Understanding and combating terrorism

Huzaima Bukhari & Dr. Ikramul Haq

 

The blatant act of terrorism in Islamabad on September 20, 2008 targeting Marriott Hotel jolted the entire nation and world at large. This raised some important questions about the future shape of ‘war on terrorism’ and survival of modern day societies. Human societies secured freedom from political, economic and socio-religio shackles that have bound men for many centuries after a strenuous and protracted struggle during the last century. The 9/11 and subsequent incidents are creating serious apprehensions of losing freedom by these societies by every passing day. Terrorism like fascism is a self-destructive ideology.  If we want to fight terrorism we will have to understand it. Wishful thinking about military might and invincible air strike power will not help to win the war against something that relates to human behaviour. Use of brutal and ill-directed force against a few groups, dubbed as terrorists by United States and some of its blind allies, without eliminating the causes leading to “terrorism”, will be inadequate and self-defeating exercise in futility.

 

Humanization of world societies is the only effective tool to eliminate terrorism. Use of force and denial of peoples’ legitimate rights on the contrary is bound to provoke more terrorist acts around the world. The violent incidents in Afghanistan, Kashmir, Spain, London, Ireland, Iraq, Palestine, Beslan and elsewhere are self-evident. The doctrine of right of pre-emptive strikes and attack is only a short-term solution. In the long-term, the governments of the world will have to sit down and chalk out a comprehensive strategy to ensure that miscreants are dealt with a strong hand without disturbing the peace and tranquility of individual societies and the world as a whole. The most important question faced by humanity in the aftermath of 9/11 is whether we are afraid of freedom or want to preserve it for our future generations. All the terrorist attacks constitute a strike against freedom but at the same time are reflective of callous attitude of those who claim to be self-appointed guardians of free world, human rights, faith and freedom. In a unipolar world, after the debacle of communist oligarchy, the responsibility of western democracies increased manifold to assure the rest of the world that absolute power in their hands does not mean high-handedness towards others.

 

The mankind after much struggle and paying a heavy price learnt the principles of economic liberalism, political democracy, religious freedom and individualism in personal life. There are now certain forces having vested interest to push the mankind back towards the dark ages when inalienable fundamental rights were denied by the authoritarian rulers. There are debates inside the USA and elsewhere pinpointing the erosion of civil liberties on a massive scale in the name of defending the Frontiers of Freedom. Terrorism surfaced as a reaction towards growing “fascism” on the part of certain States is a human problem which needs to be understood. The analysis of character structure of a man is at the core of understanding the rising phenomena of fascism, fanaticism, fundamentalism and terrorism [which includes state terrorism]. The economic imbalances within a society and from global perspective, revival of religious movements (primarily a camouflage to manifest certain political aims) and imposition of will of the mighty on the weak have all given rise to what culminated in the shape of 9/11 in 2001 and events thereafter which have created worldwide turmoil and reign of fear.

 

Freedom of expression per se has been considered as sufficient fulfilment of the need to achieve a democratic society. The fall out of this fulfilment appears to be a misconceived notion on the part of individuals and groups that freedom of speech ipso facto gives them an authority or a license to impose their own ideas on others using money, power and physical force as means. They are not only intolerant towards others’ views but also suffer from the misconception that their ideas are the only truth through which the world can be changed into a wonderful place. The terrorists think their way of thinking is the correct version of life and the so-called defenders of freedom [who in substance are reincarnated fascists] are of the view that they hold the ultimate truth. Neither side is ready to open a dialogue. Both the sides have a non-comprising attitude when matter comes to ideology. This growing authoritarian thinking has led to a perpetual confrontational world in the 21st Century. In all the tumultuous areas in the world the main reason for unresolved disputes is this stubborn attitude on the part of the parties in conflict.

 

Lack of rationalism on the part of the powerful to be fair towards the powerless has converted our world into a place full of misery, destruction and unhappiness. The frustration of the powerless gets its vent in ghastly acts of terrorism and destruction. If we want to change this situation drastically, a balance has to be struck between the powerful and the powerless. If a large segment of the world lives in a state of powerlessness, the powerful will always remain the target of hatred and attack. The powerful want to transform the world as a machine where all others act as a cog while he has the master control. The cogs have their own way to develop malfunctioning to deprive the master from its absolute control.

 

This authoritarian thinking on the part of the powerful and mechanism adopted by him e.g. imposing economic sanctions is most illogical and irrational way to fight a war against fundamentalism and terrorism. The oppressed and powerless have their peculiar ways of reacting, which by no means can be expected to be according to the norms of internationally agreed principles. Their destructive tendencies (suicide bombings) are symptomatic of a sick world order. Our world is fast emerging as an authoritarian State reminiscent of fascist systems of the last century practices in Germany and Italy where the dominant role of authority in social and political structure rests with the dictators. The revival of dictatorial State orders in the name of security needs is a step towards fascist systems. On global level, there are now open expressions of superior and inferior statuses while entering into relations with different States and blind admiration of the unipolar force. This is like pushing the entire World to Ground Zero.

 

In devising military strategies to fight the forces of fanaticism and terrorism, the people at the helm of affairs should not overlook the human side of the whole problem. Freedom and democracy are inseparable. The right to express our thoughts clearly means something only if we are able to have thoughts of our own. If the media and state machinery is shaping the thoughts of everybody then where is freedom of expression? If one does not have his own thoughts what does democracy mean?  If the shape of the world is to be determined by a handful of people having known economic interests [who want to make oil and political maps right] then of what need is freedom for the common man? In the wake of 9/11 there is skepticism and cynicism towards everything. The future of freedom and democracy is at stake.

 

Looked at superficially, people in various societies may appear to be functioning satisfactorily in economic and social life: yet it would be dangerous to overlook the deep-seated unhappiness behind that comforting veneer. The loss of substantial human lives in brutal attack at Marriott Islamabad (named Pakistani 9/11) and atrocities committed by drone bombings in various parts of the country resulting into death of innocent civilians are interlinked, painful action-reaction chain. Human despair in the wake of these gruesome happenings is not an isolated individual experience of a community but a world-wide feeling on a political scale where dominant thought is losing of freedom at individual level at the hands of forces of obscurantism and fanaticism, which lack sanity and respect for human life. Those who are encountering it with military might are equally mindless of the fact that suppression of individuals and governments cannot win any agenda against terrorism. Erich Fromm in Free of Freedom rightly concluded, “The victory over all kinds of authoritarian systems will be possible only if democracy does not retreat but takes the offensive and proceeds to realize what has been its aim in the minds of those who fought for freedom the last centuries. It will be triumph over the forces of nihilism only if it can imbue people with a faith that is the strongest the human mind in capable of, the faith in life and in truth, and in freedom as the active and spontaneous realization of the individual self”.

 

The same is true for victory against terrorism. In order to secure triumph over the forces of destruction and disruption, the people will have to unite and convince the fellow human beings of faith in life, freedom and truth as the active and spontaneous realization of individual self. This in possible only in a world that is free of authoritarianism, exploitation and injustice.

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The writers (ikram@huzimaikram.com) are researchers, legal historians, tax advisers and authors of many books on tax laws, narco-terrorism, global heroin economy and socio economic problems relating to our present day international society.

 

 

Remembering March 9, 2007: Revival of Constitutionalism

Huzaima Bukhari & Dr. Ikramul Haq

March 9, 2007—Day of Defiance— will always be remembered as an historic occurrence in the annals of our country. Events which followed that day, however, can best be termed as nothing but chaotic and disturbing. The struggle for rule of law and constitutionalism in the wake of March 9, 2007 is still going on between the forces of change and defenders of status quo, trying to defeat each other with full vigour. On July 20, 2007 (another historic day when the judiciary declared action of sacking Chief Justice of Pakistan by Musharraf as unlawful) the restoration of Muhammad Iftikhar Chaudhry ushered in a wave of renewed hope in Pakistan for an independent judiciary. As expected, the forces that were hard hit by this restoration retaliated by imposing Martial law on November 3, 2007. But this time, a seven-member bench of the apex court declared this move as unconstitutional. In the history of Pakistan, it was the first most courageous action on the part of our judiciary—disapproving repeated subversion of the Constitution by men in uniform.

The establishment was bewildered and baffled. It could not expect such defiance from its own hand-picked judges. As usual, they employed the notorious Colonial policy of ‘Divide and Rule’ and managed to perpetuate its unlawful rule by getting endorsement of its unconstitutional actions from the puppet parliament (sic) and through pro-establishment judges. Shaheed Mohtarma Benazir Bhutto led all the political forces to exert pressure—using the lawyers’ movement—on the establishment to abdicate power and transfer it to civilians. This cost her, her own life. But her heroic struggle forced Musharraf to leave military post and hold elections. February 18, 2008 shattered all hopes of the King and his party to retain control over power. The establishment—on the behest of neo-colonial masters—decided to dump Musharraf and preserve status quo by hijacking Pakistan Peoples Party (PPP). Nawaz Sharif, oblivious of this Great Game, on March 10, 2008 signed the Murree Declaration with Asif Zardari, who later cheated him, but not before got himself elected as president. Few could comprehend and realise at that point of time that the establishment had decided to get back lost control through the auspices of Zardari.

We warned Nawaz and others well in time—much before the first session of National Assembly called by Musharraf on March 17, 2008. We suggested that soon after taking oath and formation of coalition government, the new parliament should table the following bills:

1. Bill for National Reconciliation Act 2008 (NRA)
In National Reconciliation Ordinance 2007 (NRO), 2007), Musharraf intentionally excluded cases registered after 12 October 1999 for ulterior motives to exclude Nawaz and Shahbaz Sharif. In order to create a genuine atmosphere of national reconciliation and put an end to political victimization, this new Act should be passed removing time-specific and person-specific provisions in NRO, 2007 extending its scope to all persons and also provisions in direct conflict with Constitution.

2. Bill for ‘Oath of Judges, Act, 2008’ (invalidating Oath of Office (Judges) Order 2007)
By Passing this Act, the National Assembly could pave the way for reinstatement of 2nd November 2007 Judiciary and nullify the judgement of apex court in the case of Tika Iqbal Muhammad Khan v General Pervez Musharraf and 2 others (PLD 2008 Supreme Court 6) holding that judges who were not given or refused to take oath under the Oath of Office (Judges) Order 2007 cease to be judges. With the passing of this Act, no judge in future could be removed through any executive order or through any law related to oath of judges.

3. Bill for ‘High Treason Act 1973 (Amendment Act 2008).
The National Assembly should amend High Treason Act, 1973 to the effect that in case of violation of Article 6 of Constitution, it would be incumbent upon the apex court to take immediate cognizance and direct the Attorney General of Pakistan to initiate trial of offender. Thus in future the apex court instead of validating violation of Article 6 would be legally obliged to punish the offenders.

Alas, as expected, our suggestions were ignored by all! What happened thereafter is obvious. Had the parliament sent a clear message to the imposer of emergency on November 3, 2007 to face trial for subversion of Constitution, removing judges and detaining them and their families, today Zardari would not have had the courage to impose Governor Raj in Punjab. Two years after March 9, 2007, we are still struggling for revival of constitutionalism. The intended Long March starting on March 12, 2009 leading to Dharna (sit-in) on Constitutional Avenue of Islamabad on March 16, 2009 is going to give a new excuse to the establishment to roll back the democratic political process. The game is well-planned, but our politicians appear in no mood to reconcile and foil this ugly design. On the contrary they are conveniently playing in the hands of Hidden Forces.

November 3, 2007 has proved to be a disgraceful day for our country. The ill-effects of that day’s event are still looming large despite the fact that people of Pakistan have given a loud and clear verdict against forces of status quo. It is the people’s will and power alone that can compel the usurper of power to renounce unlawful rule—as the lawyers’ ongoing movement in Pakistan has proved. Nowhere in the world has this task ever been performed by the judiciary. It is basically a political question and not a legal issue. Even if judiciary declares any coups detat illegal, how can it force the usurper to abdicate power? Judiciary itself has no power (physical) to get its orders implemented by force! The responsibility for failure of political leadership in Pakistan to counter intervention of civil-military bureaucracy cannot be shifted to the judiciary (though some individual judges have sided with usurpers). The result of lack of political wisdom of Pakistani leaders has been obvious—complete subservience before dictators, military or civil, hardly matters.

In the past, majority of the politicians, instead of leading the people and placing full faith in them, rather opted to win favours of the mighty in turn for unprecedented benefits. The same process continues in post-2008 election period. Political leadership is still treading on the old path and remains unwilling to work collectively for a sustainable democracy.

Behind the bizarre episodes of March 9, 2007, November 3, 2007 and February 25, 2009, there lurks a continuous struggle between the proponents of cronyism and advocates of rule of law. Pro-establishment forces, even in the wake of elections of 18th February 2008 want to subjugate their own people, deny them human rights and ensure that there is no room for judicial activism in this society as a means to empower the people. This is why Chaudhry Iftikhar and other independent judges are a great threat to them. They cannot afford independence of judiciary for obvious vested interests. The advocates of rule of law rightly argue that dispensation of justice through an independent and efficient judiciary alone can establish democracy, a responsible government and an equitable social order.

It is now the sole responsibility of democratic forces to galvanize and mobilize people to counter any extra-constitutional move by any present or prospective ruler. Courts are meant to interpret the law, whereas enforcing the will of people and countering any despotic rule is always a political question that cannot be resolved in the courts. Since our leadership has failed in the past on this account, the entire society is facing devastating effects of perpetual despotic rules—military and civilian alike. The main cause of our present day socio-political and economic chaos is ineffectual leadership, existence of inefficient, corrupt and repressive institutions, which are anti-people, thus least concerned with the welfare of the common man.

Imposition of Governor Rule in Punjab and ousting of judges, their house arrests and denying them right of free speech and movement are interrelated and should not be analysed in isolation. It shows that establishment still controls all the institutions—including the office of president. Even after 62 years of existence, we have miserably failed to abide by constitutional rule and democratic norms. At the heart of the concept of democracy is the assurance for the citizens that their affairs are going to be managed by a ‘Responsible Government’.
The constitution of a country is a living and vibrant document that determines the future direction of a nation, provided there is respect for the document and for rule of law. In a country where establishment controls all institutions, there can neither be democracy nor constitution. It is high time that the parliament should work for the supremacy of constitution and rule of law. In a democratic set-up, the electoral process ensures dominance of the people over those who hold political offices. In Pakistan, forces of status quo want to determine it through a president lacking support of the masses. This brand of ‘democracy’ is unknown to the students of constitutional law anywhere in the world. One wonders what useful purpose this unjust and unlawful process can yield! It is only bound to frustrate the verdict of people, forcing them to believe that the entire electoral process was just a farce. Earlier, Musharraf and his associates were challenging elected leaders on their promise of reinstatement of judges. Now Zardari has assumed the same role—this confirms dominance of establishment, its mind set and disrespect for people’s mandate.
Pervez Musharraf has portrayed himself In the Line of Fire as a great saviour of the nation, whereas the reality is that under his rule, the people of this country lost their lives in suicide bombings, deprived of basic needs and sufficient food what to talk of fundamental rights of access to free health and educational facilities, and dispensation of justice, things which are only possible under a true democratic structure. Attitude of Zardari and his cronies is not much different from any other dictator. Every dictator desires to perpetuate his unlawful rule proclaiming himself as the saviour of the nation and in this process destroys the very fabric of national cohesion.
It is now for the masses to resist the establishment and work for real democracy. Parliamentarians should work for the supremacy of the constitution in the country and all the state organs must discharge their functions within strict parameters and powers laid down in the supreme law of the land. This is the only way to sustain democracy, establish responsible government and protect the rights of masses guaranteed in the Constitution. Legislature is sovereign but the supremacy of constitution is above everything— legislators in fact exercise delegated powers given by the people within the framework of the Constitution. We need a new Pakistan where parliament is sovereign within which, the people of Pakistan are truly represented. To attain this goal, masses will have to demonstrate determination and unity. Pro-democratic forces, with the people’s strong support behind them, must wage an all-out war for establishing a representative and responsible rule, completely independent judiciary, responsible media playing positive role for vigorous accountability, socio-economic growth and justice for all.
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The writers, legal historians and authors of many books, are Visiting Professors at Lahore University of Management Sciences (LUMS).

2008: Year of wars and troubles

Huzaima Bukhari & Dr. Ikramul Haq

2008 has ended leaving behind many troubles and challenges—economic slowdowns, financial crises, rising unemployment, social distresses, regional armed conflicts and above all rapidly rising tide of cross-border terrorism.  At the fag end of the year, the world’s most worrisome melting pot remained Indo-Pakistan area as was the case in 2001—military buildups across the boarders and horrifying threats of war including nuclear strikes. From the Kargil misadventure of 1999 to Mumbai Carnage of 2008, both India and Pakistan witnessed many moments of “reconciliation” but each time certain hidden hands, using the ugly weapon of “cross-border terrorism”, damaged the peace efforts. These hidden hands—working simultaneously in both the countries—take dictations from their foreign masters, who arm, support and fund them. It is painful that leadership of both the states has miserably failed to counter these forces which always manage to dismantle normalization process between the two neighbouring but belligerent countries.

The root-cause of trouble in this region is “cross-border terrorism”, which has to be broadly defined to include state terrorism by India in Kashmir and use of force by occupant forces in Afghanistan. The issue of cross-border terrorism in this part of the world cannot be understood in isolation of the Great Game unleashed by imperialist and neo-imperialist forces in the historic perspective. The militant liberation movement in Kashmir and armed struggles by various groups in other states of India cannot be equated or compared with onslaughts of Jihadists in the wake of Talibanization of Afghanistan at the behest of forces that were keen to defeat the erstwhile communist USSR. Both India and Pakistan are victims of shortsightedness of policies they pursued in the aftermath of 9/11 by becoming allies of USA in the ‘war against terrorism’ (sic). They did not protest when the US started killing innocent civilians in Afghanistan in December 2001 by indiscriminate bombings under the pretext of annihilating Al-Qaeda operatives. In Bonn peace talks, the Taliban were kept outside, which was a grave mistake. Leadership of both the countries failed to take any lead in political settlement in the neighbouring Afghanistan. They did not ask UN mediators to marginalize Al-Qaeda by persuading moderate Taliban leaders to take part in the peace process and participate in future political setup. The ouster of Taliban from peace talks and brutal killing of innocent civilians in several villages in Tora Bora and near Gardez in December 2001 by US, sowed permanent seeds of hatred and revenge—this was the beginning of an unabated cross-border terrorism wave which has now turned into an insurmountable tsunami threatening the peace and tranquility of the entire region. 

Two nuclear states are now in a fix—captives in the hand of military hawks. The war-mongers on both sides are pushing things to an extent that paranoia of hate has begun to haunt the masses. Media is making things worse by over-publicizing, publishing and broadcasting irresponsible statements by imprudent politicians. The electronic media is vividly projecting war games and possible scenarios of mass destruction in the event of nuclear attacks. This shows deep penetration of war psychosis in both the countries—a lamentable attitude and nuclear mindset. There are some voices of sanity and peace-lovers across the borders, but they are weak and ineffective before the hawkish elements—agents of military establishments having control over state apparatus and popular media. Forces of terror and obscurantism are creation of those who exploited them for resisting Soviet occupation. They received generous American support, but in 1989, when Russian troops packed their bags and went home, American interest in Afghanistan waned. Once the Central Asian countries had become independent from the former Soviet Union in 1991, America concentrated its attention in the region on Soviet nuclear leftovers, the decommissioning of which it hailed as a great success. When the Taliban took over in 1996, the Americans did not seem overly concerned that the bearded rulers and their Al-Qaeda friends were supporting radical Islamic groups in Central Asia. Was CIA totally oblivious of Taliban-Al Qaeda nexus and their nefarious activities until 9/11? Why did the US government fail to counter their activities when they openly extended their actions into Africa and elsewhere? What lessons did the US learn when its embassies were bombed in Africa by Al Qaeda? What measures were taken to stop them when an Indian plane was hijacked in December 1999 from Katmandu and taken to Kandahar? How did the hijackers, agents of Osama Bin Laden manage to get freed, militants like Maulana Azhar and Ahmed Omar Sheikh from Indian jails? Why did US allow Musharraf for eight years to cheat everybody and keep on supporting the militants?   

The above questions and their answers will unveil the tragic happening of 9/11. George Bush and Dick Cheney had already planned, much before 9/11, invasion of Afghanistan and Iraq. They supported Musharraf et al for implementation of their agenda. Now Barak Obama, even before occupying the Oval Office, is also talking of controlling Afghanistan through increased military presence.  What is the significance of Afghanistan in the new Great Game?  The answer is simple. The hidden agenda of US and its allies in Afghanistan and elsewhere is to promote drug trade, religious fundamentalism and mass acceptance of their policies of fascism for self-interests and economic benefits. India and Pakistan fail to realise that they are being sucked into a death trap by these forces. Certain forces in both the countries are waging continuous proxy war, funding and arming extremists within each other’s territory. This dangerous game is engineered and controlled by CIA that forced Hamid Karzai to give free hand to Indian agents on Pakistan’s western borders. It is an open secret that CIA operatives with the help of India’s Research and Analysis Wing (RAW) have been funding the insurgency in Baluchistan. At the same time, these CIA agents are promoting a number of militant groups in Pakistan to help Maoists and other dissidents in India. The linkage behind troubles in both the countries is the same—US Central Intelligence Agency. Both the Indian and Pakistani governments are conveniently playing in the hands of their common enemy and ironically they are relying on US support.  For this occasion, Mir Taqi Mir, the great poet, very aptly said, Mir kai sada hain bemar huai jis kay sabab, usi attar kai londay se dawa latain hain (What a simple soul is Mir that he seeks prescription from the person who is cause of his illness). 

One wonders how easily our rulers are ignoring the obvious tentacles of the dirty game plan of the neo-colonial forces in this region. The main aim behind the bizarre scheme, prepared by neo-colonialists, is to push the armed forces of Pakistan to the wall using India as conduit, get the control of nuclear arsenals and use bogey of “Islamic terrorism” for the containment of China. George W. Bush Jr., now lame-duck President, before leaving the Oval, wants to ensure that the new man taking his place should have no option but to remain engaged in wars in various parts of the world. Ruthless bombing on the innocent civilians of Gaza on December 27, 2008 is evident of these nefarious intentions. One does hope that Indian and Pakistani leadership will understand this great conspiracy. It is high time Chinese, Indian and Pakistani leaders unite against the forces of neo-colonialism and foil their ‘Great Game’ plan. They must understand that “cross-border terrorism” is a ploy in the hands of US and its allies. It is the 21st century equivalent of the 19th century British gobbledygook.

American Late Neo-colonialism, as explained by Dr. Sachithanandam Sathananthan in his Great Game Continues, is using cross-border terrorism as political cover for intervening and, where necessary, invading resource-rich and strategic countries to overthrow nationalist leaders, install puppet regimes and savage the countries’ wealth. And of course the US is by far the most powerful terrorist force. This is the reality of “cross-border terrorism” and “war on terrorism”. The forces of obscurantism and imperialism appear to be real enemies, but in fact they are ‘friends-in-arms’ and their hidden agenda is to snatch away from the world, its peace and tranquility. The great challenge before the forces of peace is to get united for stemming the rising tide of terrorism, communalism, religious bigotry and obscurantism, which is designed, funded and controlled by neo-colonialist forces.

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The writers, historians, researchers and authors of numerous books, are visiting professors at Lahore University of Management Sciences (LUMS).     

 

Benazir Bhutto: Legacy of struggle

December 27, 2008 marked the first death anniversary of Shaheed Mohtarma Benazir Bhutto, the great visionary leader, who resisted with great courage the agenda of neo-colonial forces—pushing Pakistan to a theocratic State incapable of progressing towards an egalitarian and democratic polity. In recognition of her great services, she was awarded posthumously the prestigious UN Human Rights Award on December 10, 2008. The UN Human Rights Award is given every five years. This year’s award is special as it coincides with 60th anniversary of Universal Declaration of Human Rights.

Huzaima Bukhari & Dr. Ikramul Haq

Professor Amin Mughal, a doyen of progressive humanistic thinking and great scholar, in his remarkable paper, After Benazir Bhutto: Some reflections, read at a meet organised by Campaign against Martial Law, Khalili Lecture Theatre, SOAS, London on 15 January 2008, commented, “I confess, in the least uncharitable terms, that I was never fond of Benazir Bhutto. In fact, I was inimical to her politics. In death, however, she has redeemed herself. In the imagination of the masses she has acquired a mystical significance that is destined to be a never-ending source of inspiration in their struggles ahead. Most authentic martyrs in history were reluctant to die. All of them were, however, prepared to accept death. Benazir went further. Her detractors have accused her of being foolhardy. That is not true. She only embraced what she had in the last days of her life come to perceive to be her destiny. Hers was an act of courage steeled in deliberation and schooled in the imagination. It matters who killed her, but what matters more is that she knew she would be gunned down. Had she escaped death that day, the suicide bombers would have done her in sooner than later. Yet, she decided to take the risk. Again, it matters whether she died of the gun wound or was later levered down into death. But what matters more is that she was there, facing a possible killer. She did not flinch”.  This is perhaps the best tribute to martyr Benazir Bhutto we have read so far.

The act of great courage demonstrated by Shaheed (martyr) Mohtarma Benazir Bhutto praised by Amin Mughal and many others has changed the entire political scene of Pakistan for the worst. For resisting the agenda of forces of obscurantism—working on the dictates of neo-colonial masters—she lost her life. Her removal from the political scene paved the way for the United States to get rid of General Musharraf—a toady no more useful—and installation of elected elements more keen and willing to both toe and implement their agenda. A very few analysts and scholars have tried to view her assassination from this perspective. In her last book, Reconciliation: Islam, Democracy & the West, she “tried to trace the roots, causes, and potential solutions to the crisis within the Muslim world and the crisis between the Muslim World and the West”. Benazir, in this remarkable work has unveiled the agenda of neo-colonialists and the obscurantist. She has quoted extensively from Al Qur’an to prove that Islam is a religion of peace, but it has been brutally abused by a handful of extremists through out the Muslim history to create chaos and disorder. She traced the factors behind the militant Islam and exposed the colonial and neo-colonial forces behind it. These views must have hit hard and annoyed the forces that want to keep the Muslim World in dark ages for their nefarious designs.  They used their proxy—Islamic militants—to get rid of her.   

In the wake of her brutal and ruthless assassination—still shrouded in mystery—there was great euphoria among Pakistani liberals over the presumed ‘return to democracy’. Dr. Sachithanandam Sathananthan, a Visiting Research Scholar at the Jawaharlal Nehru University School of International Studies, in his paper, The Great Game Continues, noted with concern that “they are yet to discover ‘Late Neo-colonialism’.  He argues that removal of Benazir and thereafter, easily maneuvered victory for Asif Ali Zardari in the presidential election “brought to a high point the tortuous process of regime change in Pakistan. Anyone who has followed the ‘colour revolutions’ that installed pro-American rulers in Georgia (Rose Revolution, 2003), Ukraine (Orange Revolution, 2004) and Kyrgyzstan (Tulip Revolution, 2005) could surely not have missed the tell tale signs”.

The theory propounded by Dr. Sachithanandam gets credence in the wake of events taking place after the assassination of Benazir and culminating in the Mumbai carnage.   It is rightly highlighted by Dr. Sachithanandam that “the earliest foreboding surfaced in the backroom manoeuvres by United States (US) and British intelligence services to engineer panic about the security of Pakistan’s nuclear assets. It was a repeat of the duplicitous hysteria they generated over non-existent weapons of mass destruction that Iraq allegedly possessed. A carefully worded article, co-authored by former State Department officials Richard L. Armitage and Kara L. Bue, signalled the shift in US policy. After formally acknowledging then President Pervez Musharraf’s many achievements, the authors continued: ‘much remains to be accomplished, particularly in terms of democratization. Pakistan must…eliminate the home-grown jihadists…And…it must prove itself a reliable partner on technology transfer and nuclear non-proliferation.’ And the denouement: ‘We believe General Musharraf…deserves our attention and support, no matter how frustrated we become at the pace of political change and the failure to eliminate Taliban fighters on the Afghan border.’ Translation: Musharraf has to go”.

It was ‘Washington’s renewed interest’ in Zardari and Rehman Malik and not Benazir that forced Musharraf—once a close friend of Bush—to offer firm opposition to US Late Neo-colonialism to ravage Pakistan. According to Dr. Sachithanandam, “politically challenged Pakistani liberals — a motley crowd that includes members of human rights and civil liberties organisations, journalists, analysts, lawyers and assorted professionals — are utterly incapable of comprehending the geo-strategic context in which Musharraf maneuvered to defend Pakistan’s interest”. So they slandered him an ‘American puppet’, alleging he caved in to US pressure and withdrew support to the Afghan Taliban regime in the wake of 9/11 although in fact “he removed one excuse for the Bush Administration to ‘bomb Pakistan into stone age’, as a senior State Department official had threatened”.

In view of above, it is understandable why Benazir decided to join hands with Musharraf to resist US Late Neo-colonialism. American discomfort with Musharraf’s government was palpable by late 2003, after he dodged committing Pakistani troops to prop up the Anglo-American invasion of Iraq. When he offered to cooperate under the auspices of the Organisation of the Islamic Conference (OIC), naïve Pakistani media and analysts lunged for his jugular, condemning him once again for succumbing to US demands. But in fact he nimbly sidestepped American demands: he calculated that diverse ideological stances of the 57 Muslim member-counties would not allow the OIC to jointly initiate such controversial action and therefore Pakistan’s participation could not arise, which proved correct.

Benazir was fully aware of the fact that Bush Administration had been becoming increasingly hostile to Musharraf’s determination to prioritise Pakistan’s interests when steering the ship of the state through the choppy waters of the unfolding New Great Game, in which the West — led by the US — has been manoeuvring to contain growing Russian and Chinese influences in Central and West Asia. She decided to work with Musharraf, precisely for resisting this agenda of Pakistan-hostile forces. She became the prime target of these forces and was hence eliminated. Since then events show and prove that under the “chosen” leadership, Pakistan would side with enemies of US and Britain in the New Great Game. Benazir became victim of this Great Game in which her own party stalwarts betrayed her.  Hers has been a legacy of continuous struggle. We need to continue her legacy of resisting the ongoing Great Game of US Late Neo-colonialism —controlling of South Asian region through the bogey of Islamic militants and Hindu extremism with ultimate aim of containing China and getting hold of Pakistan’s nuclear arsenals.

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The writers, researchers, historians and authors of numerous books, are visiting professors at the Lahore University of Management Sciences (LUMS). Email: ikram@huzaimaikram.com

Ramifications of Mumbai carnage

Huzaima Bukhari & Dr. Ikramul haq

 

Three-day carnage in Mumbai—blatant acts of terrorism at various places from November 27-29, 2008—targeting common people and leading hotels jolted the entire India and world at large. This raised some important questions about the future of democracy, ‘war on terrorism’ (sic) and survival of modern day societies. Human societies secured freedom from political, economic and socio-religion shackles that have bound men for many centuries after a strenuous and protracted struggle during the last century. The US policy of aggression in the wake of 9/11 has created serious apprehensions of losing freedom by these societies by every passing day. Terrorism like fascism is a self-destructive ideology. It spreads like fire of jungle.  If humanity wants to fight terrorism, it will have to understand the factors behind this ghastly phenomenon. Use of brutal and ill-directed force will be self-defeating exercise in futility. Violence breeds violence as hatred breeds hatred. What happened in Mumbai exposes the shallowness of the approach of ‘big democracy’ becoming part of so-called ‘war on terrorism’—a tool in the hands of neo-colonialists to earn billions by selling arms, make sure the developing countries do not join hands against them and keep growing economies under their control. 

 

Fighting the agenda of neo-colonialist is the need of the hour. Uniting against neo-colonialism is the only way to counter terrorism. Use of force and denial of peoples’ legitimate rights on the contrary is bound to provoke more terrorist acts around the world. The violent incidents in India, Afghanistan, Kashmir, Spain, London, Ireland, Iraq, Palestine and elsewhere are self-evident. The doctrine of right of pre-emptive strikes, which India is thinking on the dictates of neo-colonial forces, is only a short-term solution. In the long-term, the governments of the world will have to sit down and chalk out a comprehensive strategy to ensure that miscreants, funded by neo-colonialists, are dealt with a strong hand without disturbing the peace and tranquility of individual societies and the world as a whole. The most important question faced by humanity is whether we are afraid of freedom or want to preserve it for our future generations. All the terrorist attacks constitute a strike against freedom but at the same time are reflective of callous attitude of those who claim to be self-appointed guardians of free world, human rights, faith and freedom. In a unipolar world, after the debacle of communist oligarchy, the responsibility of western democracies has increased manifold to assure the common people of the world that absolute power in their hands does not mean high-handedness towards others.

 

There are certain forces having vested interest to push the mankind back towards the dark ages when inalienable fundamental rights were denied by the authoritarian rulers. There are debates inside the USA and elsewhere pinpointing the erosion of civil liberties on a massive scale in the name of defending the Frontiers of Freedom. Terrorism surfaced as a reaction towards growing “fascism” on the part of certain States—handling of Palestinians and Kashmiris are cases in point—. Thus it has to be understood in proper perspective. The analysis of character structure of a man is at the core of understanding the rising phenomena of fascism, fanaticism, fundamentalism and terrorism [which includes state terrorism]. Lack of rationalism on the part of the powerful to be fair towards the powerless has converted our world into a place full of misery, destruction and unhappiness. The frustration of the powerless gets its vent in ghastly acts of terrorism and destruction. If we want to change this situation drastically, a balance has to be struck between the powerful and the powerless. If a large segment of the world lives in a state of powerlessness, the powerful will always remain the target of hatred and attack. The powerful want to transform the world as a machine where all others act as a cog while he has the master control. The cogs have their own way to develop malfunctioning to deprive the master from its absolute control.

 

This authoritarian thinking on the part of the powerful “democracy” and mechanism adopted e.g. imposing economic blockades was certainly the most irrational action to counter mass movement for independence in the Kashmir valley. The oppressed and powerless have their peculiar ways of reacting, which by no means can be expected to be according to the norms of internationally agreed principles. Their destructive tendencies (suicide bombings and terrorist attacks) are symptomatic of a sick world order. Our world is fast emerging as an authoritarian global State reminiscent of fascist systems of the last century practices in Germany and Italy where the dominant role of authority in social and political structure rests with the dictators. The revival of dictatorial State orders in the name of security needs is a step towards fascist systems.

 

The likely threat of military attack by India on Pakistan as post-Mumbai reaction using the pretext of State-patronage of extremists (sic) will create fear and uncertainty in the region and panic amongst masses. The main aim behind the bizarre scheme, prepared by neo-colonialists, is to push the armed forces of Pakistan to the wall using India as conduit, get the control of nuclear arsenals and use bogey of “Islamic terrorism” for the containment of China. George W. Bush Jr., now lame-duck President, before leaving the Oval, wants to ensure that the new man taking his place should have no option but to remain engaged in wars in various parts of the world. One hopes that Indian and Pakistani leadership will understand this great conspiracy. It is the time Chinese, Indian and Pakistani leaders unite against the forces of neo-colonialism and foil their ‘Great Game’ plan.

 

Dr. Sachithanandam Sathananthan in his ‘Great Game continues’ has remarkably summed up that “The ‘war on terror’ and ‘promoting democracy’ are the 21st century equivalents of the 19th century British gobbledygook. American Late Neo-colonialism purveys them as moral justification and uses as political cover for intervening and, where necessary, invading resource-rich and strategic countries to overthrow nationalist leaders, install puppet regimes and savage the countries’ wealth. And of course the US is by far the most powerful terrorist force”.   This is the reality of ‘war on terrorism’. The forces of obscurantism and imperialism appear to be enemies, but in fact they are ‘friends-in-arms’ and their hidden agenda is to snatch away from the world, its peace and tranquility. Thus Bush camp is no different from that of Bin Laden or Taliban or RSS-BJP-VHP- Bajrang Dal.

Today the humanity at large is facing the most difficult time at this critical juncture of history. The brinkmanship on the part of USA and its allies can lead the world to yet another horrible World War. The sane people in India and Pakistan should resist all the extremist forces that are involved in destabilizing the entire region at the command of their foreign masters. Both the governments should expose these elements and pray tributes to Karkare and other brave ATS men who had shown the courage to arrest Praggya Singh, Raj Kumar Purohit, the ugly faces behind terrorism and communal killings.

 

Let us hope that the forces of peace and sanity get united to stem the rising tide of terrorism, communalism and obscurantism, which is designed, funded and controlled by neo-colonialist forces pointed out by Dr. Sachithanandam Sathananthan, a Visiting Research Scholar at the Jawaharlal Nehru University School of International Studies. These forces are the worst enemy of humanity. They are bent upon to create fasad [Quranic term for chaos, disorder and turmoil] on this beautiful planet. The holy Quran clearly warns humanity about these so-called “reformers” who in the name of God and reformism create the worst kind of disorder [fasad] on the earth [Al-Quran 2-11]. The meaning of this ayat is:

 

“When they are asked not to spread fasad [disorder] in society, they retort audaciously:

 

“We do not spread fasad, rather we are the Musleheen [reformers]”.

 

Beware! They are the Mufsideen [Destructionists, those who spread disorder and chaos]”.

 

It is high time that masses all over the globe understand and reject the agenda of war-mongers and their hired defenders of faith (sic). They are the worst enemy of humanity. The hidden agenda of neo-colonialists can only be frustrated if people of the world unite against the Mufsideen, who in the name of religion, want to create disorder but their real aim is subjugate and control the world for economic exploitation.

 

The writers, tax advisers, are visiting professors at the Lahore University of Management Sciences (LUMS).

Reconceptualizing Jihad

Huzaima Bukhari & Dr. Ikramul Haq

 

 

Dr. Ayesha Jalal, eminent historian, in Partisans of Allah: Jihad in South Asia has brilliantly traced the root and dimensions of jihad as anticolonial ideology that helped the subjugated masses under British raj to wage a valiant struggle for independence. The need stressed by great Muslims thinkers, Shah Waliullah, Obaidullah Sindhi and Muhammad Iqbal, to wage continuous war (jihad) against imperialism as everybody’s human duty, notwithstanding religious affiliations, is valid for all times and nations. These great thinkers unequivocally emphasized and repeatedly underscored that jihad (literally means continuous struggle) has multi-faceted dimensions with the main underlying objective of establishing a human society free of every kind of exploitation and oppression, based on the principles of justice and equality, and ensuring peace and tranquility for all.  Such a society cannot be established by ignoring the ethical dimensions of jihad that requires an individual to strive (inner struggle) for achieving the status of an authentic being—a process turning a man into human.

 

Humanisation of world societies based on broader ethical connotations of jihad can guarantee international peace and prosperity. On the contrary, Western imperialism (capitalism at its roots) is the biggest hindrance in the way of this process. The recent debacle of financial institutions of USA and Europe, considered as pillars of capitalism, and rescue plans (sic) underway has once again exposed the emptiness of models based on exploitation, greed and self-interest. In the present-day scenario, jihad, as a tool to fight all kinds of oppressions, inequalities, injustices at individual and collective level, holds key to forging human unity an international level. Knowing the consequence of such a unity, the forces exploiting world resources at the cost of poor nations, are purposefully portraying jihad as hostile ideology (synonymous with terrorism). This projection of jihad in Western media is part of a great conspiracy. In this game plan, the despotic Muslim rulers and clergy are their friends-in-arm. Jihad as aggression is a misnomer, for which the blame is to be shared equally by the fanatic, self-acclaimed warriors of faith and ardently-biased-anti-Islam intellectuals (sic).

 

The self-proclaimed defenders of faith have never bothered to study and understand Quranic concept of jihad. Unfortunately, malpractices committed by abusing this concept for temporal gains by Muslim Kings and clergy were accepted as scared by many. Their opponents took full advantage of this ignorance and started calling jihad as ideology of aggression and hate. Various wars waged in the name of religions, the recent example is Bush’s claim of ‘divine guidance’ for aggression in Iraq, were nothing but efforts to secure hegemony and seek temporal gains. These objectives are alien to Quranic concept of jihad. The difference between jihad (all-pervasive struggle at all levels to establish a just human society as ordained by Allah) and qital (a war for self-defence against oppression) is so unambiguous in Quran that it needs no elaboration at all. There is nothing in Quran that allows killing of any human being in the name of Allah, as misunderstood by many Muslims and non-Muslims alike. In Quran, the sanctity of human life is stressed to the extent that killing of one human being is considered as murder of entire humanity and saving one individual life is tantamount to serving the humanity at large. In the presence of this injunction, how can any Muslim resort to taking life of another human being? How can suicidal bombing be justified? Even when war is declared by an oppressor, the right to self-defence cannot be tainted with any vendetta and is made conditional that no harm is caused to women, children or any non-combatant. Waging of jihad, using the term in its true sense, is not only against external aggression, but also to counter internal forces of exploitation, oppression and tyranny in any society. In the case of former, armed struggle is inevitable (for which deterrence and defence is ordained) but for the latter there is no sanction to use any coercive measures, not to talk of violence and arms, as there is no jabar (forceful submission) in din (Islam).

 

During the colonial era in the subcontinent, armed struggle waged by freedom fighters (without any religious divisions) earned them praise and kudos from the great thinkers of their times. These thinkers through their writings also waged jihad bi qalam (struggle through pen), considered as the great jihad (see Maulana Abul Kalam Azad’s treatise, jihad-al-akbar). This great literature of resistance is now common heritage of people of India, Bangladesh, Pakistan, Myanmar and Sri Lanka. In the post-independent period, this literature remained a source of resilience and self-esteem to resist neo-colonialism. Under the banner of Non-Aligned Movement, the legacy of resistance continued with the aim not to succumb to the onslaught of neocolonial imperialism. Unfortunately, in the post 9/11 era, the imperialist forces cleverly managed to counter genuine resistance movements against their occupation and hegemonic designs under the pretext of “war on terrorism”. This is, no doubt, the ugliest strategy of neo-colonialists, in which religious fanatics are their main soldiers, who are responsible for giving jihad (a purely humanistic and ethical concept) a contemptuous name.

 

The armed struggles against occupant forces in Palestine, Afghanistan, Iraq, Kashmir and elsewhere, are in their substance movements against subjugation. But these are successfully labelled as militancy or terrorism by the influential media that shape the international opinion at the behest of US and its blind allies.  Under these circumstances, one needs to reconceptualise jihad as “struggle against subjugation” and re-devise methods to counter it through peaceful means rather than arm conflicts. Entering into armed conflicts is fulfillment of the agenda of the neo-colonialists, who want to engage the nations in brutal and bloody wars for their own nefarious designs.

 

In Pakistani context, we are faced with multi-faceted subjugation. Our subjugation is largely, a self-inflicted phenomenon. The leadership—military and civilian alike—has surrendered completely to foreign masters. Though moral sinking of the leadership is becoming deeper and deeper every day, yet people of Pakistan have not yet surrendered and are showing resilience even in the extreme hardship times when basic necessities like wheat flour has been rendered a rare commodity for them. The economic subjugation, dictates of IMF and other donors, wrongdoings of the people at the helm of affairs, unprecedented luxuries enjoyed by the rulers at taxpayers’ expense—all cumulatively—have culminated in a situation where a nuclear-State has become totally toothless.

 

Political and economic subjugation is now complete with control over federal government by Pakistan People’s Party, led by President Asif Ali Zardari. His recent appeals to UK and USA not to violate territorial boundaries of Pakistan are nothing but utter submission before those who are the main cause of present-day crisis in our tribal areas and Swat. The forces of obscurantism, so-called Jihadis creating fitna (social disorder and sedition), are being used by these imperialist forces to make us subservient for ever, keeping us in dark ages. The need of the hour is to mobilize people against imperialists and their cronies—the militants who are exploiting religion for self-interest.   

 

In these circumstances, how can the concept of jihad be recoceptualised? Obviously, for resisting subjugation, we need to wage jihad against attacks of foreign forces in our tribal areas, rising wave of militancy, horrifying debt burden, worsening balance of payment position, rising inflationary expectations, undesirable increase in wasteful expenditure of over Rs.500 billion, which include heavy cost of perquisites of rulers, growing unemployment, social unrest, widening trade and fiscal deficits, rising cost of doing business, burden of taxes, increases in utility bills and economic stagnation—just to mention a few.

 

The economy is fast plummeting and worse is still to come if curative measures are not taken on war footing. People’s purchasing power is fast diminishing, banks have less liquidity, lending rates are soaring and activities at stock markets are nose-diving. The investors are shy and afraid, mainly due to perpetuation of political instability and economic uncertainty. Life for the common man on the streets is becoming a misery leading to social restlessness. Although we claim to be an agricultural economy yet a vast majority of the people do not have enough to eat. It is tragic that we even import agricultural products and have miserably failed to develop any worthwhile agro-based industry in the last 61 years. What a decline from the times when this region (i.e. United Punjab before partition) had the undisputed position of being the granary of the entire Subcontinent.

 

Look at the mess our successive governments, military and civilian alike, created on the debt front. The figure of foreign debt is a monstrous $48 billion after devaluation of our rupee in the last few months and that of domestic debt is over Rs.3.5 trillion now.  Both external and internal debts are increasing at a frightening rate. The way we are managing our resources (not exploiting them or wasting mercilessly those already available) is criminal and is leading us to self-annihilation. Fiscal deficit of Rs. 777.2 billion during fiscal year 2007-08 testifies to bankruptcy of our political leadership, who keeps on relying on incompetent and corrupt bureaucracy. The policy of appeasement towards tax evaders, money launderers and plunderers of national wealth, many of them beneficiaries of National Reconciliation Ordinance (sic), is showing its impact in all spheres: political culture of changing loyalties, as seen in the presidential election, is absolutely loathsome, nation is in high despair and all sectors of economy are showing horrible indicators. In this bleak scenario, our rulers have no definitive plans; begging all around, they are still living on ad-hocism.  

 

The most disturbing and painful reality is the unabated and shameless indulgence of rulers and bureaucrats in wasteful expenditures. Look at their life style (numerous iftar dinner parties were thrown by rulers from national exchequer in September alone) when the vast majority of the people is starving. We cannot come out of subjugation unless we first become an economically self-reliant nation, which is the most vital jihad of today. For this, our rulers will have to take the first step by learning to live at a modest level (following the example of Iranian President), establish just economic system, provide justice to all, and then mobilize the masses for common struggle to take a great economic leap forward as done by the Chinese in recent times.  

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The writers, researchers, historians, tax advisers and authors of many books, are visiting Professors at the Lahore University of Management Science

Rapid growth and social justice

Every year before the announcement of annual federal budget, plethora of tax proposals are received by the Federal Board of Revenue (FBR) from trade and professional bodies, tax bars and industry’s representatives. These are hardly given serious thought by the tax managers, who have only one concern: how to achieve revenue targets through wickedly drafted amendments and onerous tax regulations.

 

Taxation should serve as a catalyst for industrial expansion and economic growth. In Pakistan the ill-directed, illogical, regressive and unfair tax regulations for the last many years have caused a dampening effect on the industrial and business growth.. Had the successive governments concentrated on economic growth and industrial expansion, there would have been consequential substantial rise in taxes today. It is impossible to enhance revenues with stagnation in economy, and over-taxing such economy, as has been done in Pakistan, can destroy the revenue system as well. This is a vicious circle in which our policymakers are now trapped. They will have to find ways and means to come out of this tangle to make Pakistan a competitive place where investors find satisfactory conditions to live and invest. In a country where there is no security of life or property, notwithstanding the availability of host of tax benefits and other incentives, investors will never come forward.

 

It is a curious paradox of our situation that while money for worthwhile industrial and business growth and public benefits is scare, there is colossal unaccounted cash supply circulating in the economy in search of further undercover gains. What is more tragic is that this social evil inherent in tax system gets doubly compounded as it necessitates greater and greater tax burdens on those who are law-abiding. The most crucial problem faced by us in fiscal reform programme is that of devising astute and stringent measures to curb tax evasion so that we can distribute the burden of taxes fairly and justly between different persons in the same or similar walks of life. The honest taxpayers have to be safeguarded as day by day they are being disillusioned by the fact that tax evaders are not paying anything with the connivance of their friends and mentors in tax machinery. The unholy alliance between the tax evaders and corrupt tax officials has to be eliminated as a first and the foremost step if we want to initiate any meaningful change in tax system and achieve the goal of rapid economic growth.

 

Every now and then the State announces a tax immensity scheme that favours tax evaders, smugglers, corrupt, extortionists, drug barons and criminals. Such schemes are a spank for the honest taxpayers [proving them the most foolish for paying the taxes]. An extortionist in Karachi can decriminalize his ill gotten money through such a scheme but the poor businessman who paid it due to shameless failure or connivance of law enforcement apparatus cannot even claim it as an expense in his tax return! The situation needs to be corrected. The facilitation of whitening the untaxed money should be restricted ONLY for genuine businessmen to bring such capital back into disclosed/formal sector by paying some percentage as tax (as kafara) and not for the criminals, corrupt and unscrupulous elements in society.

 

There is a national consensus that existing tax policy needs to be reformulated to provide an equitable, pragmatic, investment-oriented and business-friendly tax system, integrating good tax administration with simplified tax laws that are easily to be understood and hassle-free from implementation perspectives. In the absence of a well-designed tax policy, the agenda of tax reform will remain lopsided. The new government should get itself free from the figure game of the FBR. Our tax potential is not less than Rs. two trillion provided the tax base is made wider and equitable, tax machinery is completely overhauled and exemptions and concessions available to the privileged sections of society are withdrawn. The following steps are inevitable if we want to make Pakistan a competitive place in today’s world:

 

1.      Establishment  of democratic institutions both in form and substance coupled with a truly independent justice system.

2.      Dispensation of justice without delay should be the top most priority of the State.

3.      Revamping of entire education system and ensuring revolutionary measure to take society out of jahalat [ignorance]. Our problem is not only illiteracy but also ignorance. Even the so-called literates are jahil of worst order, as they do not demonstrate by their actions any norms of a civilized society. The foremost stress should be on Iqra [knowledge] and technological advances.

4.      Elimination of bigotry, religious intolerance and violence by taking concrete measures to ensure social development of society based on higher values of life and humanity.

5.      Devising long-term and short-term strategies to break the shackles of debt-trap.

6.      Determination and political will to control wasteful, non-developmental and defence expenditure.

7.      Strict laws and their effective implementation to curb money laundering, plundering of national wealth, political write off of bank loans and leakages in revenue collections.

8.      Reform of technical, institutional and organizational dimensions of public finance.

9.      Improvement in public sector effectiveness.

10.  Reform and strengthening of management of public finances.

11.  Transparent public sector spending.

12.  Efficient public sector performance.

13.  Revitalization of tax machinery.

14.  Simplification of tax laws and procedures.

15.  Good governance and corrupt free government structures.

16.  Reduction in excessive marginal tax rates making them compatible with other tax jurisdictions of the world, especially in Asia.

17.  Substantial reduction in corporate rate of tax.

18.  Elimination of onerous tax and other regulations for corporate sector that are the main stumbling block for new direct foreign investments.

19.   Sufficient openness and accountability in the government to enable citizens to understand and participate fully in the process of national integration. This includes live telecast of the assembly proceedings.

20.  Complete transparency in government and private financial transactions.

The juxtaposition of economic policymaking and political reform [democratization] of society is necessary. The agenda for reform and survival should entail a comprehensive, well-integrated and unified plan that alone can assure its success. The reform in one sector ignoring the ills in the other, resorting to improving something at the cost of leaving aside the one interlinked, will not yield desired results. The case of tax reform divorced to elimination of black economy is the point in focus. The main cause of fiscal deficit is existence of an unprecedented size of underground economy and the share of incompetence and inefficient tax machinery is significant, but reform in tax administration alone without routing the causes of parallel economy is not going to improve GDP-tax ratio [which is below 10% for the last 10 years].

In the same manner mere constitutional changes giving more powers to Prime Minister will not improve the political culture. We cannot achieve the cherished goal of self-reliant Pakistan unless rule of law and democratic behaviour in practice is clearly demonstrated. In the presence of US-imposed and supported President, the goal of independent Pakistan free from the political clutches of Washington cannot be materialized. For a strong economy, resource mobilization through a growth-oriented tax policy is a prerequisite. Tax policy should induce rapid industrial growth, ensure equitable distribution of wealth and incomes and give the provinces due share in national resources and powers to levy taxes within their territorial jurisdictions.

One hopes that in the forthcoming budget, mindless and isolated changes will be avoided to further destroy our tax system unless tax policy imperatives discussed above are given due consideration. The change mania without proper direction can be counterproductive or even disastrous. This is what tax baboos of FBR have been doing for the last two decades.

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The writers, tax advisers, are visiting professors at Lahore University of management Sciences (LUMS). They can be reached through their website www.huzaimaikram.com

Stock Market Taxation

Huzaima Bukhari & Dr. Ikramul Haq

 

 

During the trading session on May 23, 2008, the Karachi Stock Exchange registered the highest single day loss surpassing the earlier figure of -635.80 (recorded on 05.11.2007) amid speculation that the index will fall even further. The Stock Exchange closed at -615 at 4.00pm. The downward trend is being attributed to increase in interest rates permitted by the State Bank of Pakistan and expected imposition of capital gain tax in the forthcoming Budget for the fiscal year 2008-2009. Each year, just before the announcement of the budget by the Finance Minister, a bearish trend is witnessed, but this year, despite there being a people’s elected political set-up, the situation is quite alarming, especially for small investors.

 

If the entire issue is revolving around the statement of Mr. Ishaq Dar reported on 13 May 2008 in Dawn newspaper under the title, “Several new taxes in budget, says Dar”, that there is a need to impose capital gain tax then for the awareness of the general public there already exists such a tax under section 37 of the Income Tax Ordinance, 2001 (hereinafter “the Ordinance”). Besides, section 233A of the Ordinance requires registered stock exchanges to collect advance tax from its members at the rate of 0.01% on sale/purchase of shares and trading of shares; and 10% in respect of financing of carryover trades in share business. Additionally, another tax known as Capital Value Tax which came into existence vide Finance Act 1989 is also in the field and is chargeable as per section 7 of the Act, on the capital value of purchase of modaraba certificates or a registered instrument of redeemable capital as defined in the Companies Ordinance, 1984, or shares of a public company listed on a registered stock exchange in Pakistan. 

 

Section 37 of the Ordinance explicitly speaks about a tax on gain arising on the disposal of capital asset that includes stocks and shares and such movable properties in personal use as a precious work of art, jewellery, rare manuscript, folio or book; a postage stamp or first day cover; a coin or a medallion; or an antique. No doubt, there are certain concessions with respect to assets retained for a period of more than one year and there are some exemptions on the gain of certain stocks and shares but this certainly does not imply that there is no capital gain tax in Pakistan. In fact, collections as reported up to June 2006 and June 2007 are as follows:

 

Head of Payment	June 2006	June 2007
u/s 233A	2,595.8 million	5,920.7 million
CVT on purchase of shares	1,440.3 million	2,238.5 million

 

The figures clearly speak of the amount of tax that is related to trading in stocks and shares. With these taxes already in existence, it is quite surprising that ex-Finance Minister was talking about levying capital gain tax! This clearly speaks of how ill-informed the members of our political parties are.

 

It is very strange that Chairman FBR has not explained the correct position and the prevalent impression that exemption is given to investors in the capital market has not been contradicted by the official quarters till today. On the one hand, stock market investors have contributed substantially towards revenue as evident from the above figures while on the other, they are being accused of enjoying some imaginary tax benefits.

 

The role of capital markets in development of economy like Pakistan needs no emphasis. This avenue provides great opportunities to small investors to earn dividends from scrips of good companies. The companies also strive hard to enhance the value of their scrips. This creates an atmosphere of confidence and a favourable investment environment. The growth and promotion of capital markets depend on political stability and any negative news badly affects its working. Speculators immediately take advantage of such panic. During the last many days due to all kinds of negative and alarming news in the media, the signals reaching the stock market are creating devastation. The main reason behind the crash is political uncertainty and expected clash between the Parliament and the President.

 

In fact Musharraf is singularly responsible for this chaos. He is repeatedly claiming to stick to the post for another five years despite the clear verdict of 18 February 2008. Even Zardari has declared him the main hurdle between the people and democracy. Its about time to save economy, stock markets and democracy in Pakistan by stabilizing the system. Our stock market has tremendous potential to grow provided that political forces give the nation assurance of cohesion, unity, peace and security.  

Benefitting the rich

Huzaima Bukhari & Dr. Ikramul Haq

 

 

“Loss leaves us empty – but learn not to close your heart and mind in grief. Allow life to replenish you. When sorrow comes it seems impossible – but new joys wait to fill the void.”

Pam Brown

 

 

Wealth Tax Act, 1963 was abolished through the Finance Act 2003 on specific demand of ex-Prime Minister-cum Finance Minister Shaukat Aziz before taking charge as Finance Minister of Pakistan. He being an intelligent man was fully aware of the fact that by virtue of his status as resident in Pakistan, his world assets would attract provisions of the Wealth Tax Act culminating into substantial tax liability on annual basis. After 9/11, since the country was in a “critical state” (as portrayed by Musharraf) where the services of one individual were totally indispensable, the repeal was shown to be justified despite tremendous revenue losses, and the resultant misery inflicted on the majority of the people of Pakistan.

 

Today, our financial wizards are talking about financial impediments inter alia fiscal deficit of 9 % of GDP and extra borrowing of over Rs. 5 billion, mercilessly wasted on the endless non-developmental expenditure, lavish perquisites of the ruling elite and to make good this loss, the only option in their view is raising the prices of oil (knowing very well that such raise triggers rise in cost of living pushing the poor strata further down the poverty line). Instead of resorting to recovering all losses from the poor and hapless of this country why is not any attempt being made to recover from those who are actually responsible, some being beneficiaries of loan write-offs? Is it because in doing so, they themselves will have to bear the burden as well?

 

In 2002 before its abolition, wealth tax was the only progressive tax left in Pakistan with tremendous potential for growth, if exemption given to the rich absentee landlords were scrapped. This became obvious immediately after its repeal when billions of rupees (estimated at US$ 60 billion) started pouring in from all over the world remitted by all and sundry without any fear of being investigated, courtesy amnesty given in section 111(4) of the Income Tax Ordinance, 2001.  Influx of enormous wealth was directed to the stock exchanges where the dominant stake-holders continued to gobble the small investors through unholy maneuverings; or was used to enhance real estate dealings. With no wealth tax to pay, both these avenues helped to increase individual wealth but dreadfully stripped the entire nation of its right to live in peace and economic prosperity.

 

This also soared up investments in non-productive sectors, with people refusing to take risks on industrial projects that could have proved more beneficial to the masses. The high tendency to make easy money through stock exchanges and land dealings has resulted in retardation of economic growth for the poor, whose life is totally dependent upon earning daily wages. The last five years have negatively flung Pakistan’s economic condition not just ten years back, but many decades. With marked rise in population, with no attempt to increase resources or even improve the existing ones, with the divide between the rich and poor touching dangerous levels, with continuous political turmoil and to top it all, reliance on an extremely regressive tax system, one can confidently say that our country is now on the threshold of economic collapse unless serious measures are not adopted to veer it off this perilous track.     

 

What is preventing our elected coalition government’s highly qualified finance ministry from recuperating billions of worth of taxes by restoring the Wealth Tax Act? Instead of increasing oil prices (where per litre tax component is over Rs. 25) why is there no attempt being made to impose heavy taxes on those who enjoying colossal wealth and enormous income do have the ability to pay?

 

Looking at the Press reports, it is disturbing to see that some of our retired generals are adjudged as the richest in the world by TIME magazine. Besides, our elected representatives in the past have proved that they are far better at asset and wealth management than fund managers and investment bankers of Pakistan. These people are extremely competent at creating personal wealth but prove utterly hopeless in increasing national wealth for now nearly 180 million people of this country. The rich Prime Minister-cum-Finance Minister did not establish any charitable institute by giving donation out of his mega wealth, nor are the present ones ready to do so. On the contrary, the National Police Foundation “allotted” two plots to him in E/11, Islamabad at throwaway prices of Rs. 1.1 million and Rs.0.24 million which, within a year’s time attained market price of Rs. 12.5 million and Rs. 1.5 million and in 2008 rising to thirty times the original price paid! Supreme leader of King’s party, PML(Q), Chaudhry Shujat Hussain, another exceptional wealth manager who pole-vaulted from net wealth of Rs. 74 million to Rs. 146 million in just 12 months (see his latest declaration before the Election Commission). These two examples are merely illustrative of the over-all pattern of phenomenal increase in the wealth of ruling elite: powerful civil-military complex, greedy politicians and unscrupulous businesspersons.

 

Over the last many years, tax policies have been formulated serving the interest of billionaires (including the ruling elite, wealthy generals and high-raking civil bureaucrats, industrialists and rich property owners) and that too at the expense of the poor.

 

• In the last two years alone, revenue loss on account of income from property is estimated at Rs. 80 billion as per survey of the PT-1 forms of the Excise and Taxation Department of the Government of Punjab.
• Increased dependence on presumptive taxation has deprived the exchequer of Rs.150 billions of rupees in the pharmaceutical sector alone.
• From 2003 to date, according to a conservative estimate, we have lost Rs. 50 to 70 billions worth of wealth tax that could have been imposed on unaccounted/untaxed wealth amassed by those already enjoying the privileges of a luxurious life.

 

Claim of the authorities that wealth tax was useless as it did not contribute much to the exchequer (see government-fed report in Business Recorder dated 3^rd May 2008) speaks of the rigid target-oriented mindset that taxes are only meant to raise revenue. They forget that wealth tax may be an outdated levy in civilized countries of the world (after achieving the supreme goal of creating an egalitarian society) but was specifically introduced in the Sub-continent because of the tendency of third world nations to invest in unproductive areas as gold, real estate, bank balances or even cash tucked away in hidden vaults. It was meant to discourage hoarding of precious wealth and directing it towards constructive sectors and economic growth, for which innumerable incentives were provided in the Act. What to talk of ordinary people, many of our own political elite have been found to be owners of unfathomable wealth, safe in Swiss banks and foreign countries. If they claim to be true representatives of the people, they owe it to this country to bring back all this wealth and if not surrender to the nation, at least be prepared to pay tax, due on it.

 

Besides, it is a fallacy which we have proved many a times that tax authorities can investigate into unexplained investment, expenses etc. Section 111(4) of the Income Tax Ordinance has rendered them helpless as it allows the taxpayers to whiten illegally earned income through an extremely simple and easily available procedure by going to a money exchanger and getting fictitious foreign remittance in his account after paying a nominal premium of 1 to 2 percent of the entire proceeds!. It is irrelevant to delve into such details at this juncture but suffice to say that section 111 is no remedy vis-à-vis taxing enormous wealth generated from untaxed and/or ill-gotten income/wealth.

 

The nation desperately owes explanation from all those in power:

 

• Why the privileged are continuously being favoured and poised against their own poorer brethren?
• Why is it that ordinary taxpayers having income of more than Rs. 500,000 are required to submit annual wealth statements whereas rich and mighty politicians, who have exempt agricultural incomes have not yet made public their declarations of assts?
• Why do they hesitate from paying wealth tax but charge Rs.25 per litre tax on petroleum products knowing very well that it is massively consumed?
• Why not restore earlier subsidy on petroleum products and make good the loss by levy of wealth tax?
• Why not curtail unnecessary and extravagant expenses on the establishment starting from the President house, to fill up the void?
• Why not reduce the number of ministers/advisers instead of following policy of appeasement and doling out public offices as if this nation was not burdened enough by worthless and incompetent bureaucrats?

 

Despite the bleak scenario, there is always a ray of hope that wisdom will prevail and someone whose heart is fraught with patriotism in the true sense of this word will rid this nation of the neo-colonial subjugation to those who are constantly dictating their terms to a leadership that is oblivious to the people’s woes and misery.

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The writers (ikram@huzaimaikram.com), tax advisers, legal historians and authors, are visiting Professors of Lahore University of Management Sciences (LUMS).

 

 

Federation and distribution of taxes

Huzaima Bukhari & Dr. Ikramul Haq

 

The governments in Pakistan, military and civilian alike, have failed to end injustice in all spheres of life and areas, but more tragically in distribution of taxes between the federation and the federating units. Assignment of taxes is a vital constitutional and political issue that has been blatantly ignored, resulting in there being no judicious distribution of taxes between the centre and the provinces. The imbalances and unjust monopoly of taxes by Islamabad is a perpetual source of disharmony between the Centre and the provinces. Mr. Yousaf Raza Gilani, unanimously-elected Prime Minister, in his maiden speech after winning the “historic” vote of confidence, made a pledge that Concurrent List in the Constitution will be abolished within one year. One wonders why it could not be dispensed with immediately when there has been consensus in both the houses that it denies fair and equitable distribution of taxing powers between the federation and the federating units.

 

It is an undeniable fact that Islamabad has always usurped the right of the provinces by levying sales tax and other duties at federal level on goods and services within their (provincial) territorial jurisdiction. In all major federations, e.g. USA, Canada and India, the federating units have the exclusive right to levy indirect taxes on goods and services generated within their geographical boundaries. In Pakistan, the federal government has vehemently denied this right to all the four provinces. Adding insult to injury the federal government is collecting huge amount of taxes through provincial government departments treating them as withholding tax agents without paying any service charges as envisaged in Article 149 of the Constitution. On the contrary, it charges 2% fee to provinces while collecting sales tax on services on their behalf! This dichotomy has never been contested by any provincial government.

 

Federal highhandedness in tax matters (by using both federal and concurrent lists) has destroyed the financial and economic rights of provinces. The provinces should have the exclusive right to levy taxes on goods and services within their respective physical boundaries, but the Federal Government blatantly encroaches upon their undisputed right by levying tax on goods and services under the garb of presumptive taxes in Income Tax. Such taxes cannot be termed as taxes on income (which the federal government is empowered to levy under item 47 of the Federal List) but tax on goods and services. It is a great tragedy that this argument was not presented in the Supreme Court when the constitutionality of such provisions was challenged in 1991 and the debate merely revolved around academic discussions over the concept of income. If the Federal Government can treat tax on goods and services as tax on income, as held by the apex court per incuriam (a mistaken judgement) in Elahi Cotton case PLD 1997 SC 582, then what will be the sanctity of division of fiscal powers provided in the Constitution of Pakistan between the Federation and the provinces.

 

Our tragedy is that on the one hand we have too many taxes in the country (federal, provincial and local, although the last two only generate negligible national revenue) while on the other, the benefits of revenue collection are not reaching the poor masses of the less privileged provinces. The few rich are the real beneficiaries of every luxury that is available. Fiscal gap is increasing every year despite five-year Tax Administration Reform Programme (TARP) initiated in 2002 with borrowed funds of US$ 100 million.

 

The prime reason for failure to stall ever-increasing fiscal deficit is that provinces have not been empowered to generate their own resources. They have been denied fiscal autonomy of levying taxes on goods and services. Since 1947 our rulers at the Centre have been treating the provinces in the same way as the British imperialists.

 

In fiscal year 2006-2007, total federal tax revenue by Federal Board of Revenue (FBR) was Rs. 843 billion. The Federal government showed total receipts (both tax and non-tax) at Rs. 1087 billion, out of which the provinces received as little as Rs. 437 billion. Interestingly, the federal expenditure under two heads alone i.e. defence and debt-serving was Rs. 515 billion. The over-all deficit suffered by the Federal government was Rs. 373 billion.

  

The Centre might have given away some of the federal taxes to the provinces, most likely sales tax as is the case in India, if the federal taxes collection had increased substantially, but tragically, despite all kinds of oppression, highhandedness, negative tactics, withholding of refunds and what not the FBR took four years —1998-99 to 2001-02— to cross from Rs. 307 billion to Rs. 401 billion — an average increase of Rs. 24 billion a year. From 2002-03 to 2004-05 FBR managed to increase revenue from 460 billion to 590 billion— a poor performance as average annual increase did not even cover inflationary impact.  In 2005-06, the collection was Rs. 710 billion, and the last year it was Rs. 843 billion. This year’s target of Rs 1025 billion already stands reduced to Rs. 950 billion, whereas our real potential is not less than Rs. 1600 to 1800 billon. FBR’s track record shows little possibility of achieving Rs. 2200 to 2700 billion mark in next five years to give a fiscal space both to the Centre and the provinces to come out of the present mess extending some relief to the poor and trade and industry for growth. Thus in the near future, if our federation-provinces taxing impediments continue, the country will remain in debt enslavement and more and more people will be pushed below the poverty line. If we want to come out of this crisis, there is an urgent need in Pakistan to reconsider equitable distribution of fiscal and taxing powers between federation and the provinces. Provincial autonomy is meaningless without fiscal rights and redistribution of income and wealth amongst all the federating units. It is hoped that some concrete measures will be announced in the forthcoming first budget of the new government, for achievement of these goals.

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The writers are tax advider ikram@huzaimaikram.com