Throughout history, the Islamic Republic of Pakistan has institutionalized corruption, violence, terrorism, and Jihad in the World. From the start, the rogue state of Pakistan was in self-destruction mode. Time and again, Terroristan fell in the same grave that it dug for India. To harm India, the rouge nation followed self-destructive policies and now it is in a state of decay. Already mortgaged itself to its Chinese masters, Pakistan has now resorted to selling itself.

Ordinance to sell assets

Reports suggest that in a desperate move to save itself from bankruptcy, the Pakistani government has passed an ordinance to sell state assets to foreign countries on an emergency basis.

The Inter-Governmental Commercial Transactions Ordinance 2022 enables the central government of Pakistan to issue binding instructions to regional governments for the sale of assets.

According to the provision of the ordinance 2022, the federal government may issue appropriate directions to a provincial government, local government, agency, or authority concerned to implement the objective of the inter-governmental commercial transaction including land acquisition, rehabilitation, and resettlement, provision of utility services, construction of approach roads to the main highways and such other activities of similar nature.

The ordinance transgressing the judicial powers of courts bars them from hearing the subject matter of asset sales. The ‘Bar of Jurisdiction’ clause of the ordinance states that “No court shall entertain an application, petition or suit against any process or act undertaken or done, intended or purported to be undertaken or done under this ordinance”.

The content of the ordinance shows the frustration and desperation of the Pakistani central government. The ordinance has effectively bypassed every principle of natural justice. As the ordinance prohibits every authority of the state to proceed or inquire about the subject matter of the ordinance, it seems to create an order of the dictator.

Under the clause Indemnity, the ordinance seeks to prohibit the investigating powers of an investigating agency, anti-graft agency, law enforcement agency, or a court for any procedural lapse or irregularity by any person in a commercial transaction or agreement.

The ordinance has effectively passed the Companies Act 2017, Privatization Commission Ordinance 2000, the Public Procurement Regulatory Authority Ordinance 2002, Public-Private Partnership Authority Act 2017, Securities and Exchange Commission of Pakistan Act 1997, and Securities Act 2015.

Imran Ahmed Khan Niazi, the former Prime Minister of Pakistan, criticizing the ordinance said, “How can Imported government brought to power through US conspiracy, led by Crime Minister, who is family along with Zardari have volumes written on their corruption, be trusted with the sale of national assets and that too through bypassing all procedural and legal checks.”

Equating the Prime Minister with thieves, he further said, “These people have been plundering Pak for the last 30 years and are now responsible for the present economic meltdown. These thieves should never be allowed to sell our national assets in the devious manner they are attempting. The nation will never trust them with our national assets.”

Bankruptcy moment for Pakistan

Increasing commodity prices in the international market and looming recession have strangulated the Pakistani economy. Already hit by the Covid pandemic lockdowns, Pakistan’s economy moved towards complete destruction after the Russian attacks on Ukraine.

As the world is moving towards recession, the country’s currency fall has further aggravated the situation. Pakistani rupees falling flat against the US dollar have devalued to about 4100 percent since May 1972. The value of one US dollar in May 1972 was about 4.76 rupees and now it has reached about 225 per dollar.

Moreover, the cloud of bankruptcy has also brought the situation of desperation. On December 5, 2017, the government of Pakistan issued an Islamic bond worth $1 billion at a yield rate of 5.625 percent for 5 years. The bonds are going to mature on 5 December 2022 at a whopping 27 percent. In this scenario, if the country defaults on the bond payment, the investment sentiments will further deteriorate and the Islamic Republic of Pakistan will move in the direction of Sri Lanka.

Pakistan available for sale

To save itself from the curse of bankruptcy, Pakistan wants to clear its previous debt by incurring the new debt and selling the national assets. As friendly countries like the United Arab Emirates, China, Saudi Arabia, and the US have refused to infuse cash into Pakistan’s economy due to its inability to return the previous loans, Pakistan now has no other option than to sell its assets.

Although the country does not have anything substantive to sell as the strategic port of Gwadar has already been leased out to China for 50 years, Pakistan will be selling its airports, highways, power plants, oil and gas companies, and other state-owned assets.

It is also important that the available ratings of these companies are decreasing and buying them would enable buyers with other liabilities. So, many countries and companies would be reluctant to buy them. Further, considering the procedural and other deficiencies in the ordinance, the aim would be to sell these assets to its all-weather friend, China. As China has deep-rooted business in Pakistan, the buyout would effectively make the Islamic Republic, a colony of China.

Pakistan can declare bankruptcy any moment now

A country’s economy is directly proportional to the politics of a state. The growth of businesses & industries needs political stability and a conducive environment for investment. But when a state like Pakistan itself institutionalizes corruption, violence, terrorism, and Jihad then not only does investment sentiment decrease but the domestic business opportunities also get killed. This further gives rise to inflation, unemployment, stagnation, and debt ultimately leading to bankruptcy.

Pakistan is on the verge of bankruptcy

According to a news report published in the Pakistani news portal The News, Pakistan’s default risk surges as foreign exchange reserves are rapidly depleting and due to the floating rate of interest, the bond yield is skyrocketing.

Reports suggest that on December 5, 2017, the government of Pakistan issued an Islamic bond worth $1 billion at a yield rate of 5.625 percent for 5 years. The bonds are going to mature on 5 December 2022 at a whopping 27 percent. Further, the State Bank of Pakistan has stated that before end-June 2022, Pakistan owes $4.889 billion to the market.

Moreover, the liquid foreign exchange reserves of the country are down to $10.1 billion. With a budgetary deficit approaching Rs 5 trillion and a current account deficit reaching $20 billion is on the verge of declaring sovereign default.

Politics Induced Bankruptcy

A sovereign default means a country cannot repay the borrowings on time. Pakistan’s state of financial situation is suggesting that the country is in a dire condition of financial difficulties. Leave the repayments of earlier borrowings aside, it does not even have sufficient reserves to import basic amenities like food or fuel in coming times.

Although the Sri Lankan financial crisis was induced by the agricultural policies and pandemic difficulties. But Pakistan has dug its own grave by dictating its policies in terms of religion. Influencing every policy through the lens of religion and selling their soul in the Indian hate has resulted in the bankruptcy of Pakistan.

In their hatred towards India, they continued to export terrorism which resulted in instability in their own country, further ruining the country’s business growth despite its strategic geographical location around the globe. Further, in an arms race with India, they developed weapons of mass destruction but could establish the mass feeding industries.

Sold souls to foreigners

Blinded by foreign aid, Pakistan aided the world’s two most powerful countries in their conquest of South Asia. The country focused on military development but completely ignored its business infrastructure. The instability during the Cold War era & continued fighting in Afghanistan further sank the development boat of Pakistan and the Islamic country missed the bus of the third industrial revolution.

After the US, they held the hand of the Chinese. But the booming market of China did not help Pakistan to grow its industrial base. The country was used by China to advance its presence in the Arabian Sea and made Pakistan a satellite state for their personal gain. Although they made a strong nexus of the military against India, Pakistan remained a serf of China. The paper dragon did not let the Islamic republic stand on its own. Now, once again the Islamic State is on the verge of missing the bus of the fourth industrial revolution.

The Islamic Republic of Pakistan throughout history (since 1947) remained a satellite state and every policy of Pakistan was decided in the bedroom of America & China. Which never let the country realize to stand on their own and learn the basic policy of a modern state to live for their own people, not kill others. And, now Pakistan has reached the situation of bankruptcy where they can’t feed their own people despite being the ‘closest friend’ of the world’s second-largest economy, China.

References:

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