime Minister Dmitry Medvedev agreed to write off the island’s debt during a visit to Havana in February 2013, stressing details would be finalized by the end of the year.

In October, the two sides signed a refinancing agreement that requires Cuba to settle Moscow $3.2 billion over ten years, and Russia would forgive the remaining $29 billion, which is $20 billion in debt plus service and interest, according to Reuters. Between $5-6 billion of Cuba’s remaining foreign debt is non-Soviet.

Read more » rt.com
http://rt.com/business/russia-cuba-debt-ussr-980/

Occupy Wall Street’s debt buying strikes at the heart of capitalism

In buying debt so cheaply and writing it off, Occupy has revealed the illusory and circular nature of owing money

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Across the United States, 2,693 people have received a letter in the last few months, which identified a debt and read: “You are no longer under any obligation to settle this account with the original creditor, the bill collector, or anyone else.” This is the work of the Rolling Jubilee project – a non-profit initiative which buys personal debt for pennies on the dollar in the secondary market (where debt is sold to companies who then resell it to collection agencies) but then simply cancels it.

When the Occupy movement came into being in the summer of 2011, its critics said that a lack of identifiable objectives and strategy for achieving them meant it was doomed to fail. This was a monumental underestimation of its potential impact. Two years on, the debate about the ethics of corporate capitalism in its current form, the fairness of the remuneration of those at the top, the widening wealth gap and the morality of tax avoidance is alive and well. The concept of the “99%” is now part of the collective consciousness. All this is, in no small part, down to the fuse lit by the Occupy movement.

However, another significant aspect of the movement – dismissed as being woolly – was that it brought like-minded people together and allowed a dialogue which identified common strands. This appears to have evolved into several focused and practical initiatives. One of the most significant, and perhaps the most threatening to the status quo, is the Strike Debt group, of which the Rolling Jubilee project forms part.

The idea is that, those freed from debt and those sympathetic to the movement, then donate into the fund to keep it “rolling” forward; hence the name. The fund has already raised $600,000 and has used $400,000 of this to purchase and cancel an astonishing $14.7m of debt, primarily focusing on medical bills. This strikes at the very heart of the system, not only by using its own perverse rules against it, but critically by revealing the illusory and circular nature of debt.

Capitalism requires a layer of cheap, flexible labour to operate optimally. It is not a coincidence that the most successful global economy, by any traditional capitalist measure, is an authoritarian quasi-communist state. Many, myself included, have been arguing that our current predicament is not crisis-consequent austerity, but a permanent adjustment. David Cameron on Monday confirmed as much. The great lie, peddled by Thatcher and Reagan, was the idea that we could all be middle class, white-collar professionals within a neoliberal economy. It was simply not true.

Continue reading Occupy Wall Street’s debt buying strikes at the heart of capitalism

Pakistan – Drowned, sinking deeper in debt

By: HUZAIMA BUKHARI AND DR IKRAMUL HAQ

Pakistan, drowned deep in debt, is sinking deeper and deeper with each passing moment. The situation, if not remedied on a war footing, will eventually lead the country to an economic collapse. During the last three months, the debt burden has soared by Rs 980 billion – an unprecedented increase pushing the total domestic debt up to Rs 15 trillion. This does not include borrowing from the International Monetary Fund (IMF) to avert a serious balance of payment crisis. The Muslim League Nawaz (PML-N) was very critical of the Pakistan People’s Party (PPP) government for increasing the debt burden of the country by 100% in five years, but its own record during three months is more deplorable – adding Rs 11 billion a day is awfully gruesome!

On 30th June 2013, the federal government’s total domestic debt was Rs 14 trillion which as of today stands at Rs 15 trillion. Increase of one trillion in three months is terrifying. The total debt burden-internal Rs 15 trillion and external $62 billion-is not debated in the Parliament. The members seem more obsessed about arguing whether Hakimullah Mehsud, killed in a drone attack, is a martyr or not. For them drone attacks are violation of sovereignty but begging from USA, its allies and international donors is a matter of honour! One needs to remind them Allama Iqbal’s famous verse:

Taqdeer Ke Qazi Ka Ye Fatwa Hai Azal Se/ Hai Jurm-e-Zaeefi Ki Saza Marg-e-Mafajat!

[T’is the immutable decree of the Judge of destinies- That weakness is a crime, punishable by death].

Nobody in the National Assembly or Senate is worried about erosion of our resources consumed largely by debt servicing and how to come out of ‘debt prison’ that is main cause of political subjugation. They are wasting words and energies on non-issues.

Continue reading Pakistan – Drowned, sinking deeper in debt

China: Growing Strikes, Corruption and Debt are Harbingers of coming Revolution

Written by Daniel Morley and Congyue Dai

Six months into China’s new Politburo Standing Committee under Xi Jinping’s Presidency, it has become abundantly clear that the next ten years under his rule will not resemble the relative social stability and rapid growth of the past ten years. The cart will not keep on rolling down the same path. Xi Jinping and the Chinese Communist Party stand at a crossroads, facing that classic dilemma of all ruling classes – either to open up to democratic reform or clamp down on growing dissent?

Underneath the bland, controlled and seemingly unchanging edifice of Hu Jintao’s Presidency China has been anything but unchanging. Millions have joined what is by far the world’s largest proletariat and started producing more and more commodities. Of particular interest to Marxists is the rebirth of the Chinese labour movement which is growing in confidence and organisation day by day. This fact is of infinitely greater significance in determining the new regime’s approach to reforming itself than the pleas of enlightened liberals.

According to China Labour Bulletin (CLB), the three months from June to August 2013 saw 183 strikes, 7% up from the previous three months and more than double the amount in the same period in 2012!

Read more » http://www.marxist.com/china-strikes-corruption-debt-harbinger-of-revolution.htm?fb_action_ids=739718982710238&fb_action_types=og.likes&fb_source=other_multiline&action_object_map={%22739718982710238%22%3A159396910938122}&action_type_map={%22739718982710238%22%3A%22og.likes%22}&action_ref_map=[]

Deadly debt trap

The only way to come out of prevalent economic mess is to accelerate growth and enhance tax revenues

By Huzaima Bukhari & Dr. Ikramul Haq

Pakistan trapped in deadly ‘debt prison’ needs concentrated short and long term efforts to come out of it. Unfortunately, till today no workable plan and viable strategy is devised by the government or any political party in opposition to tackle the issue. The debt burden — Rs14.5 billion internal and $60 billion external — is becoming unmanageable as major resources are consumed by debt servicing. The budget allocation of Rs1.52 trillion for retiring public debt and payment of interest during fiscal year 2013-14 would prove short as there was surge of Rs180 billion in external debts alone during July 2013.

On July 29, 2013, the rupee recorded its lowest value against the dollar: Rs102.4 in the interbank market, Rs104.7 in open market, but actual rate was Rs105.5. Continuous slide of the rupee is not merely due to widening demand-supply gap or maneuverings by unscrupulous elements. Other factors are external debt repayments of around $1billion and speculations about official devaluation in the wake of IMF bailout.

Devaluation will have devastating effects e.g. tremendous surge in public debt (one rupee loss in the exchange rate adds Rs60 billion to public debt), enhancement in debt servicing, further widening of fiscal deficit and more expensive imports, especially of crude oil raising cost of all goods and services.

Already huge debt servicing is taking a heavy toll on economy — fiscal deficit for financial year 2012-13 jumped to 8.8 per cent of GDP as shortfall on the part of Federal Board of Revenue (FBR) alone was Rs442 billion. The fast depletion of foreign exchange reserves — from $14.776 billion in July 2011 to $5.153 billion by July 2013 — aggravated the situation. Heavy repayments to the IMF and others plus financing of current account deficit amounting to $2.3 billion in 2012-13 forced the new government to approach the IMF for a bailout package.

The situation on internal debt is equally disturbing. The government, for the first time in the history, borrowed from local banks Rs one trillion during the fiscal year 2012-13. The net government borrowing from domestic banks increased to Rs1.012 trillion between July 1, 2012 and June 28, 2013 against Rs629.9 billion over the same period last fiscal year. The federal government borrowed Rs1.005 trillion for budgetary support as compared to Rs696.5 billion during the corresponding period fiscal year.

The reckless and unabated borrowing from commercial banks is not only retarding growth but also depriving private sector of the much-needed funds for investments. It is but also forcing State Bank of Pakistan (SBP) to inject heavy amounts of liquidity in the banking system through frequent open market operations as high borrowings wipe out liquidity from the money market.

The only way to come out of prevalent mess is to accelerate growth, generate employment, enhance tax revenues, and stop financing luxuries of elites and losses of public sector enterprises (PSEs). But the present government, like the PPP-coalition government, is not serious about it. During its election campaign, the Pakistan Muslim League-Nawaz (PML-N) made tall claims that on assuming power it will get rid of the “cancer of external debts”.

Continue reading Deadly debt trap

The Real Numbers: Half of America in Poverty — and It’s Creeping toward 75%

The Census Bureau has reported that one out of six Americans lives in poverty. A shocking figure. But it’s actually much, much worse.

The Census Bureau has reported that one out of six Americans lives in poverty. A shocking figure. But it’s actually much worse. Inequality is spreading like a shadowy disease through our country, infecting more and more households, and leaving a shrinking number of financially secure families to maintain the charade of prosperity.

1. Almost half of Americans had NO assets in 2009

Analysis of  Economic Policy Institute data shows that Mitt Romney’s famous  47 percent, the alleged ‘takers,’ have taken nothing. Their debt exceeded their assets in 2009.

Continue reading The Real Numbers: Half of America in Poverty — and It’s Creeping toward 75%

U.S. Bonds Cheapest Since 1990

U.S. Bonds Cheapest Since ’90 Versus Bunds Counter Buffett

By Cordell Eddings

The longest decline in Treasuries this year has left U.S. government debt the cheapest since March 2011 when measured by real yields and the best relative value compared with German bunds in more than two decades.

After inflation, 10-year U.S. notes yielded 0.91 percent last week, or 1.77 percentage points more than real yields on U.K. gilts, the widest spread in 25 months. Versus Germany, the securities are the least costly in 23 years when adjusted for the recent record-low interest rates around the world that distorted the normal relationship, according to FTN Financial.

Federal Reserve Chairman Ben S. Bernanke is counting on Treasuries to contain borrowing costs as the central bank buys $85 billion a month in securities to sustain the economic recovery that lifted U.S. consumer confidence to the highest in almost six years. The better relative yield for U.S. bonds may help bolster demand even as Warren Buffett said this month that he pitied fixed-income investors because of about record-low interest rates.

Read more » Bloomberg
http://www.bloomberg.com/news/2013-05-19/u-s-bonds-cheapest-since-90-versus-bunds-counter-buffett-pity.html

Pakistan’s economy Plugging leaks, poking holes – Who will pay for Pakistan’s state?

PAKISTAN’S national poet, Muhammad Iqbal, believed the subcontinent’s Muslims needed to unite if they were to prosper. Without a strong sense of nationhood, he wrote, “mountains become straw and are blown away in the wind”.

Poetry and taxes do not often mix. But those melancholy lines grace an analysis of Pakistan’s fiscal plight by Ehtisham Ahmad of the London School of Economics. The country’s tax revenues have collapsed. Its debt is almost certainly unsustainable without outside help. And yet Pakistan does not pull together. “Textile lobbies, the urban gentry, traders and agriculturists, all point to the other and say: Tax that group first, but do not tax me,” Mr Ahmad writes.

The tax authorities can identify a mere 768,000 individuals who paid income tax last year. Even fewer—just 270,000—have paid something in each of the past three years. That is one reason why Pakistan’s tax revenues amounted to only 9.1% of GDP in the latest fiscal year, one of the lowest ratios in the world (see chart). These are exceedingly narrow shoulders on which to rest a nuclear-armed state of 180m people. The culture of cheating starts at the top. Most members of parliament, many of them conspicuously affluent, do not file tax returns.

In the months before an election, due by May, the government of President Asif Zardari of the Pakistan Peoples Party (PPP) is proposing a controversial remedy: an amnesty for evaders. They will be invited to wipe the slate clean with a one-off payment of only 40,000 rupees ($400). The government says it is a quick way to resuscitate the public finances and expand the tax net. Its critics see the amnesty as a boon for politically connected crooks.

Continue reading Pakistan’s economy Plugging leaks, poking holes – Who will pay for Pakistan’s state?

Pakistan is defaulting on sovereign debt

Power sector dues: Govt defaults on sovereign guarantees

By Shahbaz Rana

ISLAMABAD: Failure to honour its financial commitments to Independent Power Producers (IPP) has led to the first-ever sovereign default by the government in Pakistan’s history.

The default on sovereign guarantees – assurances the government provides to foreign investors – may not only unnerve the financial markets, but also downgrade the government’s creditworthiness, making it more expensive to borrow money.

“Today, the government of Pakistan has committed a sovereign default for the first time in the history of the country”, announced the IPPs Advisory Committee here on Tuesday.

“The government has defaulted on payments of roughly Rs45 billion to nine IPPs that generate 1,700 megawatts of electricity”, said Abdullah Yusuf, Chairman IPP Advisory Committee while talking to The Express Tribune. These nine IPPs started operations in 2004 and their total receivables amount to almost Rs232 billion.

Taking legal course

The IPPs gave a 30-day payment notice to the power purchaser, the Central Power Purchasing Agency (CPPA), followed by a 10-day notice to the government. Neither the CPPA nor the government cleared the overdue amounts, said the advisory committee.

The IPPs have exhausted all avenues available and the notice served to the government expired on Tuesday, the committee said.

After the default, the IPPs have issued a legal notice to the government for recovery by Thursday, May 10th, 2012 failing which the IPPs will follow a legal course.

Yusuf said the IPPs will go to the Pakistani courts.

“The default is a very serious matter and carries negative implications for the country”, Yusuf added. ….

Read more » The Express Tribune

Clinton: U.S. must put economics at center of foreign policy

By CNN Foreign Affairs Correspondent Jill Dougherty

(CNN) — The United States must position itself to lead in a world “where security is shaped in boardrooms and on trading floors — as well as on battlefields,” U.S. Secretary of State Hillary Clinton will say Friday in a major economics and foreign policy speech in New York.

Economic forces, Clinton will say, are transforming foreign policy realities around the globe.

“We have seen governments toppled by economic crisis,” a text of the Secretary’s remarks released by the State Department on the eve of the speech reads. “Revolutions born in a Tunisian marketplace have swept across an entire region. Europe faces its strongest test in a generation, thanks to recession and debt. And everywhere I travel, I see countries gaining influence not because of the size of their armies, but because of the growth of their economies.”

Clinton will say she is updating U.S. foreign policy priorities to include economics “every step of the way,” suggesting the United States should take a cue from the leaders of emerging powers like India and Brazil who put economics at the center of their foreign policies.

“When their leaders approach a foreign policy challenge — just as when they approach a domestic challenge — one of the first questions they ask is, ‘how will this affect our economic growth?'” the text of the speech says. “We need to be asking the same question — not because the answer will dictate our foreign policy choices, but because it must be a significant part of the equation.”

In the address before the Economic Club of New York, the fourth in a series of speeches Secretary Clinton is giving on economics and foreign policy, she will say the world’s “strategic and economic center of gravity is shifting east” and the United States is focusing more on the Asia-Pacific region.

“One of America’s great successes of the past century was to build a strong network of relationships and institutions across the Atlantic,” she says. “One of our great projects in this century will be to do the same across the Pacific.”

The United States should help other countries find economic solutions to strategic challenges, especially in the Middle East and North Africa, she says. “We need a sophisticated effort to integrate the region’s economies, promote investment and assist in economic modernization. The Arab political Awakening must also be an economic awakening.”

Clinton takes aim at Americans who would turn inward, arguing “you can’t call ‘time out’ in the global economy. Our competitors aren’t taking a time out, and neither can we.”

Increasingly, the United States is focusing on “tracking and thwarting” the financiers of terrorism, using sanctions and other economic tools to cut repressive regimes off from insurance, banking and shipping, Clinton says.

Finally, Clinton says, the United States is “modernizing (its) agenda on trade, investment and commercial diplomacy to deliver jobs and growth for the American people.”

But the United States cannot compete, she says, if it is frozen in domestic political fights.

“Washington has to end the culture of political brinksmanship — which, I can tell you, is raising questions around the world about our leadership.”

Courtesy: CNN

Occupy Wall Street rediscovers the radical imagination

– The young people protesting in Wall Street and beyond reject this vain economic order. They have come to reclaim the future

• Police tactics attacked as officers pepper-spray women
• Occupy Wall Street: the protesters speak

by

Why are people occupying Wall Street? Why has the occupation – despite the latest police crackdown – sent out sparks across America, within days, inspiring hundreds of people to send pizzas, money, equipment and, now, to start their own movements called OccupyChicago, OccupyFlorida, in OccupyDenver or OccupyLA?

There are obvious reasons. We are watching the beginnings of the defiant self-assertion of a new generation of Americans, a generation who are looking forward to finishing their education with no jobs, no future, but still saddled with enormous and unforgivable debt. Most, I found, were of working-class or otherwise modest backgrounds, kids who did exactly what they were told they should: studied, got into college, and are now not just being punished for it, but humiliated – faced with a life of being treated as deadbeats, moral reprobates.

Is it really surprising they would like to have a word with the financial magnates who stole their future?

Just as in Europe, we are seeing the results of colossal social failure. The occupiers are the very sort of people, brimming with ideas, whose energies a healthy society would be marshaling to improve life for everyone. Instead, they are using it to envision ways to bring the whole system down. ….

Read more → guardian.co.uk

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via → guardian news blogYouTube

Whither Pakistan

by Syed Ehtisham

Excerpt:

The leadership of the Muslim League came mostly from provinces which were not parts of Pakistan. Jinnah, like all autocrats did not tolerate difference of opinion and had excluded the bright and the intelligent like Suharwardy and Fazal Haque while promoting Liaquat and Nazimuddin …

…. Jinnah, in a singularly misconceived move towards national integration, declared that Urdu and only Urdu will be the official language of Pakistan. That, I believe, was the first nail.

Jinnah, while he lived, kept all the levers of power in his hands. Liaquat, PM in name, did not even enjoy the powers White House chief of the staff does.

Jinnah died. Liaquat did not have the authority to embrace his legacy. The power brokers in West Pakistan would not allow the drafting of a constitution which would give representation proportional to the population of East Pakistan. I recall mullahs gave the argument that if you took out 20% of the population of the East who were Hindus, the numbers between the two wings would be equal. Some even suggested that Hindus be made to pay Jazya. Finance minister Ghulam Muhammad pointed out that they would in that case be exempt from taxes. That shut the mouth of the religious lobby.

Liaquat was reduced to offering a basic principles resolution (Qarardad e Maqasid), which declared Pakistan to be an Islamic State. That put paid to Jinnah’s legacy of separation of faith and state. ….

…. Yahya arranged an election on the basis of adult franchise. Mujib got overall majority and could garner two third majority with the help of smaller provinces. There was no problem with making Mujib the PM, except personally to Bhutto, but he wanted autonomy of the kind Jinnah had insisted on in pre-independence India. ….

….. Pakistan was further burdened by immense military expenditure, which necessitated an unholy mass of debt. All nation building measures remained in the limbo. Infra-structure, education, health, research and industry remained stunted. ….

To read complete article : ViewPoint

Will Pakistan Follow Egypt’s Example?

Author: Jayshree Bajoria, Senior Staff Writer

Pakistan may be even more vulnerable than Egypt (The News) to popular discontent, with higher inflation, unemployment, and external debt, much of it exacerbated by the devastating flood of 2010 that crippled an already teetering economy. Many Pakistanis are sympathetic (PressTV) to the anger over corruption, surging food prices, and lack of jobs driving Egypt’s protests.

Pakistan’s Prime Minister Yousaf Raza Gilani rules out the likelihood of an uprising such as those in Egypt and Tunisia. “Our institutions are working and democracy is functional,” Gilani says (Daily Times).

Huma Yusuf, a Pakistan scholar at the Woodrow Wilson Center in Washington, says it is unlikely Pakistanis will unite against a common cause. “Decades of manipulative politicking under military regimes have fractured civil society (Dawn) and factionalized politics,” she writes. “We will always see ourselves through an ethnic, sectarian, or socio-economic lens before we see ourselves as Pakistani.” The murder of Pakistan’s Governor Salman Taseer by his own security guard in January, and support for Taseer’s assassin among many Pakistanis, exposed some of these growing divisions.

Like Egypt, Pakistan is an important strategic partner whose stability matters even more for U.S. national security interests, in neighboring Afghanistan as well as in U.S. efforts to confront al-Qaeda. But U.S.-Pakistan relations have been strained following the detention of a U.S. diplomat on possible murder charges. The Washington Post reports the Obama administration has suspended all high-level dialogue with Pakistan.

Read more : Council on Foreign Relations

Pity Pakistan is close to imploding?

Jesters and destinies —Mir Mohammad Ali Talpur

Whenever armies become unanswerable to the state and become a ‘deep state’, the irreversible rot sets in and results in the disintegration of the state they are supposedly safeguarding and protecting.

In his book, The History of the Decline and Fall of the Roman Empire, Edward Gibbon (1737-1794) tells about a Roman emperor who, angered by the actions of his favourite jester, orders that he be put to death. The jester, hearing this, mournfully shakes his head and says that a wish of his would remain unfulfilled. Inquisitive, the emperor inquires and after some persuasion the jester tells that he has the knowledge and the ability to teach the emperor’s favourite black stallion to speak.

The emperor asks how long would it take and is told a year is enough. The death sentence is temporarily waived and the condemned jester allowed to fulfil his promise. The jester’s well-wishers tell him that he has committed a great folly as there was no way that he could make the stallion speak. He replies, “There is a possibility that in the intervening time I may die a natural death or maybe even the emperor could die and I would be free. Moreover, a year is long enough a period; who knows, the black stallion may learn to speak.”

Sixty-three years are a long enough period to change destinies but it seems the jesters here who took up the task were incompetent, corrupt and dishonest to the core, whose concept of a tryst with destiny remained limited to accumulating power and pelf for their dynasties. They neither had compassion for the people nor the wisdom to understand that they were establishing the groundwork for the eventual catastrophe. They felt if they could muster the support of their various masters and mentors for undisputed authority and power to rule, then for all intents and purposes the masses and their problems were irrelevant. They simply ensured by deceit and fraud that loans would continue to pour in to make their lives luxurious even if that meant burdening the people with irredeemable debts. These jesters have brought this place to this pass and the only route open is the way down. …

Read more : Daily Times

Pakistan nears bankruptcy, yet its Army poaches most of the resources of the nation

As Pakistan nears bankruptcy, patience of foreign lenders wears thin

BY GRAEME SMITH

ISLAMABAD — A terrifying kind of mathematics has become popular among aid workers, analysts and others who spend their lives tracking the fate of Pakistan. It’s a back-of-the-envelope calculation about how the country will get through the coming years without declaring bankruptcy: take the country’s foreign debt ($53-billion), add interest, subtract the $1.8-billion that won’t arrive as scheduled on Jan. 1 from the International Monetary Fund because Islamabad failed to meet loan conditions. Add the staggering cost, perhaps $10-billion, of rebuilding after summer floods.

The numbers seem bleak. The government floated the possibility last week of running a deficit for the coming year of $15-billion.

Islamabad’s latest plan to raise revenue, a reformed tax law, has become bogged down by stubborn opposition parties, front-page criticism and street protests. The cabinet’s economic team is threatening to quit.

Pakistan needs a bailout. But is the country still a good investment?

“That’s the conversation people are having now, about whether you’d be throwing good money after bad,” said Mosharraf Zaidi, a development expert and policy analyst based in Islamabad.

The international community has accused Pakistan of poor financial management for years. Cables recently posted by the website WikiLeaks show a U.S. intelligence official complaining in 2008 about the country’s preference for spending money on strategic military hardware instead of development: “Despite pending economic catastrophe, Pakistan is producing nuclear weapons at a faster rate than any other country in the world.” …

READ MORE : Globe and Mail

Loadshedding in Pakistan

Pakistan is facing the darkest period of its history. This is because of the improper management of different Governments of Pakistan. The government slogans of Food, Shelter and Employment seems to be invain.
The load shedding (Blackout) has emerged to be the greatest cause of trouble for the residents of Pakistan . It is observed that 1/3 of the day the electricity remains off. The residents can’t work properly, can’t sleep properly. Ultimately they remain disturbed in every walk of life. There is need to put forward our efforts for the betterment of this problem.